OPEN LETTER FROM NEALE PETERSEN, FOUNDER AND OWNER OF REAL ESTATE INVESTOR MAGAZINE: Good day I consider myself to be a capitalist. I believe that hard work and smart investments get you results. I don’t believe in hand-outs and, like most South Africans, I stand vehemently against corruption. I founded Real Estate Investor Magazine because, like you, I believe that property is a solid investment and that property investment is long term and secure. However, there is a dark element to our economic system that very few people talk about openly. At the end of the day, as a publisher, I cannot stay silent merely to keep certain advertisers happy. This is precisely why we have published a series of articles in our magazines that explain something sinister with our banking and economic system. It comes down to this: I do not appreciate my business dealings being impacted by an industry that does not take accountability for its actions. I am talking about the banking industry. I have watched banks auction countless properties. Liquidations and sequestrations have ended family dynasties and have left countless people homeless. The moment people cannot repay a loan, the vultures swoop in. This fear tactic has been used for years to keep people paying and paying. Now, as unfair as it is, I have always accepted this to be a part of life. However, when it happens to a bank and that bank gets bailed out by the very people who are already suffering, this gets my blood boiling. With the flick of a pen, an SA taxpayer can easily lose his home, his property and his livelihood. But as soon a bank gets into financial trouble, that same taxpayer must now bail out that bank! This is not just ludicrous, it is simply insane. After the 2008 crash, which was caused purely and simply by banking greed, I took it upon myself to study the economic system. I began by asking simple questions like: Where does money come from? How is a bank loan created? What is securitisation and what are the banks doing with my security once my documents are signed? And what exactly is this institution called The Reserve Bank? You would be amazed at how few people can answer these questions correctly. Many think they know the answers, but the reality is that most senior managers in top positions in banks and corporations do not have the foggiest clue about what is really going on. Former Bank Regulator, Lord Adair Turner, stated categorically that our schools and universities teach a “mythological story of what banks do.” In other words, academics who speak and discuss economics, and those who make decisions for our country, are very likely to be misinformed. As hard as this is to believe, my research indicates that we have a serious education problem. For example, we think we know what causes inflation, but are the academic explanations truly the underlying causes? I am happy to say that these three articles below have gone viral across the Internet. They did irritate and annoy few people who did not have the humility to see past their own education and belief systems. However, I believe they did far more good than harm. We are too easily swayed by big sounding words and complicated indicators. Sometimes we have to get back to basics. Ask the simple questions. That’s what I did, and that is what I would like to share with you here. Until next time, Neale Petersen The Real Estate Investor Man {links to articles are posted below}
Posted on: Mon, 13 Oct 2014 14:18:43 +0000
Trending Topics
Recently Viewed Topics
© 2015