How to Benefit from the Greatest Transfer of Wealth – Must Read

by Hubert Moolman

 

Originally published on 16 February 2009

 

 During the 7 years of famine in Egypt, in the time of Joseph, one of the greatest transfers of wealth in the history of this world took place. The Pharaoh of Egypt obtained great wealth in the amount of land and people who became his servants. “And Joseph bought all the land of Egypt for Pharaoh: for the Egyptians sold every man his field, because the famine prevailed over them: so the land became Pharaoh’s” –Gen 47:20 

Not only did he buy every man’s field but also every man as a servant. With what did he buy every man and his field? With bread – “buy us and our land for bread, and we and our land will be servants unto Pharaoh” –Gen 47:19 

I believe that we have reached a time where the greatest wealth transfer in our lifetime as well as possibly in the history of this world is about to happen. Some people ask: “why the gloom and doom?” What they do not understand is the fact that this great transfer of wealth or collapse of the world’s monetary system (which they call gloom and doom) is inevitable due to past events. 

Some of these people go on the say: “what about the poor people?” and they want to make you feel that you do not care when you are warning of the coming collapse. What they do not understand – in addition to the fact that these events (which they call gloom and doom) is inevitable due to past events  and not because you want it – is the fact that they do not have to suffer this supposed gloom and doom. 

Anyone who makes a point of seeking the truth, educating himself, obtaining knowledge about the issues that face us, will not suffer, and in many cases will actually benefit from such events. The ones that will suffer are those who refuse to educate themselves by seeking and obtaining the required knowledge. “My people are destroyed for lack of knowledge” – Hosea 4:6 

There are so many people that are economically illiterate and they are not who many might think they are. They can be rich or poor, young or old, doctors or unschooled, financial advisors or whatever. 

Many people want to hang on to a system (world monetary system) that really brings gloom and doom. They get worked up when someone warns of the flaws of the current monetary system and what gloom and doom it already brings as well as the worse to come as result of the flawed system. They will do and say whatever to protect the flawed system, whether they are major benefactors of the flawed system or not. 

They continue to believe the lie, because it is “politically correct” or “socially acceptable” and they want to keep the so called peace – protecting evil in order to do good. 

Many people still follow or believe their leaders despite all the problems they find themselves in which, in most cases, is directly as a result of the actions of those leader. They deny (don’t want see) the truth and rather seek familiarity. 

The Pharaoh in the time of Joseph was definitely not like such. No, this man was very wise. He did seek truth, not familiarity. When Joseph explained to the Pharaoh what his dream meant, the Pharaoh believed him despite the fact that he did not even know him. 

How was the Pharaoh able to distinguish truth from error? Simple – he looked at the track record of the man. Joseph has had success interpreting dreams and this was witnessed to Pharaoh – “and I have heard say of thee, that thou canst understand a dream to interpret it” Gen 41:15 

Also, when Joseph explained the meaning of the dream, he also offered some advice as to what to do about it. Again, Pharaoh did not go back to familiarity, he did not follow his own advisors, but he again went to a man with a track record of truth and success with work. Remember Joseph was working for Potiphar, an officer of Pharaoh, and eventually became overseer over Pothiphar’s house due to his success. 

Back to Today 

We have a huge problem today in that debt levels worldwide are extremely high and even worse, it is incalculable. Now, it is imperative to understand that debt cannot be paid with debt. And when I say debt, I mean all debt: government, personal, corporate etc. Instead of reducing the debt it will just increase the amount of debt. Even when payment is made using money (non real paper money) one does not know to what extent the debt is discharged. This is because paper money is a promise to pay (various things from previously gold to future taxes, future production and even nothing) and one does not know to what extent those promises will be met, if at all. This is clearly understood when you understand that paper money is not an honest or consistent measure. You can read my article on “how do you measure wealth” for more on this. 

So actually one is just adding to the debt by creating more paper money to pay debt. It might not be so apparent but the debt will still be somewhere in the system. 

The debt incurred is the past events that will lead (and is already starting to do so) to the events that will translate into this great transfer of wealth. The coming world monetary system collapse is inevitable because the debt is heavy and it is real. 

