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Wednesday 11 September 2013

Ziad K Abdelnour: My Thoughts Regarding Wealth Redistribution

Much of the rhetoric we're hearing in the media today talks about the huge gap between rich and poor. Politicians on both sides discuss this issue, but neither seems to get to the root of the problem.

It's true that the gap between the richest 10 percent of the country and the remaining 90 percent is growing, but from that point on, most politicians get it wrong.

The issue isn't a matter of “wealth redistribution”, nor is it about protecting current tax rates. The real issue at hand is that most Americans just don't understand the rules of personal finance. They believe what they hear from friends or people selling them products. It comes down to a lack of financial education.

Schools are turning out students who are not fully prepared for the real world. They might know the basics of history, science, math, and English, but there is no real teaching of money in school. I majored in economics and finance and I spent 25 years on Wall Street honing my skills, so I know firsthand how boring the topics can be. But I'm not talking about the heavy theory or detailed rules. I'm talking about simple personal finance -- the money issues that will come up for people in the real world.

It is a sad fact today that when students they break out on their own, they are left unarmed when sellers of credit come calling. To be clear, it's not that people are dumb -- the sly and ingenious credit card companies make handling credit seem easy. But either way, the new consumers don't see or know that taking on debt at a young age is killing their financial security. Saving at a young age is critical. Simple facts about personal finance are not taught and thus bright people are caught making financial mistakes.

Plans to redistribute wealth take money from those who know what they're doing financially and give it to people who don't know basic financial principles. The subprime mortgage crisis was a perfect example of that. Hardworking taxpayers were paying to bail out banks and individuals who made negligent transactions. People who were financially ignorant were allowed to take big loans from equally ignorant (or in some cases, criminal) mortgage brokers. Greed from Wall Street made it worse. Had more people known about simple financial principles, this would not have happened, nor would we be arguing about how to pay for it.

It's not a matter of fiscal theory or taxation. It's all about education. I'm not a fan of big government, but this is one place the government can step in and help. If there were mandatory programs for graduation that included personal finance, our economy could be on the right track in a generation or two.

While no politician is doing much to solve the real issue here, I think that we as entrepreneurs can begin to fix this problem. Have lunch with your staff and teach them about personal finance. If you're not up to teaching the class, bring in an expert. Make sure the expert isn't selling something or else you could be adding to the confusion. Refer them to the Financial Policy Council and start attending our events.

If we start by educating our staffs, we can work to build a financially intelligent country and get back on track at the same time. Plus, isn't this a great benefit to give to the people who make your company work? If you invest in their financial knowledge, I'm sure it will help your bottom line.

I strongly believe any redistribution of wealth by the government, in either the executive, legislative, or judicial branches, has no place in a free, democratic society.

Some of our politicians reach for all the favorite conservative buzzwords. But they fail to cite any evidence to refute the simple, and I think quite obvious, assertion that the marketplace works most efficiently when entry of new businesses is a realistic possibility and predatory pricing is outlawed. That's what the antitrust laws are supposed to accomplish. And business people who compete fairly and squarely need not worry about them for a moment.

You know you are capitalism’s ideal puppet when winning the lottery is your only chance to realizing financial freedom.

Want to change the outcome and start truly learning the process? The Financial Policy Council is the place to be. See for yourself.


Monday 2 September 2013

On the Most Frequently Asked Questions regarding our Oil derivatives Trading Business

As part of Blackhawk’s close group of family and friends; and to set the record straight, we thought we’d share with you the Most “Frequently Asked Questions” when dealing with Oil Trading at large if you’re seriously interested in closing deals in this space.

1. Are there certain laws you have to follow in International Global Trading?

2. What is a soft offer?

3. Isn't the buyer with the money the most important thing in securing an oil deal?

4. Is there a difference in a "RFQ" (Request for Quote) from an End Buyer to a Buyer/Seller as opposed to a "RFQ" from the Buyer/Seller to the Supplier?

5. If I have secured a supplier should I ask for a mandateship?

6. What is really POP?

7. What does NCND or NCNDA mean?

8. Is the NCNDA any protection for an intermediary?

9. What does FPA, IFPA or IMFPA mean?

10. Does the MFPA (Masters Fee Protection Agreement) enforce payment of commission?

11. Please help me understand the real meaning of LOI and ICPO

12. What does BCL mean?

13. What does RWA mean?

14. What does  EXW  stand for and mean?

15. What does FAS mean?

16. What does a DLC  mean in the international trading business?

17. What is the best form of DLC?

18. Should I as intermediary accept a revocable letter of credit from the buyer for payment of goods?

19. You have said in the past that a TDLC (Transferable Documentary Letter of Credit) can only be transferred once.  If that is the case, then if it is transferred to me from the end buyer. How do I get to transfer it to the supplier? Please explain the mechanics of this TDLC.

20. What does Swift  MT 760 mean?

21. What does this mean? Branches of a bank in different countries are considered to be separate banks. Am I to understand that branches of a bank in the same country are considered to be the same bank?...Know more


Ziad K Abdelnour