Financial Knowledge and Crisis Awareness

True Wealth and Freedom

• True wealth consists of time and freedom; money is a means to exchange time.
• Money is a vessel for storing economic energy until ready for exchange.
• Global populations are deceived by fraudulent currency systems.
• Currency steals valuable assets: time and freedom.

The Upcoming Financial Crisis

• The world faces a major historical financial crisis.
• This decade witnesses the largest wealth redistribution in history.
• Wealth isn't destroyed but redistributed.
• Crises present opportunities.
• Financial education is key to turning crises into personal gains.

The Importance of Financial Knowledge

• Study money's history, finance, and the global economy.
• Learn how central bankers and the stock market manipulate individuals.
• Financial system understanding positions you advantageously during wealth transfers.
• "The farther backward you look, the farther forward you can see" - Winston Churchill
• This program helps viewers envision the future.

The Hidden Secrets of Money

• The monetary system isn't entirely hidden but complex.
• The Federal Reserve being a private entity separate from the government is a slowly emerging truth.

The Creation of the Book

• The author's book details the monetary system, economics, markets, gold, and silver.
• The author aims to clarify economic "smoke and mirrors."

The Origins of Money: Egypt

• Egyptians used gold and silver as primary currency around 5,000 years ago.
• Gold and silver were not true money initially; varied sizes, weights, and purities made each piece unique.
• Non-fungible; each piece had a unique value.
• No standard pricing existed yet.

Money vs. Currency

• Financial instability is due to currency versus money misconceptions.
• Currency is a medium of exchange; a unit of account, portable, durable, divisible, and fungible.
• Fungibility: each unit is equivalent to the next.
• Money satisfies all criteria and retains value over time.
• Even financial experts sometimes confuse currency with money.

Currency vs. Gold and Silver

• Currency is a medium of exchange, a unit of account.
• Currency is somewhat durable, portable, divisible, and fungible.
• Governments can devalue currency by printing more.
• Currency devaluation transfers wealth to governments and banking systems.

The Properties of Gold and Silver

• Gold and silver's properties make them ideal money:
  • Convenient exchange, high value density.
  • Global unit of account; gold's value is constant worldwide.
  • Gold is the same price globally.
  • Durable; gold from 5,000 years ago still exists.
  • Divisible into smaller units.
  • Portable.
  • Fungible; pure gold is universally equivalent. Pure silver is also fungible, yet with limited supply and maintaining purchasing power.
• Oil is not a good money form due to its non-portability.
• Governments cannot print gold or silver, hence their sustained value over millennia, unlike fiat currencies.

The Failure of Fiat Currencies

• All previously existing unbacked currencies eventually reach zero.
• Fiat currency is paper money authorized by governments.
• Fiat currency has a 100% failure rate.
• Governments print fiat currency with no backing.
• Fiat currency gains value via trust and government endorsement.
• The Federal Reserve admits that its currency is backed by nothing.

The Inability of Fiat Currency to Preserve Value

• There's no historical example of a surviving unbacked fiat currency.
• Economist Addison Wiggin documented fiat currencies' collapse.
• All fiat currencies listed, from A to the middle of B, eventually reached zero.

The Dollar's Loss of Purchasing Power

• There's a definition of money.
• Does paper money meet this definition?
• The dollar's purchasing power has decreased by 95% since the Federal Reserve's establishment.

Gold as a Contrasting Example

• A gold coin vs. paper money intelligence test: children identified gold as different.
• Ivy League professors struggled with the concept.

The Gold Standard and its Significance

• Prior to World War I, US coins were on a gold standard, redeemable for gold.
• Currency acted like a receipt for gold in the vault.
• The paper dollar is literally a receipt for physical gold.

More Hidden Secrets About Currency and Money

• Currency and money are distinct; money maintains value over time.
• National currencies drain economic energy through diminishing purchasing power.

The Durability and Stability of Gold

• Gold and silver have maintained value for thousands of years.
• Gold forms during supernovae; its creation is permanent.
• The durability of gold and silver is exemplified by their continued use for 5,000 years.

The Control of Governments and the Fear of Gold

• Gold restricts government spending due to lack of printable supply.
• Gold has outperformed the Dow Jones for seven years but isn't seen as a legitimate asset class.
• Governments fear gold limiting their spending power.

The Definition of Inflation and its Impact

• Inflation, according to Milton Friedman, is an increase in the money supply.
• Deflation is a decrease in the money supply.
• Increased money supply inflates prices (sponge absorbing water).
• Governments' printing more money causes continuous price increases.

The Inherent Flaw of the Modern Financial World

• The modern financial world is based on promises, not reality.
• The progression from barter to money illustrates lost value in modern monetary systems.
• Modern financial systems lack true value due to their reliance on tokens rather than intrinsic forms of value.

The Deception of Quantitative Easing

• Quantitative easing is another term for printing money.
• QE began with 2009 bank bailouts.
• Banks received newly printed money to the detriment of the global economy.

The Coming Dominance of Gold and Silver

• Gold and silver will regain their position as money.
• Limited supply means increased value; a gram of gold might buy a house.

The Inevitable Global Impact

• Global financial crisis affects all countries.
• The magnitude of the financial crisis and wealth redistribution is underestimated globally.

The Growth of Currency Supplies

• Graph showing US currency supply increase and quantitative easing events (QE1-QE4).
• Exponential increase in currency supply worldwide since 2001, reflecting rapid inflation.

The Paradox of Inflation

• No historical precedent exists for the current global inflation phenomenon.
• The significant increase in money supply is not fully reflected in increasing prices.
• A substantial portion of new money is being exported and will eventually flow back, causing a significant increase of inflation in one area.

The Inevitable Return of Inflation

• The rest of the world will no longer accept dollars causing a dollar flooding back into the US.
• Global inflation will return to the US and purchasing power will diminish.
• The return of exported inflation into the US will cause a rapid increase of money in the US, outpacing the Fed's ability to produce money.

The Consequences of Quantitative Easing

• QE2 caused a 60% increase in global food prices.
• 2 billion people barely surviving on less than $2 daily experienced substantial humanitarian hardships due to QE.
• QE ignited the Arab Spring due to food prices reaching 40% of income causing a revolt.
• Quantitative easing punishes high-producing individuals who save in declining currency.

The Inescapable Reality

• The current situation is alarming but understandable.
• The solution will be gold and silver as they consistently prevail over fluctuating currencies.
• Governments erode currency value via printing, leading to inflation and wealth transfer.
• People will inevitably shift to gold and silver for value preservation creating the largest wealth transfer in global history, which creates a rare and massive opportunity for personal gain.

Summary of Key Points

• True wealth is time and freedom.
• Money stores economic energy (time and freedom).
• Currencies erode time and freedom by diminishing purchasing power.
• Gold and silver consistently represent real money.
• Governments are interested in printing, therefore they oppose gold which limits their spending power.
• Currency inflation raises prices. Gold and silver combat inflation.
• The history of money is cyclical.
• Stop considering currency to be money; this is the most important stage.
• This knowledge equips you to avoid economic deception.

Final Message

• Watch for the next presentation to learn how gold and silver prevail.
• Post questions on the website for answers.