The “Keep Them In Debt” Game

Money Circle“‘Listen,’ I said softly, ‘I know it’s hard for you to make sense of all this craziness around here, but trust me, there’s a method to my madness, especially when it comes to spending. It’s important to keep these guys chasing the dream. And it’s even more important to keep them broke.’ I gestured over to the plate glass. ‘Look at them; as much money as they make, every last one of them is broke! They spend every dime they have, trying to keep up with my lifestyle. But they can’t, because they don’t make enough. So they end up living paycheck to paycheck on a million bucks a year. It’s hard to imagine, considering how you grew up, but, nevertheless, it is what it is.

‘Anyway, keeping them broke makes them easier to control. Think about it: Virtually every last one of them is leveraged to the hilt, with cars and homes and boats and all the rest of that crap, and if they miss even one paycheck they’re up [the] creek. It’s like having golden handcuffs on them. I mean, the truth is I could afford to pay them more than I do. But then they wouldn’t need me as much. But if I paid them too little, then they would hate me. So I pay them just enough so they love me nut still need me. And as long as they need me they’ll always fear me.” -From, “The Wolf Of Wall Street” By: Jordan Belfort

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Is It America vs. China In A Tug Of War For Africa’s Oil? (Throwback Post: 2/25/08)

Throughout history, natural-resource rich Africa has been pillaged for her goods. The most recent international discussion concerning Africa’s oil resources, involves the intentions of two nations who are often considered to be rivals- America and China.

When it comes to the mad dash grab for African oil, the question has arisen whether or not it is a venture in which the U.S. and China are “partners or rivals.” If they are in fact partners, then the question emerges of whether or not Africa will be able to survive the tag team efforts of two of the wealthiest, militaristic nations on the globe to obtain their “liquid gold.”

The BBC website recently reported U.S. President George Bush’s take on the Africa, China, U.S. oil triumvirate. On what is noted to likely be President Bush’s last tour of Africa during his final term in office, he addressed the African oil situation during a news conference.

According to the BBC website, George Bush stated that: “He believed there was room for both countries to invest in Africa ‘without creating a great sense of competition.’ “The aftermath of the effects of this “investment” on the African social climate remains to be seen. However with the current state of war in the Sudan, we can begin to draw the parallels. Stay tuned for more…

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The Fly Or Die Commerce Report: Agflation Defined

According to Investopedia, agflation is: “An increase in the price of food that occurs as a result of increased demand from human consumption and use as an alternative energy resource.

While the competitive nature of retail supermarkets allows some of the effects of agflation to be absorbed, the price increases that agflation causes are largely passed on to the end consumer.

The term is derived from a combination of the words ‘agriculture’ and ‘inflation.’

Interest in alternative energies contributes to agflation. In order to produce biofuel (such as biodiesel and ethanol), manufacturers need to use food products such soybeans and corn. This creates more demand for these products, which causes their prices to increase. Unfortunately, these price increases spread to other non-fuel related grains (such as rice and wheat) as consumers switch to less expensive substitutes for consumption.

Furthermore, agflation will also affect non-vegetative foods (eggs, meat and dairy) as the price increases for grain will make livestock feed more expensive as well.”

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The Fly Or Die Commerce Report: What Americans Spend Their Money On

According to Money magazine, the Bureau of Labor Statistics states that Americans currently spend most of their money on housing and transportation.

The Bureau of Labor Statistics breaks down the average percentage of annual spending as follows:
33% on housing
17% on transportation
13% on food
10% on retirement
10% on miscellaneous
7% on health care
5% on clothing and personal care
5% on entertainment

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The Fly Or Die Commerce Report: Rule 72

“There is a law called Rule 72 (72 divided by interest equals the number of years to double investment) which most people have never been taught. It’s also unfortunate that in America you can receive an elementary, high school and college education and never be taught Rule 72. If you earn 1% on your money, it will take 72 years for $1.00 to become $2.00.

Rule 72:
1%= 72 years
4%= 18 years
5%= 14.4 years
6%= 12 years
10%= 7.2 years
12%= 6 years
18%= 4 years
24%= 3 years

At a 12% return, $10,000 becomes:
$20,000 in 6 years
$40,000 in 12 years
$80,000 in 18 years
$160,000 in 24 years
$320,000 in 30 years
$640,000 in 36 years.” -From, “Black Economics: Solutions for Economic and Community Empowerment” By: Jawanza Kunjufu

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