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The Lords of Finance

Posted by Wes Schaeffer | Aug 16, 2020 12:10:02 AM

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Hello, my friend, and welcome to the 460th episode of the sales podcast. I'm chef with the sales whisper, your host, the quartet of central bankers did in fact succeed in keeping the world economy going, but they were only able to do so by holding us interest rates down and by keeping Germany afloat on borrowed money, it was a system that was bound to come to a crashing end.

Indeed. It held the seeds of its own destruction. Eventually the policy of keeping us interest rates low to shore up the international exchanges precipitated a bubble in the us stock market. By 1927, the fed was torn between two conflicting objectives to keep propping up Europe or to control speculation on wall street.

You tried to do both and achieved neither its attempts to curb speculation were too half-hearted to bring stocks back to earth, but powerful enough to cause a collapse in lending. To Germany driving most of central Europe into depression and setting in train, deflationary forces throughout the rest of the world.

Eventually in the last week of October, 1929, the bubble burst plunging the U S into its own recession. The U S stock market bubble. Thus had a double effect on the way up. It created a squeeze and international credit that drove Germany and other parts of the world into recession. And on the way down, it shook the U S economy.

Skipping ahead, a paragraph after 1929 responsibility for world monetary affairs ended up in the hands of a group of men who understood none of this whose ideas about the economy were at best outmoded. And at worst, plain wrong. So that is from the ending. This is page four, 502, 503 of a book from, I want to say 2004.

And I'll look that up in a second here. Let's call it the Lords of finance or just Lords of finance, the bankers who broke the world. . I've med. Um, very interesting book, quite detailed. When did this come out? Copyright to them? Nine. Oh, okay. That was a little bit older. Um, I read this, um, over the summer, almost finished it on my RV trip back in June.

Mmm. Well, yeah, basically did then I got the Rona and, um, so I've been meaning to get to this it's um, it's a deep book. It gets into looking at, um, you know, the early 19 hundreds, uh, how we emerged from world war one, um, looked at the four major central banks, uh, the U S the UK. Uh, Germany and France, um, the impact of reparations on Germany and the rest of the world, the impact of the gold standard, uh, starts looking at, um, the games that FDR played.

Um, and the reason I wanted to talk, talk about this on the sales podcast. So you understand. A little bit of insight on what the heck's going on right now, the federal reserve and the us treasury three and Congress and DC, um, you know that right. White house, they are playing a lot of games and we think that, um, because they're out of town and they wear a nice suit and we see them on TV.

We think that they know what the heck they're doing, but in this book and I'll look it up and give you the references. But you know, it talks about FDR, literally sitting in bed, uh, his team coming over in the morning, watching him eat breakfast, reading the newspaper, and just randomly, literally pulling numbers out of his butt to set the price of gold for the day.

It's like things you could just. No, they kept it secret back then, but it was kind of an open secret that that's literally what was going on. Um, so I just want you to be, you know, trust, but verify, start digging in and asking questions because. The steps that the federal reserve is taking today, the financial stimulus, the emergency loans, the extended unemployment it's going to impact you.

And I understand your may not be a financial advisor. You may not have a lot of money invested. Your money may be at risk right now. I mean, who knows, uh, but you need to understand what is going on because look. It's okay. It's better to know that a storm is coming and begin to prepare than to just be caught off guard.

You know, I grew up in the South hurricanes just were a part of life, you know, I remember. Tying down trees and filling bathtubs with water and, you know, getting coolers and get ice, get everything ready, uh, boarding up some things sometimes leaving, you know, once I was married, you know, and a wife, a kid, another kid on the way, uh, didn't mess around with that.

I mean, I just got out of Dodge. Um, but compare that to an earthquake. I haven't had any big earthquakes here where I live in Southern California, but, you know, I felt them and, um, you know, there's obviously been big ones. And, you know, there's no warning there. You're just hanging out in boom. Roof's fallen in on your head.

So yeah, much rather face a hurricane or be threatened by him than an earthquake. All right. And that's kind of how I want to approach this. I want you to be prepared. I want you to know what's going on. Uh, cause at Lee, even if it's bad news, at least you've got the news. Okay. And how does this apply to sales?

Well, you know what? Sales is life. And so how does this apply? It's like, Look, if you have bad news to tell a prospect or even a customer, you better get it out of the way. Okay. You need to understand how to position it, how to understand the true needs and wants and desires of your prospects. So you can put yourself in the best light, uh, but you can't lie.

Right. I'm a good customer would rather hear the bad news early. Okay. And deal with it. Then you string them along. Uh, and you know, I've always said our job in sales is to sort sift and separate. Our number one job in sales is to prospect. And when we prospect, we are disqualifying the prospect. And so I'd rather hear no early than do a sign, you know, song and dance and wine and dine.

For days and weeks and months on end only to then address the elephant in the room that we knew probably was unavoidable was a true objection. You know, an obstacle that could not be removed. So, you know, you've got to dig in, you got to look at what's really going on face it. And deal with it. So if nothing else, you know, you get out of this.

I hope you understand that the, the experts really are not very good quite often. You know, the definition of an expert is they come from out of town, they carry a briefcase. So we've got plenty of those around. Okay. So who are you turning to? Who are you relying on? Uh, you know, and the reality is you can't keep up on everything.

You do have to pick and choose, you know, who you follow. Who's going to give you the cliff notes. Um, you know, I get it, uh, but don't hold those people up on a pedestal. Okay. Question them, dig in, uh, make sure they're staying on track and make sure they're giving you the facts. Not an opinion. Okay. You're the one that has to form your opinion based on the facts.

So make sure you're dealing with people that are shooting straight with you. Okay. But, um, you know, spend some time going through this book against a huge book, 500 plus pages, um, but some amazing stories about. Golly, international finance and war. Uh, and how interesting little, um, issues with people, little preferences, snide remarks, vanity, uh, literally shifted and tilted the world on its axis.

One dude, like to collect paintings, you know, other guy was just too busy dating and. Yeah, a couple of guys were sick. I mean, take, take months off at a time. Imagine that you imagine taking two to six months off every gear to handle. I dunno, tuberculosis. I mean, that's what the leader of the federal reserve was doing, right.

That the leader of, of the, uh, UK reserve, you know, would have nervous breakdowns. And it's not like you can text and get a quick answer. Right. These guys would literally be like almost unfundable. I mean, you'd have to send, you know, Telegraph to somewhere and get on a horse, you know, or you know, a car, uh, but a rickety car on rickety roads to try to get a message.

I mean, just crazy. Wow, the world is crumbling down. That's what was going on so crazy times. Okay. So that's also why I say you got to toughen up. Okay. These are unprecedented times, whatever. Okay. Whatever. We had a bad, bad flu hundred thousand people dying in 1968, 69, millions, tens of millions dying around the world and the Spanish flu 1917, 1918.

Um, you know, the great depression, Korean war. I mean, what were one while were two Korean war, Vietnam war, good grief. Almost 20 years now in the middle East, you know, the great recession of Oh eight. We've had a lot of bad times. And look, I do believe. We've got a hard rain coming. When I moved to Southern California in December of Oh four, you know, moving in from, from the outside, looking in, it was obvious the emperor had no clothes.

So we rented and I was correct. Um, the, the direction in the severity of the collapse, I was wrong on my timing. It took three plus years for it to really happen. Uh, there's an old saying that the market can stay irrational longer than you can stay solvent. Okay. So let's say I had shorted the market. Um, I'm like, it should be going down.

It should be going down. The fundamentals are all wrong and there's no way that it should be going up. There's always something you don't know. Okay. But I didn't, I just rented, rented my house. After five years, he got foreclosed on, we moved in another house and it on a short sale at literally 40 ish percent off from its high.

