0:00:02.040,0:00:05.540
You are about to learn one of the[br]biggest secrets

0:00:05.540,0:00:09.280
in the history of the world. It's a[br]secret

0:00:09.280,0:00:14.540
that has huge effects for everyone who lives[br]on this planet.

0:00:14.540,0:00:18.000
Most people can feel deep down that[br]something isn't quite right

0:00:18.000,0:00:21.180
the world economy, but few know what it is

0:00:21.180,0:00:24.860
Gone are the days where a family can[br]survive on

0:00:24.860,0:00:28.890
just one paycheck, every day it seems things[br]are more and more

0:00:28.890,0:00:32.500
out of control, yet only one in a million[br]understand why.

0:00:32.500,0:00:35.640
You are about to discover

0:00:35.640,0:00:39.200
the system that is ultimately[br]responsible for most of the inequality in our

0:00:39.200,0:00:42.710
world today. The powers that be do not

0:00:42.710,0:00:47.470
want you to know about this, as this system[br]is what has kept them at the top of

0:00:47.470,0:00:50.830
the financial food chain for the last 100[br]years.

0:00:50.830,0:00:54.910
Learning this will change your life[br]because it will change the choices that you make.

0:00:54.910,0:00:58.530
If enough people learn it, it will change the world...

0:00:58.530,0:01:02.100
because it'll change the system.

0:01:02.100,0:01:06.230
For this is the biggest Hidden Secret Of Money.

0:01:06.230,0:01:09.820
Never in human history have so many been[br]plundered by so

0:01:09.820,0:01:10.900
few,

0:01:10.900,0:01:14.270
And it's all accomplished through this, The[br]Biggest Scam

0:01:14.270,0:01:20.710
In the History of Mankind

0:01:20.710,0:01:23.590
They say that money doesn't grow on[br]trees

0:01:23.590,0:01:28.090
but the truth is that the modern banking[br]system creates currency far faster than

0:01:28.090,0:01:29.250
trees can grow.

0:01:29.250,0:01:33.020
Most people don't have a clue how[br]currency is created

0:01:33.020,0:01:36.770
economists and bankers make it sound so[br]complex that people think they can't

0:01:36.770,0:01:37.820
understand it.

0:01:37.820,0:01:41.380
But I'm going to strip our monetary[br]system down to its

0:01:41.380,0:01:44.410
essence so you can see the scam behind[br]the curtain

0:01:44.410,0:01:48.840
and just how it affects you. Every modern[br]society creates currency in pretty much

0:01:48.840,0:01:49.670
the same way

0:01:49.670,0:01:53.320
but since the US dollar is the majority[br]of the world's currency

0:01:53.320,0:01:57.280
I'm going to use the United States as[br]our example. It all starts when some

0:01:57.280,0:02:00.700
politician says 'Vote for me and I'll[br]make sure the government provides you more

0:02:00.700,0:02:02.200
free stuff than my opponent will'

0:02:02.200,0:02:07.460
But there's no such thing as a free[br]lunch - so to provide that supposedly free

0:02:07.460,0:02:08.929
stuff the politicians

0:02:08.929,0:02:13.320
vote for the country to spend more than[br]its income. This is called deficit spending.

0:02:13.320,0:02:17.890
To pay for that deficit spending the[br]Treasury borrows currency by issuing a

0:02:17.890,0:02:19.040
bond.

0:02:19.040,0:02:24.200
So what's a bond? If you think about it a[br]bond is really nothing but a glorified

0:02:24.200,0:02:28.709
I.O.U. It's a pretty piece of paper[br]with numbers printed on it that says

0:02:28.709,0:02:32.840
'Loan me a trillion dollars today and I[br]promise over a 10-year period

0:02:32.840,0:02:35.959
I'm gonna pay you back that trillion[br]dollars plus interest.'

0:02:35.959,0:02:39.260
But what you need to understand is that[br]Treasury bonds

0:02:39.260,0:02:43.000
are our national debt. These glorified[br]I.O.U.s

0:02:43.000,0:02:47.640
are to be paid back by you and I and our[br]descendants through future taxation.

0:02:47.640,0:02:49.060
Therefore:

0:02:49.060,0:02:52.570
When the government issues a bond it[br]steals prosperity

0:02:52.570,0:02:56.640
out as the future so that it can spend[br]it today. The Treasury then holds a bond

0:02:56.640,0:02:57.550
auction

0:02:57.550,0:03:01.989
and the world's largest banks show up and[br]compete to buy part of our national debt

0:03:01.989,0:03:05.959
and make a profit on by earning interest.[br]You'll notice that as we move through

0:03:05.959,0:03:07.080
this process

0:03:07.080,0:03:10.670
the big banks are there taking a cut[br]every step of the way.

0:03:10.670,0:03:14.430
This isn't by chance as you'll see[br]shortly. Then,

0:03:14.430,0:03:18.050
through a shell game called Open Market[br]Operations the banks get to sell some of

0:03:18.050,0:03:19.800
those bonds to the Federal Reserve

0:03:19.800,0:03:22.920
at a profit. To pay for the bonds the Federal[br]Reserve

0:03:22.920,0:03:26.680
opens up its big old checkbook and[br]writes bad

0:03:26.680,0:03:30.940
bogus counterfeit checks that should[br]bounce because they're drawn on an account that

0:03:30.940,0:03:33.709
always has a zero balance, there isn't[br]one penny

0:03:33.709,0:03:37.799
in there. To quote from the Boston[br]Federal Reserve: 'When you are I write a

0:03:37.799,0:03:40.010
check there must be sufficient funds

0:03:40.010,0:03:44.380
in our account to cover that check, but when[br]the Federal Reserve writes a check

0:03:44.380,0:03:48.030
there is no bank deposit on which that[br]check is drawn.

