Your real wealth is your time and your freedom. Money is only a corresponding tool for your time It's a container to store your economic energy until the time you are ready to spend it But the whole world abandoned the use of real money and was tricked into using currency A deceitful imposter quietly steals your two most valuable assets Your time and your freedom. Welcome to the rabbit's cage. We are on the verge of a financial crisis, which is considered one of the greatest crises the world has known. The transfer of wealth that will take place during this decade is the greatest in history. Wealth has not been destroyed. But it was transferred. This means that on the other side of every crisis there is opportunity. The good news is that all you need to do to turn this crisis into a great opportunity in your favor is educate yourself. I think the best deal you can make in your life is educating yourself Learn about the history of money.
Learn about finance. Learn about the way the global economy works Learn about how all these guys, the central bankers, the stock market governors, how they can cheat you, and swindle you. If you know what's going on and how the financial world works, you can put yourself on the right side of this wealth transfer. Winston Churchill once said: The farther you look into the past, the farther you can look into the future This program is to help you create your own crystal ball. To be able to see the future. To be able to turn this crisis, the biggest crisis in human history, into your great opportunity. The hidden secrets of money. Some of them are hidden but in front of everyone. As if it is right in front of you. The way the monetary system works is not entirely hidden from us all. It's exposed, but it's complicated and people just can't understand how it works. It is hard for them to imagine that we are living in such a hoax.
Others strive to be a secret, but the truth is slowly emerging. Such as the Federal Reserve being a private company and not really part of the United States government. But when I started studying this, what I found is that there is no place that I can direct people to where they can get the whole truth in one place. Mainly for this reason, I decided to write my book on this subject to consolidate the history of the monetary system, the economy, the markets, and the foundations of gold and silver. There is a lot of smoke and mirrors in the economy, and my business is kind of raising fog in front of people. Welcome to Egypt. This is where it all began. About 5,000 years ago, the Egyptians began using gold and silver as their primary form of currency, – But it wasn't money yet.
Pieces of gold and silver were used in different sizes and weights. And with different degrees of purity. So it was still not negotiable as each unit is the same unit corresponding to it. This means that nothing has a real price yet. You can't put a price tag out of a number of coins for something because they don't have money yet. Trade was still tough. It was still a guessing game when values were exchanged. One of the reasons for the financial turmoil we are in today globally is that people do not understand the difference between currency and money. Currency is a medium of exchange, unit of account, portable, durable, divisible, so called fungible. Replaceable means that each unit is the same unit as its next. A dollar in my pocket buys the same dollar in your pocket. Money is all of these things in addition to maintaining its value over a long period of time.
Even your financial planners, bankers, and accountants don't understand the difference between currency and money. The currency in your pocket is a medium of exchange. It is a unit of account because it holds numbers. It's moderately sturdy, it's portable, it's divisible means you can divide it into change, and it's replaceable. A dollar in my pocket buys the same dollar in your pocket. But because governments can print more, more and more of them, and weaken the stock of currency, – It is constantly moving wealth out of your pocket, from your bank account. To the government and the banking system. The reason why gold and silver are the optimal form of money lies in their properties. It is an easy way to exchange because gold and silver store a large amount of value in a very small space. It's a unit of account. Pure gold has the same value throughout the planet. Whereas, a piece of gold buys the same amount here in Egypt or in China or in the United States. It is sturdy. The same gold that the Egyptians used in trade 5,000 years ago is still here with us today.
It does not rust. It is divisible. You can convert it to change. It is very (easily) portable. You can use something like oil as money. But you cannot carry it on your back and walk around It is replaceable. Pure gold is the same wherever it is on earth. Pure silver is the same wherever it is on earth. But its quantity is limited This is why it maintains its purchasing power. Governments cannot print it. Over the past 5,000 years, only gold and silver have maintained their purchasing power.
There were thousands and thousands of paper currencies. Coins that are not backed by gold or silver, and all of them have expired to zero! He failed 100 percent. Well, paper currency, of course, is government-ordered currency. They have their own presses, and rolls of paper money are issued by those printing presses. After that, an order is issued to make it the official currency. It's just a worthless piece of paper, but when Ben Bernanke (Central Bank Governor) signs it, and they do their holy meeting, At FOMC meetings, it suddenly becomes a currency. If you look at what's really going on, it's a bluff game.
