"The common law is tolerant of much illogicality, but no system of law can be workable if it has not got logic at the root of it." Hedley Byrne and Co. Ltd. v. Heller and Partners Ltd. (1964) England
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Utilizing the proper financial planning and investment strategy can insure you the ability to control your economic destiny.
In all ages and in every culture, there are individuals who sculpt their own lives out of the world available to them. They choose their own destinies and forge their own fortunes, bringing families and friends with them. They mark pathways for humanity: opening trade routes, developing markets, and financing innovations and inventions. Their actions determine the course of civilization as it moves from primitive tribalism toward a world community.
These individuals share one quality: a financial sophistication that springs from an international perspective. They are able to see beyond the neighborhood concerns that most of the world's population never transcend.
The rate of economic change accelerates constantly. Investment strategies that worked for the last generation would be disastrous today. Buy and hold or save and conserve are not the excellent advice they were a few years ago. Industries rise and die in the space of a decade. New investment media are springing up like mushrooms after a rain, offering options on futures contracts, future contracts on options, all sorts of derivatives and other esoteric instruments. Money market and other no-load mutual funds have been around for little more than two decades, yet their assets number in the hundreds of billions.
The political world is more confused than it has ever been as it struggles to find new problems to solve while ignoring the problems caused by government deficit in the history of the world rally against spending cuts that are actually only decreases in the rate of increase. The politicians who promised to get government of the backs of people have given the tax authorities a bigger budget and powerful new legal and technological weapons to crack down on tax cheats. The underground economy swells larger each day while legislators debate the fine points of inconsequential tax reforms. American taxpayers support the defense departments of Germany and Japan, while US unions lobby to keep these countries' products away from American consumers. The Soviet Union has collapsed yet the world does not appear to be a safer place.
British voters have given their enthusiastic endorsement to the sale of England's nationalized industries, while the French started nationalizing the remaining privately held industries. In protest, members of the French stock exchange planted smoke bombs in government buildings. Mainland China is now the third largest economy in the world after the USA and Japan. Asian countries with scarce natural resources are blossoming into consumer paradises, while African nations rich with nature's bounty are literally starving to death. The international economy may be moving into unprecedented prosperity or into a banking disaster triggered by loan defaults.
The merchants, bankers, and shippers who first grasped the advantages of international trade operated in a world where messages about foreign investment situations had to be physically carried. Information had to be coded or memorized in politically sensitive situations. The ownership of even a few books was limited to the very wealthy classes. In many cases, carefully gathered and hoarded information was outdated before it could be put to use. Nevertheless, the early multinationals amassed the world's first honest fortunes. Using the powers of information and exchange, they rivaled the wealth of the political empires.
Two Ways to Increase Economic Status
To this day, there are only two ways to increase economic status. One is the initiation of coercion through means that include both military and democratic processes. Coercive activity is generally employed in the redistribution of existing wealth.
The other method of gaining wealth is through voluntary transactions among consenting parties. This differs substantially from political / coercive acquisition because it actually creates new wealth through capital, personal services, or entrepreneurial actions.
The proponents of the two methods have always struggled with each other. Merchants and financiers want the use of capital to create even more wealth. Governments want it for their consumption and to buy support. Some sort of equilibrium is usually established wherein merchants pay governments a portion of their wealth in return for some degree of protection from other redistribute agencies. True financial awareness is based on that knowledge.
For the first time in history, economic sophistication is available to all who want it. The tools and perspective exploited by a relative few in the past are now available to anyone with the discernment to recognize them. Information can be obtained by anyone with access to a good library. Telecommunication and computer technology deliver that information wherever the phone lines go. Furthermore, the multinational man, (connoting the species, not the sex), can turn the confusion of twentieth century changes to his own benefit. As a Chinese philosopher said, the worse things appear to be, the greater the potential for gain.
Most people, however, including professional financial planners and large corporations, are still operating from the limited perspective of the Old World commoner. Not many people have the vision to see the world as a global community and to grasp their international options. That men and women with the opportunity to enter a cosmopolitan, international age still choose the parochial perspective is a mystery that we will not address.
Multinational companies have flowered since the Second World War. They represent a transitional stage in the continuing evolution of the ancient international organizations. It may be more accurate to call these companies transnationals because they do, in fact, transcend national borders; they do not simply operate in a multinational environment. They are, in a very real sense, companies of the earth.
The next phase in the economic evolution has already begun. The most sophisticated transnationals are now individuals who are diversified on a global basis, playing government against government as they scurry to attract transnational capital wealth. The proper financial planning and investment strategy will guide you toward achieving the ability to control your economic destiny. After all, the techniques used by the players in the international money game are really quite simple; the best players simply elevate the basic principles into an art form.
This document was excerpted, modified & otherwise prepared by the 'Lectric Law Library ('LLL) from materials supplied by Baltic Banking Group - www.BalticBankingGroup.com Copyright 1998 - 2002 'LLL & BBG, all rights reserved.