Okay. Now, you know, So we moved into this house. So five, 10 it's like February, 2010. We closed on it early, like January of 2011. So we've owned it now nine and a half years. Um, and it's appreciated tremendously. So the timing was right now, as I look at this crazy market, I think it's even crazier. There's a lot of federal reserve intervention going on, probably bigger than what they were dealing with in world war one, world war two, you know, uh, era.

So you need to have at least a cursory knowledge of this stuff. Okay. So you can just be prepared. So with that, Let's get you prepared. So the introduction kicks off in August 15th, 1931. As I mentioned, the governor of the bank of England has been in disposed as a result of the exceptional strain to which he has been subjected in recently months.

So he had said Canada for months. So the one remaining guy of the four and, you know, because kind of skipped ahead, then they go back and he tells a story. The one remaining guy with, uh, some history, some intelligence and experience. Um, he is having a breakdown while the world. Is breaking down. And so they, they go into some of the specific, you know, this guy, he would, he would travel under a faulty name, you know, a made up name.

I talked to about climb over the boat, exited with a rope ladder, one time to avoid the press. Um, you know, this guy, he didn't want to talk to anybody and he's the most experienced central banker in the world. So as all of this is collapsing, right? Production in almost every country had collapsed in the two worst hit the United States and Germany had fallen 40% factories throughout the industrialized world car plants of Detroit, the steel mills of the roar from the silk mills of lions, the ship yards of Tyneside.

I said that right. Were shuttered or working at a fraction of capacity. It sounds like right now during COVID, uh, businesses, that cut prices by 25% in the two years since the slump had begun. Uh, but heck I'm seeing prices go up. A friend of mine is in the car business and, um, I talked to him. I don't know, a month ago, roughly.

And he said one of his dealerships normally has 350 units on hand. They were down to 175, I think he said, um, and this month August expected them to have like, as little as 75 in September. So production is down, but. It's down too much. Right. And there's still enough demand that it's actually driving prices up.

So, you know, cause I'm looking at a new truck, even a used truck. I don't, I usually don't buy new, but um, everything is up, you know, Jeeps, diesel trucks, anything like that, that I'm interested in is way up. So it's, I mean, it's almost like the Jimmy Carter stagflation, you know, of the late seventies. It's just, you know, when you have stag.

Stagnant economy. You shouldn't also have inflation when you have big employment and big interest rates. I mean, it's like, what is going on? Oh, you gotta, you gotta dig in, you know, but yeah, I understand like what was going on? Right? So the United States, the world's largest economy, some 8 million men and women close to 15% of the labor force were out of work.

And that would go up before the end of the decade. Uh, but this was only in the first two years. And remember the U S was much smaller, less than half the size that we are now. Um, another two now, half a million men in Britain, 5 million in Germany, a blah France though, was kind of protected and we'll get into that later.

Uh, but just the way things had worked out a little bit of luck, a little bit of, um, Of foresight, but I'm talking about gangs of unemployed youths. Um, encampments in central Park's own appointment led to violence in revolt United States. Food riots broke out in Arkansas, Oklahoma, and across the central and South Western States in Britain.

The miners went out on strike. Followed by the cotton mill workers and the weavers Berlin was almost in a state of civil war during the elections of September, 1930, the Nazis playing on the fears and frustrations of the unemployed and blaming everyone else. The allies, the communists, and the Jews for the misery of Germany gained close to six and a half million votes.

They became the second largest parliamentary party after the social Democrats. Meanwhile, on the streets, Nazi and communist gangs, clashed daily sounds kind of like maybe BLM and Antifa and. I don't know the Bubba's the Americans let's just call me Americans. All right. Uh, there were coups in Portugal, Brazil, Argentina, Peru, and Spain.

Then bank started collapsing December, 1930, the bank of the United States, which despite its name was a private bank. Weren't the largest single bank failure in us history. Didn't we? And we just have that in Oh eight Oh nine, too. Big to fail. They let it fail even frozen 200 million in depositors' fonts.

And they, I was looking at the back of the books. It basically, I think we have to multiply it by like 200 to understand the numbers. Cause like 200 million you're like, yeah, big deal. But uh, you know, 200 million. So three, six zeros times 200, right. 40 billion. Dollar set right now it's in a bank of $40 billion just going under right now.

That's what happened. So that was just one of the beginnings. Um, May, 1930, one of the biggest bank in Austria owned by the Rothschilds 250 million in assets closed at stores. So what would that be? 50 billion. On June 20th, president Harbor, Herbert Hoover announced a one year moratorium on all payments of debts and reparations stemming from the war.

Don't we have people in Congress, even Trump talking about, you know, don't pay your rent, don't pay student loans. I mean, all kind of stuff. Kind of similar, huh? The third largest bank in Germany. Foundered precipitating a run on the whole German banking system and a tidal wave of capital out of the country.

So they're on the gold standard, right? So as money leaves and, and. The country has to increase its interest rates to try to attract the money back. Uh, but that increases the debt. It is the ability to repay it, right. And then internally inside of the country, when you have high interest rates, it's hard or to borrow.

So it's hard to take risks, you know, to, to invest in infrastructure or launch a new business. So it's. It just gets ugly when these things start happening. Um, so, uh, declared a bank holiday, uh, restricted how much German citizens could take from their banks, just like it happened, you know, in the U S previously, um, spread to the city of London, uh, which had been lending to Germany.

So they found some of their claims now, frozen. Crazy. The bank of England was forced to borrow $650 million from banks and France, the United States to prevent its gold reserves from being completely depleted. Because you know, again, back then, if you lost your gold, you basically didn't, you had no right.

No ability to issue any money. So because you're when you're on the gold standard, you going to have a certain percentage of your money backed by gold. Okay. And so, um, they were in a tight bond and it just kept getting worse. Okay. The, ultimately what we learned from all of this is that despite the best intentions of the government and these bankers and everyone else, they just made it worse.

They just made it worse. And we see that all the time. So. We see it right now, going on. I promise you the actions, you know, the law of unintended consequences, the actions, the steps that are so called leaders in government are taking, are going to make things worse. They're making it worse with COVID. Um, I mean, literally New York, New Jersey, the governors literally killed their elderly people.

I think they should be prosecuted, but maybe that's a topic for another episode, but, um, Look, the government is not your friend. The government is not the solution. The government is the problem, but I digress. Um, you know, John Maynard Keynes, he starts making a name for himself. He's talking to folks in Moscow.

You know, Moscow's jumping on this, right? They're saying, uh, this is the last a culminating crisis of capitalism. And in our existing order of society will not survive it. So that's, Kane's quoting sources in Moscow. Um, But, you know, another guy, the historian Arnold Toynbee, basically. Yeah, I was talking about in 1931, men and women all over the world were seriously contemplating.

And frankly, discussing the possibility that the Western system of society might break it down and cease to work. Alright. So this is 90 years ago, 81 years ago, we're having some of the same discussions right now. Aren't we. We're not going to survive. The America's not going to survive. The world's coming to an end and the world, as you know, it may come to an end.

There may be some big changes and things you've got to adapt to, but we'll keep bumping along. Not without a lot of pain. Okay. And the entire thirties, 1930s were just brutal. It literally took a world war to pull our economies out of it. And. You know, I think some of these guys wanted it. I know Germany was egged into the first world war and they were probably egged into the second.

Eisenhower. Warner's about the vast military industrial complex. And that's been going on a long time. Presidents want to be wartime presidents. I don't know if the ego or whatever, prove that they're macho. Um, but you know, the more guys I've gotten to know in. Special operators, you know, spec ops, Navy seal.

