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The Financial Crisis has affected the economy in many ways and a lot of people have seen their income reduce or their savings go up in smoke. If you're one of them, or if not and you want to drastically increase your income, continue reading.
What is a Financial Crisis?
What do we mean with Financial Crisis? When we speak of the word financial we mean money. When we speak of the word crisis we mean a time of great [link widoczny dla zalogowanych] stress or danger. [link widoczny dla zalogowanych] So we could say that we are currently in a stage of depression involving money. This is a situation we would like to end. Something which has an end also has a beginning. So where did it all begin? It began when we invented money and brought it to the bank.
What is money?
To answer this question we should first ask ourselves why did we invent money. Let's go back to the good [link widoczny dla zalogowanych] old days when there was no money. How did [link widoczny dla zalogowanych] we go about our day to day business in order to survive? We exchanged our goods. Farmer Joe traded his potatoes with the vegetables of Farmer Bill and the meat of Farmer John. All three had a decent meal and were happy. This went fine for a long time until Joe wanted to eat something else for a change. Also Bill had moved to another location and now Joe had to carry his potatoes for 10 miles. In other words, this barter system became unpractical.
Meanwhile people found out that some goods were more valuable than others. To be more specific, goods which were desirable and scarce had a higher exchange value. To be even more specific, with a little [link widoczny dla zalogowanych] clump of gold you could get a lot of potatoes, meat and vegetables. Gold clumps became gold coins, gold coins became banknotes and money was born.
Where did it go wrong?
One fine day Mr. Goldsmith got a visit from his old friend Jack. Jack [link widoczny dla zalogowanych] had big plans to buy some land and raise cattle. The only problem was that he did not have any means to get his business started and he therefore asked his old friend for a clump of gold. Once his business had yielded enough profit he would pay back Mr. Goldsmith, plus a little extra for the fact that he had helped him financially to set up his business. Mr. Goldsmith liked the proposition and got a bright idea. Instead [link widoczny dla zalogowanych] of giving Jack a clump of gold he gave him a receipt! Soon the word spread and more people visited Mr. Goldsmith to get a receipt as well and Mr. Goldsmith happily issued them, thinking of all the money he would make from the the little extra's he would get back. At this point interest was born and Mr. Goldsmith had become Mr. Banker.
Time went by and Joe ran into a lot of people who had gotten a receipt from Mr. Goldsmith without having turned in [link widoczny dla zalogowanych] a clump of gold. Joe started to get worried a bit. What if those people went to Mr. Goldsmith to collect a clump of gold? He decided to not take any risk and went to Mr. Banker - formerly Mr. Goldsmith - to collect his clump of gold. He was terror-stricken we he saw the crowd of people who had had the same idea to collect their clump of gold. There [link widoczny dla zalogowanych] were 60 people and Mr. Banker only had 50 clumps of gold! Moreover, he had issued 500 receipts and hardly anyone had paid him back, either in gold or in goods which could be exchanged for gold. What to do now? Well, Mr. Banker had another bright idea. First he assured everybody that everything was alright. He told them not to worry, have a good night sleep and come back in the morning if they still wanted their gold back. The gold was locked away safely and he would have it ready for them in the morning. Overnight he melted the 50 clumps of gold in a big pot and subsequently made 60 clumps of gold out of it. The next morning Joe and all the others, still a bit worried, went back to Mr. Banker who proudly showed them their clumps of gold. Of course the more observant amongst them noticed that the clumps seemed to be a bit smaller. How come? Mr. Banker explained them that 'times are rough', 'crops have suffered damage', 'cattle has died' and 'shit happens'. Wow, Joe and the others were shocked but on the other hand they felt lucky they still got most of their gold back. However, their trust in the receipt of the goldsmith had suffered quite a dent. Inflation was born and the first Financial Crisis had found its roots in the economy.
So exactly when did it go wrong?
When Mr. Goldsmith became Mr. Banker by giving a receipt to Jack all was still fine. He knew Jack was a good worker and able to pay him back soon. Also the following two visitors were decent, trustable people, capable of producing enough goods to pay back Mr. Banker. Had Mr. Banker issued three receipts for each clump of gold he had in his possession all [link widoczny dla zalogowanych] would have been fine. In fact, his business and the economy in general would have prospered, assuming that the majority of the loans would indeed result in an increased production and exchange of goods. Nobody would have gotten suspicious and rush to Mr. Banker to get his clump of gold back. Even if someone did Mr. Banker would be able to give back the clump of gold without any problem and the trust in the receipt would not have suffered any damage. On the contrary, the fact that one collected his gold from Mr. Banker proved that the receipt was what it said: 'worth one clump of gold' and was therefore totally trustable.
So when Mr. Banker issued ten receipts for each clump of gold, not really assuring himself that the recipients were able to pay him back, he got himself on thin ice. Initially each receipt represented one clump of gold: one receipt equals one clump of gold. As he issued more and more receipts and more and more people did not produce sufficient goods to pay him back, there were more receipts than clumps of gold/goods. Hence: one receipt equals less than one clump of gold. In order words, one had to give more receipts than before to acquire the same amount of goods.
Fact: In the recent past banks/governments have issued several thousands of 'receipts' (dollars) for each 'clump of gold' (dollar) they have in possession, for loans, mortgages, etc. which did not result in [link widoczny dla zalogowanych] any exchange of goods/services. So if you wondered why we [link widoczny dla zalogowanych] have a Financial Crisis...
Is everything affected by the crisis?
Although many areas of business have been affected by the crisis there is still an area which is booming despite all the fuss about money these days: The Internet. More and more companies are going online simply because it's cheaper, faster and more profitable. As more people are buying online more goods/services are exchanged for money. This not only helps the economy, it could also help you financially if you had a share of this. Did you know that 90% of today's millionaires are internet millionaires who market other companies' products? So why miss the boat while your neighbour is ordering his next BMW?
You probably think that all these new millionaires are computer experts and marketing gurus. WRONG! If you can read and write English and know how to turn on a computer and how to go on the internet you could be one of them in a very short time. This might sound very unreal or "fishy" to you but if you have enough self-discipline to spend a few hours to follow an exact laid out step-by-step program you could be the next internet millionaire.
How do I do this?
There is a program called Maverick Money Makers. Unlike many other Internet Marketing programs this one will show you EXACTLY in easy-to-follow steps what you need to do to make money, make more money, make lots of money, make more money you ever wish to spend, in short: become an internet millionaire.
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