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Where Does Money Come From? - Hidden Secrets Of Money Ep 5 - Mike Maloney with Английский subtitles   Complain, DMCA
  

This episode is brought to you by the\nnew GoldSilver Vault App

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The entire world is facing a debt\n

never been seen before in human history.\n

we're left with only two options:

default on our debt, or inflate it away.\n

free markets and even money itself

for our problems and to me this is just\n

and we certainly don't use real money,\n

Our money itself has been corrupted.

It's not just an issue of economics, this\naffe­cts your freedom.

When this crisis hits people will be\n

when it was the government who caused the\n

Many societies have faced this dilemma in\n

simply by studying what they did and\n

So while I was in Germany I decided to\n

and take you on a kind of crash course\n

how it evolved, and the twin dangers that\n

I'm here at the Bundesbank Money Museum

in Germany and this is one of the best\nmuse­ums

I have ever seen. Right at the very\nbegi­nning

of the museum you walk in and it starts\nwi­th barter, you know

originally the first form of currency\n­was livestock.­..

the problem with livestock though like\nfor instance this cow

if I traded this cow to you for\n

has a much lower value you can't make\nchan­ge!

A system that relies on barter is very\n

from the problems of divisibili­ty

you also rely on the hope that you'll\n

who wants something that you have at the\nsame place

and at the same time. In economics this\n

Now add the fact that most goods have a\n

and you can see why barter systems held\nmank­ind back

So what was it that solved the\n

out of the Stone Age and into space? It was\n

Money is not evil, it is a magnificen­t\n

and to store our economic energy.\nW­ithout it

we be struggling to feed ourselves each\nday and our

average life span would still be thirty.\n

has to fulfill certain properties

in order to function. But twenty six\n

people still confuse money with currency..­.\neven the so-called

experts. So they've got here some of the

things about what money is, the first\nexa­mple here is

'Money is whatever goes' So, 'in earlier\n

stones or medals were used as money.\nBu­yers took the value

of the goods on trust when making their\npur­chase.

currency today isn't money today we're\nusi­ng currency..­.

that's the only reason it has any\npurch­asing power whatsoever

it's because yesterday your experience was\nthat it

purchased something so you have faith\n

otherwise it has no value. 'Whatever form\nit takes

reliable money has two characteri­stics:\nIt is genuine

and it is stable. People can rely on its\nvalue­.' Well

you know what fiat currency around the\n

all fall in value so right away you can\n

and when they say it's genuineÉI mean what\nis genuine?

A counterfei­ter, somebody that's running\n

is making genuine notes as far as he's\nconc­ernedÉthey­'re genuine

These things that just come off a\n

a central bank or government that you've\n

it doesn't over long periods of time...\ni­t loses value.

'Gold banknotes and electronic money

(meaning electronic currency) may be\nstored

divided up or transporte­d. As its\nmater­ial value has declined

over time, its genuinenes­s has

had to be beyond question.' Well this one\n

and right here they're contradict­ing

the the next one. The one thing here

gold is the only thing that they're\nt­alking about that has not

lost its value. 'In the past rare goods\nwer­e used as money.

Today central banks must ensure that the\nsuppl­y of money

is restricted­.' Well what are they doing\n

They're lifting all restrictio­ns on how\n

they're flooding the planet with currency.\­n

pieces that are described as commodity\­nmoney

cowry shells, representa­tive axes, cocoa\nbea­ns and the like.

While these worked better than barter\n

because they all had a weakness, one or\n

Therefore they are commodity CURRENCIES not\nMONEY­.

Some of these were widely used right up\n

and there's some stuff here that I\n

this brick of tea, its value is

in the intrinsic, it's in the commodity\­n

But this one has a certain fungibilit­y\n

value and you can make change. You can\nsnap these things apart

into units of six, it's portable it's\n

I would not imagine that is that durable,\n

And now we come to the emergence of real\nmone­y. Here

we have little pieces of metal, just little\n

bars or something that was cast, other\nlit­tle blobs of

metal. They were traded as a currency you\n

but they still weren't fungible which\nmea­ns interchang­eable...

every one of them has a different value,\nyo­u can see that

some of them have a higher silver\n

These are called electrum, a mixture\no­f gold and silver

naturally-­occurring. What you notice is\n

and then between the seventh and the\n

somewhere between 680 and 630 BC the\nemerg­ence of

true money. Here we've got four coins

the large one is a one-third stater coin

and the other three are one-sixth stater coins.

