The Keys to the Shadow Banking System: THOMAS PIKETTY'S 10 NEW RULES FOR INVESTING IN THE...

The Keys to the Shadow Banking System: THOMAS PIKETTY'S 10 NEW RULES FOR INVESTING IN THE...: THOMAS PICKETTY'S CAPITAL IN THE TWENTY-FIRST CENTURY HAS OPENED  UP A NEW PARADIGM FOR INVESTMENTS. THOMAS PICKETTY'S  WORK HA...

THOMAS PIKETTY'S 10 NEW RULES FOR INVESTING IN THE 21ST CENTURY!

THOMAS PICKETTY'S CAPITAL IN THE TWENTY-FIRST CENTURY HAS OPENED  UP A NEW PARADIGM FOR INVESTMENTS. THOMAS PICKETTY'S  WORK HAS CREATED NEW ECONOMIC FRACTALS FOR UNDERSTANDING THE CHANGING ENVIRONMENT FOR INVESTORS.

 WHAT ARE THE 10 NEW RULES FOR INVESTMENTS FROM 2015- 2099?

1. ALL INVESTMENTS IN THE WORLD WILL BE GOVERNED BY A SIMPLE FACT  THAT R  > G.  WE ARE ENTERING A BRAVE NEW WORLD OF SLOW GROWTH FROM 1% TO 1.5% FOR NEXT 84 YEAR. THIS WILL BENEFIT THE HOLDER OF CAPITAL AND THE AMERICAN 1%. WE SEEK A RETURN OF THE PROPERTY CLASS IN AMERICA.

2. THE GREATEST ADVANTAGE INVESTMENTS FOR THE FUTURE ARE BASED ON R = CAPITAL RATE OF RETURN IS THE PRIME MOVER.  ALL FINANCIAL ASSETS AND REAL ESTATE ASSETS WILL GROW FROM 5% TO 10% PER YEAR. CAPITAL WILL GROW AT MAGICAL RATES AND CREATE WEALTH DYNASTY IN AMERICA.

3. THE BIG LOSERS IN THIS FRACTAL UNIVERSE WILL BE LABOR AND  LABOR RELATED INDUSTRIES THAT WILL GROW AT 1% FOR 84 YEARS. THE FACT IS THAT WAGES AND SALARIES WILL STAGNATE MUCH LONGER IN THIS ENVIRONMENT. THE TRAGEDY OF ADJUNCT PROFESSORS AND INSTRUCTORS IS DIRECT OUTCOME OF THIS NEW WEALTH IDEOLOGY. 

LABOR UNIONS WILL NEED TO REVISE THEIR ROLE WITH NEW DOMINANT CAPITAL DECISION MAKERS.  LABOR RATES OF RETURN CANNOT REALLY BE IMPROVED BY EDUCATION OR TECHNOLOGY. LABOR IS INFERIOR TO CAPITAL.

4. COLLEGE EDUCATION MARKETS WILL BECOME HIGHLY STRATIFIED AND BE DIVIDED INTO FOUR STRATIFIED MARKETS TO REFLECT THE DOMINATION OF GLOBAL CAPITALISM. 

COLLEGE EDUCATION WILL MIRROR HIGH DEGREES OF ECONOMIC INEQUALITY. . THE NEW HIGHER EDUCATION RULES WILL CREATE A NEW ECONOMIC CASTE SYSTEM. THE POLITICAL REALITY IS THAT HIGHER EDUCATION WILL NOT CHANGE THE ECONOMIC INEQUALITY BUT WILL REINFORCE THE IDEAS AND VALUES OF THE 1% IN AMERICAN SOCIETY.

 FIRST, THE ELITE COLLEGE WILL OFFER THE HIGHEST RATES OF RETURN FOR LABOR.  THE COMBINED ENDOWMENT VALUE OF THE TOP COLLEGES IS $400 BILLION AND THE AVERAGE PARENTAL INCOME OF HARVARD COLLEGE STUDENTS IS $450,000.00. COLLEGE SUCCESS IS BASED ON PARENTAL INCOME. THE MOST OUTRAGES TUITION ARE NEW BARRIER OF ENTRY FOR THE LOWER INVESTING CLASSES.

THE UPPER CLASS EDUCATION WILL CREATE GREATER SPHERES OF INFLUENCE AND POWER THROUGH INHERITED WEALTH. THE SAD FACT IS THAT THE NEW MINORITY IS THE MIDDLE CLASS AND WORKING CLASS. THEY WILL BE PRACTICALLY ELIMINATED FROM ATTENDING THESE COLLEGES.

SECOND, THE STATE UNIVERSITIES WILL OFFER A SMALLER RATE OF RETURN FROM JOBS WITH SMALLER LIFETIME SALARIES.  THE PRIME MOVER IS THE STUDENTS LOANS AND ESCALATING TUITION RATES. THE SAD FACT IS THAT THERE IS NO INHERITED WEALTH AND POOR PARENTAL INCOME.

SOME COMMUNITY COLLEGES WILL MAKE THE TRANSITION TO THIS LEVEL OF INVESTMENT RETURN. THE NEW  UPPER MIDDLE CLASS WILL BE SMALLER AND WORK HARDER TO ACHIEVE SMALLER AND SMALLER PIECES OF THE ECONOMIC PIE.

