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  • Your true wealth is your time and freedom. Money is just a tool for trading your time.

  • It's a container to store your economic energy until you're ready to deploy it.

  • But the whole world has been turned away from real money and has been fooled into using currency, -

  • a deceiptful imposter that is silently stealing your two most valuable assets.

  • Your time and your freedom. Welcome to the rabbit hole.

  • We are entering a period of financial crisis that is the greatest the world has ever known.

  • The wealth transfer that will take place during this decade is the greatest wealth transfer in history.

  • Wealth is never destroyed. It is merely transferred.

  • And that means that on the opposite side of every crisis there is an opportunity.

  • The great news is that all you have to do to turn this crisis into your great opportunity is to educate yourself.

  • I believe that the best investment that you can make in your lifetime is your own education.

  • Education on the history of money.

  • Education on finance. Education on how the global economy works.

  • Education on how all of these guys, the central bankers, the stock market, how they can cheat you. How they can scam you.

  • If you learn what is going on and how the financial world works, you can put yourself on the correct side of this wealth transfer.

  • Winston Churchill once said that the further you look into the past, the further that you can see into the future.

  • This program is all about creating your own crystal ball.

  • Being able to gaze into the future.

  • Being able to change this crisis, the greatest crisis in the history of mankind, into your great opportunity.

  • The hidden secrets of money. Some of them are hidden in plain sight.

  • They're like right in front of you.

  • Uh, the way the monetary system works is something that isn't actually hidden away from all of us.

  • It's out in the open, but it's complex and people just don't, they can't see how it works.

  • It's hard for them to imagine that we're living in such a hoax.

  • Others are meant to be secret, but the truth is slowly coming out.

  • Like the Federal Reserve being a private corporation and not really part of the U.S. Government.

  • But when I started studying this, uh, what I found was that there was no place that I could point people to where they could get it all in one spot.

  • And so I basically decided to write my book about it and consolidate monetary history, economics, the markets, uh, the fundamentals of gold and silver.

  • There's a lot of smoke and mirrors in economics, and I've sort of made it my job to lift the fog for people.

  • Welcome to Egypt. This is where it all began.

  • Roughly 5,000 years ago, the Egyptians started using gold and silver as their predominant form of currency,-

  • but it was not yet money.

  • The pieces of gold and silver that they were using were odd sizes and weights. Odd purities.

  • So it still was not interchangable where each unit is the same as the next. This meant that nothing really had a price yet.

  • You couldn't put a price of so many coins on something because they didn't have coins yet. Trade was still difficult.

  • It was still a guessing game when it came to the exchange of values.

  • One of the reasons that we are in the financial mess that we are today globally is that people do not understand the difference between currency and money.

  • Currency is a medium of exchange, a unit of account. It is portable, durable, divisible, and something called fungible.

  • Fungible means that each unit is the same as the next unit.

  • A dollar in my pocket buys the same amount as a dollar in your pocket.

  • Money is all of those things plus a store of value over a long period of time.

  • Even financial planners, bankers, your accountant, they don't understand the difference between currency and money.

  • The currency in your pocket is a medium of exchange. It's a unit of account because it's got numbers on it.

  • It's somewhat durable, it's portable, it's divisible in that you can make change, and it's fungible.

  • A dollar in my pocket buys the same amount as a dollar in your pocket.

  • But because governments can print more and more and more of it and dilute the currency supply,-

  • it's continually transferring wealth out of your pocket, out of your bank account to the government and to the banking system.

  • The reason that gold and silver are the optimum form of money is because of their properties.

  • It's an easy medium of exchange because gold and silver store a large amount of value in a very small area.

  • It's a unit of account. Pure gold has the same value all over the planet.

  • So an ounce of gold buys the same amount here in Egypt as it would in China or in the United States.

  • It's durable. The same gold that Egyptians were using in trade 5,000 years ago is still here with us today.

  • It does not corrode. It's divisible.

  • You can make change with it. It's very portable.

