WEBVTT 00:00:02.040 --> 00:00:05.540 You are about to learn one of the biggest secrets 00:00:05.540 --> 00:00:09.280 in the history of the world. It's a secret 00:00:09.280 --> 00:00:14.540 that has huge effects for everyone who lives on this planet. 00:00:14.540 --> 00:00:18.000 Most people can feel deep down that something isn't quite right 00:00:18.000 --> 00:00:21.180 the world economy, but few know what it is 00:00:21.180 --> 00:00:24.860 Gone are the days where a family can survive on 00:00:24.860 --> 00:00:28.890 just one paycheck, every day it seems things are more and more 00:00:28.890 --> 00:00:32.500 out of control, yet only one in a million understand why. 00:00:32.500 --> 00:00:35.640 You are about to discover 00:00:35.640 --> 00:00:39.200 the system that is ultimately responsible for most of the inequality in our 00:00:39.200 --> 00:00:42.710 world today. The powers that be do not 00:00:42.710 --> 00:00:47.470 want you to know about this, as this system is what has kept them at the top of 00:00:47.470 --> 00:00:50.830 the financial food chain for the last 100 years. 00:00:50.830 --> 00:00:54.910 Learning this will change your life because it will change the choices that you make. 00:00:54.910 --> 00:00:58.530 If enough people learn it, it will change the world... 00:00:58.530 --> 00:01:02.100 because it'll change the system. 00:01:02.100 --> 00:01:06.230 For this is the biggest Hidden Secret Of Money. 00:01:06.230 --> 00:01:09.820 Never in human history have so many been plundered by so 00:01:09.820 --> 00:01:10.900 few, 00:01:10.900 --> 00:01:14.270 And it's all accomplished through this, The Biggest Scam 00:01:14.270 --> 00:01:20.710 In the History of Mankind 00:01:20.710 --> 00:01:23.590 They say that money doesn't grow on trees 00:01:23.590 --> 00:01:28.090 but the truth is that the modern banking system creates currency far faster than 00:01:28.090 --> 00:01:29.250 trees can grow. 00:01:29.250 --> 00:01:33.020 Most people don't have a clue how currency is created 00:01:33.020 --> 00:01:36.770 economists and bankers make it sound so complex that people think they can't 00:01:36.770 --> 00:01:37.820 understand it. 00:01:37.820 --> 00:01:41.380 But I'm going to strip our monetary system down to its 00:01:41.380 --> 00:01:44.410 essence so you can see the scam behind the curtain 00:01:44.410 --> 00:01:48.840 and just how it affects you. Every modern society creates currency in pretty much 00:01:48.840 --> 00:01:49.670 the same way 00:01:49.670 --> 00:01:53.320 but since the US dollar is the majority of the world's currency 00:01:53.320 --> 00:01:57.280 I'm going to use the United States as our example. It all starts when some 00:01:57.280 --> 00:02:00.700 politician says 'Vote for me and I'll make sure the government provides you more 00:02:00.700 --> 00:02:02.200 free stuff than my opponent will' 00:02:02.200 --> 00:02:07.460 But there's no such thing as a free lunch - so to provide that supposedly free 00:02:07.460 --> 00:02:08.929 stuff the politicians 00:02:08.929 --> 00:02:13.320 vote for the country to spend more than its income. This is called deficit spending. 00:02:13.320 --> 00:02:17.890 To pay for that deficit spending the Treasury borrows currency by issuing a 00:02:17.890 --> 00:02:19.040 bond. 00:02:19.040 --> 00:02:24.200 So what's a bond? If you think about it a bond is really nothing but a glorified 00:02:24.200 --> 00:02:28.709 I.O.U. It's a pretty piece of paper with numbers printed on it that says 00:02:28.709 --> 00:02:32.840 'Loan me a trillion dollars today and I promise over a 10-year period 00:02:32.840 --> 00:02:35.959 I'm gonna pay you back that trillion dollars plus interest.' 00:02:35.959 --> 00:02:39.260 But what you need to understand is that Treasury bonds 00:02:39.260 --> 00:02:43.000 are our national debt. These glorified I.O.U.s 00:02:43.000 --> 00:02:47.640 are to be paid back by you and I and our descendants through future taxation. 00:02:47.640 --> 00:02:49.060 Therefore: 00:02:49.060 --> 00:02:52.570 When the government issues a bond it steals prosperity 00:02:52.570 --> 00:02:56.640 out as the future so that it can spend it today. The Treasury then holds a bond 00:02:56.640 --> 00:02:57.550 auction 00:02:57.550 --> 00:03:01.989 and the world's largest banks show up and compete to buy part of our national debt 00:03:01.989 --> 00:03:05.959 and make a profit on by earning interest. You'll notice that as we move through 00:03:05.959 --> 00:03:07.080 this process 00:03:07.080 --> 00:03:10.670 the big banks are there taking a cut every step of the way. 00:03:10.670 --> 00:03:14.430 This isn't by chance as you'll see shortly. Then, 00:03:14.430 --> 00:03:18.050 through a shell game called Open Market Operations the banks get to sell some of 00:03:18.050 --> 00:03:19.800 those bonds to the Federal Reserve 00:03:19.800 --> 00:03:22.920 at a profit. To pay for the bonds the Federal Reserve 00:03:22.920 --> 00:03:26.680 opens up its big old checkbook and writes bad 00:03:26.680 --> 00:03:30.940 bogus counterfeit checks that should bounce because they're drawn on an account that 00:03:30.940 --> 00:03:33.709 always has a zero balance, there isn't one penny 00:03:33.709 --> 00:03:37.799 in there. To quote from the Boston Federal Reserve: 'When you are I write a 00:03:37.799 --> 00:03:40.010 check there must be sufficient funds 00:03:40.010 --> 00:03:44.380 in our account to cover that check, but when the Federal Reserve writes a check 00:03:44.380 --> 00:03:48.030 there is no bank deposit on which that check is drawn. 