Where
Do Millionaires Keep Their Money?
10/11/2013
SPECIAL AGENT GIBBS WHERE DO
MILLIONAIRES KEEP THEIR MONEY? 10/10/13
New post Cindieloohoo Today at 11:28 pm OOM & F CHAT
[..SpecialAgentGibbs] Where do millionaires keep their money? In the sense that FDIC insurance only covers $250,000 at the bank and SIPC only covers $500,000 at the brokerage.
I mean, I can’t see Bill Gates putting $250,000 at thousands of banks across the country, nor can I imagine Lou Simpson’s net worth getting wiped down to half a million because of a bankrupt Scottrade. Ha!
So when people accumulate millions, what becomes the “safe spot” to keep it?
...
Read More Link On Right
New post Cindieloohoo Today at 11:28 pm OOM & F CHAT
[..SpecialAgentGibbs] Where do millionaires keep their money? In the sense that FDIC insurance only covers $250,000 at the bank and SIPC only covers $500,000 at the brokerage.
I mean, I can’t see Bill Gates putting $250,000 at thousands of banks across the country, nor can I imagine Lou Simpson’s net worth getting wiped down to half a million because of a bankrupt Scottrade. Ha!
So when people accumulate millions, what becomes the “safe spot” to keep it?
...
Read More Link On Right
[..SpecialAgentGibbs] First, you
have to realize that “money” in one sense doesn’t exist. It is an idea. If you
are talking about the green pieces of paper the Treasury department prints,
there is only about $575 billion in circulation yet household assets in the
United States are valued at more than $50 trillion.
[..SpecialAgentGibbs] Think about that. If you owned every single United States dollar bill in the entire world, you would only have 1/100th of the estimated household net worth in the United States.
The reason: Those greenbacks are merely an exchange mechanism. They represent something that people can trade to signify a claim check on society. In and of themselves they have no value.
We could have just as easily chosen sea shells or jars of strawberry jam.
The reason societies have preferred gold and silver over time is they are difficult to mine, so it is very hard for governments, politicians, kings and presidents to make the currency worthless by printing more paper.
[..SpecialAgentGibbs] The result is that most wealth isn’t held in the form of cash. In fact, I think of money as being held in seven distinct forms (there are more but these are the major ones):
[..SpecialAgentGibbs] 1. Business ownership (stocks). If you own a chain of dry cleaners that makes $1 million a year in profit, you could probably sell the company for between $10 million and $15 million. You don’t have that money “sitting” anywhere, but it is yours nonetheless.
[..SpecialAgentGibbs] 2. Money they have loaned and must be repaid to them in the future such as bonds, certificates of deposit, money parked in bank accounts, and money invested in money market funds,
[..SpecialAgentGibbs] 3. Real estate, such as hotels, apartments, stadiums, homes, storage units, bridges, etc.
[..SpecialAgentGibbs] 4. Commodities such as gold, silver, platinum, corn, cattle, mineral rights, oil, natural gas, sugar, coffee, etc.
[..SpecialAgentGibbs] 5. Nominal currencies, such as United States dollars, Euros, Yen, and British Pound Sterling stuffed in envelopes or briefcases.
[..SpecialAgentGibbs] 6. Intellectual property, such as ownership rights to famous songs, books, movies, and photographs.
If you owned the rights to Star Wars, you could have no money in the bank but the truth is, you are probably a billionaire because you could sell those rights to a lot of interested investors; they, in turn, could create new merchandise and products and make money from it, which is why they are willing to pay you.
Brand names are a huge source of intellectual property value, such as Coca-Cola, Clorox, Wrigley, Hershey’s, and Folgers.
[..SpecialAgentGibbs] 7. Tangible property, such as famous paintings, historical artifacts, rare books, etc.
If you owned an original, signed copy of the Declaration of Independence, you could convert it into any other form of wealth you wanted, such as nominal currency, which you could then use to transfer your wealth into real estate, or commodities, or any of the other categories.
[..SpecialAgentGibbs] That means that most of the time, someone with substantial net worth doesn’t need to park their money in a checking account.
You couldn’t steal Bill Gates’ $50+ billion from him because it isn’t money in a briefcase; it is office buildings, shares of stock, railroads, book copyrights, personal real estate, private jets, rare art … the list is endless. Don’t Think of “Money” As Being Cash
http://www.dinarrecaps.com/1/post/2013/10/where-do-millionaires-keep-their-money1.html
[..SpecialAgentGibbs] Think about that. If you owned every single United States dollar bill in the entire world, you would only have 1/100th of the estimated household net worth in the United States.