I do the swim every January and that's on now help West swim.com. If you want to donate we're to swim on January 17th, I think it is 2021. It's always right in the middle of February, middle of January. Cause they want it to be as cold as possible. But the market to know these guys, you know, They're elite warriors, the cream of the top, right?

The cream of the cream. And as these guys get some distance behind them after their careers, you know, they want peace. They they've lived it. Right. They've lived the. Even doored, the atrocities that the collateral damage, the pain, the suffering that war brings on. And they're like, man, I don't want that anymore.

So interesting dichotomy there. Right. But all these presidents wouldn't be wartime presidents, but you know, one more, one more little quote here from the same section. Um, You know, Montague. So he's the French dude, right? Montagu Norman had written just a few months before to his counterparts. I'm sorry.

He's the British guy. So he's writing it to France. Uh, more, more Ray, I think Clement Moray, he says, unless drastic measures are taken to save it. The capitalist system throughout the civilized world will be wrecked within a year. And he says, I should like this prediction to be filed for future reference.

So, you know, they're wanting to hedge their bats. They want it to be known as being a prescient, right. Being able to tell the future. But again, it's all, it's all doom and gloom. The experts did not know what to do. The experts did not know what was happening. The experts did not know what would happen.

Sound familiar. So, yeah, but whereas we're more modern now we have computers, everything. Yes. Give me a break. The human brain, the human psyche, the human ego, the human vanity is not true changed. Okay. Now look, apply this to your business. Apply this to sales, apply this to negotiation. You think the other person is, you know, so erudite so smart.

They know more than you, what, like whatever. And in your niche, you should be adding value. You do them. If not, they don't need you. Okay. They need you and Andy, you're a good person. I have a good solution than, you know, more than them about what it is you're discussing. So stand tall. Don't let these people BS you don't let them pull the wool over your eyes.

Okay. Don't let them out. Posture you. They could literally be FDR sitting in bed, eating his poached eggs or whatever. I forget what he, I think it was poached eggs, you know, and just pulling numbers out of his butt as one of the price of gold to be that day. So don't think that you don't know what you're talking about.

Don't think that you can't charge good money for what it is that you do. Okay, these guys have these so called experts. The world was, was hanging on their, every word. They didn't know what was happening. They were having nervous breakdowns and leaving at the pinnacle at the exact moment they were needed.

They were leaving. And then, you know, later on the book, I don't know if I have time to get into it, but they talked about just the petty squabbles, just guys wanting to get back at each other and literally setting the world on fire. Because of a personal squabble, you know, so play your cards close to the Fest.

Don't, don't let petty things like that. Derail big deals. Okay. Seek to find a good solution for everyone and your life, your sales, your business, your profitability will thank you for it. All right. So skipping ahead, a few pages, um, the author talks about, you know, what is a central bank? What was its role back then?

What is it right now? And he admits central banks are mysterious institutions, the full details of their inner workings. So arcane that very few outsiders even economists fully understand them, boil down to its essential. The central bank is a bank that has been granted and monopoly over the issuance of currency.

Okay. And that is true even today. Do you know what a central bank is? Can you explain it? Like I'm five, right? Like we look at on Reddit, E L I five, explain it like I'm five. Most people cannot. And yet they're manipulating interest rates. Uh, as I record this right now, uh, Fannie Mae and Freddie Mac are talking about like a 0.5 and a 0.6% fee on refinancing because they are uncertain about, um, You know, the viability of loans moving forward.

Uh, and they're not the federal bank. Okay. But, um, you need to understand how all these big institutions interact with one another, because the fed will set the. Lending rates okay. Between banks and then Freddie and Fannie are obviously, uh, insuring a big mortgage, um, security packing, these mortgages, turning them into mortgage backed securities.

And it's w we're literally getting back to what happened in. 2008. Okay. There's just, there's weird things. So again, I want you, I'm going through this, so you understand can start to piece some things together, do your own research. You know, I'm not an economist. I used to be a financial guy many years ago.

I still have an interest in it. Uh, but I'm not an expert on any of this as well. Right. I'm not a professor. Uh, but I do dig into it. It has, uh, influenced how I've purchased my own home, what I've done with it over the years. Um, how I've looked at golden silver when I'm done with precious metals, uh, now starting to get into cryptocurrencies, I'm still into some real estate.

Um, but you need to understand how these big levers okay. And look at. Golly. I was just reading today as well, REI, right? The, um, the real estate or real estate, the, uh, the outdoor clothing and whatever company, they created an eight acre campus and they're not even moving into it. Like it's brand new, ready to move into.

And they're like, Nope, everybody's working for me home. So you're going to see big corporate, um, plays going on. Companies are leaving Manhattan, um, individuals early. I know two couples that or Mo one just move. And I had had breakfast with him last week in backdrop. They moved from right here in Marietta to Bastrop, Texas, and others moving from right here.

They just had a baby, a younger couple. And making good money. They're leaving right here in Temecula to go to Leander, which is Northwest of Austin. Backdrop is South East of Austin. So Joe Rogan just moved. Um, so when you see people with means leaving, start paying attention. Okay. And, and you see companies letting their people work from home.

I think Twitter said, Hey, you can work from home forever. Uh, I think Google and Apple are letting people stay home until like early 20, 21, but there's a huge shift in commercial real estate. Well, what. Uh, where do, where do big entities, you know, like the Harvard endowment with $50 billion or whatever they have, where do they put their money?

Right. Quite often in big, you know, REITs, real estate investment trusts. What are those invest in eight acre campuses and an 80 story skyscrapers. Right? And if these, if these things are 30 and 50 and 80% and a hundred percent vacant, Where are they going to make their money? What would they ask the federal reserve to do what the federal reserve start buying real estate?

They're buying bonds or buying stocks? Like what in the hell is going on? Is that even legal? I don't think it is, but do you know this stuff? Okay. So there were issues with this going on. In 1931 there's issues going on with it right now today. And look, I was talking about cryptocurrency and everybody knows Bitcoin, but there's, there's a whole lot to that space.

I probably need to have like an expert come on the podcast and, um, explain this in more detail. But because the central banks have the ability to issue currency, they literally created. From nothing. Okay. It's why it's called Fiat currency by Fiat by declaration. It just is. And at least back in the day it was physical paper, uh, and it was backed by gold.

Uh, and there were limits and, you know, look there's pros and cons to everything. Personally. I think it was good to have something tangible backing our currency. Gold and silver have been money since biblical times. But now the federal reserve doesn't even have to go through the expense of making coins and paper.

They just it's a computer program and they just push ones and zeros around well ones with a whole lot of zeros, trillions of dollars, literally out of nothing. You know, you look at your, your pull out, any money you have in your wallet, you know, it says backed by the full faith and credit of the United States government.

Well, I don't have a lot of faith. In the credit of United States, but you know, everybody plays this game and then everybody's shocked when it all comes crumbling down. I mean, I'm shocked. It's lasted this long. There's an old saying in investing that the markets can stay irrational longer than you can stay solvent.

You can, you can be right the fundamentals, uh, and still be wrong on the timing. And it'll be dry. Right? So I has happened to many, many smart people. Uh, but with these cryptocurrencies, they, they challenge a federal government. You know, the treasury, the federal reserves of different nations. It challenges their authority to issue currency.

And they are not going to fall for that. They're not going to go down without a fight, any of these governments. Okay. Uh, I've seen them. I've been investing in gold since at least 2002, maybe 2001. Um, I think it was 2002. Um, I was buying gold at my local pawn shop for three 50 announced cash. Right now it's over 2000, um, uh, follow the markets.

