by T. M. Meek
In the living room of the Lilly home, Meredith watched Alex and Leena run up the stairs together with Julio trailing close behind.
“Nearly two whole days?” Amelia looked shocked. “That seems so unlike her.”
“No. It’s not like her at all,” Meredith confirmed with a very serious look. “I’m worried.”
“I don’t blame you. What do you think it could be?”
“Shhh…Do you hear that?” Meredith asked as she looked into a nearby room. Amelia looked over in the direction Meredith looked and knew instantly what she heard.
“Why do I hear their voices downstairs when I know they’re upstairs?” Meredith asked confused. Amelia gave her a knowing look and led the way over into the kitchen. The two paused to stand next to a wall that had an intercom.
“They must have left it on in Leena’s room,” Amelia whispered away from the intercom.
“We can hear everything.” Meredith whispered hesitantly. “We really shouldn’t eavesdrop, should we?” She looked to Amelia for a decision. Amelia simply raised one eyebrow, gave a sly smile and leaned in to listen. Meredith quietly joined her. Leena was talking.
“What’s the school going to do with the money we keep bringing in for the charities? Where does it go? In a bank?” Leena wondered as she noticed her cell phone battery was low. She plugged in her phone to charge it and then turned to listen to Alex.
“Probably in a charitable trust. That’s my guess.” Alex answered without looking at her. Julio and Leena could tell something was wrong.
“So why the big emergency meeting?” Leena asked curiously.
“Did either one of you hear when one of the guys, after the presentation, came over to me and mumbled a complaint? Something about it being too hard to save twenty-five percent for retirement?” Alex asked them in a tone that showed she practically begged them to remember.
“Was that the guy with the grey hat? Like 1940’s style?” Leena wondered.
“Yes!” Alex was thrilled she remembered.
“Yeah. He said something about us having a better chance at retiring than he did.”
“Thank you for remembering, Leena!” Alex smiled.
“So what’s so important about it? Why the sudden emergency meeting here?” Julio asked with clear frustration. “I was less than five minutes from beating my cousin’s record high score in a combat video game. But instead of breaking that record, I’m here. So this better be good,” he scowled. Alex simply handed him a bag of marshmallows. “We’re good.” Julio smiled. “I love emergency meetings.” He was instantly content as he opened the bag and helped himself to a marshmallow.
“Okay. I’ve been doing some research and some math.” Alex sat down on the edge of Leena’s bed and opened up her laptop. Leena sat next to her and looked at the screen while Julio sat on the other side of Alex. With Alex in the middle, she began to pull up some slides she made to explain why the man complained.
“This is The Financial Math f Hope versus Despair.”
“What is?” Julio asked with a mouthful of marshmallows.
“Is it this math?” Leena asked as she pointed at the slide.
“Yes.” Alex replied.
“It’s simple addition. That looks pretty easy.”
“But there was some multiplication and division that was used to get some of these figures,” Alex added as an afterthought.
“So what does it all mean?” Julio asked as he shoved another handful of marshmallows into his mouth. “What’s this?” he asked as he pointed at the first figure.
“That’s the minimum percentage that Americans should be striving to save for emergencies,” Alex answered patiently. “There are so many things that can push a person into a life of poverty and homelessness unless they earn enough to handle the assortment of financial catastrophes that can come along in a person’s life. So far, I’ve figured there are five main categories that people should save for – and that’s just to handle emergencies. Then when you add the need to save for retirement and also handle taxes and insurance and just the cost to live life…it all gets really expensive. And this is all still while living frugally,” She said throwing her hands in the air in exasperation. “Why aren’t we all thinking more about these things. Something has got to change.”
“Well, maybe we can help with that,” Julio smiled softly to cheer up Alex.
“What were the five emergency accounts you were thinking people should save for?” Leena asked to get the ball rolling. After all, if they were going to make changes to their presentation, they might as well consider what those changes might be now.
“Personal medical, like for a negative diagnosis for some disease like cancer or for some major surgery like if you get into a car accident or some other medical needs. Then there’s a loved ones major unplanned needs – so like if your spouse gets sick or your child gets sick or your parents or something else goes wrong with someone you care about and if they can’t afford to solve their problems –– especially if their problems were through no fault of their own, you can help them pay for their needs.” Alex paused for a moment to consider how bad things can get for people financially. It was mind-boggling. She continued.