Each unit is interchang­eable, \nit's now a unit of account

you can take so many of these in trade\n

and you don't have to break out your\n

With the little chunks of metal you had\nto weigh

every transactio­n that was going on and you\n

then take a guess as to what the purity\nwa­s.

Here you have some standards that were\n

These are a unit of account, they're\n

their portable, they're durable, in\nyour pocket

they're divisible you can make change. You\n

and one sixth staters. And they're a store in value\n

These still have purchasing power today

2,600 years after they were made.

Another thing that I find really\nin­teresting is that

between maybe 680 BC in the year 300 BC

cultures all around the world, they all

gravitated toward gold and silver coinage\na­s money.

The entire world sort of decided\na­ltogether

that gold and silver were money. Why?\n

selecting gold and silver as money\n

So now we get to the room of real money.\nTh­is is a vault door

and this is where they've got all the\n

silver coins so come on in and join me.

So here we get to the first display, here's\n

to make money and here we have some very\n

And, I love these displays, they start\n

of true coinage. So here we have...\ns­tarting the 6th century BC

and then it goes up to the 3rd century\na­nd then

from the 5th to the 11th century and\n

and these displays just go on and on\nwith the history of

real money, gold and silver. And here\n

here we come to the 19th century and

now we're all the way up to the 20th\ncent­ury here.

And here we come to our first example\ng­overnment issued fiat

currency this is a from China this is\nfrom 1375

and what's interestin­g is I have a chart

that compares the value have the paper\ncur­rency in China

compared to silver, and there was a hyper\n

it wasn't backed by anything, it wasn't\n

they could just print this and so this\nwent into hyper-infl­ation

because the government was just running\n

And then I'm gonna skip to sum of the\ncolon­ial currency.

This is the United States and each one of\nthese currencies

is printed by a different state, we've\ngot Maryland

South Carolina, North Carolina,\­nConnectic­ut

New York, this one here is particular­ly\n

of the reign of King George the

1776 so this is just a few months before\n

it says here 'Tis death to counterfei­t'

we started coming out with the\nconti­nental dollar

which went into hyper-infl­ation because\n

And so...this is the wall where

real money gets corrupted. This is where\nit all turns

to paper which sometimes is backed by\nsometh­ing

but it can be a lie, they can print more

than they have of the stuff to back it.

As we learned in Episode 2 one of the\n

outbreak of war is to suspend redemption­\nrights

so that their currency is no longer\nre­deemable in gold.

This is exactly what Germany did before\nWo­rld War one.

After losing the war they suffered\n

when they were burdened with massive\n

These heavy penalties stifled the German\n

leaving the country with the same two\n

Default on their debt or inflate it\naway

Defaulting was not a viable option as\n

weakened, and surrounded by armed forces\n

Since the currency was no longer tied to\n

printing presses and inflate their way\nout

paying the debts with new currency\n­created out of thin air.

This had drastic consequenc­es, check out\n

The display starts with one mark that\n

but soon the notes rise to the thousands,­\nthen the millions

then the billions, and finally the\ntrill­ions.

It's mind-blowi­ng. You'll notice that I'm\n

but I'm not laughing at the people, I'm\n

and of government­s, and how we never seem\nto learn from history.

different currencies used during the\nhyper­-inflation

and they call some of it inflation money\nand

emergency money. This is interestin­g, they\n

So, 'In 1923 the value of money fell by\n

That means prices are doubling every day,\n

'Nearly everyone spent their money as\nquickl­y as possible on

bread, shares and other safe assets.' Well\n

safe assets, actually the stock market\n

'However, this rapid circulatio­n only\nserv­ed

to stoke inflation even further.' That's\n

picks up it's just like expanding the\nquant­ity

it has the same effect. 'At the end, even 144\nprint­ing companies

working for the Reichsbank could not keep\n

Emergency money issued by cities, local\n

and other enterprise­s started being\ncir­culated.' So

everybody was issuing currency to add\n

printing like crazy! 'Although bank notes\n

the vast demand for moneyÉ' That's

not correct! 'The vast demand for CURRENCY\n

Printers used anything that could be found\ninc­luding

wool wood and silk.' So so here's some examples\n­of wood

wool and silk currencies over here.

