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Your true wealth is your time and freedom. Money is just a tool
It's a container to store your economic energy until you're ready
But the whole world has been turned away from real money and has
a deceiptful imposter that is silently stealing your two most
Your time and your freedom. Welcome to the rabbit hole.
We are entering a period of financial crisis that is the greatest
The wealth transfer that will take place during this decade is the
Wealth is never destroyed. It is merely transferred.
And that means that on the opposite side of every crisis there is
The great news is that all you have to do to turn this crisis into
I believe that the best investment that you can make in your
Education on the history of money.
Education on finance. Education on how the global economy works.
Education on how all of these guys, the central bankers, the stock
If you learn what is going on and how the financial world works,
Winston Churchill once said that the further you look into the
This program is all about creating your own crystal ball.
Being able to gaze into the future.
Being able to change this crisis, the greatest crisis in the
The hidden secrets of money. Some of them are hidden in plain
They're like right in front of you.
Uh, the way the monetary system works is something that isn't
It's out in the open, but it's complex and people just don't, they
It's hard for them to imagine that we're living in such a hoax.
Others are meant to be secret, but the truth is slowly coming
Like the Federal Reserve being a private corporation and not
But when I started studying this, uh, what I found was that there
And so I basically decided to write my book about it and
There's a lot of smoke and mirrors in economics, and I've sort of
Welcome to Egypt. This is where it all began.
Roughly 5,000 years ago, the Egyptians started using gold and
The pieces of gold and silver that they were using were odd sizes
So it still was not interchangable where each unit is the same as
You couldn't put a price of so many coins on something because
It was still a guessing game when it came to the exchange of
One of the reasons that we are in the financial mess that we are
Currency is a medium of exchange, a unit of account. It is
Fungible means that each unit is the same as the next unit.
A dollar in my pocket buys the same amount as a dollar in your
Money is all of those things plus a store of value over a long
Even financial planners, bankers, your accountant, they don't
The currency in your pocket is a medium of exchange. It's a unit
It's somewhat durable, it's portable, it's divisible in that you
A dollar in my pocket buys the same amount as a dollar in your
But because governments can print more and more and more of it and
it's continually transferring wealth out of your pocket, out of
The reason that gold and silver are the optimum form of money is
It's an easy medium of exchange because gold and silver store a
It's a unit of account. Pure gold has the same value all over the
So an ounce of gold buys the same amount here in Egypt as it would
It's durable. The same gold that Egyptians were using in trade
It does not corrode. It's divisible.
You can make change with it. It's very portable.
You can use something like oil as money. It's just that you can't
It's fungible. Pure gold is the same wherever it is on earth.
Pure silver is the same wherever it is on earth. It's limited in
That's the reason that it maintains its purchasing power.
Over the last 5,000 years, only gold and silver have maintained
There have been thousands upon thousands of fiat currencies.
Currencies that are unbacked by gold or silver, and they have all
Well, fiat currency, of course, is um, a currency that is, exists
They have their printing presses, and the paper money rolls off
And then they give it the fiat designation which then makes the
It's just worthless paper, but when Ben Bernake gives it the
at the Federal Open Market Committee meetings, it suddenly becomes
If you look at what's really going on it's, it's a con game. And
Well, the Federal Reserve is very forthright about what they're
If you read their website they'll tell you it's a confidence
They tell that there's no intrinsic value in their money.
They'll tell you that they print it backed by absolutely nothing.
They actually display all these facts.
But if you tell somebody in the public that this stuff is created
, it's absolutely worthless, it's about as valuable as Monopoly
Is there an example throughout history of a fiat currency, a piece
Long answer, no. And here's why.
When Addison Wiggin took over at The Daily Reckoning, they got
Uh, Bill Bonner asked him to catalogue all of the fiat currencies
Addison dutifully went to work. Within a short period of time he
They all went to zero. He was halfway through the letter B and
and there were 600 of them in just the first letter and a half of
And every single one of them went to zero. Every one.
