(#224) Currency vs Money

Part 1 of Michael Maloney's new video series on money

As posted to www.hiddensecretsofmoney.com on 2/26/13

 

 

Question: Do you know the difference between "currency" and "money"?

Imagine a picture of (1) Monopoly money, (2) a pile of U.S. Dollars, and (3) a U.S. Gold Coin.  If asked the Sesame Street question, "which of these is not like the others?", the answers are startling.  A group of Ivy League professors, responded "Well clearly the dollars are not like the others. Gold has no role as money and Monopoly money is junk." Alternatively, a group of 5 year olds responded, "Well the gold coin is not like the others.  The other two are just piles of paper and the gold coin is clearly something different."  The 5 year olds got it right . . . did you?

Answer: Currency is a derivative of money whereas gold and silver is money.

Join renowned worldwide educator Mike Maloney as he travels the globe revealing the truths about money that have been hidden from you in his six-part video series entitled, "Hidden Secrets of Money".

Learn how "currency" steals your two most valuable assets: your time and your freedom.

See how "currency" is not only bringing about the greatest economic crisis in history, but how it can be used to your advantage and turned in to your greatest opportunity.

 

Michael Maloney, founder of www.GoldSilver.com is also the author of the world's best selling book on precious metals investing.  Since 2003 he has been advocating gold and silver as the ultimate means of protecting wealth from the games played by our governments and banking sector.

(#221) So How Does the Global Financial Crisis End?

GoldSilver.com's Michael Maloney explains 

As appeared on RT's "Capital Account"on 1/22/12

 

The Road to Serfdom . . . RT's Capital Account w/ Lauren Lyster hosts Michael Maloney to discuss fiat money, sound money and debt-based currency systems in this program which originally aired 1/22/12.

Michael Maloney, founder of GoldSilver.com is also the author of the world's best selling book on precious metals investing.  Since 2003 he has been advocating gold and silver as the ultimate means of protecting wealth from the games played by our governments and banking sector.

(#220) Why Everyone Should Have a Precious Metals Portfolio

GoldMoney Chairman James Turk outlines the reasons

As posted at www.GoldMoney.com on 12/11/12

 

 

 

James Turk outlines the stark fiscal facts about government debt problems across the developed world, and why central banks' determination to devalue the currencies they issue is causing a bull market in precious metals. He demonstrates why gold remains undervalued, despite the great gains seen in its price over the last 11 years, and a means of assessing whether or not the yellow metal is fairly valued or not. 

 

James argues that we are living in "fiat currency bubble", similar though many magnitudes greater than the recent housing bubbles seen in America, Ireland, Spain and other countries, or the "Tech bubble" in NASDAQ stocks in the late 1990s. The USA is racing towards hyperinflation, courtesy of the Federal Reserve's monetization of US government deficits.

James Turk has specialized in international banking, finance and investments since graduating in 1969 from George Washington University with a B.A. degree in International Economics. His business career began at Chase Manhattan Bank (now JPMorgan Chase & Co.), which included assignments in Thailand, the Philippines and Hong Kong. He subsequently joined the investment and trading company of a prominent precious metals trader based in Greenwich, Connecticut. He moved to the United Arab Emirates in December 1983 to be appointed Manager of the Commodity Department of the Abu Dhabi Investment Authority, a position he held until resigning in 1987. Thereafter he held various advisory roles in money management until founding GoldMoney, which was launched in 2001. He is a director of the GoldMoney Foundation.

(#219) CPI Smoke and Mirrors Exposed

The CPI no longer accurately measures inflation

As posted on the Schiff Report You Tube Channel on 1/10/13

 

In this clip, Peter Schiff explains that the U.S. Bureau of Labor Statistics "Consumer Price Index" (CPI) is no longer a tool to accurately measure inflation, but rather an instrument of deception the government uses to hide accelerating inflation from the public and financial markets. Modest CPI increases over the past several years do not reflect an absence of inflation, but rather an intentional design flaw in the index that fails to fully capture the magnitude of price increases. Central bankers drawing economic conclusions regarding inflation and monetary policy based on this highly flawed data point are making a major policy error. Example: Prices for the twenty items in our basket rose 44.3% during a ten-year period despite an official rise in the CPI of just 27.5% during the same time frame. But that is using official government numbers to evidence those price increases. However, judging by the inaccuracy of government numbers on other items, such as newspapers and health insurance, the actual rate of increase of the prices of the goods in our basket was likely much higher than what the government claimed! Peter Schiff, is an American businessman, investment broker, author and financial commentator. Schiff is CEO and chief global strategist  of Euro Pacific Capital Inc., a broker-dealer based in Westport, Connecticut, and CEO of Euro Pacific Precious Metals, LLC, a gold and silver dealer based in New York City.

