# Money vs Currency: The Hidden Difference | Hidden Secrets of Money Ep. 1

https://www.youtube.com/watch?v=DyV0OfU3-FU

[00:04] your true wealth is your time and
[00:05] freedom money is just a tool for trading
[00:08] your time it's a container to store your
[00:11] economic energy until you're ready to
[00:13] deploy it but the whole world has been
[00:15] turned away from real money and has been
[00:17] fooled into using currency a deceitful
[00:20] impostor that is silently stealing your
[00:22] two most valuable assets your time and
[00:26] your freedom welcome to the rabbit hole
[00:32] we are entering a period of financial
[00:34] crisis that is the greatest the world
[00:36] has ever known the wealth transfer that
[00:39] will take place during this decade is
[00:41] the greatest wealth transfer in history
[00:44] wealth is never destroyed it is merely
[00:46] transferred and that means that on the
[00:48] opposite side of every crisis there is
[00:50] an opportunity the great news is that
[00:54] all you have to do to turn this crisis
[00:56] into your great opportunity is to
[00:59] educate yourself S I believe that the
[01:02] best investment that you can make in
[01:03] your lifetime is your own education
[01:07] education on the history of money
[01:09] education on finance education on how
[01:12] the global economy Works education on
[01:15] how all of these guys the central
[01:17] Bankers the stock market how they can
[01:19] cheat you how they can scam you if you
[01:22] learn what is going on and how the
[01:25] financial World works you can put
[01:28] yourself on the correct side of this
[01:30] wealth transfer Winston Churchill once
[01:33] said that the further you look into the
[01:35] past the further that you can see into
[01:37] the future this program is all about
[01:40] creating your own crystal ball being
[01:42] able to gaze into the future being able
[01:45] to change this crisis the greatest
[01:47] crisis in the history of mankind into
[01:50] your great opportunity
[01:53] [Music]
[02:06] the hidden secrets of money some of them
[02:08] are hidden in plain sight they're like
[02:10] right in front of you uh the way the
[02:13] monetary system works is something that
[02:15] isn't actually hidden away from all of
[02:18] us it's out in the open but it's complex
[02:21] and people just don't they can't see how
[02:23] it works it's hard for them to imagine
[02:26] that we're living in such a hoax others
[02:30] are meant to be secret but the truth is
[02:32] slowly coming out like the Federal
[02:34] Reserve being a private Corporation and
[02:37] not really part of the US government but
[02:40] when I started studying this uh what I
[02:42] found was that there was no place that I
[02:45] could Point people to where they could
[02:47] get it all in one spot and so I
[02:50] basically decided to write my book about
[02:52] it and consolidate monetary history
[02:55] economics the markets uh fundamentals of
[02:58] gold and silver there there's a lot of
[03:00] smoke and mirrors in economics and I've
[03:02] sort of made it my job to lift the fog
[03:05] for
[03:12] [Music]
[03:15] people welcome to Egypt this is where it
[03:18] all began roughly 5,000 years ago the
[03:22] Egyptians started using gold and silver
[03:23] as their predominant form of currency
[03:26] but it was not yet money the pieces of
[03:29] gold and silver that they were using
[03:31] were odd sizes and weights odd purities
[03:35] so it still was not interchangeable
[03:37] where each unit is the same as the next
[03:40] this meant that nothing really had a
[03:42] price yet you couldn't put a price of so
[03:45] many coins on something because they
[03:47] didn't have coins yet trade was still
[03:50] difficult it was still a guessing game
[03:52] when it came to the exchange of
[03:55] values one of the reasons that we are in
[03:58] the financial man that we are today
[04:01] globally is that people do not
[04:03] understand the difference between
[04:04] currency and money currency is a medium
[04:09] of exchange a unit of account it is
[04:12] portable durable divisible and something
[04:15] called fungible fungible means that each
[04:18] unit is the same as the next unit a
[04:20] dollar in my pocket buys the same amount
[04:22] as a dollar in your pocket money is all
[04:25] of those things plus a store of value
[04:28] over a long period of time even
[04:31] financial planners Bankers your
