[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:02.04,0:00:05.54,Default,,0000,0000,0000,,You are about to learn one of the\Nbiggest secrets
Dialogue: 0,0:00:05.54,0:00:09.28,Default,,0000,0000,0000,,in the history of the world. It's a\Nsecret
Dialogue: 0,0:00:09.28,0:00:14.54,Default,,0000,0000,0000,,that has huge effects for everyone who lives\Non this planet.
Dialogue: 0,0:00:14.54,0:00:18.00,Default,,0000,0000,0000,,Most people can feel deep down that\Nsomething isn't quite right
Dialogue: 0,0:00:18.00,0:00:21.18,Default,,0000,0000,0000,,the world economy, but few know what it is
Dialogue: 0,0:00:21.18,0:00:24.86,Default,,0000,0000,0000,,Gone are the days where a family can\Nsurvive on
Dialogue: 0,0:00:24.86,0:00:28.89,Default,,0000,0000,0000,,just one paycheck, every day it seems things\Nare more and more
Dialogue: 0,0:00:28.89,0:00:32.50,Default,,0000,0000,0000,,out of control, yet only one in a million\Nunderstand why.
Dialogue: 0,0:00:32.50,0:00:35.64,Default,,0000,0000,0000,,You are about to discover
Dialogue: 0,0:00:35.64,0:00:39.20,Default,,0000,0000,0000,,the system that is ultimately\Nresponsible for most of the inequality in our
Dialogue: 0,0:00:39.20,0:00:42.71,Default,,0000,0000,0000,,world today. The powers that be do not
Dialogue: 0,0:00:42.71,0:00:47.47,Default,,0000,0000,0000,,want you to know about this, as this system\Nis what has kept them at the top of
Dialogue: 0,0:00:47.47,0:00:50.83,Default,,0000,0000,0000,,the financial food chain for the last 100\Nyears.
Dialogue: 0,0:00:50.83,0:00:54.91,Default,,0000,0000,0000,,Learning this will change your life\Nbecause it will change the choices that you make.
Dialogue: 0,0:00:54.91,0:00:58.53,Default,,0000,0000,0000,,If enough people learn it, it will change the world...
Dialogue: 0,0:00:58.53,0:01:02.10,Default,,0000,0000,0000,,because it'll change the system.
Dialogue: 0,0:01:02.10,0:01:06.23,Default,,0000,0000,0000,,For this is the biggest Hidden Secret Of Money.
Dialogue: 0,0:01:06.23,0:01:09.82,Default,,0000,0000,0000,,Never in human history have so many been\Nplundered by so
Dialogue: 0,0:01:09.82,0:01:10.90,Default,,0000,0000,0000,,few,
Dialogue: 0,0:01:10.90,0:01:14.27,Default,,0000,0000,0000,,And it's all accomplished through this, The\NBiggest Scam
Dialogue: 0,0:01:14.27,0:01:20.71,Default,,0000,0000,0000,,In the History of Mankind
Dialogue: 0,0:01:20.71,0:01:23.59,Default,,0000,0000,0000,,They say that money doesn't grow on\Ntrees
Dialogue: 0,0:01:23.59,0:01:28.09,Default,,0000,0000,0000,,but the truth is that the modern banking\Nsystem creates currency far faster than
Dialogue: 0,0:01:28.09,0:01:29.25,Default,,0000,0000,0000,,trees can grow.
Dialogue: 0,0:01:29.25,0:01:33.02,Default,,0000,0000,0000,,Most people don't have a clue how\Ncurrency is created
Dialogue: 0,0:01:33.02,0:01:36.77,Default,,0000,0000,0000,,economists and bankers make it sound so\Ncomplex that people think they can't
Dialogue: 0,0:01:36.77,0:01:37.82,Default,,0000,0000,0000,,understand it.
Dialogue: 0,0:01:37.82,0:01:41.38,Default,,0000,0000,0000,,But I'm going to strip our monetary\Nsystem down to its
Dialogue: 0,0:01:41.38,0:01:44.41,Default,,0000,0000,0000,,essence so you can see the scam behind\Nthe curtain
Dialogue: 0,0:01:44.41,0:01:48.84,Default,,0000,0000,0000,,and just how it affects you. Every modern\Nsociety creates currency in pretty much
Dialogue: 0,0:01:48.84,0:01:49.67,Default,,0000,0000,0000,,the same way
Dialogue: 0,0:01:49.67,0:01:53.32,Default,,0000,0000,0000,,but since the US dollar is the majority\Nof the world's currency
Dialogue: 0,0:01:53.32,0:01:57.28,Default,,0000,0000,0000,,I'm going to use the United States as\Nour example. It all starts when some
Dialogue: 0,0:01:57.28,0:02:00.70,Default,,0000,0000,0000,,politician says 'Vote for me and I'll\Nmake sure the government provides you more
Dialogue: 0,0:02:00.70,0:02:02.20,Default,,0000,0000,0000,,free stuff than my opponent will'
Dialogue: 0,0:02:02.20,0:02:07.46,Default,,0000,0000,0000,,But there's no such thing as a free\Nlunch - so to provide that supposedly free
Dialogue: 0,0:02:07.46,0:02:08.93,Default,,0000,0000,0000,,stuff the politicians
Dialogue: 0,0:02:08.93,0:02:13.32,Default,,0000,0000,0000,,vote for the country to spend more than\Nits income. This is called deficit spending.
Dialogue: 0,0:02:13.32,0:02:17.89,Default,,0000,0000,0000,,To pay for that deficit spending the\NTreasury borrows currency by issuing a
Dialogue: 0,0:02:17.89,0:02:19.04,Default,,0000,0000,0000,,bond.
Dialogue: 0,0:02:19.04,0:02:24.20,Default,,0000,0000,0000,,So what's a bond? If you think about it a\Nbond is really nothing but a glorified
Dialogue: 0,0:02:24.20,0:02:28.71,Default,,0000,0000,0000,,I.O.U. It's a pretty piece of paper\Nwith numbers printed on it that says
Dialogue: 0,0:02:28.71,0:02:32.84,Default,,0000,0000,0000,,'Loan me a trillion dollars today and I\Npromise over a 10-year period
Dialogue: 0,0:02:32.84,0:02:35.96,Default,,0000,0000,0000,,I'm gonna pay you back that trillion\Ndollars plus interest.'
Dialogue: 0,0:02:35.96,0:02:39.26,Default,,0000,0000,0000,,But what you need to understand is that\NTreasury bonds
Dialogue: 0,0:02:39.26,0:02:43.00,Default,,0000,0000,0000,,are our national debt. These glorified\NI.O.U.s
Dialogue: 0,0:02:43.00,0:02:47.64,Default,,0000,0000,0000,,are to be paid back by you and I and our\Ndescendants through future taxation.
Dialogue: 0,0:02:47.64,0:02:49.06,Default,,0000,0000,0000,,Therefore:
Dialogue: 0,0:02:49.06,0:02:52.57,Default,,0000,0000,0000,,When the government issues a bond it\Nsteals prosperity
Dialogue: 0,0:02:52.57,0:02:56.64,Default,,0000,0000,0000,,out as the future so that it can spend\Nit today. The Treasury then holds a bond
Dialogue: 0,0:02:56.64,0:02:57.55,Default,,0000,0000,0000,,auction
Dialogue: 0,0:02:57.55,0:03:01.99,Default,,0000,0000,0000,,and the world's largest banks show up and\Ncompete to buy part of our national debt
Dialogue: 0,0:03:01.99,0:03:05.96,Default,,0000,0000,0000,,and make a profit on by earning interest.\NYou'll notice that as we move through
Dialogue: 0,0:03:05.96,0:03:07.08,Default,,0000,0000,0000,,this process
Dialogue: 0,0:03:07.08,0:03:10.67,Default,,0000,0000,0000,,the big banks are there taking a cut\Nevery step of the way.
Dialogue: 0,0:03:10.67,0:03:14.43,Default,,0000,0000,0000,,This isn't by chance as you'll see\Nshortly. Then,
Dialogue: 0,0:03:14.43,0:03:18.05,Default,,0000,0000,0000,,through a shell game called Open Market\NOperations the banks get to sell some of
Dialogue: 0,0:03:18.05,0:03:19.80,Default,,0000,0000,0000,,those bonds to the Federal Reserve
Dialogue: 0,0:03:19.80,0:03:22.92,Default,,0000,0000,0000,,at a profit. To pay for the bonds the Federal\NReserve
Dialogue: 0,0:03:22.92,0:03:26.68,Default,,0000,0000,0000,,opens up its big old checkbook and\Nwrites bad
Dialogue: 0,0:03:26.68,0:03:30.94,Default,,0000,0000,0000,,bogus counterfeit checks that should\Nbounce because they're drawn on an account that
Dialogue: 0,0:03:30.94,0:03:33.71,Default,,0000,0000,0000,,always has a zero balance, there isn't\None penny
Dialogue: 0,0:03:33.71,0:03:37.80,Default,,0000,0000,0000,,in there. To quote from the Boston\NFederal Reserve: 'When you are I write a
Dialogue: 0,0:03:37.80,0:03:40.01,Default,,0000,0000,0000,,check there must be sufficient funds
Dialogue: 0,0:03:40.01,0:03:44.38,Default,,0000,0000,0000,,in our account to cover that check, but when\Nthe Federal Reserve writes a check
Dialogue: 0,0:03:44.38,0:03:48.03,Default,,0000,0000,0000,,there is no bank deposit on which that\Ncheck is drawn.
