End of the Road: How Money Became Worthless | Gold | Financial Crisis | ENDEVR Documentary

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, therefore I have directed the secretary of the treasury to take the necessary steps to defend the dollar against speculators who have ordered Secretary Connelly to temporarily suspend the convertibility of the dollar into

gold

or other reserve assets, except in amounts and conditions determined in the interest of monetary stability and in the best interests of the United States . August 15, 1971 will stand as an important event in economic history for many, many generations, in fact, you know, hundreds of years from now people will remember that day when the sun rises today as it has a million years ago. times before travelers wake up and travel to their offices to begin the day's work.

Farmers tend their crops construction workers build new infrastructure Today is a day like any other or is it in 2008 that the world experienced one of the greatest

financial

turbulences in history. Markets around the world began to crash and major

financial

institutions that were once considered invincible began to show signs of collapse. Governments responded quickly by issuing massive bailouts and stimulus packages in an effort to keep the global economy afloat and it worked. The global economy recovered much faster than most predicted and soon returned to normal, and yet something still isn't quite right. A sense of unease fills the population in the world of finance, in fact, in all facets of modern life, cracks have begun to appear, there is anguish out there and I think if you talk to people on the street today you will They would say I don't know what is causing all of this, but this just doesn't seem normal to me.

You know, the government has a deficit worth a trillion dollars. Why isn't the economy improving? The government is going to spend almost 3.7 trillion dollars. Why don't I have a job? Because? the unemployment rate is 9 and I even think that number is underestimated. Many people feel insecure about today's world, worried that something terrible is waiting in the wings. They tell us that the global financial

crisis

of a few years ago has been solved. But what if the

crisis

is not the cause of the anguish many of us feel but rather the symptom of a much deeper problem in bretton woods new hampshire delegates from 44 allied and associated countries arrive for the opening of the monetary summit and united nations financial conference our story begins in 1944 with the end of world war ii the allied nations met in bretton woods new hampshire to create a new financial system that would stabilize the world once the war ended with the united states ready to enter a

gold

en age of prosperity united states The dollar was chosen as the world's reserve currency.

The Bretton Wood system was created after World War II at the Bretton Woods conference in New Hampshire and, instead of using gold as a medium of exchange between countries, as was the case under the old gold standard, the dollar. It was going to be used and the dollar was chosen because at that time it was as good as gold. Under this new system, countries agreed to peg their currencies to the US dollar and the US dollar would be pegged to gold at a price of $35 per ounce. This meant that countries around the world could exchange their currencies for US dollars which they could then exchange for gold.

This created a system where all currencies were essentially backed by gold to avoid the logistics of shipping physical gold around the world when countries exchanged their currencies. gold was usually stored safely in the US under the Bretton Woods system, you could exchange your currency or dollars for gold. Now it only applied to foreign countries and central banks and we started having budget deficits. We were running the great society program under Lyndon. Johnson, we were fighting a war in Vietnam and all of a sudden we had these deficits and countries were changing their dollars and saying they wanted gold and it started with the French and then it started spreading with all the new spending programs in the United States and others.

Countries

became

concerned that the United States was spending more

money

than it had gold reserves, they began exchanging their dollars for gold and demanded physical delivery as they felt that more dollars were being printed than the gold backing it to prevent this outflow of gold. From American vaults, President Nixon called for an emergency suspension of the gold convertibility system. I have directed the Secretary of the Treasury to take the necessary steps to defend the dollar against speculators. I have ordered Secretary Connelly to temporarily suspend the convertibility of the dollar into gold or other reserve assets. All of the problems we see in the monetary system today are a direct result of the decision made on August 15, 1971, you know, to abandon a fixed bond with gold.

What gold did is provide discipline to governments. about government spending under the old system, if you had a budget deficit, then what would happen is that gold would leave your country until there was a balance again, without any gold backing, then countries would have perpetual deficits, so if we look, for example, at this country. From 1971 onward, the United States has never had a surplus since we abandoned the gold standard. It's just been a perpetual stimulus. Good times, bad times always have deficits, leading Nixon to abandon the gold standard in 1971 and, although he claimed it was temporary, "We've been waiting 40 years, we're still out of it, we racked up huge deficits over the decade." In the 1960s, we had the arms and butter economy, where the government was simultaneously fighting a war in Vietnam overseas, plus we were funding manned missions to the moon.

