wealth [Archive] - Divine Cosmos Discussions

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William Foster

07-09-2002, 07:26 AM

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>As a former Chief Financial Officer for a $2B a year company, but now a full time trader I must remind you that net worth is the measure of wealth. Net worth is defined as assets - liabilities = net worth. Liabilities include debt. So when people on this terrific list (and I mean that sincerely)say $400 to $300 trillion in wealth, I believe they are only talking about the assets and not the net worth, which is the true measure of wealth.
>
>Now we are finding out, and this has just started, that profit and (Loss) were grossly over stated by many companies. P and (L) is defined as sales (revenue) - expenses = P or (L). The accounting industry (and one of my degrees is in accounting and I use to work for KPMG) has gone completely down hill because of greed
>
>This will all soon be corrected as the "ruptures" to planet Earth due to the ascension will completely change the Earth as we know it. When exactly this will happen, I don't know. It could be 2012. My bet is on some where between 2012 and 2016.
>
>yours,
>Bill Foster
>

Jeremy Weiland

07-09-2002, 11:00 AM

> As a former Chief Financial Officer for a $2B a year
> company, but now a full time trader I must remind
> you that net worth is the measure of wealth. Net
> worth is defined as assets - liabilities = net
> worth. Liabilities include debt. So when people on
> this terrific list (and I mean that sincerely) say
> $400 to $300 trillion in wealth, I believe they are
> only talking about the assets and not the net worth,
> which is the true measure of wealth.

I can confirm that the article I posted was talking
about assets in the form of investments, securities,
etc. It was not specific at all, but a very general
statistic. Plus, we're talking about a group of
investors / shareholders / creditors, so we can't
speak in terms of individual net worths.

Thanks for the info!

Jeremy

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Tarzan

07-10-2002, 01:22 AM

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>Bill,
>
>Thank you for your input. It is interesting that you are a former CFO. My younger brother, six years younger (I'm 43), is now a CFO of a well-known, publicly-traded corporation and we have had some interesting discussions--debates, rather--on the goings on with the world. I am rather tickled that he has his "own" corporate Lear jet at his disposal. He said that his company never went the Pro Forma route and I was relieved to hear that, for I'd hate to see him go through the stress of any restatement of earnings.
>
>Anyway, regarding the $300 trillion-dollar figure, it just simply came to my head and is not supported by any documentation of any kind. I almost went into a career as a CPA, but the ever-changeablility of the tax/financial "laws" really turned me off, thus I went back to my first love--nature, whose Laws are constant. It is a safe bet that the Soviet economist--blasted that I can't remember her name--came up with the same figure. I didn't put much weight in my own figure until I read the interview with her.
>
>The $300 trillion is in total assets--such as hard assets, facilities and the like; I estimate that about 15% of that figure is in fiat money. A majority of this this money has come from banking fiat power and from the cash pulled in from the extremely profitable illicit drug world, most of which are laundered through banks through a series of anonymously-numbered accounts, then into payments for financing secret projects, like their numerous underground facilities. To the owners of the banks, "assets" and "liabilities" are the same thing--just like they have funded and supplied both sides to every single war going back centuries. The banks own both sides of the same coin, so to speak. What liabilities that are paid to theholders-of-due-course by the central banks is but chump change relative to the total wealth that they have accumulated world-wide.
>
>Huge profits have been realized by the owners of the central banks through the mechanism of the IMF, whose primary role is now to implode third-world countries and vacuum the wealth right out from their economies. Argentina is the latest victim; Brazil seems to be next. These banking ba$stards have NO allegiance to ANY country, so the won't give it a second thought about imploding even the biggest prize--USA.
>
>I am sure that you (Bill) are aware of everything that I have discussed--it is for the benefit of everyone else's learning that I am carrying on this discussion. Also as a former CFO, you have a great deal of hands-on experience that can be beneficial for all of us. I'm glad that you're on board.
>
>The point of these financial threads--at least from my view--is to be aware of financial manipulations, since we all use fiat notes, regardless of which country we are in--we're all vulnerable to the whims of the banking ba$stards.
>
>Seth

