The Rich, Unemployment, And Cash Flow

The rich have special problems, and as far as the job force and employment goes as of late, it is sketchy to say the least. Unemployment statistics are on the rise, as well as defaults in home ownership and mortgage payment. One has to wonder what caused all of this mayhem.

It has often been noted as we look back through history that the cause of all of this unemployment, deficit, and job loss is the result of some major occurrence. Many believe that Richard M Nixon is to blame, and after two decades of study, I am not without prejudice to this fact. Following is a number of reasons educated people such as myself think this way. It is a major factoring of why the rich get richer, and the poor get poorer. It also relates as of why we have let ourselves fail to understand the underlying concepts of our own economic growth.

In 1971 without the approval of congress, Richard Nixon changed our money into what is now called currency, by taking the U.S. dollar off the gold standard. This affected not only the United States, but also the rest of the world. This change then allowed the United States to print as much money as they wanted to, or as much as they seen fit. This was the start of the creation of a massive debt load that would plague not only the U.S., but basically the rest of the world as well.

Everyone is wondering if those in power, especially our government leaders, can find a solution to our current economic crisis. As more jobs are lost and businesses fail, people are hoping the bailouts and incentives will fix our economic woes. Decades ago bailouts were in the millions of dollars amount. Today they are in the Billions and even Trillions. As more businesses fail, people also become tighter with their pocketbooks and spending, affecting the economy and creating more job loss and even deflation. Millions have also lost their shirts in the stock markets and mutual fund programs.

Ironically it is the people in power, (the rich and the government) which have created this problem for us in the first place. The rich still have their millions, while the poor tend to suffer and live well below their means. This is because the rich have an acquired asset called cash flow. Without cash flow, you have little to fall back on including your investments and property, which is actually not an asset, especially in these hard times. When you lose your job you still have to pay a mortgage or spend money on up-keep and maintenance. A home even though needed and beneficial to live in, is definitely not an asset.

The previous paragraph probably has you wondering if I know what I am talking about. That is because most people are brought up to understand the importance of getting a job, working hard, buying a home, and investing in mutual funds for their retirement. This may also include living well below your means in order to establish a financial future that will support your retirement, or golden years. Sadly enough, people are finding their retirement funds dwindling amongst a bleak economic forecast. These are the people who invested money in the stock market, mutual funds, and businesses before the meltdown.

The rich however live by a different set of rules. They invest in themselves, their own businesses, and take control of their financial destinies personally. They do not worry about unemployment on a personal level as most people do. It does affect them to a certain degree in many different aspects, but they are always prepared for bad times, and adjust their game plan accordingly. They are also rich because they are the main players in stocks and commodities, and play the markets both ways, as opposed to the over 90% of investors who always play to the upside!

Simply stated, the rich know the real rules of making money, why they are have it, and how to protect their businesses accordingly. Most rich people have a station or channel in life that provides a residual or ongoing income, even when they are not working. Even if they decide to quit work and retire! Rich people create for themselves ongoing cash flow systems that will never run out of steam. And if one ever does, they are always backed up by another. Like the old prophecy states – “never put all your eggs in one basket.”

The Rich And Cash Flow