Dialogue: 0,0:03:48.03,0:03:51.94,Default,,0000,0000,0000,,When the Federal Reserve writes a check\Nit is creating money."
Dialogue: 0,0:03:51.94,0:03:55.77,Default,,0000,0000,0000,,The Fed then hands those checks to the\Nbanks and at this point currency
Dialogue: 0,0:03:55.77,0:03:57.29,Default,,0000,0000,0000,,springs into existence.
Dialogue: 0,0:03:57.29,0:04:01.57,Default,,0000,0000,0000,,The banks then take that currency and\Nbuy more bonds at the next Treasury
Dialogue: 0,0:04:01.57,0:04:02.02,Default,,0000,0000,0000,,auction.
Dialogue: 0,0:04:02.02,0:04:05.60,Default,,0000,0000,0000,,But what is a check? A check is also\Nan I.O.U.
Dialogue: 0,0:04:05.60,0:04:09.44,Default,,0000,0000,0000,,When you write a check you're making a\Nnote that says "Here's my I.O.U. for
Dialogue: 0,0:04:09.44,0:04:10.06,Default,,0000,0000,0000,,cash,
Dialogue: 0,0:04:10.06,0:04:14.21,Default,,0000,0000,0000,,all you have to do is go to the bank and\Npick it up." Now it's very very important
Dialogue: 0,0:04:14.21,0:04:16.29,Default,,0000,0000,0000,,that you understand this process
Dialogue: 0,0:04:16.29,0:04:19.99,Default,,0000,0000,0000,,because we're going to come back later\Nand show you the devastating effect this
Dialogue: 0,0:04:19.99,0:04:20.97,Default,,0000,0000,0000,,has on you.
Dialogue: 0,0:04:20.97,0:04:24.26,Default,,0000,0000,0000,,The treasury issues I.O.U.s, (bonds).
Dialogue: 0,0:04:24.26,0:04:28.29,Default,,0000,0000,0000,,The banks then buy those I.O.U.s with\Ncurrency. The Federal Reserve
Dialogue: 0,0:04:28.29,0:04:32.73,Default,,0000,0000,0000,,then writes I.O.U.s (checks) and hands them\Nto the banks in exchange for the
Dialogue: 0,0:04:32.73,0:04:33.99,Default,,0000,0000,0000,,Treasury's I.O.U.s
Dialogue: 0,0:04:33.99,0:04:38.67,Default,,0000,0000,0000,,(the bonds). And currency is created. So\Nwhat's really happening is the Federal
Dialogue: 0,0:04:38.67,0:04:39.71,Default,,0000,0000,0000,,Reserve and the Treasury
Dialogue: 0,0:04:39.71,0:04:43.61,Default,,0000,0000,0000,,are just swapping I.O.U.s, using the\Nbanks as middlemen,
Dialogue: 0,0:04:43.61,0:04:48.29,Default,,0000,0000,0000,,and abracadabra presto currency\Nmagically springs into existence.
Dialogue: 0,0:04:48.29,0:04:51.52,Default,,0000,0000,0000,,This process repeats and repeats over and\Nover again
Dialogue: 0,0:04:51.52,0:04:55.56,Default,,0000,0000,0000,,enriching the banks and indebting the\Npublic by raising the national debt.
Dialogue: 0,0:04:55.56,0:04:59.69,Default,,0000,0000,0000,,The end result is that there's a buildup\Nof bonds at the Federal Reserve
Dialogue: 0,0:04:59.69,0:05:03.22,Default,,0000,0000,0000,,and currency at the Treasury. This process\Nis also where
Dialogue: 0,0:05:03.22,0:05:06.88,Default,,0000,0000,0000,,all paper currency comes from. The\NFederal Reserve and the government
Dialogue: 0,0:05:06.88,0:05:08.57,Default,,0000,0000,0000,,mistakenly call it 'Base Money'
Dialogue: 0,0:05:08.57,0:05:12.70,Default,,0000,0000,0000,,because they didn't watch Episode 1 of\Nthis series, and they don't know the
Dialogue: 0,0:05:12.70,0:05:14.02,Default,,0000,0000,0000,,difference between money
Dialogue: 0,0:05:14.02,0:05:18.51,Default,,0000,0000,0000,,and currency. But I will correctly\Nrefer to it as 'Base Currency' because
Dialogue: 0,0:05:18.51,0:05:19.66,Default,,0000,0000,0000,,it is not money...
Dialogue: 0,0:05:19.66,0:05:23.54,Default,,0000,0000,0000,,it is CURRENCY, and as we've learned\Nthere is a big difference:
Dialogue: 0,0:05:23.54,0:05:27.92,Default,,0000,0000,0000,,Money has to be a store of value\Nand maintain its purchasing power over
Dialogue: 0,0:05:27.92,0:05:29.40,Default,,0000,0000,0000,,long periods of time.
Dialogue: 0,0:05:29.40,0:05:33.20,Default,,0000,0000,0000,,We learned in Episode 1 that earlier\Nin our history our paper currency was
Dialogue: 0,0:05:33.20,0:05:34.33,Default,,0000,0000,0000,,just a claim check.
Dialogue: 0,0:05:34.33,0:05:38.14,Default,,0000,0000,0000,,It was a representation for real money\Nof intrinsic value,
Dialogue: 0,0:05:38.14,0:05:41.15,Default,,0000,0000,0000,,the gold and silver that was held on\Ndeposit at the Treasury.
Dialogue: 0,0:05:41.15,0:05:45.64,Default,,0000,0000,0000,,You could walk into any bank and slap\Nyour currency, like say a twenty dollar
Dialogue: 0,0:05:45.64,0:05:46.14,Default,,0000,0000,0000,,bill
Dialogue: 0,0:05:46.14,0:05:50.51,Default,,0000,0000,0000,,on the counter, and redeem it for real\NmoneyÉa twenty dollar gold piece.
Dialogue: 0,0:05:50.51,0:05:53.74,Default,,0000,0000,0000,,But now this base currency that's piling\Nup back here
Dialogue: 0,0:05:53.74,0:05:57.67,Default,,0000,0000,0000,,is really nothing but a receipt or a\Nclaim check on an I.O.U.
Dialogue: 0,0:05:57.67,0:06:01.90,Default,,0000,0000,0000,,(that bond), so it's really nothing but a\Nsupply of numbers.
Dialogue: 0,0:06:01.90,0:06:05.08,Default,,0000,0000,0000,,The Treasury then deposits the newly\Ncreated currency in the various branches
Dialogue: 0,0:06:05.08,0:06:06.55,Default,,0000,0000,0000,,of the government,
Dialogue: 0,0:06:06.55,0:06:09.70,Default,,0000,0000,0000,,and the politicians say "Hey thanks for\Nthat!",
Dialogue: 0,0:06:09.70,0:06:13.39,Default,,0000,0000,0000,,and the government does some deficit\Nspending on public works,
Dialogue: 0,0:06:13.39,0:06:16.78,Default,,0000,0000,0000,,social programs, and war.
Dialogue: 0,0:06:16.78,0:06:20.80,Default,,0000,0000,0000,,The government employees, contractors and\Nsoldiers then deposit their pay in the
Dialogue: 0,0:06:20.80,0:06:22.39,Default,,0000,0000,0000,,banks.
Dialogue: 0,0:06:22.39,0:06:26.33,Default,,0000,0000,0000,,Now this may come as a shock to you, but when\Nyou deposit your currency with the bank
Dialogue: 0,0:06:26.33,0:06:26.83,Default,,0000,0000,0000,,you're not
Dialogue: 0,0:06:26.83,0:06:30.86,Default,,0000,0000,0000,,actually depositing it into an account\Nto be safely held in trust for you.
Dialogue: 0,0:06:30.86,0:06:34.53,Default,,0000,0000,0000,,Instead, you're actually loaning the bank\Nyour currency,
Dialogue: 0,0:06:34.53,0:06:38.61,Default,,0000,0000,0000,,and within certain legal limits they can do\Nwith it pretty much anything they please.
Dialogue: 0,0:06:38.61,0:06:42.33,Default,,0000,0000,0000,,This includes gambling in the stock\Nmarket, and loaning it out...
Dialogue: 0,0:06:42.33,0:06:45.88,Default,,0000,0000,0000,,at a profit of course.
Dialogue: 0,0:06:45.88,0:06:49.19,Default,,0000,0000,0000,,Now this is where the machine of currency\Ncreation really gets cranking,
Dialogue: 0,0:06:49.19,0:06:52.39,Default,,0000,0000,0000,,because this is where something called\N'Fractional Reserve Lending' comes into
Dialogue: 0,0:06:52.39,0:06:53.40,Default,,0000,0000,0000,,play.