0:03:48.030,0:03:51.940
When the Federal Reserve writes a check[br]it is creating money."

0:03:51.940,0:03:55.769
The Fed then hands those checks to the[br]banks and at this point currency

0:03:55.769,0:03:57.290
springs into existence.

0:03:57.290,0:04:01.570
The banks then take that currency and[br]buy more bonds at the next Treasury

0:04:01.570,0:04:02.019
auction.

0:04:02.019,0:04:05.600
But what is a check? A check is also[br]an I.O.U.

0:04:05.600,0:04:09.440
When you write a check you're making a[br]note that says "Here's my I.O.U. for

0:04:09.440,0:04:10.060
cash,

0:04:10.060,0:04:14.209
all you have to do is go to the bank and[br]pick it up." Now it's very very important

0:04:14.209,0:04:16.290
that you understand this process

0:04:16.290,0:04:19.988
because we're going to come back later[br]and show you the devastating effect this

0:04:19.988,0:04:20.970
has on you.

0:04:20.970,0:04:24.260
The treasury issues I.O.U.s, (bonds).

0:04:24.260,0:04:28.290
The banks then buy those I.O.U.s with[br]currency. The Federal Reserve

0:04:28.290,0:04:32.730
then writes I.O.U.s (checks) and hands them[br]to the banks in exchange for the

0:04:32.730,0:04:33.990
Treasury's I.O.U.s

0:04:33.990,0:04:38.670
(the bonds). And currency is created. So[br]what's really happening is the Federal

0:04:38.670,0:04:39.710
Reserve and the Treasury

0:04:39.710,0:04:43.610
are just swapping I.O.U.s, using the[br]banks as middlemen,

0:04:43.610,0:04:48.290
and abracadabra presto currency[br]magically springs into existence.

0:04:48.290,0:04:51.520
This process repeats and repeats over and[br]over again

0:04:51.520,0:04:55.560
enriching the banks and indebting the[br]public by raising the national debt.

0:04:55.560,0:04:59.690
The end result is that there's a buildup[br]of bonds at the Federal Reserve

0:04:59.690,0:05:03.220
and currency at the Treasury. This process[br]is also where

0:05:03.220,0:05:06.880
all paper currency comes from. The[br]Federal Reserve and the government

0:05:06.880,0:05:08.570
mistakenly call it 'Base Money'

0:05:08.570,0:05:12.700
because they didn't watch Episode 1 of[br]this series, and they don't know the

0:05:12.700,0:05:14.020
difference between money

0:05:14.020,0:05:18.510
and currency. But I will correctly[br]refer to it as 'Base Currency' because

0:05:18.510,0:05:19.660
it is not money...

0:05:19.660,0:05:23.540
it is CURRENCY, and as we've learned[br]there is a big difference:

0:05:23.540,0:05:27.919
Money has to be a store of value[br]and maintain its purchasing power over

0:05:27.919,0:05:29.400
long periods of time.

0:05:29.400,0:05:33.200
We learned in Episode 1 that earlier[br]in our history our paper currency was

0:05:33.200,0:05:34.330
just a claim check.

0:05:34.330,0:05:38.140
It was a representation for real money[br]of intrinsic value,

0:05:38.140,0:05:41.150
the gold and silver that was held on[br]deposit at the Treasury.

0:05:41.150,0:05:45.640
You could walk into any bank and slap[br]your currency, like say a twenty dollar

0:05:45.640,0:05:46.140
bill

0:05:46.140,0:05:50.510
on the counter, and redeem it for real[br]moneyÉa twenty dollar gold piece.

0:05:50.510,0:05:53.740
But now this base currency that's piling[br]up back here

0:05:53.740,0:05:57.670
is really nothing but a receipt or a[br]claim check on an I.O.U.

0:05:57.670,0:06:01.900
(that bond), so it's really nothing but a[br]supply of numbers.

0:06:01.900,0:06:05.080
The Treasury then deposits the newly[br]created currency in the various branches

0:06:05.080,0:06:06.550
of the government,

0:06:06.550,0:06:09.700
and the politicians say "Hey thanks for[br]that!",

0:06:09.700,0:06:13.390
and the government does some deficit[br]spending on public works,

0:06:13.390,0:06:16.780
social programs, and war.

0:06:16.780,0:06:20.800
The government employees, contractors and[br]soldiers then deposit their pay in the

0:06:20.800,0:06:22.390
banks.

0:06:22.390,0:06:26.330
Now this may come as a shock to you, but when[br]you deposit your currency with the bank

0:06:26.330,0:06:26.830
you're not

0:06:26.830,0:06:30.860
actually depositing it into an account[br]to be safely held in trust for you.

0:06:30.860,0:06:34.530
Instead, you're actually loaning the bank[br]your currency,

0:06:34.530,0:06:38.610
and within certain legal limits they can do[br]with it pretty much anything they please.

0:06:38.610,0:06:42.330
This includes gambling in the stock[br]market, and loaning it out...

0:06:42.330,0:06:45.880
at a profit of course.

0:06:45.880,0:06:49.190
Now this is where the machine of currency[br]creation really gets cranking,

0:06:49.190,0:06:52.390
because this is where something called[br]'Fractional Reserve Lending' comes into

0:06:52.390,0:06:53.400
play.