It's so heavily manipulated by governments because it's real money. It's real value. Okay. And when governor ones can just interject some code on a computer screen and poof, they have money. It's. It's immoral. Okay. Um, but I, I digress, but you know, understanding how all this comes into fruition. I mean, this would, you know, it could be a 10 hour podcast if I went through, you know, every single thing, but yeah.

The purpose of creating these central banks. Okay. And I think they came about in 1913. If I remember correctly, somewhere in that timeframe, maybe a little bit after that, um, But they were created with the idea of smoothing out business cycles, smoothing out big peaks and valleys in, in, uh, stock markets and in runs on banks, you know, cause they call it the great depression.

Well that means there were other depressions, right? Because it needed the qualifier of great. And so they think, Oh valleys, all these bad depressions, you know, we'll have the government. So once the government gets involved, then you have the great. Depression. It's not a coincidence. You, yeah. You have people that, you know, one guy leading the bank has to Burkey Lotus leaves for months.

Another guy, you know, leading one of the federal banks, um, you know, in, in Europe, in, uh, in England, you know, has nervous breakdowns. The other guy starts getting in bed with Hitler. The other guy has a chip on his shoulder and plays games against Britain, you know, from France. So. You get these guys manipulating things, then you have the great depression.

So I'm all for smoothing things out of possible to minimize people's pain, uh, to have, uh, a fluid, smooth running economy. Uh, but when you get too much power in the hands of a few people, they cannot calculate everything. And you know, and back then the population of the world was a fraction of what it is now.

And so there's far more ramifications for these people to get it wrong and they will, you know, but like he said, all of these, um, different patterns, you know, All of these episodes is that each of these episodes was deferred in detail. Some originated in the stock market, some in the credit markets, some in the foreign exchange market, occasionally even in the world of commodities, sometimes they affected a single country, sometimes a group of countries, very occasionally the whole world, all however, shared a common pattern and eerily similar cycle from greed to fear.

Okay. That's what caused issues in. All the other depressions and that is humans have not changed in 80 or 90 or a hundred years. Greed to fear financial crises would generally begin innocently enough with a surge of healthy optimism among investors. Right now, everyone's happy about the stock market.

The NASDAQ's at all time highs, a real estate is booming. Um, I know a lot of realtors. You know, they're having to put in multiple offers, they're going above asking price. Uh, that couple I talked about is moving to Leander. They didn't even see their home. The husband flew out, they put in an offer cause you know, they've got a new baby and um, they don't have time.

Cause houses are getting snatched up. If you want to get a patrol for it and a better be a above asking. Okay. So. It's just crazy. Right? So healthy misma among investors over time, reinforced by cavalier attitudes to risk among bankers. So we just thought things were cavalier. When you look at, uh, the, the.com bubble though, the Enron and WorldCom of, of 99, 2000, the debauchery, the.

The theft. Okay. Then things leading up to the Oh eight crisis, you know, too big to fail. Yeah. Whatever. So you think there were some bankers, we had cavalier attitudes to risk. And again, you need to understand this, to defend yourself, to position yourself, to take advantage of the chaos that is coming. Okay.

What are the similarities? You know, it's hard to predict the future, but you know that there are a lot of clues. History leaves clues. If you're paying attention, this optimism would transform itself into overconfidence occasionally even into a mania. That's the duh. Okay. Look at Tesla. Look at Tesla, just had a four or five to one stock split.

It's gone up. I think four fold this year. Something just crazy. It's like the most valuable car company in the world. I have a Tesla. I love it. I agree. They're on the right path, but man, this kind of growth, Apple's making money despite stagnant earnings for the last five years, the feds buying 25 and a half million dollars of their bonds.

Right now, Apple has like $192 billion in cash. And yet we through the federal reserve are buying their bonds. What in the hell? Go look, go look up the tulip bulb mania. Okay. You want to talk about them? It's not even a rabbit hole. I mean, it really happened. People were mortgaging their homes on futures of getting a plant, a little, a bulb, a L a seedling that would grow into a flower.

Unbelievable. In a way you're no better. Now, even though that was hundreds of years ago, the greed and fear inside of humans has not changed. You need to understand that in all of your dealings with people. Okay. The accompany boom would go on for much longer than anyone expected. Like I said, I moved into a movie or Southern California, December of Oh four.

I'm looking around I'm like, these houses are crazy. We moved into a tract home. It was a big home over 4,000 square feet, but it was a track home. Almost no yard. Right up close to your neighbor side by side. Yeah. We were at the beginning of a col-de-sac really a double culdesac. So that was nice. Um, but it was a track home.

No HOA, just no, nothing, nothing fancy. No, no, no, no granite countertops or, you know, Oak, you know, library, book, office, nothing, nothing just big. And they were saying that house. Everybody that lived there said prices have doubled in the last three years or four years, whatever. And it was worth like supposedly $700,000.

And my wife's like, should we, why should we buy them? Like, okay, here, here's my thinking on this. Right? I said, look, if, if things continue down this path, then three years from now, this house will be worth $1.4 million, right? Double in three years, going to double again. And I'm like, no way, no way. Somewhere between now and three years, somewhere between now and another doubling.

Things are going to collapse. So we rent it and sure enough, it took about so, yeah, so that was early Oh five. When we moved into the, how we moved and had to stay with her dad for about a month before it was ready. So January of Oh five, we moved in five years later, the dude got foreclosed. Um, cause the bubble had burst.

So we had to move out in 2012. Uh, no, I'm sorry. Oh, five to 2010. You know, but, um, so it took three years. So early Oh five to the middle of Oh eight, it took three and a half years for everything to collapse. So my timing was off a little bit, but the direction was correct. Uh, but again, it lasted longer than anyone expected.

I'm like, no, wait, can this keep going? It was so obvious. It was so corrupt. So impossible, you know, waiters at Applebee's had. Multiple houses on stated income, you know, like what? So, alright then would come a sudden shock a bankruptcy, a surprisingly large loss, a financial scandal involving fraud. Right.

We've seen that we saw it in Oh eight.

Who's going to break right now. You got so many bankruptcies happening in, so can't even list them all hundreds this year, big companies like hundred million dollar plus companies, big and thousands of others. So, yeah, but none of those are broken the back yet. But let's see, let's see what, who cracks. So again, whatever the event, it would provoke a sudden and dramatic shift in sentiment.

Panic would ensue. Now we saw this in March when covert hit and everybody's freaking out and it got a locked down, blah, blah, blah. And then things recovered quickly. Uh, that was an induced panic by the government. Um, But once people realize that the fed can't keep printing trillions of dollars even now, right?

Trump and Congress, they can't, they can't agree. Trump says, all right, give him some more money Newsome right now saying we don't have the money to give. So people aren't getting those $600 a week checks. So. How long can that last people don't get those big bonuses and they can't go get another job.

Eventually people realize, all right, something's happening. And they okay. They are irrationally exuberant and they are irrationally. Um, An exuberant, whatever that word would be. Right? So as investors, we're forced to liquidate into a falling market losses would Mount banks would cut back their loans and frightened depositers would start pulling their money out of banks.

So yeah, this didn't happen many times, many times in the 18 hundreds, you know, it was happening again in the 19 hundreds, the federal reserve is supposed to help fix that. It doesn't fix it only made it worse. Cause you got just a handful people, you know, we're all frail. Human beings with limited knowledge, they screwed it up and they made it worse.

So, you know, the federal reserve is supposed to forestall panics and other financial crises supposed to help establish trust in banks. How well do they do? Yeah, for some, the jury's still out 80 years later, it was like, it shouldn't be, it was terrible. Terrible or, you know what I'm gonna do the math 90 years later now.