Dialogue: 0,0:06:53.40,0:06:57.41,Default,,0000,0000,0000,,Fractional Reserve Lending is exactly\Nwhat it says. The banks are allowed
Dialogue: 0,0:06:57.41,0:07:01.49,Default,,0000,0000,0000,,to reserve only a fraction of your\Ndeposit and long the rest out.
Dialogue: 0,0:07:01.49,0:07:05.94,Default,,0000,0000,0000,,Although reserve ratios may vary, I'm\Ngoing to use a 10 percent reserve ratio
Dialogue: 0,0:07:05.94,0:07:06.76,Default,,0000,0000,0000,,as our example.
Dialogue: 0,0:07:06.76,0:07:11.37,Default,,0000,0000,0000,,If you deposit $100 dollars in your\Naccount, the bank can legally take ninety
Dialogue: 0,0:07:11.37,0:07:14.10,Default,,0000,0000,0000,,dollars of it and loan it out without\Ntelling you.
Dialogue: 0,0:07:14.10,0:07:17.67,Default,,0000,0000,0000,,The bank must hold ten dollars of your\Ndeposit in reserve
Dialogue: 0,0:07:17.67,0:07:21.74,Default,,0000,0000,0000,,just in case you want some of it. These\Nreserves are called 'Vault Cash'.
Dialogue: 0,0:07:21.74,0:07:25.76,Default,,0000,0000,0000,,But why does your bank account still say\Nyou have one hundred dollars if the bank
Dialogue: 0,0:07:25.76,0:07:27.76,Default,,0000,0000,0000,,has stolen ninety dollars of it?
Dialogue: 0,0:07:27.76,0:07:31.35,Default,,0000,0000,0000,,Because the bank left I.O.U.s it\Ncreated called 'bank credit'
Dialogue: 0,0:07:31.35,0:07:34.62,Default,,0000,0000,0000,,in its place. Now I know this sounds\Ncrazy,
Dialogue: 0,0:07:34.62,0:07:39.55,Default,,0000,0000,0000,,but here it is in black and white from\Nthe Fed: "Commercial banks create
Dialogue: 0,0:07:39.55,0:07:40.71,Default,,0000,0000,0000,,checkbook money
Dialogue: 0,0:07:40.71,0:07:45.55,Default,,0000,0000,0000,,when they grant a loan simply by adding\Nnew deposit dollars in accounts
Dialogue: 0,0:07:45.55,0:07:49.47,Default,,0000,0000,0000,,on their books in exchange for a\Nborrower's I.O.U."
Dialogue: 0,0:07:49.47,0:07:53.55,Default,,0000,0000,0000,,These are nothing but numbers that the\Nbanks type into their computers,
Dialogue: 0,0:07:53.55,0:07:57.24,Default,,0000,0000,0000,,and even though these bank credit I.O.U.\Nnumbers
Dialogue: 0,0:07:57.24,0:08:01.25,Default,,0000,0000,0000,,are very different from base currency\Nnumbers (because they only exist in
Dialogue: 0,0:08:01.25,0:08:02.01,Default,,0000,0000,0000,,computers),
Dialogue: 0,0:08:02.01,0:08:07.27,Default,,0000,0000,0000,,they are still currency. So now there is\None hundred ninety dollars in existence.
Dialogue: 0,0:08:07.27,0:08:11.90,Default,,0000,0000,0000,,Now the reason people take out loans\Nfrom the banks is to buy something.
Dialogue: 0,0:08:11.90,0:08:15.97,Default,,0000,0000,0000,,They're going to buy a house or a car or\Nsomething like that.
Dialogue: 0,0:08:15.97,0:08:21.03,Default,,0000,0000,0000,,So the borrower takes the ninety dollars that \Nthe bank loaned to him from your account,
Dialogue: 0,0:08:21.03,0:08:25.88,Default,,0000,0000,0000,,and he pays the seller of item. But\Nthen the seller deposits that currency
Dialogue: 0,0:08:25.88,0:08:27.04,Default,,0000,0000,0000,,into his account,
Dialogue: 0,0:08:27.04,0:08:30.10,Default,,0000,0000,0000,,and his bank loans out ninety percent of\Nthat,
Dialogue: 0,0:08:30.10,0:08:33.91,Default,,0000,0000,0000,,and leaves bank credit numbers in its\Nplace. So now there's two hundred and
Dialogue: 0,0:08:33.91,0:08:36.11,Default,,0000,0000,0000,,seventy-one dollars in existence.
Dialogue: 0,0:08:36.11,0:08:40.30,Default,,0000,0000,0000,,This process repeats and repeats until\Nunder a 10 percent reserve ratio
Dialogue: 0,0:08:40.30,0:08:44.72,Default,,0000,0000,0000,,an initial deposit of just one hundred\Ndollars can create up to one thousand
Dialogue: 0,0:08:44.72,0:08:46.36,Default,,0000,0000,0000,,dollars of bank credit
Dialogue: 0,0:08:46.36,0:08:49.71,Default,,0000,0000,0000,,all backed by one hundred dollars of vault\Ncash,
Dialogue: 0,0:08:49.71,0:08:54.34,Default,,0000,0000,0000,,just 10 percent. But as I said reserve\Nratios vary wildly...
Dialogue: 0,0:08:54.34,0:08:57.50,Default,,0000,0000,0000,,on some deposits it's 10 percent on\Nothers
Dialogue: 0,0:08:57.50,0:09:01.26,Default,,0000,0000,0000,,its 3 percent and on some forms of deposits\Nreserve requirements
Dialogue: 0,0:09:01.26,0:09:06.32,Default,,0000,0000,0000,,are zero! The result is that the expansion the\Ncurrency supply by the banks is
Dialogue: 0,0:09:06.32,0:09:09.41,Default,,0000,0000,0000,,far greater than even this example would\Nlead you to believe.
Dialogue: 0,0:09:09.41,0:09:13.70,Default,,0000,0000,0000,,So once again, when currency is deposited\Nin the banks,
Dialogue: 0,0:09:13.70,0:09:17.79,Default,,0000,0000,0000,,the banks get to lend it out and then it\Ngets we redeposited and relent,
Dialogue: 0,0:09:17.79,0:09:21.36,Default,,0000,0000,0000,,redeposited and relent, redeposited and\Nrelent
Dialogue: 0,0:09:21.36,0:09:24.75,Default,,0000,0000,0000,,over and over again creating bank credit\Nall the way.
Dialogue: 0,0:09:24.75,0:09:28.94,Default,,0000,0000,0000,,This is where the vast majority of our\Ncurrency supply comes from.
Dialogue: 0,0:09:28.94,0:09:32.05,Default,,0000,0000,0000,,In fact 92 to 96 percent of
Dialogue: 0,0:09:32.05,0:09:36.03,Default,,0000,0000,0000,,all currency in existence is created\Nnot by the government,
Dialogue: 0,0:09:36.03,0:09:39.70,Default,,0000,0000,0000,,but here in the banking system. Now,
Dialogue: 0,0:09:39.70,0:09:43.82,Default,,0000,0000,0000,,massive amounts of currency spewing into\Nsociety may at first sound like a fun
Dialogue: 0,0:09:43.82,0:09:44.59,Default,,0000,0000,0000,,idea...
Dialogue: 0,0:09:44.59,0:09:48.49,Default,,0000,0000,0000,,that is until you remember one of the\Nmost important Hidden Secrets Of Money
Dialogue: 0,0:09:48.49,0:09:49.67,Default,,0000,0000,0000,,from Episode 1:
Dialogue: 0,0:09:49.67,0:09:53.53,Default,,0000,0000,0000,,That the prices of everyday goods and\Nservices act as a sponge
Dialogue: 0,0:09:53.53,0:09:57.49,Default,,0000,0000,0000,,on an expanding currency supply. The more\Ncurrency we have
Dialogue: 0,0:09:57.49,0:09:59.54,Default,,0000,0000,0000,,the more prices rise.
Dialogue: 0,0:09:59.54,0:10:04.03,Default,,0000,0000,0000,,This is where inflation comes from. The\Ntrue definition of inflation
Dialogue: 0,0:10:04.03,0:10:07.97,Default,,0000,0000,0000,,is an expansion of the currency supply,\Nrising prices
Dialogue: 0,0:10:07.97,0:10:09.52,Default,,0000,0000,0000,,are merely the symptom.
Dialogue: 0,0:10:09.52,0:10:13.35,Default,,0000,0000,0000,,So our entire currency supply is nothing\Nbut a couple bucks whipped up in this
Dialogue: 0,0:10:13.35,0:10:14.73,Default,,0000,0000,0000,,hocus-pocus scam
Dialogue: 0,0:10:14.73,0:10:18.32,Default,,0000,0000,0000,,where the Treasury and the Federal\NReserve swap glorified I.O.U.s
Dialogue: 0,0:10:18.32,0:10:21.88,Default,,0000,0000,0000,,and a bunch of numbers that the banks\Njust type into their computers.
Dialogue: 0,0:10:21.88,0:10:25.98,Default,,0000,0000,0000,,That's itÉthat's our entire currency supply.\NIt's nothing but a supply of
Dialogue: 0,0:10:25.98,0:10:26.72,Default,,0000,0000,0000,,numbers.
