July 24, 2025 • 53 mins
💰 What if your money… suddenly meant nothing?
In this explosive episode of Conspiracy Theory or Not: Operation Disclosure, we pull back the curtain on the intentional unraveling of cash as we know it. From global banking cartels to quiet central bank deals, you’ll discover the hidden history and engineered collapse of paper currency — and how digital control is replacing financial freedom. 💣 Are we heading toward a cashless trap?
🔐 Is your paycheck really yours?
💳 Who really benefits from a world where money is code and control is currency? This isn’t fearmongering. It’s fact-checking the headlines no one wants you to see. 🧠 If you’ve ever sensed the game was rigged — this is the episode that proves you’re right. 📲 Download, subscribe, and decide for yourself.
Because soon… you may not get to choose.
In this explosive episode of Conspiracy Theory or Not: Operation Disclosure, we pull back the curtain on the intentional unraveling of cash as we know it. From global banking cartels to quiet central bank deals, you’ll discover the hidden history and engineered collapse of paper currency — and how digital control is replacing financial freedom. 💣 Are we heading toward a cashless trap?
🔐 Is your paycheck really yours?
💳 Who really benefits from a world where money is code and control is currency? This isn’t fearmongering. It’s fact-checking the headlines no one wants you to see. 🧠 If you’ve ever sensed the game was rigged — this is the episode that proves you’re right. 📲 Download, subscribe, and decide for yourself.
Because soon… you may not get to choose.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The strength of a nation's currency is based on the
strength of that nation's economy, and the American economy is
by far the strongest in the world. Accordingly, I have
directed the Secretary of the Treasury to take the action
necessary to defend the dollar against the speculators. I have
directed Secretary Connolly to suspend temporarily the convertibility of the
(00:22):
dollar in the gold or other reserve assets, except in
amounts and conditions determined to be in the interest of
monetary stability and in the best interests of the United States.
Speaker 2 (00:34):
August fifteenth, nineteen seventy one will stand as an important
event in economic history for many, many generations. In fact,
hundreds of years from now, people will look back to
that day.
Speaker 3 (01:23):
The sun rises today as it has a million times before.
Commuters wake up and travel to their offices to begin
the day's work. Farmers tend to their crops. Instruction workers
build new infrastructure. Today is a day like any other,
or is it. In two thousand and eight, the world
(01:45):
experienced one of the greatest financial turmoils in history. Markets
around the world started crashing, and major financial institutions, once
thought to be invincible, started showing signs of collapse. Uns
responded quickly, issuing massive bailouts and stimulus packages in an
effort to keep the world economy afloat, and it worked.
(02:09):
The global economy recovered much quicker than most predicted, and
soon it was back to business as usual. And yet
something still isn't quite right. A growing sense of unease
fills the population in the world of finance, indeed, in
all facets of modern life, cracks have started to appear.
Speaker 4 (02:32):
There's angst out there, and I think if you talk
to people on the street.
Speaker 5 (02:35):
Today, they would tell you, I don't.
Speaker 4 (02:37):
Know what's causing all this, but this just doesn't feel
normal to me. You know, the government's running at trillion
dollars worth of deficit. Why isn't the economy improving? The
government's going to spend almost three point seven trillion dollars.
Why don't I have a job? Why is the unemployment
rate at nine percent? And I even think that number
(02:58):
is understated.
Speaker 3 (03:00):
A lot of people are feeling unsure about the world today,
concerned that something terrible is waiting in the wings. We're
told that the global financial crisis of a few years
ago has been fixed, But what if the crisis isn't
the cause of the angst so many of us feel,
but rather the symptom of a much deeper problem.
Speaker 6 (03:27):
At Bretonwood's New Hampshire, delegates from forty four Allied and
associate countries arrived for the opening of the United Nations
Monetary and Financial Conference.
Speaker 3 (03:37):
Our story begins in nineteen forty four. With World War
II coming to an end, the Allied Nations met at
breton Wood's New Hampshire to create a new financial system
which would stabilize the world once the war ended. With
America poised to enter a golden age of prosperity, the
US dollar was chosen as the world's reserve currency.
Speaker 2 (03:58):
That breton Wood system created after the Second World War
at the Brentwoods Conference in New Hampshire, and rather than
using gold as the means of exchange between countries, as
was the case under the old Gault standard, the dollar
was going to be used, and the dollar was chosen
because back then it was as good as gold.
Speaker 3 (04:18):
Under this new system, countries agreed to fix their currencies
to the US dollar, and the US dollar would be
tied to gold at a price of thirty five dollars
per ounce. This meant that countries around the world could
trade their currencies for US dollars, which they could then
exchange for gold. This created a system where all currencies
(04:40):
were essentially backed by gold to avoid the logistics of
shipping physical gold across the world. When countries did exchange
their currencies for gold, it was usually stored safely in
the US.
Speaker 4 (04:55):
Under the Bretonwood system, you could exchange your currency or
your dollar for gold, now only applied to foreign countries
and central banks, and we began to run budget deficits.
We were running the Great Society Program under Lyndon Johnson,
and we were fighting a war in Vietnam, and all
of a sudden, we were running these deficits, and countries
were changing their dollars and they say they wanted gold.
(05:18):
It began with the French, and then it started to spread.
Speaker 3 (05:22):
With all the new spending programs in the United States.
Other countries became concerned that the US was spending more
money than it had gold reserves. They started exchanging their
dollars for gold and demanded physical delivery, as they felt
that there were more dollars being printed than the gold
that backed it. To prevent this outflow of gold from
(05:43):
American vaults, President Nixon called for an emergency suspension of
the gold convertibility system.
Speaker 1 (05:53):
I have directed the Secretary of the Treasury to take
the action necessary to defend the dollar against the speculators.
I had directed Secretary Connolly to suspend temporarily the convertibility
of the dollar in the gold or other reserve asset.
Speaker 2 (06:09):
All of the problems that we see today in the
monetary system are a direct result of the decision made
in August fifteenth, nineteen seventy one, to abandon fixed link
back to gold. What gold did is it provided discipline
on governments, provided discipline on government spending.
Speaker 4 (06:26):
Under the old system, if you ran a budget deficit,
then what would happen is gold would flow out of
your country until there was a balance again. Well, without
any gold backing, then countries ran perpetual deficits. So if
you look at, for example, this country from nineteen seventy
one on, the US has never run a surplus ever
since we went off the gold standard, it's just been
(06:48):
perpetual stimulus, good times, bad times, always run a deficit.
Speaker 7 (06:53):
What led Nixon to abandon the gold standard in nineteen
seventy one, and although he claimed it was temporary, forty
years we're still off of it. We ran up huge
deficits during the nineteen sixties. We had the guns and
butter economy, where the government was both simultaneously fighting a
war in Vietnam abroad. In addition, we were funding manned
(07:16):
missions to the Moon in the whole space program. We
were creating more money than we had gold reserves to
back it up, and a lot of our foreign creditors
saw this and began to demand gold rather than their
federal reserve notes because they sensed that Washington simply didn't
have enough gold to make its commitment to back the dollar.
Speaker 3 (07:40):
By removing the link between gold and the US dollar,
President Nixon created a system where all currencies were backed
by nothing. This is what is known as a fiat currency.
Speaker 2 (07:52):
Fiat currency is currency that's backed by nothing except government promises.
The word fiat is a Latin word, and it basically
means currency that's circulating by force, if people have confidence
in that currency, and if there's enough government force that
will enable the currency to circulate for a period of
time until people lose confidence in the currency.
Speaker 8 (08:13):
There is no nation on this planet that currently uses money.
We all use currency. There will come a day when
everybody knows the difference.
Speaker 9 (08:23):
Money is a medium of exchange, and the way it
has evolved is that it's always something of intrinsic value,
until the modern age, when the politicians say, well, we
don't need anything of intrinsic value anymore. All we need
is political decree. We can say this is money, this
piece of paper is money. Now money has a new
characteristic But underneath it all there's this same concept in
(08:45):
place that nobody ever seems to challenge, and that is
that governments have a right to declare something of no
value to be money, and you must accept it.
Speaker 7 (08:54):
That's really the.
Speaker 9 (08:55):
Problem, and it's still the problem today. It's destroying the
economies of the world.
Speaker 3 (09:00):
With currencies no longer backed by anything real or tangible,
their value was measured only in relation to each other.
And because countries with relatively weak currencies can make products cheaply,
countries devalue their own currencies to make them desirable trading partners.
Speaker 10 (09:19):
Every paper currency measures itself against the dollar, so if
the dollar go is done, the other central banks respond
to that and they try and intervene in the foreign
exchange markets to ensure that the impacts doesn't hit their
domestic economies.
Speaker 3 (09:36):
What is a ponzi scheme? A ponzi scheme is a
fraudulent investment scheme that promises high returns for investors with
little or no risk. Sounds too good to be true, right,
That's because it is. In a legitimate investment scheme, the
money invested is used to build wealth, typically through low
risk ventures like stock or real estate portfolios. Time this
(10:00):
generates enough income to pay the investor back their initial
investment plus some profit. A ponzi scheme, on the other hand,
promises massive returns quickly. How does it accomplish this? Instead
of using the money invested to build wealth, a ponzi
scheme simply brings in more investors to pay off the
previous investors. And because these new investors have also been
(10:23):
promised large returns, the scheme must then find an even
bigger group of investors to pay them off. All the while,
the creators of the scheme are skimming cash from each
group of investors. Because a ponzi scheme doesn't generate any
wealth itself, it must constantly bring in larger and larger
groups of investors to keep functioning. Eventually, no more new
(10:46):
investors can be found, or large numbers of previous investors
all cash out at the same time, and the scheme
collapses in on itself. By this time, the perpetrators of
the scheme have siphoned off tremendous amounts of money for themselves,
while the investors are left out of pocket and out
of luck. Without a fixed link to gold, the US
(11:11):
Treasury has been able to borrow and spend as much
money as it wanted. When the US government needs money,
it takes out a loan with the Federal Reserve. The
Federal Reserve prints the currency required for the loan and
in return receives an IOU from the US Treasury. These
IOUs are called government bonds. With the money provided from
(11:35):
these loans or bonds, the US government pays its bills
and obligations. Meanwhile, the US Treasury and the Federal Reserve
work closely together to sell these bonds at auction, where
foreign central banks, pension funds, and even individuals buy these
US government loans, and why wouldn't they. Loaning money to
(11:56):
the US government is virtually a risk free investment. But
if the loans are spent on bills and paying off
previous loans, where does the government get the money to
pay back the current loan and the interest that is
charged on it is investing in a US government bond
simply one small part in a giant Ponzi scheme.
Speaker 9 (12:19):
The Federal Reserve system is definitely a Ponzi scheme, There's
no question about it. They go through the appearance of
lending money to the governments, and the governments agree to
pay back the money plus interest, and so this money
comes into being. They create it just for that purpose.