[04:34] accountant they don't understand the
[04:36] difference between currency in money the
[04:39] currency in your pocket is a medium of
[04:42] exchange it's a unit of account because
[04:45] it's got numbers on it it's somewhat
[04:48] durable it's portable it's divisible in
[04:51] that you can make change and it's
[04:52] fungible a dollar in my pocket buys the
[04:54] same amount as a dollar in your pocket
[04:57] but because governments can print
[05:00] more and more and more of it and dilute
[05:03] the currency Supply it's continually
[05:05] transferring wealth out of your pocket
[05:07] out of your bank account to the
[05:10] government and to the banking
[05:12] system the reason that gold and silver
[05:15] are the optimum form of money is because
[05:18] of their properties it's an easy medium
[05:21] of exchange because gold and silver
[05:23] store a large amount of value in a very
[05:25] small area it's a unit of account pure
[05:29] gold has the same value all over the
[05:32] planet so an ounce of gold buys the same
[05:34] amount here in Egypt as it would in
[05:37] China or in the United States it's
[05:40] durable the same gold that Egyptians
[05:42] were using in trade 5,000 years ago is
[05:45] still here with us today it does not
[05:48] corrode it's divisible you can make
[05:50] change with it it's very portable you
[05:53] could use something like oil as money
[05:56] it's just that you can't carry around a
[05:58] barrel of oil on your back
[06:00] it's fungible pure gold is the same
[06:03] wherever it is on Earth pure silver is
[06:06] the same wherever it is on Earth it's
[06:08] limited in quantity that's the reason
[06:10] that it maintains its purchasing power
[06:12] governments cannot print it over the
[06:15] last 5,000 years only gold and silver
[06:17] have maintained their purchasing power
[06:20] there have been thousands upon thousands
[06:22] of Fiat currencies currencies that are
[06:24] unbacked by gold or silver and they have
[06:27] all gone to zero it's a 100% failure
[06:32] rate well fiat currency of course is um
[06:36] a currency that is exists at the dictate
[06:39] or by Fiat from a from a government you
[06:42] see they have their printing presses and
[06:44] the paper money rolls off the printing
[06:46] presses and then they give that the Fiat
[06:49] designation which makes the currency
[06:52] official it's just worthless paper but
[06:54] when Ben banki gives it the Special sign
[06:56] and they have the cult meeting at the
[06:58] Federal Open Market commit committee
[06:59] meetings it suddenly becomes
[07:02] currency if you look at what's really
[07:05] going on it's it's a con game and so
[07:07] there's confidence well the Federal
[07:09] Reserve is very forthright about what
[07:11] they're doing if you read their websites
[07:13] they'll tell you it's a confidence game
[07:15] they tell you that there's no intrinsic
[07:18] value in their money they'll tell you
[07:20] that they print it back by absolutely
[07:22] nothing they actually display all these
[07:24] facts but if you tell somebody in the
[07:27] public that this stuff is created out of
[07:29] thin air there's no backing whatsoever
[07:31] it's absolutely worthless it's about as
[07:33] valuable as Monopoly money they'll look
[07:35] at you like you're
[07:37] nuts is there an example throughout
[07:40] history of a fiat currency a piece of
[07:43] paper that's unbacked by anything
[07:45] surviving short answer no long answer no
[07:50] and here's what when Addison Wigan took
[07:53] over at the Daily Record when I got
[07:54] cranked up uh Bill wner asked him to
[07:56] catalog all of the Fiat currencies
[07:58] throughout history happened to each of
[08:00] them Addison dutifully went to work
[08:04] within a short period of time he had
[08:06] gone through the alphabet all the fat
[08:08] currencies that started with the letter
[08:10] A were done they all went to zero he was
[08:13] halfway through the letter b and all the
[08:14] Fiat currencies that started with the
[08:16] letter b and there were
[08:18] 600 of them in just the first letter and
[08:21] a half of the alphabet and every single
[08:25] one of them went to
[08:28] zero every One 600 Fiat currencies that
[08:32] start with the letter a and half of the
[08:34] ones that start with the letter B are
[08:36] 600 of these things not one ever came
[08:41] close you think this one the United
[08:42] States dollar is going to be the first