00:03:48.030 --> 00:03:51.940 When the Federal Reserve writes a check it is creating money." 00:03:51.940 --> 00:03:55.769 The Fed then hands those checks to the banks and at this point currency 00:03:55.769 --> 00:03:57.290 springs into existence. 00:03:57.290 --> 00:04:01.570 The banks then take that currency and buy more bonds at the next Treasury 00:04:01.570 --> 00:04:02.019 auction. 00:04:02.019 --> 00:04:05.600 But what is a check? A check is also an I.O.U. 00:04:05.600 --> 00:04:09.440 When you write a check you're making a note that says "Here's my I.O.U. for 00:04:09.440 --> 00:04:10.060 cash, 00:04:10.060 --> 00:04:14.209 all you have to do is go to the bank and pick it up." Now it's very very important 00:04:14.209 --> 00:04:16.290 that you understand this process 00:04:16.290 --> 00:04:19.988 because we're going to come back later and show you the devastating effect this 00:04:19.988 --> 00:04:20.970 has on you. 00:04:20.970 --> 00:04:24.260 The treasury issues I.O.U.s, (bonds). 00:04:24.260 --> 00:04:28.290 The banks then buy those I.O.U.s with currency. The Federal Reserve 00:04:28.290 --> 00:04:32.730 then writes I.O.U.s (checks) and hands them to the banks in exchange for the 00:04:32.730 --> 00:04:33.990 Treasury's I.O.U.s 00:04:33.990 --> 00:04:38.670 (the bonds). And currency is created. So what's really happening is the Federal 00:04:38.670 --> 00:04:39.710 Reserve and the Treasury 00:04:39.710 --> 00:04:43.610 are just swapping I.O.U.s, using the banks as middlemen, 00:04:43.610 --> 00:04:48.290 and abracadabra presto currency magically springs into existence. 00:04:48.290 --> 00:04:51.520 This process repeats and repeats over and over again 00:04:51.520 --> 00:04:55.560 enriching the banks and indebting the public by raising the national debt. 00:04:55.560 --> 00:04:59.690 The end result is that there's a buildup of bonds at the Federal Reserve 00:04:59.690 --> 00:05:03.220 and currency at the Treasury. This process is also where 00:05:03.220 --> 00:05:06.880 all paper currency comes from. The Federal Reserve and the government 00:05:06.880 --> 00:05:08.570 mistakenly call it 'Base Money' 00:05:08.570 --> 00:05:12.700 because they didn't watch Episode 1 of this series, and they don't know the 00:05:12.700 --> 00:05:14.020 difference between money 00:05:14.020 --> 00:05:18.510 and currency. But I will correctly refer to it as 'Base Currency' because 00:05:18.510 --> 00:05:19.660 it is not money... 00:05:19.660 --> 00:05:23.540 it is CURRENCY, and as we've learned there is a big difference: 00:05:23.540 --> 00:05:27.919 Money has to be a store of value and maintain its purchasing power over 00:05:27.919 --> 00:05:29.400 long periods of time. 00:05:29.400 --> 00:05:33.200 We learned in Episode 1 that earlier in our history our paper currency was 00:05:33.200 --> 00:05:34.330 just a claim check. 00:05:34.330 --> 00:05:38.140 It was a representation for real money of intrinsic value, 00:05:38.140 --> 00:05:41.150 the gold and silver that was held on deposit at the Treasury. 00:05:41.150 --> 00:05:45.640 You could walk into any bank and slap your currency, like say a twenty dollar 00:05:45.640 --> 00:05:46.140 bill 00:05:46.140 --> 00:05:50.510 on the counter, and redeem it for real moneyÉa twenty dollar gold piece. 00:05:50.510 --> 00:05:53.740 But now this base currency that's piling up back here 00:05:53.740 --> 00:05:57.670 is really nothing but a receipt or a claim check on an I.O.U. 00:05:57.670 --> 00:06:01.900 (that bond), so it's really nothing but a supply of numbers. 00:06:01.900 --> 00:06:05.080 The Treasury then deposits the newly created currency in the various branches 00:06:05.080 --> 00:06:06.550 of the government, 00:06:06.550 --> 00:06:09.700 and the politicians say "Hey thanks for that!", 00:06:09.700 --> 00:06:13.390 and the government does some deficit spending on public works, 00:06:13.390 --> 00:06:16.780 social programs, and war. 00:06:16.780 --> 00:06:20.800 The government employees, contractors and soldiers then deposit their pay in the 00:06:20.800 --> 00:06:22.390 banks. 00:06:22.390 --> 00:06:26.330 Now this may come as a shock to you, but when you deposit your currency with the bank 00:06:26.330 --> 00:06:26.830 you're not 00:06:26.830 --> 00:06:30.860 actually depositing it into an account to be safely held in trust for you. 00:06:30.860 --> 00:06:34.530 Instead, you're actually loaning the bank your currency, 00:06:34.530 --> 00:06:38.610 and within certain legal limits they can do with it pretty much anything they please. 00:06:38.610 --> 00:06:42.330 This includes gambling in the stock market, and loaning it out... 00:06:42.330 --> 00:06:45.880 at a profit of course. 00:06:45.880 --> 00:06:49.190 Now this is where the machine of currency creation really gets cranking, 00:06:49.190 --> 00:06:52.390 because this is where something called 'Fractional Reserve Lending' comes into 00:06:52.390 --> 00:06:53.400 play. 00:06:53.400 --> 00:06:57.410 Fractional Reserve Lending is exactly what it says. The banks are allowed 00:06:57.410 --> 00:07:01.490 to reserve only a fraction of your deposit and long the rest out. 00:07:01.490 --> 00:07:05.940 Although reserve ratios may vary, I'm going to use a 10 percent reserve ratio 00:07:05.940 --> 00:07:06.759 as our example. 