(While 100% true, I’ve left out names of people and businesses…)
Something very alarming happened to us last week. It’s something that I, and you, assume doesn’t happen.
But, the reality is that it does. It happens everyday, all day long.
And the results end up screwing us, big time. We pay the price at the end of the day…
So, let me tell you what happened…
Last week, we (my wife and I) were approached by a large company based out of Canada. This company makes very expensive industrial equipment that gets shipped throughout the world for use by major companies and governments.
This equipment is only made to order, because they are so expensive to make ($5 million and up per unit). So, manufacturing of this equipment only starts once a purchase order is made and a down payment is paid.
We’re talking major stakes here.
Well, this company approached us for a certain reason…The Canadian government is giving out loans to companies that export their products for up to $10 million dollars. The loan is used to help businesses out so they can export products, even if the business doesn’t have enough startup capital to manufacture their products.
It’s a government incentive program – nothing new.
But here is where it gets interesting…
This company that contacted us, wanted our Panama company to write up a fake purchase order for 5 of their units… that would be a $25 million dollar order.
This company said that all they needed was a purchase order to qualify for this loan program.
Once we put the order in, they would nullify our order after a couple months, after they get their funding from the Canadian government.
So, think about that. This company is basically bamboozling the government for a loan by using us as a fake client.
On top of all that, they offered us a kick back for the order.
Obviously, we declined any involvement in their scam, as profitable as it may be.
But, this story raises a larger question… What kind of scams similar to this one are taking place today? And are the stakes larger than just millions? Maybe billions or more?
We all know the answer to this… yes, of course this is going on.
It’s called crony capitalism – or corruption.
The most frustrating thing about this story, that happens everyday, is that our tax dollars are used to fund these scams.
Even more alarming, is that many times, these crazy backdoor deals are involving weapons manufacturers; meaning that our tax dollars are funding business deals that depend on the
continuation of war.
Regardless of where our money is going, one thing for sure you should be looking out for:
Easy money leads to disaster.
We’ve been through this story before in 2008 with the housing crash that was basically fueled by lending money to people that shouldn’t have qualified for loans.
We are back in that scenario where money is being lent to people and corporations that may never be able to pay back their debt.
And those people and corporations don’t care, because you and I are going to be the ones that pay the price when this whole thing collapses.]So… Now What?
Ok, you may think, “Great, that sucks, but what can I do?”
There is plenty you can personally do to avoid supporting disgusting corruption like this.
First, is to become tax efficient. Many people believe that paying taxes is their duty to society. I won’t start a debate there, but I would argue that a large part of the taxes you and I pay go to support insane scams such as the one I told you about.
Second, is to remove your money from the system that fosters this sickening business practice. You can buy precious metals, art or foreign real estate.
…And foreign real estate is what we’ll talk about on Wednesday…
Lyft will be testing driverless cars in the US within the year.
Need I say more?
…Ok, I will… this means that the technology that everyone has been badmouthing is actually happening. There will be driverless taxis roaming the streets within the year (of course just for testing, for now).
Are you a taxi driver? I’d start looking for a new job…
It’s starting to happen more and more… Federal laws are conflicting with state laws when it comes to enforcing marijuana laws.