Wednesday, February 9, 2011

The Most Powerful Force On Earth!

What The Government Doesn't Want You To Know about the Most Powerful Force on Earth... Albert Einstein... And how to use it!
As the old fable reminds us, it's not always the hare who wins the race. For as savvy dividend investors surely know, it is the tortoise who prospers in the long run.

That's because the tortoise knows that income investing allows you to win two ways: first, with a cash payout; and second, through price appreciation. And the best part is you don't exactly need to be star trader or marker timer to reach your financial goals using this strategy...

You just need to be patient enough to push through the volatility onward to the higher ground. Of course, seasoned dividend investors themselves have known this for years. That's why the truly rich don't spend their days glued to the financial news like a bunch of lemmings. They realize that while most investors think trading is where the action is, investing in high-yielding income stocks is just as rewarding — provided you are smart enough to stick to a steady and persistent pace. In this style of investing, less truly is more.

The Rule of 72
Because the biggest component behind this investment strategy is time — time, the greatest equalizer of them all. The secret to this approach is in the compounding effect that Albert Einstein once called “the most powerful force on earth.”

In fact this force is so powerful that I think the government is deliberately keeping it from you. I say that because if the masses actually knew the income this compounding could deliver, they would immediately demand an end to Social Security as we know it.

Why is that? you ask.

Well; That's where the Rule of 72 comes in.

The Rule of 72 says that in order to find the number of years it takes for you to double your investment at a given rate, just divide the yield into 72. For example: If your are earning a 9% dividend on your investment, it only takes eight years to double your money, and roughly 13 years to triple it.

This compounding effect arises when your dividend yield is added to the principal, so that from that moment on, the interest begins to earn interest on itself. Over time, that process can add up to a small fortune — even with very modest investments.

The Retirement BlueprintBy using this simple but powerful strategy, you can build a $270,000 nest egg in just 35 years by contributing as little as $100/month. That's basically the cost of a cable bill, and it would yield a 525% gain — a market-beating average of 15% per year. And it's easier to come by than you think...

Let’s say you had saved $1,200 and started with an investment in one of my favorite dividend payers, Abbott Laboratories (NYSE: ABT). That initial investment would buy you 26 shares of ABT at today’s prices, each one earning a dividend yield of 3.8%. Over time, that specific example would earn you a $270,000 payday as long as you simply reinvest your dividends, add a mere $100 a month to your account, and the underlying stock appreciates just 5% per year... Not bad.

Here's another example as it relates to your Social Security "account." (This is the part the government is keeping from you)...

Let’s say you invested $10,000 at the age of 30, initially buying just 217 shares of Abbott Labs. If all you did after that was to continue to contribute the same $551 a month you would pay in maximum FICA taxes, a $1,554,634 payday would be yours, according to the exact same formula.

But it gets even better. Because by the time you reach retirement age (65), that same account would be kicking off $54,066 a year in streaming income — all without dipping into your $1.5 million cash cushion!

Meanwhile, if you started the same exact program at age 20, your account would yield a $3,712,910 payday at age 65 to go along with $129,447 in yearly income.

By comparison, starting at age 20 and using roughly the same dollar amounts, your estimated Social Security check would be a measly $51,000 a year for married couples.
That's it — no cash cushion, no nest egg, and nothing to leave to your children.

Now do you see why Uncle Sam doesn't want you to know the truth about Social Security? Because if enough people were aware of the power of compounding, they would immediately demand better — especially those who are just entering the workforce. And that's not even factoring in the notion that Social Security will probably go bust at some point in the near future... Maybe in 2012.

