Podcast

“It is well enough that people of the nation

do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” 

Henry FordAmerican industrialist,

The founder of the Ford Motor Company

Time was calling for an inventionSome meaningless object which can act as:• Moving of Surpluses - Store of value • Mean of exchange - Unit of Account

Scarcity SizeObjectivity measured and splitEndurance Of all materials in nature, only two

really fit the bill:

20145500 BC

Silver

Gold

Price of Real-estateTalent- Mina- Shekel

20145500 BC

The Cave of the Patriarchs

Shekel=500 gr : 60 = 8.33 gr

8.33 gr x 400 = 3332 gr

3332 gr x $0.505 =

Cost total = $1682

-- - - , , - , חת בני באוזני דיבר אשר הכסף את לעפרון אברהם וישקול עפרון אל אברהם וישמע ארבע

, לסוחר עובר כסף שקל .מאות

Genesis 23:16 …and Abraham weighed the silver for Ephron ….. four hundred shekels of silver, current money with the merchant.

Amsterdam Exchange Bank - 1609

Italian Banks Late 1300’s

“Promise to Pay The Bearer”

Exchange Bank Vs. Lending Bank

BankOwner’s Capital

Depositors Money

Loans

Money owner Pays guardian fee Collects interest

Bank Notes/ Money/Account

Lending moneyGuardian & Exchange

The Birth of the Money Creation Machine

The story of a Dutch swindler who invented modern banking and changed the nature of money forever

Johan PalmstruchPalmstruchers - 1657Dallar

1:1Coin > Coin

1:1Coin > Paper

1: ManyCoin > Multi-Paper

Fractional Reserve BankingThe Money Creation Machine

Limiting Amount of Money Created Reserve ratio (cash to

credit) Interest rate

Cash Reserve: 10%Multiply loans : 90%

A Sabre Dance: Gold and PaperThe Gold Standard Years

This certifies that there has been deposited in the treasury of the United States of America Ten Dollars In Gold Coin

Payable to the bearer on demand.”

20145500 BC1875

A World Off Balance Between Two Wars

Inflation Tariffs Currency Wars

The Golden Dollar: The Bretton Woods System

The Mount Washington Hotel - Bretton Woods, NH

20145500 BC 1944

$35

Gold Reserve Requirements Elimination Act (1968)

“Free our gold reserves so that they can unequivocally fulfill…the international convertibility of the dollar into gold at $35 per ounce.”

The Nixon Shock - Aug 1971“In recent weeks, the speculators have been waging an all-out war on the American dollar….I have directed Secretary Connally to suspend temporarily the convertibility of the dollar into gold…”

https://www.youtube.com/watch?v=rcnhF09QN78

No Limits on Money Creation

Commodity Money Vs. Fiat Money

Government Manipulating Money • Money is the foundation of the economy and the mechanism by which it operates• When central banks manipulate its value, quantity and price (via interest rates) they destroys

the actual OS (operating system) of free markets• This manipulation not only brings about long term catastrophes in the shape of debt crisis's (like

2008) but also extremely damaging short term results, including:• An out of control big government financed by debt and money creation, engaged in unneeded wars, deep

corruption and crony capitalism• Asset bubbles that enriches the top 0.1% and 1% on the expense of the “bottom” 90%, the retirees and the

young generation• A “debt and consume” economy instead of a “save and produce” economy , resulting among other things

in the destruction of manufacturing in America and a massive job export • Devastating cycles of boom and bust • Complex and extremely expensive programs which bankrupt people, states and the nation (like healthcare

in America)• Destabilizing society due to the impacts of the above

“Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency… and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth.Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

John Maynard Keynes

A Million, a Billion, a Trillion

A million seconds = 12 days.

A billion seconds = 31 years.

A trillion seconds = 31,688 years.

Bye-Bye, Gold; Hello, Fiat MoneyThe What , The Why, and the Will….

M3 x 16

US Economy Debt/GDP

All Sectors Debt x 50

GDP x 14

Federal Debt

2016 -$19.5 trillion x 48

Financial Business Liabilities

X 147

Source: New York State Comptroller

Wealth Concentration

From 1971 to 2013 for every $1 of new wealth accumulated by an average family from the bottom 90%, an average family of the top 1% acclimated $476

1986 - highest paid Wall Street exec (CEO of Salomon Brothers) - $6.8 million ( 2013 dollars). 2006 - CEO of Merrill – annual pay $105 million (2013 dollars).

Share of Income (Pre-Tax) Including Capital Gains , 1913-2012

23%

18%

In 2013 the 25 highest-earning hedge fund managers totaled $24.3 billion annually, (and paid capital gain taxes)

Year Balance in B-$$ W/ China

1975 8.9 1985 (122) (6) 1995 (174) (34)2005 (783) (202)2014 (736) (343)

Total: $ 9.1 T

China’s Foreign Exchange Reserves / Billions of $

- 86%

Purchasing Power of Consumer Dollar

: בקרוב שתפורסם שנתית החצי הבנקאות מערכת סקירת מתוך קטעמשכנתאות על בריבית ההתפתחויות

ישראל 31/08/2016 בנק -2008מראשית מ הגבוה ריאלי בשיעור בישראל הדירות מחירי . 80%עלו

ובגידול בדירות העסקאות במספר בגידול לוותה הדירות מחירי עליית , הנמוכות והתשואות הריביות רקע על בפרט נוטל שהציבור במשכנתאות

.במשק , לסיכון אותם חושפות ועדיין והבנקים הלווים את חשפו אלה התפתחויות

: הכלכלית בסביבה להתרחש שיכולים משינויים כתוצאה פגיעה של . , , שינויים ועוד בריביות הדירות במחירי האבטלה וברמת הלווים בהכנסת

, , של השוטף בפירעון הלווים של לקשיים להוביל היתר בין עלולים אלושל ) פיננסית יציבות ודוחות הבנקים על הפיקוח דוחות ראו המשכנתאות

) האחרונות בשנים ישראל .בנק

“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, one by one.” ― Charles Mackay