How To Be a Trillionaire
The hidden level of global business
There are five levels of entrepreneurship in the global business world today. The first level is bootstrapping - where your money to run the business, usually in a very small and limited way. The second level is where you get someone to invest capital in the business (mostly because can't get capital from established financial institutions).
The third level is when you can get capital from banks. This is when you become qualified to take sizable loans that make sense for your business growth. The fourth level is when you can issue bonds from your business. This is mostly common with public companies.
How Trillion-Dollar Businesses Work
The fifth level is the way to become a trillionaire. As things stand, this is the only way to become a trillionaire in today's world. And that is government financing.
Most governments do not issue their own currency. That is the work of the central bank. And the central bank is a private entity, not a public one. Yes, the government does choose who should lead the central bank but it is still a private bank.
Trillion-dollar financial institutions do engage in government financing through the central bank. The government will pay back through the revenue generated from taxes and tariffs.
This is why you must understand that when you pay taxes, you are not funding the government, instead you are helping the government to pay its debt (to the trillionaire financiers).
So, how do the trillionaire financiers get the money to be able to finance the government in the first place? Good question. Follow this closely because it is leading somewhere.
How They Get Money to Finance the Government
Interestingly, they got their money from the government. Government financing has been so sure and very lucrative. The presidents and prime ministers don't pay anything from their pockets, they just levy more taxes or find ways to generate revenue.
Many of the trillionaire financiers have been doing this for many generations. Think about the Morgan dynasty in America which continues to this day. You are familiar with two of its offspring - JP Morgan and Morgan Stanley. (Yes, it is the same Morgan family).
And if you study the history of these colossal dynasties, you will discover that they had their breakthrough during a war. War took their businesses to the next level. That's where it often starts from. This is why the landscape of the trillionaire financiers hasn't changed much since WW2.
Now, when I say trillionaire financiers here, I don't mean individuals. There is hardly an individual who is a trillionaire, even in the shadow banking world. The trillionaires are institutions. And their world is way more profitable and less fragile than all the other tiers of entrepreneurship.
Today, these financiers make money from their previous government funding to further fund the government. This is easy because they have enough financial power to exert considerable influence on governments and who wins elections (in a democracy).
The concept of "too big to fail" blends perfectly into this also. The government needs institutions to be able to finance it if trouble comes. So, they will bail out these institutions with taxpayer money if they are ever in trouble. This is because if they don't, they just make themselves vulnerable. If a conflict of any kind should stir up, there will be no one to finance it.
Wars got more brutal the moment government funding became a thing. When you have money, it is easy to say you will win even when all facts point in the opposite direction.
In other words, this is a finance world of governments and their trillionaire financiers. We are all just trying to live and play in their world.
Why is this important? It is important because you need to know the game you are playing. If you want to be rich, you have to know where and how you slot yourself into their world - for the maximum upside and minimum downside.
The Next Frontier
Wars are slowly becoming impractical. The presence of nuclear weapons almost makes it impossible to have a world war today. This is because it will be all over in an instant. No one wants that.
So, there are other areas that seem to be the next frontier to replace wars. The first one is space travel. The competition in that area has been slow but it is picking up gradually. Elon Musk plays in this area and his organization is well-positioned to be the trillionaire financier of the government in space exploration.
Another area is technology. Not just any technology but chips and quantum computers. The chips competition is already heated causing a spat between the USA and China with Taiwan caught in the middle of that.
Gradually, space exploration and quantum computing are going to be the next frontiers to breed future trillionaires.
Countries do not issue their own currency. The currency is issued by the central bank. The central bank is not a public entity. A government agency can print the notes but the value of each note is dictated by the actions of the central bank.
My wishful thinking is that one day this will change. That the value of a currency is no longer determined by the central bank. This will mark a new beginning in the world of finance. But for now, it remains wishful thinking.
The implication of this is that once money cannot be printed to fight wars, the probability of any significant war is very minimal. Also, taxation and inflation suddenly become obsolete terms. This makes governments way more responsible in that it becomes more difficult to spend what they don't have.
If you want to be a trillionaire, finance the government. Be successful in your business and wait for the opportunity to finance a government. But it must be a stable, reputable government though.
But more practically, I have shared this with you to give you an idea of the big macro picture. If you are going to start a business, start one where the money is flowing.
If you are thinking decades into the future, focus on quantum computing or space exploration. It will be boring at first but when the tide comes around, it will be a rain of billions and trillions. Cool if you can stick your head into those industries now when the major breakthroughs haven't arrived. If you get an opportunity to invest in those areas, you should grab the chance.
Finally, the world economy runs on fiscal stimulus. Put your money in places where you can enjoy the stimulus. And yes, inflation will linger for a lot longer than most people are thinking right now.
Be extra smart about your investing. Stay rich.