the following presentation is based on content from my new book The Great gold and silver Rush of the 21st century to read the free online chapters or order the book please go to ggsr21.com thanks welcome to the great gold and silver Rush of the 21st century part one backed by the full faith and credit of you so uh this is about how you have been monetized you are what gives the uh the purchasing power in currency this year the reason that people have faith in it and the reason we use it as a medium of


exchange it is said that Fiat currencies are faith-based that they only have purchasing power because you have faith in them that because they purchased something yesterday we all have faith that they'll purchase roughly the same amount tomorrow and I actually hope that this book shakes your faith to its very Foundation because faith in fiat currency is akin to Faith in forgery fabrication falsehood and fraud as I said back in chapter one today the vast majority of currency is created by just


typing numbers into computers so please ask yourself how many numbers are there what is the limit to currency creation one of the key attributes of money is that it must be a store of value you know I was having this discussion with somebody recently and I said what are the attributes of money and I was arguing that it had to store purchasing power and the this guy said well not necessarily and so I went online and I just typed uh you know attributes of money and the very first thing is the Federal Reserve and it listed the


functions that money has to have to be called money and the very first one was a store of value it's the most important out of all of these I mean it also has to be a medium of exchange and a unit of account and such but a store of value is number one and I in chapter one I really I believe that I proved beyond a shadow of a doubt that no Nation today uses real money and I said if if you're talking with somebody and you tell them the national Fiat currencies aren't money and they say oh


no no no we use the euro or the British pound or the Yen or the Yuan and our currency is money uh ask them do you believe money is a store of value that money should be a store of value and if they say yes then ask them is there inflation and if they say yes then ask them but aren't those two things mutually exclusive I mean if there is inflation that means that the currency is losing purchasing power it isn't the stuff that's changing it's the currency that's changing it's losing value and


therefore it is not money so real money does not require Faith the purchasing power of an ounce of gold is simply the market placing a value on the Rarity the time and the effort that's required to produce it which is equal to the time and effort that you must work put in working to acquire it which is also equal to the value of the things that you can buy with it in other words if you're purchasing a home with gold coins it takes very few gold coins to purchase a house so if you're purchasing that


house with gold coins it's a fair transaction because the time and effort that's put into prospecting developing a mind mining The Ore refining it pouring it into bars and minting those melting those bars and mitting them into coins is equal to the time and effort that you put in to earning enough gold coins to buy a home which is also equal to the value of the time effort materials you know cutting down all of the trees creating Lumber digging up all of the ore to create the copper for the


plumbing pipe and the and the wiring uh digging up enough dirt to make the cement that goes into the home uh all of those things added up added up equal the time and effort that it takes to get that gold out of the ground a minute into a coin so these two things and and the amount of work that you had to do to acquire those coins it's a fair trade uh when we transact with currency it's fraud we're trading nothing we're imagining a number into existence and trading that for something of real


value when we transact with money it's a fair trade we're transacting some with something of value for something of equal value this is the reason that gold and silver have always been called honest money money stores value currency as you will see uh in this chapter currency steals value so even though faith is not required for gold and silver I have put my faith in them going shopping this piece is simply about how Banks work Banks get to counterfeit currency into existence so does the central bank they are the base


counterfeiter and the the commercial banks are pyramided on top of the they do counterfeiting on top of counterfeiting uh and uh it's this is perfectly legal for them to do uh and they justify this by saying when they create new currency that now everyone feels richer so they'll spend more and that will really make them richer some economists say this and it's obviously insane if you create a bunch of currency and you hand it out to everybody prices of all the goods and services are


quickly going to rise to uh to account for that currency and neutralize uh that currency basically absorbing any extra purchasing power that has been put into the system and the problem is that that is not evenly spread around it's whoever touches that currency first whoever types it into existence and then buys something with it that gets the maximum purchasing power out of it and then as it circulates the purchasing power diminishes and uh it's so what the reason it's important is whoever doesn't


touch that newly created currency won't get any of its benefits in fact these are the people those who don't receive the new currency who pay for it through the co who pay the cost of the newly acquired richness of those who do receive it and they pay for it through the tax known as inflation as prices rise faster than their wages causing all of the things they want and need to be priced ever further from their grasp so essentially we can divide the world into three types of people those who create