They give it to the governments. Didn't exist before that,
you understand, central banks just make it out of nothing
(12:42):
and click a few keys on a keyboard of a computer,
and the Treasury of the United States government now has
another trillion dollars that it can spend. That's where that
money came from. And so that creates a liability on
the part of the federal government to pay it back
plus interest. Now think about that plus interest. Well, when
it comes time to pay it back plus the interest,
(13:03):
they can't pay it back, and they certainly can't pay
it back plus interest too. So what they do is
they borrow more to cover the original loan plus the interest,
and then by that time Congress that wants more money anyway,
so the debt just keeps going up and up and
up and up.
Speaker 8 (13:17):
Under the current monetary system, we borrow all of our
currency into existence, and we promise to pay it back
plus interest. If you borrow the very first dollar into existence,
and that's the only dollar that exists on the planet,
but you promise to pay it back plus another dollar's
worth of interest, where do you get the second dollar.
The answer is you have to borrow that. It's a
Ponzi scheme because you can never pay it off. It
(13:39):
always requires that we go deeper into debt.
Speaker 3 (13:43):
Since nineteen seventy one, the United States has been running
trade deficits with the rest of the world, meaning we've
been buying a lot more products from the rest of
the world than they have been buying from US. The
Japanese and Koreans sell US cars and electronics, the Middle
East sells US oil, and the Chinese sell US seemingly
(14:04):
everything on our Walmart shelves. The US pays for these
products with US dollars, and everyone is happy. But if
countries were to convert these US dollar profits back into
their own currencies, their currencies would rise in value, making
their economies less desirable to trade with. Instead, countries invest
(14:26):
their dollar profits by buying US government bonds. So countries
around the world sell their goods to the US in
exchange for US dollars which have been borrowed through the
Federal Reserve, creating IOUs and countries then loan their US
dollar profits back to the US by buying more IOUs.
(14:47):
The money from these loans is spent on paying government
expenses as well as paying back previous IOUs but in
order to do this, larger and larger loans must be
made in order to to pay back the principle and
the interest by paying back old loans with new and
larger loans, it would appear as if the entire world
(15:10):
has been investing their hard earned money into a Ponzi
scheme of epic proportions.
Speaker 9 (15:17):
In this business of creating money for federal governments and
national governments around the world. If they didn't keep creating
new money in larger and larger amounts, the whole thing
would crash because that's where the money comes from to
pay off the previous loans, it's the new loans. So
that's why it's a Ponzi scheme. It's a classic Ponzi scheme.
Speaker 7 (15:39):
In order for the US economy to function, we have
to borrow more and more money from the rest of
the world. And the more money they loan us today,
the more money they have to loan us in the future.
And if they ever stop loaning, the whole thing collapses
and we can't pay them back.
Speaker 6 (16:00):
Every Friday night, Julia's job is to compare the grocery
prices of our neighborhood stores for Saturday morning shopping. There
are five big neighborhood markets within a couple of blocks
of our house, and Julia's spreads are shopping around, going
when the prices are lowest and the quality best.
Speaker 3 (16:17):
Remember when a chocolate bar cost a quarter, when you
could fill your car up for five dollars, man feed
a family of six for thirty five dollars a week.
Whatever happened to those days? Without anything tangible backing currencies,
governments could borrow and print as much currency as it wanted.
This has gradually led to the value of our currency
(16:40):
being eroded.
Speaker 9 (16:43):
With the creation of all this money that dilutes the
value of all of the dollars that were out there before,
so that the purchasing power of the dollar gets crowded down, down, down,
And we used to be able to buy a gallon
of gas for thirty one cents. Now it's hitting around
five dollars.
Speaker 2 (16:59):
The average in the street is affected by inflation because
of the loss of purchasing power, and as a consequence,
his standard of living is declining.
Speaker 5 (17:07):
If he can't keep up with the inflation rate.
Speaker 7 (17:10):
And many measures of a standard of living Americans today
are actually worse off. You can take my grandparents. My
grandmother never worked despite the fact that my grandfather was
a carpenter and they had eight children. I could a carpenter,
somebody without even a high school diploma, just working in
a blue collar job support a wife and eight kids. Today,
(17:32):
not a chance.
Speaker 3 (17:37):
With inflation rising faster than incomes, people were forced into
more and more drastic measures to maintain their standard of living.
With each new day, the work of a family begins again.
Speaker 4 (17:52):
We went off goldbacking of the dollar. What used to
happen prior to that is the husband went to work,
the wife stayed at home raise the family. Because of
inflation in the seventies, the wife went to work. So
now you had two incomes that were necessary to produce
and buy the same goods and services. In the nineties,
(18:13):
we stopped saving. The savings rate basically got down to
zero because people were spending. They couldn't save in order
to buy the same goods and services. Then we got
to the last decade, the wife was already working, the
savings were down to zero. They borrowed money, and so
we've gone from two earners getting rid of our savings
(18:36):
rate to borrowing money to keep pace with inflation.
Speaker 3 (18:41):
The average person is now forced to borrow well beyond
their means, getting themselves deeply into debt. At first, this
was to maintain a nice standard of living, but slowly
it has become necessary just to survive. By printing so
much currency and devaluing it so heavily, it would seem
(19:02):
that governments are essentially levying a hidden tax on their people.
Speaker 11 (19:09):
Central banks try to say that two percent or three
percent inflation is a good thing, and they make that
a target.
Speaker 5 (19:16):
Well, it's still a tax.
Speaker 11 (19:18):
Why is two percent inflation or three percent inflation better
for the country than no inflation? You will be told,
of course, that's beth and deflation. And you'll be told
that people like to feel that their money or their
jobs or their wages are going up by two percent.
At least it's something with the fact that two percent
(19:39):
is robbery and what they get is going down by
that amount.
Speaker 12 (19:43):
We are experiencing inflation these days. I mean, yeah, they
say the CBIs of whatever is two or three percent.
I mean, anybody who's alive knows that inflation is well
beyond that, probably running double digits.
Speaker 3 (19:56):
The purchasing power of the average person has been deteriorating drastically,
but in order to disguise this, governments have been skewing
the figures and their reports to make it seem as
if inflation is much lower than it really is.
Speaker 11 (20:12):
There is this curious distinction made which most people don't understand,
between core inflation and headline inflation. The core inflation is
a basic two percent target which doesn't matter, and the
headline inflation is once you include all sort of things
like energy prices and sudden tax rates.
Speaker 2 (20:32):
Is and the risk, well, the inflation rate is skewed.
They use all kinds of contrivances to make the inflation.
Speaker 5 (20:38):
Rate look lower than what it really is.
Speaker 2 (20:41):
If the US government were using the same CPI model
that they did when President Carter was in the White
House in the late nineteen seventies. The inflation rate today
in the United States will be nine or ten percent.
That's how badly the currency is being debased now. The
reason why they do that is there a lot of
inflation adjusted responsibilities that the US government has to pay
out money to. You know, for example, people on the
(21:02):
Social Security system on an inflation adjusted basis.
Speaker 5 (21:06):
If they keep the.
Speaker 2 (21:07):
Inflation rate low according to their own statistic, that means
they're paying out less. That means a government budget deficit
is less.
Speaker 13 (21:16):
A thriving metropolis, Toledo is one of the world's greatest
glass processing centers in Akron, the state's fifth largest city.
That story deals primarily with rubber. Akron is the rubber
manufacturing capital of the nation and the world. Her very
name is synonymous with rubber.
Speaker 3 (21:35):
In a global economy where currencies are measured only against
each other, countries are able to artificially lower the value
of their own currency, making their industries more competitive. A
country with a weak currency can make products cheaper, causing
entire industrial centers to move overseas. This effect has been
(21:56):
seen countless times in cities around the world, some of
which still haven't recovered from the loss of their industrial base.
Speaker 4 (22:06):
I think the guy on the street, he's kind of frustrated.
They go, gosh, I went to college, I don't have
a job. I can't get a job. I spend all
this money. I've got student loans. It's costing me more
to live. The FED is telling me there's no inflation.
Yet I go to the store and I see the price.
Speaker 5 (22:22):
Of milk going up, eggs, meat.
Speaker 4 (22:24):
I pull into a gas station. It's costing me more
for gas. They don't really understand how all this affects
him on a personal level. And that's why I think
they're frustrated because there isn't an educational system that explains that. Look,
when you print money when you have nothing backing in,
and when you debase it, you have all the side
effects that you see, higher inflation, costs, corruption, cronyism, all
(22:50):
the things that would have been in headlines that we've
seen over the last four or five years.
Speaker 9 (22:55):
The protest movements are an interesting phenomenon. A lot of
people are terribly upset with Wall Street. They're upset what's
happening to their purchasing power. They're upset with the news
that they hear of the fact that the executives of
these giant banks are getting million dollar bonuses at the
same time they're dipping into the pockets of the taxpayers
(23:17):
to get all this bailout money, and so they're they're angry. Unfortunately,
people are demonstrating against the crisis, the economic crisis, and
yet at the same time, they're demanding more welfare, demanding
more medical benefits, They're demanding more state control and regulation
of their lives. They're demanding more money being created and
(23:38):
pumped into the society. They don't realize that those are
the very things that are brought them onto the street
in the first place, in their anger.
Speaker 3 (23:49):
While the person on the street is struggling to get by.
We're told that what we're experiencing is a typical recession.
Why then, does this current crisis feel different to previous
economic recessions.
Speaker 7 (24:03):
This is far from typical. I think this is the
end game. I think what we're experiencing now are the
pains of the forty year experiment in fiat currency coming
to an end, and it is an absolute failure, not
only for America but for the entire world.
Speaker 3 (24:21):
Up until two thousand and eight, we've been borrowing more
and more money to maintain our standard of living. Are
we now at the point where we're maxed out and
cannot take on any more new debt?
Speaker 4 (24:35):
What we're seeing today is deleveraging at all levels of society.
I mean, consumers are maxed out. Each succession that we
had in the economy, when we went through this boom
and bus period, we'd go through a bust, they would
reinflate again, the economy would start up again, but we
kept piling on, piling on, piling on levels of debt,
(24:57):
and finally we reached the point where you just can't
pile any more debt.
Speaker 3 (25:02):
Banks are no longer willing to give out credit so freely,
and many people are more concerned with paying off existing
debt as opposed to taking on new debt. While this
is prudent, sensible behavior, it's also a serious threat to
the global economy. Having set itself up as a giant
Ponzi scheme, the global economy is reliant on more and
(25:25):
larger debt being issued to keep itself functioning.
Speaker 8 (25:30):
If you try to just live within your means and
get by with just the amount of dollars that we
have today, paying the interest on them collapses the currency supply,
and so we continually have to borrow more units of
currency into existence every month than we extinguish by paying
off debt.
Speaker 2 (25:51):
The system as it's been presently structured, is that they
have to continue expanding the money supply, otherwise the system
is going.
Speaker 8 (25:58):
To Dieitions and pundits talk about living within our means
and paying down the debt. You can't do that without
collapsing the entire economy. It would just vanish into this
black hole.