Debt can only be properly settled with real assets, this is inescapable.  So if you borrow a car from someone, you are indebted to that person. You can settle that debt only by returning the car. The only real alternative to paying with that car is paying with what we call money (real money) which is itself a real asset. Like I explained in previous articles, real money is a capital claim on assets not a debt claim like paper money. To fully appreciate this one has to understand the function of money as well as what properties money should have.  Various commentators as well as I have written about the function and properties of real money. 

So it follows naturally that if debt is huge and it has to be paid by specific real asset or real money which is itself a real asset, real assets acceptable as full payment of debt would be in huge demand when debt is being paid off the proper way. However, I am not seeing the big debtors of this world paying their debt in specific real assets or real money. No, they are rather paying their debt with more debt (newly created money and other credit instruments). When they do this, the paper prices of real assets (more generally) eventually rise. 

To keep things simple, it would be acceptable to say that paying debt with real assets is deflationary whereas paying debts with debt is inflationary. Now you can see why governments are so scared of deflation. They don’t want to pay debts the proper way. 

I hope that it is now also clear why it is high inflation and hyperinflation that one should expect going forward. To expect the contrary is to bet that the US and others will actually start paying their debt with real assets like the kind that you have to dig deep into the bowels of the earth for. 

However it is not to say that certain assets cannot deflate significantly going forward. 

So, having specific real assets that are acceptable as full payment of debt is how you will prepare yourself for this coming great transfer of wealth.  This is because they eventually win both ways. It is really as simple as that. The Pharaoh simply accumulated food because he knew a big famine was coming, and throughout that famine he was not only protected but he gained enormously. Nobody knew how big the famine was going to be and therefore how much food had to be stored.  That is why Joseph collected as much food as possible. 

Savings is what saved Egypt and what will save you and I. A previous article of mine called “The truth about our money” will give you more insights about the importance of a store of wealth and how it is relevant to protect us from the coming events. 

Some real assets will be of course better than others. Food for example is the only thing that will get rid of hunger or water of thirst. It is important that you have the relevant goods or services when it is required. Since it is not possible to store everything that you might need in the future, it is essential that you have an ability to obtain the required goods and services when required, and this is why you have to have the best store of wealth. The best store of wealth is quite simply gold and silver and therefore they are a must have. And of course they are also assets that are acceptable as full payment of debt. 

Which real assets to accumulate, when and how to accumulate them are the big questions. I have given you some tips with regard to this now. However, this is where your quest for truth becomes very important. You have got to educate yourself; you have to get the designation EL (economically literate) behind your name. By reading sites like these (you are probably reading from one of the great informative sites where my work is published), where many knowledgeable writers share their knowledge, you are already making a great start. I hope to cover the importance of knowledge-sharing in a future newsletter. 

You have to be as wise as the Pharaoh. You have to distinguish truth from error. Do not be afraid to separate yourself from familiarity when it is flawed with lies or error. When choosing leaders or seeking advice, look at people’s track record. Where and how have they led people before? Do they have any success? Like I said Joseph had had success and therefore the Pharaoh trusted his advice. 

I would like to close by quoting the President of America, Barack Obama: 

“we say to you now that our spirit is stronger and cannot be broken; you cannot outlast us, and we will defeat you” 

I would like to use his quote to send a warning to him and all world leaders out there, for if they are lying to us or plan to lie to us about money and the economy: 

we say to you now that the spirit of truth is stronger than you and any lie and cannot be broken; you and any lies cannot outlast the truth, and the truth will defeat you and any lie; therefore do not lie to us” 

 If you find this information useful, please forward it to friends or family so that I can continue to reach people that would not normally read such informative sites as this one. If you would like to subscribe to my newsletter please send me an email. My newsletter is free and I send it out whenever I have something to “say”.  I do accept donations though, so that I can continue to research and write; email me for how. 

To read more of my work you can read the rest of my blog: http://blogs.24.com/hubertmooolman 

You can also find my articles at www.oreconsulting.co.za 

May God bless you. 

Hubert Moolman EL (Economically Literate) 

You can email any comments to hubert@hgmandassociates.co.za 

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