Navigating the Labyrinth of Financial Information
he Matrix was one of my favorite movies. Our hero, Neo, fights the establishment and learns the truth about the illusion of his world, ultimately transcending and operating at a level above the prison of the mind. He discovered the truth and used it to free himself of limiting ideas that kept him and everyone else beholden to the agreed-upon realities of a socially-engineered cyber society.
I often refer to our current financial and economic experience as the Matrix. And it is. The reason why you are in a financial condition that is less than affluent is due to the fact that your financial decisions are based on financial misinformation and disinformation – just like the Matrix. When given the truth about finances and economics, you would naturally make correct decisions and your financial condition would manifest prosperity in your life. The fact that the financial condition of most households is less than affluent shows that it is difficult to discern between fact and fiction with the information we are given when it comes to learning how to manage our money.
The subject of Econologics concerns itself with the truth about finances and economics as it relates to the household. It is the codification and standardization of workable processes that can be applied by anyone to achieve consistent and predictable results. The intention of the Econologics practitioner is to assist the client in applying policies and procedures that result in an affluent condition for the household and its members, despite the forces in our system that have other intentions. In order for higher financial conditions to manifest in your household, your transactions related to time and money must align with known natural laws and basic truths related to the subject. Your current experience, whether good or bad, is the degree to which you know and apply fundamental financial and economic principles.
In order to assist you in achieving affluent financial conditions in your household, I have developed The Econologics Financial Information Scale (on the next page). This scale delineates the differences between facts and opinions related to financial information and how to recognize them. If you truly understand this scale and strive to make your decisions in alignment with the top of the scale, then you will avoid the major disasters that will destroy your wealth.
Let’s start at the bottom of the scale.
It can be easily demonstrated that financial decisions that are based on someone’s opinion may or may not turn out the desired result. Everyone has an opinion—it may not be backed by research, it may be designed to purposely mislead, or even possibly have some degree of workability. Decisions based on opinion create too many variables, which increases risk and potential for loss.
The systematic opinions that pervade our economic and financial matrix are those that serve special interests, invariably at the cost of the average citizen. It is these opinions that are the source of all of the economic ills experienced by our civilization, so learning to navigate them is of primary importance if you want to survive and prosper.
These systematic opinions that drive undesired financial conditions are as follows:
Authoritative Economic Theory: This is the modern economic theory authored by John Maynard Keynes called Keynesian Economics. It justifies central economic planning under the control of central banks and the need for debt.
Authoritative Investment Theory: The financial press constantly touts the benefits of timing the investment markets and which investments you should own that are due to out-perform the market. Unfortunately, empirical evidence from countless studies proves this to be impossible over time.
Authoritative Political Theory: The United States is a republic based on The Constitution and Bill of Rights. Over the last 200 years, there have been ideologies introduced that have brought about Socialism and Communism into our experience. These latter political systems always bring financial ruin.
Accounting: The subject of accounting is not a science, but a creative art form. The standard for technical precision is called GAAP – Generally Accepted Accounting Principles, which is essentially the agreed-upon opinions of practitioners on how accounting should be practiced. This leads to infinite versions of accounting and tax preparation results.
Fractional Reserve Banking: Money in our current culture is lent into existence from private banks. Commercial banks who are members only need a small fraction of money on hand to create virtually unlimited loans and charge interest on those loans. This is the cause of inflation and economic instability.
Case Law: In any courtroom drama, there are going to be arguments forwarded by both sides of the dispute to prove their case based on a set of facts and circumstances. Because rulings are based on opinion, different outcomes can occur from virtually identical facts. These rulings are then further used as precedents for future arguments. This opens the door for arbitrary legal outcomes that defy justice.
Progressive Tax Laws: The existence of an income tax is in violation of the Constitution. It is simply a way to pay the interest on the national debt and redistribute wealth from the productive to the unproductive. The tax law is full of deceptions, exceptions and exceptions to exceptions that make it one of the most arbitrary systems in our country.
These opinions have become agreed-upon systems that make up the economic matrix. You must recognize not only the opinion, but the continual propaganda that is disseminated to justify its continuation. If you know the characteristics of these opinions, you will be able to recognize them.
These opinions will appear illogical when you evaluate them. They will be unnecessarily complex, convoluted and difficult to understand. They will be based on theoretical application but will fail miserably when tested against real-world results. These opinions will be impractical, especially regarding actual implementation. Contradictions will be part and parcel of the subject because the opinions are arbitrary and not based on any real truth.
Facts, however, can be seen in the quality of the results. If something is working and helping you approach desired financial conditions, then you are dealing in truths. Your financial well-being is dependent upon your use of facts in your financial decisions and your actual results will tell the tale of your understanding of these relevant truths.
Here are some examples of these truths:
Economic Laws: These are the natural laws of mathematics, statistics and the basics of production and exchange. They consistently work and can be relied upon to accurately predict the production, distribution and consumption of goods and services.
Financial Axioms: These are the rules regarding the management of financial affairs. They include the calculations and measurements of risk, the time value of money and the calculation of investment returns, as well as budgeting and bookkeeping.
Fundamental Principles: These are the basic actions and behaviors that monitor one’s financial condition. They include the management of debt and credit, asset protection, prudent investing, providing for one’s later years and overall financial planning.
You will recognize these truths because they are logical, factual and easy to understand. They are very simple and straightforward in their application. These truths will be based on empirical evidence and not subjective measurements. They will be obvious facts found on even the most casual of observations. They will stand in the category of common sense to most people. The implementation of these truths will create consistent application and consistent results. They will be rational as one seeks to use reason in understanding and communicating the data.
The financial experience you will have in life is totally dependent upon your ability to discern opinions from facts. The Matrix has at its core, opinion. That is why we have a difficult time finding and keeping affluence in our lives. If you take the time and effort to learn the facts about your financial existence, you will have much more affluence in your life to show for your efforts.
The Private Practice Millionaire Academy is a retreat event for you as a professional business owner to learn these fundamental truths and their application as organized by the subject of Econologics. Make every effort to attend. It will change your life.