  • You can use something like oil as money. It's just that you can't carry around a barrel of oil on your back.

  • It's fungible. Pure gold is the same wherever it is on earth.

  • Pure silver is the same wherever it is on earth. It's limited in quantity.

  • That's the reason that it maintains its purchasing power. Governments cannot print it.

  • Over the last 5,000 years, only gold and silver have maintained their purchasing power.

  • There have been thousands upon thousands of fiat currencies.

  • Currencies that are unbacked by gold or silver, and they have all gone to zero. It's a 100 percent failure rate.

  • Well, fiat currency, of course, is um, a currency that is, exists at the dictate or by fiat from, from a government.

  • They have their printing presses, and the paper money rolls off the printing presses.

  • And then they give it the fiat designation which then makes the currency official.

  • It's just worthless paper, but when Ben Bernake gives it the special sign, and they have the cult meeting -

  • at the Federal Open Market Committee meetings, it suddenly becomes currency.

  • If you look at what's really going on it's, it's a con game. And so there's confidence.

  • Well, the Federal Reserve is very forthright about what they're doing.

  • If you read their website they'll tell you it's a confidence game.

  • They tell that there's no intrinsic value in their money.

  • They'll tell you that they print it backed by absolutely nothing.

  • They actually display all these facts.

  • But if you tell somebody in the public that this stuff is created out of thin air, there's no backing whatsover -

  • , it's absolutely worthless, it's about as valuable as Monopoly money, they'll look at you like you're nuts.

  • Is there an example throughout history of a fiat currency, a piece of paper that's unbacked by anything, surviving?

  • Short answer, no.

  • Long answer, no. And here's why.

  • When Addison Wiggin took over at The Daily Reckoning, they got cranked up.

  • Uh, Bill Bonner asked him to catalogue all of the fiat currencies throughout history and what happened to each of them.

  • Addison dutifully went to work. Within a short period of time he had gone through the alphabet. All the fiat currencies that started with the letter A were done.

  • They all went to zero. He was halfway through the letter B and all the fiat currencies that started with the letter B,-

  • and there were 600 of them in just the first letter and a half of the alphabet.

  • And every single one of them went to zero. Every one.

  • 600 fiat currencies that start with the letter A, and half of the ones that start with the letter B, there are 600 of these things.

  • Not one ever came close.

  • And you think this one, the United States dollar is gonna be the first one after all that? I don't think so.

  • No. No currency, fiat currency has ever survived.

  • None.

  • The thing about money is there actually is a fairly well accepted definition of what money is.

  • The question is as you apply that definition to particular things that are, people claim to be money, do they fit the definition?

  • Well just take the paper dollar for example. How well does it perform those functions?

  • Will it store a value? Uh, the dollar has lost 95 percent of its purchasing power, uh, since the creation of the Federal Reserve in 1913.

  • So not very good as a store of value.

  • One of the things I do is, uh, just a way to get the audience's attention is I have a slide and there are three pictures on the slide.

  • One is a pile of Monopoly money. The other one is a pile of Federal Reserve notes.

  • Uh, what Americans would call paper money.

  • Uh, the other one is a solid gold, uh, American Eagle, uh, one ounce coin.

  • And the title of this slide is which of these is not like the other.

  • And if you know the show Sesame Street or if you have children who watch it, it's one of the favorite vignettes in Sesame Street.

  • And what it really is is a kind of IQ test for five year olds.

  • They're supposed to look at the three things and look at characteristics and find the one that's not like the other.

  • Well, I've shown this slide to, um, groups of, you know, Ivy League university professors, and I've also shown it to, uh, you know, uh, children.

  • You know, kind of find results in my nieces and newphews and so forth.

  • Uh, and when the, uh, professors look at it they say well, um, clearly the, uh, the dollars are not like the others -

  • 'cause gold has no role as money and Monopoly money is junk and the American dollar is a store of value.

