Part 2: How many money you have?

As I promise my readers on the previous entry, here you go the second part. Please tide your seat belt to find out more from untold mystery "The Truth Is Out There"..

We had being taught at school about mathematics, accounting, general knowledge just too bad that the teacher never tell us where the hell money come from. (This is because the teacher also don't know how to explain to us sigh)

It would seem natural, that the money is created by the Government, and in fact most Central Banks seem to be owned by the Government and run by it. I say "seem" because when the Government needs money, it does not order the Central Bank to credit some money to the treasury's account. The Government only has two ways to obtain money. One is taxation of it's citizen, the other is borrowing from the bank.

Okie. If you are still with me from the Part 1: How can the banks "create" money? That is a good question. Is it not the Government's printing office that prints all the banknotes?

Most of the time, we are misleading by the movie that the Government can simply printing money when they need to do so. As I mention early money is create by credit. When the Government need some cash credit either budget from taxation or borrow from privates (through the banker) and that is has to pay interest for this. That is why Governemt's Bond interest rate is alway chepaer than banker :p

Now we start to see why the Government never has money, and why much of our taxes go "off the top" of the budget, towards debt service. As a strong prove of my statement, the Government budget alway showing negative which means using future taxpayer's money.

The important thing to know: Money is created just by inserting some numbers into a computer.

To be continue...

Part 1: How many credit you have?

In today context, credit card no long a luxury however is a must. We pay our air-ticket, Internet bill, phone bill, housing loan, car loan, student loan, personal loan, Ikea or Courts furniture, Pak Tohing expenses and many more to be mention. Just take out your so call Plastic Credit Card and someone will swipe your card on a machine. The purchase transaction is done when you signed on the doted line. Wola within a minutes magic does happen between you the buyer, the retailer and the banker. When you walk out loaded huge carrier with "wind" all party are satisfy and happy. This is because you are given 5-10% discount for the rebate. On the other hand the retailer get profit of 30-40% depend on case to case basis. Finally the banker earn 3% for the service provided or even up to 24%p.a. if you are minimum monthly paymaster. Don't be too surprise this happen everyday and who know you are one of them. Here are the clip of Money As Debt:
Enjoy the clips ^^
1. Money As Debt 1: what money is & why we are bankers' slaves
2. Money As Debt 2: what money is & why we are bankers' slaves
3. Money As Debt 3: what money is & why we are bankers' slaves
4. Money As Debt 4: what money is & why we are bankers' slaves
5. Money As Debt 5: what money is & why we are bankers' slaves

Without beating around the bush, here is the hot potato: Money is being created not by our governments, but by a private monopoly run by the (private) banking corporations.

How many credit cards you have? The more the merry :p To be continue..

MAS: Notes with "KF" marking have no value

The Money Authority of Singapore (MAS) says the $50 notes with the letters "KF" marked on them are considered to be deliberately mutilated and they command no value. According to some source, the letters "KF" which appear to be marking stamped onto the note, are not part of the design of the $50 note. Please don't be panic when you are lucky or unlucky getting some "KF" marked note during daily grocery shopping. However you are advise to bring them to the banks for one-for-one exchange. Just wondering is "KF" note correlation to KFC whereby the "C" for chicken eaten by hungry ghost. Hmmm..

How to get rich?

If you’ve ever wondered how the rich get so obscenely rich, it’s not because it’s in their blood or because they attend the best schools. The reason is much simpler than that. You see, while you work hard for your money, rich people make their money work hard for them; they have the power of Passive Income!



There are three types of income - earned, portfolio and passive income. Most types of passive income are derived from real estate/property, while other types of passive income are derived from royalties from patents or license agreements.An income stream falling into passive income category is one where money is received usually on a regular basis, without continuing effort. This does not mean no effort at all; most passive income streams require great effort to start with.



Some Examples:
Automated web business.
Interest Income paid from bank deposits.
Rental income from real estate/property.
Royalties from writing a book.
Dividends from shares holding.
Selling digital files like software / ebooks or scripts or offering a service that doesn't require the merchant's intervention. In these cases, PayPal IPN may be used to achieve this.
Network marketing.
Have fun choosing your favorite way to financial success!

Save Now Not Later

When should one start saving?

Check out the follwoing examples to find out:
Scenario 1
Ali, 20 years old, saves $100 per month @ 5% p.a.
At 40 years old, Ali would have contributed $24,000, and earned an interest of $17,275

Total Savings = $24,000 + $17,275 = $41,275

Scenario 2
Billy, 30 years old, saves $200 per month @ 5% p.a.
At 40 years old, Billy would have also contributed $24,000, but only earned an interest of $7,186

Total Savings = $24,000 + $7,186 = $31,186

By delaying your saving plans, the same amount contributed would result in significantly lower returns!

Lesson of the day get a higher yield of return for your money. Let your money works harder for you.

No $$ No Talk

Did anyone wonder the origin of money?http://en.wikipedia.org/wiki/Money

How to ask your Boss for a salary increase..?

One day you send a letter to your boss asking for an increase in your salary!

Dear Bo$$:
In thi$life, we all need$ome thing mo$t de$ perately. I think you$hould be under$tanding of the need$of u$worker$who have given$o much$upport including$weat and $ervice to your company . I am$ure you will gue$$what I mean and re$pond$oon.

Your$ $incerely,


The next day, you received this letter of reply :

Oh my dear:
I kNOw you have been working very hard. NOwadays, NOthing much has changed. You must haveNOticed that our company is NOt doingNOticeably well as yet. NOw the newspaper are saying the world`s leading eco NOmists areNOt sure if the United States may go into a NOther recession. After theNOvember presidential elections things may turn bad . I haveNOthing more to addNOw. You k NOw what I mean.

Yours truly,
Manager