[08:44] one after all that I don't think so no
[08:48] no currency fat currency has ever
[08:49] survived
[08:52] [Music]
[08:54] none the thing about money is there
[08:56] actually is a fairly well accepted
[08:58] definition of what money is the question
[09:00] is as you apply that definition to
[09:02] particular things that are people claim
[09:04] to be money do they fit the definition
[09:06] we'll just take the paper dollar for
[09:08] example how well does it perform those
[09:10] functions well store value uh the dollar
[09:12] has lost 95% of its purchasing power uh
[09:15] since the creation of the Federal
[09:17] Reserve in 1913 so not very good as a
[09:19] store of value one of the things I do is
[09:21] just a way to get the audience's
[09:23] attention is I have a slide and there
[09:25] are three pictures on the slide one is a
[09:27] pile of Monopoly money the other one is
[09:29] a pile Federal Reserve notes uh what
[09:31] Americans would call paper money on the
[09:33] other one is a solid gold American Eagle
[09:36] 1 oz coin and the title of this slide is
[09:39] which of these is not like the other and
[09:40] if you know the show Sesame Street or
[09:42] you have children who watch it it's one
[09:44] of the favorite vignettes in Sesame
[09:46] Street and what it really is is a kind
[09:47] of IQ test for 5-year-olds they're
[09:49] supposed to look at the three things and
[09:51] look at characteristics and find the one
[09:52] that's not like the other well I've
[09:54] shown this slide to um groups of you
[09:56] know ivy league university professors
[09:58] and I've also shown it to
[10:00] uh you know children you know kind of 5
[10:02] years old my nieces and nephews and so
[10:04] forth uh and when the uh professors look
[10:06] at it they say well um clearly the uh
[10:09] the dollars are not like the others cuz
[10:11] gold has no role as money and Monopoly
[10:14] money is junk and the American dollar is
[10:16] a store value so that's not like the
[10:17] other but the children look at it and
[10:19] they say well the gold coin is not like
[10:21] the other because the other two are just
[10:22] piles of paper and the gold coin is
[10:24] clearly something different so my
[10:25] question to the audience is who's
[10:27] smarter a 5-year-old or a i
[10:30] professor before World War I each note
[10:34] that a treasury issued would say that
[10:36] there have been deposited with the
[10:38] United States Treasury $20 in gold coin
[10:41] payable to the bearer upon demand the
[10:43] money was in the vault the currency was
[10:46] a note they gave you that was a claim
[10:48] check only a claim check on the money
[10:51] the same as if you go to the dry
[10:53] cleaners and you give them your shirt
[10:55] and they give you a claim check for your
[10:57] shirt the value is is that shirt at the
[11:00] dry cleaners not the piece of paper that
[11:02] says that you own that shirt so our
[11:05] currency that circulated was the paper
[11:08] US Dollars and they were claim checks on
[11:11] money the next hidden secret is the
[11:14] difference between currency and money
[11:17] money must be a store of value and
[11:19] maintain its purchasing power over long
[11:21] periods of time as we progress through
[11:24] this series you'll learn that National
[11:26] currencies are really a tool used by the
[11:28] government in the financial sector to
[11:30] leech away your time and your freedom by
[11:34] stealing your purchasing power so rather
[11:36] than storing your economic energy
[11:38] currencies
[11:40] leak now compare that to the gold and
[11:43] silver the Egyptians were using like I
[11:45] started with it still wasn't money
[11:47] because it wasn't interchangeable yet
[11:49] but they were on the right track as gold
[11:52] and silver have proven over thousands of
[11:54] years to be the ultimate store of
[11:57] value gold is only formed when a star
[12:00] explodes a supernova and it stays around
[12:04] forever this is one of the properties
[12:06] that make it the ultimate
[12:15] money you know people are amazed that
[12:17] after 5,000 years the pyramids are still
[12:21] here but what I'm more amazed at is that
[12:25] the currency that the people that built
[12:27] this were using that currency that gold
[12:29] and silver that they were using in trade
[12:31] on a daily basis is still around
[12:34] today it may have been melted down and
