In Case You Missed it…our constitution forbids us to have a democracy
Whoa! Whoa! Whoooooaaaaa!
What kind of crazy statement is that?
Yeah, it’s true.
And yet, most people have been wrongly taught that the US is a democracy.
It’s not.
We’re a Constitutional Republic.
And it’s the primary reason we’ve survived for over 250 years, while throughout history constitutional republics have an average life span of only 19 years.
But here’s the difference between a republic and a democracy:
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A republic allows citizens to vote for representatives who then are supposed to carry out the will of the people.
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A democracy (more like a “mob-ocracy”) allows everyone to vote directly on issues.
The process of a republic is slower but also allows for cooler heads to prevail especially over controversial or volatile issues.
So, what’s this got to do with the markets?
Plenty.
Let me explain because most people get this concept backwards.
The markets influence governments…Not the other way around.
This is why having free markets is so important. It’s also why Socialism never works.
Right now, I can hear some of you saying, “But aren’t the markets manipulated?”
Yes, to a certain degree.
But it’s not in the way that you might think.
The markets can only be manipulated in certain segments and at certain times.
This is why we remind you that everything is connected…Everything.
And one segment of the market cannot override the global trends and cycles.
Because what happens in the US, Asia, Russia, the Middle East, etc., affects the big picture. So, in order to understand it you need to be able to “Connect the Dots.”
Example: For the last 35+ years China has been the classic example of markets influencing their government. They’ve shifted from Communism to Capitalism. And their phenomenal growth is ample proof.
Our founding fathers were divinely inspired when they wrote our constitution and established America as a republic.
And our model still leads the way for the rest of the world.
Unfortunately, governments are always trying to influence the markets. And that’s when we see the most problems.
Not only do governments fail when trying to influence the markets, they also fail to anticipate events like:
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The crash of 1987
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The collapse of Russia
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The Asian currency crisis
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The Dot-com bubble
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The 2008 financial crisis
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The European Sovereign Debt crisis (Currently underway)