Speaker 12 (26:12):
All the politicians are in a situation where if they
don't come to the rescue, we could just have an
overnight shutdown, which they can't ever imagine happening while they're
in power. So there's always this wish to move it
on and kick as you know the expression kick the
can down the road, which is really what we're doing.
Speaker 7 (26:29):
But the problem is we've run out of road. You know,
there is no place to kick the can anymore. But
we've got to deal with the can. And it's not
simply a can, because every time we kicked it down
the road, unfortunately it got bigger. So now it's an
enormous can, and you know it's going to crush US.
Speaker 3 (26:46):
While the financial crisis of two thousand and eight may
have been the first death throws of the Ponzi scheme,
governments around the world weren't about to sit back and
let it fail, so they delayed the inevitable collapse, pushing
it down the road by bailing out struggling financial institutions,
buying toxic mortgages, and taking on debt on behalf of
(27:08):
its citizens.
Speaker 14 (27:13):
In two thousand and nine. In twenty ten, what happened
was the crisis was papered over through bailouts, guarantees, money printing,
expansion of the money supply et ce.
Speaker 4 (27:23):
Governments can do that.
Speaker 14 (27:24):
I mean, don't underestimate the ability of governments to dictate
results in the shirt run. But in the long run,
none of the problems are solved. The bad debts are
still there, the banks are still insolvent, the banks are
not landing, the economy's not growing, So we haven't really
solved anything.
Speaker 9 (27:39):
By buying their way out of these crises, by creating
money out of nothing and flooding it into the economy
and diluting the purchasing bomber, they're not really solving the problem.
What they're doing is pushing it off a little bit
into the future and making it worse.
Speaker 14 (27:52):
Now do we keep going down this road? Do we
print more money? I mean, the Fed balance sheet went
from eight hundred billion to three trillion. Should it now
go to six trillion? We had a eight hundred billion
dollar stimulus. Should we now have a two trillion dollar stimulus?
I mean, in theory, you could, but this is where
people could lose faith entirely in they and the currency
could collapse.
Speaker 3 (28:13):
The Federal reserves money printing exercises may help prop up
the economy in the short term, but what are the
consequences of money printing on such a large scale.
Speaker 7 (28:27):
I think you're going to see a very rapid decline
in the value of the dollar in a matter of days,
whether it's twenty percent, thirty percent, forty percent. A lot
of people have been buying the dollar as a safe haven,
you know, when they find out that there's no safety there.
In fact, they need a safe haven from the dollar.
I mean, right now, the dollar is benefiting from the
(28:47):
fear trade. Well, what if the fear trade is afraid
of the dollar.
Speaker 3 (28:52):
Aside from causing an enormous amount of inflation, the Federal
reserves reckless money printing exercises also run the very real
risk of creating a worldwide loss of confidence in the
US dollar.
Speaker 14 (29:06):
I think a currency crisis is highly likely, but it'll
be very difficult to know exactly what will cause it
and win. I think it'll be something unforeseen. It could
be a natural disaster, it could be a political shock,
it could be just a general loss of confidence.
Speaker 4 (29:21):
It could be something as simple as a treasury auction
that goes bad. There's no buyers, and all of a sudden,
the interest rate starts to go up. Then the financial players,
the big hedge funds, start to react to a dumping dollars.
Then all of a sudden, you have foreign central banks
that begin dumping dollars.
Speaker 5 (29:40):
Get me out.
Speaker 4 (29:40):
And when that happens, just like that.
Speaker 7 (29:43):
At some point, just like all Ponzi schemes, the participants
wake up to the con they don't want to participate anymore,
and the whole thing implodes. Now you know when private factors,
when people who are voluntarily participating foreigners, foreign central banks,
when they stop buying. The one difference is the Federal
Reserve can come and supply the demand for the people
(30:06):
who are waking up to the Ponzi nature of what
we're doing. But of course, when the FED becomes the
only buyer, that's the endgame, or be the beginning of
the hyperinflation.
Speaker 2 (30:17):
Hyperinflation is a rapid increase in the inflation rate, so
much so that people lose faith in the currency. And
you see what is in effect a flight from the currency.
Speaker 15 (30:29):
Defeated Germany as a runaway inflation in Germany, the mark
becomes so worthless it is used to paper walls or
the light stoves.
Speaker 2 (30:41):
What happens is the government spends so much money, forcing
it to borrow.
Speaker 4 (30:45):
It gets to the stage.
Speaker 2 (30:47):
Where it's borrowing more money than the market is willing
to lend to it. The central bank then steps in
and turns that government debt into currency.
Speaker 11 (30:56):
The great question is, and I didn't know the answer,
is what level of infletion five ten percent do start
to panic? All I know is when that level comes,
everybody panics together.
Speaker 2 (31:10):
Consequence of a hyper inflation is the price of goods
and services rises very very rapidly, and that feeds upon itself,
causing people to get rid of the currency even more quickly.
Speaker 10 (31:20):
So you then have a situation where people go out
and they buy things just to get the hell out
of paper money, and paradoxically that then starts driving an
accelerating demand for paper money because they want more paper
money to come buy things. So you have the situation
where the value of paper money starts collapsing in advance
of its issue.
Speaker 4 (31:39):
In everyday life, you'll be scrambling from day to day
to get tangible things. If you're thinking of buying one
can of tuna, you're going to buy two because you
know that tomorrow or even later on that day or
the next hour, that canatunas can be costing you more.
That you're going to be scrambling to get anything that's tangible.
Speaker 7 (32:00):
This period is going to involve a lot of economic pain.
A lot of people who are currently retired in America
are going to have to get jobs. Their retirement is gone,
it's been bankrupted because they put their faith in a
Bernie Madoff type national Ponzi scheme. And of course a
lot of the property is going to decay. If people
(32:23):
are spending money on the necessities, they don't have money
to make the repairs necessary to maintain their properties. If
the landlords can't collect rents from their tenants, how are
they going to maintain their properties, how are they going
to pay the taxes? So I think the whole economy
is going to crumble beneath the weight of this runaway inflation.
And of course the initial reaction by the FED will
(32:46):
be to create even more inflation, to try to stimulate
the economy by printing even more money, which of course
is the source of the problem.
Speaker 3 (32:54):
On the surface, it would appear that this is a
problem facing the United States alone, but with so many
countries holding their savings in US government bonds, a loss
of confidence in the US dollar could trigger a global crisis,
which would affect every nation on Earth.
Speaker 5 (33:14):
If the US dollar hyper inflates.
Speaker 2 (33:16):
The implications are really profound because you can go to
a country like Zimbabwe and see the impact of a hyperinflation.
But what happens when the world's reserve currency hyperinflates. We've
never been in this situation before. It's impossible to predict
what the outcome is going to be, but logic suggests
that if the US dollar hyperinflates, most, off not all,
(33:36):
of the currencies of the world will also have severe
economic problems, because at the end of the day, the
reserves of all of these currencies are basically dollars. There
(34:02):
have been dozens and dozens of currency collapses since the
end of the Second World War, and they all result
from the same thing, you know, bad policies, bad management,
and the US right now is pursuing bad policies, central
bank is doing a bad job managing their currency. As
a consequence, it's inevitable that the dollar is going to collapse.
It's on this road that I call the theat currency graveyard.
Speaker 10 (34:26):
The market is the private sector, however you like to
decide it. People they suddenly sort of move in a
herd instinct, they suddenly sort of understand things. And this
can happen overnight. I mean, it really can. So the
timing of this is I think very difficult, if anything,
impossible for us to say. But I would point out
that there is the danger that I use a metaphor,
(34:47):
one morning we will wake up and find that we
are in a very different world. It may not be
one morning, it may be a week, a month, I
don't know. But when it happens, I think it will
happen quite quickly, and we won't really be able to
predict when.
Speaker 3 (35:01):
Hyperinflation may be one of several scenarios facing the world today.
But history has shown us that whenever a nation tried
to run its economy using an artificial fiat system, the
end result is always the same disaster.
Speaker 8 (35:18):
There is a proven one hundred percent failure rate. There
is no exception to this. Fiat currencies always fail. And
then forty years ago we tried this grand experiment where
all the world's currencies became feat at the same time
when we ended the Breton Woods system.
Speaker 7 (35:35):
The world is going to have to extricate itself from
this monetary system based on the dollar, because if you
want to back your currency, you have to back it
with something. You can't back it with nothing. You always
think of that old Superman movie where the first one
where Lois Lane, she falls off the top of the
building and Superman catches her and he says, I got you.
(35:56):
Don't worry, I got you, And she says, well you
got me. Who's got you? Well, that's the dollar. Who's
got the dollar? It's not Superman. The dollar can't fly
on its own. The dollar used to be backed by gold.
It was gold that had the dollar. It's like everybody
has tethered their ships to the Titanic of currencies, and
so we're all going to go down.
Speaker 8 (36:16):
If there is a loss of confidence in the US dollar,
and I think there will be in this decade. It's
happened before, it'll just be history repeating.
Speaker 5 (36:25):
Then we'll probably.
Speaker 8 (36:26):
Have to go back to something that will instill confidence,
and what instills confidence is gold.
Speaker 9 (36:32):
The only real solution is to go back to a real,
sound currency, real money with something behind it. It doesn't
have to be gold or silver, but historically that has
always been what societies have chosen through trial and error.
They've tried this, they've tried that, they always wind up
with gold or silver. I think that probably is a clue.
(36:52):
That's not a bad way to go.
Speaker 3 (36:55):
With all the uncertainty facing the world today, a return
to a old backed economy would seem logical. So how
come there isn't so much as a discussion about such
a return. The answer is as simple as it is alarming.
The people at the top, the ones who have been
benefiting from the current Ponzi system, don't want the ride
(37:17):
to end. Many now believe the price of gold and
silver have been artificially suppressed to make it seem less
desirable as a unit of global exchange.
Speaker 2 (37:29):
What governments try to do is to maintain a low
gold price, because by doing that, it makes the dollar
look worthy of being a world's reserve currency, when in
fact we know the dollar is not worthy of that
esteemed position because it's being so badly mismanaged by the
United States.
Speaker 3 (37:47):
Groups like the Gold Anti Trust Action Committee or GATTA
have been tracking what they believe is the deliberate suppression
of gold and silver prices through a variety of dubious means.
Speaker 16 (38:00):
In twelve years, we've amassed nothing but evidence of that
supports the manipulation of goal price. Mu's be like talking
about a murder trial when the jury would say guilty
beyond a reasonable doubt, But you know you've got to
present each point of evidence and how it all fits together.
Speaker 8 (38:15):
There are numerous methods that they used to suppress the
price of gold. Some are harder to prove than others,
but some of them are fully reported.
Speaker 5 (38:22):
In That's Central Bank sales.
Speaker 3 (38:25):
Between nineteen ninety nine and two thousand and two, the
Bank of England foolishly sold a massive amount of Britain's
gold reserves at an average price of two hundred and
seventy five dollars an ounce. The proceeds were spent buying
euros and US dollars. The governments of Canada, France, and Switzerland,
among others, were also sellers of their gold.
