MONEY CAPITALISM: THE LIFE BLOOD OF CAPITAL
“The business of America is business.” A statement made by President Calvin Coolidge in the 1920s. As the song from the 1966 hit musical Cabaret says “ Money makes the world go round.” In the early eighties CD (certificate of deposit) and saving were yielding over 10%. When I was working in Banking, I use to tell all my clients about the 72 rule. The rule of 72 is a shortcut to estimate the number of years required to double your money at a given annual rate of return. But the game has changed, oh it’s still true ‘it takes money to make money’ here is the classic example. Warren Buffett Chief Executive Officer and Chairman of Berkshire Hathaway exercise its warrants to buy 700 million common shares for five billion dollars with Bank of America at $7.14 a share and in less than six months his investment made him twelve billion dollars.
Money Capitalism doesn’t produce anything but money. There are three main reason how money capitalism work. One thing you can do is be like Mr. Buffett and buy millions of shares at a discount rate and hundreds if not thousands of investors followed him and the stock runs up from $14.00 to $26.00 and voila his five billion investment made him 12 billion dollars in less than six months.
Another one that has been around for years, it’s like the old corner illegal loan shark that charges you 25% or 50% on a dollar. But now it’s legal if you have registered with the state and follow the lending guidelines. There are hundreds of loan companies that will lend you money on a personal and business level. These so call lending companies make millions charging high interest rates and fees having their clients but up collateral like your car, house, land or anything of value.
The third is what I call avoidance capitalism, avoid taxes, avoid paying a decent salary, and avoid making quality products. Most of us have read and heard that there are thousands of businesses and individuals that have their money park in some country that charges them 10% taxes or less to stash their cash; And the big talk today is repatriate that money, which means bring those dollars home to America (3 to 6 trillion) the money will be taxed at 10% to 15% that will never happen in my opinion. One of the main reason big time international corporations like Apple, Microsoft, Merck, General Electric, Cisco, Oracle, Coca-Cola and many more, employe millions of oversea employees with low wages and very little benefits. Concerning quality of products, how many times have you shopped at a mall or grocery store and the package or your favorite garment doesn’t feel or look the same.
Money Capitalist are about making money with money without producing, cutting corners, and finding ways to payless and charge more. These are capitalist that run the numbers and look at the data using what I call the Mathematics Analytical Analytic.
“We live in an ersatz monetary system that has reached it’s end stage. In our time, the aureate has become brazen–the golden has become brass.” James Rickards author of Currency Wars.
Ted Harvey Sr. writer Independent critical thinker
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