In the entire space program we were creating more

money

than we had gold reserves for. support it and many of our foreign creditors saw this and began demanding gold instead of their federal reserve notes because they felt that Washington simply did not have enough gold to make its commitment to support the dollar by eliminating the link between gold and the. US dollar. President Nixon created a system in which all currencies were not backed by anything. This is what is known as fiat currency. Fiat currency is a currency that is not backed by anything except the government. promises that the word fiat is a Latin word and basically means currency that circulates by force if people have confidence in that currency and if there is enough government force to allow the currency to circulate for a period of time until people lose confidence in the currency there.

No nation on this planet currently uses money, we all use currency. There will come a day when everyone will know the difference. Money is a medium of exchange and the way it has evolved is that it is always something of intrinsic value until the modern era when politicians say well we don't need anything of intrinsic value anymore all we need is a political decree we can say this is money this piece of paper is money now money has a new characteristic but underneath it all is the same concept that no one ever seems a challenge and that is that governments have the right to declare that something

worthless

is money and you must accept it, that is really the problem and remains the problem today: it is destroying the world's economies with currencies that are 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 manufacture products cheaply, countries devalue their own currencies to make them desirable trading partners, each paper currency is measured against itself same against the dollar, so if the dollar goes down other central banks respond to that and try to intervene in the currency markets to ensure that the impact does not affect their national economies.

What is a Ponzi scheme? A Ponzi scheme is a fraudulent investment scheme that promises high returns to investors with little or no risk sounds too good to be true, right, that's because in a legitimate investment scheme, the money invested is used to generate wealth, usually through low-risk ventures such as stock portfolios or real estate, over time this generates enough income to repay the investor for his initial investment. investment plus some profit, a Ponzi scheme on the other hand promises massive returns quickly, how do you achieve this instead of using the money invested to build wealth? A Ponzi scheme simply attracts more investors to pay the previous investors and because these new investors also have been promised large returns, the scheme must then find an even larger pool of investors to pay them while the creators of the scheme are stealing cash from each group of investors because a Ponzi scheme does not by itself generate any wealth that it must constantly generate. in larger and larger groups of investors to continue functioning, eventually no more new investors can be found or a large number of previous investors withdraw money at the same time and the scheme collapses on itself, at which point the perpetrators of the scheme have diverted huge amounts of money. amounts of money for themselves, while investors are left out of money and out of luck without a fixed link to gold, the US treasury has been able to borrow and spend all the money it wanted, when the government of the US needs money, requests a loan from the Federal Reserve.

The Federal Reserve prints the currency required for the loan and in exchange receives a promissory note from the United States Treasury. These bonds are called government bonds. With the money provided by these loans or bonds, the United States government pays its bills and obligations. Meanwhile, the United States government. The Treasury and the Federal Reserve work closely to sell these bonds at auctions where foreign central bank pension funds and even individuals buy these loans from the US government and why wouldn't they lend money to the US government? It's practically 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 repay the current loan and is the interest charged an investment in a US government bond, just a small part of a giant Ponzi scheme? The Federal Reserve. The system is definitely a Ponzi scheme, there is no doubt about it, they go under the guise of lending money to governments and the governments agree to return the money plus interest and thus this money arises that they created just for that purpose and they give it to you. Governments didn't exist before, that's understood, central banks just appear out of nowhere and click a few keys on a computer keyboard and the US government treasury now has another trillion dollars it can spend, there it is Where is that money? wine and that creates a responsibility on the part of the federal government to pay it plus interest.

Now think about that plus interest, when it comes time to pay it back plus interest, they can't pay it back and they certainly can't pay it back plus interest, so what they do is they borrow more to cover the original loan plus interest and then to so Congress wants more money anyway, so the debt keeps going up and up and up under the In the current monetary system we borrow all of our currency to create it and we promise to pay it back plus interest if you borrow the first dollar and that's the only dollar that exists on the planet, but you promise to return it plus another dollar value.

