Financial Terms Explained (Pt1)

This will be a multi-part series to gain enlightenment with terms used in finance. For us to uncover the deception of the financial elite and see opportunities to gain we need an understanding of the terminologies of finance. I will use bold italics to simplify the terminologies when needed. Here are three financial terms you need to know:


The weight of debt if you do not know how to use it or get out under it

Debt – Debt is an amount of money borrowed by one party from another. Debt is used by many corporations and individuals as a method of making large purchases that they could not afford under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest. The total amount of money you owe to a person or financial institution.

Liability – A liability is a company’s financial debt or obligations that arise during the course of its business operations. Liabilities are settled over time through the transfer of economic benefits including money, goods or services. Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues and accrued expenses. Anything that removes money from your pocket or increases expenses/cost to you. There are however exceptions to this as you won’t view your child or pet as an expense, right?


Assets & Profits…we all want some!

Asset – An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. An asset can be thought of as something that in the future can generate cash flow, reduce expenses, improve sales, regardless of whether it’s a company’s manufacturing equipment or a patent on a particular technology. Anything that places money in your pocket or reduces cost/expenses.


All definitions can be found on 


Mutual Fund Fail – Abrecombrie Fund

I agree wholeheartedly with the sentiment of Robert Kiyosaki when he advises those who view his publications that mutual funds make no sense. With a plethora of schemes available to the public, we shall take a look at First Citizens Bank’s (FCB … no … not the football club) Abercrombie Fund:

Example One (FCB Fail)

Since its inception, this fund has proudly produced 5.14%! It took a whopping 18 years to give those who invested in the fund 5.14%. Let’s say you found out about this fund in 2000 and due to technicalities, you could not invest in the fund. If you purchased gold, even one ounce, in 2000 you would have 387.44% returns in USD!!

Example Two (FCB Fail)

The interest FCB should be paying you keeps decreasing on average .20% yearly since March 2012.

Example Three (FCB Fail)

While small being a small percentage, nevertheless, they are hoping to receive returns from  a loan it made to one of its sickly cousins the Deutsche Bank . This is a visual representation of what this bank looks like to those with financial sense. To top this off you still have the usual management fees to pay.

Example Five (FCB Fail)

So for every $1000.00 TTD, you have in that fund they take $25.90 in MER fees,  $2.50 trustee fee and $2.50 distribution fees for a grand total of $30.90 for every $1000.00 you have in that fund yearly. I am sure that your not gaining interest for every $ 1000.00 TTD but on $969.10 TTD in that fund which substantially decreases your gains.

Let’s recap:

1) Comparing to other assets such as gold within a similar time period, it performed poorly

2) Your rate of return keeps decreasing every year

3) Made a loan to one of the most toxic banks in the world in which it hopes to receive returns with interest.

4) The associated fees in the management of the fund surely decrease your rate of return per $1000.00 even further.

Are not these are excellent reasons to invest your money in this mutual fund?

The Broken Financial System

What if I told you that thieves were stealing your belongings in your house right now? And what if I told you I could display undeniable evidence  …  solid proof?  What would your response be? Would it not create a cause of concern within your heart and mind? Yet our financial systems perform this unjust action every day and we calmly accept it. Central banks world over, have been key in crafting the framework that allows the system to rob us with a smile!!

On May 2016, the Central Bank of Trinidad and Tobago released a notification on its foreign exchange policy page which has some disturbing implications.

Central Bank Warning 1

If you have foreign currency and you engage in an exchange for our local dollars falls under “buying” and “selling” which is illegal, unless, it is an  authorised dealer! Let’s see who are these authorised dealers:

Central Bank Warning 2

Twelve wonderful institutions that love to give you so much less for more. They repeat the warning in detail this time.

Central Bank Warning 4

Notice in this version they added gold to it. Is there something that the central bank can see that we the citizens cannot? Take a look at the consequences below:

Central Bank Warning 4

In lay man’s terms, if you engage in “illicit”  foreign exchange transactions on any scale  you will receive a fine and two to five years in jail. You can also lose anything that the court deems valuable when convicted.  Let us take some time to recap what this document is about.

1) You can only buy, sell, borrow or lend foreign currency or gold (I would also put precious metals in this) through these legalised larcenous institutions (banks).

2) Any human (except those with “legal” authority) if charged or convicted must pay a fine and receive jail time, no exceptions!

3) The court if sees fit, they will confiscate your currency, securities, gold/precious metals, goods or anything they deem beneficial to them.

You may be saying to yourself “Why are you so critical of the banks and financial agencies”? This, my dear readers, is just the surface of the deception that these financial institutions perform in our faces. We must be sober and vigilant of our financial circumstances we are in. Only an informed public can change and even stop what the system is doing to us and our future generations.

Emancipate My Money

Today we celebrate in our twin island state of Trinidad & Tobago Emancipation Day! The day the slaves in our country were freed from slavery.  I am sure most are elated that it is a holiday and some truly appreciate what the day means. There is, however, a struggle that exists in the public sector regarding the “emancipation” of money promised to them by the government. Unlike my family, co-workers and peers, I fully understand why the government is responding the way it is. Nevertheless, I will share three reasons why I want the emancipation of my dues:


Fiat Currency of Trinidad and Tobago

1) Fiat currency (paper money) is losing value every year.

A simple Google search about the history of Fiat currency will enlighten you on how worthless it is in the long run. Think about it, how many sweets you could have bought for one dollar from 1990 – 2008? How much can you buy now? How much you think you can buy in 2020? Although I just used candy as an example can you imagine what prices of more important things such as food, clothing and housing are going to be in the future?


Oil price

2) Crude Oil Price.

This is the resource we depend upon to give us the majority of our revenue and foreign exchange. Low oil price means less revenue in general and some policies that will not be in our favour. I am sure our finance minister is kissing the feet of and making pacts with creditors to whom, we, the worker, will have to pay back (more on that another time).


Gold and Bitcoin to name a few

3) The prices of real assets are going up.

Have you taken a look at the price of gold within the last 8 months? How about the last 16 years? If you are stunned by what you see, then even you should realise the future potential of such an asset class. While Bitcoin is taking a monetary hit, rest assured, it will  regain strength in the coming months and reach levels that are quite stunning for a currency that’s “the new kid on the block”.

In the coming days, weeks, months ahead, I will show you what is really happening and how you can protect yourself and even prosper in these very weird times indeed. Be truly emancipated, my dear readers!