Real Wealth Society

Thursday, May 15, 2008

The Rich: How They Operate and Glossary By James Jaeger

Glossary of Cultural & Eco/Political Terms
by James Jaeger

Read a book called EMPIRE OF DEBT. Bonner makes the case that the only people that win in the stockmarket are insiders. He defines insiders as broker-dealers, big players and people that make their money off related stock market industries, similar to the people that sold picks and shovels to the gold miners. Also if you look at where rich, middle class and poor people hold their assets, only the rich hold a substantial portion of their assets in stocks and bonds. Only the middle class holds as large of a percentage of their assets in real estate as the rich hold in stocks/bonds. The poor, of course, hold neither asset, stock/bond or real estate for the most part.

For me, the moral of the above observation is this: if you aren't rich, don't try to play a rich man's game ... you will just become food for the rich. And this is exactly what has happened since mutual funds have enticed the middle class (even some poor) into the stock market since the early 1980s. All these people were slaughtered by the last debacle ended around 2002.

I predict the new allure is the "international market." 'Middle class suckers, come play the new INTERNATIONAL MARKET -- its better than just a mutual fund,' is the call. So Tharsaile, don't get suckered in. The reason the group you are occasioning is called DIEHARD.COM is because these "diehard" suckers refuse to acknowledge the game they're in. They desperately want to be rich, so they figure that by playing a rich man's game they will eventually BECOME rich. Wrong. The way to get rich is to:

A. Buy real estate for the rest of your life and continue to improve it and rent it, never selling anything;

B. Using equity and bank debt start some sort of business that provides a product or service that is, or goes into, great demand. Go public with the business or sell the business as an exit strategy.

C. Never drink alcohol or use drugs; work on your education, ethics and generosity constantly.

THEN when you are rich, dump these earnings into stocks and bonds where you only care basically about preservation of capital, i.e., growth rate of 5 to 10 percent.

I realize what the long-term growth rate of the stock market has been, but when you temper this with the fact that the dollar has lost over 95% of its purchasing power since the inception of the Federal Reserve System, the long term appreciation basically preserves capital and provides a slow, but granted, EXPONENTIAL growth.

Remember: the rich don't CARE about making money.

They only CARE about NOT LOSING money. I know it's difficult to understand this if you are young, dumb and hard-on bent for 20 to 30 percent ROIs (not saying this is you Tharsile), but when you get even a STABLE 5% on the relatively modest, rich-guy sum of say, $10 million, which is parked in stocks and bonds -- this is an annual income of $500,000 per year. Sure, the IRS is going to take at least 33% of this (without deductions), but who cares, you are still left with $330,000 per year.

And remember, to be a good rich guy: you don't want to work. You especially don't want to be hassled by employees, tenants, maintenance or business decisions -- you want to be "free." You want only two employees at most: your unbelievably aggressive tax accountant (who will preserve your capital) and your conservative Republican business manager (who will invest it in safe, stable stocks and bonds and get you your 5%.

Now, with your rich-guy system in place you are one of the HILTON sisters. Able to get drunk every night, travel the world (to get away from hangers-on), screw every chick or guy that has a nice ass. You are generally able to play the part -- and move to new states or countries (or take trips) when things get too hot or too boring. THIS is what it's all about, and as soon as more people in the world arrive at THIS position in life -- something the Robin Leaches of the world and Hollywood endlessly vomit -- we will all be happier and more satisfied. We will all be more fully living off the backs of the poor slaves we left in the dust, people enslaved by drugs and pharmaceuticals and cheese, and someday, AI robots. THIS state of planetary arrival is probably the basis for the Fermi Paradox. Why would other planetary societies -- that have arrived at this state -- desire to go through all the hassle of communicating with someone billions of miles away, let alone travel there. On the other hand, I DID say the rich like to travel -- so maybe they DID arrive at Roswell and infiltrate the government. This WOULD explain a lot.

Just some thoughts for you to pass on to your DIEING-HARD group Tharsaile.

>I don't understand why having an interest in investing means that nothing more important exists. Can't we be into more than one thing at the same time? Technology, perhaps?

See "Technology" and other terms in my new Glossary below.

>1000 of you saving the world. Sounds like that Ayn Rand novel. By the way, I think you're a few years too young to be a baby boomer.

Thanks for the compliment but I'm actually 99 years old.(1)

>>Well take a message back to all the morons at You're already dead.

>I can't -- they would delete it.

Well take the above message back, that they WILL be dead because they are playing a rich-mans' game.

James Jaeger

(1) I'm not really 99. I just wanted you to think I was for 20 words-time. :)


  • So funny,
    I have 2 employees,
    I travel,
    I Screw some nice asses, from time to time,
    Just bought 2 tons of silver in Zurich (far away from that 33%)-so it looks like I more preserve than invest.
    More , I prefer to feed on carcases, my favorite bird is vulture.
    Finally, do not try to beat the system, system always wins.
    good job James

    By Blogger Dariusz, At 8:37 AM  

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