Got this as a forward.
A bit long, but very very explanatory….Must read
Once there was a little island country. The land of this country was the tiny island itself. The total money in circulation was 2 dollars as there were only two pieces of 1 dollar coins circulating around.
1) There were 3 citizens living on this island country. A owned the land. B and C each owned 1 dollar.
2) B decided to purchase the land from A for 1 dollar. So, now A and C own 1 dollar each while B owned a piece of land that is worth 1 dollar.
* The net asset of the country now = 3 dollars.
3) Now C thought that since there is only one piece of land in the country, and land is non producible asset, its value must definitely go up. So, he borrowed 1 dollar from A, and together with his own 1 dollar, he bought the land from B for 2 dollars.
*A has a loan to C of 1 dollar, so his net asset is 1 dollar.
* B sold his land and got 2 dollars, so his net asset is 2 dollars.
* C owned the piece of land worth 2 dollars but with his 1 dollar debt to A, his net residual asset is 1 dollar.
* Thus, the net asset of the country = 4 dollars.
4) A saw that the land he once owned has risen in value. He regretted having sold it. Luckily, he has a 1 dollar loan to C. He then borrowed 2 dollars from B and acquired the land back from C for 3 dollars. The payment is by 2 dollars cash (which he borrowed) and cancellation of the 1 dollar loan to C. As a result, A now owned a piece of land that is worth 3 dollars. But since he owed B 2 dollars, his net asset is 1 dollar.
* B loaned 2 dollars to A. So his net asset is 2 dollars.
* C now has the 2 coins. His net asset is also 2 dollars.
* The net asset of the country = 5 dollars. A bubble is building up.
(5) B saw that the value of land kept rising. He also wanted to own the land. So he bought the land from A for 4 dollars. The payment is by borrowing 2 dollars from C, and cancellation of his 2 dollars loan to A.
* As a result, A has got his debt cleared and he got the 2 coins. His net asset is 2 dollars.
* B owned a piece of land that is worth 4 dollars, but since he has a debt of 2 dollars with C, his net Asset is 2 dollars.
* C loaned 2 dollars to B, so his net asset is 2 dollars.
* The net asset of the country = 6 dollars; even though, the country has only one piece of land and 2 Dollars in circulation.
(6) Everybody has made money and everybody felt happy and prosperous.
(7) One day an evil wind blew, and an evil thought came to C's mind. "Hey, what if the land price stop going up, how could B repay my loan. There is only 2 dollars in circulation, and, I think after all the land that B owns is worth at most only 1 dollar, and no more."
(8) A also thought the same way.
(9) Nobody wanted to buy land anymore.
* So, in the end, A owns the 2 dollar coins, his net asset is 2 dollars.
* B owed C 2 dollars and the land he owned which he thought worth 4 dollars is now 1 dollar. So his net asset is only 1 dollar.
* C has a loan of 2 dollars to B. But it is a bad debt. Although his net asset is still 2 dollars, his Heart is palpitating.
* The net asset of the country = 3 dollars again.
(10) So, who has stolen the 3 dollars from the country? Of course, before the bubble burst B thought his land was worth 4 dollars. Actually, right before the collapse, the net asset of the country was 6 dollars on paper. B's net asset is still 2 dollars, his heart is palpitating.
(11) B had no choice but to declare bankruptcy. C as to relinquish his 2 dollars bad debt to B, but in return he acquired the land which is worth 1 dollar now.
* A owns the 2 coins; his net asset is 2 dollars.
* B is bankrupt; his net asset is 0 dollar. (He lost everything)
* C got no choice but end up with a land worth only 1 dollar
* the net asset of the country = 3 dollars.
************ **End of the story; BUT ************ ********* ******
There is however a redistribution of wealth.
A is the winner, B is the loser, C is lucky that he is spared.
A few points worth noting -
(1) when a bubble is building up, the debt of individuals to one another in a country is also building up.
(2) This story of the island is a closed system whereby there is no other country and hence no foreign debt. The worth of the asset can only be calculated using the island's own currency. Hence, there is no net loss.
(3) An over-damped system is assumed when the bubble burst, meaning the land's value did not go down to below 1 dollar.
(4) When the bubble burst, the fellow with cash is the winner. The fellows having the land or extending loan to others are the losers. The asset could shrink or in worst case, they go bankrupt.
(5) If there is another citizen D either holding a dollar or another piece of land but refrains from taking part in the game, he will neither win nor lose. But he will see the value of his money or land goes up and down like a see saw.
(6) When the bubble was in the growing phase, everybody made money.
(7) If you are smart and know that you are living in a growing bubble, it is worthwhile to borrow money (like A) and take part in the game. But you must know when you should change everything back to cash.
(8) As in the case of land, the above phenomenon applies to stocks as well.
(9) The actual worth of land or stocks depends largely on psychology (or speculation).
Our Birth Date describes who we are, what we are good at, and what our inborn abilities are. It also points to what we have to learn and the challenges we are facing.
To figure out your Birth Number, add all the numbers in your Birth Date together, like in the following example, until there is only one digit.
A Birth Number does not prevent you from being anything you want to be, it will just color your choice differently and give you a little insight.
