Tell Billionaire CEO Jamie Dimon He’s The Reason Why America’s Small Businesses Are Dying

The live stream of Jamie Dimon’s address (watch below) at the NY Economic Club opens with the billionaire CEO of JP Morgan Chase pointing out a dearth of activity from American small business entrepreneurs over the last ten years since the Wall Street financial crisis:

“Small business formation is lower than it’s ever been in the United States in recovery. This recovery is ten years long, a little over 20 percent. It’s the most anemic recovery from a major recession we’ve ever had. It should have been 40 percent.”

Jamie Dimon, CEO of Morgan Chase. Flickr.

Yeah, maybe because Wall Street financiers have been hogging up so much capital and credit since 2008 through massive federal subsidies.

Like the $700 billion Wall Street Bailout, the Troubled Asset Relief Program, which Nancy Pelosi and George W. Bush teamed up to help pass.

That is 140x more money than the border fence appropriation that has the government tangled up in a record 26-day long shutdown.

Maybe it’s because last year the federal government raised taxes on upper-middle-class income earners by eliminating the federal tax deduction for state and local taxes.

That’s why House Speaker Paul Ryan (R-WI) and Senate Majority Leader Mitch McConnell (R-KY) had to walk back promises that the Republican tax bill wouldn’t increase taxes on any Americans.

And this ended up being a tax increase on a stratum of income earners that those small business entrepreneurs are aiming at sliding into with a successful small business.

Starting a small business and really making it into something that’s truly thriving involves taking risks and venturing time, and work, and money, and energy, toward the possibility of a big payoff.

But tax increases like this reduce the reward for taking all of those risks and succeeding by bringing something really valuable to the market. That’s stifling to entrepreneurship.

And meanwhile when Wall Street banks take exorbitant risks, if they don’t pay off, the finance industry gets a big bailout from the federal government on the back of a small business.

Maybe it’s because of the monetary brinksmanship of the Federal Reserve bank in expanding the Adjusted Monetary Base by a factor of nearly 5x from 2008 to 2015.

To lend all that new money to Wall Street banks at a discount.

The Adjusted Monetary Base is the sum of currency (including coin) in circulation outside Federal Reserve Banks and the U.S. Treasury, plus deposits held by depository institutions at Federal Reserve Banks. These data are adjusted for the effects of changes in statutory reserve requirements on the quantity of base money held by depositories.

A radical experiment with a nation’s money to put it in the most charitable terms. And what you see described in the graph above by the U.S. Federal Reserve Bank of St. Louis is one of the major reasons why so much money has bailed out of institutional finance and into cryptocurrency.

Which has ironically driven the creation of many small businesses by enterprising cryptocurrency engineers and entrepreneurs. In 2017 cryptocurrency startups secured nearly a billion dollars in venture capital in 300 different deals.


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Author: Wes Messamore 
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Early Investing In Ripple (XRP) Made Him A Billionaire!!

The Late Matthew Mellon was one of the early believers and adopters of cryptocurrencies. He invested heavily in Ripple (XRP) by putting down $2 Million to invest in the coin. That investment would be worth around $1 Billion when XRP peaked back in January at around $3.65. His story is one that is worth studying for it proves that following your gut instinct, as well as doing proper due diligence before investing in any cryptocurrency, can yield beneficial results for an individual.


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When interviewed back in February by Forbes Magazine, Mr. Mellon had this to say about cryptocurrencies:

“Crypto is scary and dark. It’s anti-America. I am pro-America, pro-business and pro-bank. That’s why I went with Ripple.”

In this statement, Mellon justified his choice of Ripple for it was an American based company he could trust. He had done his research and also determined that the product evident in the Ripple technology, would revolutionize banking from within the financial system. He knew Ripple was a gold mine with a solid product at hand.
When his XRP investment was valued at its peak, Mr. Mellon would discuss how his family had doubts about his idea about investing in Ripple. This is a similar reaction many crypto traders face when trying to explain their choices of investing in the crypto-verse, to family and friends. Matthew Mellon would tell Forbes that:
“It’s $1 billion virtually for free. I actually have earned it because I was the only person who was willing to raise his hand. My family thought I was insane when I knew it was a home run.”

Mr. Mellon would later die unexpectedly in April this year, leaving a vast amount of that XRP, possibly lost in cold storage. He was attending a drug rehabilitation program in Cancun, Mexico when his death occurred. His death has since raised questions about the accessibility of the XRP he owned since he was known to have kept his digital keys in cold storage in other people’s names across the United States.

His story is very unique for it shows how early research, belief in a project and investing, can pay off tremendously. We can also learn about how to keep our security keys safe and also on how to start thinking about how they can be accessed by our loved ones when we pass on.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: MaxPositives
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Buffett: Bitcoin Is More Gamble Than Investment

“Oracle of Omaha” Warren Buffett, whose aphorisms and advice many investors take as gospel, has laid into bitcoin, saying it’s a gamble, not an investment.

The Berkshire Hathaway chairman and CEO – and the world’s third-wealthiest person, according to Forbes – has long been skeptical of bitcoin. In his latest comments on the subject, he told Yahoo Finance on Saturday, “If you buy something like bitcoin or some cryptocurrency, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more.”

He continued:

“There’s nothing wrong with it. If you wanna gamble somebody else will come along and pay more money tomorrow, that’s one kind of game. That is not investing.”

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Buffett bought Berkshire Hathaway, a struggling textile mill, in the early 1960s and turned it into one of the world’s most successful investment vehicles. According to his most recent letter to shareholders, the firm’s share price has increased by 2.4 million percent since the takeover, compared to 15,500 percent for the broad stock market.

That success has been attributed to a strategy of buying strong firms with business models that are simple to understand and difficult to disrupt. That philosophy has led Buffet to be sceptical of the technology sector and of bitcoin in particular, which he called a “mirage” in March 2014.

Bitcoin was trading at around $600 when Buffett made that comment. In January, when the price was around $14,000, Buffett doubled down, saying cryptocurrencies “will come to a bad ending.” The cryptocurrency’s price is close to $9,300 at the time of writing.

One of Buffett’s most famous quotes is “our ideal holding period is forever.” In Saturday’s comments, he further criticized bitcoin, arguing its value is too dependent on trading.

“Now if you ban trading in farms, you can still buy farms and have a perfectly decent investment,” he said, but if trading in bitcoin was banned, people would have no reason to invest.

He did not address the bitcoin “hodler” movement, whose advocates urge investors never to sell.


 

Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author David Floyd

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