Of interest, where do you get the second dollar? The answer is that you have to borrow which is a ponzi scheme because you will never be able to pay it back it always requires us to go into more debt since 1971 the united states has been running trade deficits with the rest of the world which means we have been buying many more products from the rest of the world from the world of those who have been buying from us, the Japanese and the Koreans sell us cars and electronic products, the Middle East sells us oil and the Chinese sell us seemingly everything within our reach.

Walmart leaves out that the United States pays for these products with US dollars and everyone is happy, but if countries converted these US dollar profits back into their own currencies, their currencies would increase in value, making their economies less desirable to trade. Instead, countries invest their profits in dollars. purchasing US government bonds so that countries around the world sell their products to the US in exchange for US dollars that have been borrowed through the federal reserve, creating ious and the countries then lend their profits in dollars Americans to the US by purchasing more money from These loans are spent on paying government expenses as well as paying off previous payments, but to do this increasingly larger loans must be made.to pay principal and interest by repaying old loans with new, larger loans.

It seems as if the entire world has been investing their hard-earned money into a Ponzi scheme of epic proportions in this business of creating money for federal and national governments around the world if they don't continue to create new money in ever-increasing amounts. . All of this would collapse because that's where the money comes from to pay off the previous loans, it's the new loans, that's why it's a Ponzi scheme, it's a classic Ponzi scheme, for the American economy to work we have to borrow more and more. money from the rest of the world and the more money they lend us today, the more money they will have to lend us in the future and if they ever stop lending to us, everything falls apart and we can't pay them back every Friday night.

Julia's job is To compare grocery prices from our neighborhood stores for Saturday morning shopping, there are five large neighborhood markets within a couple blocks of our house and Julia splits her purchases by going where they Prices are lower and the quality is better remember when a bar of chocolate costs a quarter when you could fill your car for five dollars and feed a family of six for 35 dollars a week, no matter what happens in those days without no tangible backingcurrencies that governments could borrow and print as much currency as they wanted, this has gradually led to the value of our currency being eroded with the creation of all this money diluting the value of all the dollars that existed before for the purchasing power of the dollar is piling up and we used to be able to buy a gallon of gas for, you know, 31 cents, now it's coming to around five dollars, the average citizen on the street is affected by inflation due to the loss of purchasing power and as a consequence your standard of living is declining if you can't keep up with the rate of inflation on many measures of standard of living, Americans today are worse off, you can take my grandparents, my grandmother never He worked even though my grandfather was a carpenter and they had eight children I could be a carpenter someone without even a high school diploma just working a manual job supporting a wife and eight children nowadays no chance with inflation rising higher Fast as incomes increased, people were forced to take more and more drastic measures to maintain their standard of living.

Every new day the work of a family begins again when we leave the gold backing of the dollar. What used to happen before that is that the husband went to work the wife stayed at home raising the family due to inflation in In the 70s 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 90s we stopped saving. The savings rate basically went to zero because people were spending and couldn't save in order. to buy the same goods and services, we reached the last decade, the wife was already working, the savings went to zero, they borrowed money, so we went from being two people throwing away our savings rate to borrowing money borrowed to keep pace.

Inflation, the average person is now forced to borrow far beyond their means, going deeply into debt at first, this was to maintain a good standard of living but slowly it has become necessary simply to survive by printing so much currency and devaluing it so strongly that it appears that governments are essentially imposing a hidden tax on their people. Central banks try to say that two percent or three percent inflation is a good thing and make it a goal. Well, it's still a tax. Why is two percent or three percent inflation better for people? in the country, then no inflation, they will tell you, of course, that that is beth and deflation and they will tell you that people like to feel that their money, their jobs or their salaries increase by at least two percent, it's something where the fact that two percent is a steal and what they get is going down by that amount, we're experiencing inflation these days, I mean yeah, they say the CPI has gone up whatever it is a two or three percent, I mean, anyone who's alive knows that inflation is way beyond that, probably.

In double digits, the average person's purchasing power has been deteriorating dramatically, but to disguise this, governments have been skewing the numbers in their reports to make it appear that inflation is much lower than it really is. There's this curious distinction that most people don't understand between core inflation and headline inflation, core inflation is a two percent baseline target that doesn't matter and headline inflation is once you include all sorts of things like energy prices and certain tax increases and the rest. well the inflation rate is skewed, they use all kinds of artifice to make the inflation rate appear lower than it really is if the US government was using the same CPI model as when President Carter was in the White House in the late 1970s.