So anyway, let's, um, let's go into, you know, I'll pull out a couple of, of pieces, like I said, it's, um, it's a 500 page book. I'm on page 16 so far. So I'm not going to go through everything with you. I don't do that any way on these books, but snippet, you know, if, if you're an historian, um, and you know, you like read these kind of things and you're squared away in business, you know, you can get it Lords of finance.

Uh, it's a good read. It takes awhile. Uh, cause I would, I would look things up. I'm a bit of a history buff. I like looking up the people, you know, watched some videos and whatnot, but you know, only do that. If you are. Like I said in the story and you need a break, get off the interwebs and dig into this a bit, otherwise just understand the, the angles here that we're talking about and the implications.

Okay. And it can happen again and it, it can happen in the United States. It can happen at, you know, these, these advanced societies. And I think. Things are so crazy. They can be hidden for a good bit longer, uh, cause there's so much at stake. Um, but Hey, Rome fell, you know, the sun now sets on the British empire, um, and the U S can and will lose its its dominance.

At one point, you know, talk about Russia and Russian bots and Russian meddling in the, our elections. China's the real threat. Those guys have a long, a vision. They have a long history. Okay. We're, we're dealing in, in quarters and months, they're dealing in generations, Fastly different approach. So that's who we need to be keeping an eye on.

Uh, you know, cause these guys, uh, I kind of skipped over it, but you know, they thought war was impossible. Back then even while we're one, because of the tight tie, like Lloyd's of London was literally insuring some of the German warships and they were saying that they would be honor bound to pay insurance claims.

If they went to war and English summaries and English war ships sank. German war ships and they're like, Oh yeah, we're closely tied in business. Well, war is impossible. Yeah. How'd that work out? Now as a shooting war, impossible with us and China, you know, the argument can be made, you know, the mutual assured destruction, mad.

Um, we all have nuclear weapons. We can destroy the earth 10 or 20 or 30 times over. So, all right. Are we really going to go toe to toe with them? Probably not. Uh, but. Cyber warfare is legit space warfare taken out each other, satellites, hurting our communication abilities, uh, hitting our power grids, just making us suffer.

Okay. And while we're suffering, uh, trying to rebuild our infrastructure that can make moves in Africa, South America secure, uh, Access to precious metals. Uh, you know, it could be things for nuclear weapons. It could be things for just business, right? Th there's unique. Um, Minerals and whatnot that, that are needed for your iPhone for medicine.

So, you know, we saw our exposure with COVID with so much of our medicine coming from India, you know, who's even an ally, but still, Hey, when, when times are tough, you're going to circle the wagons. You're going to take care of your own. And he was like, Hey, we're not shipping your medicines. We figure this stuff out.

You know, I think we had to put some pressure on him, but now we're talking about. Rebuilding some things here back in America. So that's the kind of war. That's the kind of game that's being played right now at the global level. And, um, and again, you don't need to be an expert on this, but you need to be aware.

Okay. Let some of the noise get filtered away and look deeper than some of these superficial arguments and pokes that the left and the right are thrown at each other. There's more to it than that. Okay. And, you know, Hey, by on his blood, in the street, even if that blood is yours, you may have taken a hit this, uh, this year.

Okay. Sorry. But Hey. You're still up. You're still surviving. You're still swinging. You're still competing. So figure out where the next opportunity is and go after it hard. All right. So I just found that segment page 21, you know, talking about the Lloyd's of London, whatnot, but back to the book, you know, it says it was no wonder that during a series of lectures on the great illusion delivered at Cambridge and the Sorbonne Lord Esher would declare that quote, new economic factors clearly prove the inanity.

Of war and that the commercial disaster financial ruin and individual suffering of a European war would be so great as to make it unthinkable Lord Esher and Angele angel angle. We're right about the meager benefits and the high cost of war, but trusting too much in the rationality of nations and seduced by the extraordinary economic achievements of the era.

A period, the French would later. So evocatively call Isabelle at puck. They totally misjudged the likelihood that a war involving all the major European powers would break out. So this was before world war one. So now we're dealing with over a hundred years ago and we have the same issues right now.

It's just, like I said, history, history does repeat itself. Even if it doesn't, it leaves clues and it certainly rhymes. Okay. All right. So turning to the introduction of Montagu Norman. So yeah, I realize 1914, you know, England is the global power. The world reserve currency is the British pound. Um, and you know, they can do no wrong, uh, Lloyd's of London and London in general, you know, as the financial center of the world.

Um, and this guy is in charge of their federal reserve, their, you know, their, their, their bank, right. So this guy, no, he had been talking about his history. I had been a sickly dude. Um, he, he kind of, I found his bearing, if you will, in the Boer war, 1899, he joined the military, the militia in 1894. Um, and something, you know, he ends up going down to South Africa.

Um, Big war, a couple hundred thousand people. Uh, he was awarded the distinguished service order. Uh, so he, you know, he, he blossomed in that environment. Um, but he was still sick. Okay. Now, um, when he was. On another venture. Um, someone recommended that he meet with this Swiss psychiatrist, dr. Carl Young. So again, another expert Ryan, how much youngian, um, you know, uh, strategy, philosophy, uh, science, um, do people banter around even to this day?

I mean, he was a smart man, of course, but they. He ran all these tests on Norman says that he's suffering from general paralysis of the insane GPI, a term, then use to describe the onset of mental illness associated with tertiary, syphilis, and then who he would be dead in a few months. So while some of the symptoms of GPI were in fact, similar to those associated with manic depression, this was an egregious misdiagnosis, but it profoundly shakes Norman.

And they say for him, it was the beginning of a lifelong history of experimenting with esoteric religions and spiritual practices. So this guy is dabbling with everything in anything, dealing with spiritualism and whatever, while he's trying to wrap his brain around and is in his heart and his energy and focus around these big financial issues.

That's why you see. But, you know, by the time 1931 rolls around, he can't handle it and he bugs out. So, you know, the Clinton campaign tried to get us to believe back in 1992, that character didn't matter. And they were lying. Manipulative sacks of dog poop, shall we say character does matter? So somebody upbringing matters their, their faith, their religion, their lack thereof matters.

Do you need to dig in when you're dealing with anything? Get to know the other person as much as you can, that will shape your negotiations, your communication. Uh, it'll give you insight into their styles of communication, how they prefer to talk about things. Are they task oriented, goal oriented people oriented, or are they a transactional buyer?

They are relationship buyer. So understanding if you knew something, if you, they serve in the military, they serve in the war, they were awarded, um, you know, citations and metals. If you knew, you know, look them up on Facebook or wherever, do they make posts about their faith or the atheist, all that tells you something, you know, I had Jeffrey Gitomer on and, um, you know, we talk about cold calling.

He says he calls him a gold calling. Cause there is no more cold calling because you can look, look up information, find background information on somebody. So it's not ever really a truly a cold call, you know, something about them. Okay. But understanding how. Our so called leaders, people of prominence understanding their background and what has influenced them will give you great insight as to what direction you think things are going in the economy and your business and the marketplace in your industry with your competitors.

Okay. So pay attention to this stuff. Alright. So war is beginning. All these nations, you know, London has money. All over the world, uh, from about China, Denmark, uh, Brazil, uh, Romania, Stockholm, Montreal, Vancouver, uh, Austria. So there all this money floating around all these big loans, right. And everyone's worried, Hey, if we start closing stock exchanges, if, if gold deposits are withdrawn out of fear, um, Then it severely hampers, the issuance of currency, right.