Speaker 12 (38:47):
Around this time, we know that the central banks used
to sell four hundred tons every year. Well, why were
they selling four hundred tons? Obviously it was the dumbest
decision anyone could have made in the decade, by far
the dumbest, but they did it every year, sell four hundred,
sell four hundred. I mean, now you know gold goals
from three hundred to sixteen hundred, almost seventeen. Or why
were you selling the gold? Because they were trying to
(39:10):
keep the price down. So it was a coordinated thing
to keep everyone focused on believing in currencies.
Speaker 8 (39:18):
Alan Greenspan, in testimony to Congress, admitted that they were
manipulating the price of gold when he said, the world's
central banks stand ready to lease gold in increasing quantities,
meaning they were already doing it should the price of
gold rise, meaning the target was to suppress the price
of gold. So they were already doing it, and their
(39:40):
target was to suppress the price of gold.
Speaker 5 (39:42):
He admitted it in testimony to Congress.
Speaker 3 (39:45):
Although central banks are able to sell off their country's
gold holdings legally, they may have also been suppressing the
price of gold using some other rather questionable means. Some
investigators believe that Western central banks have been loaning their
country's gold to bullion banks. A bullion bank is an
institution that sells gold with the intention of buying it
(40:08):
back sometime in the future at a cheaper price. With
the proceeds of this sale, these banks have been known
to buy US government bonds. While this isn't a problem
in itself, central banks report the gold they have and
the gold they've loaned to these bullion banks as one item.
(40:28):
So while a central bank may claim it has a
certain amount of gold and reserves, much of that gold
may be on loan to a bullion bank, which may
have sold the gold in exchange for government bonds.
Speaker 17 (40:41):
One means of intervention in the gold market is the
lending of gold to so called bullion banks, and they
sold in the market. This is a suppresses the price
as if the central banks would sell it directly, But
this landing does not appear in the book the central banks.
Speaker 8 (41:01):
The US Treasury a few years ago changed the way
they account for gold, and they're accounting for some of
their receivables and their inventory as one line item. So
they're accounting for what they actually have and what people
owe them as the same thing.
Speaker 5 (41:19):
And that is basically illegal accounting. It's fraudulent.
Speaker 3 (41:23):
But why work so hard to keep the price of
gold and silver low? Why do healthy gold and silver
prices threaten to collapse? The Ponzi scheme.
Speaker 2 (41:33):
There's this competitive relationship between gold and national currencies because
gold is the only competitor to a national currency. You know,
gold is money, and these national currencies are money substitutes
that circulate in place of gold.
Speaker 7 (41:49):
If you have money gives the power to government. Real
money keeps the power with the people because when you
have real money, government is limited. It can only spend
what it taxes, and the public will resist taxation. But
if the government can simply print and borrow, there's a
lot less resistance, and so it's a lot easier for
the government to grow when it can promise something for nothing.
(42:12):
And so that's what they do. And so gold is
what protects the people from the reckless policies of government.
Gold is the government chaperone. The government wants to be
able to do whatever it wants. Gold stands in its way.
So yes, gold is an enemy a big government, but
it's a friend of freedom. It's a protector of individuals
from government.
Speaker 16 (42:32):
Goal is a competitor to the dollar, and when it's
going way up, it's a threat for inflation. It's a
barometer of the well being of the Isaac. Look at
gold screaming now and the world's falling apart. So it
calls attention to how bad things are. So the US
government has an interest Wall Street, the politicians to keep
the price suppressed.
Speaker 4 (42:50):
Wall Street doesn't want you going down to a coin
dealer buying gold and silver coins. They want to sell
your paper. The government wants to sell your paper. So
I would say it's the government and Wall Street.
Speaker 2 (43:02):
Gold and hands of people is the way you can
control government. Governments cannot create money out of thin.
Speaker 5 (43:08):
Air if it's gold.
Speaker 2 (43:09):
They can only create paper out of thin air. And
if they can create paper out of thin air, they
can use that paper to wage wars, or they can
use that paper as a political contrivance to enrich their friends.
And as a consequence, governments have been fighting gold all
century long.
Speaker 3 (43:29):
Despite this desire to keep gold and silver down. The
recent instability in the markets has seen the demand for
gold and silver skyrocket. This in turn has exposed a
deeper problem within the central banks.
Speaker 10 (43:44):
The problem with central banks in the West now face
is that they have sold an awful lot of gold
to try and suppress the price of gold. They are
now embarrassed by the fact that central banks not in
that original cartel are now really very keen buys of gold.
And we're talking about the Chinese, we're talking about the Russians,
(44:04):
we're talking about.
Speaker 5 (44:05):
The Indians, we're talking about eating Mexico.
Speaker 10 (44:08):
All these non mainstream central banks not part of if
you like, the top club members of the Bank of
International Settlements, you know, the little guys in that context,
they're picking up hundreds of tons of the stuff.
Speaker 3 (44:22):
To suppress the price of gold. Western central banks have
had to sell or loan out their country's gold holdings.
But because the gold they sell rarely leaves their vaults,
no one can be certain they aren't selling or loaning
out more of gold than they physically own. If this
is true, then this could be one of the biggest
(44:43):
scams ever perpetrated in history. A massive Cohn perpetrated not
by individuals but by entire governments.
Speaker 8 (44:53):
The central bank gold most of it sits at the
New York feder Reserve and the Bank of England, so
it's in the basement of these two places, and it
doesn't actually move. When a country is doing international settlement,
they basically take a bar off of this pile and
put it on that pile, or.
Speaker 5 (45:07):
They'll just change the labels, or it's just a book entry.
Speaker 8 (45:10):
It's accounting, except there's been some pretty creative accounting on
all this goal and I doubt very much that I
don't think all of it is there.
Speaker 9 (45:21):
The question remains if everybody, especially the big players, wanted
all their gold delivered at the same time, it is
physically impossible to do it.
Speaker 8 (45:31):
Most gold that exists on the planet, there's more than
one claim on each ounce of gold. There's several people
that think that they have titled that same ounce of gold.
I am have said many, many, many times over and
over again. If you can't hold it, you don't own it.
Speaker 9 (45:48):
The game can't go on forever because sooner or later
people are going to demand their physical gold or sober.
Speaker 5 (45:54):
And that already is happening.
Speaker 3 (45:56):
The lack of accountability in gold sales by Western central
banks hasn't been a concern so far, but as more
and more buyers of gold have started to demand physical delivery,
central banks that have over sold or loaned out their
country's gold will find themselves caught in a major scandal.
The result of such fraudulent activity means buyers of gold,
(46:20):
be they individuals, pension or hedge funds, or even entire nations,
could be ripped off for billions of dollars.
Speaker 16 (46:29):
It's a little similar than the Murdoch scandal here at
Fox News in London, of the made Off scandal, I mean,
it's a very incestious relationship between press, big money and
the politicians, and unfortunately these things don't get correct until
they blow up. Made Off blew up, Murdoch blew up.
The gold market is going to blow up, and I
(46:49):
think will be a bigger scandal than either of them,
because it's a worldwide financial situation.
Speaker 9 (47:01):
The only trick that the politicians in power today know,
and the central banker, the only trick they know is
to create more money out of nothing to inflate the currency.
They have no other trick. So as long as we
keep looking to them to be our leaders and solve
the problem. How can we expect anything else. That's the
only trick they know, because the only other trick there
(47:25):
is is to stop inflating and to go back to
a sound currency, and that would say they say, oh no,
we can't do that. And the reason they can't do
that is because it would put them all out of business.
They wouldn't be able to continue the Ponzi scheme.
Speaker 3 (47:39):
Even with cracks forming in the current financial system. The
only solutions offered by governments are in fact just more
steps down the road to disaster. But while a single
person may not be able to save the world, there
is still something you can do to protect your family
and yourself.
Speaker 9 (48:00):
You cannot turn to a ponzi schemer and ask him
to run a real business because he doesn't know how.
So you can't turn to all of these ponzi schemers
in government who are inflating the currency and say, well,
let's solve the crisis in some other way, because they
don't know how. So the solution is to quit depending
(48:22):
on the same people with the same mentality to solve
our problems.
Speaker 7 (48:27):
If governments won't go back on a gold standard individuals
can go back on the gold standard all by themselves.
Politicians can create fiat money at will.
Speaker 5 (48:36):
That's why it's fiat.
Speaker 7 (48:38):
So why would you want to put your faith in that,
put your trust in politicians and bureaucrafts and central bankers
when you can just have something real that has intrinsic value,
that is scarce and that is going to remain scarce.
Speaker 12 (48:52):
Would you rather have gold or a fiat currency? And
we see what's happening in the world, and obviously people
are starting to figure out that gold is likely to
sustain its value way more than a piece of paper is.
Speaker 9 (49:06):
It's not that the price of gold is going up,
it's that the value of the dollar is going down.
The price remains constant. In terms of human effort and
purchasing power. An ounce of gold today will buy the
same thing it bought two thousand years ago. An ounce
of gold today is approximately takes so much human effort
to get out and refine the same human effort that
it took to do certain things two thousand years ago.
(49:28):
It's the human effort equation that maintains stability. How much
effort does it take?
Speaker 4 (49:33):
Gold is financial insurance. And the thing about it is.
You own it because you want to be protected, and
you know you just have to have it if you
want to have or sleep that night, because there's nothing else.
If some catastrophic event happens, and we've seen them.
Speaker 5 (49:55):
How are you going to be protected?
Speaker 3 (50:02):
The current financial system may be dying, but where there
is chaos, there is also opportunity. As the old model
falls apart, the door may be opened for great prosperity.
Speaker 7 (50:15):
It's clearly not the end of the world. I mean,
it's probably not even the end of America. For many countries.
This is going to be the beginning of an economic boom,
a giant burden being lifting off their shoulders, where the
world no longer has to loan trillions of dollars to
Americans so that we can continue to consume what we
don't produce. When this comes to an end, the world
(50:39):
will benefit. So it is not something that we should fear.
We should embrace it. As a world.
Speaker 8 (50:45):
This is the greatest wealth transfer in history.
Speaker 5 (50:48):
If we have a global.
Speaker 8 (50:50):
Currency crisis, then you're going to see a greater wealth
transfer than has ever happened in all of history. It's
all going to happen at once. Therefore, it's the greatest opportunity.
Speaker 9 (51:02):
We have millions of people now taking an interest in
what is money, the question of what is money, what
should it be? And their learning, especially a lot of
young people.
Speaker 3 (51:20):
The sun will rise tomorrow as it has a million
times before. Commuters will wake up and travel to their
offices to begin the day's work. Farmers will tend to
their crops, and construction workers will build new infrastructure. But
will the world they live in still be the same?
In two thousand and eight, the world was given a
(51:42):
wake up call. The biggest financial crash in human history
was delayed by the same poor decisions that brought it
about in the first place. What that massive bailout bought
us was not a solution, but merely time. Time for
the people responsible to bring the last few dollars out
of dying system, but also for those able to see
(52:04):
the cliff edge approaching, Time to protect themselves and their
families from the imminent plunge, and in the end that
time may prove to be the most valuable commodity of all.
