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Unfair Advantage FAQ Isn’t that risky? Is it legal? Short Answer It can be risky, but this is what the government wants us to do, which is why it is legal. In the previous chapter on taxes I wrote: 1. The harder you work for money, the more you pay in taxes. 2. The harder your money works for you, the less you pay in taxes. 3. The harder other people’s money works for you, you pay even less in taxes. You may even pay nothing, zero, zip, nada in taxes. Obviously, this takes the highest levels of financial education. This is a level of education my rich dad inspired me to attain. As strange as it may sound to most people, the government not only wants us to get into debt, the government offers tax incentives to get into debt. To better understand the relationship between money and debt, a little financial history is important.

Fin Ed History After 1971, the U.S. printing presses began to run as the government began using counterfeit dollars to pay for its expenses and debt. Because the United States used a lot of oil, U.S. dollars flowed to Saudi Arabia just as oil prices began to rise. As the price for oil rose, more dollars flowed to the Arab world. These petrodollars, as they were called, had to find a home, so these petrodollars flowed to London, because London had banks big enough to handle such a surge in cash. From London, these dollars again needed a home, so the money flowed to anyone who would borrow these petrodollars. Latin American countries gladly borrowed the money and, in the late 1970s and early 1980s, the Latin American economy went into a bubble and burst, causing the Latin American debt crisis. From Latin America, the hot money flowed 91

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Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

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