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Why bond holders get screwed?

January 9, 2010

I want to believe that your decision to get wealthy and keep it means that you read carefully every insight or rule that I offer you about behavioral economics, not just the previous ‘stuff’ on borrowers versus creditors. Why? Because the education I give here on eliorkinarthy.wordpress.com or drelior.wordpress.com is worth yourself in gold. You won’t find this ‘pure’ knowledge anywhere else because I educate you like it is without a political, economic, religious  or cultural spin. Follow my ‘stuff’ and become amazingly in control of your financial life.

The ‘screwing’ of the individual investor started a long time ago when gold, silver, diamonds, and rare spices were the medium for barter. The seller gained by maximizing the value of his item and the buyer gained by minimizing the value of the same item. When governing bodies appeared on earth, they inflated the value of  ‘bonds’ to get as much money as they could from the governed, promising to use the money to offer ‘services’ far beyond Protection and Regulation, the only two services they were suppose to provide. What did they do with all that money? They waged wars! Since they didn’t regulate much of anything, lots of the money spent to wage wars to ‘rob’ foes. Since most ‘enemies’ were poor, the money was gone and governments could not pay back the bond holders (creditors). What happened then?

If the government (borrower) was stronger than the creditors (lenders), it simply said, ‘Screw you, it was a ‘just war’ an emergency, where is your patriotism?”  If the government was weaker because the courts, a militia, or a foreign government protected the creditors, it simply said, “OK, let a rich uncle save me (Dubai?), or let’s restructure the loan so we can pay contractors and suppliers to survive  – before we ever pay creditors.”  Guess what was the historical modus operandi? The most common way always to simply default on the loan if it came from western democracies because “America would forgive and not take action.” Thus, the big losers in world economy became the average American middle class investor – you and me, our parents and our children!

Do you want to stop the rip-off? Dedicate your life to make sure that our tax money given to our government, get guaranteed fair returns without ‘explanations.’

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