00:07:06.759 --> 00:07:11.370 If you deposit $100 dollars in your account, the bank can legally take ninety 00:07:11.370 --> 00:07:14.100 dollars of it and loan it out without telling you. 00:07:14.100 --> 00:07:17.669 The bank must hold ten dollars of your deposit in reserve 00:07:17.669 --> 00:07:21.740 just in case you want some of it. These reserves are called 'Vault Cash'. 00:07:21.740 --> 00:07:25.760 But why does your bank account still say you have one hundred dollars if the bank 00:07:25.760 --> 00:07:27.760 has stolen ninety dollars of it? 00:07:27.760 --> 00:07:31.350 Because the bank left I.O.U.s it created called 'bank credit' 00:07:31.350 --> 00:07:34.620 in its place. Now I know this sounds crazy, 00:07:34.620 --> 00:07:39.550 but here it is in black and white from the Fed: "Commercial banks create 00:07:39.550 --> 00:07:40.710 checkbook money 00:07:40.710 --> 00:07:45.550 when they grant a loan simply by adding new deposit dollars in accounts 00:07:45.550 --> 00:07:49.470 on their books in exchange for a borrower's I.O.U." 00:07:49.470 --> 00:07:53.550 These are nothing but numbers that the banks type into their computers, 00:07:53.550 --> 00:07:57.240 and even though these bank credit I.O.U. numbers 00:07:57.240 --> 00:08:01.250 are very different from base currency numbers (because they only exist in 00:08:01.250 --> 00:08:02.010 computers), 00:08:02.010 --> 00:08:07.270 they are still currency. So now there is one hundred ninety dollars in existence. 00:08:07.270 --> 00:08:11.900 Now the reason people take out loans from the banks is to buy something. 00:08:11.900 --> 00:08:15.970 They're going to buy a house or a car or something like that. 00:08:15.970 --> 00:08:21.030 So the borrower takes the ninety dollars that the bank loaned to him from your account, 00:08:21.030 --> 00:08:25.880 and he pays the seller of item. But then the seller deposits that currency 00:08:25.880 --> 00:08:27.039 into his account, 00:08:27.039 --> 00:08:30.099 and his bank loans out ninety percent of that, 00:08:30.099 --> 00:08:33.909 and leaves bank credit numbers in its place. So now there's two hundred and 00:08:33.909 --> 00:08:36.110 seventy-one dollars in existence. 00:08:36.110 --> 00:08:40.299 This process repeats and repeats until under a 10 percent reserve ratio 00:08:40.299 --> 00:08:44.720 an initial deposit of just one hundred dollars can create up to one thousand 00:08:44.720 --> 00:08:46.360 dollars of bank credit 00:08:46.360 --> 00:08:49.709 all backed by one hundred dollars of vault cash, 00:08:49.709 --> 00:08:54.339 just 10 percent. But as I said reserve ratios vary wildly... 00:08:54.339 --> 00:08:57.500 on some deposits it's 10 percent on others 00:08:57.500 --> 00:09:01.260 its 3 percent and on some forms of deposits reserve requirements 00:09:01.260 --> 00:09:06.320 are zero! The result is that the expansion the currency supply by the banks is 00:09:06.320 --> 00:09:09.410 far greater than even this example would lead you to believe. 00:09:09.410 --> 00:09:13.700 So once again, when currency is deposited in the banks, 00:09:13.700 --> 00:09:17.790 the banks get to lend it out and then it gets we redeposited and relent, 00:09:17.790 --> 00:09:21.360 redeposited and relent, redeposited and relent 00:09:21.360 --> 00:09:24.750 over and over again creating bank credit all the way. 00:09:24.750 --> 00:09:28.940 This is where the vast majority of our currency supply comes from. 00:09:28.940 --> 00:09:32.050 In fact 92 to 96 percent of 00:09:32.050 --> 00:09:36.029 all currency in existence is created not by the government, 00:09:36.029 --> 00:09:39.700 but here in the banking system. Now, 00:09:39.700 --> 00:09:43.820 massive amounts of currency spewing into society may at first sound like a fun 00:09:43.820 --> 00:09:44.589 idea... 00:09:44.589 --> 00:09:48.490 that is until you remember one of the most important Hidden Secrets Of Money 00:09:48.490 --> 00:09:49.670 from Episode 1: 00:09:49.670 --> 00:09:53.529 That the prices of everyday goods and services act as a sponge 00:09:53.529 --> 00:09:57.490 on an expanding currency supply. The more currency we have 00:09:57.490 --> 00:09:59.540 the more prices rise. 00:09:59.540 --> 00:10:04.029 This is where inflation comes from. The true definition of inflation 00:10:04.029 --> 00:10:07.970 is an expansion of the currency supply, rising prices 00:10:07.970 --> 00:10:09.520 are merely the symptom. 00:10:09.520 --> 00:10:13.350 So our entire currency supply is nothing but a couple bucks whipped up in this 00:10:13.350 --> 00:10:14.730 hocus-pocus scam 00:10:14.730 --> 00:10:18.320 where the Treasury and the Federal Reserve swap glorified I.O.U.s 00:10:18.320 --> 00:10:21.880 and a bunch of numbers that the banks just type into their computers. 00:10:21.880 --> 00:10:25.980 That's itÉthat's our entire currency supply. It's nothing but a supply of 00:10:25.980 --> 00:10:26.720 numbers. 