Speaker 8 (52:17):
There are these brief moments in history where the safe
haven asset for the last five thousand years simultaneously becomes
the asset class that has the greatest single potential gains
in purchasing power. We're in one of these cycles right
now where money is the best investment. Get out of currency,
(52:41):
buy money, and you're probably going to be able to
buy a whole lot more stuff later.
Speaker 5 (52:50):
But the best thing that people can do of.
Speaker 8 (52:52):
All is really to take on their own responsibility for
getting financially educated. This is the most important thing. Don't
let the banks and the brokerage houses and other people
guide all of your decisions.
Speaker 5 (53:05):
Find out what's going on for yourself. Empower yourself,
The strength of a nation's currency is based on the
strength of that nation's economy, and the American economy is
by far the strongest in the world. Accordingly, I have
directed the Secretary of the Treasury to take the action
necessary to defend the dollar against the speculators. I have
directed Secretary Connolly to suspend temporarily the convertibility of the
(00:22):
dollar in the gold or other reserve assets, except in
amounts and conditions determined to be in the interest of
monetary stability and in the best interests of the United States.
Speaker 2 (00:34):
August fifteenth, nineteen seventy one will stand as an important
event in economic history for many, many generations. In fact,
hundreds of years from now, people will look back to
that day.
Speaker 3 (01:23):
The sun rises today as it has a million times before.
Commuters wake up and travel to their offices to begin
the day's work. Farmers tend to their crops. Instruction workers
build new infrastructure. Today is a day like any other,
or is it. In two thousand and eight, the world
(01:45):
experienced one of the greatest financial turmoils in history. Markets
around the world started crashing, and major financial institutions, once
thought to be invincible, started showing signs of collapse. Uns
responded quickly, issuing massive bailouts and stimulus packages in an
effort to keep the world economy afloat, and it worked.
(02:09):
The global economy recovered much quicker than most predicted, and
soon it was back to business as usual. And yet
something still isn't quite right. A growing sense of unease
fills the population in the world of finance, indeed, in
all facets of modern life, cracks have started to appear.
Speaker 4 (02:32):
There's angst out there, and I think if you talk
to people on the street.
Speaker 5 (02:35):
Today, they would tell you, I don't.
Speaker 4 (02:37):
Know what's causing all this, but this just doesn't feel
normal to me. You know, the government's running at trillion
dollars worth of deficit. Why isn't the economy improving? The
government's going to spend almost three point seven trillion dollars.
Why don't I have a job? Why is the unemployment
rate at nine percent? And I even think that number
(02:58):
is understated.
Speaker 3 (03:00):
A lot of people are feeling unsure about the world today,
concerned that something terrible is waiting in the wings. We're
told that the global financial crisis of a few years
ago has been fixed, But what if the crisis isn't
the cause of the angst so many of us feel,
but rather the symptom of a much deeper problem.
Speaker 6 (03:27):
At Bretonwood's New Hampshire, delegates from forty four Allied and
associate countries arrived for the opening of the United Nations
Monetary and Financial Conference.
Speaker 3 (03:37):
Our story begins in nineteen forty four. With World War
II coming to an end, the Allied Nations met at
breton Wood's New Hampshire to create a new financial system
which would stabilize the world once the war ended. With
America poised to enter a golden age of prosperity, the
US dollar was chosen as the world's reserve currency.
Speaker 2 (03:58):
That breton Wood system created after the Second World War
at the Brentwoods Conference in New Hampshire, and rather than
using gold as the means of exchange between countries, as
was the case under the old Gault standard, the dollar
was going to be used, and the dollar was chosen
because back then it was as good as gold.
Speaker 3 (04:18):
Under this new system, countries agreed to fix their currencies
to the US dollar, and the US dollar would be
tied to gold at a price of thirty five dollars
per ounce. This meant that countries around the world could
trade their currencies for US dollars, which they could then
exchange for gold. This created a system where all currencies
(04:40):
were essentially backed by gold to avoid the logistics of
shipping physical gold across the world. When countries did exchange
their currencies for gold, it was usually stored safely in
the US.
Speaker 4 (04:55):
Under the Bretonwood system, you could exchange your currency or
your dollar for gold, now only applied to foreign countries
and central banks, and we began to run budget deficits.
We were running the Great Society Program under Lyndon Johnson,
and we were fighting a war in Vietnam, and all
of a sudden, we were running these deficits, and countries
were changing their dollars and they say they wanted gold.
(05:18):
It began with the French, and then it started to spread.
Speaker 3 (05:22):
With all the new spending programs in the United States.
Other countries became concerned that the US was spending more
money than it had gold reserves. They started exchanging their
dollars for gold and demanded physical delivery, as they felt
that there were more dollars being printed than the gold
that backed it. To prevent this outflow of gold from
(05:43):
American vaults, President Nixon called for an emergency suspension of
the gold convertibility system.
Speaker 1 (05:53):
I have directed the Secretary of the Treasury to take
the action necessary to defend the dollar against the speculators.
I had directed Secretary Connolly to suspend temporarily the convertibility
of the dollar in the gold or other reserve asset.
Speaker 2 (06:09):
All of the problems that we see today in the
monetary system are a direct result of the decision made
in August fifteenth, nineteen seventy one, to abandon fixed link
back to gold. What gold did is it provided discipline
on governments, provided discipline on government spending.
Speaker 4 (06:26):
Under the old system, if you ran a budget deficit,
then what would happen is gold would flow out of
your country until there was a balance again. Well, without
any gold backing, then countries ran perpetual deficits. So if
you look at, for example, this country from nineteen seventy
one on, the US has never run a surplus ever
since we went off the gold standard, it's just been
(06:48):
perpetual stimulus, good times, bad times, always run a deficit.
Speaker 7 (06:53):
What led Nixon to abandon the gold standard in nineteen
seventy one, and although he claimed it was temporary, forty
years we're still off of it. We ran up huge
deficits during the nineteen sixties. We had the guns and
butter economy, where the government was both simultaneously fighting a
war in Vietnam abroad. In addition, we were funding manned
(07:16):
missions to the Moon in the whole space program. We
were creating more money than we had gold reserves to
back it up, and a lot of our foreign creditors
saw this and began to demand gold rather than their
federal reserve notes because they sensed that Washington simply didn't
have enough gold to make its commitment to back the dollar.
Speaker 3 (07:40):
By removing the link between gold and the US dollar,
President Nixon created a system where all currencies were backed
by nothing. This is what is known as a fiat currency.
Speaker 2 (07:52):
Fiat currency is currency that's backed by nothing except government promises.
The word fiat is a Latin word, and it basically
means currency that's circulating by force, if people have confidence
in that currency, and if there's enough government force that
will enable the currency to circulate for a period of
time until people lose confidence in the currency.
Speaker 8 (08:13):
There is no nation on this planet that currently uses money.
We all use currency. There will come a day when
everybody knows the difference.
Speaker 9 (08:23):
Money is a medium of exchange, and the way it
has evolved is that it's always something of intrinsic value,
until the modern age, when the politicians say, well, we
don't need anything of intrinsic value anymore. All we need
is political decree. We can say this is money, this
piece of paper is money. Now money has a new
characteristic But underneath it all there's this same concept in
(08:45):
place that nobody ever seems to challenge, and that is
that governments have a right to declare something of no
value to be money, and you must accept it.
Speaker 7 (08:54):
That's really the.
Speaker 9 (08:55):
Problem, and it's still the problem today. It's destroying the
economies of the world.
Speaker 3 (09:00):
With currencies no longer backed by anything real or tangible,
their value was measured only in relation to each other.
And because countries with relatively weak currencies can make products cheaply,
countries devalue their own currencies to make them desirable trading partners.
Speaker 10 (09:19):
Every paper currency measures itself against the dollar, so if
the dollar go is done, the other central banks respond
to that and they try and intervene in the foreign
exchange markets to ensure that the impacts doesn't hit their
domestic economies.
Speaker 3 (09:36):
What is a ponzi scheme? A ponzi scheme is a
fraudulent investment scheme that promises high returns for investors with
little or no risk. Sounds too good to be true, right,
That's because it is. In a legitimate investment scheme, the
money invested is used to build wealth, typically through low
risk ventures like stock or real estate portfolios. Time this
(10:00):
generates enough income to pay the investor back their initial
investment plus some profit. A ponzi scheme, on the other hand,
promises massive returns quickly. How does it accomplish this? Instead
of using the money invested to build wealth, a ponzi
scheme simply brings in more investors to pay off the
previous investors. And because these new investors have also been
(10:23):
promised large returns, the scheme must then find an even
bigger group of investors to pay them off. All the while,
the creators of the scheme are skimming cash from each
group of investors. Because a ponzi scheme doesn't generate any
wealth itself, it must constantly bring in larger and larger
groups of investors to keep functioning. Eventually, no more new
(10:46):
investors can be found, or large numbers of previous investors
all cash out at the same time, and the scheme
collapses in on itself. By this time, the perpetrators of
the scheme have siphoned off tremendous amounts of money for themselves,
while the investors are left out of pocket and out
of luck. Without a fixed link to gold, the US
(11:11):
Treasury has been able to borrow and spend as much
money as it wanted. When the US government needs money,
it takes out a loan with the Federal Reserve. The
Federal Reserve prints the currency required for the loan and
in return receives an IOU from the US Treasury. These
IOUs are called government bonds. With the money provided from
(11:35):
these loans or bonds, the US government pays its bills
and obligations. Meanwhile, the US Treasury and the Federal Reserve
work closely together to sell these bonds at auction, where
foreign central banks, pension funds, and even individuals buy these
US government loans, and why wouldn't they. Loaning money to
(11:56):
the US government is virtually a risk free investment. But
if the loans are spent on bills and paying off
previous loans, where does the government get the money to
pay back the current loan and the interest that is
charged on it is investing in a US government bond
simply one small part in a giant Ponzi scheme.
Speaker 9 (12:19):
The Federal Reserve system is definitely a Ponzi scheme, There's
no question about it. They go through the appearance of
lending money to the governments, and the governments agree to
pay back the money plus interest, and so this money
comes into being. They create it just for that purpose.
They give it to the governments. Didn't exist before that,
you understand, central banks just make it out of nothing
(12:42):
and click a few keys on a keyboard of a computer,
and the Treasury of the United States government now has
another trillion dollars that it can spend. That's where that
money came from. And so that creates a liability on
the part of the federal government to pay it back
plus interest. Now think about that plus interest. Well, when
it comes time to pay it back plus the interest,
(13:03):
they can't pay it back, and they certainly can't pay
it back plus interest too. So what they do is
they borrow more to cover the original loan plus the interest,
and then by that time Congress that wants more money anyway,
so the debt just keeps going up and up and
up and up.
Speaker 8 (13:17):
Under the current monetary system, we borrow all of our
currency into existence, and we promise to pay it back
plus interest. If you borrow the very first dollar into existence,
and that's the only dollar that exists on the planet,
but you promise to pay it back plus another dollar's
worth of interest, where do you get the second dollar.