And everything comes to a grinding halt. So monster you Norman. Right? He shows up, he's seeing all this stuff going on. There was this kind of under the radar backdoor dealings with France that Britain would, would help them in case of a war, but nobody really knew about it. Um, but. As all this was unfolding.

Right? So, so Thursday, July 30th. Yeah. So at 10 o'clock on Friday morning, I notice was posted on the door of the stock exchange, announcing that it was to be closed until further notice for the first time, since its founding in 1773. So (120) 700-3700 41 years. So things are not good. Um, banks around the city began refusing to pay out gold sovereigns to customers.

Now there's a run on gold, right? It's billion reserves fell from over $130 million on Wednesday, July 29th to less than $50 million on Saturday, August 1st forced the bank to raise, raise their interest rates to an unprecedented tenant percent. You need to understand how this works? What does it mean if a nation has a strong currency or does it mean it has a weak currency?

What does it mean? You know, if, if you have your money in savings, 10% sounds fantastic. But if there is stagflation, if there is stagnation, if there is a deflation. People are getting laid off. Um, what good is it to have, you know, money saved and the economy and ruin. So there's all these nuances and subtleties that go on.

Um, like I mentioned earlier, you know, the Fannie Mae and Freddie Mac talking about adding half of, you know, five or six basis, point 50 or 60 basis points, right? 50 a half a percent, you know, 0.6%. So you do it half a percent, right. And a $400,000 loan. That's two grand. Uh, so may not seem like a lot, but people, you know, they're funny, right?

You see deals fall apart for $5. So what's going to happen to the real estate market with this. So, and again, things go up. A crazy optimism and then a panic, right. Then something breaks, you know, maybe no, I think about it. Maybe that's the break, you know, maybe we'll look back a week or two from now a year from now and go.

Yep. When Fannie Mae and Freddie Mac made that announcement on Thursday, August 13th, 2020, that was the beginning of the end. We shall see, but they're raising their rates to 10%. Um, as Lloyd George, the chancellor of the X, X check core. Second, I don't know, have to look that up, but over in the bank of England, right?

Would later remark financier's in a fright, do not make a picture. So look back@enronandworldcomandthe.com implosion look at, um, you know, Wells Fargo and all those crazy banks in a wait Oh nine, 2010. Lehman brothers. So, but also realize how much our politicians get from these financeers. You know, everybody wants to see president Trump's tax returns.

I wouldn't mind seeing them. I don't care either way, but yeah, you know, here you have a, multibillionaire losing money to become president. But I'm concerned about these politicians, these congressmen and senators, they make whatever 100 2,500 5,000 $70,000 a year. And they'd leave as multi-millionaires.

What the hell is going on. That's the big money that, what do you think lobbyists do? They hang out in the lobby. They corner these guys and gals. They take them to nice dinners. They give them stock tips and in return they get legislation passed that favors them. Okay, so you need to understand how big finance works.

Okay. Um, but looking back 106 years, some things just haven't changed. Have they? All right, so you can't see this, but took a little break, got a beer, replied to a message in my Facebook inbox, I'm launching a little. Program, starting September 1st small group to help people launch. If you've got an idea, you have a hundred ideas, but you're not able to monetize them.

If you want to test the waters, if you want to bring that to fruition and start getting paid, um, Shoot a note to me before, um, September 1st. And I'll see if there's still openings. Um, it's going to be super affordable. Um, I'll let you make payments. And the idea is that you start making money before you finish pain.

So the course literally costs you nothing cause you're making money as you go. Okay. But, um, by literally just took a break, confirm somebody, boom, send on the length. They paid no phone calls, no high pressure. Uh, no tactics, no gimmicks, nothing cheesy. So when you understand what's going on in the world, when you enter the conversation going on in the mind of the prospects, you can make money.

Even in crazy economies like this, maybe, especially in crazy economies like this. Okay. So how well do you know people and how well do you know yourself? So, you know, looking back at the book, you've got the German, um, all more shocked. So this guy has got a stick up his button, but. He will become known for his boundless ambition and ferocious will to succeed.

Do you know some people like that, you know, prospects like this, do you know, decision makers like this? Maybe the person with the title is kind of chill, but somebody under them has this ambition and ferociousness. How do you leverage that? How do you negotiate with that person? How do you get them on your side?

How do you isolate them? If you need to lots of things you need to understand. Okay. But this guy shocked he's he, he comes in and out of the bank. Uh, he ends up becoming buddies, buddy, buddy with Hitler and the third Reich. Um, but. He that he fostered a legit relationship with these guys over the years. Um, but the dealings of rep war reparations after world war won.

And I mean, the waters were so muddied, but people, these guys understood one another and played one another against themselves, you know, right or wrong. So. A lot of things too, to know going on. Okay. But Germany had really exploded and I don't know, certainly the decade leading up, certainly the several decades leading up to the war.

Um, They were, you know, they called an agrarian backwater at the edge of West Europe to becoming its leading aerial power overtaking, even Britain. So they wanted to spread their wings. Right. They, they were tired of being looked down upon if you will. And so that happens in nations. It happens with individuals you're seeing maybe in politics right now.

Are there, are there groups lineals and okay. Boomer, I mean. So many things this, this applies to. Okay. But when you understand the dynamics, you like Wayne Gretzky said, you know, he skates to where the puck is going is maybe it's China. Maybe how Germany was back then is India maybe. Um, Obviously Korea has made a name for itself.

You know, they've had made great strides in last 20 and 30 years. Uh what's Japan's role now, if any, uh, where's Russia, are they, are they falling back or they sideways or they may be starting to make an uptake so you can see. Pay attention to these things. It's going to give you insight onto where to focus, where to invest your money and your time, but absolutely at an individual level, you've got an, you cannot sell the same way to every person.

Okay. How are you? You would deal with Montagu. Norman would be vastly different than how you deal, which shocked. Totally different. Okay. But you still reached the same results. You can still close that sale. But far too few salespeople understand that they go in, treat everybody the same, give him the same presentation, the same order, you know, and it just, it naturally works with 25 to maybe 35% of your prospects, uh, with a little bit of effort, maybe you'll close in there 10 or 15%, but the rest of those prospects who are valid prospects are dead to you because you want to treat everybody the same and look, your prospects will.

Say things and do things and convey things that give away their thoughts, their strategies, you pay attention. You know, it talks about here in the book, 1911, um, there was, what is this? An agate deer crisis of 1911. So Jeremy decided deliberate. Deliberately decided to provoke a confrontation with France over Morocco.

And they were hit with a big financial crisis. All right. Stock market plunged by 30% in a single day, run on the, on the banks, blah, blah, blah, loss of fifth of its gold reserves in space of a month. So. They were determined that it would never again allow itself to be financially blackmailed. So they built up their gold reserves, the righteous bank itself, increasing its holdings from $200 million to $500 million in 1914.

Meanwhile, the bank of England had only some 200 million. So when you look at what people are doing, what countries are doing, what banks are doing, what your opponent is doing, you know, what your prospects are doing. It gives you clues, but are you looking for them? And do you, you believe them? Okay. You can, you can wish upon a star.

Doesn't make things happen the way you want. You need to observe. Make a decision. Okay. And then act on that decision. Too many people in Europe at that time, 1914 were just ignoring all the signs that were sitting there for them. What signs are you ignoring right now? Your bank account, your savings account, your investments, your business.

Do you need to hire somebody to fire somebody? Do you need to cut expenses? Whatever. Rip the bandaid off. Okay. If you're losing sleep, whatever, if you wake up the two in the morning, three in the morning can go back to sleep, keep, go, tackle, whatever that is right then right there. And I guarantee you you'll have your best night's sleep since that issue popped up.

