in the history of the world. It's a secret

that has huge effects for everyone who lives on this planet.

Most people can feel deep down that something isn't quite right

the world economy, but few know what it is

Gone are the days where a family can survive on

just one paycheck, every day it seems things are more and more

out of control, yet only one in a million understand why.

You are about to discover

the system that is ultimately responsible for most of the inequality in our

world today. The powers that be do not

want you to know about this, as this system is what has kept them at the top of

the financial food chain for the last 100 years.

Learning this will change your life because it will change the choices that you make.

If enough people learn it, it will change the world...

because it'll change the system.

For this is the biggest Hidden Secret Of Money.

Never in human history have so many been plundered by so

few,

And it's all accomplished through this, The Biggest Scam

In the History of Mankind

They say that money doesn't grow on trees

but the truth is that the modern banking system creates currency far faster than

trees can grow.

Most people don't have a clue how currency is created

economists and bankers make it sound so complex that people think they can't

understand it.

But I'm going to strip our monetary system down to its

essence so you can see the scam behind the curtain

and just how it affects you. Every modern society creates currency in pretty much

the same way

but since the US dollar is the majority of the world's currency

I'm going to use the United States as our example. It all starts when some

politician says 'Vote for me and I'll make sure the government provides you more

free stuff than my opponent will'

But there's no such thing as a free lunch - so to provide that supposedly free

stuff the politicians

vote for the country to spend more than its income. This is called deficit spending.

To pay for that deficit spending the Treasury borrows currency by issuing a

bond.

So what's a bond? If you think about it a bond is really nothing but a glorified

I.O.U. It's a pretty piece of paper with numbers printed on it that says

'Loan me a trillion dollars today and I promise over a 10-year period

I'm gonna pay you back that trillion dollars plus interest.'

But what you need to understand is that Treasury bonds

are our national debt. These glorified I.O.U.s

are to be paid back by you and I and our descendants through future taxation.

Therefore:

When the government issues a bond it steals prosperity

out as the future so that it can spend it today. The Treasury then holds a bond

auction

and the world's largest banks show up and compete to buy part of our national debt

and make a profit on by earning interest. You'll notice that as we move through

this process

the big banks are there taking a cut every step of the way.

This isn't by chance as you'll see shortly. Then,

through a shell game called Open Market Operations the banks get to sell some of

those bonds to the Federal Reserve

at a profit. To pay for the bonds the Federal Reserve

opens up its big old checkbook and writes bad

bogus counterfeit checks that should bounce because they're drawn on an account that

always has a zero balance, there isn't one penny

in there. To quote from the Boston Federal Reserve: 'When you are I write a

check there must be sufficient funds

in our account to cover that check, but when the Federal Reserve writes a check

there is no bank deposit on which that check is drawn.

When the Federal Reserve writes a check it is creating money."

The Fed then hands those checks to the banks and at this point currency

springs into existence.

The banks then take that currency and buy more bonds at the next Treasury

auction.

But what is a check? A check is also an I.O.U.

When you write a check you're making a note that says "Here's my I.O.U. for

cash,

all you have to do is go to the bank and pick it up." Now it's very very important

that you understand this process

because we're going to come back later and show you the devastating effect this

has on you.

The treasury issues I.O.U.s, (bonds).

The banks then buy those I.O.U.s with currency. The Federal Reserve

then writes I.O.U.s (checks) and hands them to the banks in exchange for the

Treasury's I.O.U.s

(the bonds). And currency is created. So what's really happening is the Federal

Reserve and the Treasury

are just swapping I.O.U.s, using the banks as middlemen,

and abracadabra presto currency magically springs into existence.

This process repeats and repeats over and over again

enriching the banks and indebting the public by raising the national debt.

The end result is that there's a buildup of bonds at the Federal Reserve

and currency at the Treasury. This process is also where

all paper currency comes from. The Federal Reserve and the government

mistakenly call it 'Base Money'

because they didn't watch Episode 1 of this series, and they don't know the

difference between money

and currency. But I will correctly refer to it as 'Base Currency' because

it is not money...

it is CURRENCY, and as we've learned there is a big difference:

Money has to be a store of value and maintain its purchasing power over

long periods of time.

We learned in Episode 1 that earlier in our history our paper currency was

just a claim check.

It was a representation for real money of intrinsic value,

the gold and silver that was held on deposit at the Treasury.

You could walk into any bank and slap your currency, like say a twenty dollar

bill

on the counter, and redeem it for real moneyÉa twenty dollar gold piece.

But now this base currency that's piling up back here

is really nothing but a receipt or a claim check on an I.O.U.

(that bond), so it's really nothing but a supply of numbers.

The Treasury then deposits the newly created currency in the various branches

of the government,

and the politicians say "Hey thanks for that!",

and the government does some deficit spending on public works,

social programs, and war.

The government employees, contractors and soldiers then deposit their pay in the

banks.

Now this may come as a shock to you, but when you deposit your currency with the bank

you're not

actually depositing it into an account to be safely held in trust for you.

Instead, you're actually loaning the bank your currency,

and within certain legal limits they can do with it pretty much anything they please.

This includes gambling in the stock market, and loaning it out...

at a profit of course.

Now this is where the machine of currency creation really gets cranking,

because this is where something called 'Fractional Reserve Lending' comes into

play.

Fractional Reserve Lending is exactly what it says. The banks are allowed

to reserve only a fraction of your deposit and loan the rest out.

Although reserve ratios may vary, I'm going to use a 10 percent reserve ratio

as our example.

If you deposit $100 dollars in your account, the bank can legally take ninety

dollars of it and loan it out without telling you.

The bank must hold ten dollars of your deposit in reserve

just in case you want some of it. These reserves are called 'Vault Cash'.

But why does your bank account still say you have one hundred dollars if the bank

has stolen ninety dollars of it?

Because the bank left I.O.U.s it created called 'bank credit'

in its place. Now I know this sounds crazy,

but here it is in black and white from the Fed: "Commercial banks create

checkbook money

when they grant a loan simply by adding new deposit dollars in accounts

on their books in exchange for a borrower's I.O.U."

These are nothing but numbers that the banks type into their computers,

and even though these bank credit I.O.U. numbers

are very different from base currency numbers (because they only exist in

computers),

they are still currency. So now there is one hundred ninety dollars in existence.

Now the reason people take out loans from the banks is to buy something.

They're going to buy a house or a car or something like that.

So the borrower takes the ninety dollars that the bank loaned to him from your account,

and he pays the seller of item. But then the seller deposits that currency

into his account,

and his bank loans out ninety percent of that,

and leaves bank credit numbers in its place. So now there's two hundred and

seventy-one dollars in existence.

This process repeats and repeats until under a 10 percent reserve ratio

an initial deposit of just one hundred dollars can create up to one thousand

dollars of bank credit

all backed by one hundred dollars of vault cash,

just 10 percent. But as I said reserve ratios vary wildly...

on some deposits it's 10 percent on others

its 3 percent and on some forms of deposits reserve requirements

are zero! The result is that the expansion the currency supply by the banks is

far greater than even this example would lead you to believe.

So once again, when currency is deposited in the banks,

the banks get to lend it out and then it gets we redeposited and relent,

redeposited and relent, redeposited and relent

over and over again creating bank credit all the way.