the currency those who receive its benefits and those who pay the price and since and you'll see at the end of part eight of this chapter so the very last video in this chapter uh you will see a quote from the Federal Reserve that they do know that they are creating this wealth transfer when they create new currency so they are admitting that you know since we know the currency printing is theft we can re-characterize these groups as one the robbers to the beneficiaries and three the victims so


when you see that quote at the end of the last video about the Federal Reserve knowing that currency creation imparts gains to the first receivers of the currency at the expense of those who don't receive it when you see that they are admitting that they are the robbers here so anyway uh moving on the currency creation the currency confidence con job we learned in chapter one that there are three forms of currency there's two forms of Base currency the first form of Base currency is this uh Bank Reserves and


the public never sees touches or uses the Bank Reserves that's all it's a separate monetary system only used for inter-bank settlement the second form of Base currency is the paper notes that are in your purse or wallet the Federal Reserve notes in the United States that we use and that's the only type of Central Bank currency that the public actually uses and that is a very small portion of the currency less than 10 percent of the currency Supply or right around 10 percent of the currency Supply


so nine out of every ten dollars that we use is the third form of currency which is Bank credit and the uh you'll see how Banks create that in just a moment so how is uh currency created what are the bank what are Bank Reserves what is in your wallet and what is in your bank account well as it turns out the paper notes that are in circulation the Federal Reserve notes that are in your wallet are uh those paper notes are Central ious from the central bank that the Central Bank just imagines into existence and to get


them into circulation they buy something with them uh your bank account is nothing but digits that are reminders that the Bank owes you Central Bank ious so the digits are basically an IOU for an IOU this whole thing gets even more can more insane as we go it truly is crazy and it's evil this is fundamentally an evil monetary system that benefits the few at the expense of the many uh and it enslaves all of us as you will see so um uh in other words Bank credit is ious for ious there's approximately 10 times


more Bank credit ious for ious than paper currency ious and that is because uh the bank credit iOS are created whenever you take out a loan and there's a lot more loans being made in a society at any given time than the central bank is busy uh making out ious and buying stuff with them Bank Reserves are part of a completely separate monetary system I was talking about and they're uh only used between Banks so this is what the banks have in their Check accounts at the Central Bank like at the Federal


Reserve there's about 10 times more Bank credit ious for ious in existence than there are Federal Reserve or Central Bank ious and that's because we take out so many more loans for houses and cars and things like that getting back to Bank Reserves they're part of that completely separate monetary system that's only used for inter-bank settlement and that system is based on basically what equates to a checking account that the commercial banks have at the central bank so those digits only


exist really inside the computers at the Federal Reserve or the ECB and it's used for this interbank settlement so the entire monetary system is just ious if it's just ious what is it that they owe us and so this will never happen but theoretically if everyone including the banks and the public were to try and redeem their ious from each other then the banks would have to pay the public their deposits and they would pay in those Central Bank iou's Federal paper Federal Reserve notes minus whatever the


public owes the bank for any loans that so it would be whatever net balance there is uh your bank account minus whatever you owe you would get back in these paper currency uh these base currency notes uh the public would then have to go to the central bank to redeem their paper ious and the banks would have to go to the central bank to redeem any of their Bank Reserves uh at the end of the line is the central bank and since all Central Bank ious are a liability on their balance sheet they've


got assets and liabilities the liability is all of the ious that they create whether it's bank reserve ious or the paper currency and circulation ious those are liabilities against the assets of the central bank so what what are the central bank's assets it's mostly the sovereign debt of whatever country that that that that Central Bank issues ious for in the United States the central bank that we have issues uh US dollar ious uh and so the asset that backs those though is mostly U.S treasury


bills bonds and notes and so what are those treasury bonds notes bills notes and bonds uh a treasury is an IOU which promises to pay the bearer of the IOU whoever bought that IOU your future taxes all of us have to work in the future to pay taxes to pay the principal and the interest due on that bond which was an IOU that the treasury gave when they borrowed some currency and uh so it's all owed back uh so the entire world monetary system can be summed up in just six letters i o u y o u I owe you you