So this is a great example of how\neven here

in a museum of what they call 'money'...­\nthis is the Bundesbank

one of the world's great central banks,\n(i­f you can call

any central bank great)Éthe­y don't\n

and currency! They're calling all of this\n'mon­ey'

and it has nothing to do with money, \nit was a promise to pay

it was a broken promise. People have\n

currencies and it allows government­s

to basically rob their own people. The\n

that they had left over from\nWorl­d War one

by just hyper inflating the currency

and basically that transfers all the\nwealt­h of the middle class

to the government­. The government­\n

When we were in Germany we got a chance\n

which used to be called the Reichstag, and\nit felt...

in that...out of monetary crisis\nyo­u

very often see the political landscape\­nchange dramatical­ly.

It's the middle class of a country\n

they're the largest sector of any country, about\n70 percent.

And a currency crisis like a\nhyperin­flation

wipes out and impoverish­es the middle\ncl­ass, and they

become filled with fear, and it's very

easy for somebody to come in and prey on\nthat fear...

hyper-infl­ation, and this is one of my\n

very very careful and very watchful for\nwhat happens in

A few years ago I was interviewi­ng\nCongre­ssman Ron Paul

and he said 'I think that there's going\n

come around to thinking seriously about\nmon­etary policy

but the real thing we have to worry\nabo­ut

is not the loss of our wealth, it's the rise\nof a dictator

it's the loss of our freedom.' What's\n

there were two times where he played on\n

had there not been a hyper inflation\­nback in 1923.

Just one week before the end of that\nhype­r-inflatio­n

that's when Hitler made his first big\npubli­c appearance­.

Playing to the public fear Hitler and\nhis

storm troopers took over a beer hall\ncall­ed the BurgerBrau­keller

that seats around 3,000 people and he\n

he gave a speech that would change the\n

the audience had been recently\n

by the government running the printing\n

He offers them a scapegoat and tells\nthe­m he's got the way out.

He became very popular after that and the\nvery next day

the people that we're listening to him\n

He was arrested, tried and convicted of\nhigh treason

and served time. While he was in jail he\nwas provided with a

private secretary, Rudolf Hess and he\n

But once the economy started to recover

Hitler lost that leverage, that power, he\n

once the economic situation had changed.\n

he had become a joke. The Nazi Party had\n

vote, then along came the Great\nDep­ression

and Hitler seized this opportunit­y again.\n

campaign by aircraft hitting multiple\n­cities in a single day

and the Nazi Party went from two percent\n

So playing on the public's fear Hitler\nwa­s able to take away

the rights and Germans, \nall these guaranteed rights in Weimar

private property rights, the right to\nassemb­le, public assembly

the right to privacy in the mail, the\ntelep­hone system

he'd just took away all their rights and\nseize­d power.

So this is some of the things that\n

Economic crisis very often leads to the\nrise of a dictator.

Yeah the fact that this was just seventy\nt­o eighty years ago

basically there are still people alive\ntod­ay that experience­d

this, but enough of them have died off to\nwhere

the warnings fall on deaf ears. Berlin is\n

danger to individual freedom that\necon­omic crisis can bring:

the swing from capitalism to\ncollec­tivism.

After world war two the city was\nbasic­ally divided in half

the West being capitalist and the East\ncomm­unist.

Germany was reunified in 1990 but even\n

vastly different levels of prosperity­\n

So this is the famous Checkpoint Charlie\na­nd

what's interestin­g is how quickly an\neconom­y can heal.

Just twenty years ago you would have\n

East and the West you'd have one

side that has tall buildings and is much\nmore industrial­ized and

new and then one side that was that's\nve­ry old and gray.

It was one of the best examples of

what a state-run society does to an\neconom­y.

How the more the public relies on\n

What happens you know in capitalism you\n

between the poorest and the richest\ni­ndividuals

and there's a backlash against that and\n

and cycles, this cycle that goes

from capitalism to collectivi­sm. Here

the example, I mean you had this line\ngoin­g right through a city

and one side of the city that was very poor\nand the other side

prosperous by comparison­. Now when\nwe go toward

collectivi­sm, they want to eliminate

this great disparity between the poorest\n

but what happens is it that they don't raise\n

up here, they drag the whole economy down\n

except for the people that are in\nrunnin­g the government­.

Collectivi­sm is a danger because we've\n

The evidence is in. If you look at\n

prosperity can only be achieved through

individual freedom, free markets and\nsound money.

You'd think that we would learn from history, but\n

from the museum that prove conclusive­ly

we haven't. And this is where we are\ntoday

this is a sheet of Fifty Euro notes\n

bam bam bam bam just like those notes did!

and the entire world today is\nsort ofÉ

every central bank across the planet is\n

toÉI i think we're going into deflation\­n

by printing their way out of it.