Dialogue: 0,0:10:26.72,0:10:29.83,Default,,0000,0000,0000,,Some of them printed, most of them typed,
Dialogue: 0,0:10:29.83,0:10:33.93,Default,,0000,0000,0000,,and there is nothing else. But if you\Nthought that was crazy,
Dialogue: 0,0:10:33.93,0:10:38.55,Default,,0000,0000,0000,,get ready to enter the twilight zone ofmodern\Neconomics. We work for some of that
Dialogue: 0,0:10:38.55,0:10:39.34,Default,,0000,0000,0000,,currency supply.
Dialogue: 0,0:10:39.34,0:10:44.26,Default,,0000,0000,0000,,True wealth is your time, but we trade\Naway moments in our lives
Dialogue: 0,0:10:44.26,0:10:47.55,Default,,0000,0000,0000,,hour by hour, day by day, and year by year
Dialogue: 0,0:10:47.55,0:10:51.44,Default,,0000,0000,0000,,for numbers that somebody printed on\Npieces of paper or just typed into a
Dialogue: 0,0:10:51.44,0:10:52.45,Default,,0000,0000,0000,,computer.
Dialogue: 0,0:10:52.45,0:10:56.41,Default,,0000,0000,0000,,Now those numbers represent our blood,\Nsweat, tears, labor,
Dialogue: 0,0:10:56.41,0:11:02.11,Default,,0000,0000,0000,,ideas and talent. We are what gives\Nthe currency its value.
Dialogue: 0,0:11:02.11,0:11:05.72,Default,,0000,0000,0000,,But here comes the really cruel joke...we\Nwork hard,
Dialogue: 0,0:11:05.72,0:11:09.77,Default,,0000,0000,0000,,so that we can save some of that currency, so\Nthat we can pay the tax collector
Dialogue: 0,0:11:09.77,0:11:14.65,Default,,0000,0000,0000,,(in the United States it's known as the IRS),\Nthey then turn it over to the Treasury,
Dialogue: 0,0:11:14.65,0:11:17.85,Default,,0000,0000,0000,,so that the Treasury can pay the\Nprincipal plus interest
Dialogue: 0,0:11:17.85,0:11:21.53,Default,,0000,0000,0000,,on that bond that the Federal Reserve bought\Nwith a check drawn
Dialogue: 0,0:11:21.53,0:11:24.53,Default,,0000,0000,0000,,on an account that has nothing in it.
Dialogue: 0,0:11:24.53,0:11:29.33,Default,,0000,0000,0000,,Now let's do a recap on this\Nsection because this is where the
Dialogue: 0,0:11:29.33,0:11:31.38,Default,,0000,0000,0000,,system begins to rob you and I
Dialogue: 0,0:11:31.38,0:11:36.81,Default,,0000,0000,0000,,on a massive scale. Much of our taxes are\Nnot used for schools, roads and public
Dialogue: 0,0:11:36.81,0:11:37.82,Default,,0000,0000,0000,,services,
Dialogue: 0,0:11:37.82,0:11:41.21,Default,,0000,0000,0000,,but to pay interest on bonds that the\NFederal Reserve
Dialogue: 0,0:11:41.21,0:11:44.88,Default,,0000,0000,0000,,bought with a check drawn on an account that\Nhas nothing
Dialogue: 0,0:11:44.88,0:11:47.89,Default,,0000,0000,0000,,in it. The Federal Reserve is committing\NFRAUD.
Dialogue: 0,0:11:47.89,0:11:51.49,Default,,0000,0000,0000,,But here's one of the biggest secrets\Nof them all:
Dialogue: 0,0:11:51.49,0:11:56.04,Default,,0000,0000,0000,,Before the establishment at the Federal\NReserve there was no need for personal
Dialogue: 0,0:11:56.04,0:12:00.79,Default,,0000,0000,0000,,income tax. The Federal Reserve was created\Nin 1913
Dialogue: 0,0:12:00.79,0:12:03.94,Default,,0000,0000,0000,,and that very same year the Constitution
Dialogue: 0,0:12:03.94,0:12:09.63,Default,,0000,0000,0000,,was amended to allow income tax. Do you\Nreally think this was just a coincidence?
Dialogue: 0,0:12:09.63,0:12:13.15,Default,,0000,0000,0000,,Ask yourself how much income tax you've paid
Dialogue: 0,0:12:13.15,0:12:17.87,Default,,0000,0000,0000,,over your lifetime. Much of it has been\Nsilently siphoned away
Dialogue: 0,0:12:17.87,0:12:23.48,Default,,0000,0000,0000,,into the hands of those who own the\Nsystem. Yes this system has owners...
Dialogue: 0,0:12:23.48,0:12:27.09,Default,,0000,0000,0000,,who they are is an even bigger secret\Nthat we'll get to shortly,
Dialogue: 0,0:12:27.09,0:12:31.22,Default,,0000,0000,0000,,but first we need to understand the\Nmumbo jumbo of the so-called
Dialogue: 0,0:12:31.22,0:12:35.78,Default,,0000,0000,0000,,'debt ceiling'. It's all based on a huge\Nparadox:
Dialogue: 0,0:12:35.78,0:12:40.64,Default,,0000,0000,0000,,There was interest due on that bond, and\Nthere was interest due on
Dialogue: 0,0:12:40.64,0:12:43.87,Default,,0000,0000,0000,,every one of those loans that the banks made.\NThat means
Dialogue: 0,0:12:43.87,0:12:48.02,Default,,0000,0000,0000,,that there is interest due on every dollar\Nin existence.
Dialogue: 0,0:12:48.02,0:12:52.93,Default,,0000,0000,0000,,Let me ask you something: If you borrow\Nthe very first dollar into existence and
Dialogue: 0,0:12:52.93,0:12:55.70,Default,,0000,0000,0000,,that's the only dollar that exists on\Nthe planet,
Dialogue: 0,0:12:55.70,0:12:59.92,Default,,0000,0000,0000,,but you promise to pay it back plus\Nanother dollars worth of interest...
Dialogue: 0,0:12:59.92,0:13:04.58,Default,,0000,0000,0000,,where you get the second dollar to pay the\Ninterest? The answer is that you have to
Dialogue: 0,0:13:04.58,0:13:06.39,Default,,0000,0000,0000,,borrow that one into existence
Dialogue: 0,0:13:06.39,0:13:10.20,Default,,0000,0000,0000,,and promise to pay it back with\Ninterest as well, so now there are two
Dialogue: 0,0:13:10.20,0:13:11.49,Default,,0000,0000,0000,,dollars in existence
Dialogue: 0,0:13:11.49,0:13:16.48,Default,,0000,0000,0000,,but you owe fourÉand so on and so on. \NThe result is there's never enough
Dialogue: 0,0:13:16.48,0:13:17.96,Default,,0000,0000,0000,,currency to pay the debt.
Dialogue: 0,0:13:17.96,0:13:21.19,Default,,0000,0000,0000,,There is always more debt in the system
Dialogue: 0,0:13:21.19,0:13:25.59,Default,,0000,0000,0000,,than there is currency in existence to\Npay the debt. Therefore,
Dialogue: 0,0:13:25.59,0:13:28.91,Default,,0000,0000,0000,,the whole system is impossible it is\Nfinite
Dialogue: 0,0:13:28.91,0:13:33.05,Default,,0000,0000,0000,,it will come to an end one day. What\Nwould happen if the government stopped
Dialogue: 0,0:13:33.05,0:13:34.76,Default,,0000,0000,0000,,borrowing to do deficit spending?
Dialogue: 0,0:13:34.76,0:13:38.13,Default,,0000,0000,0000,,Are the payments on those treasury bonds\Ngoing to stop?
Dialogue: 0,0:13:38.13,0:13:42.90,Default,,0000,0000,0000,,What would happen if the public stopped\Nborrowing and going deeper into debt?
Dialogue: 0,0:13:42.90,0:13:45.91,Default,,0000,0000,0000,,Are your house and car payments going to\Nstop?
Dialogue: 0,0:13:45.91,0:13:49.25,Default,,0000,0000,0000,,No, there is a payment due
Dialogue: 0,0:13:49.25,0:13:53.35,Default,,0000,0000,0000,,every month on the principal plus the\Ninterest on every dollar in existence
Dialogue: 0,0:13:53.35,0:13:55.35,Default,,0000,0000,0000,,and those payments do not stop.
Dialogue: 0,0:13:55.35,0:14:00.47,Default,,0000,0000,0000,,If we stop borrowing then no new\Ncurrency is created to replace the
Dialogue: 0,0:14:00.47,0:14:03.08,Default,,0000,0000,0000,,currency that we used to make those\Npayments.
Dialogue: 0,0:14:03.08,0:14:07.03,Default,,0000,0000,0000,,Whether you're making a payment on a\Nloan or paying tax to make a payment on
Dialogue: 0,0:14:07.03,0:14:07.76,Default,,0000,0000,0000,,a bond,
Dialogue: 0,0:14:07.76,0:14:11.03,Default,,0000,0000,0000,,the portion of the payment that goes to\Npay off the principal
Dialogue: 0,0:14:11.03,0:14:15.99,Default,,0000,0000,0000,,extinguishes that portion of the debt.\NBut the debt also extinguishes the
Dialogue: 0,0:14:15.99,0:14:16.58,Default,,0000,0000,0000,,currency.