all banks whether they are central banks or commercial Banks do not lend anything that already exists instead they just imagine a number and then they lend it to you with interest question what gives cash like Federal Reserve notes value what backs them answer when the Federal Reserve buys an asset like a U.S treasury bill note or bond which is an IOU from the treasury for revenues from future taxation your future taxation the Central Bank imagines some IOU numbers that match the imagined amount of the


ious they are buying from the treasury since U.S treasuries are ious for future tax revenues what backs the newly imagined Federal Reserve U.S dollar ious are the future hours you must work to pay your taxes stop paying your taxes and you go to jail this guarantees to the Federal Reserve that you will work in the future to make good on their ious question how do commercial Banks create Bank credit ious for ious the answer is when you take out a loan for a house or a car the bank imagines a number that matches the imagined value


of the collateral that you're offering and then it types those numbers into your checking account that number is simply a reminder to the bank that it owes you that amount of Central Bank paper ious question what backs the ious in your account what gives those digits in your checking account value answer it's the hours you must work in the future to make the payments on your mortgage or your car loan your house or your car secures it guarantees the value of those ious if you stop making


payments on your house or your car the bank will take them this also guarantees to the bank that you will work in the future to make good on their ious so the only thing that gives any national currency value is the extraction of future work hours from you therefore you have been monetized as I said back in chapter one if you're not angry you're not paying attention Go Ask Alice this is an excerpt from Joshua Marie's book Debt by Design it's a great little book I encourage you to read it uh


readers are encouraged to stop for a minute and contemplate the circular reasoning that underpins our debt-based monetary system the public believe that deposits have value the value of the deposits is determined by the value of the loans the value of the loans is determined by the ability of the public to repay their debt and there you have the circular argument looking at the reasoning in reverse the ability of the public to repay their debt determines the value of the loans and the value of the loans determines


the value of the deposits consequently if the public ever tried to determine what it is that instills value into their deposits they would end up staring into a mirror this Epiphany is uncomfortable and bewildering for many this circular reasoning is equivalent to the term literary nonsense used to describe Alice in Wonderland now getting back to the story I'm telling here if you don't believe me about all of these claims that I've just made here are some direct quotes from the central banks this is mostly from


the bank of England and I do want to thank Joshua Marie for his book Debt by Design you can pick up a copy at fairmoney.info you can also go to the bank of England and download their quarterly bulletin money Creation in the modern economy or to Joshua Marie's site and you can get a copy of this uh pamphlet it's very simple and short to read but here are a few quotes that I pulled from it and this applies to all central banks when it comes to currency creation they all work pretty much the


same when it comes to QE the bank of England and the Federal Reserve work pretty much identically so these are the quotes they call it money I call it currency but these are quotes so I'm going to save money and you need to know that whenever they say broad money they're talking about the type of currency that we use the public whenever they say narrow money they're talking about the type of currency that the banks only use and so uh here are a few of their quotes broad money is made up


of Bank deposits which are essentially ious from a commercial Bank to households and companies so there you have it Bank of England your deposits in your checking account are ious from the commercial company to households and companies and currency which is mostly ious from the central bank so the currency that we use broad money is their term for it a broad currency will I'll call it is ious from the Commercial Bank to households and companies and currency uh which is ious from the central bank reserves are an


IOU from the central bank to commercial Banks reserves can only be lent between Banks since consumers do not have access to reserves Accounts at the bank of England the next quote commercial Banks create money in the form of bank deposits by making new loans for this reason some economists refer to Banks deposits as fountain pen money created at the stroke of a banker's pen when they approve loans and the final quote deposits are simply a record of how much the bank itself owes its customers so now that


we've learned all of this please digest this for a little while Place certain sections again talk to somebody about it understand how you have been monetized and how this uh whole system transfers wealth from you to the few through this construction of this very elaborate device called the monetary system and that it is fundamentally when you by the time you get done with this chapter you will realize that this is an evil monetary system but this is the world we live in we have to deal with it you have


to protect yourself and your family as best you can and you have to do as well as you can in this environment until it is replaced with hopefully with something new something Fair something honest I want to thank you for watching this the first part of the eight parts of chapter four of the great gold and silver Rush of the 21st century thank you very much we'll see you in the next part thanks for watching but this is by no means the whole story if you want the full story including my free online only


chapters and companion videos there's a wealth of information at ggsr21.com thanks foreign [Music]