“One of the biggest risks along with medical problems is the risk of income loss. Income loss can occur from a job loss, the death of a working spouse, a divorce or even an income producing investment that loses money – like the temporary loss of income that occurs when a rental property sits vacant until it gets rented out again (like with real estate). There’s also the risks of personal property damage, like if your house gets flooded from a plumbing problem or if a tree falls on your roof or if your car gets hit by someone who can’t afford to fix it – lots of things. And there’s the legal risk of needing to either prosecute someone or pay for a defense attorney. So that would require having an emergency litigation account ready. That’s five different kinds of emergencies anyone can face multiple times over their life. Life is expensive.”
“Wait, wait, wait,” Julio said as he brushed his hands together to clean off any marshmallow mess. “Give me that. Let me see something for a second.” He then grabbed Alex’s laptop and placed it on his lap. He did some quick math in his head. “That’s ten years worth of work you’re suggesting people do in just one year.” He sighed and shook his head. “What the heck?”
“I know.” Alex sighed.
“Yeah. This is a problem.”
“Would somebody please tell me what’s going on?” Leena squeamishly requested.
“People have to earn more money in order to save enough for retirement. Am I right?” Julio asked Alex.
“Bingo!” Alex gave Julio a high-five.
“But most people can’t afford to quit their low paying jobs to do something else…and that’s basically what they’d have to do.”
“Not necessarily.” Alex disagreed politely. “They could still work for their current employer. They would just need to work fewer hours at their jobs so they have more free time to work on earning a more sufficient income like through starting their own business or inventing something lots of people need and would buy.”
“You think a lot of companies would do that? Just let people work less when they need really them?” Leena asked innocently.
“Maybe the company could help their employees get rich on the side and then the employees would be more motivated to keep working some hours for the company…since they helped them get rich.” Julio was enjoying coming up with good ideas to help people.
“That’s exactly what I was thinking about last night, Julio!” Alex added excitedly as she turned to face him. “But there’s one problem.”
“What problem?”
“Have you ever heard of a billionaire named Linda Wise?”
“Yeah. Isn’t that the lady building the new museum?” Leena asked.
“Exactly!” Alex replied turning back towards Leena. “I asked her about this same idea about a week ago. She said to me that for the past
fifteen years she’s experimented with that idea to help her own employees become financially successful, more self-reliant. She said she’s been emailing a survey every year to her employees that they could answer anonymously. The survey basically asked them how many of her employees would like to work less hours while also receiving the benefit of an educational program that would teach them how to use their spare time to become financially self-reliant since she knew it just wasn’t in the company budget to afford super high, but more sufficient salaries for most of her employees.”
“What happened?” Julio asked as he tossed his bag of marshmallows in the air several times.
“She said that the first year she offered it that about a dozen employees signed up to work less and get more free time to pursue their own wealth. But only three of them stuck with it and made it. All three are still employed by her but most of the ones that quit trying to succeed just got scared of failure. They didn’t really stick it out. They liked the paycheck to paycheck way of living because they didn’t have to do much. They didn’t have to motivate themselves to go and achieve on their off hours.”
“It didn’t work?”
“It did work…just not as well as she hoped. Each year the numbers of people that signed up either dropped or stayed about the same. Overall, she learned that people have a hard time believing they can succeed. She also learned that some of them for some reason believe that it’s bad to have so much money…”
“How can it be bad to have what you really need? This math is clear. People need lots of money in order to have enough saved for emergencies.” Julio couldn’t believe people could be so irrational about the benefits of wealth.
“I don’t know why some people think having money is bad.”
“Most people know having enough money is good. It’s good to be prepared. Your math just shows them how much more they really need, that’s all,” Leena chimed in.
“That’s true. Most people do believe it’s good to earn enough. Most people are good and they would do good things with their money if they were more successful and wise in their budgeting.” Alex said as she grabbed Julio’s flying bag of marshmallows. She set the bag down. He was annoying her. “They just have to face the fact that they need to earn…a lot more money.”
“That sucks though.” Julio sighed and then handed the laptop back over to Alex. “People have a hard time believing they can succeed financially. So that’s why so few people ever get rich.”
“But we still have to convince them that they can do it as long as they’re able to work,” Alex said as she studied her math again. “People need to believe in themselves enough to be successful. They also need to surround themselves with people that will encourage their success and be happy for them, not get jealous and be skeptical or negative about their better financial aspirations. We’ve got to convince them they can do it.”
“Good luck with that.” Julio added sarcastically.
“So what does that mean for our presentation?” Leena asked still fearful of the meaning of the emergency meeting.