Dialogue: 0,0:14:16.58,0:14:19.86,Default,,0000,0000,0000,,Currency and debt are like matter and\Nanti-matter.
Dialogue: 0,0:14:19.86,0:14:24.61,Default,,0000,0000,0000,,When they meet they annihilate each\Nother. If we just pay off the principal
Dialogue: 0,0:14:24.61,0:14:25.11,Default,,0000,0000,0000,,only
Dialogue: 0,0:14:25.11,0:14:28.74,Default,,0000,0000,0000,,on all the loans and bonds that exist\Nthe entire currency supply
Dialogue: 0,0:14:28.74,0:14:32.63,Default,,0000,0000,0000,,just vanishes. So if we don't go deeper\Ninto debt every year
Dialogue: 0,0:14:32.63,0:14:37.23,Default,,0000,0000,0000,,look what happens: the whole thing goes\Ninto a deflationary collapse under the
Dialogue: 0,0:14:37.23,0:14:38.00,Default,,0000,0000,0000,,weight of those payments.
Dialogue: 0,0:14:38.00,0:14:43.11,Default,,0000,0000,0000,,Politicians and pundits alike talk about\Nbalancing the budget
Dialogue: 0,0:14:43.11,0:14:47.17,Default,,0000,0000,0000,,paying down the debt and living within\Nour means. They don't understand that
Dialogue: 0,0:14:47.17,0:14:48.44,Default,,0000,0000,0000,,that is deflationary,
Dialogue: 0,0:14:48.44,0:14:53.37,Default,,0000,0000,0000,,it is impossible to do under our current\Nmonetary system without collapsing the
Dialogue: 0,0:14:53.37,0:14:55.57,Default,,0000,0000,0000,,whole economy.
Dialogue: 0,0:14:55.57,0:14:59.08,Default,,0000,0000,0000,,This is why any talk of a debt ceiling\Nis not only ridiculous...
Dialogue: 0,0:14:59.08,0:15:02.88,Default,,0000,0000,0000,,its delusional. The system is designed to\Nrequire
Dialogue: 0,0:15:02.88,0:15:07.90,Default,,0000,0000,0000,,ever-increasing levels of debt just to\Ncontinue, and that's why politicians will
Dialogue: 0,0:15:07.90,0:15:08.58,Default,,0000,0000,0000,,always
Dialogue: 0,0:15:08.58,0:15:12.04,Default,,0000,0000,0000,,kick the can down the road and raise\Nthis so-called
Dialogue: 0,0:15:12.04,0:15:17.22,Default,,0000,0000,0000,,'debt ceiling' over and over again until\Nthe whole system finally collapses under
Dialogue: 0,0:15:17.22,0:15:18.25,Default,,0000,0000,0000,,its own weight.
Dialogue: 0,0:15:18.25,0:15:22.00,Default,,0000,0000,0000,,In other words, they don't want it to\Ncollapse on their watch.
Dialogue: 0,0:15:22.00,0:15:25.60,Default,,0000,0000,0000,,The founding fathers of the United\NStates knew the dangers of central
Dialogue: 0,0:15:25.60,0:15:28.85,Default,,0000,0000,0000,,banking and fought to free themselves\Nfrom this very thing.
Dialogue: 0,0:15:28.85,0:15:32.23,Default,,0000,0000,0000,,The revolutionary war started out as a\Ntax revolt,
Dialogue: 0,0:15:32.23,0:15:36.44,Default,,0000,0000,0000,,but now we must pay tax just to have a\Nmonetary system.
Dialogue: 0,0:15:36.44,0:15:40.00,Default,,0000,0000,0000,,Having just suffered through the\Nhyperinflation of the Continental
Dialogue: 0,0:15:40.00,0:15:40.53,Default,,0000,0000,0000,,Dollar
Dialogue: 0,0:15:40.53,0:15:44.33,Default,,0000,0000,0000,,which was printed into oblivion to\Nfinance the Revolutionary War,
Dialogue: 0,0:15:44.33,0:15:49.45,Default,,0000,0000,0000,,they understood the dangers of fiat\Ncurrency and debt based monetary systems.
Dialogue: 0,0:15:49.45,0:15:53.83,Default,,0000,0000,0000,,So to protect future generations from\Ninstitutional theft and
Dialogue: 0,0:15:53.83,0:15:58.22,Default,,0000,0000,0000,,out-of-control government they wrote\Ninto the constitution that only gold and
Dialogue: 0,0:15:58.22,0:15:59.64,Default,,0000,0000,0000,,silver can be money,
Dialogue: 0,0:15:59.64,0:16:04.75,Default,,0000,0000,0000,,for the simple fact that you can't print\Nthem. Our current system is not only
Dialogue: 0,0:16:04.75,0:16:06.16,Default,,0000,0000,0000,,unconstitutional,
Dialogue: 0,0:16:06.16,0:16:09.25,Default,,0000,0000,0000,,but it robs us of the liberty and\Nprosperity
Dialogue: 0,0:16:09.25,0:16:13.79,Default,,0000,0000,0000,,our forefathers fought and died for. We\Nare all
Dialogue: 0,0:16:13.79,0:16:17.03,Default,,0000,0000,0000,,feeling the effects of ignoring the\NConstitution right now.
Dialogue: 0,0:16:17.03,0:16:20.10,Default,,0000,0000,0000,,By forcing more currency into\Ncirculation
Dialogue: 0,0:16:20.10,0:16:23.68,Default,,0000,0000,0000,,our purchasing power is diluted.\NInflation
Dialogue: 0,0:16:23.68,0:16:26.73,Default,,0000,0000,0000,,is a slow and insidious stealth tax
Dialogue: 0,0:16:26.73,0:16:30.58,Default,,0000,0000,0000,,that is simply the result of this in\Ndept-based monetary system.
Dialogue: 0,0:16:30.58,0:16:35.14,Default,,0000,0000,0000,,This system empowers and benefits those\Nwho create the currency and receive it
Dialogue: 0,0:16:35.14,0:16:35.76,Default,,0000,0000,0000,,first
Dialogue: 0,0:16:35.76,0:16:39.90,Default,,0000,0000,0000,,as they get to spend it into circulation\Nbefore it has an effect on the economy.
Dialogue: 0,0:16:39.90,0:16:43.89,Default,,0000,0000,0000,,They're stealing purchasing power from\Nyou and transferring it to the banks and the
Dialogue: 0,0:16:43.89,0:16:44.43,Default,,0000,0000,0000,,government
Dialogue: 0,0:16:44.43,0:16:49.15,Default,,0000,0000,0000,,every hour of every day because of this\Nfalse monetary system.
Dialogue: 0,0:16:49.15,0:16:53.84,Default,,0000,0000,0000,,And it's not like the people at the top\Ndon't know this. To quote the Federal Reserve
Dialogue: 0,0:16:53.84,0:16:58.05,Default,,0000,0000,0000,,"The decrease in purchasing power\Nincurred by the holders of money
Dialogue: 0,0:16:58.05,0:17:02.60,Default,,0000,0000,0000,,due to inflation imparts gains to the\Nissuers of money."
Dialogue: 0,0:17:02.60,0:17:06.66,Default,,0000,0000,0000,,This is a fraud, it is a pyramid scheme,\Nit is a Ponzi scheme,
Dialogue: 0,0:17:06.66,0:17:11.33,Default,,0000,0000,0000,,it's a scam and it's a lie. Our entire\Nmonetary system
Dialogue: 0,0:17:11.33,0:17:16.93,Default,,0000,0000,0000,,is nothing but a form of legalized theft.\NBut here's the biggest con job of them all:
Dialogue: 0,0:17:16.93,0:17:20.46,Default,,0000,0000,0000,,The Federal Reserve is not federal - it\Nhas stockholders.
Dialogue: 0,0:17:20.46,0:17:23.77,Default,,0000,0000,0000,,There is no federal agency that has\Nstockholders.
Dialogue: 0,0:17:23.77,0:17:27.79,Default,,0000,0000,0000,,What's a stockholder? A stock\Nrepresents a percentage of
Dialogue: 0,0:17:27.79,0:17:31.04,Default,,0000,0000,0000,,ownership in a corporation, so the\Nstockholders
Dialogue: 0,0:17:31.04,0:17:34.77,Default,,0000,0000,0000,,are the owners of that corporation.\NTherefore the Federal Reserve is a
Dialogue: 0,0:17:34.77,0:17:36.86,Default,,0000,0000,0000,,private corporation with owners...