Therefore, you must trust them. Well …., the Fed is very vocal about what it's doing. If you read their website, they will tell you that it is a game of trust. They tell you that there is no intrinsic value in their money. They'll tell you that they printed it unsupported by anything at all. They are, in fact, displaying all of these facts. But if you tell someone on the road that this coin was created out of nowhere, there is nothing to support it Absolutely useless, and as worth as Monopoly money (the famous game), they will look at you as if you are crazy. Is there an example in the history of paper money, of a piece of paper unsupported by anything that survived (from collapsing)? The short answer is, no.
The long answer is, no. The reason is, When Addison took over (economist) _Daily Rukonink_ (a financial advisory firm), Bill Bonner (an American writer on economics) asked him to index all of the banknotes throughout history and what happened to each of them. Edison sincerely went to work. Within a short period of time, in alphabetical order. All banknotes starting with the letter A are indexed. It all ended at zero. And he had counted half of the notes that started with the letter B, – And counted 600 of them in the first letter and half of the second letter of the alphabet only. And every one of them ended to zero …..
Each one?!. 600 of those banknotes that start with the letter A, and the other half of those that start with the letter B, there are 600 of these things !!. None of them still exists. And do you think this currency, the US dollar, will be the first to survive after all? I do not think so. No, no paper currency has survived before. not even one. When it comes to money, there is a widely accepted definition of money. The question is if you apply this definition to certain things that people assert as money, do they match this definition? Well we'll take the paper dollar for example. How will he do those jobs? Does it store value? The dollar has lost 95% of its purchasing power since the creation of the Federal Reserve in 1913.
So it is not good enough to store the value. If I want to do something to get the audience's attention I'll put a slide and there are three pictures on the slide. One of them is a pile of Monopoly money. The second is for a pile of Federal Reserve currency. Which Americans call money. The last is for a piece of American gold coin. The title of this slide is: Which of these is different? And if you know Sesame Street (Open Sesame Street) or if you have kids watching it, it's one of the short segments on Sesame Street. It's actually a kind of IQ test for five-year-olds. They are supposed to look at three objects, compare their properties, and try to find the different piece. Well …., I showed this slide to a group of Evie professors (an association of the eight largest universities in America), and I showed it to a group of five-year-olds as well.
Like my nephews, my sister's kids, and so on … And when the university professors looked at the slide and said well, it is clear that the country is different from the rest – Because gold is not used as money, Monopoly money is fake, and the US dollar has value. So it is not like the rest. But the kids looked at the chip and said, The gold coin is not the same as the rest Because the rest are just piles of paper, and the gold coin is clearly something different. So my question to the audience is who is smarter? Five-year-old child or Ivy League professor? Before World War I, every coin issued by the Treasury said that 20 gold dollars were deposited. In the United States Treasury is payable to bearer upon request. The money was in the basement (the treasury).
And the coin was a receipt they gave you as a check. Just a check for money (you can exchange it for money). As if you went to the clothes cleaner (iron), and gave him your shirt and he was giving you a receipt for your shirt. The value is, your shirt at the laundry detergent. Not the piece of paper that says you own that shirt. So our currency in circulation …. the piece of paper, the US dollar, was just a check (receipt) for the money. The next hidden secret is the difference between currency and money. Money must preserve its value and maintain purchasing power over long periods of time. As we go through this series, you'll learn that national currencies are actually a tool used by the government – And the financial sector, to absorb your time and freedom by stealing your purchasing power.
Instead of saving your economic energy, currencies waste it. Now compare that to the gold and silver that the Egyptians used to use. As I said at the beginning of the episode, it is not money yet because it is still not negotiable. But they were on the right track, as gold and silver have proven over thousands of years to be an indefinite store of value. Gold is only formed when a star explodes … a supernova and remains forever. This is one of the characteristics that make him the ultimate absolute money. You know, people are amazed that 5000 years later, the pyramids are still around. But what surprises me most is that the currency used by the people who built these pyramids, – That currency, gold and silver that they used to trade on a daily basis, is still here today. It may have been melted down and remodeled into a coin or ribbon in a jewelry set. But she is still with us today and is still buying something.