600 fiat currencies that start with the letter A, and half of the
And you think this one, the United States dollar is gonna be the
No. No currency, fiat currency has ever survived.
The thing about money is there actually is a fairly well accepted
The question is as you apply that definition to particular things
Well just take the paper dollar for example. How well does it
Will it store a value? Uh, the dollar has lost 95 percent of its
So not very good as a store of value.
One of the things I do is, uh, just a way to get the audience's
One is a pile of Monopoly money. The other one is a pile of
Uh, what Americans would call paper money.
Uh, the other one is a solid gold, uh, American Eagle, uh, one
And the title of this slide is which of these is not like the
And if you know the show Sesame Street or if you have children who
And what it really is is a kind of IQ test for five year olds.
They're supposed to look at the three things and look at
Well, I've shown this slide to, um, groups of, you know, Ivy
You know, kind of find results in my nieces and newphews and so
Uh, and when the, uh, professors look at it they say well, um,
'cause gold has no role as money and Monopoly money is junk and
So that's not like the other. But the children look at it and
because the other two are just piles of paper, and the gold coin
So my question to the audience is who's smarter? A five year old
Before World War I, each note that a treasury issued would say
20 dollars in gold coin payable to the bearer upon demand.
The money was in the vault. The currency was a note they gave you
Only a claim check on the money. The same as if you go to the dry
The value is, is that shirt at the dry cleaners. Not the piece of
So our currency that's circulated was the paper U.S. dollars and
The next hidden secret is the difference between currency and
Money must be a store of value and maintain its purchasing power
As we progress through this series, you'll learn that national
and the financial sector to leach away your time and your freedom
So rather than storing your economic energy, currencies leak.
Now compare that to the gold and silver the Egyptians were using.
Like I started with, it still wasn't money because it wasn't
But they were on the right track as gold and silver have proven
Gold is only formed when a star explodes, a supernova. And it
This is one of the properties that make it the ultimate money.
You know, people are amazed that after 5,000 years the pyramids
But what I'm more amazed at is that the currency that the people
that currency, that gold and silver that they were using in trade
It may have been melted down and re-refined and it's in a coin or
But it's still with us today and it still purchases something.
Yes, it is the ultimate money because there is nothing else even
It's permanent. It's a store of value.
It's, uh, a unit of account. It's got everything you want out of
That is what makes gold the most beautiful money of all. What
It keeps governments under control. You can maintain a solvent
Governments don't like gold at present because they're getting
I mean, my goodness. Gold has, uh, outperformed the Dow Jones
Uh, yet it's not considered a legitimate asset class. Why?
Again, it's the fear that maybe gold will be imposed on the
That it will constrain government ability to spend beyond its
The proper definition of inflation, I use Milton Friedman's
Deflation is a contraction of the currency supply. If you expand
And if you contract the currency supply, eventually prices will
This is a pool. But it's not a pool of water.
This is a, the currency pool. And these are prices.
And if you expand the currency supply, prices like a sponge in
Governments never stop printing more currency and adding currency
Therefore, prices keep on going up. Not because they stuff that
The real estate doesn't change. What has changed is the currency
It's the currency going down. Not prices going up.
The truth is, what we have that makes our world work right now is
It's all just promises. And if you think about it, that's how
You know, before we had currency we had barter.
I'll give you three coconuts and you give me four fish 'cause
But that got complicated so we had to invent this thing called
And the challenge is that we've lost that a long time ago. We
And now we have this thing called numbers and accounts. But trust
It is not real. It's a big made up story.
One of the biggest make believe stories ever is called
but it's really just a smoke and mirrors term for currency
QE started with the banking bailouts back in 2009.
This currency was created out of thin air and then given to the
This is a global phenomenon, but all you have to remember for now
these are all just voodoo, hocus pocus terms for increased
I believe gold and silver will reassert themselves as money and
And their purchasing power is going to go up many, many, many
Egypt is an amazing place. There's a franticness about it, an
When it comes to like all of the merchants that are trying to get
you get fleeced to the point where you come back with an empty
But you know what? They're amateurs compared to Wall Street.