  • So that's not like the other. But the children look at it and they say well, the gold coin is not like the other -

  • because the other two are just piles of paper, and the gold coin is clearly something different.

  • So my question to the audience is who's smarter? A five year old or an Ivy League professor?

  • Before World War I, each note that a treasury issued would say that there has been deposited with the United States Treasury -

  • 20 dollars in gold coin payable to the bearer upon demand.

  • The money was in the vault. The currency was a note they gave you that was a claim check.

  • Only a claim check on the money. The same as if you go to the dry cleaners and you give them your shirt and they give you a claim check for your shirt.

  • The value is, is that shirt at the dry cleaners. Not the piece of paper that says that you own that shirt.

  • So our currency that's circulated was the paper U.S. dollars and they were claim checks on money.

  • The next hidden secret is the difference between currency and money.

  • Money must be a store of value and maintain its purchasing power over long periods of time.

  • As we progress through this series, you'll learn that national currencies are really a tool used by the government -

  • and the financial sector to leach away your time and your freedom by stealing your purchasing power.

  • So rather than storing your economic energy, currencies leak.

  • Now compare that to the gold and silver the Egyptians were using. Like I started with, it still wasn't money because it wasn't interchangable yet.

  • Like I started with, it still wasn't money because it wasn't interchangable yet.

  • But they were on the right track as gold and silver have proven over thousands of years to be the ultimate store of value.

  • Gold is only formed when a star explodes, a supernova. And it stays around forever.

  • This is one of the properties that make it the ultimate money.

  • You know, people are amazed that after 5,000 years the pyramids are still here.

  • But what I'm more amazed at is that the currency that the people that built this were using,-

  • that currency, that gold and silver that they were using in trade on a daily basis, is still around today.

  • It may have been melted down and re-refined and it's in a coin or a bar or in some piece of jewelry.

  • But it's still with us today and it still purchases something.

  • Yes, it is the ultimate money because there is nothing else even in the same league. It's divisible.

  • It's permanent. It's a store of value.

  • It's, uh, a unit of account. It's got everything you want out of money, but it doesn't go away and it can't be increased.

  • That is what makes gold the most beautiful money of all. What more can you ask out of a money?

  • It keeps governments under control. You can maintain a solvent system.

  • Governments don't like gold at present because they're getting away with the fiat currencies, and they'll do everything they can to discredit it as an asset class.

  • I mean, my goodness. Gold has, uh, outperformed the Dow Jones Industrial Average in each of the last seven years.

  • Uh, yet it's not considered a legitimate asset class. Why?

  • Again, it's the fear that maybe gold will be imposed on the system.

  • That it will constrain government ability to spend beyond its means.

  • They can't print it.

  • They can't print it, no.

  • The proper definition of inflation, I use Milton Friedman's definition. Inflation is an expansion of the currency supply.

  • Deflation is a contraction of the currency supply. If you expand the currency supply, eventually prices will rise.

  • And if you contract the currency supply, eventually prices will fall.

  • This is a pool. But it's not a pool of water.

  • This is a, the currency pool. And these are prices.

  • And if you expand the currency supply, prices like a sponge in water have to rise to suck up the excess currency.

  • Governments never stop printing more currency and adding currency to circulation.

  • Therefore, prices keep on going up. Not because they stuff that you're trying to buy is changing.

  • The real estate doesn't change. What has changed is the currency purchases less and less.

  • It's the currency going down. Not prices going up.

  • The truth is, what we have that makes our world work right now is a big story. None of it's real.

  • It's all just promises. And if you think about it, that's how currency began to work in the beginning.

  • You know, before we had currency we had barter.

  • I'll give you three coconuts and you give me four fish 'cause that's kind of a fair exchange on coconuts and fish.

  • But that got complicated so we had to invent this thing called money to be a divisible, portable medium of exchange.

  • And the challenge is that we've lost that a long time ago. We lost having things of value be our currency.

  • And now we have this thing called numbers and accounts. But trust me.