William Foster

07-10-2002, 02:27 AM

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>Hi Seth:
>I'm glad you didn't go into the accounting and financial side. I always went for the highest paying job and was sorry that I did. In my opinion, you should do what you enjoy (within reason).
>
>I don't think anyone really knows what the true value of the wealth is in the world. After all, what is the value of the White House ? And, having worked for with the Department of Energy and Department of Defense, the worst offenders of having orderly balanced books is the U.S. Government. What is the value of someone's house ? Not many people own there homes outright, so there value is what someone is willing to pay less selling costs and paying off the mortgage. 
>
>I agree that the IMF has made some really bad judgement calls and mistakes and that Brazil is next in line. In fact, every where you look (South America, the U.S., Japan, etc.) debt levels are extraordinarily high and in a contracting world economy that is very bad because the loans can't be paid off. And, again, we are lead back to a spiraling debt, deflationary depression of unprecedented proportions. The average, "Joe Six-pack" just doesn't realize it yet.
>
>Banks are in serious trouble since there raw material is money and the cost of money (interest rates) are about to rise considerably. A good economist friend of mind, who has since died, had a vision where the interest rates suddenly spiked to incredible levels and it happened in November. But he didn't know which year. I'm picking 2003 during that eclipse but I could be wrong. Still, I'll have some way out-of-the money put options on interest rate futures, just in case.
>
>Worldcon says there assets are worth $120 Billion, but over $50 Billion of that is in "Goodwill" which is worth about zero. Actually, it's worth less than zero since goodwill is an asset on the balance sheet that's suppose to represent the premium between an acquisition and it's book value (net worth). Worldcon said MCI was worth 5 or 6 billion but the highest bid they could get wasabout $2.6 billion and they still haven't sold it. And we've only seen the start of this sort of thing with Merck saying they overstated revenue by $14 billion. Like a famous Senator once said, a billion here a billion there; pretty soon you're talking some real money.
>
>The point I was trying to make with the $400 trillion or $300 trillion was that it's not real and only considers assets and not liabilities. No one really knows the real figure because the assumptions are always changing that calculate that number and getting worse all the time. The point is, that the drop of the NASDAQ from over 5,000 to what it is today DID cause a serious reduction in everyone's wealth, including the rich. I am so glad I cashed out all my retirement plans and sold all my stocks.
>
>But the real threat, in my opinion, is the debt levels and the derivatives market. The GAO did a study in the 1990's (which is on there web site) where they tried to calculate the real value of the derivatives market and they couldn't do it. It's to complex and wide spread. Because, derivatives not only include futures and options but a whole host of largely unregulated OTC derivatives.
>
>Therefore, sell all your stocks except gold equities, cash out your defined benefit or defined contribution plansif possible and put all you money in 3 month T-Bills and a little in gold stock options.
>
>I know the accounting games the CFO's play, and we haven't seen anything yet. Lawsuits by the ton, dropping stock prices and loss in the "full faith and credit" of the U.S. It won't be pretty. 
>yours,
>Bill Foster
<blockquote style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
style="FONT: 10pt arial">----- Original Message -----
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: Tarzan (tarzan@ncws.com)
style="FONT: 10pt arial">To: asc2k@yahoogroups.com
style="FONT: 10pt arial">Sent: Wednesday, July 10, 2002 1:22 AM
style="FONT: 10pt arial">Subject: RE: [asc2k] wealth
>

>Bill,
>
>Thank you for your input. It is interesting that you are a former CFO. My younger brother, six years younger (I'm 43), is now a CFO of a well-known, publicly-traded corporation and we have had some interesting discussions--debates, rather--on the goings on with the world. I am rather tickled that he has his "own" corporate Lear jet at his disposal. He said that his company never went the Pro Forma route and I was relieved to hear that, for I'd hate to see him go through the stress of any restatement of earnings.
>
>Anyway, regarding the $300 trillion-dollar figure, it just simply came to my head and is not supported by any documentation of any kind. I almost went into a career as a CPA, but the ever-changeablility of the tax/financial "laws" really turned me off, thus I went back to my first love--nature, whose Laws are constant. It is a safe bet that the Soviet economist--blasted that I can't remember her name--came up with the same figure. I didn't put much weight in my own figure until I read the interview with her.
>
>The $300 trillion is in total assets--such as hard assets, facilities and the like; I estimate that about 15% of that figure is in fiat money. A majority of this this money has come from banking fiat power and from the cash pulled in from the extremely profitable illicit drug world, most of which are laundered through banks through a series of anonymously-numbered accounts, then into payments for financing secret projects, like their numerous underground facilities. To the owners of the banks, "assets" and "liabilities" are the same thing--just like they have funded and supplied both sides to every single war going back centuries. The banks own both sides of the same coin, so to speak. What liabilities that are paid to theholders-of-due-course by the central banks is but chump change relative to the total wealth that they have accumulated world-wide.
>
>Huge profits have been realized by the owners of the central banks through the mechanism of the IMF, whose primary role is now to implode third-world countries and vacuum the wealth right out from their economies. Argentina is the latest victim; Brazil seems to be next. These banking ba$stards have NO allegiance to ANY country, so the won't give it a second thought about imploding even the biggest prize--USA.
>
>I am sure that you (Bill) are aware of everything that I have discussed--it is for the benefit of everyone else's learning that I am carrying on this discussion. Also as a former CFO, you have a great deal of hands-on experience that can be beneficial for all of us. I'm glad that you're on board.
>
>The point of these financial threads--at least from my view--is to be aware of financial manipulations, since we all use fiat notes, regardless of which country we are in--we're all vulnerable to the whims of the banking ba$stards.
>
>Seth
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