In the past several years, I've, I've spoken in many countries
and a lot of people think that they're gonna be okay in their
That it's only gonna happen in the United States or maybe the
Uh, but what they don't realize is that this is a global
I got to show you something here. This is, uh, base currency in
This is the number of paper dollars that exist basically.
It took 200 years to go from no dollars in existence to 825
And then we had the bailouts, and then we had QE1, Quantitative
Then QE2. And then we had QE3 and then QE4 and then soon we're
And, uh, it isn't just here. This is what the Canadian currency
This is Australia. South Africa. Russia.
Now this starts out in just the year 2001, and this is like 18
Uh, here's Singapore. Same story. Look at that. Since the
India. China. Every government on the planet is -
doing this insane deficit spending and expanding their currency
And history shows that there is no example of this turning out
It is sometimes amazing that we haven't experienced more inflation
If they keep expanding the money supply so vastly, why aren't our
And the answer is that a good chunk of the money that the Fed
Uh, I remember early in my research I heard this expression that
I thought what is that? How can you export your inflation? Put
Well now I understand. You export your inflation by simply
and then they send you their refrigerators and their cars and
So you get hardware and they get little pieces of paper. It's a
Sooner or later all of those pigeons come home to roost.
When the time comes as it looks like it's now coming, when the
Uncle Sam's dollars are just becoming worthless. There are too
We've got to find something else other than American dollars.
People, we don't want them anymore. What do we do with them?
Once this revs up and we've got this, this little trickle of money
when, once it becomes a flood and it starts to rush back, now we
And then we'll see the quantity of money inside the United States
even than the Federal Reserve can create it because we're getting
And, uh, that's when we will really see the tanking of the U.S.
During the second round of quantitative easing, global food prices
and this created a humanitarian disaster for the two billion
These people were hungry to start with. They became hungrier and
So quantitative easing was the spark that ignited the Arab
So that's, that's it. When you create money, you get some sort of
It just depends on where the inflation goes.
Given the premise that you have a permanent underclass or poor
um, it affects them basically in the percentage of their income
And we see this as a ratio, and we know that there are some danger
For example in Egypt recently, once that ratio got to 40 percent
and the price of food rising due to inflation, when it got to 40
That's exactly what we saw. The French Revolution similarly was
Well, exactly right because when you have a runaway inflation,
In other words the people that produce more than they consume and
The problem is is that those productive people, the savers, save
and unfortunately the national currency is just a fiat piece of
So when it's destroyed through runaway inflation, that 100,000
And the things that you were gonna buy with it and provide for
So that all seems pretty scary. However, uh, you know, this is
But the great news is that gold and silver always end up doing an
Basically the will of the public and the free markets.
When governments do this kind of stuff to their currency supply,
People sense the loss of their puchasing power. They rush back to
the gold and silver up in the country until it meets or exceeds
This is a process that's been going on over and over again
It has never before happened in all countries at once.
And that means that this is the greatest wealth transfer in
Therefore it's the greatest opportunity in history and it's not
So now we've learned that your true wealth is your time and your
Money is a trading tool that stores the economic energy that is
Gold and silver are the ultimate money simply because of their
Fiat currencies are based solely on confidence and always return
Governments don't like gold because it imposes restraint. Rising
and gold and silver always acocunt for an expanding currency
So that's it for this episode. Join me next time as we begin to
and how gold and silver always win the battle between currency and
Until then, my challenge to you is to stop calling currency
It's a crucial first step towards setting your mind free of all
You can learn more by watching the bonus features on our website
and we'll answer some of your questions in future bonus features.
So good luck. Thanks for watching. And we'll see you next time.
It comes from the Latin for crappy car.
You're not too sure about that are you? Huh?
I am ready for a, a good long nap.
Hi, welcome to this bonus feature for the very first episode of
uh, and this is currency vs money. So that's the, uh, major