Book Review: 5 Steps To Freedom

Book Review: 5 Steps To Freedom

The shackles of serfdom are being silently fastened to America. Every dollar Congress spends beyond its budget, every Federal Reserve Note printed, every tax, regulation, and government intrusion into our lives renders us less free. Ever wonder why it feels like it’s increasingly difficult to make ends meet? Remember the days when one spouse could work, the other raise the kids, and still save for a comfortable retirement? Those days are gone, but why? What’s next? The 5 Steps to Freedom: How To Cut Your Dependence On Institutions And Escape Financial Slavery, by Jeff Nabers explains what happened to our once prosperous society and how we can all take definite steps to escape what is to come.

Jeff Nabers begins the book with an overview of why Americans’ standard of living has been on the decline, and why it has much further to go:

  • Erosion of the Constitution, property rights, and individual freedoms
  • Growth of massive government with increasingly lavish taxation requirements
  • Stifling of U.S. business by over-regulating & levying ridiculously high rates of taxation
  • Perpetual inflation caused by Federal Reserve currency debasement

In America’s Effective Tax Burden: A Nation of Serfs, I showed how effective cumulative taxation has reached as high as 57% for middle class Americans. That equates to working 7 months of the year just to pay Big Brother! In the meantime, since 1987, when Alan Greenspan, assumed the role of Chairman of the Federal Reserve, the purchasing power of the U.S. dollar (USD) has been cut in half. The Federal Reserve has pursued a relentless policy of currency debasement since it came into existence, inflating away 98% of the dollar’s value since 1913.

When you consider that the typical housing payment is ~ 30% of income it is no wonder that the 57% net effective tax burden crushes most Americans. That leaves just over 10% of income for personal use, the tragedy being that most, if not all (or more), of this typically goes towards interest payments on debt! As Nabers argues, this is akin to financial slavery.

Fortunately, Naber’s offers a set of definite actions we can take in 5 Steps To Freedom that can break the shackles before they clamp too tightly. First, we need to regain orientation in our financial lives. Measuring our wealth against a perpetually debased USD obscures the real picture, often leading us to feel more secure in our financial lives than reality warrants. Naber’s shows how to create your own currency measure by analyzing your own consumption requirements.

Once you can measure your own net worth in an honest fashion, Naber’s shows how to preserve your savings and use excess capital to earn income. He dispels common misconceptions about investing, exposing various Wall Street products, like stocks and bonds, as shams designed to make money for Investment Bankers who peddle them. Rather, Naber’s advocates self-directed IRA’s and Solo 401(K)’s and creative direct investment in partnerships, royalty financing (revenue participation), small businesses, your own business, and a variety of real estate concepts.

If you have a nagging suspicion that something is wrong with our financial system, that your standard of living continues to drop as you work more hours-if you can’t shake the stress of working more than one job, while still falling behind on credit card payments-do yourself a favor and read the 5 Steps To Freedom. This book will not help you get-rich-quick, or magically change your life; rather, it will help explain what’s wrong with our system and how you can slowly extract yourself from its negative consequences.

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This post was written by:

Rob Viglione - who has written 224 posts on The Freedom Factory.

Rob Viglione is a Realtor, economic consultant, and manager of a derivatives trading partnership. Rob has written extensively for Seeking Alpha and The Freedom Factory.

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