It is expected that tomorrow or Wednesday the Federal Reserve will make a change affecting interest rates in the banking system. This will in turn affect the stock market and also the bond markets. The Mathmatecum is directly affected because it MUST (pursuant to its rules) invest only in US government insured or backed instruments or depository facilities. Since its inception the Mathmatecum now going into its seventh year has at times earned less than 2% per annum and at its highest over 9%! Fortunately, the average has been well over the 2% which was the anticipated average yield for the Mathmatecum. Members have a tremendous advantage when they enroll because their money earns passive income for their lifetime. Once membership closes distributions will start to be made to fewer and fewer people annually. At the same time the Members Monies will increase because of the Mathmatecums design, even though no new members can join.
As one of the presidential candidates is wont to say, ‘here’s the thing’! All of these gyrations in the financial markets did not exist to the extent they do today during my lifetime. Markets were not so free to find stability on their own, many more things were proscribed including mortgage rates on personal homes. When I first became aware of mortgage rates, they were not allowed to exceed 6%. Because of this so much of society was better able to make long term plans. Once this was no longer the case I can remember mortgages going as high as 13%. It would be wonderful if that free a market worked but it has not. Certain parts of life should not be left to the whims of markets for the benefit of the few. The disparity of wealth between the bottom and the top of the economic ladder only works for a few but is due to too great a number of the populace.
Some time back I said that trying to pick the best option among the three financial systems currently in vogue could not work because of human nature. Communism works only in monasteries and convents because the individuals have a unifying belief and goal. Socialism stifles innovation and capitalism creates wealth disparities that can be unconscionable. It was my suggestion that there should be an additional system I call Formicalism, which like in nature has a single aim. That aim should be the care and advancement of people based on merit. Rights and duties should never be economically based.
I was taught that everyone lies and that only numbers don’t lie. Two and two is always four! If you want to get to the right place reduce your problem to numbers and then the simple math will give you your answers. In a Formicalistic system, as in any other, the certainties are still death and taxes. If taxes are the funding source of government, then if there is an income tax – that tax must be a flat tax without fear or favor. Charitable deductions cannot be granted and giving to a Charity is not truly giving if the giver receives something in return.
Time to VOTE is upon us! Do your part and vote – no last-minute excuses! Prepare now for November 5th.
JAI BABA
TTFN
JU