Yes, it is money in the end because nothing else is ranked. It is divisible. It is permanent. It is a portfolio of value. It's, uh, a unit of account. It has everything you want with money, but it doesn't wear out and can't be increased. This is what makes gold the most beautiful money ever. What do you want more than money? It keeps governments under control.
You can maintain a liquidity system. Governments do not like gold nowadays because they go with fiat currencies, and they will do everything in their power to discredit it as an asset (of value). I mean, my God … gold has outperformed the Dow Jones Industrial Average in all the past seven years. But it is not considered a class of legitimate assets. Why? Once again, it is the fear that gold will be imposed on the system. In a way that restricts the government's ability to spend beyond its means. They cannot print it. They can't print it, no. . . Inflation Correct definition of inflation, I use Milton Friedman's definition (American economist and Nobel Prize winner in Economics 1976). Inflation is the excess of the stock of currency. Deflation is the shrinking of a stock of currency. If you increase the stock of currency, eventually the prices will rise. If you reduce the stock of currency, prices will fall.
This is a basin. But not a water basin. This coin basin …. and these are prices. And if you increase the stock of the coin, the prices are like a sponge in the water should rise to absorb the excess currency. Governments never stop printing more currency and adding it to the circulating currency. Therefore, prices keep going up. Not because the things you are trying to buy change. In fact, it does not change. What changes is the purchasing power of the currency, which is decreasing and decreasing. The currency is falling. It is not the prices that are going up. The truth is, what we have is now making our world a big fake. None of it is real. It's all just promises. And if you think about it, it's about the way the currency started to spread. You know, before we had a coin we had the barter.
I'll give you three pieces of coconut and you give me four fish … that's kind of a fair exchange … coconut for fish. But that got complicated so we had to invent this thing called money, as it is divisible, an interchange. And the challenge is that we lost that long ago. We lost valuable items to be our currency. Now we have these things called numbers and accounts. But trust me. It is not real. It's a big made-up story. One of the biggest fairy tales ever, called quantitative easing, and it sounds complicated, – But it is really just a disguised term for currency printing. Quantitative easing operations began with bank bailouts in 2009. A currency was created out of nowhere, and then given to the banks that paid themselves record rewards for destroying the global economy. This is a global phenomenon, but all you have to remember now is any of these processes: quantitative easing, rescue operations, or stimulus programs, – These are all just juggling, hoaxes, scams, to overprint the coin. I believe that gold and silver will assert themselves again as money and when that is done, there will not be enough of them.
And thus their purchasing power will increase many, many, and many times (meaning 1g of gold will buy you a house …. approximately P :)). Egypt is an amazing place. There is something cheerful here, the chaos is overwhelming. Especially the traffic. When it comes to merchants they try to get every penny in your pocket – You are robbed until you get home with an empty wallet. But do you know anything? They are amateurs compared to Wall Street. In the past few years, I have spoken in many countries about the coming crisis, – And a lot of people think they will be fine in their country. And that will only happen in the United States or perhaps the United States and Europe. But what they don't realize is that this is a global phenomenon. I'll show you something here. This is … US currency reserves. That's how many paper dollars there are in the first place. It took 200 years to go from $ 0 to $ 825 billion. And then we had the bank rescue, and then we had QE1, QE1.
Then QE2. Then we had QE3 then QE4 and soon we would have QE57 and maybe QE382. And, uh, it doesn't just happen here (the US). This is what the Canadian currency stock looks like, for example. This is Australia. South Africa. Russia. Now, that started in 2001, that's 18 times more currencies, in just over a decade. And here is Singapore. Same story. Look at that. Days since the outbreak of the crisis …. India. China. Every government on earth – Do the same thing, this insane deficit (spending more than revenue) and inflation of their currency, and then carry out bailouts. And history shows that there is no example of that transformation. It is sometimes surprising that we have not seen more inflation than we currently have.
Since they are constantly increasing the stock of money (currency) to a large extent, why do not our prices rise faster than they actually do? The answer is that a large part of the money created by the Federal Reserve is exported abroad. I remember at the beginning of my research that I heard this expression, – The Americans exported their own inflation !! -. I thought … What is this ?! How do you export your inflation? You put it in a box and send it out? What are you doing? But now I get it.