The answer is you have to borrow that. It's a
Ponzi scheme because you can never pay it off. It
(13:39):
always requires that we go deeper into debt.
Speaker 3 (13:43):
Since nineteen seventy one, the United States has been running
trade deficits with the rest of the world, meaning we've
been buying a lot more products from the rest of
the world than they have been buying from US. The
Japanese and Koreans sell US cars and electronics, the Middle
East sells US oil, and the Chinese sell US seemingly
(14:04):
everything on our Walmart shelves. The US pays for these
products with US dollars, and everyone is happy. But if
countries were to convert these US dollar profits back into
their own currencies, their currencies would rise in value, making
their economies less desirable to trade with. Instead, countries invest
(14:26):
their dollar profits by buying US government bonds. So countries
around the world sell their goods to the US in
exchange for US dollars which have been borrowed through the
Federal Reserve, creating IOUs and countries then loan their US
dollar profits back to the US by buying more IOUs.
(14:47):
The money from these loans is spent on paying government
expenses as well as paying back previous IOUs but in
order to do this, larger and larger loans must be
made in order to to pay back the principle and
the interest by paying back old loans with new and
larger loans, it would appear as if the entire world
(15:10):
has been investing their hard earned money into a Ponzi
scheme of epic proportions.
Speaker 9 (15:17):
In this business of creating money for federal governments and
national governments around the world. If they didn't keep creating
new money in larger and larger amounts, the whole thing
would crash because that's where the money comes from to
pay off the previous loans, it's the new loans. So
that's why it's a Ponzi scheme. It's a classic Ponzi scheme.
Speaker 7 (15:39):
In order for the US economy to function, we have
to borrow more and more money from the rest of
the world. And the more money they loan us today,
the more money they have to loan us in the future.
And if they ever stop loaning, the whole thing collapses
and we can't pay them back.
Speaker 6 (16:00):
Every Friday night, Julia's job is to compare the grocery
prices of our neighborhood stores for Saturday morning shopping. There
are five big neighborhood markets within a couple of blocks
of our house, and Julia's spreads are shopping around, going
when the prices are lowest and the quality best.
Speaker 3 (16:17):
Remember when a chocolate bar cost a quarter, when you
could fill your car up for five dollars, man feed
a family of six for thirty five dollars a week.
Whatever happened to those days? Without anything tangible backing currencies,
governments could borrow and print as much currency as it wanted.
This has gradually led to the value of our currency
(16:40):
being eroded.
Speaker 9 (16:43):
With the creation of all this money that dilutes the
value of all of the dollars that were out there before,
so that the purchasing power of the dollar gets crowded down, down, down,
And we used to be able to buy a gallon
of gas for thirty one cents. Now it's hitting around
five dollars.
Speaker 2 (16:59):
The average in the street is affected by inflation because
of the loss of purchasing power, and as a consequence,
his standard of living is declining.
Speaker 5 (17:07):
If he can't keep up with the inflation rate.
Speaker 7 (17:10):
And many measures of a standard of living Americans today
are actually worse off. You can take my grandparents. My
grandmother never worked despite the fact that my grandfather was
a carpenter and they had eight children. I could a carpenter,
somebody without even a high school diploma, just working in
a blue collar job support a wife and eight kids. Today,
(17:32):
not a chance.
Speaker 3 (17:37):
With inflation rising faster than incomes, people were forced into
more and more drastic measures to maintain their standard of living.
With each new day, the work of a family begins again.
Speaker 4 (17:52):
We went off goldbacking of the dollar. What used to
happen prior to that is the husband went to work,
the wife stayed at home raise the family. Because of
inflation in the seventies, the wife went to work. So
now you had two incomes that were necessary to produce
and buy the same goods and services. In the nineties,
(18:13):
we stopped saving. The savings rate basically got down to
zero because people were spending. They couldn't save in order
to buy the same goods and services. Then we got
to the last decade, the wife was already working, the
savings were down to zero. They borrowed money, and so
we've gone from two earners getting rid of our savings
(18:36):
rate to borrowing money to keep pace with inflation.
Speaker 3 (18:41):
The average person is now forced to borrow well beyond
their means, getting themselves deeply into debt. At first, this
was to maintain a nice standard of living, but slowly
it has become necessary just to survive. By printing so
much currency and devaluing it so heavily, it would seem
(19:02):
that governments are essentially levying a hidden tax on their people.
Speaker 11 (19:09):
Central banks try to say that two percent or three
percent inflation is a good thing, and they make that
a target.
Speaker 5 (19:16):
Well, it's still a tax.
Speaker 11 (19:18):
Why is two percent inflation or three percent inflation better
for the country than no inflation? You will be told,
of course, that's beth and deflation. And you'll be told
that people like to feel that their money or their
jobs or their wages are going up by two percent.
At least it's something with the fact that two percent
(19:39):
is robbery and what they get is going down by
that amount.
Speaker 12 (19:43):
We are experiencing inflation these days. I mean, yeah, they
say the CBIs of whatever is two or three percent.
I mean, anybody who's alive knows that inflation is well
beyond that, probably running double digits.
Speaker 3 (19:56):
The purchasing power of the average person has been deteriorating drastically,
but in order to disguise this, governments have been skewing
the figures and their reports to make it seem as
if inflation is much lower than it really is.
Speaker 11 (20:12):
There is this curious distinction made which most people don't understand,
between core inflation and headline inflation. The core inflation is
a basic two percent target which doesn't matter, and the
headline inflation is once you include all sort of things
like energy prices and sudden tax rates.
Speaker 2 (20:32):
Is and the risk, well, the inflation rate is skewed.
They use all kinds of contrivances to make the inflation.
Speaker 5 (20:38):
Rate look lower than what it really is.
Speaker 2 (20:41):
If the US government were using the same CPI model
that they did when President Carter was in the White
House in the late nineteen seventies. The inflation rate today
in the United States will be nine or ten percent.
That's how badly the currency is being debased now. The
reason why they do that is there a lot of
inflation adjusted responsibilities that the US government has to pay
out money to. You know, for example, people on the
(21:02):
Social Security system on an inflation adjusted basis.
Speaker 5 (21:06):
If they keep the.
Speaker 2 (21:07):
Inflation rate low according to their own statistic, that means
they're paying out less. That means a government budget deficit
is less.
Speaker 13 (21:16):
A thriving metropolis, Toledo is one of the world's greatest
glass processing centers in Akron, the state's fifth largest city.
That story deals primarily with rubber. Akron is the rubber
manufacturing capital of the nation and the world. Her very
name is synonymous with rubber.
Speaker 3 (21:35):
In a global economy where currencies are measured only against
each other, countries are able to artificially lower the value
of their own currency, making their industries more competitive. A
country with a weak currency can make products cheaper, causing
entire industrial centers to move overseas. This effect has been
(21:56):
seen countless times in cities around the world, some of
which still haven't recovered from the loss of their industrial base.
Speaker 4 (22:06):
I think the guy on the street, he's kind of frustrated.
They go, gosh, I went to college, I don't have
a job. I can't get a job. I spend all
this money. I've got student loans. It's costing me more
to live. The FED is telling me there's no inflation.
Yet I go to the store and I see the price.
Speaker 5 (22:22):
Of milk going up, eggs, meat.
Speaker 4 (22:24):
I pull into a gas station. It's costing me more
for gas. They don't really understand how all this affects
him on a personal level. And that's why I think
they're frustrated because there isn't an educational system that explains that. Look,
when you print money when you have nothing backing in,
and when you debase it, you have all the side
effects that you see, higher inflation, costs, corruption, cronyism, all
(22:50):
the things that would have been in headlines that we've
seen over the last four or five years.
Speaker 9 (22:55):
The protest movements are an interesting phenomenon. A lot of
people are terribly upset with Wall Street. They're upset what's
happening to their purchasing power. They're upset with the news
that they hear of the fact that the executives of
these giant banks are getting million dollar bonuses at the
same time they're dipping into the pockets of the taxpayers
(23:17):
to get all this bailout money, and so they're they're angry. Unfortunately,
people are demonstrating against the crisis, the economic crisis, and
yet at the same time, they're demanding more welfare, demanding
more medical benefits, They're demanding more state control and regulation
of their lives. They're demanding more money being created and
(23:38):
pumped into the society. They don't realize that those are
the very things that are brought them onto the street
in the first place, in their anger.
Speaker 3 (23:49):
While the person on the street is struggling to get by.
We're told that what we're experiencing is a typical recession.
Why then, does this current crisis feel different to previous
economic recessions.
Speaker 7 (24:03):
This is far from typical. I think this is the
end game. I think what we're experiencing now are the
pains of the forty year experiment in fiat currency coming
to an end, and it is an absolute failure, not
only for America but for the entire world.
Speaker 3 (24:21):
Up until two thousand and eight, we've been borrowing more
and more money to maintain our standard of living. Are
we now at the point where we're maxed out and
cannot take on any more new debt?
Speaker 4 (24:35):
What we're seeing today is deleveraging at all levels of society.
I mean, consumers are maxed out. Each succession that we
had in the economy, when we went through this boom
and bus period, we'd go through a bust, they would
reinflate again, the economy would start up again, but we
kept piling on, piling on, piling on levels of debt,
(24:57):
and finally we reached the point where you just can't
pile any more debt.
Speaker 3 (25:02):
Banks are no longer willing to give out credit so freely,
and many people are more concerned with paying off existing
debt as opposed to taking on new debt. While this
is prudent, sensible behavior, it's also a serious threat to
the global economy. Having set itself up as a giant
Ponzi scheme, the global economy is reliant on more and
(25:25):
larger debt being issued to keep itself functioning.
Speaker 8 (25:30):
If you try to just live within your means and
get by with just the amount of dollars that we
have today, paying the interest on them collapses the currency supply,
and so we continually have to borrow more units of
currency into existence every month than we extinguish by paying
off debt.
Speaker 2 (25:51):
The system as it's been presently structured, is that they
have to continue expanding the money supply, otherwise the system
is going.
Speaker 8 (25:58):
To Dieitions and pundits talk about living within our means
and paying down the debt. You can't do that without
collapsing the entire economy. It would just vanish into this
black hole.
Speaker 12 (26:12):
All the politicians are in a situation where if they
don't come to the rescue, we could just have an
overnight shutdown, which they can't ever imagine happening while they're
in power. So there's always this wish to move it
on and kick as you know the expression kick the
can down the road, which is really what we're doing.
Speaker 7 (26:29):
But the problem is we've run out of road. You know,
there is no place to kick the can anymore. But
we've got to deal with the can. And it's not
simply a can, because every time we kicked it down
the road, unfortunately it got bigger. So now it's an
enormous can, and you know it's going to crush US.
Speaker 3 (26:46):
While the financial crisis of two thousand and eight may
have been the first death throws of the Ponzi scheme,
governments around the world weren't about to sit back and
let it fail, so they delayed the inevitable collapse, pushing
it down the road by bailing out struggling financial institutions,
buying toxic mortgages, and taking on debt on behalf of
(27:08):
its citizens.