0:06:53.400,0:06:57.410
Fractional Reserve Lending is exactly[br]what it says. The banks are allowed

0:06:57.410,0:07:01.490
to reserve only a fraction of your[br]deposit and long the rest out.

0:07:01.490,0:07:05.940
Although reserve ratios may vary, I'm[br]going to use a 10 percent reserve ratio

0:07:05.940,0:07:06.759
as our example.

0:07:06.759,0:07:11.370
If you deposit $100 dollars in your[br]account, the bank can legally take ninety

0:07:11.370,0:07:14.100
dollars of it and loan it out without[br]telling you.

0:07:14.100,0:07:17.669
The bank must hold ten dollars of your[br]deposit in reserve

0:07:17.669,0:07:21.740
just in case you want some of it. These[br]reserves are called 'Vault Cash'.

0:07:21.740,0:07:25.760
But why does your bank account still say[br]you have one hundred dollars if the bank

0:07:25.760,0:07:27.760
has stolen ninety dollars of it?

0:07:27.760,0:07:31.350
Because the bank left I.O.U.s it[br]created called 'bank credit'

0:07:31.350,0:07:34.620
in its place. Now I know this sounds[br]crazy,

0:07:34.620,0:07:39.550
but here it is in black and white from[br]the Fed: "Commercial banks create

0:07:39.550,0:07:40.710
checkbook money

0:07:40.710,0:07:45.550
when they grant a loan simply by adding[br]new deposit dollars in accounts

0:07:45.550,0:07:49.470
on their books in exchange for a[br]borrower's I.O.U."

0:07:49.470,0:07:53.550
These are nothing but numbers that the[br]banks type into their computers,

0:07:53.550,0:07:57.240
and even though these bank credit I.O.U.[br]numbers

0:07:57.240,0:08:01.250
are very different from base currency[br]numbers (because they only exist in

0:08:01.250,0:08:02.010
computers),

0:08:02.010,0:08:07.270
they are still currency. So now there is[br]one hundred ninety dollars in existence.

0:08:07.270,0:08:11.900
Now the reason people take out loans[br]from the banks is to buy something.

0:08:11.900,0:08:15.970
They're going to buy a house or a car or[br]something like that.

0:08:15.970,0:08:21.030
So the borrower takes the ninety dollars that [br]the bank loaned to him from your account,

0:08:21.030,0:08:25.880
and he pays the seller of item. But[br]then the seller deposits that currency

0:08:25.880,0:08:27.039
into his account,

0:08:27.039,0:08:30.099
and his bank loans out ninety percent of[br]that,

0:08:30.099,0:08:33.909
and leaves bank credit numbers in its[br]place. So now there's two hundred and

0:08:33.909,0:08:36.110
seventy-one dollars in existence.

0:08:36.110,0:08:40.299
This process repeats and repeats until[br]under a 10 percent reserve ratio

0:08:40.299,0:08:44.720
an initial deposit of just one hundred[br]dollars can create up to one thousand

0:08:44.720,0:08:46.360
dollars of bank credit

0:08:46.360,0:08:49.709
all backed by one hundred dollars of vault[br]cash,

0:08:49.709,0:08:54.339
just 10 percent. But as I said reserve[br]ratios vary wildly...

0:08:54.339,0:08:57.500
on some deposits it's 10 percent on[br]others

0:08:57.500,0:09:01.260
its 3 percent and on some forms of deposits[br]reserve requirements

0:09:01.260,0:09:06.320
are zero! The result is that the expansion the[br]currency supply by the banks is

0:09:06.320,0:09:09.410
far greater than even this example would[br]lead you to believe.

0:09:09.410,0:09:13.700
So once again, when currency is deposited[br]in the banks,

0:09:13.700,0:09:17.790
the banks get to lend it out and then it[br]gets we redeposited and relent,

0:09:17.790,0:09:21.360
redeposited and relent, redeposited and[br]relent

0:09:21.360,0:09:24.750
over and over again creating bank credit[br]all the way.

0:09:24.750,0:09:28.940
This is where the vast majority of our[br]currency supply comes from.

0:09:28.940,0:09:32.050
In fact 92 to 96 percent of

0:09:32.050,0:09:36.029
all currency in existence is created[br]not by the government,

0:09:36.029,0:09:39.700
but here in the banking system. Now,

0:09:39.700,0:09:43.820
massive amounts of currency spewing into[br]society may at first sound like a fun

0:09:43.820,0:09:44.589
idea...

0:09:44.589,0:09:48.490
that is until you remember one of the[br]most important Hidden Secrets Of Money

0:09:48.490,0:09:49.670
from Episode 1:

0:09:49.670,0:09:53.529
That the prices of everyday goods and[br]services act as a sponge

0:09:53.529,0:09:57.490
on an expanding currency supply. The more[br]currency we have

0:09:57.490,0:09:59.540
the more prices rise.

0:09:59.540,0:10:04.029
This is where inflation comes from. The[br]true definition of inflation

0:10:04.029,0:10:07.970
is an expansion of the currency supply,[br]rising prices

0:10:07.970,0:10:09.520
are merely the symptom.

0:10:09.520,0:10:13.350
So our entire currency supply is nothing[br]but a couple bucks whipped up in this

0:10:13.350,0:10:14.730
hocus-pocus scam

0:10:14.730,0:10:18.320
where the Treasury and the Federal[br]Reserve swap glorified I.O.U.s

0:10:18.320,0:10:21.880
and a bunch of numbers that the banks[br]just type into their computers.

0:10:21.880,0:10:25.980
That's itÉthat's our entire currency supply.[br]It's nothing but a supply of

0:10:25.980,0:10:26.720
numbers.