The current inflation rate in the United States would be nine or ten percent. That's how seriously the currency is devaluing now. The reason they do this is that there are a lot of inflation-adjusted liabilities that the US government has to pay you. For example, people who receive the inflation-adjusted social security system if they keep the inflation rate low according to their own statistics that means they are paying less that means the government's budget deficit is smaller A prosperous metropolis Toledo is one of The world's largest 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. Its very name is synonymous with rubber in a global economy where currencies are measured only against each other. They are able to artificially reduce 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 ab

road

. This effect has been seen countless times in cities around the world. , some of which still have not recovered from the loss of their industrial base. I think the guy down the street is a little frustrated.

They go, God, I went to college. I have no job. I can't get a job. I spent all this money. I have student loans. It's getting harder for me to live. The Fed tells me there is no inflation. Still, I go to the store and see the price of milk going up. The eggs. The meat. I enter a gas station. Gasoline is costing me more. I really don't understand how all of this affects them on a personal level and that's why I think they're frustrated because there's no education system that explains that. Look, when you print money when you have nothing to back it up and when you degrade it, you have all the side effects that you see, higher inflation, costs, corruption, cronyism, all the things that have been in the headlines that we have seen in the Last four or five years, protest movements are an interesting phenomenon, many people are terribly upset with Wall Street.

They're upset about what's happening to their purchasing power, they're upset about the news that they're finding out about the fact that executives at these giant banks are getting multi-million dollar bonuses at the same time they're digging into taxpayers' pockets. to get all this bailout money and that's why they are angry, unfortunately people are demonstrating against the crisis, the economic crisis and yet at the same time they demand more welfare, they demand more medical benefits, they demand more state control and regulation of their lives. By demanding that more money be created and injected into society, they fail to realize that these are the same things that have driven them to the streets in the first place in their anger as the person on the street struggles to get by.

I was told that what we are experiencing is a typical recession. Why then does this current crisis feel different from previous economic downturns? This is far from typical. I think this is the end of the game. I think what we are experiencing now are the pains of the 40s. The year-long experiment with fiat currency is coming to an end and is an absolute failure not only for the United States but for the entire world. Until 2008 we have been borrowing more and more money to maintain our standard of living. Are we now at the point where "They are maxed out and can't take on any more new debt.

What we are seeing today is a deleveraging at all levels of society, meaning consumers are maxed out in every succession we had in the economy as we go through this period of boom and bust. If they went through a crisis, they would inflate again, the economy would start over, but we keep accumulating, accumulating, accumulating levels of debt and eventually we reach the point where you simply cannot accumulate any more debt that the banks are no longer willing to carry. give. granting credit so freely and many people are more concerned about paying off existing debt than taking on new debt, while this is prudent and sensible behavior, it is also a serious threat to the global economy having been established as a giant Ponzi scheme, the global economy is depending on more and more debt being issued to continue functioning if you try to simply live within your means and get by with only the amount of dollars we have today paying interest on them the supply of currency collapses and that is why we continually have borrow more units of currency each month than we extinguish by paying the debt, the system as currently structured is that they have to continue expanding the money supply, otherwise the system is going to die, politicians and experts talk about living Within our possibilities. and paying the debt, you can't do that without collapsing the entire economy, we would simply disappear into this black hole.

All politicians are in a situation where if they don't come to the rescue we could have a late night shutdown which they can never imagine happening while they are in power so there is always the desire to move on and as you know the expression kick the can down the

road

, which is really what we're doing, but the problem is that we've run out of road, you know there's no place to kick the can down the road anymore, we have to deal with the can and it's not just a can because every time we kicked it down the road, unfortunately it got bigger, so now it's a huge can and you know it's going to crush us, while the 2008 financial crisis may have been the first agony of the Ponzi scheme.

