Sunday, July 22, 2012

Cash pumps, cash machines, governments and investors

Government needs money.
Taxes are how government get the money.
Taxes are paid when money move from one hand to another.
In other words, the more exchanges there is, the more taxes are paid.
In other words, government wants high cash flow.
If you want to increase water flow, you buy a water pump.
The government wants to increase cash flow so they buy cash pumps.

The trick is that : Your president will support cash pumps, and doesn't care about profitability.

When you understand that, you understand how use leverage from your government.
In other words, you understand how to pay almost no taxes and maybe how to get money from them.

Cash machines are for investors, cash pumps are for governments.
If you want to pay less taxes, become a cash pumps.

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