I had been trying to convey the same message to many people for the past few years.
I think it’s time to write it down now.
Let’s start with this simple illustration, say Scenario 1:
I would like to borrow $100,000 from you. Yes, YOU.
No worry, I will pay you some interest on the amount you borrow me, say 5% per annum.
How would I use this money?
Well,I will use it to set up a small company, and employ you (Yes, YOU) to work for me (no worry, I will pay you salary).
The products from the company, I will sell to you (Yes, YOU).
Will you lend me the $100,000 if so?
100% of normal people will say no for sure.
Look at a bigger picture.
The US government issues bonds (a financial product). The Malaysian government/investors purchase the bonds.
MNC like Intel came to Malaysia, setup the factories and employ local engineers.
The product, Intel processor, sell to Malaysian market as well.
Compare it with scenario 1.
Interesting, huh ?
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#1 by Rich Dad on April 14th, 2009 - 3:09 pm
The Name of The Game is Debt and Cash Flow
#2 by Malaysia Mini Lover on June 1st, 2009 - 4:41 am
By making the simple complex, the financial world sounds intelligent and makes you feel stupid when it comes to money. When you feel stupid, it is easier to take your money.