  • It is not real. It's a big made up story.

  • One of the biggest make believe stories ever is called quantitative easing which sounds complex, -

  • but it's really just a smoke and mirrors term for currency creation.

  • QE started with the banking bailouts back in 2009.

  • This currency was created out of thin air and then given to the banks who paid themselves record bonuses in reward for crashing the world economy.

  • This is a global phenomenon, but all you have to remember for now is that whether it's QE, bailouts, or stimulus programs, -

  • these are all just voodoo, hocus pocus terms for increased currency creation.

  • I believe gold and silver will reassert themselves as money and when they do, there just isn't enough.

  • And their purchasing power is going to go up many, many, many times.

  • Egypt is an amazing place. There's a franticness about it, an utter chaos. Especially like the traffic.

  • When it comes to like all of the merchants that are trying to get every last dime out of you, -

  • you get fleeced to the point where you come back with an empty wallet. [LAUGH]

  • But you know what? They're amateurs compared to Wall Street.

  • In the past several years, I've, I've spoken in many countries about the crisis that's coming, -

  • and a lot of people think that they're gonna be okay in their country.

  • That it's only gonna happen in the United States or maybe the United States and Europe.

  • Uh, but what they don't realize is that this is a global phenomenon.

  • I got to show you something here. This is, uh, base currency in the United States.

  • This is the number of paper dollars that exist basically.

  • It took 200 years to go from no dollars in existence to 825 billion.

  • And then we had the bailouts, and then we had QE1, Quantitative Easing 1.

  • Then QE2. And then we had QE3 and then QE4 and then soon we're gonna have QE57 and QE382. [LAUGH]

  • And, uh, it isn't just here. This is what the Canadian currency supply looks like.

  • This is Australia. South Africa. Russia.

  • Now this starts out in just the year 2001, and this is like 18 times more currency in existence in a little over a decade.

  • Uh, here's Singapore. Same story. Look at that. Since the crisis, just bam.

  • India. China. Every government on the planet is -

  • doing this insane deficit spending and expanding their currency supplies, uh, doing bailouts.

  • And history shows that there is no example of this turning out well.

  • It is sometimes amazing that we haven't experienced more inflation than we have.

  • If they keep expanding the money supply so vastly, why aren't our prices growing faster than they really are?

  • And the answer is that a good chunk of the money that the Fed created has been shipped overseas.

  • Uh, I remember early in my research I heard this expression that the Americans have exported their inflation.

  • I thought what is that? How can you export your inflation? Put it in a box and send it out? What do you do?

  • Well now I understand. You export your inflation by simply sending all these dollars that you created to these other countries -

  • and then they send you their refrigerators and their cars and whatever, their TV sets.

  • So you get hardware and they get little pieces of paper. It's a great deal for the American people for a while. For a while.

  • Sooner or later all of those pigeons come home to roost.

  • When the time comes as it looks like it's now coming, when the rest of the world is saying nuh-uh we don't want to play this game anymore.

  • Uncle Sam's dollars are just becoming worthless. There are too many of them.

  • We've got to find something else other than American dollars. Then those dollars start to come back to America.

  • People, we don't want them anymore. What do we do with them?

  • Once this revs up and we've got this, this little trickle of money coming back that we'd previously exported, -

  • when, once it becomes a flood and it starts to rush back, now we are getting our former exported inflation brought back to us.

  • And then we'll see the quantity of money inside the United States grow much more rapidly -

  • even than the Federal Reserve can create it because we're getting our previous money back.

  • And, uh, that's when we will really see the tanking of the U.S. Dollar in terms of what it will buy.

  • During the second round of quantitative easing, global food prices went up 60 percent, -

  • and this created a humanitarian disaster for the two billion people on earth who live on less than two dollars a day.

  • These people were hungry to start with. They became hungrier and some of them started overthrowing their governments in North Africa and around the Middle East.

  • So quantitative easing was the spark that ignited the Arab Spring.