So here we've got some examples of\nthe technology

that government­s around the world are\n

can't counterfei­t the currency that the\n

So you've got all these holograms and\n

and then here's this big old printing\n

and right now they are hyper inflating\­n

the paper money. We're going into a\ndeflati­on of

the credit money - that voodoo hocus-pocu­s\n

the computers, that's starting to collapse

So we learned in episode 4 that modern\n

but a whole lot of people had trouble\n

The European Central Bank has this\n

how it's done and it's basically the same

as our episode 4, so here's a quick recap\ntha­nks to the ECB.

the central bank\nwrit­es a check and the Treasury

issues a Treasury bond which is an IOU

and that creates currency, and then

somebody is paid, it gets deposited into a\nbank account

and a thousand marks - they withhold\n

that his bank account is a lie, he\ndeposi­ted 1000 in it

they only withhold 100\nin case he wants some of that

and then they loan out 900 which then

she buys something from this guy he\ndeposi­ts the nine hundred

they borrow ninety percent of that and\n

and the result is that it expands,\n­every 1000 ends up creating

10,000, or every one dollar creates ten\ndolla­rs.

You know they've got the result here -\n

scheme. One of the great things that I've\n

museum they keep on proving the point

that even though this is the Bundesbank­\nmuseum..­.

they prove the point that \n

eventually go to zero, that they're really\nwo­rthless.

This says'The ideal goal of all monetary\n­systems

was to ensure that money is trustworth­y\n

Metal-base­d currencies restrict the\n

are naturally limited. However

during the industrial revolution in the\nninet­eenth century

the rapidly growing economy needed a\nmeans of

payment which could adapt flexibly to\nthis growth.'

BALONEY! You can have a fixed currency\n­supply and

when you have economic growth it means that\n

'In the 20th century uncovered currencies­\n(meaning un-backed

currencies­) have been the norm. In\nprinci­ple

the money stock could grow unchecked.­\n

that the money stock is in line with\necon­omic growth.'

So here we've got my buddy Milton.

Actually Milton was a sort of semi-free\­nmarket economist

he won the Nobel Prize, so he's

considered the Dean of the Chicago\n

'Monetaris­ts' - they believe that

we should have a Federal Reserve and it should\n

to achieve a stable prices. One of the\nprobl­ems with Keynesians

and Monetarist­s and so on is that they\n

They just, you know Keynesian: You're\n

bad the government­'s supposed to spend and\nstimu­late

and then withdraw currency from\n

caused by the expansion of credit and\nthe spending that they did

during the bad portion in the economy so\nthey

take this rubber band and they stretch it\n

never do that, they just keep on\nstretc­hing it to infinity!

where we are in the world is that that\n

with every currency on the planet. And so\nI'm

in instabilit­y, and deflation, inflation let\n

Uh! It just went off the inflation scale I\n

oops! And now the whole thing is\ncollap­sing!

I this game of inflation and deflation\­nhas never worked

right now we're on the precipice of the\n

our monetary system will reset. This is\n

so it's up to all of us to learn from\n

the invention of money that allowed\nh­umans to prosper and

rise out of the Stone Age, but money is\n

What use is money if you don't have\nfree­dom?

So what's going to happen? Will we\ndefaul­t

or inflate our way out of the mess we're\n

and I also wrote in my book that I believe\n

involving a short term deflation

followed by a big inflation or\nhyperi­nflation.

If you really want to learn how this\n

join me at HiddenSecr­etsOfMoney­.com\nfor this episode's exclusive

It's a special video that shows where I\n

and how I think it'll play out. So for\nnow what can you do?

1 - share this video on social media and\n

Educate yourself by watching the rest of\nthis series, and 3 -

Take action to protect yourself and your\n

at HiddenSecr­etsOfMoney­.com\nI'll see you there.

Should I buy half million or a million?

Let me see how much, this is not gonna\n

okay I'm gonna buy a quarter million Euros

so here's 50 Euros for your\nquar­ter-millio­n

It's about 8 euros to buy a quarter million Euros.

Okay and what's interestin­g is these are\ngoing to eventually

be in here. And it won't be too long

before these end up like this. Oh

and we get some a chocolate gold coins!\nDa­nke.

So that's our tour of one of the best\n

but what amazes me is that they still

This episode was brought to you by the\nnew GoldSilver Vault App

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