What Is Money?

The foundation of economics is money. It is the economic water in which we live our lives. We even call it currency; it flows around us, carries us in ebb and flows, but drowns those who are not careful. We use it everyday in nearly every transaction we conduct. We spend our lives worrying, working, saving, and spending it. It compromises our morals and defines our social status. People are willing to cheat, lie, steal, fight, kill and die for it. Undeniably, money is an integral part of life, but what is it? Where does it come from? How is it created? What determines its value? Who controls it? What is hyperinflation? It is remarkable how very few people can answer these basic questions about money. You would think we would be taught these important facts in school. But no, and there’s a reason for that. If everyone knew, we would all be buying gold. The dollars we use are actually just a tool guaranteed to enslave us. Commoners buying gold is exactly what the Federal Reserve Bank does not want happening.

The Federal Reserve and our Government

The New York Fed private gold vault. No, this is not America’s gold. Sure they have some gold, and you? (photo credit: Federal Reserve Bank of New York)

The Federal Reserve is not part of our ‘federal’ government and there are no ‘reserves’ for “we the people”, it is a private, for profit bank. From the name, to the deepest inner workings, the Federal Reserve Bank misleads us. The working principle of this bank is actually simple. Once you understand the foundation of the system you can positively conclude with mathematical certainty that dollars are destined to fail by way of hyperinflation. Fiat monetary systems are nothing new. They have been used dozens of times all though history. Fiat means ‘let it be done’in Latin. We use the word to describe the nonconvertible paper money made legal tender by  government decree. Historically, fiat monetary systems have failed every-single-time. Some argue that gold has failed us too. They are wrong. Gold is abandoned to save over-spending governments from going bankrupt and falling from power. After all, you can’t just print more gold to pay your debts. Make no mistake, every government does eventually fall from power. We are on the same path as those historical fallen countries. The establishment motto might as well be: “This time is different”. But you should know better – it’s not different this time. The Federal Reserve has failed to predict every single recession. They want you to believe the system is perfect. How often do governments, politicians or banks admit they are wrong? When something does goes wrong, they’ll find a black swan – something they conveniently could have never predicted. They will blame the illness on the symptoms, not the cause – typical politics.

They’re in Control

The US federal government is BORROWING about $1 million per minute. This is what inflation looks like.

The ability to print unlimited money means the Fed has full control over much of our lives. They keep a lid on everything from the top down. The bank controls media and most of the politicians too. The Federal Reserve will claim the money is failing because people are ‘hording gold’. That’s untrue, their money would fail no matter what we buy. I have personally warned people in my day-to-day life, as do others. Problem is, nobody cares! We end up being seen as cynical conspiracy-theorists. These same people will expect us to surrender everything after the banks have stripped them of everything. They will be convinced that I’m a selfish, greedy person, and part of the problem. They feel envious, having missed the big opportunity. Good people like us will be blamed for causing their poverty. Don’t be one of these people, and don’t let them turn us against each other!

Gold Price: Only One Way to Go

Gold production has nowhere to go but down. All the easy gold is gone. Within 20 years it will be so hard to dig out that it might not be worth it.

More than half of all humanity’s gold has been mined in the last 50 years. Our largest deposits are depleting fast, and new discoveries are rare. Long gone are the 100 mile gold reefs in South Africa and huge California nuggets. Most of the gold left to mine exists as trace amounts, buried in vast, remote areas of earth. Indeed, most of the easy gold is gone. Even Goldman Sachs analyst Eugene King estimates we have only “20 years of known mineable reserves of gold.” The US Geological Survey and many others estimate about the same. Gold is rare, and about to get a lot rarer as the population grows and new supply dries up. Today there is just about 24 grams of gold per person. That’s about 5 gold rings for everyone on earth. Knowing that gold is really this rare, the bank propagandists falsely state, “There’s not enough gold in the world to act as money”. Well duh, there’s only $7.6 trillion dollars worth of gold in the world, I can agree that’s not enough. The solution is simple: gold has to go up in price. If gold goes up 20 times higher, it’s worth $156 trillion. Gold will go as high as it needs back our dollars once again. Otherwise they’ll just print money as they need, each time making it worth less, eventually worthless. Remember what your grandparents said they paid for things? Hyperinflation happens exponentially over time – the closer we get to the end, the faster our money loses value. Another thing the bank propagandists like to say is, “Can you imagine carrying around a pocket full of gold coins and trying to buy a loaf of bread?” I hear this parroted by a of lot people. It’s one of the most ridiculous things I have ever heard! We wont be using actual gold coins to buy things. We will use paper money, except that it will be backed, and redeemable by gold in the treasury vault. Wow, this isn’t even a new idea, as we started that over 100 years ago…I can’t believe how naive and gullible people are. If everyone were as smart as you and I, we would have kicked this Federal Reserve Bank out long ago.