00:10:26.720 --> 00:10:29.830 Some of them printed, most of them typed, 00:10:29.830 --> 00:10:33.930 and there is nothing else. But if you thought that was crazy, 00:10:33.930 --> 00:10:38.550 get ready to enter the twilight zone ofmodern economics. We work for some of that 00:10:38.550 --> 00:10:39.340 currency supply. 00:10:39.340 --> 00:10:44.260 True wealth is your time, but we trade away moments in our lives 00:10:44.260 --> 00:10:47.550 hour by hour, day by day, and year by year 00:10:47.550 --> 00:10:51.440 for numbers that somebody printed on pieces of paper or just typed into a 00:10:51.440 --> 00:10:52.450 computer. 00:10:52.450 --> 00:10:56.410 Now those numbers represent our blood, sweat, tears, labor, 00:10:56.410 --> 00:11:02.110 ideas and talent. We are what gives the currency its value. 00:11:02.110 --> 00:11:05.720 But here comes the really cruel joke...we work hard, 00:11:05.720 --> 00:11:09.770 so that we can save some of that currency, so that we can pay the tax collector 00:11:09.770 --> 00:11:14.650 (in the United States it's known as the IRS), they then turn it over to the Treasury, 00:11:14.650 --> 00:11:17.850 so that the Treasury can pay the principal plus interest 00:11:17.850 --> 00:11:21.530 on that bond that the Federal Reserve bought with a check drawn 00:11:21.530 --> 00:11:24.530 on an account that has nothing in it. 00:11:24.530 --> 00:11:29.330 Now let's do a recap on this section because this is where the 00:11:29.330 --> 00:11:31.380 system begins to rob you and I 00:11:31.380 --> 00:11:36.810 on a massive scale. Much of our taxes are not used for schools, roads and public 00:11:36.810 --> 00:11:37.820 services, 00:11:37.820 --> 00:11:41.210 but to pay interest on bonds that the Federal Reserve 00:11:41.210 --> 00:11:44.880 bought with a check drawn on an account that has nothing 00:11:44.880 --> 00:11:47.890 in it. The Federal Reserve is committing FRAUD. 00:11:47.890 --> 00:11:51.490 But here's one of the biggest secrets of them all: 00:11:51.490 --> 00:11:56.040 Before the establishment at the Federal Reserve there was no need for personal 00:11:56.040 --> 00:12:00.790 income tax. The Federal Reserve was created in 1913 00:12:00.790 --> 00:12:03.940 and that very same year the Constitution 00:12:03.940 --> 00:12:09.630 was amended to allow income tax. Do you really think this was just a coincidence? 00:12:09.630 --> 00:12:13.150 Ask yourself how much income tax you've paid 00:12:13.150 --> 00:12:17.870 over your lifetime. Much of it has been silently siphoned away 00:12:17.870 --> 00:12:23.480 into the hands of those who own the system. Yes this system has owners... 00:12:23.480 --> 00:12:27.089 who they are is an even bigger secret that we'll get to shortly, 00:12:27.089 --> 00:12:31.220 but first we need to understand the mumbo jumbo of the so-called 00:12:31.220 --> 00:12:35.780 'debt ceiling'. It's all based on a huge paradox: 00:12:35.780 --> 00:12:40.640 There was interest due on that bond, and there was interest due on 00:12:40.640 --> 00:12:43.870 every one of those loans that the banks made. That means 00:12:43.870 --> 00:12:48.020 that there is interest due on every dollar in existence. 00:12:48.020 --> 00:12:52.930 Let me ask you something: If you borrow the very first dollar into existence and 00:12:52.930 --> 00:12:55.700 that's the only dollar that exists on the planet, 00:12:55.700 --> 00:12:59.920 but you promise to pay it back plus another dollars worth of interest... 00:12:59.920 --> 00:13:04.580 where you get the second dollar to pay the interest? The answer is that you have to 00:13:04.580 --> 00:13:06.390 borrow that one into existence 00:13:06.390 --> 00:13:10.200 and promise to pay it back with interest as well, so now there are two 00:13:10.200 --> 00:13:11.490 dollars in existence 00:13:11.490 --> 00:13:16.480 but you owe fourÉand so on and so on. The result is there's never enough 00:13:16.480 --> 00:13:17.959 currency to pay the debt. 00:13:17.959 --> 00:13:21.190 There is always more debt in the system 00:13:21.190 --> 00:13:25.589 than there is currency in existence to pay the debt. Therefore, 00:13:25.589 --> 00:13:28.910 the whole system is impossible it is finite 00:13:28.910 --> 00:13:33.050 it will come to an end one day. What would happen if the government stopped 00:13:33.050 --> 00:13:34.760 borrowing to do deficit spending? 00:13:34.760 --> 00:13:38.130 Are the payments on those treasury bonds going to stop? 00:13:38.130 --> 00:13:42.900 What would happen if the public stopped borrowing and going deeper into debt? 00:13:42.900 --> 00:13:45.910 Are your house and car payments going to stop? 00:13:45.910 --> 00:13:49.250 No, there is a payment due 00:13:49.250 --> 00:13:53.350 every month on the principal plus the interest on every dollar in existence 00:13:53.350 --> 00:13:55.350 and those payments do not stop. 00:13:55.350 --> 00:14:00.470 If we stop borrowing then no new currency is created to replace the 00:14:00.470 --> 00:14:03.080 currency that we used to make those payments. 00:14:03.080 --> 00:14:07.030 Whether you're making a payment on a loan or paying tax to make a payment on 00:14:07.030 --> 00:14:07.760 a bond, 00:14:07.760 --> 00:14:11.030 the portion of the payment that goes to pay off the principal 00:14:11.030 --> 00:14:15.990 extinguishes that portion of the debt. But the debt also extinguishes the 00:14:15.990 --> 00:14:16.580 currency. 