Governments around the world were unwilling to sit back and let it fail, so they delayed the inevitable collapse and pushed it into the future. By bailing out struggling financial institutions, buying toxic mortgages, and going into debt on behalf of their citizens in 2009 and 2010, what happened was that the crisis was disguised through bailouts, guarantees, money printing, expansion of the money supply, etc. Governments can do that, I mean, no. We underestimate the ability of governments to dictate outcomes in the short term but in the long term none of the problems are resolved the bad debts are still there the banks are still insolvent the banks are not landing the economy is not growing so we really haven't resolved any thing buying our way out of these crises by creating money out of nothing and flooding it into the economy and diluting purchasing power, they are not actually solving the problem, what they are doing is postponing it a little into the future and making things worse now, what?

Will we continue down this path? Will we print more money? I mean, the Fed's balance sheet went from 800 billion to 3 trillion, if it increased to 6 trillion now, we would have an 800 billion dollar stimulus, if we had two trillion now. dollar stimulus, I mean, in theory you could, but this is where people could completely lose faith in the currency and the currency could collapse. The federal reserve's money printing exercises may help prop up the economy in the short term, but what are the consequences of money printing in On such a large scale, I think we will see a very rapid drop in the value of the dollar in a matter of days, whether it's 20 to 30 percent or 40 percent, a lot of people have been buying the dollar as a safe haven, do you know when?

They discover that there is no security there, in fact they need a safe haven against the dollar. I mean, right now the dollar is benefiting from the fear trade. What if the fear trade is afraid of the dollar in addition to causing a huge amount of inflation? The Federal Reserve's reckless money printing exercises also run the very real risk of creating a global loss of confidence in the US dollar. I think a currency crisis is very likely, but it will be very difficult to know exactly what will cause it and when I think it will happen.

It will be something unforeseen It could be a natural disaster It couldbe a political shock It could just be a general loss of confidence It could be something as simple as a Treasury auction that goes wrong, there are no buyers, and suddenly the interest rate starts rising. goes up, then the financial players, the big hedge funds start to react to a dump of dollars and all of a sudden you have foreign central banks starting to dump dollars, take me out and when that happens like that, at some point, like all Ponzi schemes. the participants wake up to the scam, they no longer want to participate and everything implodes now, you know, when the private factors, when the people who participate voluntarily, the foreigners, the foreign central banks, when they stop buying, the only difference is the federal Reserve. may come and satisfy the demand of the people who are waking up to the Ponzi nature of what we are doing but of course when the Federal Reserve becomes the only buyer, that is the end of the game or the beginning of hyperinflation, hyperinflation is a rapid increase in The rate of inflation is so great that you know people lose faith in the currency and you see what is actually a flight of the currency.

Defeated Germany like rampant inflation. In Germany, the frame becomes so useless that it is customary to paper the walls or light the stoves. What happens is that the government spends so much money forcing you to borrow that you get to the point where you borrow more money than the market is willing to lend you, then the central bank steps in and converts that government debt into currency. The big question is: I don't know the answer is: at what level of inflation 5 10 15 20 does panic start to set in? All I know is that when that level hits, everyone panics.

The consequence of hyperinflation is that the price of goods and services increases very, very quickly and that feeds on itself and makes people get rid of currency even more quickly, so you have a situation where people go out and buy things just to get money out of paper money and, paradoxically, that then starts to drive and accelerate the demand for paper money because you want more paper money to go buy things, so you have the situation where the value of paper currency starts to collapse before this problem in everyday life, you will have to fight day by day to get tangible things if you are thinking of buying. a can of tuna you are going to buy two because you know that tomorrow or even later that day or the next hour that can of tuna may cost you more and you will have to fight to get anything that is tangible this period is going to involve a lot of economic pain.

Many people who are currently retired in the United States are going to have to get jobs. His retirement is over. It's bankrupt because they put their faith in a Bernie Madoff-type national Ponzi scheme and of course, Of course, much of the property will deteriorate if people spend money on these necessities, they don't have the money to make the repairs necessary to maintain their properties, if landlords can't collect rent from their tenants, how are they going to maintain them? the properties, how are they going to pay the taxes? So I think the entire economy is going to crumble under the weight of this runaway inflation, and of course the Federal Reserve's initial reaction will 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 On the surface, it would seem that this is a problem facing only the United States, but with so many countries holding their savings in American government bonds, there is a loss of confidence in the United States.