[12:37] re-refined and it's in a coin or a bar
[12:40] or in some piece of jewelry but it's
[12:42] still with us today and it's still
[12:45] purchases
[12:48] something yes it is the ultimate money
[12:50] because there is nothing else even in
[12:52] the same league it's divisible it's
[12:55] permanent it's store of value it's
[12:59] in unit of accounts got everything you
[13:01] want out of money but it doesn't go away
[13:06] and it can't be increased that is what
[13:08] makes gold the most beautiful money of
[13:11] all what more could you ask out of a
[13:14] money it keeps governments under control
[13:17] you can maintain a solvent system
[13:20] governments don't like gold at present
[13:22] because they're getting away with the
[13:24] Fiat currencies and they'll do
[13:26] everything they can to discredit it as
[13:28] an asset class I mean my goodness gold
[13:30] is uh outperform the Dow Jones
[13:33] Industrial Average in each of the last
[13:35] seven years uh yet it's not considered a
[13:38] legitimate asset class why again it's
[13:41] the fear that maybe gold will be imposed
[13:44] on the system that it will constrain
[13:46] government ability to spend Beyond its
[13:49] means they can't print it they can't
[13:51] print it no the proper definition of
[13:55] inflation I use Milton fredman's
[13:57] definition in inflation is an expansion
[14:00] of the currency Supply deflation is a
[14:03] contraction of the currency Supply if
[14:05] you expand the currency Supply
[14:07] eventually prices will rise and if you
[14:11] contract the currency Supply eventually
[14:14] prices will
[14:16] fall this is a pool but it's not a pool
[14:19] of water this is a the currency pool and
[14:23] these are prices and if you expand the
[14:25] currency Supply prices like a sponge in
[14:28] water have have to rise to suck up the
[14:30] excess
[14:31] currency governments never stop printing
[14:34] more currency and adding currency to
[14:38] circulation therefore prices keep on
[14:41] going up not because the stuff that
[14:43] you're trying to buy is changing the
[14:46] real estate doesn't change what has
[14:48] changed is the currency purchases less
[14:51] and less it's the currency going down
[14:53] not prices going up the truth is what we
[14:57] have that makes our world work right now
[14:59] is a big story if it's real it's all
[15:02] just promises and if you think about it
[15:04] that's how currency began to work in the
[15:06] beginning you know before we had
[15:07] currency we had B I'll give you three
[15:09] coconuts and you give me four fish
[15:11] because that's kind of a fair exchange
[15:13] on coconuts to fish but that got
[15:15] complicated so we had to invent this
[15:16] thing called money to be a divisible
[15:18] portable medium of exchange and
[15:20] challenge is is that we lost that a long
[15:23] time ago when we lost having things of
[15:25] value be our currency and now we have
[15:27] this thing called numbers and but trust
[15:29] me it is not real it's a big madeup
[15:32] story one of the biggest make Bel
[15:34] stories ever is called quantitative
[15:37] easing which sounds complex but it's
[15:39] really just a smoke and mirrors term for
[15:41] currency creation QE started with the
[15:44] banking bailouts back in 2009 this
[15:46] currency was created out of thin air and
[15:49] then given to the banks who paid
[15:51] themselves record bonuses in reward for
[15:53] crashing the world economy this is a
[15:56] global phenomenon but all you have to
[15:58] remember for now is that whether it's QE
[16:01] bailouts or stimulus programs these are
[16:03] all just Voodoo Hocus Pocus terms for
[16:06] increased currency
[16:09] creation I believe gold and silver will
[16:11] reassert themselves as money and when
[16:14] they do there just isn't enough and
[16:17] their purchasing power is going to go up
[16:21] many many many
[16:24] times Egypt is an amazing place there's
[16:27] a franticness about it and utter chaos
[16:31] especially like the traffic but when it
[16:33] comes to like all of the merchants that
[16:35] are trying to get every last dime out of
[16:37] you you get fleeced to the point
[16:41] where you come back with an empty
[16:45] [Laughter]
[16:47] wallet but you know
[16:49] what they're amateurs compared to Wall
[16:55] Street in the past several years I've
[16:58] I've spoken in many many countries about
[17:00] the crisis that's coming and a lot of