And it's probably been awhile now moving into New York and the United States. And. Um, huh, Benjamin Strong as the head. So they, they, they give a little bit of background in the 1907 crash, 1895 crash. Uh, come on out. JP Morgan stepped up back then and, and literally saved United States government with, uh, injecting some cash.

Um, but there's the issue going on in Europe? Right. Um, England, the London stock exchange has closed. Uh, so July 28th, July 30th. Uh there's uh, there's panics, uh, things are dropping. Uh, the Dow is dropping seven percents, uh, dropped three points before that. So they're like, all right, what do we do? And the old, the old good old boys club gets together.

Right first, it was just eight men later, just five. The Aldrich plan. They go, they meet in secrecy. They go out to this Island, um, off the Carolinas, I think, uh, they spend Thanksgiving together sworn to secrecy and they come back with this plan. So basically five. Five guys in Benjamin Strong. He wasn't even really that well to do.

He wasn't a college graduate. He didn't come from the aristocracy. Um, but on October, October 5th, 1914, the federal reserve bank of New York is formally announced that Benjamin Strong had been elected its first governor. So, um, I think it was Woodrow Wilson. Um, sign this up, but, um, Five guys. Yeah, federal reserve backed by Woodrow Wilson, September 23rd, 1913.

So look, this is happening now. Okay. To a greater or lesser degree. Bill Gates, Warren buffet. I mean guys like this have a lot of power, you know, and I'm not saying what these guys did was bad. I'm just saying pay attention, strong, powerful, influential people. Like to wield that power and influence. Okay, mate, hopefully it's for good, you know, it could be for bad.

Uh, so, but pay attention, see what people are doing, George Soros, you know, Tim cook it, Apple, I mean, whatever. Um, big powerful people and yeah. And, um, you know, or some of them going down, you know, Weinstein, Epstein, uh, there's some big names, you know, heads are rolling. Does that scare others? I don't know, but nothing happens.

Nothing's an accident and nothing happens in a vacuum. Yeah. Hey attention. You know, that's why, again, that's why I like this. Um, things like this everything's interconnected clues are there. All right. You just got to look for them. Now let's take a look at France. So Amiel Murrow, when world war one kicks off 1914, um, he was heading up a back water bank as they called it.

He was the director general of the bank D out of jeer at Tunisia. So basically he was the central bank for the French colonies of Algeria and Tunisia. Um, but they were paying attention to a sorted affair that was going on in the courts. It was being tried. So, um, L'Affaire Kai you, um, so these guys, um, several of the leaders.

We're always in trouble, uh, either sexual affairs or monetary, um, improprieties. So, and it gets you distracted, right? Once again, character matters. What are these people focusing on? You know, are they focusing on running the country? Are they focusing on running the central bank or are they running, you know, focusing on, uh, lining their own pockets or getting in the pants of someone else?

Um, you know, and we're limited in our abilities, right? We, we need a time and energy to focus. And anyway, so there was, um, the. The finance minister and leader of the radical party was Joseph and he won, wanted, he launched the campaign against, okay, sorry. So the, the LA Figaro was a conservative newspaper.

They had launched a campaign against the introduction of an income tax that Joseph had had recommended. Okay. So the paper's going after him, uh, and they're just scaring the guy, right. So, um, he had a mistress. They already married berth, Bertha, Guidon. Uh, she eventually divorced her husband, uh, became the first mrs.

Chi. So he married her and then he had another affair, uh, with the Ash, the tall Ash blonde Henriette clarity, divorced birth, and married his new mistress. So now the second key mrs. Chi, you she's. Upset or anything going on in the news. And she also worried, I read that her own bad press would wouldn't make its way out and about.

So she, the March 16th gets all dressed up, going to a reception. The Italian embassy stops by a gun store, uh, walked into the offices of. Live Figaro waited an hour for Gastone comment, the editor and confronted him declared. You know, why I have come and call me pumped six shots into him at point blank range from the pistol that was hidden in her expensive from muffs, killing him instantly.

So it split France, even provoked riots in Paris between supporters of and right wing agitators sound familiar. Sound like Minneapolis sound like dozens of, I don't know, Seattle Portland, so it's crazy. I hadn't been history is repeating itself. So the trial begins on July 20th. Hey, you know, Trump was being impeached while COVID was kicking in, you know, was our nation distracted.

Clearly our nation was distracted. Could they have done anything differently about COVID that's always will be up for debate, but. Clearly when you're, when you're distracted, you're not doing as much as you can. Okay. Um, so, so this is going on now, the reason this applies to Moro, who would eventually become the head of the federal reserve, the federal banking for, uh, France, right?

Leading into world war two. Um, And all the changes, you know, and regulations and relationships that they made because he was, uh, this guy , who was basically a mentor of Moro. So he likes the guy, he, he helped him, uh, grow in his, you know, in his, uh, business, in his career. So he's a loyal guy. Alright. And then you've got this other guy, um, That eventually became the, um, the prime minister he was in and out.

Uh rouvier he he's exiled and he's brought back and he's reelected and he's exiled again, blah, blah, blah. But more RO was. He was loyal. He liked these guys, um, and you know, everybody good and bad, you know, despite the bad things they may do, they still have some good attributes. So he, he chose to see the good, right.

But all of this is going on, but he's, he's rising up pretty well. So even though he was in this job, that he, he didn't really like, he, he leaned into it. Right. He. He was awarded this comment, Jor Della they're on a rare. All right. So the Legion of honor, a distinction restricted to no more than 1,250 people.

Okay. So he, he did great work in this small job, which would help him in the future. Okay. So right now you may be working on something you may have had to pivot. You may be in something you didn't want to do something you didn't think you'd be doing just like me six months after leaving the air force resigning my commission house three bedroom, two bedroom, three bedroom, two bath house.

When the back Bay of Biloxi, uh, on the number 10 T box four houses from the, uh, clubhouse, you know, I had a, I don't know, three or four minute drive into the office. We had every other Friday off all of my electricity and water and sewer trash was paid. Um, healthcare's paid, you know, had it nice, never locked the door.

I turned all that down to go. Become a stockbroker six months later, I'm unemployed. I was on unemployment when my second son was born, ended up applying to a classified ad, sell mobile homes in mobile, Alabama. And then in the so late April, early may of 98 to may of 99, I made exactly a hundred thousand dollars.

And today's dollars. It's like 140 $548,000. My first year, um, we were living in a, in a two bedroom apartment upstairs. Our rent was like three 45 a month. So imagine that right. And that has paid. I literally gave a webinar last week telling that story, sharing the lessons, learned how I've still applied those lessons to this very day.

So I promise you you'll look back months from now, years from now, decades from now on what's happening to you right now today. And you'll see the good things that the current struggles may be bringing you. Right? You're learning something good right now. God is putting this in your path for a reason.

He's preparing you for something else for something bigger. You've survived. Every other challenge that has come your way. You'll get through this. You'll get through it better if you do it with a good attitude. Okay. So, um, Moro does this. Okay. Now. Some people got jealous, you know, they say maybe Rose too far, too fast.

Uh, but perhaps it was that he was different from the others. A man, a few words, blunt, and almost rude who had made no attempt to enter salon society. It had none of the airs and graces of the Parisian higher civil servant. So very much a pro a provincial. He proudly went out of his way to remain. So. So, and look, I get it.

I don't like politics and the games and. But I go, I don't go out of my way to be rude. Right. When I do have to go somewhere, my wife knows. Right. I'll clean up. I clean up with the best of them. I can make the small talk, but you know, I try to make my rounds, see different people, uh, say some polite things.

