Mercy! Mercy! That Dang Nabed PERCY!

Old Money

Old Money

Old Money has made an industry out of protecting their wealth making payouts to family members and passing their nest egg, relatively intact from one generation to the next. They use mechanisms like Offshore Accounts, Foreign Investments, Living Trusts, Foundations, Charities, and other forms of Non-Profits to protect the vast amount of wealth they have acquired, manipulate and control. What started as the seed money from successful industrialists, entrepreneurs, and inventors has been passed from generation to generation and until recently doubled every seven years. Remember the rule of seven?

If you don’t try and recall how those mutual fund and policy insurance salesmen used it to sell their wares. They would tell you that if you invest, say a $1000 dollars and left the interest alone that in seven years the principle would double. If you let that $2,000 ride another seven years it became $4,000. If you let that $4,000 ride another seven it became $8,000… then $16,000, then $32,000, then $64,000, $128,000, $256,000, $512,000, and $1,024,000… so if you invested your original $1,000 at the age of twenty, it doubled every seven years when the investor was 28, 35, 42, 49, 56, 61, 69, 76, 81, and so on until at the ripe old age of 88, the investor was a millionaire. For many years that was the way the system was set up to work and it did after a fashion.

Now if this would work for a paper-boy who made the initial investment when he was twenty years old, doubled down every seven years and became a millionaire ten cycles later, think of what the system generated for a Ford or Rockefeller who had millions in seed money to invest at the onset? The amount is staggering. If the paperboy fortune was allowed to ride through the next generation it became a billion and into a third a trillion. So when I’m talking about “Old Money” this is the scope of what I’m referring to. Still, its one thing to acquire wealth and quite another to keep it. The super rich live in a world of paranoia, worrying about how their unearned wealth might be taken away. Well, how might that happen you ask? Who is going to take away that huge hoard of wealth and power? Who do the super rich have to fear? Shown below are some of the potential “Redistributors” of their money:

The Government
War
Revolution
Thieves
The Middle Class
A collapse in the Economy
A redefinition of Wealth
A New World Order

I’ll be talking about these “worries” that keep the Aristocracy awake at night in the next few blogs.