(#218) Our Mathematically Unsustainable Monetary Policy

If all debt in the world were repaid, there would be no money

As posted at www.goldmoney.com on 12/18/12

 

 

For the uninitiated, this podcast provides an excellent primer on how our current monetary system operates.

Interviewee Ben Dyson, is Founder/Director of Positive Money, a UK not for profit research and campaign group focused on monetary reform. It believes that the root cause of many of our current social, economic and environmental problems lies in the way we allow money to be created out of debt.

Dyson explains that 97% of the money supply is being created by banks through credit extension in form of a mere book entry (i.e. money is created out of nothing).  In essence, what is happening is:

• Every time money is borrowed at a bank, that money is created because, today, all money is backed by debt, not a physical asset such as gold as it had been in the past.

• Unfortunately, the money to pay the interest does not yet exist and so more money would have to be created for that purpose as well.

• Since the foregoing scenario proves that it is mathematically impossible for all debt and the associated interest to be paid off, the current monetary system relies totally on continually expanding debt to function.

• Therefore, the only way we can increase spending is to encourage people to take out more debt which is why you have a situation in which a monetary crisis occurs because people have too much debt, and the government’s solution is to lower interest rates to make it cheaper for people to borrow more money.

This causes a great deal of dependency on the banking sector.

While our monetary system relies on the continuous extension of debt in order to keep functioning, only little of this credit is being provided to businesses (13%), while the bulk of it went into mortgages (40%), consumer finance (10%) and financial markets (37%) in the decade running up to 2008. Dyson also shows how this is deleterious to wealth creation and also causes redistribution mechanism benefiting those who are close to the issuers of money on the backs of to those who aren't. Also discussed is the environmental consequences of this debt money system.

Finally Dyson's proposal for monetary reform is discussed, which involves the transfer of power over the money creation from banks to a newly established, transparent, public monetary body which decides how much money should be added to the economy through the government to pay down existing debt. They also discuss the viability of using metal as money again, the emergence of alternative currency systems and whether an authority can really be trusted with managing the money supply.

(#217) Fun Facts: Gold

Now how do you feel about those Dollars you own?

As posted at www.goldcore.com on 2/1/12

 

Here is an excellent must see short video about gold bullion vs cash.  It shows how gold has retained value throughout history and why gold is safer than cash in the long term.  Legendary investor, institutions, central banks and the prudent are buying gold today.  It is the opinion of your blogmaster that gold is an important safe haven asset and an essential investment and savings diversification in these uncertain times.

Disclaimer: the posting of this video is not intended to represent an endorsement of it's creator, www.goldcore.com.

(#216) Global Collapse Explained

and in only 5 minutes!

 

as posted at thevictoryreport1 You Tube Channel on 4/3/12

 

 

This short clip explains how Uncle Sam and his house of fiat money are devastating world economies.

(#215) "Bitcoin" Explained (Part 2)

An alternative to the Dollar?

As posted at www.futuremoneytrends.com on 9/15/12

 

What is "Bitcoin"?

Back in The Profit Center Blog #177 from 6/6/11, we posted the clip above which provided a short introduction to "Bitcoin" . . .

 Understanding Bitcoin Security

In this 9/15/12 interview conducted by VisionVictory, Trace Mayer of Run To Gold & How To Vanish uses excellent analogies and explanations in order to help people grasp what "Bitcoin" is, what "bitcoins" are, how it works, and why you should care.

With the current global fiat money system coming to an end, why not invest 30 minutes to learn about this acceleratingly popular alternative currency known as "Bitcoin".

QUOTES

5:27: Regarding the Bitcoin code, "It's open source; so far there hasn't been anyone that's able to compromise the code" 

6:13: "It allows for capital to be accumulated and be saved and stored in a much better way I think than necessarily gold or silver" 

6:51: "Currently the Bitcoin network is secured by processing power. Approximately 250 petaFLOPS. The department of Energy just built a supercomputer for $1.2 Billion that has 15 petaFLOPs"

MORE INFORMATION 

To learn more about bitcoins, see:

http://FreeBitcoinGuide.com

http://www.weusecoins.com 

(#214) The Broken Window Fallacy

Is Hurricane Sandy good for the economy?