THIRD, GREAT MASS OF COMMUNITY COLLEGES AND PROFIT COLLEGES WILL OFFER THE SMALLEST RATES OF RETURN FOR DOLLARS INVESTED. THE COMMUNITY COLLEGES OFFER LOWER TUITION COSTS IN EXCHANGE FOR LOWER COMPLETION RATES AND GRADUATION RATES OF 7%.

   THE ONLINE COMMUNITY WITH 80% FAILURE RATES WILL BECOME SIMILAR TO MAIL ORDER EDUCATION OF THE 1950'S. THE NEW MIDDLE CLASS WILL DOMINATE THIS CATEGORY.

FOURTH,  THE NEW ECONOMIC OUTCASTS WILL BE THE HIGH SCHOOL GRADUATES WHO WILL BE ELIMINATED FROM HIGHER EDUCATION IN AMERICA. MANY WILL VOLUNTARILY DROP OUT SEEKING LOWER CLASS JOBS.

 THEY DO NOT REALIZE THAT THEY LOWERED THEIR LIFE CHANCES BY 80%. THEY HAVE LOWEST RATES OF INHERITANCE AND PARENTAL INCOME.

 THE LOWER CLASSES WILL GROW LARGER AND WORK IN STAGNANT JOBS FOR THE NEXT 84 YEARS. THEY WILL RECEIVE ON THE JOB TRAINING AND 30 DAY TRAINING PROGRAMS. 

THE HIGH TURNOVER IN LOWER CLASS JOBS WILL BE BASED ON NEW TECHNOLOGIES OF ROBOTICS, ARTIFICIAL INTELLIGENCE, NANO INDUSTRIES AND EFFICIENT TECHNOLOGIES. 

THESE NEW TECHNOLOGIES WILL BE USE TO EXPERIMENT WITH THIS INCOME POPULATION.  THIS POPULATION WILL GROW LARGER AND CREATE GOVERNMENT ENTITLEMENTS FOR LOWER CLASS INCOME REPLACEMENT VIA MINIMUM WAGES, ETC.

5. THE DEVELOPED WORLD WILL GROW FAST THAN THE UNDERDEVELOPED WORLD. THERE WILL BE  HIGHLY STRATIFIED RATES OF RETURN FOR USA, CHINA, JAPAN AND EUROPE. THE THIRD WORLD WILL ACHIEVE MUCH LOWER RATES OF RETURN. THE INVESTMENT WORLD WILL SHUT DOWN FOR THE THIRD WORLD. THE LABOR POOL OFFERS THE LOWEST RATE OF RETURN. 

6. THE RISE OF GAMBLING INDUSTRIES AS A FORM OF SUBSTITUTION FOR CAPITAL  FORMATION AND INVESTMENTS. THE RISE OF CASINOS, LOTTERIES, SWEEPSTAKES, AND GAMES OF CHANCE ARE THE ONLY WAY TO RAISE LARGE AMOUNTS OF CAPITAL IN SHORT TIME FOR THE MASS OF AMERICANS.

  MANY SEEK TO INCREASE THEIR INCOMES FROM GAMBLING ACTIVITIES BUT HAVE 95% FAILURE RATES FOR INVESTED DOLLARS. ONE BUSINESS WAS OFFERING SYNDICATED LOTTERY TICKETS AT 1 CENT A TICKET VS. THE USUAL COST OF $1.00 PER TICKET BUT THEY HAD 100% FAILURE RATES ON EACH PENNY INVESTED IN MEGA-JACKPOTS.

7.  THE BUSINESS CYCLE WILL REFLECT THE LOW GROWTH ENVIRONMENT BY LONGER PERIODS OF DEFLATION AND INFLATION. THE FEDERAL RESERVE CAN ONLY RE-DISTRIBUTE FUNDS AND BE THE LENDER OF LAST RESORT. THE FEDERAL RESERVE MAKES THE RULES FOR THE 1% AND ESSENTIALLY DEFINES THE COST OF MONEY AND INVESTMENT OUTCOMES.

8. THE RISE OF THE LUXURY REAL ESTATE INVESTMENTS WILL GROW AT A STAGGERING RATE AND OFFER INCREDIBLE RATES OF RETURN. THE FAST MOVING REIT SECTOR WILL OUTSTRIP ALL INVESTMENTS DURING INFLATION.

9. THE BEGINNING OF THE CAPITAL TAX ON WEALTHY AMERICANS.  THE POLITICAL REALITY IS THAT CAPITAL TAX WILL REPLACE THE FLAT TAX.  THE CAPITAL TAX WILL EVENTUALLY BE THE POLITICAL DIVIDING POINT BETWEEN REPUBLICANS AND DEMOCRATS. THERE IS NO WAY TO SOLVE AMERICAN WEALTH INEQUALITY WITHOUT SOME TYPE OF CAPITAL TAX.  IT WOULD BE SMARTER TO AGREE TO SMALL CAPITAL TAX EARLIER THAN LATER.

10. THE HIGHEST RETURN PER DOLLAR INVESTED IS TO MARRY INTO WEALTH AND USE INHERITED WEALTH TO RECEIVE INCREDIBLE RATES OF RETURN IN THE INVESTMENT MARKETS. THE SPORTS SYSTEM ENCOURAGES HIGH DROP RATES FROM HIGH SCHOOL AND COLLEGE TO PLAY PROFESSIONAL SPORTS. THE LURE IS HIGH INCOME AND CAPITAL FORMATION OVER PLAYING SPORTS FOR FREE OR ATTENDING THE HIGHLY STACKED AMERICAN HIGHER EDUCATION!