00:14:16.580 --> 00:14:19.860 Currency and debt are like matter and anti-matter. 00:14:19.860 --> 00:14:24.610 When they meet they annihilate each other. If we just pay off the principal 00:14:24.610 --> 00:14:25.110 only 00:14:25.110 --> 00:14:28.740 on all the loans and bonds that exist the entire currency supply 00:14:28.740 --> 00:14:32.630 just vanishes. So if we don't go deeper into debt every year 00:14:32.630 --> 00:14:37.230 look what happens: the whole thing goes into a deflationary collapse under the 00:14:37.230 --> 00:14:38.000 weight of those payments. 00:14:38.000 --> 00:14:43.110 Politicians and pundits alike talk about balancing the budget 00:14:43.110 --> 00:14:47.170 paying down the debt and living within our means. They don't understand that 00:14:47.170 --> 00:14:48.440 that is deflationary, 00:14:48.440 --> 00:14:53.370 it is impossible to do under our current monetary system without collapsing the 00:14:53.370 --> 00:14:55.570 whole economy. 00:14:55.570 --> 00:14:59.080 This is why any talk of a debt ceiling is not only ridiculous... 00:14:59.080 --> 00:15:02.880 its delusional. The system is designed to require 00:15:02.880 --> 00:15:07.899 ever-increasing levels of debt just to continue, and that's why politicians will 00:15:07.899 --> 00:15:08.580 always 00:15:08.580 --> 00:15:12.040 kick the can down the road and raise this so-called 00:15:12.040 --> 00:15:17.220 'debt ceiling' over and over again until the whole system finally collapses under 00:15:17.220 --> 00:15:18.250 its own weight. 00:15:18.250 --> 00:15:22.000 In other words, they don't want it to collapse on their watch. 00:15:22.000 --> 00:15:25.600 The founding fathers of the United States knew the dangers of central 00:15:25.600 --> 00:15:28.850 banking and fought to free themselves from this very thing. 00:15:28.850 --> 00:15:32.230 The revolutionary war started out as a tax revolt, 00:15:32.230 --> 00:15:36.440 but now we must pay tax just to have a monetary system. 00:15:36.440 --> 00:15:40.000 Having just suffered through the hyperinflation of the Continental 00:15:40.000 --> 00:15:40.529 Dollar 00:15:40.529 --> 00:15:44.330 which was printed into oblivion to finance the Revolutionary War, 00:15:44.330 --> 00:15:49.450 they understood the dangers of fiat currency and debt based monetary systems. 00:15:49.450 --> 00:15:53.830 So to protect future generations from institutional theft and 00:15:53.830 --> 00:15:58.220 out-of-control government they wrote into the constitution that only gold and 00:15:58.220 --> 00:15:59.640 silver can be money, 00:15:59.640 --> 00:16:04.750 for the simple fact that you can't print them. Our current system is not only 00:16:04.750 --> 00:16:06.160 unconstitutional, 00:16:06.160 --> 00:16:09.250 but it robs us of the liberty and prosperity 00:16:09.250 --> 00:16:13.790 our forefathers fought and died for. We are all 00:16:13.790 --> 00:16:17.029 feeling the effects of ignoring the Constitution right now. 00:16:17.029 --> 00:16:20.100 By forcing more currency into circulation 00:16:20.100 --> 00:16:23.680 our purchasing power is diluted. Inflation 00:16:23.680 --> 00:16:26.730 is a slow and insidious stealth tax 00:16:26.730 --> 00:16:30.579 that is simply the result of this in dept-based monetary system. 00:16:30.579 --> 00:16:35.140 This system empowers and benefits those who create the currency and receive it 00:16:35.140 --> 00:16:35.760 first 00:16:35.760 --> 00:16:39.899 as they get to spend it into circulation before it has an effect on the economy. 00:16:39.899 --> 00:16:43.890 They're stealing purchasing power from you and transferring it to the banks and the 00:16:43.890 --> 00:16:44.430 government 00:16:44.430 --> 00:16:49.149 every hour of every day because of this false monetary system. 00:16:49.149 --> 00:16:53.839 And it's not like the people at the top don't know this. To quote the Federal Reserve 00:16:53.839 --> 00:16:58.050 "The decrease in purchasing power incurred by the holders of money 00:16:58.050 --> 00:17:02.600 due to inflation imparts gains to the issuers of money." 00:17:02.600 --> 00:17:06.660 This is a fraud, it is a pyramid scheme, it is a Ponzi scheme, 00:17:06.660 --> 00:17:11.329 it's a scam and it's a lie. Our entire monetary system 00:17:11.329 --> 00:17:16.929 is nothing but a form of legalized theft. But here's the biggest con job of them all: 00:17:16.929 --> 00:17:20.459 The Federal Reserve is not federal - it has stockholders. 00:17:20.459 --> 00:17:23.770 There is no federal agency that has stockholders. 00:17:23.770 --> 00:17:27.790 What's a stockholder? A stock represents a percentage of 00:17:27.790 --> 00:17:31.040 ownership in a corporation, so the stockholders 00:17:31.040 --> 00:17:34.770 are the owners of that corporation. Therefore the Federal Reserve is a 00:17:34.770 --> 00:17:36.860 private corporation with owners... 