You're exporting inflation simply by sending all these dollars that you created to those other countries – And then they send you their fridges, their cars, whatever, their televisions. Where you get devices and they get little pieces of paper. It's a great deal for the American people … for a while. For a while. Sooner or later each of those pigeons 🙂 will come home to crouch. When the time comes, and as it seems to be now, when the rest of the world says: Well ….
We don't want to play this game anymore. Uncle Sam's dollars are worthless. There are too many of them. We found something other than US dollars. Then all those dollars start to return to America. People: We don't want it anymore. What will we do with it? When those (dollars) begin to return quickly, and a small amount of money has started to return, which we had previously issued, – When it becomes floods and starts to burst back, then we are regaining our previous inflation that we exported. Then we'll see the amount of money in the United States increase more quickly, even – From the Fed's ability to print it, because we're getting our previous money back. And then we'll really see what a US dollar tanker can buy. During the second process of quantitative easing, world food prices rose by 60%, – This led to a humanitarian catastrophe for the 2 billion people on Earth, who live on less than two dollars a day. Those people who were already hungry. They became hungrier, and some of them began to bring down their governments in North Africa and the Middle East. So quantitative easing was the spark that ignited the Arab Spring.
That's it. When the money arises, you have inflation. It just depends on where the inflation is going. Given the assumption that you have a permanent underclass or poor class and how inflation affects them disproportionately, It mainly affects the proportion of their income that goes to food. And we look at it as a ratio, and we know that there are (critical threshold) risk points. For example in Egypt recently, when that percentage reaches 40% of income, it goes for food – And food prices rise because of inflation, when it reaches 40% this (considered) historically a point at which people start a revolution. This is exactly what we saw. The French Revolution, likewise, was due to the arrival of food prices at a certain critical point, where people simply, were finding that profit and loss accounts were in favor of the revolution.
Well, it's true because when you have hyperinflation, it's a punishment for the most productive people in society. In other words, people who produce more than they consume and make the difference. The problem is that these productive people, the savers, save money in the national currency – Unfortunately, the national currency is only an official piece of paper at this stage. So when the currency collapses during hyperinflation, that $ 100,000 you had hoped to depend on after retirement no longer exists. And the things that you would buy with those dollars and save for others also do not exist, what do you do now? So … everything looks very scary. However, as you know, this is what will happen, and you should act rationally.
But the great news is that gold and silver always end up accounting (trial) inflation. It is basically the will of the people and free markets. When governments do this kind of thing to stockpile their currency, they depreciate, and eventually it turns into inflation. People feel they are losing their purchasing power. They hurry back to gold and silver, and the value increases – Gold and silver in the country until it reaches or exceeds the value of all the currency in circulation.
This process has happened repeatedly throughout history, but this time it is taking place on a global scale. Never before in all countries at the same time. This means that this is the greatest transfer of wealth in history. So it is the greatest opportunity in history and it will never happen again in your life. We learned that your true wealth is your time and your freedom. Money is a trading tool that stores the economic energy which is your time and freedom while currencies leak it. Gold and silver are absolute money simply because of their properties. And paper currencies depend on trust only and always return to their true value …. zero. Governments do not like gold because it places restrictions on it. High prices are a symptom of currency inflation – Gold and silver always eliminate currency inflation.
So that's all for this episode. Join me in the next episode. We'll see how only the history of the financial system repeats and repeats – And how gold and silver always win the battle between currency and money. Until then, my challenge is to stop calling coin money. It is the crucial first step to freeing your mind from all this quackery and economic sorcery and changing your life. You can learn more by watching the additional paragraphs on our website and if you have any questions you can ask them there – We will answer some of your questions in additional paragraphs in the future. So ….. Good luck. thanks for watching. We'll see you next time. good morning. Fabulous. What is the meaning of "paper currency"? It's the Latin word for "very bad car." I'm in the desert and I'm wearing a suit. My cameley died. You are not sure about this? Huh? I'm ready for ….
long nap. Hello, welcome to this extra paragraph for the first episode of the hidden secrets of money, and- Its title is the currency for money. So this is, the main topic..