Sign New York Banking IOU Myself

Industry sign banking new york iou myself

[Music] welcome to Campbells coins I've been wanting to do a how the banking system works video for quite some time now but I realized that Mike Melones hidden secrets of money episode four clearly and concisely covers this topic in a way that I just could never he does such a great job accurately covering the topic that I'm just gonna share his video right after this message this thing is a masterpiece and I highly recommend watching this video all the way through as well as as other economic topics so without further ado Mike Melones hidden secrets of money episode 4 you are about to learn one of the biggest secrets in the history of the world it's a secret that has huge effects for everyone who lives on this planet most people can feel deep down that something isn't quite right with the world economy but few know what is gone are the days where a family can survive on just one paycheck every day it seems things are more and more out of control yet only one in a million I understand why you are about to discover the system that is ultimately responsible for most of the inequality in our world today the powers that be do not want you to know about this as this system is what has kept them at the top of the financial food chain for the last 100 years learning this will change your life because it'll change the choices that you make if enough people learn it it'll change the world because it'll change the system for this is the biggest hidden secret of money never in human history have so many been plundered by so few and it's all accomplished through this the biggest scam in the history of mankind [Music] they say that money doesn't grow on trees but the truth is that the modern banking system creates currency far faster than trees can grow most people don't have a clue how currency is created economists and bankers make it sound so complex that people think they can't understand it but I'm going to strip our monetary system down to his essence so that you can see the scam behind the curtain and just how it affects you every modern society creates currency in pretty much the same way but since the u.s. dollar is the majority of the world's currency I'm going to use the United States as our example it all starts when some politician says vote for me and I'll make sure the government provides you more free stuff than my opponent will but there's no such thing as a free lunch so to provide that supposedly free stuff the politicians vote for the country to spend more than its income this is called deficit spending to pay for that deficit spending the Treasury borrows currency by issuing a bond so what's a bond if you think about it a bond is really nothing but a glorified IOU it's a pretty piece of paper with numbers printed on it that says loan me a trillion dollars today and I promise over a 10-year period I'm gonna pay you back that trillion dollars plus interest but what you need to understand is that Treasury bonds are our national debt these glorified IOUs are to be paid back by you and I and our descendants through future taxation therefore when the government issues a bond it steals prosperity out of the future so that it can spend it today the Treasury then holds a bond auction and the world's largest banks show up and compete to buy part of our national debt and make a profit on it by earning interest you'll notice that as we move through this process the big banks are they're taking a cut every step of the way this isn't by chance as you'll see shortly then through a shell game called open market operations the banks get to sell some of those bonds to the Federal Reserve at a profit to pay for the bonds the Federal Reserve opens up its big old checkbook and writes bad bogus counterfeit checks that should bounce because they're drawn on an account that always has a zero balance there isn't one penny in there to quote from the Boston Federal Reserve when you are I write a check there must be sufficient funds in our account to cover that check but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn when the Federal Reserve writes a check it is creating money the Fed then hands those checks to the banks and at this point currency springs into existence the banks then take that currency and buy more bonds at the next treasury auction but what is a check a check is also an IOU when you write a check you're making a note that says here's my IOU for cash all you have to do is go to the bank and pick it up now it's very very important that you understand this process because we're going to come back later and show you the devastating effect this has on you the Treasury issues IOUs bonds the banks then buy those IOUs with currency the Federal Reserve then writes IOUs checks and hands them to the banks in exchange for the Treasury's IOUs the bonds and currency is created so what's really happening is the Federal Reserve and the Treasury are just swapping IOUs using the banks as middlemen and abracadabra presto currency magically springs into existence this process repeats and repeats over and over again enriching the banks and indebting the public by raising the national debt the end result is that there's a buildup of bonds at the Federal Reserve and currency at the Treasury this process is also where all paper currency comes from the Federal Reserve in the government mistakenly call it base money because they didn't watch episode 1 of this series and they don't know the difference between money and currency but I will correctly refer to it as base currency because it is not money it is currency and as we've learned there is a big difference money has to be a store of value and maintain its purchasing power over long periods of time we learned in episode 1 that earlier in our history our paper currency was just a claim check it was a representation for real money of intrinsic value the gold and silver that was held on deposit at the Treasury you could walk into any bank and slap your currency like say a $20 bill on the counter and redeem it for real money a $20 gold piece but now this base currency that's piling up back here is really nothing but a receipt or a claim check on an IOU that bond so it's really nothing but a supply of numbers the Treasury then deposits the newly-created currency into the various branches of the government and the politicians say hey thanks for that and the government does some deficit spending on public works social programs and war the government employees contractors and soldiers then deposit their pay in the banks now this may come as a shock to you but when you deposit your currency with the bank you're not actually depositing it into an account to be safely