“We’ve got to scrap it. We can’t use it. We should’ve showed them this math.” Alex felt sick to her stomach over the possible repercussions. She knew they didn’t have a choice if they were going to get the truth out to the masses of baby boomers and others interested in true financial prosperity.
“Why didn’t we?” Leena asked in frustration.
“I didn’t have it yet, Leena!” Alex responded with even greater frustration than Leena had shown. “Don’t you think I would have if I had it?”
“It’s a good thing we’ve only done one presentation so far.” Julio tried to fake some optimism. “We should get this math to the company we just presented to.”
“I’m thinking the same thing,” Alex agreed.
“So what do we tell people?” Leena seemed worried.
“We explain to them that they can’t save enough. Not on their $50,000 dollar average income. And not with the current tax laws. The laws put limits on how much people can contribute to a 401(k). They have to add other strategies. Other savings plans…as well as earn enough.” Alex sighed heavily and thought out loud as she mumbled again, “They have to earn enough.”
“Just ten times the amount they’re earning now. That’s all,” Julio shrugged with a bitterly sarcastic face.
“But our parents are doing it, right? So other people can do it too,” Leena said with optimistic naiveté.
“Our parents make up less than one half of one percent of the population as it pertains to earning money, Leena.” Alex sounded tired because she was after nearly forty-eight hours of non-stop study.
“That’s the equivalent of earning the gold in the Olympics. But we’re talking now about…financial Olympics.” Julio added as he laid back on the bed. He wiped a hand down his face. “We’re toast.”
“We’re not toast,” Alex corrected Julio quickly. “We just have to show them this. This is our new presentation.”
“Okay, Captain Correct-o,” Julio said sarcastically.
“Why can’t people save twenty-five percent or more on their smaller incomes?” Leena asked innocently. “Has anyone ever been able to?”
“That’s an excellent point. It was easier for people to save money they needed for emergencies and future retirement back when inflation wasn’t so high. It was so much easier to be financially self-reliant then. But inflation has pushed the backs of over 95% of Americans to the wall financially. Over 95% of Americans are living paycheck to paycheck.”
“That’s it!” Julio popped back up and sat up straight next to Alex. “We’ll solve the problem of inflation and save America! Let’s stop inflation, Alex.”
“You can’t really stop it…but you can control it.”
“Okay. So how do we control it? Once we do that, everyone’s life will be easier financially.”
“That’s easier said than done.”
“So you actually know how to control inflation?” Leena was wide-eyed and ready to see Alex perform a huge miracle.
“Yeah…we just have to go back onto the gold standard. Or a bimetallic one, like using silver and gold. We’ll either choose it freely through a return to smart legislation or we’ll practically be forced to use that wisdom once the dollar fails. And it’s likely to fail really soon.
“What do you mean, ‘when the dollar fails’?” Julio asked.
“For several decades the dollar has been more like play money, fake money like you’d get in a toy store to pretend it’s real. But inflation has reduced the U.S. dollar’s purchasing power. So whether we go back onto the gold standard or a bimetallic standard, we’ll have to do something for sure after the dollar becomes worthless. But people need to get ready now by having their own emergency savings. They need to have their own year’s supply of water and food, reliable shelter and other needs for when the U.S. dollar becomes worthless. There are lots of wise and successful Americans that have already, in fact, pulled totally out of the market. They no longer own any paper investments. No stocks. No bonds. Nothing on paper because when the U.S. dollar, which is paper, fails, then all other paper fails because all paper is is a promise of value but that promise isn’t backed by gold.
“That’s how close the United States is to a total economic collapse?” Julio asked in shock.
“Yep. When multimillionaires and billionaires are pulling totally out if the market, you know something bad is going to happen soon.” Alex said as she sat her laptop over on a pillow. “Even gold certificates could be worthless when the dollar fails. Personally, I wouldn’t want certificates. I’d want only what I could hold in my hand, like actual physical gold coins or bars and other precious metals in my own safe that’s bolted down in my home. Tangible goods. That’s what the smart multimillionaires and billionaires have done. They’ve got physical gold, physical silver, actual water storage, food storage–– at least a year’s worth of food and water. Hygiene kits. Everything. They’re self-reliant in pra
ctically every way needed so they won’t need a store to buy stuff once the stores are all sold out of everything.”
“Did you know that there are safes that will silently alert you if they are being moved while you’re away? So if you’re at school and someone is trying to physically remove your entire safe from your room at home, it will quietly send you a text or a phone call with a message that there could be a problem like a burglary in progress at your house. The thieves won’t know that you’re being warned. Pretty cool, huh?” Julio smiled.