Speaker 14 (27:13):
In two thousand and nine. In twenty ten, what happened
was the crisis was papered over through bailouts, guarantees, money printing,
expansion of the money supply et ce.
Speaker 4 (27:23):
Governments can do that.
Speaker 14 (27:24):
I mean, don't underestimate the ability of governments to dictate
results in the shirt run. But in the long run,
none of the problems are solved. The bad debts are
still there, the banks are still insolvent, the banks are
not landing, the economy's not growing, So we haven't really
solved anything.
Speaker 9 (27:39):
By buying their way out of these crises, by creating
money out of nothing and flooding it into the economy
and diluting the purchasing bomber, they're not really solving the problem.
What they're doing is pushing it off a little bit
into the future and making it worse.
Speaker 14 (27:52):
Now do we keep going down this road? Do we
print more money? I mean, the Fed balance sheet went
from eight hundred billion to three trillion. Should it now
go to six trillion? We had a eight hundred billion
dollar stimulus. Should we now have a two trillion dollar stimulus?
I mean, in theory, you could, but this is where
people could lose faith entirely in they and the currency
could collapse.
Speaker 3 (28:13):
The Federal reserves money printing exercises may help prop up
the economy in the short term, but what are the
consequences of money printing on such a large scale.
Speaker 7 (28:27):
I think you're going to see a very rapid decline
in the value of the dollar in a matter of days,
whether it's twenty percent, thirty percent, forty percent. A lot
of people have been buying the dollar as a safe haven,
you know, when they find out that there's no safety there.
In fact, they need a safe haven from the dollar.
I mean, right now, the dollar is benefiting from the
(28:47):
fear trade. Well, what if the fear trade is afraid
of the dollar.
Speaker 3 (28:52):
Aside from causing an enormous amount of inflation, the Federal
reserves reckless money printing exercises also run the very real
risk of creating a worldwide loss of confidence in the
US dollar.
Speaker 14 (29:06):
I think a currency crisis is highly likely, but it'll
be very difficult to know exactly what will cause it
and win. I think it'll be something unforeseen. It could
be a natural disaster, it could be a political shock,
it could be just a general loss of confidence.
Speaker 4 (29:21):
It could be something as simple as a treasury auction
that goes bad. There's no buyers, and all of a sudden,
the interest rate starts to go up. Then the financial players,
the big hedge funds, start to react to a dumping dollars.
Then all of a sudden, you have foreign central banks
that begin dumping dollars.
Speaker 5 (29:40):
Get me out.
Speaker 4 (29:40):
And when that happens, just like that.
Speaker 7 (29:43):
At some point, just like all Ponzi schemes, the participants
wake up to the con they don't want to participate anymore,
and the whole thing implodes. Now you know when private factors,
when people who are voluntarily participating foreigners, foreign central banks,
when they stop buying. The one difference is the Federal
Reserve can come and supply the demand for the people
(30:06):
who are waking up to the Ponzi nature of what
we're doing. But of course, when the FED becomes the
only buyer, that's the endgame, or be the beginning of
the hyperinflation.
Speaker 2 (30:17):
Hyperinflation is a rapid increase in the inflation rate, so
much so that people lose faith in the currency. And
you see what is in effect a flight from the currency.
Speaker 15 (30:29):
Defeated Germany as a runaway inflation in Germany, the mark
becomes so worthless it is used to paper walls or
the light stoves.
Speaker 2 (30:41):
What happens is the government spends so much money, forcing
it to borrow.
Speaker 4 (30:45):
It gets to the stage.
Speaker 2 (30:47):
Where it's borrowing more money than the market is willing
to lend to it. The central bank then steps in
and turns that government debt into currency.
Speaker 11 (30:56):
The great question is, and I didn't know the answer,
is what level of infletion five ten percent do start
to panic? All I know is when that level comes,
everybody panics together.
Speaker 2 (31:10):
Consequence of a hyper inflation is the price of goods
and services rises very very rapidly, and that feeds upon itself,
causing people to get rid of the currency even more quickly.
Speaker 10 (31:20):
So you then have a situation where people go out
and they buy things just to get the hell out
of paper money, and paradoxically that then starts driving an
accelerating demand for paper money because they want more paper
money to come buy things. So you have the situation
where the value of paper money starts collapsing in advance
of its issue.
Speaker 4 (31:39):
In everyday life, you'll be scrambling from day to day
to get tangible things. If you're thinking of buying one
can of tuna, you're going to buy two because you
know that tomorrow or even later on that day or
the next hour, that canatunas can be costing you more.
That you're going to be scrambling to get anything that's tangible.
Speaker 7 (32:00):
This period is going to involve a lot of economic pain.
A lot of people who are currently retired in America
are going to have to get jobs. Their retirement is gone,
it's been bankrupted because they put their faith in a
Bernie Madoff type national Ponzi scheme. And of course a
lot of the property is going to decay. If people
(32:23):
are spending money on the necessities, they don't have money
to make the repairs necessary to maintain their properties. If
the landlords can't collect rents from their tenants, how are
they going to maintain their properties, how are they going
to pay the taxes? So I think the whole economy
is going to crumble beneath the weight of this runaway inflation.
And of course the initial reaction by the FED will
(32:46):
be to create even more inflation, to try to stimulate
the economy by printing even more money, which of course
is the source of the problem.
Speaker 3 (32:54):
On the surface, it would appear that this is a
problem facing the United States alone, but with so many
countries holding their savings in US government bonds, a loss
of confidence in the US dollar could trigger a global crisis,
which would affect every nation on Earth.
Speaker 5 (33:14):
If the US dollar hyper inflates.
Speaker 2 (33:16):
The implications are really profound because you can go to
a country like Zimbabwe and see the impact of a hyperinflation.
But what happens when the world's reserve currency hyperinflates. We've
never been in this situation before. It's impossible to predict
what the outcome is going to be, but logic suggests
that if the US dollar hyperinflates, most, off not all,
(33:36):
of the currencies of the world will also have severe
economic problems, because at the end of the day, the
reserves of all of these currencies are basically dollars. There
(34:02):
have been dozens and dozens of currency collapses since the
end of the Second World War, and they all result
from the same thing, you know, bad policies, bad management,
and the US right now is pursuing bad policies, central
bank is doing a bad job managing their currency. As
a consequence, it's inevitable that the dollar is going to collapse.
It's on this road that I call the theat currency graveyard.
Speaker 10 (34:26):
The market is the private sector, however you like to
decide it. People they suddenly sort of move in a
herd instinct, they suddenly sort of understand things. And this
can happen overnight. I mean, it really can. So the
timing of this is I think very difficult, if anything,
impossible for us to say. But I would point out
that there is the danger that I use a metaphor,
(34:47):
one morning we will wake up and find that we
are in a very different world. It may not be
one morning, it may be a week, a month, I
don't know. But when it happens, I think it will
happen quite quickly, and we won't really be able to
predict when.
Speaker 3 (35:01):
Hyperinflation may be one of several scenarios facing the world today.
But history has shown us that whenever a nation tried
to run its economy using an artificial fiat system, the
end result is always the same disaster.
Speaker 8 (35:18):
There is a proven one hundred percent failure rate. There
is no exception to this. Fiat currencies always fail. And
then forty years ago we tried this grand experiment where
all the world's currencies became feat at the same time
when we ended the Breton Woods system.
Speaker 7 (35:35):
The world is going to have to extricate itself from
this monetary system based on the dollar, because if you
want to back your currency, you have to back it
with something. You can't back it with nothing. You always
think of that old Superman movie where the first one
where Lois Lane, she falls off the top of the
building and Superman catches her and he says, I got you.
(35:56):
Don't worry, I got you, And she says, well you
got me. Who's got you? Well, that's the dollar. Who's
got the dollar? It's not Superman. The dollar can't fly
on its own. The dollar used to be backed by gold.
It was gold that had the dollar. It's like everybody
has tethered their ships to the Titanic of currencies, and
so we're all going to go down.
Speaker 8 (36:16):
If there is a loss of confidence in the US dollar,
and I think there will be in this decade. It's
happened before, it'll just be history repeating.
Speaker 5 (36:25):
Then we'll probably.
Speaker 8 (36:26):
Have to go back to something that will instill confidence,
and what instills confidence is gold.
Speaker 9 (36:32):
The only real solution is to go back to a real,
sound currency, real money with something behind it. It doesn't
have to be gold or silver, but historically that has
always been what societies have chosen through trial and error.
They've tried this, they've tried that, they always wind up
with gold or silver. I think that probably is a clue.
(36:52):
That's not a bad way to go.
Speaker 3 (36:55):
With all the uncertainty facing the world today, a return
to a old backed economy would seem logical. So how
come there isn't so much as a discussion about such
a return. The answer is as simple as it is alarming.
The people at the top, the ones who have been
benefiting from the current Ponzi system, don't want the ride
(37:17):
to end. Many now believe the price of gold and
silver have been artificially suppressed to make it seem less
desirable as a unit of global exchange.
Speaker 2 (37:29):
What governments try to do is to maintain a low
gold price, because by doing that, it makes the dollar
look worthy of being a world's reserve currency, when in
fact we know the dollar is not worthy of that
esteemed position because it's being so badly mismanaged by the
United States.
Speaker 3 (37:47):
Groups like the Gold Anti Trust Action Committee or GATTA
have been tracking what they believe is the deliberate suppression
of gold and silver prices through a variety of dubious means.
Speaker 16 (38:00):
In twelve years, we've amassed nothing but evidence of that
supports the manipulation of goal price. Mu's be like talking
about a murder trial when the jury would say guilty
beyond a reasonable doubt, But you know you've got to
present each point of evidence and how it all fits together.
Speaker 8 (38:15):
There are numerous methods that they used to suppress the
price of gold. Some are harder to prove than others,
but some of them are fully reported.
Speaker 5 (38:22):
In That's Central Bank sales.
Speaker 3 (38:25):
Between nineteen ninety nine and two thousand and two, the
Bank of England foolishly sold a massive amount of Britain's
gold reserves at an average price of two hundred and
seventy five dollars an ounce. The proceeds were spent buying
euros and US dollars. The governments of Canada, France, and Switzerland,
among others, were also sellers of their gold.
Speaker 12 (38:47):
Around this time, we know that the central banks used
to sell four hundred tons every year. Well, why were
they selling four hundred tons? Obviously it was the dumbest
decision anyone could have made in the decade, by far
the dumbest, but they did it every year, sell four hundred,
sell four hundred. I mean, now you know gold goals
from three hundred to sixteen hundred, almost seventeen. Or why
were you selling the gold? Because they were trying to
(39:10):
keep the price down. So it was a coordinated thing
to keep everyone focused on believing in currencies.
Speaker 8 (39:18):
Alan Greenspan, in testimony to Congress, admitted that they were
manipulating the price of gold when he said, the world's
central banks stand ready to lease gold in increasing quantities,
meaning they were already doing it should the price of
gold rise, meaning the target was to suppress the price
of gold. So they were already doing it, and their
(39:40):
target was to suppress the price of gold.