As posted at the LearningLiberty.org You Tube Channel on 6/23/11

 

Does destruction create jobs? After natural disasters, terrorist attacks, and wars, some people argue that these disasters are good for the economy, because they create jobs and prosperity. As Prof. Art Carden of Rhodes College explains, this is an example of the "Broken Window Fallacy", a term coined by Frederic Bastiat in his 1850 essay, "That Which is Seen, and That Which is Not Seen".

When a shopkeeper's window is broken, he will spend money on a new window, which gives income and jobs for glaziers. This activity is "seen", but the "unseen" is just as important: the money spend on a new window could have been spent on other things. Wealth has not increased, but only reallocated from some people to others, and society is worse off by one window.

(#213) Citizens from 29 States Petition to Secede from the USA

White House must respond if a petition gathers 25,000 signatures within 30 days

As posted at www.examiner.com on 11/11/12

 

Within days of the presidential election, citizens from 29 States have petitioned the Obama Administration for withdrawal from the United States of America in order to create their own respective governments.  Louisiana was the first State to file a petition, followed by Texas.  A complete list of states is as follows:

1. Louisiana
2. Texas
3. Montana
4. North Dakota
5. Indiana
6. Mississippi
7. Kentucky
8. North Carolina
9. Alabama
10. Florida
11. Georgia
12. New Jersey
13. Colorado
14. Oregon
15. New York
16. Arkansas
17. South Carolina
18. Missouri
19. Tennessee
20. Michigan
21. Oklahoma
22. Utah
23. Arizona
24. Pennsylvania
25. Nevada
26. Delaware
27. Ohio
28. California
29. Wyoming 

The federal government allows one month from the day the petition is submitted to obtain 25,000 signatures in order for the Obama administration to consider the request.  As of the time of this writing, Louisiana and Texas lead the pack, having collected 24,602 and 53,223 signatures, respectively.

The Texas petition reads as follows:

The US continues to suffer economic difficulties stemming from the federal government’s neglect to reform domestic and foreign spending. The citizens of the US suffer from blatant abuses of their rights such as the NDAA, the TSA, etc. Given that the state of Texas maintains a balanced budget and is the 15th largest economy in the world, it is practically feasible for Texas to withdraw from the union, and to do so would protect it’s citizens’ standard of living and re-secure their rights and liberties in accordance with the original ideas and beliefs of our founding fathers which are no longer being reflected by the federal government.  

The website for the petitions is:

https://petitions.whitehouse.gov/petitions

Dr. Paul on the Constitutional Principle of Secession

Although the clip immediately above is by no means new, nor was it filmed in response to the recent proliferation of succession petitions (it was originally posted on 4/19/09), it appears to fit into the discussion.  In it, U.S. Congressman Ron Paul discusses the Constitutional concept of secession.

Ron Paul, is an American physician, author, and politician.  He has served 12 terms in Congress, currently as the U.S. Representative for Texas' 14th congressional district since 1997.

(#211) Quantitative Easing Explained

What the Federal Reserve is doing and how we got there

As posted on YouTube on 11/30/10

Film-maker uses computerized, monotone voices and anime-styled bears to explain the inexplicable: "The Ben Bernank's" rise to power and the Fed's collusion with Goldman Sachs to rob American taxpayers.

An earlier version of this clip previously appeared as The Profit Center's Blog #150 back in 11/17/10 right at the time QE2 was hatched.  I just came across it again and thought it was so spot-on that it deserved another airing to coincide with QE3.

Now, nearly two years since this clip was created, how is QE working for you?

(#210) Is this the End of the Petro-Dollar?

China actively working to end it

As appeared on Ben Swann's "Reality Check" on 10/9/12

 

Note: the above YouTube link has subsequently been taken down.  The clip may now be viewed here:

http://www.fox19.com/story/19779174/reality-check-what-is-the-petro-dollar-and-why-is-china-trying-to-destroy-it

Ben Swann explains what the "petro-dollar" is, it's importance to the U.S. Dollar retaining it's designation as the world's reserve currency, and how the national media isn't telling you that China is actively working to end it.

Ben Swann, is a television journalist with Fox19 in Cincinnati, Ohio and produces a fact-checking series entitled Reality Check.  He is the recipient of both an Edward R. Murrow Award and two Emmy Awards.