Some jokes listened a little bit and, uh, and try to just drift. I call it ghosting. Right? Just drift out of there. But I will make a showing. Um, so how you are perceived matters and you know, you can, you can choose how you want to play the game, you and just be yourself and just fight through it. Fine.

There's pros and cons to that. You want to kiss a little, but Hey, fine. There's pros and cons to that, but just to understand, so, you know, he had, he had built up some, uh, Some resentments, some people going against him, but he was also known as being loyal. Right. So, um, just take that for what it is, but, um, so as the eight days of court proceedings are happening, right?

So the night of July 28th, so Wars breaking out already, you know, with Germany, Austria, um, Serbia. So things are already happening, but people watch it. You know, we don't have the internet back then they gotta wait and they're all caught up in this scandal. Oh. And she's, she's acquitted by the way, you know, the passion of the heart basically.

But, um, as all that's happening, people are figuring out, Oh man, you know, there's fighting going on in Paris. Um, Because of that, but now people are worried about banking, as it says, most preachers were now more concerned about how to pay for their groceries. Gold or silver coins are hard to come by the shops, even the cafes that stopped accepting bank notes and even the food markets at the house, um, had come to a grinding halt.

It sounds like our lockdowns during covert summer, still going on, um, people are showing up at the bank. They want to convert their notes into gold. And the bank's like, Oh, hell no. Right. We don't want that. We got to hold on to the gold. It's what, up to more than 30,000 people, Whoa, for over a mile, um, you know, uh, the French were, were thrifty.

It said, okay. Okay. And they were actually very calm going through this, but you know, all the classes mingled, they just, you know, The bank announced, they were prepared. They had the largest single hoard of gold in the world. Um, they had built up cause they want it. You know what? They call a war of revenge against Germany to reverse the disaster of 1870.

Um, by July, 1914 had over $800 million in bullion, but they had been invaded, would it say several times in the last hundred years. So they had a plan. To get the gold out in case they were invaded. Okay. And that, and that was issued. So within 24 hours, public services came to a grinding halt as every able bodied male headed for the railway stations.

Um, even the grant is hotels, which is the Ritz and the Creole and lost their waiters dinner was served by chambermaids within days of the outbreak of war. And for the next few weeks in a natural calm, settled over the city, as it basked gloriously in the August, sunshine. The grand department stores for which Paris was famous were deserted just like New York right now.

Big retail chains are closing on their understand. They're leaving. Manhattan sounds familiar. There was no traffic sounds familiar. The buses had disappeared to the front and the Metro ran only sporadically sounds familiar. Theaters and cinemas were closed. Sounds familiar. The cafe shut at 8:00 PM.

Sounds familiar. The restaurant's at 9:30 PM. Sounds familiar before the month was out with all the foreigners gone, the big hotels late. Mt. Sounds familiar. So then they talked about the emergency plans. They got the gold out. What was it? 38,800 golden gets innumerable bags of coins valued at $800 million.

Weighing some 1300 tons had been shipped in this button. Most secrecy by rail. By early September, the bank's vaults in Paris were empty now were not empty. Thank goodness. But again, what the hell is going on? Um, you know, it's a good book, historical book, a lot of details, a lot of facts, uh, probably beyond what you need to know.

And, um, and I'm heck I'm only in the first few dozen pages here. Um, But I'll wrap it up. I hope you got some pointers out of that, you know, and I want to leave you with several things is, as I mentioned, personality matters. Your approach matters. Um, foresight matters looking at past clues, picking up those hints and seeing how they apply.

Yup. Today's not different. Oh, this time it's different, but my business is different. It's not, it's not. Lauren from the past. Okay. Leverage other people's energy and experiences, level, leverage other people's money, leverage other people's time. Don't make the same mistakes. They made, find the movers and shakers and see what they're doing.

Get on their good side and then become that mover and shaker. But then don't think you have all the answers, you know, the old. Apocryphal story of, you know, Henry Ford, you know, he's being accused of being not too bright, you know, and they were asking him, well, how's this mate, how's that mean to the engine, the transmission, this, any other he's like, I don't know, see, you're a fraud.

He's like Bola, you want no transmissions? I hit this button, the smartest man and transmissions in the world be at my desk and you know, one minute upholstery, whatever. Boom, boom, boom. So he had access to those smart people. I really believe too. That's the difference. When you look at Republicans and Democrats, you know, they, they want to beat up, uh, On old Ronald Reagan, the great communicator, you know, it wasn't that bright, you know, we'll look at Jimmy Carter.

He was a Naval Academy, grad, a Navy nuke, super smart. Nobody ever said Jimmy Carter was not smart. Barack Obama, super smart, intelligent, um, bill Clinton wrote scholar, super smart, intelligent, you know, good old doors w Bush. Godly. He had an MBA though. I mean, he wasn't a dummy, but you know, nobody's saying he's a genius, you know, Trump, they beat him up.

Uh, George H w uh, Herbert Walker, Bush, um, you know, he was, he was smart enough, but he's not known as being a scholar, but they. It seems like the Republicans, uh, presidents are fine with not being the smartest one in the room necessarily. They surround themselves with good people. Democrats seem like they, they want the president to be the smartest one in the room and like look to him for all the answers.

Uh, and obviously they do surround themselves with good people, but it's almost, it's just a stylistic approach. It's a, it's a preference. Um, and. Hey, I have no problem being the boss, right. Calling the shots. But I have no problem saying where I'm weak in an area where I don't know, but great leaders can take a little bit of information and make a decision.

And when you're faced with tough times, when you're faced with unique circumstances, hopefully you've prepared, you've taken these stories, let them percolate in the back of your mind for years. So your, your subconscious can build on that and build the connections. So when push comes to shove, you can make the right decision.

Okay. So. Figure out. How do you want to lead? How do you lead your company? How do you lead your sales team? How do you lead yourself? How do you lead your family? And you know, if lessons from, from this book, from how they prepare for the war, if they can help, then Hey, amen. Then I'd done. Did a good thing.

Okay. Um, as I mentioned on, um, you know, earlier starting a little small group, um, to help you make a decision, right? I think too many people fail because they failed a launch. They failed to choose and commit to a path and go down it. And so this, this program is going to be short and intensive. You're going to.

The goal for you to make your money back in September. And it's not a lot of money. Okay. Um, but it's for you to launch an idea and monetize it. Um, if you're a salesperson you got maybe a side hustle or an idea, that's, this is really good for that at, um, if, you know, if you have something going on, but maybe you've got a project that you put on the back burner and you're ready to kick it off.

Um, that's what it's built for. So it's not just pure sales training. It's not necessarily, you know, you got a five or 10 or $30 million business. And so it's not for you if that's your situation, but if you are looking to grow, um, And monitor, launch and monetize an idea fast. That's what it's, that's who it's for.

And it's going to be limited to 20 people and would probably be half that. Um, so if you're interested, go to the Salesforce product com hit the contact us and, um, I'll send you the details. It's all. I'll just, it's a word document. I'll copy and paste it and send it to you. And I'm doing that for a reason as well because the people that have signed up, I do this through Facebook.


Uh, I've got a good following and, and so I practice what I preach, but if you're listening to this and you're interested, um, you know, you could go to my Facebook page or find, find my profile, find me on LinkedIn. However you want to connect and say, you're interested in the September program and I'll get you the details.

Okay. Thanks for listening. Go sell something.

Topics: The Sales Podcast, Professional Development, Marketing Automation, Digital Marketing, Entrepreneur

Written by Wes Schaeffer

The Reassuringly Expensive, Ruthlessly Pragmatic pig-headed entrepreneur dedicated to discovering proven, transferable, effective tools for creating inbound sales so he can help you automate, integrate, and dominate your niche.

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