0:10:26.720,0:10:29.830
Some of them printed, most of them typed,

0:10:29.830,0:10:33.930
and there is nothing else. But if you[br]thought that was crazy,

0:10:33.930,0:10:38.550
get ready to enter the twilight zone ofmodern[br]economics. We work for some of that

0:10:38.550,0:10:39.340
currency supply.

0:10:39.340,0:10:44.260
True wealth is your time, but we trade[br]away moments in our lives

0:10:44.260,0:10:47.550
hour by hour, day by day, and year by year

0:10:47.550,0:10:51.440
for numbers that somebody printed on[br]pieces of paper or just typed into a

0:10:51.440,0:10:52.450
computer.

0:10:52.450,0:10:56.410
Now those numbers represent our blood,[br]sweat, tears, labor,

0:10:56.410,0:11:02.110
ideas and talent. We are what gives[br]the currency its value.

0:11:02.110,0:11:05.720
But here comes the really cruel joke...we[br]work hard,

0:11:05.720,0:11:09.770
so that we can save some of that currency, so[br]that we can pay the tax collector

0:11:09.770,0:11:14.650
(in the United States it's known as the IRS),[br]they then turn it over to the Treasury,

0:11:14.650,0:11:17.850
so that the Treasury can pay the[br]principal plus interest

0:11:17.850,0:11:21.530
on that bond that the Federal Reserve bought[br]with a check drawn

0:11:21.530,0:11:24.530
on an account that has nothing in it.

0:11:24.530,0:11:29.330
Now let's do a recap on this[br]section because this is where the

0:11:29.330,0:11:31.380
system begins to rob you and I

0:11:31.380,0:11:36.810
on a massive scale. Much of our taxes are[br]not used for schools, roads and public

0:11:36.810,0:11:37.820
services,

0:11:37.820,0:11:41.210
but to pay interest on bonds that the[br]Federal Reserve

0:11:41.210,0:11:44.880
bought with a check drawn on an account that[br]has nothing

0:11:44.880,0:11:47.890
in it. The Federal Reserve is committing[br]FRAUD.

0:11:47.890,0:11:51.490
But here's one of the biggest secrets[br]of them all:

0:11:51.490,0:11:56.040
Before the establishment at the Federal[br]Reserve there was no need for personal

0:11:56.040,0:12:00.790
income tax. The Federal Reserve was created[br]in 1913

0:12:00.790,0:12:03.940
and that very same year the Constitution

0:12:03.940,0:12:09.630
was amended to allow income tax. Do you[br]really think this was just a coincidence?

0:12:09.630,0:12:13.150
Ask yourself how much income tax you've paid

0:12:13.150,0:12:17.870
over your lifetime. Much of it has been[br]silently siphoned away

0:12:17.870,0:12:23.480
into the hands of those who own the[br]system. Yes this system has owners...

0:12:23.480,0:12:27.089
who they are is an even bigger secret[br]that we'll get to shortly,

0:12:27.089,0:12:31.220
but first we need to understand the[br]mumbo jumbo of the so-called

0:12:31.220,0:12:35.780
'debt ceiling'. It's all based on a huge[br]paradox:

0:12:35.780,0:12:40.640
There was interest due on that bond, and[br]there was interest due on

0:12:40.640,0:12:43.870
every one of those loans that the banks made.[br]That means

0:12:43.870,0:12:48.020
that there is interest due on every dollar[br]in existence.

0:12:48.020,0:12:52.930
Let me ask you something: If you borrow[br]the very first dollar into existence and

0:12:52.930,0:12:55.700
that's the only dollar that exists on[br]the planet,

0:12:55.700,0:12:59.920
but you promise to pay it back plus[br]another dollars worth of interest...

0:12:59.920,0:13:04.580
where you get the second dollar to pay the[br]interest? The answer is that you have to

0:13:04.580,0:13:06.390
borrow that one into existence

0:13:06.390,0:13:10.200
and promise to pay it back with[br]interest as well, so now there are two

0:13:10.200,0:13:11.490
dollars in existence

0:13:11.490,0:13:16.480
but you owe fourÉand so on and so on. [br]The result is there's never enough

0:13:16.480,0:13:17.959
currency to pay the debt.

0:13:17.959,0:13:21.190
There is always more debt in the system

0:13:21.190,0:13:25.589
than there is currency in existence to[br]pay the debt. Therefore,

0:13:25.589,0:13:28.910
the whole system is impossible it is[br]finite

0:13:28.910,0:13:33.050
it will come to an end one day. What[br]would happen if the government stopped

0:13:33.050,0:13:34.760
borrowing to do deficit spending?

0:13:34.760,0:13:38.130
Are the payments on those treasury bonds[br]going to stop?

0:13:38.130,0:13:42.900
What would happen if the public stopped[br]borrowing and going deeper into debt?

0:13:42.900,0:13:45.910
Are your house and car payments going to[br]stop?

0:13:45.910,0:13:49.250
No, there is a payment due

0:13:49.250,0:13:53.350
every month on the principal plus the[br]interest on every dollar in existence

0:13:53.350,0:13:55.350
and those payments do not stop.

0:13:55.350,0:14:00.470
If we stop borrowing then no new[br]currency is created to replace the

0:14:00.470,0:14:03.080
currency that we used to make those[br]payments.

0:14:03.080,0:14:07.030
Whether you're making a payment on a[br]loan or paying tax to make a payment on

0:14:07.030,0:14:07.760
a bond,

0:14:07.760,0:14:11.030
the portion of the payment that goes to[br]pay off the principal

0:14:11.030,0:14:15.990
extinguishes that portion of the debt.[br]But the debt also extinguishes the

0:14:15.990,0:14:16.580
currency.