Example: March 20, 1950
3 + 20 + 1950 = 1973
1 + 9 + 7 + 3 = 20
2 + 0 = 2
2 is the Birth Number to read for the Birth Date in the example.
Keep going until you end up with a single digit number.
#1 THE ORIGINATOR
#2 THE PEACEMAKER
#3 THE LIFE OF THE PARTY
#4 THE CONSERVATIVE
#5 THE NONCONFORMIST
#6 THE ROMANTIC
#7 THE INTELLECTUAL
#8 THE BIG SHOT
#9 THE PERFORMER
# 1 - THE ORIGINATOR - 1's are originals. Coming up with new ideas and executing them is natural. Having things their own way is another trait that gets them labeled as being stubborn and arrogant. 1's are extremely honest and would do well to learn some diplomacy skills. They like to take the initiative and are often leaders or bosses, as they like to be the best. Being self-employed is definitely helpful for them. Lessons to learn: Others' ideas might be just as good or better; and to stay open minded.
{Famous 1's - Tom Hanks, Robert Redford, Hulk Hogan, Carol Burnett,Wynona Judd, Nancy Reagan, and Raquel Welch.}
#2 - THE PEACEMAKER - 2's are the born diplomats. They are aware of others' needs and moods and often think of others before themselves. Naturally analytical and very intuitive, they don't like to be alone. Friendship and companionship are very important and can lead them to be successful in life; but, on the other hand, they'd rather be alone than in an uncomfortable relationship. Being naturally shy, they should learn to boost their self-esteem and express themselves freely and seize the moment and not put things off. {Famous
2's - President Bill Clinton, Madonna, Whoopie Goldberg, Thomas Edison, and Wolfgang Amadeus Mozart.}
# 3 - THE LIFE OF THE PARTY - 3's are idealists. They are very creative, social, charming, romantic, and easygoing. They start many things but don't always see them through. They like others to be happy and go to great lengths to achieve it. They are very popular and idealistic. They should learn to see the world from a more realistic point of view.
{! Famous 3 's - Alan Alda, Ann Landers, Bill Cosby, Melanie Griffith, Salvador Dali, and Jodi Foster
# 4 - THE CONSERVATIVE - 4's are sensible and traditional. They like order and routine. They only act when they fully understand what they're expected to do. They like getting their hands dirty and working hard. They are attracted to the outdoors and feel an affinity with nature. They are prepared to wait and can be stubborn and persistent. They should learn to be more flexible and to be nice to themselves. {Famous 4's -Neil Diamond, Margaret Thatcher, Arnold Schwarzenegger, Tina Turner,
Paul Hogan, and Oprah Winfrey}
# 5 - THE NONCONFORMIST - 5's are the explorers. Their natural curiosity, risk taking, and enthusiasm often land them in hot water.They need diversity, and don't like to be stuck in a rut. The wholeworld is their school and they see a learning possibility in every situation. The questions never stop. They are well advised to look before they take action and make sure they have all the facts before jumping to conclusions.
{Famous 5's - Abraham Lincoln, Charlotte Bronte, Jessica Walters, Vincent Van Gogh, Bette Midler, Helen Keller and Mark Hail.}
# 6 - THE ROMANTIC - 6's are idealistic and need to feel useful to be happy. A strong family connection is important to them. Their actions influence their decisions. They have a strong urge to take care of others and to help. They are very loyal and make great teachers. They like art or music. They make loyal friends who take the friendship seriously. 6's should learn to differentiate between what they can change and what they cannot.
{Famous 6's - Albert Einstein, Jane Seymour, John Denver, Meryl Streep, Christopher Columbus, and Goldie Hawn}
#7 - THE INTELLECTUAL - 7's are the searchers. Always probing for hidden information, they find it difficult to accept things at face value. Emotions don't sway their decisions. Questioning everything i life, they don't like to be questioned themselves. They're never off to a fast start, and their motto is 'slow and steady wins the race.' They come across as philosophers and being very knowledgeable, and sometimes as loners. They are technically inclined and make great researchers uncovering information. They like secrets. They live in their own wor ld and should learn what is acceptable and what is not in the world at large.
{Famous 7's - William Shakespeare, Lucille Ball, Michael Jackson, Joan Baez, Princess Diana, and Vince Ricciardi}
# 8 - THE BIG SHOT - 8's are the problem solvers. They are professional, blunt, and to the point, have good judgment and are decisive. They have grand plans and like to live the good life. They take charge of people. They view people objectively. They should learn to base their decisions on their own needs rather than on what others
want.
{Famous 8's - Edgar Cayce, Barbra Streisand, George Harrison,
Jane Fonda, Pablo Picasso, Aretha Franklin, and Nostradamus.}
#9 - THE PERFORMER - 9's are natural entertainers. They are very caringand generous, giving away their last dollar to help. With their charm, they have no problem making friends and nobody is a stranger to them. They have so many different personalities that people around them have a hard time understanding them. They are like chameleons, ever changing and blending in. They have tremendous luck, but also can suffer from extremes in fortune and mood. To be successful, they need to build a loving foundation.
{Famous 9s - Albert Schweitzer, Shirley MacLaine,
Harrison Ford , Jimmy Carter, and Elvis Presley}
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