held in trust for you instead you're actually loaning the bank your currency and within certain legal limits they can do with it pretty much anything they please this includes gambling in the stock market and loaning it up at a profit of course now this is where the machine of currency creation really gets cranking because this is where something called fractional reserve lending comes into play fractional reserve lending is exactly what it says the banks are allowed to reserve only a fraction of your deposit and loan the rest out although reserve ratios may vary I'm going to use a 10% reserve ratio as our example if you deposit 100 dollars in your account the bank can legally take $90 of it and loan it out without telling you the bank must hold $10 of your deposit in reserve just in case you want some of it these reserves are called vault cash but why does your bank account still say you have $100 if the bank has stolen $90 of it because the bank left IOUs it created called bank credit in its place now I know this sounds crazy but here it is in black and white from the Fed commercial banks create checkbook money when they grant a loan simply by adding new deposit dollars in accounts on their books in exchange for a borrower's IOU these are nothing but numbers that the bank's type into their computers and even though these bank credit IOU numbers are very different from base currency numbers because they only exist in computers they are still currency so now there is one hundred and ninety dollars in existence now the reason people take out loans from the banks is to buy something they're going to buy a house or a car or something like that so the borrower takes the $90 that the bank loaned to him from your account and he pays the seller of the item but then the seller deposits that currency into his account and his bank loans out ninety percent of that and leaves bank credit numbers in its place so now there's two hundred and seventy one dollars in existence this process repeats and repeats until under a ten percent reserve ratio an initial deposit of just one hundred dollars can create up to one thousand dollars of bank credit all backed by one hundred dollars of vault cash just ten percent but as I said reserve ratios vary wildly on some deposits it's ten percent on others it's three percent and on some forms of deposits reserve requirements are zero the result is that the expansion of the currency supplied by the banks is far greater than even this example would lead you to believe so once again when currency is deposited in the banks the banks get to lend it out and then it gets redeposited and relent redeposited and relent redeposited and relent over and over again creating bank credit all the way this is where the vast majority of our currency supply comes from in fact 92 to 96 percent of all currency in existence is created not by the government but here in the banking system now massive amounts of currency spewing into society may at first sound like a fun idea that is until you remember one of the most important hidden secrets of money from Episode one that the prices of everyday goods and services act as a sponge on an expanding currency supply the more currency we have the more prices rise this is where inflation comes from the true definition of inflation is an expansion of the currency supply rising prices are merely the symptom so our entire currency supply is nothing but a couple of bucks whipped up in this hocus-pocus scam where the Treasury and the Federal Reserve's swap glorified IOUs and a bunch of numbers that the bank's just type into their computers that's it that's our entire currency supply it's nothing but a supply of numbers some of them printed most of them typed and there is nothing else but if you thought that was crazy get ready to enter the twilight zone of modern economics we work for some of that currency supply true wealth is your time but we trade away moments of our lives hour by hour day by day and year by year for numbers that somebody printed on pieces of paper or just typed into a computer now those numbers represent our blood sweat tears labor ideas and talent we are what gives the currency its value but here comes the really cruel joke we work hard so that we can save some of that currency so that we can pay the tax collector in the United States it's known as the IRS they then turn it over to the Treasury so that the Treasury can pay the principal plus interest on that bond that the Federal Reserve bought with a check drawn on an account that has nothing in it now let's do a recap on this section because this is where the system begins to rob you and I on a massive scale much of our taxes are not used for schools roads and public services but to pay interest on bonds that the Federal Reserve bought with a check drawn on an account that has nothing in it the Federal Reserve is committing fraud but here's one of the biggest secrets of them all before the establishment of the Federal Reserve there was no need for personal income tax the Federal Reserve was created in 1913 and that very same year the Constitution was amended to allow income tax do you really think this was just a coincidence ask yourself how much income tax you've paid over your lifetime much of it has been silently siphoned away into the hands of those who own the system yes this system has owners who they are as an even bigger secret that we'll get to shortly but first we need to understand the mumbo jumbo of the so-called debt ceiling it's all based on a huge paradox there was interest due on that bond and there was interest due on every one of those loans that the banks made that means that there is interest due on every dollar in existence let me ask you something if you borrow the very first dollar into existence and that's the only dollar that exists on the planet but you promise to pay it back plus another dollars worth of interest where do you get the second dollar to pay the interest the answer is that you have to borrow that one into existence and promised to pay it back with interest as well so now there are two dollars in existence but you owe four and so on and so on the result is there's never enough currency to pay the debt there is always more debt in the system than there is currency in existence to pay the debt therefore the whole system is impossible it is finite it will come to an end one day what would happen if the government stopped borrowing to do deficit spending are the payments on those Treasury bonds going to stop what would happen if the public stopped borrowing and going deeper into debt are your house and car payments going to stop no there is a payment due every month on the principal plus the interest on every dollar in