0:14:16.580,0:14:19.860
Currency and debt are like matter and[br]anti-matter.

0:14:19.860,0:14:24.610
When they meet they annihilate each[br]other. If we just pay off the principal

0:14:24.610,0:14:25.110
only

0:14:25.110,0:14:28.740
on all the loans and bonds that exist[br]the entire currency supply

0:14:28.740,0:14:32.630
just vanishes. So if we don't go deeper[br]into debt every year

0:14:32.630,0:14:37.230
look what happens: the whole thing goes[br]into a deflationary collapse under the

0:14:37.230,0:14:38.000
weight of those payments.

0:14:38.000,0:14:43.110
Politicians and pundits alike talk about[br]balancing the budget

0:14:43.110,0:14:47.170
paying down the debt and living within[br]our means. They don't understand that

0:14:47.170,0:14:48.440
that is deflationary,

0:14:48.440,0:14:53.370
it is impossible to do under our current[br]monetary system without collapsing the

0:14:53.370,0:14:55.570
whole economy.

0:14:55.570,0:14:59.080
This is why any talk of a debt ceiling[br]is not only ridiculous...

0:14:59.080,0:15:02.880
its delusional. The system is designed to[br]require

0:15:02.880,0:15:07.899
ever-increasing levels of debt just to[br]continue, and that's why politicians will

0:15:07.899,0:15:08.580
always

0:15:08.580,0:15:12.040
kick the can down the road and raise[br]this so-called

0:15:12.040,0:15:17.220
'debt ceiling' over and over again until[br]the whole system finally collapses under

0:15:17.220,0:15:18.250
its own weight.

0:15:18.250,0:15:22.000
In other words, they don't want it to[br]collapse on their watch.

0:15:22.000,0:15:25.600
The founding fathers of the United[br]States knew the dangers of central

0:15:25.600,0:15:28.850
banking and fought to free themselves[br]from this very thing.

0:15:28.850,0:15:32.230
The revolutionary war started out as a[br]tax revolt,

0:15:32.230,0:15:36.440
but now we must pay tax just to have a[br]monetary system.

0:15:36.440,0:15:40.000
Having just suffered through the[br]hyperinflation of the Continental

0:15:40.000,0:15:40.529
Dollar

0:15:40.529,0:15:44.330
which was printed into oblivion to[br]finance the Revolutionary War,

0:15:44.330,0:15:49.450
they understood the dangers of fiat[br]currency and debt based monetary systems.

0:15:49.450,0:15:53.830
So to protect future generations from[br]institutional theft and

0:15:53.830,0:15:58.220
out-of-control government they wrote[br]into the constitution that only gold and

0:15:58.220,0:15:59.640
silver can be money,

0:15:59.640,0:16:04.750
for the simple fact that you can't print[br]them. Our current system is not only

0:16:04.750,0:16:06.160
unconstitutional,

0:16:06.160,0:16:09.250
but it robs us of the liberty and[br]prosperity

0:16:09.250,0:16:13.790
our forefathers fought and died for. We[br]are all

0:16:13.790,0:16:17.029
feeling the effects of ignoring the[br]Constitution right now.

0:16:17.029,0:16:20.100
By forcing more currency into[br]circulation

0:16:20.100,0:16:23.680
our purchasing power is diluted.[br]Inflation

0:16:23.680,0:16:26.730
is a slow and insidious stealth tax

0:16:26.730,0:16:30.579
that is simply the result of this in[br]dept-based monetary system.

0:16:30.579,0:16:35.140
This system empowers and benefits those[br]who create the currency and receive it

0:16:35.140,0:16:35.760
first

0:16:35.760,0:16:39.899
as they get to spend it into circulation[br]before it has an effect on the economy.

0:16:39.899,0:16:43.890
They're stealing purchasing power from[br]you and transferring it to the banks and the

0:16:43.890,0:16:44.430
government

0:16:44.430,0:16:49.149
every hour of every day because of this[br]false monetary system.

0:16:49.149,0:16:53.839
And it's not like the people at the top[br]don't know this. To quote the Federal Reserve

0:16:53.839,0:16:58.050
"The decrease in purchasing power[br]incurred by the holders of money

0:16:58.050,0:17:02.600
due to inflation imparts gains to the[br]issuers of money."

0:17:02.600,0:17:06.660
This is a fraud, it is a pyramid scheme,[br]it is a Ponzi scheme,

0:17:06.660,0:17:11.329
it's a scam and it's a lie. Our entire[br]monetary system

0:17:11.329,0:17:16.929
is nothing but a form of legalized theft.[br]But here's the biggest con job of them all:

0:17:16.929,0:17:20.459
The Federal Reserve is not federal - it[br]has stockholders.

0:17:20.459,0:17:23.770
There is no federal agency that has[br]stockholders.

0:17:23.770,0:17:27.790
What's a stockholder? A stock[br]represents a percentage of

0:17:27.790,0:17:31.040
ownership in a corporation, so the[br]stockholders

0:17:31.040,0:17:34.770
are the owners of that corporation.[br]Therefore the Federal Reserve is a

0:17:34.770,0:17:36.860
private corporation with owners...