Dialogue: 0,0:17:36.86,0:17:40.82,Default,,0000,0000,0000,,and you can see it for yourself if you\Ngo to the Federal Reserve's website
Dialogue: 0,0:17:40.82,0:17:45.12,Default,,0000,0000,0000,,and it will say: "The stockholders\Nreceive an annual dividend of
Dialogue: 0,0:17:45.12,0:17:49.26,Default,,0000,0000,0000,,six-percent." Now we know that the stock\Nin the Federal Reserve was originally
Dialogue: 0,0:17:49.26,0:17:49.81,Default,,0000,0000,0000,,issued
Dialogue: 0,0:17:49.81,0:17:53.42,Default,,0000,0000,0000,,to the largest banks in the United\NStates but because of mergers and
Dialogue: 0,0:17:53.42,0:17:54.85,Default,,0000,0000,0000,,acquisitions through the years
Dialogue: 0,0:17:54.85,0:17:59.23,Default,,0000,0000,0000,,you can't actually trace who owns the\Nstock in the Federal Reserve. That's a
Dialogue: 0,0:17:59.23,0:18:03.16,Default,,0000,0000,0000,,very closely guarded secret. My guess\Nwould be that the owners
Dialogue: 0,0:18:03.16,0:18:06.87,Default,,0000,0000,0000,,are those primary dealers, the banks that\Nget to make a profit
Dialogue: 0,0:18:06.87,0:18:10.67,Default,,0000,0000,0000,,by selling part of our national debt-\Nthose bonds, to the Federal Reserve
Dialogue: 0,0:18:10.67,0:18:16.13,Default,,0000,0000,0000,,who buys them with a check from nothing!\NThen WE pay tax to pay the principal
Dialogue: 0,0:18:16.13,0:18:20.40,Default,,0000,0000,0000,,and the interest on those bonds so that\Nthe Federal Reserve can pay the banks a 6
Dialogue: 0,0:18:20.40,0:18:22.57,Default,,0000,0000,0000,,percent dividend.
Dialogue: 0,0:18:22.57,0:18:26.17,Default,,0000,0000,0000,,Don't be alarmed if you don't quite\Ncomprehend the deception of this system
Dialogue: 0,0:18:26.17,0:18:30.54,Default,,0000,0000,0000,,at first glance. Very few people do. It is\Npurposely complex.
Dialogue: 0,0:18:30.54,0:18:33.64,Default,,0000,0000,0000,,The economist John Maynard Keynes once\Nwrote:
Dialogue: 0,0:18:33.64,0:18:37.40,Default,,0000,0000,0000,,"By this means government may secretly\Nand unobserved
Dialogue: 0,0:18:37.40,0:18:42.47,Default,,0000,0000,0000,,confiscate the wealth of the people and not\None man in a million will detect the
Dialogue: 0,0:18:42.47,0:18:43.10,Default,,0000,0000,0000,,theft."
Dialogue: 0,0:18:43.10,0:18:46.15,Default,,0000,0000,0000,,I believe that presented correctly
Dialogue: 0,0:18:46.15,0:18:49.94,Default,,0000,0000,0000,,anyone can understand the system,\Nregardless of how complex it is.
Dialogue: 0,0:18:49.94,0:18:53.49,Default,,0000,0000,0000,,So let's do a recap and break it down\Neven more...
Dialogue: 0,0:18:53.49,0:18:57.40,Default,,0000,0000,0000,,The way this system works is that Step 1:
Dialogue: 0,0:18:57.40,0:19:02.54,Default,,0000,0000,0000,,The government creates glorified I.O.U.s\NThese bonds increase our national
Dialogue: 0,0:19:02.54,0:19:02.92,Default,,0000,0000,0000,,debt,
Dialogue: 0,0:19:02.92,0:19:06.63,Default,,0000,0000,0000,,and put the public on the hook to pay it\Nback. Step 2:
Dialogue: 0,0:19:06.63,0:19:10.92,Default,,0000,0000,0000,,I.O.U.s are swapped to create currency. The\NTreasury
Dialogue: 0,0:19:10.92,0:19:15.83,Default,,0000,0000,0000,,sells the bonds to the banks. The banks\Nthen turn around and sell our national
Dialogue: 0,0:19:15.83,0:19:16.38,Default,,0000,0000,0000,,debt
Dialogue: 0,0:19:16.38,0:19:20.67,Default,,0000,0000,0000,,at a profit to the Federal Reserve, which\Nthey probably own.
Dialogue: 0,0:19:20.67,0:19:24.47,Default,,0000,0000,0000,,The Federal Reserve then opens its checkbook\Nthat doesn't have a penny in it
Dialogue: 0,0:19:24.47,0:19:28.04,Default,,0000,0000,0000,,and buys those I.O.U.s with I.O.U.s it\Nwrites,
Dialogue: 0,0:19:28.04,0:19:32.26,Default,,0000,0000,0000,,checks on a checking account that has a zero\Nbalance.
Dialogue: 0,0:19:32.26,0:19:36.29,Default,,0000,0000,0000,,Then they give those checks to the\Nbanks and currency just springs into
Dialogue: 0,0:19:36.29,0:19:37.46,Default,,0000,0000,0000,,existence,
Dialogue: 0,0:19:37.46,0:19:41.91,Default,,0000,0000,0000,,and then the whole process repeats. This\Nresults in a build up of bonds at the
Dialogue: 0,0:19:41.91,0:19:43.01,Default,,0000,0000,0000,,Federal Reserve,
Dialogue: 0,0:19:43.01,0:19:47.37,Default,,0000,0000,0000,,and currency at the Treasury...which is\Nreally just a supply of numbers.
Dialogue: 0,0:19:47.37,0:19:50.29,Default,,0000,0000,0000,,The Treasury then deposits the numbers\Nin the various branches of the
Dialogue: 0,0:19:50.29,0:19:52.14,Default,,0000,0000,0000,,government and we get to Step 3:
Dialogue: 0,0:19:52.14,0:19:56.00,Default,,0000,0000,0000,,The government spends the numbers on\Npromises,
Dialogue: 0,0:19:56.00,0:19:59.87,Default,,0000,0000,0000,,public works, social programs and war.
Dialogue: 0,0:19:59.87,0:20:03.45,Default,,0000,0000,0000,,Then the government employees,\Ncontractors and soldiers deposit their
Dialogue: 0,0:20:03.45,0:20:04.83,Default,,0000,0000,0000,,pay into the banks
Dialogue: 0,0:20:04.83,0:20:09.51,Default,,0000,0000,0000,,and we get to Step 4: Where the banks\Nmultiply the numbers by magically
Dialogue: 0,0:20:09.51,0:20:10.72,Default,,0000,0000,0000,,inventing more
Dialogue: 0,0:20:10.72,0:20:14.53,Default,,0000,0000,0000,,I.O.U.s through Fractional Reserve\NLending, where they steal a portion of
Dialogue: 0,0:20:14.53,0:20:17.16,Default,,0000,0000,0000,,everyone's deposit and lend it out.
Dialogue: 0,0:20:17.16,0:20:21.60,Default,,0000,0000,0000,,That currency gets redeposited and then\Na portion is stolen again,
Dialogue: 0,0:20:21.60,0:20:25.70,Default,,0000,0000,0000,,and the process repeats over and over\Nmagnifying the currency supply
Dialogue: 0,0:20:25.70,0:20:27.19,Default,,0000,0000,0000,,exponentially.
Dialogue: 0,0:20:27.19,0:20:31.78,Default,,0000,0000,0000,,Then we work for some of those numbers\Nwhich brings us to Step 5:
Dialogue: 0,0:20:31.78,0:20:36.09,Default,,0000,0000,0000,,Where our numbers are taxed. We pay taxes\Nto the IRS
Dialogue: 0,0:20:36.09,0:20:40.22,Default,,0000,0000,0000,,who then turns our numbers over to the\NTreasury, so the Treasury can pay the
Dialogue: 0,0:20:40.22,0:20:44.56,Default,,0000,0000,0000,,principal plus the interest on bonds\Nthat were purchased by the Federal Reserve
Dialogue: 0,0:20:44.56,0:20:48.49,Default,,0000,0000,0000,,with a check from nothing. Then we get to\NStep 6:
Dialogue: 0,0:20:48.49,0:20:52.65,Default,,0000,0000,0000,,The Debt Ceiling Delusion. The system is\Ndesigned to require
Dialogue: 0,0:20:52.65,0:20:56.96,Default,,0000,0000,0000,,ever-increasing levels and debt and will\Neventually collapse under its own weight
Dialogue: 0,0:20:56.96,0:20:58.57,Default,,0000,0000,0000,,because politicians
Dialogue: 0,0:20:58.57,0:21:04.22,Default,,0000,0000,0000,,always kick the can down the road, they\Ndon't want it to collapse on their watch.
Dialogue: 0,0:21:04.22,0:21:08.42,Default,,0000,0000,0000,,And finally Step 7: The Secret Owners\NTake Their Cut.
Dialogue: 0,0:21:08.42,0:21:12.61,Default,,0000,0000,0000,,The world's largest banks own the Federal\NReserve, those banks make a profit
Dialogue: 0,0:21:12.61,0:21:15.19,Default,,0000,0000,0000,,selling our national debt top the Fed,
Dialogue: 0,0:21:15.19,0:21:20.00,Default,,0000,0000,0000,,they make a profit when the Fed pays\Nthem interest on the reserves held at the Fed,
Dialogue: 0,0:21:20.00,0:21:23.51,Default,,0000,0000,0000,,and the Fed pays them a six percent\Ndividend on their
Dialogue: 0,0:21:23.51,0:21:26.56,Default,,0000,0000,0000,,ownership of the Fed. This system
Dialogue: 0,0:21:26.56,0:21:31.00,Default,,0000,0000,0000,,is fundamentally evil. It funnels wealth\Nfrom the working population
Dialogue: 0,0:21:31.00,0:21:34.86,Default,,0000,0000,0000,,to the government and the banking sector.\Nit is the cause of the artificial booms
Dialogue: 0,0:21:34.86,0:21:36.87,Default,,0000,0000,0000,,and busts of modern economies,
Dialogue: 0,0:21:36.87,0:21:41.20,Default,,0000,0000,0000,,and it causes great disparity of wealth\Nbetween the rich and the working class.