00:17:36.860 --> 00:17:40.820 and you can see it for yourself if you go to the Federal Reserve's website 00:17:40.820 --> 00:17:45.120 and it will say: "The stockholders receive an annual dividend of 00:17:45.120 --> 00:17:49.260 six-percent." Now we know that the stock in the Federal Reserve was originally 00:17:49.260 --> 00:17:49.809 issued 00:17:49.809 --> 00:17:53.419 to the largest banks in the United States but because of mergers and 00:17:53.419 --> 00:17:54.850 acquisitions through the years 00:17:54.850 --> 00:17:59.230 you can't actually trace who owns the stock in the Federal Reserve. That's a 00:17:59.230 --> 00:18:03.160 very closely guarded secret. My guess would be that the owners 00:18:03.160 --> 00:18:06.870 are those primary dealers, the banks that get to make a profit 00:18:06.870 --> 00:18:10.669 by selling part of our national debt- those bonds, to the Federal Reserve 00:18:10.669 --> 00:18:16.130 who buys them with a check from nothing! Then WE pay tax to pay the principal 00:18:16.130 --> 00:18:20.400 and the interest on those bonds so that the Federal Reserve can pay the banks a 6 00:18:20.400 --> 00:18:22.570 percent dividend. 00:18:22.570 --> 00:18:26.169 Don't be alarmed if you don't quite comprehend the deception of this system 00:18:26.169 --> 00:18:30.540 at first glance. Very few people do. It is purposely complex. 00:18:30.540 --> 00:18:33.640 The economist John Maynard Keynes once wrote: 00:18:33.640 --> 00:18:37.400 "By this means government may secretly and unobserved 00:18:37.400 --> 00:18:42.470 confiscate the wealth of the people and not one man in a million will detect the 00:18:42.470 --> 00:18:43.100 theft." 00:18:43.100 --> 00:18:46.150 I believe that presented correctly 00:18:46.150 --> 00:18:49.940 anyone can understand the system, regardless of how complex it is. 00:18:49.940 --> 00:18:53.490 So let's do a recap and break it down even more... 00:18:53.490 --> 00:18:57.400 The way this system works is that Step 1: 00:18:57.400 --> 00:19:02.540 The government creates glorified I.O.U.s These bonds increase our national 00:19:02.540 --> 00:19:02.919 debt, 00:19:02.919 --> 00:19:06.630 and put the public on the hook to pay it back. Step 2: 00:19:06.630 --> 00:19:10.919 I.O.U.s are swapped to create currency. The Treasury 00:19:10.919 --> 00:19:15.830 sells the bonds to the banks. The banks then turn around and sell our national 00:19:15.830 --> 00:19:16.380 debt 00:19:16.380 --> 00:19:20.669 at a profit to the Federal Reserve, which they probably own. 00:19:20.669 --> 00:19:24.470 The Federal Reserve then opens its checkbook that doesn't have a penny in it 00:19:24.470 --> 00:19:28.040 and buys those I.O.U.s with I.O.U.s it writes, 00:19:28.040 --> 00:19:32.260 checks on a checking account that has a zero balance. 00:19:32.260 --> 00:19:36.290 Then they give those checks to the banks and currency just springs into 00:19:36.290 --> 00:19:37.460 existence, 00:19:37.460 --> 00:19:41.909 and then the whole process repeats. This results in a build up of bonds at the 00:19:41.909 --> 00:19:43.010 Federal Reserve, 00:19:43.010 --> 00:19:47.370 and currency at the Treasury...which is really just a supply of numbers. 00:19:47.370 --> 00:19:50.290 The Treasury then deposits the numbers in the various branches of the 00:19:50.290 --> 00:19:52.140 government and we get to Step 3: 00:19:52.140 --> 00:19:56.000 The government spends the numbers on promises, 00:19:56.000 --> 00:19:59.870 public works, social programs and war. 00:19:59.870 --> 00:20:03.450 Then the government employees, contractors and soldiers deposit their 00:20:03.450 --> 00:20:04.830 pay into the banks 00:20:04.830 --> 00:20:09.510 and we get to Step 4: Where the banks multiply the numbers by magically 00:20:09.510 --> 00:20:10.720 inventing more 00:20:10.720 --> 00:20:14.530 I.O.U.s through Fractional Reserve Lending, where they steal a portion of 00:20:14.530 --> 00:20:17.159 everyone's deposit and lend it out. 00:20:17.159 --> 00:20:21.600 That currency gets redeposited and then a portion is stolen again, 00:20:21.600 --> 00:20:25.700 and the process repeats over and over magnifying the currency supply 00:20:25.700 --> 00:20:27.190 exponentially. 00:20:27.190 --> 00:20:31.780 Then we work for some of those numbers which brings us to Step 5: 00:20:31.780 --> 00:20:36.090 Where our numbers are taxed. We pay taxes to the IRS 00:20:36.090 --> 00:20:40.220 who then turns our numbers over to the Treasury, so the Treasury can pay the 00:20:40.220 --> 00:20:44.560 principal plus the interest on bonds that were purchased by the Federal Reserve 00:20:44.560 --> 00:20:48.490 with a check from nothing. Then we get to Step 6: 00:20:48.490 --> 00:20:52.650 The Debt Ceiling Delusion. The system is designed to require 00:20:52.650 --> 00:20:56.960 ever-increasing levels and debt and will eventually collapse under its own weight 00:20:56.960 --> 00:20:58.570 because politicians 00:20:58.570 --> 00:21:04.220 always kick the can down the road, they don't want it to collapse on their watch. 00:21:04.220 --> 00:21:08.419 And finally Step 7: The Secret Owners Take Their Cut. 00:21:08.419 --> 00:21:12.610 The world's largest banks own the Federal Reserve, those banks make a profit 00:21:12.610 --> 00:21:15.190 selling our national debt top the Fed, 00:21:15.190 --> 00:21:20.000 they make a profit when the Fed pays them interest on the reserves held at the Fed, 00:21:20.000 --> 00:21:23.510 and the Fed pays them a six percent dividend on their 00:21:23.510 --> 00:21:26.559 ownership of the Fed. This system 00:21:26.559 --> 00:21:31.000 is fundamentally evil. It funnels wealth from the working population 00:21:31.000 --> 00:21:34.860 to the government and the banking sector. it is the cause of the artificial booms 00:21:34.860 --> 00:21:36.870 and busts of modern economies, 00:21:36.870 --> 00:21:41.200 and it causes great disparity of wealth between the rich and the working class. 