Bust? Bust? How so? Well instead of investing your FICA Tax $Dollars and using the most powerful force on earth to secure your future, Uncle Sam has been borrowing big time against the Social Security fund and simply issueing I.O.U's to the fund. They have paid no interest on the money borrowed and thus the fund is going belly up instead of doubling up in value to the benefit of the general public. Now in order to head off this catastrophe, they have put their thinking heads together and come up with the idea that the retirement age should be extended to age 70... why not make it 90 then they would not have to pay out any money at all... but of course they would keep on collecting those FICA taxes as an additional stream of uncontrolled spending revenue. That's it — no cash cushion, no nest egg, and nothing to leave to your children. It all goes to the Government... even if you die before retirement age. Not a penny to your children. Get the Point? Neither you or you family get the cash. Got it? Good! Government sponsored grand larceny...theft!

In the Beginning...
Thanks to President Rooseveldt for introducing such a wonderful fraudulent Social Security Scheme. The public are being royally ripped off. Franklin D Roosevelt a Democrat, was elected the 32nd President in November 1932, to the first of four terms. There were 13,000,000 unemployed, and almost every bank was closed. In his first "hundred days," he proposed, and Congress enacted, a sweeping program of reforms to stimulate the recovery of business and agriculture, and bring relief to the unemployed and help to those in danger of losing farms and homes. Have we seen similar programs of reform and investment stimulation recently? None of which either he or President Obama were authorized to do by the constitution. In fact amendment 10 thereto, expressly forbids such interference by the Federal Government.

By 1935, just as today, the Nation had achieved some measure of recovery, but businessmen and bankers were turning more and more against Roosevelt's New Deal program. They feared his experiments, and were appalled because he had taken the Nation off the gold standard and allowed deficit spending in the budget, and they disliked his many concessions to labor. Just as today our current Democratic President is allowing the budget to accumulate not just a small deficit but a tremendous $Trillion deficit. Roosevelt responded with a new program of reform: He introduced the fraudulent Ponzi, Madoff type, Social Security scheme, with heavier taxes on the wealthy, new controls over banks and public utilities, and an enormous work relief program for the unemployed. Similarily, President Obama has introduced OBAMAcare. A Federal Health care plan which again he also is forbidden to do, because of amendment 10. Likewise they both ignored: “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. All men therefore should be taxed at the same rate if any income tax is to be applied at all and any exemptions should be available to all without exception.

In 1936 he was re-elected by a top-heavy margin. Feeling he was armed with a popular mandate, he sought legislation to enlarge the Supreme Court, which had been invalidating key elements of his New Deal measures. Roosevelt lost the Supreme Court battle, but a revolution in constitutional law took place. Thereafter the Government could easily regulate the economy. The $Greenback was no longer tied to a Gold Standard, so he could just print all the money he needed to float the economy. He adopted the Adolph Hitler / Keynesian Economic theory. However our current President who also uses the Keynesian/Hitler economic theory is running into massive credit opposition. Foreign investors, notably the Chinese no longer want to buy US Government Bonds only to be repaid with massively devalued $Greenbacks. So where is the money to come from if China and other nations refuse to buy our Government Bonds? Can we just keep on printing $Greenbacks until our money is not even worth a Zimbabwean $Dollar? Must we too push a wheelbarrow to the local shops full of worthless $US’s to buy a loaf of bread? .

Keynesian Economics and Nazi Theory
or the Wisdom of our Founding Fathers
Which Shall it Be?


Keynesian economics is the root of economic problems for most countries around the world today. So it's important to understand both what Keynesian economics stands for and what the opposing brand of economic thinking called Classical economics maintains.

In a nutshell...

Classical Economics:


Thrift, hard work, and productivity are virtues.
The classical gold standard restrains the state from inflating and provides a stable monetary environment in which the economy can flourish.
Governments should strive for balanced budgets and fiscal responsibility.
The state should adopt a general policy of laissez-faire of non-interventionism in economic affairs: low taxes, free trade, and minimal bureaucracy.
Production is more important than consumption.
Say’s Law: Supply is more important than demand since supply of one good creates the demand for another.

Keynesian Economics:

An increase in savings can contract income and reduce economic growth.
Consumption is more important than production, thus turning Say’s Law upside down.
There is no need for a gold standard; fiat currency is preferable. If we need more, we'll print it.
Demand is more important than supply.
Teaches that governments and politicians can be trusted.
Therefor the Elected Elite need not be Audited.