Why will it Fail?

Hyperinflation will push the graph line to $0, worthless, in very short order.

We know the end-game is hyperinflation because of the very way our monetary system works. Basically, The Federal Reserve prints the money and then loans it to our government with interest attached. Of course there’s more to it than that, but it’s all irrelevant to what I’m about to tell you. Since the US is loaned money ‘with interest attached’, we can never repay it, it’s impossible. Look at it this way: They create $1,000 and send it off into our economy. It circulates around for awhile, but eventually, that money needs to be paid back. One problem, we owe more than the initial $1,000 because there is interest to pay…it might be $1,050 that we owe back. How can we repay with what doesn’t exist? We have only $1,000, not $1,050. There is no slick loophole to fix this problem. The only way this keeps working is to constantly print exponentially more money in order to service ever higher debt, which will eventually turn into hyperinflation. Dollars are actually debt based. “Bank Note”, just like a car note, to pay on your car. Or “Dollar Bill”, a bill, just like you get from the electric company. Our system is completely backwards and stealing from us, and it’s all right out in plain sight. The Federal Reserve Bank is a for profit organization, this little bit of interest is how they are taking over. It’s like the casino, if you play long enough, the house gets all the money. The Reserves total assets are worth $4.486 trillion. You won’t see that on the cover of Forbes anytime soon.

The End?

Notice how as the price of precious metals goes down, holdings go up? JP Morgan isn’t the only one buying. They are suppressing the price on the rigged paper market while they buy up the real thing.

Vladimir Putin admires a gold bar. People like this want to see us in poverty, and this is what they use to do it.

Banks all across the world have recently turned from being net sellers of gold to net buyers of gold. Last year they added 483 tonnes collectively. Russia and China accounted for most of that activity. Everything is going exactly according to plan, for the banks. Our country was ‘saved’ from going bankrupt by removing the gold backing before. But some time has passed since ‘being saved’, and we became complacent. Now banks are trying to buy all the gold and silver possible and we are hardly going to notice. They must keep doing it slowly and inconspicuously though, as not to spark a buying frenzy among an alarmed populous. The more time they can keep fiat dollars working in order to accumulate gold, the better. But undoubtedly, our fiat money will finally realize destiny and turn worthless by hyperinflation virtually overnight. The world will be thrown into panic and chaos, not unlike the stock market crash of 1929. They will conveniently have a solution all ready to roll out, but we must act fast. There is a new money, backed by gold and silver. They will show us what it looks like on TV. The computer systems are ready to transfer this new money into our bank accounts, just like the old stuff. It’s not too different, except that it’s backed by gold. The public will remember the few that warned them: The fiat dollar will die, it was a scam all along – buy gold. The public will be familiar with a gold standard, as we had it before. Plus those smart people predicted this, and they said gold works good. News anchors will now proclaim, “it’s better than sliced bread”. We accept the new gold-backed money with enthusiasm. Actually, it’s the only option, and it’s obvious we need this. For awhile we sleep easy, knowing that nobody can print all they want and hyperinflation can’t happen again. We will be eager to work and earn the new dollars. Soon reality sets in. Jobs are hardly paying anything, less than ever! The banks have all the new money, and the public so little…they are not giving it out like they use to. No one can even get a loan! He who has the gold makes the rules, and with so much gold, banks will have total control. It will be their monopoly, we have to take what they’ll pay, or nothing at all.