The dollar could trigger a global crisis that would affect every nation in the world if the US dollar hyperinflated. The implications are really profound because you can go to a country like Zimbabwe and see the impact of hyperinflation, but what happens when the world's reserve currency hyperinflates? I have never been in this situation before, it is impossible to predict, you know what the outcome will be, but logic suggests that if the US dollar hyperinflates, most, if not all, of the world's currencies will also be in serious economic trouble because at the end of The day the reserves of all these currencies are basically dollars, there have been dozens and dozens of currency collapses since the end of World War II and they are all a result of the same thing, you know, bad policies, bad management and the United States being applying right now. bad policies the central bank is doing a bad job managing the currency as a consequence it is inevitable that the dollar will collapse it is on this path that I call the graveyard of fiduciary currency the markets the private sector however the people want to decide it they suddenly classify from moving in a herd instinct, they suddenly understand things and this can happen overnight, I mean it can really happen, so I think the timing of this is very difficult, if impossible, for us to say, but I would point out that there is a danger that I use a metaphor: one morning we will wake up and discover that we are in a very different world.

It may not be a morning, it may be a week, a month, I don't know, but when it happens, I think it will happen pretty quickly and we won't really be able to predict when hyperinflation may be one of the several scenarios the world faces. today, but history has shown us that every time a nation tries to manage its economy using an artificial fiduciary system, the end result is always the same disaster. a proven 100 percent failure rate, there is no exception to this, fiat currencies always fail and then 40 years ago we tried this great experiment where all the currencies in the world

became

fiat at the same time, when we ended up with the Bretton Woods system that the world is going to have. to break free from this dollar-based monetary system because if you want to back your currency you have to back it with something, you can't back it with anything.

You always think of that old Superman movie in the first one where Lois Lane I know she falls off the top of the building and Superman catches her and he's like I've got you, don't worry, I've got you and she's like, well, you've got me. To me, who has you, well, that's the dollar, who has the dollar, it's not Superman the dollar. It cannot fly on its own the dollar used to be backed by gold it was gold that had the dollar it is as if everyone had tied their ships to the titanic of currencies and that is why we are all going to sink if there is a loss of confidence in the dollar American and I think there will be in this decade has happened before history simply repeats itself so we will probably have to go back to something that instills confidence and what instills confidence is gold, the only real solution is To go back to a really solid currency, real money with something behind it, it doesn't have to be gold or silver, but historically that's always been what societies have chosen through trial and error, they've tried this, they've tried that, they always end up. choosing gold or silver, I think it's probably a clue that it's not a bad way to go with all the uncertainty the world is facing today, a return to a gold backed economy would seem logical so why isn't there not even a discussion? about such a return the answer is as simple as it alarms the people at the top those who have been benefiting from the current Ponzi system do not want the ride to end many now believe that the price of gold and silver have been artificially suppressed To make it seem Less desirable as a unit of global exchange, what governments try to do is keep the price of gold low because by doing so the dollar appears worthy of being the world's reserve currency, when in reality we know the dollar is not.

From that esteemed position because it is being so mismanaged by the United States, groups like the Gold Antitrust Action Committee or GATA have been tracking what they believe is the deliberate suppression of gold and silver prices through a variety of dubious means in 12 years, having accumulated nothing but evidence to support gold price manipulation would be like talking about a murder trial when the jury would say guilty beyond a reasonable doubt, but you know you have to present every point of evidence and how it all fits together. There are numerous methods they use to suppress the price of gold, some are harder to prove than others, but some of them are fully reported and those are central bank sales between 1999 and 2002, the Bank of England foolishly sold a massive amount of Britain's gold reserves at an average price of $275 an ounce the profits were spent buying euros and US dollars the governments of Canada, France and Switzerland, among others, were also sellers of their gold at that time we know that central banks used to sell 400 tons every year, why? they were selling 400 tons, obviously, it was the dumbest decision anyone could have made in the decade, by far the dumbest, but they did it every year.