existence and those payments do not if we stop borrowing then no new currency is created to replace the currency that we used to make those payments whether you're making a payment on a loan or paying tax to make a payment on a bond the portion of the payment that goes to pay off the principal extinguishes that portion of the debt but the debt also extinguishes the currency currency and debt are like matter and antimatter when they meet they annihilate each other if we just pay off the principal only on all the loans and bonds that exist the entire currency supply just vanishes so if we don't go deeper into debt every year look what happens the whole thing goes into a deflationary collapse under the weight of those payments politicians and pundits alike talk about balancing the budget paying down the debt and living within our means they don't understand that that is deflationary it is impossible to do under our current monetary system without collapsing the whole economy this is why any talk of a debt ceiling is not only ridiculous it's delusional the system is designed to require ever-increasing levels of debt just to continue and that's why politicians will always kick the can down the road and raise this so-called debt ceiling over and over again until the whole system finally collapses under its own weight in other words they don't want it to collapse on their watch the founding fathers of the United States knew the dangers of central banking and fought to free themselves from this very thing the Revolutionary War started out as a tax revolt but now we must pay tax just to have a monetary system having just suffered through the hyperinflation of the Continental dollar which was printed into oblivion to finance the Revolutionary War they understood the dangers of fiat currency and debt based monetary systems so to protect future generations from institutional theft and out-of-control government they wrote into the Constitution that only gold and silver can be for the simple fact that you can't print them our current system is not only unconstitutional but it robs us of the liberty and prosperity our forefathers fought and died for we are all feeling the effects of ignoring the Constitution right now by forcing more currency into circulation our purchasing power is diluted inflation is a slow and insidious stealth tax that is simply the result of this debt based monetary system this system empowers and benefits those who create the currency and receive it first as they get to spend it into circulation before it has an effect on the economy they're stealing purchasing power from you and transferring it to the banks and the government every hour of every day because of this false monetary system and it's not like the people at the top don't know this to quote the Feder l Reserve the decrease in purchasing power incurred by the holders of money due to inflation imparts gains to the issuers of money this is a fraud it is a pyramid scheme it is a Ponzi scheme it's a scam and it's a lie our entire monetary system is nothing but a form of legalized theft but here's the biggest con job of them all the Federal Reserve is not federal it has stockholders there is no federal agency that has stockholders what's a stockholder a share of stock represents a percentage of ownership in a corporation so the stockholders are the owners of that corporation therefore the Federal Reserve is a private corporation with owners and you can see it for yourself if you go to the Federal Reserve's website and it will say the stockholders receive an annual dividend of 6% now we know that the stock in the Federal Reserve was originally issued to the largest banks in the United States but because of mergers and acquisitions through the years you can't actually trace who owns the stock in the Federal Reserve that's a very closely guarded secret my guess will be that the owners are those primary dealers the banks that get to make a profit by selling part of our national debt those bonds to the Fed Reserve who buys them with a check from nothing then we pay tax to pay the principal and the interest on those bonds so that the Federal Reserve can pay the banks a 6% dividend don't be alarmed if you don't quite comprehend the deception of this system at first glance very few people do it is purposely complex the economist John Maynard Keynes once wrote by this means government may secretly and unobserved confiscate the wealth of the people and not one man in a million will detect the theft I believe that presented correctly anyone can understand this system regardless of how complex it is so let's do a recap and break it down even more the way the system works is that step one the government creates glorified IOUs these bonds increase our national debt and put the public on the hook to pay it back step 2 IOUs are swapped to create currency the Treasury sells the bonds to the banks the banks then turn around and sell our national debt at a profit to the Federal Reserve which they probably own the Federal Reserve then opens its checkbook that doesn't have a penny in it and buys those IOUs with IOUs that it writes checks on a checking account that has a zero balance then they give those checks to the banks and currency just springs into existence and then the whole process repeats this results in a buildup of bonds at the Fed Reserve and currency at the Treasury which is really just a supply of numbers the Treasury then deposits the numbers in the various branches of the government and we get to step three the government spends the numbers on promises public works social programs and war then the government employees contractors and soldiers deposit their pay into the banks and we get to step four where the banks multiply the numbers by magically inventing more IOUs through fractional reserve lending where they steal a Porsche of everyone's deposit and lend it out that currency gets redeposited and then a portion is stolen again and the process repeats over and over magnifying the currency supply exponentially then we work for some of those numbers which brings us to step 5 where our numbers are taxed we pay tax to the IRS who then turns our numbers over to the Treasury so the Treasury can pay the principal plus the interest on bonds that were purchased by the Federal Reserve with a check from nothing then we get to step 6 the debt ceiling delusion the system is designed to require ever-increasing levels of debt and will eventually collapse under its own weight because politicians always kick the can down the road they don't want it to collapse on their watch and finally step 7 the secret owners take their cut the world's largest banks own the Federal Reserve those banks make a profit selling our national