[17:02] people think that they're going to be
[17:04] okay in their country that it's only
[17:05] going to happen to the United States or
[17:07] maybe the United States in Europe uh but
[17:09] what they don't realize is that this is
[17:11] a global phenomenon I got to show you
[17:13] something here this
[17:17] is uh base currency in the United States
[17:20] this is the number of paper dollars that
[17:22] exist basically it took 200 years to go
[17:25] from no dollars in existence to $825
[17:29] billion and then we had the bailouts and
[17:32] then we had qe1 quantitative easing one
[17:36] then QE2 and then we had qe3 and then
[17:40] qe4 and then soon we're going to have QE
[17:42] 57 and QE
[17:45] 382 and uh it isn't just here this is
[17:50] what the Canadian currency Supply looks
[17:53] like this is
[17:56] Australia South Africa
[17:59] Russia now this starts out in just the
[18:02] year 2001 and this is like 18 times more
[18:06] currency in
[18:07] existence in a little over a decade uh
[18:11] here's Singapore same story look at that
[18:14] since the crisis just
[18:17] bam
[18:19] India China every government on the
[18:22] planet is doing this insane deficit
[18:25] spending and expanding their currency
[18:27] supplies uh doing bailouts and history
[18:31] shows that there is no example of this
[18:33] turning out well it is sometimes amazing
[18:37] that we haven't experienced more
[18:40] inflation than we have if they keep
[18:43] expanding the money supply so vastly why
[18:46] aren't our prices growing faster than
[18:48] they really are and the answer is that a
[18:51] good chunk of the money that the FED
[18:53] created has been shipped overseas uh I
[18:55] remember early in my research I heard
[18:57] this expression that the Americans have
[18:59] exported their inflation I thought what
[19:02] is that how can you export your
[19:03] inflation put it in a box and send it
[19:05] what do you do well now I understand you
[19:07] export your inflation by simply sending
[19:10] all these dollars that you created to
[19:12] these other countries and then they send
[19:14] you their refrigerators and their cars
[19:16] and whatever their TV sets so you get
[19:18] hardware and they get little pieces of
[19:20] paper it's a great deal for the American
[19:22] people for a while for a while sooner or
[19:26] later all of those pigeons come come
[19:28] home to roost when the time comes as it
[19:32] looks like it's now coming when the rest
[19:34] of the world is saying uhuh we don't
[19:36] want to play this game anymore Uncle
[19:37] Sam's dollars are just becoming
[19:39] worthless there're too many of them
[19:41] we've got to find something else other
[19:43] than American dollars then those dollars
[19:46] start to come back to America people
[19:48] that we don't want them anymore what do
[19:49] we do with them once this revs up and
[19:52] we've got this this little trickle of
[19:54] money coming back that we previously
[19:57] exported when once it becomes a flood
[20:00] and it starts to rush back now we are
[20:03] getting our former exported inflation
[20:06] brought back to us and then we'll see
[20:08] the quantity of money inside the United
[20:10] States grow much more rapidly even than
[20:13] the Federal Reserve can create it
[20:15] because we're getting a previous money
[20:16] back and uh that's when we will really
[20:19] see the tanking of the US dollar in
[20:22] terms of what it will buy during the
[20:24] second round of quantitative easing
[20:26] Global food prices went up 60 % and this
[20:30] created a humanitarian disaster for the
[20:32] two billion people on Earth who live on
[20:35] less than $2 a day these people were
[20:37] hungry to start with they became
[20:39] hungrier and some of them started
[20:41] overthrowing their governments in North
[20:43] Africa and around the Middle East so
[20:46] quantitative easing was the spark that
[20:48] ignited the Arab Spring so that's that's
[20:51] it when you create money you get some
[20:53] sort of inflation it just depends on
[20:56] where the inflation goes it's all going
[21:00] down down down peasants
[21:03] reing from a game of coins and given the
[21:07] premise that you have a permanent
[21:10] underclass or poor class and how does
[21:12] inflation affect them
[21:14] disproportionately um it affects them
[21:18] basically in the percentage of their
[21:21] income that goes to food and we see this