(#206) The Euro in One Lesson

A short, concise explanation of the tragedy of the Euro

As posted on the Tom Woods You Tube Channel on 8/27/12

 

Tom Woods explains, with reference to the work of Philipp Bagus, why the Euro crisis was predictable, and in fact the logical outcome of the incentives built into the system.

Thomas E. Woods, Jr., is an American historian, economist, political analyst, and New York Times-bestselling author.  He has written extensively on the subjects of American history, contemporary politics, and economic theory. He is the founder of Liberty Classroom, which provides online courses on history and economics.

 

(#205) The Phillips Curve

The relationship between inflation and unemployment

A component of Welker's Wikinomics Video Lecture Series posted on 1/10/12 and 1/11/12, respectively.

 

This video lesson introduces a basic Macroeconomic model showing the short-run tradeoff that exists between inflation and unemployment in nation's economy. By examining the effect that a shift in Aggregate Demand has on the average price level and the level of output and employment, we observe a simple tradeoff: lower unemployment generally comes at the cost of higher inflation, while lower inflation may require higher unemployment.

In the second lesson on the Phillips Curve model we will further explore the relationship between unemployment and inflation in an economy, this time examining what happens in the long-run, or the flexible-wage period, following a change in aggregate demand in an economy. Will the tradeoff between inflation and unemployment exist even once wages and prices have had time to adjust to the level of demand for a nation's output?

We will find that, in fact, as an economy self-corrects from changes to aggregate demand and output returns to its full employment level, the unemployment rate will always return to its natural rate, even as inflation rises and falls with demand in the economy.

What is important to note is that the author prefaces changes in his model resulting from changes in the economy with statements that are essentially saying "assuming no government intervention".  In other words, the point that is being made is that, assuming the government does not intervene in the economy, the free market is self-correcting.

(#204) A Primer on Gold

Independent vs Fiat

As posted to Dominic Frisby You Tube Channel on 7/21/11 

A short animation arguing for re-introduction of gold as money because of its independence.

(#202) "What About Money Causes Economic Crises?"

Congressional Lecture Series on the Basic Principles of Money

(Part 3 of 3)

 As posted on the CongressmanRonPaul You Tube Channel on 12/19/11

 

We conclude our three part series on the basic principles of money originally created for Congressional staff.  So that it could also be used as a continuing educational tool this lecture was filmed and is provided to the public.

The lecture was delivered by Peter Schiff, CEO of Euro Pacific Capital and author of Crash Proof: How to Profit From the Coming Economic Collapse and How an Economy Grows and Why It Crashes. Mr. Schiff explains the fact that the interest rate is a price and that manipulation of that price results in real changes to the capital structure and structure of production within the economy, causing imbalances, booms, and eventually busts in the economy. His lecture also explores how government intervention through labor and employment policies results in diminished employment and an overall reduction in the standard of living.

(#201) "What is Constitutional Money"

Congressional Lecture Series on the Basic Principles of Money

(Part 2 of 3)

As posted on the CongressmanRonPaul You Tube Channel on 11/18/11

 

We continue with Part two of our three part series on the basic principles of money originally created for Congressional staff.  So that it could also be used as a continuing educational tool this lecture was filmed and is provided to the public.

The lecture was delivered by Edwin Vieira, Jr., J.D., Ph.D, the author of the definitive work on Constitutional money, Pieces of Eight: The Monetary Powers and Disabilities of the United States Constitution. Dr. Vieira's lecture explores the development of the American monetary system from colonial times through the creation of the Federal Reserve System, explaining the constitutional underpinnings of our money and the erosion of that legal framework over 200+ years of monetary history. He also explains his plan to return to sound money, outlining the grim ramifications of continuing on a fiat money standard.

Coming up: 

• Part 3 "What About Money Causes Economic Crises?"

(#200) "What is Money?"

Congressional Lecture Series on the Basic Principles of Money

(Part 1 of 3)

As posted on the CongressmanRonPaul You Tube Channel on 10/12/11

Texas Congressman Ron Paul sponsored this Congressional lecture on "What is Money?", part one of a three part series on the basic principles of money for Congressional staff. As a continuing educational tool this lecture was filmed and is provided to the public. Joseph T. Salerno, Ph.D., delivered the lecture. He is academic vice president of the Mises Institute, professor of economics at Pace University, and editor of the Quarterly Journal of Austrian Economics.

Coming up:

• Part 2: "What is Constitutional Money?"

• Part 3 "What About Money Causes Economic Crises?"