00:21:41.200 --> 00:21:45.740 AND - it is only possible because we no longer use real money, 00:21:45.740 --> 00:21:50.570 we use currency. But worst of all it is a form of enslavement. 00:21:50.570 --> 00:21:55.150 BOND is the root word of BONDAGE. Whenever a government issues a bond it 00:21:55.150 --> 00:21:58.440 is a promise to make us pay tax in the future. 00:21:58.440 --> 00:22:02.059 Nobody asked you if you wanted to pay tax today for the prosperity we all 00:22:02.059 --> 00:22:04.220 enjoyed in the last century. 00:22:04.220 --> 00:22:08.409 Nobody is asking our children if they want to work hard in the future 00:22:08.409 --> 00:22:12.640 to pay for the prosperity we're enjoying now. George Washington once wrote to 00:22:12.640 --> 00:22:14.159 James Madison: 00:22:14.159 --> 00:22:18.040 "No generation has the right to contract debts greater 00:22:18.040 --> 00:22:21.909 than can be paid off during the course of its own existence." 00:22:21.909 --> 00:22:25.600 By stealing prosperity from tomorrow so we can spend it today 00:22:25.600 --> 00:22:29.320 we enslave ourselves and future generations. 00:22:29.320 --> 00:22:32.870 Now this all sounds pretty bad but there is great hope 00:22:32.870 --> 00:22:36.710 for YOU are the greatest threat to this false monetary system. 00:22:36.710 --> 00:22:40.360 This system relies on the public being ignorant of its workings. 00:22:40.360 --> 00:22:43.480 Please share this knowledge with everyone you know because an informed 00:22:43.480 --> 00:22:43.990 public 00:22:43.990 --> 00:22:47.570 that fully understands the system can build a better future 00:22:47.570 --> 00:22:52.490 for generations to come. And now I leave you with this quote, 00:22:52.490 --> 00:22:56.929 widely attributed to a former Director of the Bank Of England: "The modern banking system 00:22:56.929 --> 00:22:59.620 manufacturers money out of nothing. 00:22:59.620 --> 00:23:03.180 The process is perhaps the most astounding piece of sleight of hand that 00:23:03.180 --> 00:23:04.200 was ever invented. 00:23:04.200 --> 00:23:07.290 Banking was conceived in iniquity 00:23:07.290 --> 00:23:11.760 and born in sin. Bankers own the earth. Take it away from them, 00:23:11.760 --> 00:23:15.830 but leave them the power to create money and control credit and with the flick of a 00:23:15.830 --> 00:23:16.370 pen 00:23:16.370 --> 00:23:21.040 they will create enough money to buy it back again. If you want to continue as 00:23:21.040 --> 00:23:22.310 the slaves of bankers 00:23:22.310 --> 00:23:26.740 and pay the cost of your own slavery, let them continue to create money, 00:23:26.740 --> 00:23:32.140 and to control credit." 00:23:32.140 --> 00:23:34.460 This the Federal Reserve in Washington DC 00:23:34.460 --> 00:23:39.650 it's located on Constitution Street, and that is just as much a joke as the New 00:23:39.650 --> 00:23:42.380 York Fed being located on Liberty Street. 00:23:42.380 --> 00:23:46.470 Both of them are unconstitutional both of them limit our Liberty, 00:23:46.470 --> 00:23:49.980 and they transfer wealth away from us every second of every day 00:23:49.980 --> 00:23:55.790 to the Federal Reserve, to the government and to the banking sector. YOU 00:23:55.790 --> 00:23:59.970 are now among the one in a million that can detect theft of your prosperity... 00:23:59.970 --> 00:24:03.160 so the big question is, what can you do about it? 00:24:03.160 --> 00:24:07.270 1: Watch this video until you can describe 00:24:07.270 --> 00:24:10.940 and teach it to others. Those who understand the system 00:24:10.940 --> 00:24:14.010 can make preparations for its unavoidable collapse 00:24:14.010 --> 00:24:17.570 and protect themselves. History shows that those who don't 00:24:17.570 --> 00:24:20.669 will probably wiped out. 2: 00:24:20.669 --> 00:24:25.830 Share this video with everyone, especially those you care about. All it 00:24:25.830 --> 00:24:27.809 takes is a mouse click or two 00:24:27.809 --> 00:24:30.300 to get this message in front of millions. 00:24:30.300 --> 00:24:34.350 Post this video on Facebook, Tweet it, email it to loved ones. 00:24:34.350 --> 00:24:37.800 Please share it wherever you can. 3: 00:24:37.800 --> 00:24:42.490 Join the conversation. The current world monetary system is based on a three 00:24:42.490 --> 00:24:43.810 hundred-year-old design 00:24:43.810 --> 00:24:47.149 meant to enrich a few at the expense of the many... 00:24:47.149 --> 00:24:51.219 there must be a better way. At HiddenSecretsOfMoney.com 00:24:51.219 --> 00:24:55.379 we've created an open source platform for the design and development of a new 00:24:55.379 --> 00:24:58.320 world monetary system. We're calling on 00:24:58.320 --> 00:25:01.450 every economist, every student, every college, 00:25:01.450 --> 00:25:05.989 every bright mind and anyone who cares to join the discussion. 