0:17:36.860,0:17:40.820
and you can see it for yourself if you[br]go to the Federal Reserve's website

0:17:40.820,0:17:45.120
and it will say: "The stockholders[br]receive an annual dividend of

0:17:45.120,0:17:49.260
six-percent." Now we know that the stock[br]in the Federal Reserve was originally

0:17:49.260,0:17:49.809
issued

0:17:49.809,0:17:53.419
to the largest banks in the United[br]States but because of mergers and

0:17:53.419,0:17:54.850
acquisitions through the years

0:17:54.850,0:17:59.230
you can't actually trace who owns the[br]stock in the Federal Reserve. That's a

0:17:59.230,0:18:03.160
very closely guarded secret. My guess[br]would be that the owners

0:18:03.160,0:18:06.870
are those primary dealers, the banks that[br]get to make a profit

0:18:06.870,0:18:10.669
by selling part of our national debt-[br]those bonds, to the Federal Reserve

0:18:10.669,0:18:16.130
who buys them with a check from nothing![br]Then WE pay tax to pay the principal

0:18:16.130,0:18:20.400
and the interest on those bonds so that[br]the Federal Reserve can pay the banks a 6

0:18:20.400,0:18:22.570
percent dividend.

0:18:22.570,0:18:26.169
Don't be alarmed if you don't quite[br]comprehend the deception of this system

0:18:26.169,0:18:30.540
at first glance. Very few people do. It is[br]purposely complex.

0:18:30.540,0:18:33.640
The economist John Maynard Keynes once[br]wrote:

0:18:33.640,0:18:37.400
"By this means government may secretly[br]and unobserved

0:18:37.400,0:18:42.470
confiscate the wealth of the people and not[br]one man in a million will detect the

0:18:42.470,0:18:43.100
theft."

0:18:43.100,0:18:46.150
I believe that presented correctly

0:18:46.150,0:18:49.940
anyone can understand the system,[br]regardless of how complex it is.

0:18:49.940,0:18:53.490
So let's do a recap and break it down[br]even more...

0:18:53.490,0:18:57.400
The way this system works is that Step 1:

0:18:57.400,0:19:02.540
The government creates glorified I.O.U.s[br]These bonds increase our national

0:19:02.540,0:19:02.919
debt,

0:19:02.919,0:19:06.630
and put the public on the hook to pay it[br]back. Step 2:

0:19:06.630,0:19:10.919
I.O.U.s are swapped to create currency. The[br]Treasury

0:19:10.919,0:19:15.830
sells the bonds to the banks. The banks[br]then turn around and sell our national

0:19:15.830,0:19:16.380
debt

0:19:16.380,0:19:20.669
at a profit to the Federal Reserve, which[br]they probably own.

0:19:20.669,0:19:24.470
The Federal Reserve then opens its checkbook[br]that doesn't have a penny in it

0:19:24.470,0:19:28.040
and buys those I.O.U.s with I.O.U.s it[br]writes,

0:19:28.040,0:19:32.260
checks on a checking account that has a zero[br]balance.

0:19:32.260,0:19:36.290
Then they give those checks to the[br]banks and currency just springs into

0:19:36.290,0:19:37.460
existence,

0:19:37.460,0:19:41.909
and then the whole process repeats. This[br]results in a build up of bonds at the

0:19:41.909,0:19:43.010
Federal Reserve,

0:19:43.010,0:19:47.370
and currency at the Treasury...which is[br]really just a supply of numbers.

0:19:47.370,0:19:50.290
The Treasury then deposits the numbers[br]in the various branches of the

0:19:50.290,0:19:52.140
government and we get to Step 3:

0:19:52.140,0:19:56.000
The government spends the numbers on[br]promises,

0:19:56.000,0:19:59.870
public works, social programs and war.

0:19:59.870,0:20:03.450
Then the government employees,[br]contractors and soldiers deposit their

0:20:03.450,0:20:04.830
pay into the banks

0:20:04.830,0:20:09.510
and we get to Step 4: Where the banks[br]multiply the numbers by magically

0:20:09.510,0:20:10.720
inventing more

0:20:10.720,0:20:14.530
I.O.U.s through Fractional Reserve[br]Lending, where they steal a portion of

0:20:14.530,0:20:17.159
everyone's deposit and lend it out.

0:20:17.159,0:20:21.600
That currency gets redeposited and then[br]a portion is stolen again,

0:20:21.600,0:20:25.700
and the process repeats over and over[br]magnifying the currency supply

0:20:25.700,0:20:27.190
exponentially.

0:20:27.190,0:20:31.780
Then we work for some of those numbers[br]which brings us to Step 5:

0:20:31.780,0:20:36.090
Where our numbers are taxed. We pay taxes[br]to the IRS

0:20:36.090,0:20:40.220
who then turns our numbers over to the[br]Treasury, so the Treasury can pay the

0:20:40.220,0:20:44.560
principal plus the interest on bonds[br]that were purchased by the Federal Reserve

0:20:44.560,0:20:48.490
with a check from nothing. Then we get to[br]Step 6:

0:20:48.490,0:20:52.650
The Debt Ceiling Delusion. The system is[br]designed to require

0:20:52.650,0:20:56.960
ever-increasing levels and debt and will[br]eventually collapse under its own weight

0:20:56.960,0:20:58.570
because politicians

0:20:58.570,0:21:04.220
always kick the can down the road, they[br]don't want it to collapse on their watch.

0:21:04.220,0:21:08.419
And finally Step 7: The Secret Owners[br]Take Their Cut.

