Companies, Countries, Currencies, Commodities, Common Man & Conspiracies - Must Read

Wednesday, April 17, 2013

Companies, Countries, Currencies, Commodities, Common Man & Conspiracies

Greetings from Hitesh! Many of you have written about my last article “Response: The Ultimate Key to Success in Investments & Life.” As usual they wanted to know more about the 20%......!! Let me deal with their request.

Let me start  with Nassim Nicholas Taleb’s book The Bed of Procrustes. In his book, Mr. Taleb’s addresses the modern day ways in which “we humans, facing limits of knowledge, and things we do not observe, the unseen and the unknown, resolve the tension by squeezing life and the world into crisp commoditized ideas, reductive categories, specific vocabularies, and prepackaged narratives, which, on the occasion, has explosive consequences.”

How does this relate to the title of the article?

The current period as we have seen has started in 2008 with Companies going out of business, then Countries facing financial crisis, then Currencies facing devaluations and latest is Commodities. Will next be the common man? What is the conspiracy?

Reaction V/s. Magic of Response:-

With the results season on in India, most of the guys in media are busy talking about the results. Some are busy talking about the falling commodity prices. Some are busy reading charts for trading ideas. Let me tell you all these are reactions….and reactions can not make you successful. What you need is a Response.

How You Can Respond?

If you need to give the response, you need to spend little time in understanding history of last 200 years. With the beginning of Industrial revolutions in 1820 to 1840, wealth creations have speed up and wealth has reached to Common people of the world. Common Man is able to afford all the luxuries of life, which before 200 years, only few were able to afford.

The Conspiracy:-

With the common man gaining the power in last 50 years, the ways to control and capture his mind / life were thought out. So, following things have happened.

1. He was asked to invest in Companies Shares – He was made the Share Holder, the Owner of the company…..the first beginning of the money going back to the few powerful people. (Late Mr.Dhirubhai knew this very early and he also took money from the small guys…..and his son is the Richest guy today !!)

2. He was given Credit and Credit Cards……so he spends his future income in PRESENT. He was bombarded with Advertisements of Live life Kingsize without having to PAY!! Having spent his future income, he always remains under pressures and in control of those powerful few.

3. New Education courses were invented like MBA……so that he becomes an excellent executive and earn money for the big companies. All possible attempts are made so that he does not become entrepreneur.

4. Hosing Loans were given for 25 and 30 years……so all his life he keeps on earning for the other guy.

5. You are attracted towards junk and ready to eat foods……affecting your health. You have health issues from 30 onwards……but wait…they increased your life through medical technology….so that you remain alive to use their products/ medicines. In short, you are commodity for them.

6. If you study carefully, you will see the above trend in all other areas also.

What Is Their Strategy Now?

They have realized that common man is more powerful today then in the past. Now, they want to get back that power.

So, they created crisis in the market. That affected the companies first….then countries…..then currencies and now commodities. Rather then depending on you for their cash needs, they have started printing currency themselves!!

Just see, with the companies going out of business, currencies and commodities losing values…….you have nothing to cling onto. Like Mr.Taleb says…. facing limits of knowledge, and things we do not observe, the unseen and the unknown, you are helpless. You are skipping one channel to other, but it is not going to help. Its like “participants are calmly waiting in line to be slaughtered while thinking it is for a Broadway show”.

What Should Be Our Response Strategy?

If you react under above circumstances……you are gone. You need to respond. If you study the history, Religion, Caste, and Colour have always been the tools to manipulate the masses. Now, they are using Currency and Commodities.

We know that Religion, Caste, Country, Company, Currency, can be created and demolished. But Commodities can not be created in short time……and Common man (You) are unique. There is nobody like you under the sun. So, you and commodities are the only real things.

Once you realize that you are Unique, you can start working on using the other 4 for your benefits and beat them in their game.

Where to Invest Now?

Follow smart money. Find out where they are investing and you will benefit. As far as stocks are concerned, we are doing pick and choose.

You can follow me @hiteshmparikh on twitter.

If you need personalized guidance, do write to us.

Live With Passion, Invest with Passion.

Hitesh Parikh.