[21:23] as a ratio and we know that there are
[21:25] some danger points for example in
[21:28] recently once that ratio got to 40% of
[21:32] income going to food and the price of
[21:34] food Rising due to inflation when it got
[21:37] to 40% that's uh historically a point
[21:40] where people actually stage a revolution
[21:42] that's exactly what we saw the French
[21:44] Revolution similarly was all around the
[21:46] price of food getting to a certain
[21:48] critical point where people simply the
[21:50] risk reward for Revolution was favorable
[21:52] toward Revolution when they it up then
[21:56] it all goes down
[21:59] well exactly right because when you have
[22:01] a runaway inflation it's punishing the
[22:04] very people who are most productive in
[22:06] society in other words the people that
[22:08] produce more than they consume and save
[22:11] the difference the problem is is that
[22:14] those productive people the Savers save
[22:17] in their National currency and
[22:18] unfortunately the national currency is
[22:20] just a Fiat piece of paper at this point
[22:24] so when it's destroyed through runaway
[22:26] inflation that 100,000
[22:29] that you were hoping to retire on
[22:31] doesn't exist and the things that you
[22:33] were going to buy with it and provide
[22:35] for others don't exist either now what
[22:37] are you going to
[22:39] do so that all seems pretty scary
[22:44] however uh you know this is going to
[22:46] happen and you can only play the hand
[22:48] that you're dealt but the great news is
[22:50] that gold and silver always end up doing
[22:52] an accounting of the expansion of the
[22:54] currency supplies basically the will of
[22:57] the public in the free market
[22:59] when governments do this kind of stuff
[23:01] to their currency Supply they debase it
[23:03] eventually it comes back in inflation
[23:05] people sense the loss of their
[23:07] purchasing power they rush back to Gold
[23:09] and Silver and they bid the value of the
[23:11] gold and silver up in the country until
[23:14] it meets or exceeds the value of all the
[23:16] currency in circulation this is a
[23:19] process that's been going on over and
[23:20] over again throughout history except
[23:24] this time it's happening on a global
[23:26] scale it has never before happened
[23:28] happened in all countries at once and
[23:31] that means that this is the greatest
[23:32] wealth transfer in history therefore
[23:35] it's the greatest opportunity in history
[23:37] and it's not going to happen again in
[23:39] your
[23:42] lifetime so now we've learned that your
[23:44] true wealth is your time and your
[23:46] freedom money is a trading tool that
[23:49] stores the economic energy that is your
[23:51] time and freedom whereas currencies leak
[23:54] them away gold and silver are the
[23:57] ultimate money simply because of their
[23:59] properties Fiat currencies are based
[24:01] solely on confidence and always return
[24:03] to their intrinsic value of zero
[24:06] governments don't like gold because it
[24:08] imposes restraint Rising prices are a
[24:11] symptom of an expanding currency Supply
[24:13] and gold and silver always account for
[24:15] an expanding currency
[24:17] Supply so that's it for this episode
[24:20] join me next time as we begin to
[24:21] investigate how monetary history just
[24:23] repeats and repeats and how gold and
[24:26] silver always win the battle between
[24:28] current cury and money until then my
[24:30] challenge to you is to stop calling
[24:32] currency money it's a crucial first step
[24:35] towards setting your mindfree of all
[24:37] this economic Voodoo and changing your
[24:39] context you can learn more by watching
[24:41] the bonus features on our website and if
[24:43] you have any questions you can post them
[24:45] there and we'll answer some of your
[24:47] questions in future bonus
[24:49] features so good luck thanks for
[24:51] watching and we'll see you next time
[24:55] [Music]
[25:01] good morning
[25:03] [Music]
[25:05] wow what does Fiat mean it comes from
[25:08] the Latin for crappy
[25:12] [Music]
[25:21] car in the desert in a
[25:24] [Music]
[25:26] suit my camel died
[25:29] you're not too sure about that are you
[25:36] huh I am ready for uh a good long
[25:40] nap hi welcome to this bonus feature for
[25:43] the very first episode of hidden secrets
[25:46] of money uh and this is currency versus
[25:49] money so that's the uh major topic that