0:21:08.419,0:21:12.610
The world's largest banks own the Federal[br]Reserve, those banks make a profit

0:21:12.610,0:21:15.190
selling our national debt top the Fed,

0:21:15.190,0:21:20.000
they make a profit when the Fed pays[br]them interest on the reserves held at the Fed,

0:21:20.000,0:21:23.510
and the Fed pays them a six percent[br]dividend on their

0:21:23.510,0:21:26.559
ownership of the Fed. This system

0:21:26.559,0:21:31.000
is fundamentally evil. It funnels wealth[br]from the working population

0:21:31.000,0:21:34.860
to the government and the banking sector.[br]it is the cause of the artificial booms

0:21:34.860,0:21:36.870
and busts of modern economies,

0:21:36.870,0:21:41.200
and it causes great disparity of wealth[br]between the rich and the working class.

0:21:41.200,0:21:45.740
AND - it is only possible because we no[br]longer use real money,

0:21:45.740,0:21:50.570
we use currency. But worst of all it is a[br]form of enslavement.

0:21:50.570,0:21:55.150
BOND is the root word of BONDAGE.[br]Whenever a government issues a bond it

0:21:55.150,0:21:58.440
is a promise to make us pay tax in the[br]future.

0:21:58.440,0:22:02.059
Nobody asked you if you wanted to pay[br]tax today for the prosperity we all

0:22:02.059,0:22:04.220
enjoyed in the last century.

0:22:04.220,0:22:08.409
Nobody is asking our children if they[br]want to work hard in the future

0:22:08.409,0:22:12.640
to pay for the prosperity we're enjoying[br]now. George Washington once wrote to

0:22:12.640,0:22:14.159
James Madison:

0:22:14.159,0:22:18.040
"No generation has the right to contract[br]debts greater

0:22:18.040,0:22:21.909
than can be paid off during the course[br]of its own existence."

0:22:21.909,0:22:25.600
By stealing prosperity from tomorrow so[br]we can spend it today

0:22:25.600,0:22:29.320
we enslave ourselves and future[br]generations.

0:22:29.320,0:22:32.870
Now this all sounds pretty bad but there[br]is great hope

0:22:32.870,0:22:36.710
for YOU are the greatest threat to this[br]false monetary system.

0:22:36.710,0:22:40.360
This system relies on the public being[br]ignorant of its workings.

0:22:40.360,0:22:43.480
Please share this knowledge with[br]everyone you know because an informed

0:22:43.480,0:22:43.990
public

0:22:43.990,0:22:47.570
that fully understands the system can[br]build a better future

0:22:47.570,0:22:52.490
for generations to come. And now I leave you[br]with this quote,

0:22:52.490,0:22:56.929
widely attributed to a former Director[br]of the Bank Of England: "The modern banking system

0:22:56.929,0:22:59.620
manufacturers money out of nothing.

0:22:59.620,0:23:03.180
The process is perhaps the most[br]astounding piece of sleight of hand that

0:23:03.180,0:23:04.200
was ever invented.

0:23:04.200,0:23:07.290
Banking was conceived in iniquity

0:23:07.290,0:23:11.760
and born in sin. Bankers own the earth.[br]Take it away from them,

0:23:11.760,0:23:15.830
but leave them the power to create money and[br]control credit and with the flick of a

0:23:15.830,0:23:16.370
pen

0:23:16.370,0:23:21.040
they will create enough money to buy it[br]back again. If you want to continue as

0:23:21.040,0:23:22.310
the slaves of bankers

0:23:22.310,0:23:26.740
and pay the cost of your own slavery, let[br]them continue to create money,

0:23:26.740,0:23:32.140
and to control credit."

0:23:32.140,0:23:34.460
This the Federal Reserve in Washington[br]DC

0:23:34.460,0:23:39.650
it's located on Constitution Street, and[br]that is just as much a joke as the New

0:23:39.650,0:23:42.380
York Fed being located on Liberty Street.

0:23:42.380,0:23:46.470
Both of them are unconstitutional both[br]of them limit our Liberty,

0:23:46.470,0:23:49.980
and they transfer wealth away from us[br]every second of every day

0:23:49.980,0:23:55.790
to the Federal Reserve, to the government[br]and to the banking sector. YOU

0:23:55.790,0:23:59.970
are now among the one in a million that can[br]detect theft of your prosperity...

0:23:59.970,0:24:03.160
so the big question is, what can you do[br]about it?

0:24:03.160,0:24:07.270
1: Watch this video until you can[br]describe

0:24:07.270,0:24:10.940
and teach it to others. Those who[br]understand the system

0:24:10.940,0:24:14.010
can make preparations for its unavoidable[br]collapse

0:24:14.010,0:24:17.570
and protect themselves. History shows that those[br]who don't

0:24:17.570,0:24:20.669
will probably wiped out. 2:

0:24:20.669,0:24:25.830
Share this video with everyone,[br]especially those you care about. All it

0:24:25.830,0:24:27.809
takes is a mouse click or two

0:24:27.809,0:24:30.300
to get this message in front of millions.

0:24:30.300,0:24:34.350
Post this video on Facebook, Tweet it,[br]email it to loved ones.

0:24:34.350,0:24:37.800
Please share it wherever you can. [br]3:

0:24:37.800,0:24:42.490
Join the conversation. The current world[br]monetary system is based on a three

0:24:42.490,0:24:43.810
hundred-year-old design

0:24:43.810,0:24:47.149
meant to enrich a few at the expense[br]of the many...

0:24:47.149,0:24:51.219
there must be a better way. At[br]HiddenSecretsOfMoney.com

0:24:51.219,0:24:55.379
we've created an open source platform[br]for the design and development of a new

0:24:55.379,0:24:58.320
world monetary system. We're calling on

0:24:58.320,0:25:01.450
every economist, every student, every[br]college,

0:25:01.450,0:25:05.989
every bright mind and anyone who cares[br]to join the discussion.