It's no wonder politicians love Keynesian economics over Classical economics. To control the economy, most governments around the world have been using Keynesian economics for the past 75 years. It is the only economic theory that is taught in our schools and universities. "They" want us to believe they are wise and intelligent souls who know what is best for us, after all they are the Very Elite of Society. Nothing could be further from the truth.

Read this quote from Adolf Hitler, who openly embraced Keynesian ideas:

Gold is not necessary. I have no interest in gold. We will build a solid state, without an ounce of gold behind it. Anyone who sells above the set prices, let him be marched off to a concentration camp. That's the bastion of money.

The Nazis' economic success when Hitler first came into power was a result of Hitler cooking the books and printing Deutsche Marks ad infinitum. Today we see rapid expansion of the government’s power over us, and much of this behavior can be contributed to Keynes’ own admission that his (and Hitler’s) economic strategy would work best in a totalitarian state. Let us hope we retain our Freedom loving People's Republic.

It's absolutely frightening what governments are doing to the people in the name of power and control, based on the practice of Keynesian economics. The vast percentage of the people in the United States and worldwide are clueless about the real value of money, and how its value or lack thereof effects our living conditions. They actually support this insanity that's leading us away from true liberty, from Freedom and Prosperity! It is often claimed that inflation is a benign, even positive, force. People assume that prices, wages, and assets will all rise together... In the real world, inflationary episodes don't play out that way. Wages don't keep up, and bubbles form in unexpected (and unwanted) places. Mortgage Finance Bubbles, Banking Bubbles and Ponzi/Madoff fraudulent investment schemes. In America, compensation is clearly stagnant. Nearly all the good manufacturing jobs have been exported/outsourced to foreign lands. The States and even the Federal government are now TaxRupt. Old Chinese proverb say; "You cannot draw blood from a stone!" The outlook for future pay raises in America is very bleak...not good. Best to follow the jobs to China and apply for Chinese Citzenship or the long arm of Uncle Sam will come collecting taxes in Bejing.


Keynes believed in progressively expanding credit (i.e. fraudulently creating money out of thin air) to promote full investment. According to his school of thought, the universal economic problem of scarcity would finally be resolved as interest rates go to zero and mankind enters a “Garden of Eden”: Which is exactly where we have all been driven now, with the printing presses churning out $Billions of stimulus money. Each $1 Greenback is now worth only 05.55 cents of the original Silver Dollar. Yes, it costs just over $18 Greenbacks to purchase ONE Silver Dollar, i.e. one ounce of Silver. Government created inflation is a wicked and hidden form of mass taxation.

When any US Government Fraudulently declares that there has been no inflation for the second year running, and clearly knows that inflation has been approximately 10% for several years  running, and that therefore there will be no increase in Social security benefits, such a government needs to be driven out of office just as has recently happened in Tunisia and Egypt. Hopefully, as in Egypt, this can be achieved peacefully. If not, then so be it.  To give money away to foreign governments which hate and detest us, Iran for example, to illegal aliens who have no right to be in our country, and to the United Nations weird climate control dept., without congressional authorization to fund their stupidity.  All this while thieving monies out of our Social Security Trust fund against worthless I.O.U.'s and against zero interest payments into the fund, it is time to kick the bastards out.
Will You Choose Freedom?

3 comments:

  1. The best thing our new President Trump can do is Return to Gold and Silver for our currency. Abolish the unconstitutional Federal Reserve which has got us into this financial mess. Nothing beats honesty in all our dealings with our fellow man, be he enemy or friend.

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    Replies
    1. Yes, that would be the best thing, but we know that won't happen. Trump is not an honest man and he knows very little, to nothing, about the Constitution. Our Founders are surely turning over in their graves.

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    2. For our country's sake, I do hope you are wrong.

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