“Very cool,” Alex nodded in agreement as he gave her a high five.
“So it’s a good thing that you said in our first presentation that the only amount of money people should have in bonds or stocks is the amount they can really afford to lose.” Leena said thoughtfully.
“Yeah. That’s true. People should only have the amount of money in the markets that they can afford to lose…which for most people living paycheck to paycheck could be…zero.”
“So we go back onto the gold standard. Sounds great.” Julio smiled cheerfully as he dug in his bag for more marshmallows.
“No…we make the argument to go back onto the gold standard...and then…” Alex hesitated.
“Then what?” Leena asked anxiously.
Alex looked over at Leena and smiled shyly before finishing her thought. “Then hire Julio’s dad to protect us from the fallout.” Alex was smiling sheepishly at Leena but Alex had never been more serious.
“Why would my dad need to protect us?” Julio asked curiously as he stared at Alex.
“Well…” Alex cleared her throat. “The prices of practically everything would drop dramatically. Like less than a dollar for gas. Ten cents for bread. Buying a car for about two or three grand. Things would return to normal…like they were before we went off of the gold standard.”
“So that’s great!” Leena smiled widely.
“Yeah and we’d need to go back to the time when land was inherited instead of bought and homes were built most of the time without mortgages. No debt. Lots of food self-reliance, like farming. We’d also create even greater technological advances in practically every good way you can imagine. No more poor people. No more living paycheck to paycheck.” Alex sighed more heavily wondering if they understood how serious the real concern was.
“Wow!” Leena giggled. “That’s great for everybody!”
“Not everybody.” Alex said soberly with her finger pointing for emphasis.
“So who wouldn’t like all of that?” Leena asked innocently.
“Oh no,” Julio said leaving his jaw dropped open.
“Are you seeing where I’m going with this?”
“That’s a problem.” His eyes grew wide. “That’s a big, big problem.”
“Very big,” Alex confirmed.
“Very big problem,” Julio nodded his head in somber agreement.
“Would somebody tell me what’s wrong?” Leena was nearly in tears.
“No debt, Leena. No debt.” Julio answered. “If only a few people need debt…
“…such as just for starting a business” Alex chimed in.
“Then what does that mean for people like your dad?” Julio asked encouraging her to think more.
“I don’t know. Just tell me!”
“Your dad’s job could be eliminated. He’d be unemployed…along with a lot of very rich…”
“And powerful…”
“Evil people.” Julio finished.
“No more need for so many government tax based welfare programs.” Alex looked at Julio and was glad he understood. He shook his head.
“That’s a lot of rich and powerful people that could lose their power to control others. They wouldn’t be able to oppress by debt and economic dependence.” Julio closed his eyes tightly as he realized just how many enemies they might make with rich and powerful people by telling the truth. “They’re going to be so, so angry with us for helping people learn the truth. We could free so many people with this information.”
“Because going back onto backing currency with gold and letting people inherit land to farm on and build on makes them far more free and independent than they are now. Powerful people that make their living by oppressing and limiting freedom won’t like that. No more need for credit cards means no more need for APRs or credit card fees. We’re talking about the kind of unprecedented financial independence among Americans as being the norm. No more need for food stamps or social security or dependence on public transportation because most everyone will be…”
“Rich.” Leena finally got it.
“No more poor people,” Alex smiled softly.
“Billionaires in the banking and financial services industry would lose tons of money. Maybe billions of dollars.” Julio pounded his hand against his forehead a few times in frustration over the kinds of enemies they could make.
“Powerful politicians no longer able to justify taxes and wasteful spending. No more need to budget billions of tax dollars for various welfare programs. Those are huge losses of power. Huge. Politicians possibly getting a drastic cut in their paychecks…maybe even earning only the median average income just like everyone else.”
Julio quickly hopped off the bed to go race home. He knew they would all need serious personal protection now that they knew what they did. “I need to go talk to my dad right away.”
“Not before you talk with us,” Amelia stood in the doorway with Meredith.
“You left this on.” Meredith then clicked off the intercom by the door on Leena’s bedroom wall. “We heard everything.”
“Oh no.” Alex sighed.
“Don’t worry. Things are going to be fine.” Meredith smiled.
“We’ve already spoken with your dad Julio.” Amelia looked seriously at the Success Crew. “You can show them your math and still be safe. He’s on his way over. We’ve got a plan.”