It is as ridiculous for a nation to say to its citizens, "You must consume less because we are short of money," as it would be for an airline to say, "Our planes are flying, but we cannot take you because we are short of tickets." -- Sheldon Emry, Billions for The Bankers, Debts for the People –
In one of the 2012 editions of Occupy Money, Professor Margrit Kennedy writes that a stunning 35% to 40% of everything we buy goes to interest. This interest goes to bankers, financiers, and bondholders, who take a 35% to 40% cut of our GDP. That helps explain how wealth is systematically transferred from Main Street to Wall Street. The rich get progressively richer at the expense of the poor, not just because of "Wall Street greed" but because of the inexorable mathematics of our private banking system.
This hidden tribute to the banks will come as a surprise to most people, who think that if they pay their credit card bills on time and don't take out loans, they aren't paying interest. This, says Dr. Kennedy, is not true. Tradesmen, suppliers, wholesalers and retailers all along the chain of production rely on credit to pay their bills. They must pay for labor and materials before they have a product to sell and before the end buyer pays for the product 90 days later. Each supplier in the chain adds interest to its production costs, which are passed on to the ultimate consumer. Dr. Kennedy cites interest charges ranging from 12% for garbage collection, to 38% for drinking water to, 77% for rent in public housing in her native Germany. Source: http://www.globalresearch.ca/its-the-interest-stupid-why-bankers-rule-the-world/5311030
Money is a human creation that has evolved over centuries. Much of the present misery in the world derives from a general failure to understand the nature of money, banking, and credit. Compound interest causes debt to grow exponentially. That debt will grow at an accelerating rate over time. If one of your ancestors had borrowed $100 one hundred years ago at 10% interest, his estate would owe $1,378,065 today. Therefore the first law of money is multiplication.
The first law of money is described in detailed in the parable of the talent in scripture (see Matthew 25:14-30). The first law can also be seen in nature where one seed is able to grow a tree which in turn bares many fruits which also has seeds that is able to repeat or multiply the process many times. So it is not wrong to like nice things such as BMW for example. It is the way one goes about getting the BMW that can be the issue. As oppose to taking a loan to buy a BMW, I would first make an investment and leave the returns or profits from the investment pay for the BMW. The beauty of this approach is that once you spend the profits from the investment you will still have the money that you had initially used to make the investment so you can start the process again to buy other nice things. The only drawback to this approach is time.
In order to multiply seed or money you need to have it in the first place. This is where the second law of money comes in. The second law of money is retention. You cannot multiply seed or money if you cannot save some to multiply in the first place. So the more you can save the more one is able to multiply seed. The key to retention is not necessarily how much money you make but how much you keep (retain).
The third law of money is diligence. In order to multiply seed using the surplus/savings you have stored up, you would need to invest it wisely. One of the first rules I got in my investment class during my studies was that you should never put all your eggs in one basket. So diversification is the big word to describe just that. But I think scripture says it even better. Here is what Ecclesiastes 11:1-6 (New Living Translation) has to say: "The Uncertainties of Life – 11 Send your grain across the seas, and in time, profits will flow back to you. 2 But divide your investments among many places, for you do not know what risks might lie ahead. 3 When clouds are heavy, the rains come down. Whether a tree falls north or south, it stays where it falls. 4 Farmers who wait for perfect weather never plant. If they watch every cloud, they never harvest. 5 Just as you cannot understand the path of the wind or the mystery of a tiny baby growing in its mother's womb, so you cannot understand the activity of God, who does all things. 6 Plant your seed in the morning and keep busy all afternoon, for you don't know if profit will come from one activity or another—or maybe both."
Now why are these financial laws so important for one to abide by even more so today? Stay tuned for part two to find out.
Emilio Kalmera