0:25:05.989,0:25:10.649
In educating ourselves and each other we[br]can prevent the further loss of our

0:25:10.649,0:25:11.309
freedoms

0:25:11.309,0:25:15.109
and maybe, just maybe win some of them back.

0:25:15.109,0:25:18.759
...

0:25:18.759,0:25:25.759
...

0:25:27.160,0:25:31.110
Stay tuned for Ron Paul...

0:25:31.110,0:25:34.340
ÉJim Rickards, and Steve Forbes

0:25:34.340,0:25:41.340
Watch more episodes at [br]HiddenSecretsOfMoney.com

0:26:00.520,0:26:02.880
[Ron Paul] I think your Episode 4 is

0:26:02.880,0:26:07.260
very beneficial, very helpful, it's gonna[br]introduce these ideas to a lot of

0:26:07.260,0:26:09.430
people, and like I've just been talking about,

0:26:09.430,0:26:13.020
we have to change people's minds and the[br]more they understand it the better,

0:26:13.020,0:26:17.650
and I think we're at this point now[br]where more people in the last

0:26:17.650,0:26:21.590
several years..four or five years have[br]thought about the Fed than they ever have

0:26:21.590,0:26:23.590
in the previous ninety five years

0:26:23.590,0:26:29.090
so I think I an explanation and diagrams[br]to show it is very helpful

0:26:29.090,0:26:32.630
because quite frankly they're not going[br]to get it in their grade school they're

0:26:32.630,0:26:34.170
not going to get in their high school

0:26:34.170,0:26:38.320
they're not going to get it in college[br]unless they're in a very rare

0:26:38.320,0:26:40.280
circumstance to understand

0:26:40.280,0:26:44.710
how this works. [Jim Rickards] You know for years[br]before I got involved in

0:26:44.710,0:26:49.140
huh really studying gold and some of the things[br]I write and talk about today I was a

0:26:49.140,0:26:53.980
monetary economist for decades you know[br]in your video you talk about the primary

0:26:53.980,0:26:54.700
dealers

0:26:54.700,0:26:58.920
I was chief counsel and chief credit officer[br]for one the largest primary dealers for ten

0:26:58.920,0:26:59.540
years so

0:26:59.540,0:27:03.440
I had an inside seat on the Treasury[br]market and have the privilege of working

0:27:03.440,0:27:04.630
with several

0:27:04.630,0:27:08.350
former Vice Chairman of the Board of[br]Governors: Johnson and

0:27:08.350,0:27:12.440
David Mullins going back to the 80's and[br]90's so I'm very immersed in what you're

0:27:12.440,0:27:13.770
talking about I thought it was

0:27:13.770,0:27:16.770
extremely accurate, extremely clear,

0:27:16.770,0:27:20.120
I didn't think you were stretching on any[br]points it was is really like something

0:27:20.120,0:27:20.550
out of a

0:27:20.550,0:27:25.360
PhD course except that it was very easy[br]to understand, I think it's accessible,

0:27:25.360,0:27:29.210
I think I think we're seeing a little[br]bit of a revolution in communications in

0:27:29.210,0:27:32.730
the following sense you know as you[br]point out the Fed was created in 1913

0:27:32.730,0:27:37.100
well in 1913 there was no web there[br]was no YouTube, no Twitter

0:27:37.100,0:27:40.570
there was really no one to stand up and

0:27:40.570,0:27:43.890
oppose the Fed or call them out if you[br]will, or really get into a discussion

0:27:43.890,0:27:45.990
that everyday Americans could follow.

0:27:45.990,0:27:49.260
That's not true now - with social media[br]and everything else

0:27:49.260,0:27:52.380
you can reach out to millions and[br]tens of millions of people and tell them

0:27:52.380,0:27:53.960
what's going onÉI think you've done that,

0:27:53.960,0:27:57.660
You've done it successfully I applaud it, I think it's[br]a great video I

0:27:57.660,0:28:01.270
look forward to seeing it again, I know[br]millions of people will enjoy it.

0:28:01.270,0:28:02.030
[Steve Forbes] Well as we know the

0:28:02.030,0:28:05.580
Federal Reserve believes it can [br]create money out of thin air, and

0:28:05.580,0:28:09.430
not realize money is supposed to represent[br]real products and services

0:28:09.430,0:28:14.140
and what people don't realize is[br]when the Fed does that

0:28:14.140,0:28:17.700
in effect as Keynes pointed out[br]it's a form of taxation,

0:28:17.700,0:28:22.150
it's a form of confiscation and because[br]people don't see it

0:28:22.150,0:28:27.710
the politicos get away with it, but it[br]also undermines social trust,

0:28:27.710,0:28:30.760
it just is corrosive throughout[br]society.

0:28:30.760,0:28:34.980
We're going to have a lot of turmoil in[br]the coming years,

0:28:34.980,0:28:38.320
but it's going to be the kind of turmoil[br]that leads to positive things.

0:28:38.320,0:28:42.840
So don't despair, get out there and[br]fight because

0:28:42.840,0:28:46.970
the tide is gonna turn. This is going to[br]be the statists last stand.

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[Mike Maloney] Thank you!

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[James Anderson] This episode of Mike Maloney's [br]Hidden Secrets Of Money

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was brought to you by GoldSilver.com[br]and the new Silver Pegasus round. To

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learn how to protect your family

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and turn the coming economic storms[br]and opportunity visit:

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GoldSilver.com