debt to the Fed they make a profit when the Fed pays them interest on the reserves held at the Fed and the Fed pays them a 6% dividend on their ownership of the Fed this system is fundamentally evil it funnels wealth from the working population to the government and the banking sector it is the cause of the artificial booms and busts of modern economies and it causes great disparity of wealth between the rich and the working class and it is only possible because we no longer use real money we use currency but worst of all it is a form of enslavement bond is the root word of bondage whenever a government issues a bond it is a promise to make us pay tax in the future nobody asked you if you wanted to pay tax today for the prosperity we all enjoy it in the last century nobody is asking our children if they want to work hard in the future to pay for the prosperity we're enjoying now George Washington once wrote to James Madison no generation has the right to contract debts greater than can be paid off during the course of its own existence by stealing prosperity from tomorrow so we can spend it today we enslave ourselves and future generations now this all sounds pretty bad but there is great hope for you are the greatest threat to this false monetary system this system relies on the public being ignorant of its workings please share this knowledge with everyone you know because an informed public that fully understands the system can build a better future for generations to come and now I leave you with this quote widely attributed to a former director of the Bank of England the modern banking system manufacturers money out of nothing the process is perhaps the most astounding piece of sleight of hand that was ever invented banking was conceived in inequity and born in sin bankers on the earth take it away from them but leave them the power to create money and control credit and with the flick of a pen they will create enough money to buy it back again but if you want to continue as the slaves of bankers and pay the cost of your own slavery let them continue to create money and to control credit [Music] this is the Federal Reserve in Washington DC it's located on Constitution Street and that is just as much of a joke as the New York Fed being located on a Liberty Street both of them are unconstitutional both of them limit our Liberty and they transfer wealth away from us every second of every day to the Federal Reserve to the government and to the banking sector you are now among the one in a million who can detect the theft of your prosperity so the big question is what can you do about it one watch this video until you can describe and teach it to others those who understand this system can make preparations for its unavoidable collapse and protect themselves history shows that those who don't will probably be wiped out to share this video with everyone especially those you care about all it takes is a mouse click or two to get this message in front of millions post this video on Facebook tweet it email it to loved ones please share it wherever you can 3 join the conversation the current world monetary system is based on a 300 year old design meant to enrich a few at the expense of the many there must be a better way at hidden secrets of money com we've created an open-source platform for the design and development of a new world monetary system we're calling on every economist every student every college every bright mind and anyone who cares to join the discussion in educating ourselves and each other we can prevent the further loss of our freedoms and maybe just maybe win some of them back [Music] [Music] I think your episode four is very beneficial very helpful it's going to introduce these ideas to a lot of people and like I've just been talking about we have to change people's mind and the more they understand it the better and I think we're at this point now where more people in last several years for five years have thought about the Fed than they ever have in Latin in the previous 95 years so I think an explanation and diagrams to show it it's very helpful because quite frankly they're not going to get it in their grade school they're not going to get it into high schools they're not going to get it in college unless they're in a very rare circumstance to understand how how this works you know for years before I got involved in really studying gold and some of the things that write and talk about today I was a monetary economist for decades you know in your video you talked about the primary dealers I was chief counsel and chief credit officer one of the largest primary dealers for ten years so I had an inside seat on the Treasury market and have the privilege of working with several former vice chairman of the board of governors Manley Johnson and David Mullins going back to the 80s and 90s so I'm very immersed in what you were talking about I thought it was extremely accurate extremely clear I didn't think you were stretching on any points it was it was really like something out of a PhD course except that it was very easy to understand I think it's accessible I think I think we're seeing a little bit of a revolution in communications in the following sense you know as you point out the Fed was created in 1913 well in 1913 there was no web there was no YouTube no Twitter there was really no one to kind of stand up and oppose the Fed or call them out if you will or really get into a discussion that everyday Americans could follow that's not true now with with social media and everything else you can reach out to millions and tens of millions of people and tell them what's going on I think you've done that you've done it successfully I applaud it I think this is a great video I look forward to seeing it again I know millions of people will enjoy it well as we know the Federal Reserve believes that can create money out of thin air not realize money's supposed to represent real products and services and what people don't is when the Fed does that in effect as Keynes pointed out it's a form of taxation it's a form of confiscation and because people don't see it the politicos get away with it but it also undermines social trust it just is a corrosive throughout society we're going to have a lot of turmoil in coming years but it's going to be the kind of turmoil that leads to positive things so don't despair get out there and fight because the tide is going to turn this is going to be the status last stand thank you this episode of Mike Melones hidden secrets of money was brought to you by goldsilver.com and the new silver pegasus round to learn how to protect your family and turn the coming economic storms and opportunity visit gold silver calm [Music] [Music]