Dialogue: 0,0:21:41.20,0:21:45.74,Default,,0000,0000,0000,,AND - it is only possible because we no\Nlonger use real money,
Dialogue: 0,0:21:45.74,0:21:50.57,Default,,0000,0000,0000,,we use currency. But worst of all it is a\Nform of enslavement.
Dialogue: 0,0:21:50.57,0:21:55.15,Default,,0000,0000,0000,,BOND is the root word of BONDAGE.\NWhenever a government issues a bond it
Dialogue: 0,0:21:55.15,0:21:58.44,Default,,0000,0000,0000,,is a promise to make us pay tax in the\Nfuture.
Dialogue: 0,0:21:58.44,0:22:02.06,Default,,0000,0000,0000,,Nobody asked you if you wanted to pay\Ntax today for the prosperity we all
Dialogue: 0,0:22:02.06,0:22:04.22,Default,,0000,0000,0000,,enjoyed in the last century.
Dialogue: 0,0:22:04.22,0:22:08.41,Default,,0000,0000,0000,,Nobody is asking our children if they\Nwant to work hard in the future
Dialogue: 0,0:22:08.41,0:22:12.64,Default,,0000,0000,0000,,to pay for the prosperity we're enjoying\Nnow. George Washington once wrote to
Dialogue: 0,0:22:12.64,0:22:14.16,Default,,0000,0000,0000,,James Madison:
Dialogue: 0,0:22:14.16,0:22:18.04,Default,,0000,0000,0000,,"No generation has the right to contract\Ndebts greater
Dialogue: 0,0:22:18.04,0:22:21.91,Default,,0000,0000,0000,,than can be paid off during the course\Nof its own existence."
Dialogue: 0,0:22:21.91,0:22:25.60,Default,,0000,0000,0000,,By stealing prosperity from tomorrow so\Nwe can spend it today
Dialogue: 0,0:22:25.60,0:22:29.32,Default,,0000,0000,0000,,we enslave ourselves and future\Ngenerations.
Dialogue: 0,0:22:29.32,0:22:32.87,Default,,0000,0000,0000,,Now this all sounds pretty bad but there\Nis great hope
Dialogue: 0,0:22:32.87,0:22:36.71,Default,,0000,0000,0000,,for YOU are the greatest threat to this\Nfalse monetary system.
Dialogue: 0,0:22:36.71,0:22:40.36,Default,,0000,0000,0000,,This system relies on the public being\Nignorant of its workings.
Dialogue: 0,0:22:40.36,0:22:43.48,Default,,0000,0000,0000,,Please share this knowledge with\Neveryone you know because an informed
Dialogue: 0,0:22:43.48,0:22:43.99,Default,,0000,0000,0000,,public
Dialogue: 0,0:22:43.99,0:22:47.57,Default,,0000,0000,0000,,that fully understands the system can\Nbuild a better future
Dialogue: 0,0:22:47.57,0:22:52.49,Default,,0000,0000,0000,,for generations to come. And now I leave you\Nwith this quote,
Dialogue: 0,0:22:52.49,0:22:56.93,Default,,0000,0000,0000,,widely attributed to a former Director\Nof the Bank Of England: "The modern banking system
Dialogue: 0,0:22:56.93,0:22:59.62,Default,,0000,0000,0000,,manufacturers money out of nothing.
Dialogue: 0,0:22:59.62,0:23:03.18,Default,,0000,0000,0000,,The process is perhaps the most\Nastounding piece of sleight of hand that
Dialogue: 0,0:23:03.18,0:23:04.20,Default,,0000,0000,0000,,was ever invented.
Dialogue: 0,0:23:04.20,0:23:07.29,Default,,0000,0000,0000,,Banking was conceived in iniquity
Dialogue: 0,0:23:07.29,0:23:11.76,Default,,0000,0000,0000,,and born in sin. Bankers own the earth.\NTake it away from them,
Dialogue: 0,0:23:11.76,0:23:15.83,Default,,0000,0000,0000,,but leave them the power to create money and\Ncontrol credit and with the flick of a
Dialogue: 0,0:23:15.83,0:23:16.37,Default,,0000,0000,0000,,pen
Dialogue: 0,0:23:16.37,0:23:21.04,Default,,0000,0000,0000,,they will create enough money to buy it\Nback again. If you want to continue as
Dialogue: 0,0:23:21.04,0:23:22.31,Default,,0000,0000,0000,,the slaves of bankers
Dialogue: 0,0:23:22.31,0:23:26.74,Default,,0000,0000,0000,,and pay the cost of your own slavery, let\Nthem continue to create money,
Dialogue: 0,0:23:26.74,0:23:32.14,Default,,0000,0000,0000,,and to control credit."
Dialogue: 0,0:23:32.14,0:23:34.46,Default,,0000,0000,0000,,This the Federal Reserve in Washington\NDC
Dialogue: 0,0:23:34.46,0:23:39.65,Default,,0000,0000,0000,,it's located on Constitution Street, and\Nthat is just as much a joke as the New
Dialogue: 0,0:23:39.65,0:23:42.38,Default,,0000,0000,0000,,York Fed being located on Liberty Street.
Dialogue: 0,0:23:42.38,0:23:46.47,Default,,0000,0000,0000,,Both of them are unconstitutional both\Nof them limit our Liberty,
Dialogue: 0,0:23:46.47,0:23:49.98,Default,,0000,0000,0000,,and they transfer wealth away from us\Nevery second of every day
Dialogue: 0,0:23:49.98,0:23:55.79,Default,,0000,0000,0000,,to the Federal Reserve, to the government\Nand to the banking sector. YOU
Dialogue: 0,0:23:55.79,0:23:59.97,Default,,0000,0000,0000,,are now among the one in a million that can\Ndetect theft of your prosperity...
Dialogue: 0,0:23:59.97,0:24:03.16,Default,,0000,0000,0000,,so the big question is, what can you do\Nabout it?
Dialogue: 0,0:24:03.16,0:24:07.27,Default,,0000,0000,0000,,1: Watch this video until you can\Ndescribe
Dialogue: 0,0:24:07.27,0:24:10.94,Default,,0000,0000,0000,,and teach it to others. Those who\Nunderstand the system
Dialogue: 0,0:24:10.94,0:24:14.01,Default,,0000,0000,0000,,can make preparations for its unavoidable\Ncollapse
Dialogue: 0,0:24:14.01,0:24:17.57,Default,,0000,0000,0000,,and protect themselves. History shows that those\Nwho don't
Dialogue: 0,0:24:17.57,0:24:20.67,Default,,0000,0000,0000,,will probably wiped out. 2:
Dialogue: 0,0:24:20.67,0:24:25.83,Default,,0000,0000,0000,,Share this video with everyone,\Nespecially those you care about. All it
Dialogue: 0,0:24:25.83,0:24:27.81,Default,,0000,0000,0000,,takes is a mouse click or two
Dialogue: 0,0:24:27.81,0:24:30.30,Default,,0000,0000,0000,,to get this message in front of millions.
Dialogue: 0,0:24:30.30,0:24:34.35,Default,,0000,0000,0000,,Post this video on Facebook, Tweet it,\Nemail it to loved ones.
Dialogue: 0,0:24:34.35,0:24:37.80,Default,,0000,0000,0000,,Please share it wherever you can. \N3:
Dialogue: 0,0:24:37.80,0:24:42.49,Default,,0000,0000,0000,,Join the conversation. The current world\Nmonetary system is based on a three
Dialogue: 0,0:24:42.49,0:24:43.81,Default,,0000,0000,0000,,hundred-year-old design
Dialogue: 0,0:24:43.81,0:24:47.15,Default,,0000,0000,0000,,meant to enrich a few at the expense\Nof the many...
Dialogue: 0,0:24:47.15,0:24:51.22,Default,,0000,0000,0000,,there must be a better way. At\NHiddenSecretsOfMoney.com
Dialogue: 0,0:24:51.22,0:24:55.38,Default,,0000,0000,0000,,we've created an open source platform\Nfor the design and development of a new
Dialogue: 0,0:24:55.38,0:24:58.32,Default,,0000,0000,0000,,world monetary system. We're calling on
Dialogue: 0,0:24:58.32,0:25:01.45,Default,,0000,0000,0000,,every economist, every student, every\Ncollege,
Dialogue: 0,0:25:01.45,0:25:05.99,Default,,0000,0000,0000,,every bright mind and anyone who cares\Nto join the discussion.