Speaker 5 (39:42):
He admitted it in testimony to Congress.
Speaker 3 (39:45):
Although central banks are able to sell off their country's
gold holdings legally, they may have also been suppressing the
price of gold using some other rather questionable means. Some
investigators believe that Western central banks have been loaning their
country's gold to bullion banks. A bullion bank is an
institution that sells gold with the intention of buying it
(40:08):
back sometime in the future at a cheaper price. With
the proceeds of this sale, these banks have been known
to buy US government bonds. While this isn't a problem
in itself, central banks report the gold they have and
the gold they've loaned to these bullion banks as one item.
(40:28):
So while a central bank may claim it has a
certain amount of gold and reserves, much of that gold
may be on loan to a bullion bank, which may
have sold the gold in exchange for government bonds.
Speaker 17 (40:41):
One means of intervention in the gold market is the
lending of gold to so called bullion banks, and they
sold in the market. This is a suppresses the price
as if the central banks would sell it directly, But
this landing does not appear in the book the central banks.
Speaker 8 (41:01):
The US Treasury a few years ago changed the way
they account for gold, and they're accounting for some of
their receivables and their inventory as one line item. So
they're accounting for what they actually have and what people
owe them as the same thing.
Speaker 5 (41:19):
And that is basically illegal accounting. It's fraudulent.
Speaker 3 (41:23):
But why work so hard to keep the price of
gold and silver low? Why do healthy gold and silver
prices threaten to collapse? The Ponzi scheme.
Speaker 2 (41:33):
There's this competitive relationship between gold and national currencies because
gold is the only competitor to a national currency. You know,
gold is money, and these national currencies are money substitutes
that circulate in place of gold.
Speaker 7 (41:49):
If you have money gives the power to government. Real
money keeps the power with the people because when you
have real money, government is limited. It can only spend
what it taxes, and the public will resist taxation. But
if the government can simply print and borrow, there's a
lot less resistance, and so it's a lot easier for
the government to grow when it can promise something for nothing.
(42:12):
And so that's what they do. And so gold is
what protects the people from the reckless policies of government.
Gold is the government chaperone. The government wants to be
able to do whatever it wants. Gold stands in its way.
So yes, gold is an enemy a big government, but
it's a friend of freedom. It's a protector of individuals
from government.
Speaker 16 (42:32):
Goal is a competitor to the dollar, and when it's
going way up, it's a threat for inflation. It's a
barometer of the well being of the Isaac. Look at
gold screaming now and the world's falling apart. So it
calls attention to how bad things are. So the US
government has an interest Wall Street, the politicians to keep
the price suppressed.
Speaker 4 (42:50):
Wall Street doesn't want you going down to a coin
dealer buying gold and silver coins. They want to sell
your paper. The government wants to sell your paper. So
I would say it's the government and Wall Street.
Speaker 2 (43:02):
Gold and hands of people is the way you can
control government. Governments cannot create money out of thin.
Speaker 5 (43:08):
Air if it's gold.
Speaker 2 (43:09):
They can only create paper out of thin air. And
if they can create paper out of thin air, they
can use that paper to wage wars, or they can
use that paper as a political contrivance to enrich their friends.
And as a consequence, governments have been fighting gold all
century long.
Speaker 3 (43:29):
Despite this desire to keep gold and silver down. The
recent instability in the markets has seen the demand for
gold and silver skyrocket. This in turn has exposed a
deeper problem within the central banks.
Speaker 10 (43:44):
The problem with central banks in the West now face
is that they have sold an awful lot of gold
to try and suppress the price of gold. They are
now embarrassed by the fact that central banks not in
that original cartel are now really very keen buys of gold.
And we're talking about the Chinese, we're talking about the Russians,
(44:04):
we're talking about.
Speaker 5 (44:05):
The Indians, we're talking about eating Mexico.
Speaker 10 (44:08):
All these non mainstream central banks not part of if
you like, the top club members of the Bank of
International Settlements, you know, the little guys in that context,
they're picking up hundreds of tons of the stuff.
Speaker 3 (44:22):
To suppress the price of gold. Western central banks have
had to sell or loan out their country's gold holdings.
But because the gold they sell rarely leaves their vaults,
no one can be certain they aren't selling or loaning
out more of gold than they physically own. If this
is true, then this could be one of the biggest
(44:43):
scams ever perpetrated in history. A massive Cohn perpetrated not
by individuals but by entire governments.
Speaker 8 (44:53):
The central bank gold most of it sits at the
New York feder Reserve and the Bank of England, so
it's in the basement of these two places, and it
doesn't actually move. When a country is doing international settlement,
they basically take a bar off of this pile and
put it on that pile, or.
Speaker 5 (45:07):
They'll just change the labels, or it's just a book entry.
Speaker 8 (45:10):
It's accounting, except there's been some pretty creative accounting on
all this goal and I doubt very much that I
don't think all of it is there.
Speaker 9 (45:21):
The question remains if everybody, especially the big players, wanted
all their gold delivered at the same time, it is
physically impossible to do it.
Speaker 8 (45:31):
Most gold that exists on the planet, there's more than
one claim on each ounce of gold. There's several people
that think that they have titled that same ounce of gold.
I am have said many, many, many times over and
over again. If you can't hold it, you don't own it.
Speaker 9 (45:48):
The game can't go on forever because sooner or later
people are going to demand their physical gold or sober.
Speaker 5 (45:54):
And that already is happening.
Speaker 3 (45:56):
The lack of accountability in gold sales by Western central
banks hasn't been a concern so far, but as more
and more buyers of gold have started to demand physical delivery,
central banks that have over sold or loaned out their
country's gold will find themselves caught in a major scandal.
The result of such fraudulent activity means buyers of gold,
(46:20):
be they individuals, pension or hedge funds, or even entire nations,
could be ripped off for billions of dollars.
Speaker 16 (46:29):
It's a little similar than the Murdoch scandal here at
Fox News in London, of the made Off scandal, I mean,
it's a very incestious relationship between press, big money and
the politicians, and unfortunately these things don't get correct until
they blow up. Made Off blew up, Murdoch blew up.
The gold market is going to blow up, and I
(46:49):
think will be a bigger scandal than either of them,
because it's a worldwide financial situation.
Speaker 9 (47:01):
The only trick that the politicians in power today know,
and the central banker, the only trick they know is
to create more money out of nothing to inflate the currency.
They have no other trick. So as long as we
keep looking to them to be our leaders and solve
the problem. How can we expect anything else. That's the
only trick they know, because the only other trick there
(47:25):
is is to stop inflating and to go back to
a sound currency, and that would say they say, oh no,
we can't do that. And the reason they can't do
that is because it would put them all out of business.
They wouldn't be able to continue the Ponzi scheme.
Speaker 3 (47:39):
Even with cracks forming in the current financial system. The
only solutions offered by governments are in fact just more
steps down the road to disaster. But while a single
person may not be able to save the world, there
is still something you can do to protect your family
and yourself.
Speaker 9 (48:00):
You cannot turn to a ponzi schemer and ask him
to run a real business because he doesn't know how.
So you can't turn to all of these ponzi schemers
in government who are inflating the currency and say, well,
let's solve the crisis in some other way, because they
don't know how. So the solution is to quit depending
(48:22):
on the same people with the same mentality to solve
our problems.
Speaker 7 (48:27):
If governments won't go back on a gold standard individuals
can go back on the gold standard all by themselves.
Politicians can create fiat money at will.
Speaker 5 (48:36):
That's why it's fiat.
Speaker 7 (48:38):
So why would you want to put your faith in that,
put your trust in politicians and bureaucrafts and central bankers
when you can just have something real that has intrinsic value,
that is scarce and that is going to remain scarce.
Speaker 12 (48:52):
Would you rather have gold or a fiat currency? And
we see what's happening in the world, and obviously people
are starting to figure out that gold is likely to
sustain its value way more than a piece of paper is.
Speaker 9 (49:06):
It's not that the price of gold is going up,
it's that the value of the dollar is going down.
The price remains constant. In terms of human effort and
purchasing power. An ounce of gold today will buy the
same thing it bought two thousand years ago. An ounce
of gold today is approximately takes so much human effort
to get out and refine the same human effort that
it took to do certain things two thousand years ago.
(49:28):
It's the human effort equation that maintains stability. How much
effort does it take?
Speaker 4 (49:33):
Gold is financial insurance. And the thing about it is.
You own it because you want to be protected, and
you know you just have to have it if you
want to have or sleep that night, because there's nothing else.
If some catastrophic event happens, and we've seen them.
Speaker 5 (49:55):
How are you going to be protected?
Speaker 3 (50:02):
The current financial system may be dying, but where there
is chaos, there is also opportunity. As the old model
falls apart, the door may be opened for great prosperity.
Speaker 7 (50:15):
It's clearly not the end of the world. I mean,
it's probably not even the end of America. For many countries.
This is going to be the beginning of an economic boom,
a giant burden being lifting off their shoulders, where the
world no longer has to loan trillions of dollars to
Americans so that we can continue to consume what we
don't produce. When this comes to an end, the world
(50:39):
will benefit. So it is not something that we should fear.
We should embrace it. As a world.
Speaker 8 (50:45):
This is the greatest wealth transfer in history.
Speaker 5 (50:48):
If we have a global.
Speaker 8 (50:50):
Currency crisis, then you're going to see a greater wealth
transfer than has ever happened in all of history. It's
all going to happen at once. Therefore, it's the greatest opportunity.
Speaker 9 (51:02):
We have millions of people now taking an interest in
what is money, the question of what is money, what
should it be? And their learning, especially a lot of
young people.
Speaker 3 (51:20):
The sun will rise tomorrow as it has a million
times before. Commuters will wake up and travel to their
offices to begin the day's work. Farmers will tend to
their crops, and construction workers will build new infrastructure. But
will the world they live in still be the same?
In two thousand and eight, the world was given a
(51:42):
wake up call. The biggest financial crash in human history
was delayed by the same poor decisions that brought it
about in the first place. What that massive bailout bought
us was not a solution, but merely time. Time for
the people responsible to bring the last few dollars out
of dying system, but also for those able to see
(52:04):
the cliff edge approaching, Time to protect themselves and their
families from the imminent plunge, and in the end that
time may prove to be the most valuable commodity of all.
Speaker 8 (52:17):
There are these brief moments in history where the safe
haven asset for the last five thousand years simultaneously becomes
the asset class that has the greatest single potential gains
in purchasing power. We're in one of these cycles right
now where money is the best investment. Get out of currency,
(52:41):
buy money, and you're probably going to be able to
buy a whole lot more stuff later.
Speaker 5 (52:50):
But the best thing that people can do of.
Speaker 8 (52:52):
All is really to take on their own responsibility for
getting financially educated. This is the most important thing. Don't
let the banks and the brokerage houses and other people
guide all of your decisions.
Speaker 5 (53:05):
Find out what's going on for yourself. Empower yourself,
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