The reason: Those greenbacks are merely an exchange mechanism. They represent something that people can trade to signify a claim check on society. In and of themselves they have no value.
We could have just as easily chosen sea shells or jars of strawberry jam.
The reason societies have preferred gold and silver over time is they are difficult to mine, so it is very hard for governments, politicians, kings and presidents to make the currency worthless by printing more paper.
[..SpecialAgentGibbs] The result is that most wealth isn’t held in the form of cash. In fact, I think of money as being held in seven distinct forms (there are more but these are the major ones):
[..SpecialAgentGibbs] 1. Business ownership (stocks). If you own a chain of dry cleaners that makes $1 million a year in profit, you could probably sell the company for between $10 million and $15 million. You don’t have that money “sitting” anywhere, but it is yours nonetheless.
[..SpecialAgentGibbs] 2. Money they have loaned and must be repaid to them in the future such as bonds, certificates of deposit, money parked in bank accounts, and money invested in money market funds,
[..SpecialAgentGibbs] 3. Real estate, such as hotels, apartments, stadiums, homes, storage units, bridges, etc.
[..SpecialAgentGibbs] 4. Commodities such as gold, silver, platinum, corn, cattle, mineral rights, oil, natural gas, sugar, coffee, etc.
[..SpecialAgentGibbs] 5. Nominal currencies, such as United States dollars, Euros, Yen, and British Pound Sterling stuffed in envelopes or briefcases.
[..SpecialAgentGibbs] 6. Intellectual property, such as ownership rights to famous songs, books, movies, and photographs.
If you owned the rights to Star Wars, you could have no money in the bank but the truth is, you are probably a billionaire because you could sell those rights to a lot of interested investors; they, in turn, could create new merchandise and products and make money from it, which is why they are willing to pay you.
Brand names are a huge source of intellectual property value, such as Coca-Cola, Clorox, Wrigley, Hershey’s, and Folgers.
[..SpecialAgentGibbs] 7. Tangible property, such as famous paintings, historical artifacts, rare books, etc.
If you owned an original, signed copy of the Declaration of Independence, you could convert it into any other form of wealth you wanted, such as nominal currency, which you could then use to transfer your wealth into real estate, or commodities, or any of the other categories.
[..SpecialAgentGibbs] That means that most of the time, someone with substantial net worth doesn’t need to park their money in a checking account.
You couldn’t steal Bill Gates’ $50+ billion from him because it isn’t money in a briefcase; it is office buildings, shares of stock, railroads, book copyrights, personal real estate, private jets, rare art … the list is endless. Don’t Think of “Money” As Being Cash
http://www.dinarrecaps.com/1/post/2013/10/where-do-millionaires-keep-their-money1.html
3 comments:
This man is an idiot! The FDIC went bankrupt in 2006 and only exist in our minds! The Rich exchange their cash into other currency and deposit it into National Banks that are not controlled by Central Banks such as Somalia; Panama and Uruguay to name a few. Titles to real estate specify that you are a tenant and not an owner. The elite claim that they own the land and have mortgaged it to back their irresponsible spending. Silver is in short supply however gold and diamonds are more plentiful than any of you know and when the true quantity is made known, their value will drop to pennies on the dollar. The Rich know this because it was they who control the price of both commodities. Wake up people and stop buying into advice from chumps like this guy!
And money in our current banking system is created out of thin air through debt. So at the moment we only have about 2-3% debtless money, and all the rest (97-98%) is debt. And it is debt to private banks (including credit card companies), because only those have the right to create money. How do you think we ever pay off that debt with that 3%...?
As a debt is issued it is a new money in our system. (Most of the money is digital numbers on our bank accounts. Not cash.) But only the amount of new debt was created. As we start to pay that debt back, we must also pay for the interest. But the amount of the interest was not created when you took that loan. So someone else has to take new loans to cover up that amount. And so it is for the next one... As long as the debt is increasing minimum the amount of previous interests, the money still holds up the system. But when there is not enough new debt created, it will collapse... Basically it's a ponzi.
. And the bankers get to collect an interest of money they created out of thin air... I would call that an intelligent business model! -But who's the stupid one here?
Millionaires don't have money. They use yours!
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