Dialogue: 0,0:25:05.99,0:25:10.65,Default,,0000,0000,0000,,In educating ourselves and each other we\Ncan prevent the further loss of our
Dialogue: 0,0:25:10.65,0:25:11.31,Default,,0000,0000,0000,,freedoms
Dialogue: 0,0:25:11.31,0:25:15.11,Default,,0000,0000,0000,,and maybe, just maybe win some of them back.
Dialogue: 0,0:25:15.11,0:25:18.76,Default,,0000,0000,0000,,...
Dialogue: 0,0:25:18.76,0:25:25.76,Default,,0000,0000,0000,,...
Dialogue: 0,0:25:27.16,0:25:31.11,Default,,0000,0000,0000,,Stay tuned for Ron Paul...
Dialogue: 0,0:25:31.11,0:25:34.34,Default,,0000,0000,0000,,ÉJim Rickards, and Steve Forbes
Dialogue: 0,0:25:34.34,0:25:41.34,Default,,0000,0000,0000,,Watch more episodes at \NHiddenSecretsOfMoney.com
Dialogue: 0,0:26:00.52,0:26:02.88,Default,,0000,0000,0000,,[Ron Paul] I think your Episode 4 is
Dialogue: 0,0:26:02.88,0:26:07.26,Default,,0000,0000,0000,,very beneficial, very helpful, it's gonna\Nintroduce these ideas to a lot of
Dialogue: 0,0:26:07.26,0:26:09.43,Default,,0000,0000,0000,,people, and like I've just been talking about,
Dialogue: 0,0:26:09.43,0:26:13.02,Default,,0000,0000,0000,,we have to change people's minds and the\Nmore they understand it the better,
Dialogue: 0,0:26:13.02,0:26:17.65,Default,,0000,0000,0000,,and I think we're at this point now\Nwhere more people in the last
Dialogue: 0,0:26:17.65,0:26:21.59,Default,,0000,0000,0000,,several years..four or five years have\Nthought about the Fed than they ever have
Dialogue: 0,0:26:21.59,0:26:23.59,Default,,0000,0000,0000,,in the previous ninety five years
Dialogue: 0,0:26:23.59,0:26:29.09,Default,,0000,0000,0000,,so I think I an explanation and diagrams\Nto show it is very helpful
Dialogue: 0,0:26:29.09,0:26:32.63,Default,,0000,0000,0000,,because quite frankly they're not going\Nto get it in their grade school they're
Dialogue: 0,0:26:32.63,0:26:34.17,Default,,0000,0000,0000,,not going to get in their high school
Dialogue: 0,0:26:34.17,0:26:38.32,Default,,0000,0000,0000,,they're not going to get it in college\Nunless they're in a very rare
Dialogue: 0,0:26:38.32,0:26:40.28,Default,,0000,0000,0000,,circumstance to understand
Dialogue: 0,0:26:40.28,0:26:44.71,Default,,0000,0000,0000,,how this works. [Jim Rickards] You know for years\Nbefore I got involved in
Dialogue: 0,0:26:44.71,0:26:49.14,Default,,0000,0000,0000,,huh really studying gold and some of the things\NI write and talk about today I was a
Dialogue: 0,0:26:49.14,0:26:53.98,Default,,0000,0000,0000,,monetary economist for decades you know\Nin your video you talk about the primary
Dialogue: 0,0:26:53.98,0:26:54.70,Default,,0000,0000,0000,,dealers
Dialogue: 0,0:26:54.70,0:26:58.92,Default,,0000,0000,0000,,I was chief counsel and chief credit officer\Nfor one the largest primary dealers for ten
Dialogue: 0,0:26:58.92,0:26:59.54,Default,,0000,0000,0000,,years so
Dialogue: 0,0:26:59.54,0:27:03.44,Default,,0000,0000,0000,,I had an inside seat on the Treasury\Nmarket and have the privilege of working
Dialogue: 0,0:27:03.44,0:27:04.63,Default,,0000,0000,0000,,with several
Dialogue: 0,0:27:04.63,0:27:08.35,Default,,0000,0000,0000,,former Vice Chairman of the Board of\NGovernors: Johnson and
Dialogue: 0,0:27:08.35,0:27:12.44,Default,,0000,0000,0000,,David Mullins going back to the 80's and\N90's so I'm very immersed in what you're
Dialogue: 0,0:27:12.44,0:27:13.77,Default,,0000,0000,0000,,talking about I thought it was
Dialogue: 0,0:27:13.77,0:27:16.77,Default,,0000,0000,0000,,extremely accurate, extremely clear,
Dialogue: 0,0:27:16.77,0:27:20.12,Default,,0000,0000,0000,,I didn't think you were stretching on any\Npoints it was is really like something
Dialogue: 0,0:27:20.12,0:27:20.55,Default,,0000,0000,0000,,out of a
Dialogue: 0,0:27:20.55,0:27:25.36,Default,,0000,0000,0000,,PhD course except that it was very easy\Nto understand, I think it's accessible,
Dialogue: 0,0:27:25.36,0:27:29.21,Default,,0000,0000,0000,,I think I think we're seeing a little\Nbit of a revolution in communications in
Dialogue: 0,0:27:29.21,0:27:32.73,Default,,0000,0000,0000,,the following sense you know as you\Npoint out the Fed was created in 1913
Dialogue: 0,0:27:32.73,0:27:37.10,Default,,0000,0000,0000,,well in 1913 there was no web there\Nwas no YouTube, no Twitter
Dialogue: 0,0:27:37.10,0:27:40.57,Default,,0000,0000,0000,,there was really no one to stand up and
Dialogue: 0,0:27:40.57,0:27:43.89,Default,,0000,0000,0000,,oppose the Fed or call them out if you\Nwill, or really get into a discussion
Dialogue: 0,0:27:43.89,0:27:45.99,Default,,0000,0000,0000,,that everyday Americans could follow.
Dialogue: 0,0:27:45.99,0:27:49.26,Default,,0000,0000,0000,,That's not true now - with social media\Nand everything else
Dialogue: 0,0:27:49.26,0:27:52.38,Default,,0000,0000,0000,,you can reach out to millions and\Ntens of millions of people and tell them
Dialogue: 0,0:27:52.38,0:27:53.96,Default,,0000,0000,0000,,what's going onÉI think you've done that,
Dialogue: 0,0:27:53.96,0:27:57.66,Default,,0000,0000,0000,,You've done it successfully I applaud it, I think it's\Na great video I
Dialogue: 0,0:27:57.66,0:28:01.27,Default,,0000,0000,0000,,look forward to seeing it again, I know\Nmillions of people will enjoy it.
Dialogue: 0,0:28:01.27,0:28:02.03,Default,,0000,0000,0000,,[Steve Forbes] Well as we know the
Dialogue: 0,0:28:02.03,0:28:05.58,Default,,0000,0000,0000,,Federal Reserve believes it can \Ncreate money out of thin air, and
Dialogue: 0,0:28:05.58,0:28:09.43,Default,,0000,0000,0000,,not realize money is supposed to represent\Nreal products and services
Dialogue: 0,0:28:09.43,0:28:14.14,Default,,0000,0000,0000,,and what people don't realize is\Nwhen the Fed does that
Dialogue: 0,0:28:14.14,0:28:17.70,Default,,0000,0000,0000,,in effect as Keynes pointed out\Nit's a form of taxation,
Dialogue: 0,0:28:17.70,0:28:22.15,Default,,0000,0000,0000,,it's a form of confiscation and because\Npeople don't see it
Dialogue: 0,0:28:22.15,0:28:27.71,Default,,0000,0000,0000,,the politicos get away with it, but it\Nalso undermines social trust,
Dialogue: 0,0:28:27.71,0:28:30.76,Default,,0000,0000,0000,,it just is corrosive throughout\Nsociety.
Dialogue: 0,0:28:30.76,0:28:34.98,Default,,0000,0000,0000,,We're going to have a lot of turmoil in\Nthe coming years,
Dialogue: 0,0:28:34.98,0:28:38.32,Default,,0000,0000,0000,,but it's going to be the kind of turmoil\Nthat leads to positive things.
Dialogue: 0,0:28:38.32,0:28:42.84,Default,,0000,0000,0000,,So don't despair, get out there and\Nfight because
Dialogue: 0,0:28:42.84,0:28:46.97,Default,,0000,0000,0000,,the tide is gonna turn. This is going to\Nbe the statists last stand.
Dialogue: 0,0:28:46.97,0:28:50.43,Default,,0000,0000,0000,,[Mike Maloney] Thank you!
Dialogue: 0,0:28:50.43,0:28:55.80,Default,,0000,0000,0000,,[James Anderson] This episode of Mike Maloney's \NHidden Secrets Of Money
Dialogue: 0,0:28:55.80,0:29:00.52,Default,,0000,0000,0000,,was brought to you by GoldSilver.com\Nand the new Silver Pegasus round. To
Dialogue: 0,0:29:00.52,0:29:02.12,Default,,0000,0000,0000,,learn how to protect your family
Dialogue: 0,0:29:02.12,0:29:05.37,Default,,0000,0000,0000,,and turn the coming economic storms\Nand opportunity visit:
Dialogue: 0,0:29:05.37,0:29:07.03,Default,,0000,0000,0000,,GoldSilver.com