00:25:05.989 --> 00:25:10.649 In educating ourselves and each other we can prevent the further loss of our 00:25:10.649 --> 00:25:11.309 freedoms 00:25:11.309 --> 00:25:15.109 and maybe, just maybe win some of them back. 00:25:15.109 --> 00:25:18.759 ... 00:25:18.759 --> 00:25:25.759 ... 00:25:27.160 --> 00:25:31.110 Stay tuned for Ron Paul... 00:25:31.110 --> 00:25:34.340 ÉJim Rickards, and Steve Forbes 00:25:34.340 --> 00:25:41.340 Watch more episodes at HiddenSecretsOfMoney.com 00:26:00.520 --> 00:26:02.880 [Ron Paul] I think your Episode 4 is 00:26:02.880 --> 00:26:07.260 very beneficial, very helpful, it's gonna introduce these ideas to a lot of 00:26:07.260 --> 00:26:09.430 people, and like I've just been talking about, 00:26:09.430 --> 00:26:13.020 we have to change people's minds and the more they understand it the better, 00:26:13.020 --> 00:26:17.650 and I think we're at this point now where more people in the last 00:26:17.650 --> 00:26:21.590 several years..four or five years have thought about the Fed than they ever have 00:26:21.590 --> 00:26:23.590 in the previous ninety five years 00:26:23.590 --> 00:26:29.090 so I think I an explanation and diagrams to show it is very helpful 00:26:29.090 --> 00:26:32.630 because quite frankly they're not going to get it in their grade school they're 00:26:32.630 --> 00:26:34.170 not going to get in their high school 00:26:34.170 --> 00:26:38.320 they're not going to get it in college unless they're in a very rare 00:26:38.320 --> 00:26:40.280 circumstance to understand 00:26:40.280 --> 00:26:44.710 how this works. [Jim Rickards] You know for years before I got involved in 00:26:44.710 --> 00:26:49.140 huh really studying gold and some of the things I write and talk about today I was a 00:26:49.140 --> 00:26:53.980 monetary economist for decades you know in your video you talk about the primary 00:26:53.980 --> 00:26:54.700 dealers 00:26:54.700 --> 00:26:58.920 I was chief counsel and chief credit officer for one the largest primary dealers for ten 00:26:58.920 --> 00:26:59.540 years so 00:26:59.540 --> 00:27:03.440 I had an inside seat on the Treasury market and have the privilege of working 00:27:03.440 --> 00:27:04.630 with several 00:27:04.630 --> 00:27:08.350 former Vice Chairman of the Board of Governors: Johnson and 00:27:08.350 --> 00:27:12.440 David Mullins going back to the 80's and 90's so I'm very immersed in what you're 00:27:12.440 --> 00:27:13.770 talking about I thought it was 00:27:13.770 --> 00:27:16.770 extremely accurate, extremely clear, 00:27:16.770 --> 00:27:20.120 I didn't think you were stretching on any points it was is really like something 00:27:20.120 --> 00:27:20.550 out of a 00:27:20.550 --> 00:27:25.360 PhD course except that it was very easy to understand, I think it's accessible, 00:27:25.360 --> 00:27:29.210 I think I think we're seeing a little bit of a revolution in communications in 00:27:29.210 --> 00:27:32.730 the following sense you know as you point out the Fed was created in 1913 00:27:32.730 --> 00:27:37.100 well in 1913 there was no web there was no YouTube, no Twitter 00:27:37.100 --> 00:27:40.570 there was really no one to stand up and 00:27:40.570 --> 00:27:43.890 oppose the Fed or call them out if you will, or really get into a discussion 00:27:43.890 --> 00:27:45.990 that everyday Americans could follow. 00:27:45.990 --> 00:27:49.260 That's not true now - with social media and everything else 00:27:49.260 --> 00:27:52.380 you can reach out to millions and tens of millions of people and tell them 00:27:52.380 --> 00:27:53.960 what's going onÉI think you've done that, 00:27:53.960 --> 00:27:57.660 You've done it successfully I applaud it, I think it's a great video I 00:27:57.660 --> 00:28:01.270 look forward to seeing it again, I know millions of people will enjoy it. 00:28:01.270 --> 00:28:02.030 [Steve Forbes] Well as we know the 00:28:02.030 --> 00:28:05.580 Federal Reserve believes it can create money out of thin air, and 00:28:05.580 --> 00:28:09.430 not realize money is supposed to represent real products and services 00:28:09.430 --> 00:28:14.140 and what people don't realize is when the Fed does that 00:28:14.140 --> 00:28:17.700 in effect as Keynes pointed out it's a form of taxation, 00:28:17.700 --> 00:28:22.150 it's a form of confiscation and because people don't see it 00:28:22.150 --> 00:28:27.710 the politicos get away with it, but it also undermines social trust, 00:28:27.710 --> 00:28:30.760 it just is corrosive throughout society. 00:28:30.760 --> 00:28:34.980 We're going to have a lot of turmoil in the coming years, 00:28:34.980 --> 00:28:38.320 but it's going to be the kind of turmoil that leads to positive things. 00:28:38.320 --> 00:28:42.840 So don't despair, get out there and fight because 00:28:42.840 --> 00:28:46.970 the tide is gonna turn. This is going to be the statists last stand. 00:28:46.970 --> 00:28:50.430 [Mike Maloney] Thank you! 00:28:50.430 --> 00:28:55.800 [James Anderson] This episode of Mike Maloney's Hidden Secrets Of Money 00:28:55.800 --> 00:29:00.520 was brought to you by GoldSilver.com and the new Silver Pegasus round. To 00:29:00.520 --> 00:29:02.120 learn how to protect your family 00:29:02.120 --> 00:29:05.370 and turn the coming economic storms and opportunity visit: 00:29:05.370 --> 00:29:07.030 GoldSilver.com