Alternative Access - January 2020

THE US SHOULD DISENGAGE FROM NATO

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A Significant Trend There are other challenges to seeking investors for a family PE fund, including potential additional disclosure, reporting, and other requirements regulated by the Securities and Exchange Commission. This means that wealthy families accustomed to private trusts and similar arrangements risk public scrutiny of what they have long considered private matters. Still, Ryan Harris, a partner with Kirkland & Ellis, reports there has been “a significant trend in the last 12–24 months in families inquiring about these vehicles and starting to implement them.” According to Mr. Harris, part of the driver is that larger PE firms and other institutional investors are now offering longer hold periods, mitigating what has been a traditional differentiator for wealthy family PE funds and private offices. In response, a family fund leveraging third-party capital can be competitive on larger transactions but also focus on founder deals in industries where they have actual operating experience and offer flexibility and creativity in how the deal is structured. Either way, the trend of family PE groups matching the sophistication and resources of traditional firms is gaining momentum and has the potential to disrupt that model. “The old days of families passing the hat is not a sustainable model in today’s market,” says Paul Carbone, president and managing partner of Pritzker Private Capital. “Families are deploying capital directly and using a more innovative approach that reflects a need for speed, flexible capital to write a bigger check, and a professional team to go toe-to-toe with other firms. We see more and more families taking this approach.”

By David K. Lifschultz CEO of Genoil, Inc. and the Lifschultz Organization of New York City, founded in 1899.

Russia to build them up against China as Germany was built up against Russia. The 1972 alliance of the U.S. and China against Russia, and the later death of Mao, led to the U.S. pushing China up at the expense of Japan who was forced to shift to fiscal deficits rather than currency rigging to maintain their economy. Trump’s grand strategy is as follows: He wants to build up Russia as a balance against the EU and China and that the United States should withdraw their armed forces from Asia and Europe while these powers balance between themselves. Hence, we would have a strong Europe, a strong China, and a strong Russia, and Trump would like everyone to be friends. The U.S. as England in the past would be the grand sea power that could aid that balance. The error of England was that it involved itself in land wars in Europe quite unnecessarily as to quote Lord Halifax in 1694: “Englishmen, look to your moat.” England self-destructed. Today land wars are taking the form of trade wars based on currency rigging as what appears to be a carpet- bombed Detroit. In the above plan, the U.S. pulls our troops out of all overseas commitments, except those dealing with sourcing vital natural resources only required for the U.S. economy, and lets the currencies float against each other by ending dirty floating and eliminating the balance of payments deficit of $621 billion and the net deficit investment position over $10.6 trillion. We can cut our military by 75% in manpower and substantially increase salaries on the balance to hire technologically sophisticated recruits that can handle modern weapons.

LETTER TO THE EDITOR OF THE FINANCIAL TIMES

Dear Editor:

I address two articles opposite the editorial page dated Oct. 30 by Martin Wolf on the fate of Japan and Robert Zoellick who writes that President Trump’s policies are unplanned and erratic. There were three main planks to the Trump election campaign which were to end illegal immigration, which was undermining the wages of the lower classes in the United States; stop currency rigging that had been going on since the end of World War II, which created the huge U.S. rust belt; and renew detente with the Russians to avoid an accidental nuclear war. The Japanese and Germans rigged their currency with the approval of the U.S. after Mao took over China and allied with

Sincerely, David K. Lifschultz

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