They sold 400, it's 400. I mean, now you know that gold goes from 300 to 1600, almost 17, or why? sell the gold because they were trying to keep the price down, so it was a coordinated thing to keep everyone focused on believing in the coins. Alan Greenspan, in testimony before Congress, admitted that they were manipulating the price of gold when he said the world's central banks were ready. lease gold in increasing quantities, meaning they were already doing it, in case the price of gold increased, meaning the goal was to suppress the price of gold, so they were already doing it and their goal was to suppress the price of gold, he admitted in testimony before Congress, although central banks can legally sell their country's gold holdings, they may also have been suppressing the price of gold using some other quite questionable means.

Some researchers believe that Western central banks have been lending their country's gold to bullion banks. An institution that sells gold with the intention of repurchasing it in the future at a cheaper price with the proceeds from this sale. These banks are known to purchase US government bonds, although this is not a problem in itself. Central banks report on gold. that they have and the gold that they have lent to these bullion banks as a single item, so while a central bank may claim to have a certain amount of gold in reserves, much of that gold may be lent to a bank of bullion that the gold may have sold. in exchange for government bonds, a means of intervention in the goat market is to loan gold to the so-called bullion banks and they sell it on the market, this suppresses the price as if the central banks sold it directly, but this landing no As it appears in the central banks book, a few years ago the US Treasury changed the way they account for gold and account for some of their receivables and inventory as a single item, so They account for what they really have and what people owe them is the same and that's basically illegal accounting, it's fraudulent, but why work so hard to keep the price of gold and silver down?

Why Healthy Gold and Silver Prices Threaten to Collapse the Ponzi Scheme? There is this competitive relationship between gold and national currencies because gold is the only competitor of a national currency, you know that gold is money and these national currencies are money substitutes that circulate in place of gold. Fiat money gives power to the government. Real money keeps power with people because when you have real money. The government's money is limited, it can only spend what it taxes and the public will resist taxes, but if the government can simply print and borrow, there is much less resistance, so it is much easier for the government to grow when You can promise something for nothing and then that's what they do and gold is what protects people from reckless government policies.

Gold is the companion of the government. The government wants to be able to do whatever it wants. Gold stands in his way. So yes, gold is an enemy. A big government, but it is a friend of freedom it is a protector of the individuals of the government gold is a competitor of the dollar when it rises too much it is a threat to inflation it is a barometer of Isaac's well-being look at gold screaming now and the world is falling apart so it draws attention to how bad things are, so the US government has an interest in Wall Street, the politicians keep the price down.

Wall Street doesn't want you to go to a coin dealer to buy gold and silver coins. They want to sell you paper. The government wants. sell your newspaper, so I would say it's the government and Wall Street gold in the hands of the people is the way to control the government. Governments can't create money out of nothing if it's gold, they can only create paper out of nothing if they can. They create paper out of nothing, they can use it to wage wars or they can use it as a political device to enrich their friends and as a consequence governments have been fighting gold for the entire century despite this desire to keep gold and silver in the market.

Recent instability in the markets has seen demand for gold soarand silver, which in turn has exposed a deeper problem within central banks. The problem that the Western central banks now face is that they have sold an enormous amount of gold to try to suppress the price of gold now they are embarrassed by the fact that the central banks that were not in that original cartel are now very enthusiastic buyers of gold and we're talking about the Chinese, we're talking about the Russians, we're talking about the Indians, we're even talking about Mexico, all these unconventional central banks that are not part of, if you like the main members of the bank of international payments club You know, the little guys in that context are collecting hundreds of tons of material to suppress the price of gold.

Western central banks have had to sell or lend their countries' gold reserves, but because the gold they sell rarely comes out from their vaults, no one can be sure that they are not selling or lending more gold than they physically own. If this is true, then this could be one of the largest scams ever perpetrated in history, a massive scam perpetrated not by individuals but by entire governments. This central bank gold, most of it is in the New York Federal Reserve and the Bank of England, so it's in the basement of these two places. and it doesn't really move when a country is doing an international agreement, they basically take a bar out of this pile and put it in another pile or they just change the labels or it's just an entry in the book, it's accounting, except there have been some nice creative accounting about all this gold and I highly doubt that I don't believe it's all there.

The question remains whether everyone, especially big players, who wanted all their goals to be fulfilled at the same time, is physically impossible to do with most of the gold. that exists on the planet there is more than one claim on each ounce of gold there are several people who think they have titled that same ounce of gold I have said it many, many times over and over again if you can't hold onto it, no You don't own it, The game can't go on forever because sooner or later people are going to demand their physical gold or silver and that's already happening.

The lack of responsibility in gold sales by Western central banks has not been a concern until now. But as more and more gold buyers have begun to demand physical delivery, central banks that have oversold or lent out their country's gold will find themselves caught in a major scandal. The result of such fraudulent activity means that gold buyers, whether individual pensions or hedge funds. or even entire nations could be scammed out of billions of dollars. It's a bit similar to the Murdoch scandal here at Fox News in London from the Made-Off scandal. I mean, it's a very incessant relationship between the press and the big funds and the politicians and unfortunately these. things are not fixed until they explode madoff exploded murdoch exploded the gold market is going to explode and I think it will be a bigger scandal than any of them because it is a global financial situation the only trick that the politicians in power use today they know it 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, as long as we keep waiting for them to be our leaders and solve the problem, how can we wait? anything else, that's the only trick they know because the only trick, the other trick that exists, is to stop inflating and go back to a solid currency and that would say they say oh no, we can't do that. and the reason why That they cannot do so is because it would put them all out of business, they would not be able to continue with the Ponzi scheme, even if cracks are forming in the current financial system, the only solutions offered by governments are, in fact, simply more walks by 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;

You can't 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 these government Ponzi schemers who are inflating the currency and say, well, let's solve the crisis. another way because they don't know how, so the solution is to stop depending. on the same people with the same mindset to solve our problems if governments don't go back to the gold standard individuals can go back to the gold standard on their own politicians can create fiat money at will that's why it's fiat so why would you want to? putting your faith in it, trusting politicians and bureaucrats and central bankers when you can simply have something real that has intrinsic value that is scarce and will continue to be scarce.

Would you rather have gold or a fiat currency and we'll see what it is? is happening in the world and obviously people are starting to realize that gold is likely to hold its value much longer than the piece of paper. It's not that the price of gold is going up, but that the value of the dollar is going down. The price remains constant in terms of human effort and purchasing power. With an ounce of gold today you can buy the same thing that was bought 2,000 years ago. An ounce of gold today is approximately equivalent to as much human effort to extract and refine the same human effort that was needed to do certain things 2000 years ago it is the human effort equation that maintains stability how much effort is needed gold is financial insurance and What happens is that you own it because you want to be protected and you know that you just have to have it. is if you want to have or sleep at night because there is nothing else you know if some catastrophic event occurs and we have seen them how you are going to be protected the current financial system may be dying but where there is chaos there is also opportunity As the old model falls apart, the door can open to great prosperity.

It's clearly not the end of the world. It's probably not even the end of America. For many countries, this will be the beginning of an economic boom. A giant burden is being lifted. on their shoulders where the world no longer has to lend trillions of dollars to Americans so we can continue consuming what we don't produce when this comes to an end the world will benefit so it's not something we should fear and we should embrace. If as a world, this is the largest transfer of wealth in history, if we have a global currency crisis, then we will see a transfer of wealth greater than has ever occurred in all of history, it will all happen at the same time, therefore, It is the greatest opportunity. we have millions of people now getting interested in what money is, what money is, what it should be and they are learning, especially many young people, that the sun will rise tomorrow like it has done a million times before travelers wake up and travel to their offices to begin the day's work farmers will tend their crops and construction workers will build new infrastructure but will the world they live in remain the same in 2008 the world received a wake up call the biggest financial crisis in La Human history was delayed by the same bad decisions that caused it in the first place.

What that massive bailout gave us was not a solution but simply time for the people responsible to squeeze the last dollars out of a dying system, but also for those able to see the edge of the cliff approaching when it was time to protect themselves and their families. of the impending fall and, in the end, that time may prove to be the most valuable commodity of all. There are these brief moments in history where the safe haven asset over the last 5,000 years simultaneously becomes the asset class that has the largest individual potential gains in purchasing power.

We are in one of these cycles right now where money is the best investment. Get out of the currency, buy money and you will probably be able to buy. There will be much more to come, but the best thing people can do is take their own responsibility to educate themselves financially. This is the most important. Don't let the banks, brokerage houses and others guide everything. your decisions find out what is happening for yourself empower yourself