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The Fed's Big Secret: Money is Worthless

by Stefan Molyneux • 15,532 views

http://bit.ly/psPcTE Sign up for your weekly Conversation with Casey. Bud's Book: http://www.fdrurl.com/bud This is part 2 where Stefan Molyneux (our video host) interviews Casey Research Chief...

When will people wake up and realize that money is absolutely worthless..  Every aspect of it.  Why waste your entire lives working to earn something that is completely worthless?  Do you feel that your time is worthless is well?  And therefore your life itself is worthless?  IF everyone would wake up and simply stop working, and I mean EVERYONE, corporations and any financially based institution (including our useless government)  would crumble and we could finally become the supposed "Land of the Free". 
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Fiat currency, in of itself, is worthless. Compared to the old paper receipt currencies, modern plastic polymeric currencies are even worse because you can't even burn it without releasing toxic fumes. However this does not invalidate the concept of currency. It's important to understand that the worth of money is symbolic - money is merely representative of its financial environment. It must also be portable, durable, divisable and, of course, finite (limited/non-creatable) which is really where fiat (govt-controlled) currency falls down. Currencies are essential for the globalisation of resources in productive industrialised society. The alternative to currency is barter which is incredibly inefficient, in that transactions can only efficiently occur between those who have mutually opposite needs and capacities. These barter transactions can require very large numbers of middle men. For example, if I sell wood and I want some food but the person who sells food at the most reasonable 'price' does not want any wood and wants, say, alcohol. But the person who sells alcohol wants... I must somehow 'convert' my wood to alcohol and the number of middlemen can become quite ridiculous. So you see this is very inefficient and of course the most 'efficient' resort is to become self sufficient (anti-specialisation) which is, by it's very nature, inefficient. Productivity is reliant on the concept of industrialisation (creation of industry) and industry is reliant on specialisation (and hence division) of labour. Currencies are vital for the sustainability of product specialisation i.e. excess product/service (only need so much of your own product/service) is traded for money which can then be traded for other products/services. This specialisation (increased productivity) of labour equates to excess accumulation which leads to the devaluation of the created goods/services which increases the financial capacity (profitability) of competition. Productivity/specialisation is the increase of inequality. This is so often misinterpreted as 'bad' by people - thanks to marxist govt 'education'. This demonisation of inequality is essentially the justification of violence/theft and this 'moral' desire for forced equalisation is the 'justification' of govt expansions. But anyway, it is this inequality that drives competition (lower prices). In this sense, trade is a voluntary resource equalisation process and trade (voluntary transaction) is by definition mutually beneficial. So, money is not pointless - it is VITAL for the survival of productivity (industrialisation). But fiat currency is a bad joke. The idea of infinitely creatable currency (decentralised by nature) being centrally controlled and manipulated is insane but that's govt for you. Life is not worthless - it is the most valuable (and rare) thing in the universe. If everyone stopped working, trading and interacting then that would be a lose/lose situation to say the least. Well if society did collapse and there was no govt (at least until people started trying to impose their own governance through gangs - but govts are inevitable so long as people have master-servant/human ownership mentalities), then yes your freedoms would be less inhibited (laws/violence) but at what cost. That's like saying that if you have a tapeworm the 'cure' is to blow yourself up and disintegrate the parasite (including your body). Like if you agree
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profit hasn't improved humanity in the slightest, technology has....but cost slows down technology and chooses what areas of society are emphasized based on how much money they'll make.  Crime Debt Homelessness Greed Poverty Rich and Poor  Hunger   -all these problems will never go away because there's no money in solving them. 
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the main objective of the central banks is to create debt. that is the only thing they can possably do. if you have no money and i loan you a dollar @ interest how could you ever pay me back?,,you cant ,,its impossible because all you have is a dollar and you owe me more than that. its so obvious i dont know why people cant understand this
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5 Fed workers rated this video
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I can only hope the interest rates stay down until I get my fight finished with the government. If the rates go up I have no idea how I will pay my bills while finishing the law suit that I am in again'st the Crown and police for jailing me for a crime I did not commit.
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are you saying that a good suit costs $1500 ??? wow thats one hell of a suit
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Why don't you check out the venus project and then get back to me? Otherwise you're just having an uninformed opinion. Find out what it's all about, then we can discuss it.
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According to standard GAAP General Accepted Accounting Principles it's government owned.
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thanks guys for imparting such good info.
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The one thing Bud said that gave me pause though was at 12:35 "interest rates cant go lower". Well I agree they aree way too low, but I have heard that before. I remember sayign that to myself a few years ago. I was wrong and ive learned my lesson not to underestimate the fed.
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Federal court case said they were private
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@ExitTheStefBox: The point is the only way this is going to end is for a significant number of people to completely cash out of the system and start living like the state did not exists. "...then you will behold him, like a great Colossus whose pedestal has been pulled away, fall of his own weight and break into pieces."
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@dirtbagstatus Schiff is the Man! ...the only man...my point. Its actually like HUGE - but oddly, the 'free press' says nothing. And poor Peter Schiff...haven't seen him in the News since his attempt to gain office. :(
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@siftyfour Glass-Steagall was part of Banking Reform of Act of 1933. It created FDIC insurance. It's necessary to separate commercial and investment banking when collectivized risk (FDIC) is present. The market's ability to regulate has been neutered with collectivized risk. The bureaucratic regulation won't be nearly as effective as the market's fear of loss, but one must attempt to regulate by bureaucrat when collectivized risk is present. Get rid of FDIC, Glass-Steagall is not necessary.
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@Anonymous247n Seriously? You are still here? Which economy is not resource based? And yours is not an economy, its communism with robots. No thanks for the chance to ruin my life.
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And while the Fed returns any profits to the Treasury, it also socializes the losses to the taxpayers, ie private banker bailouts, private corporation bailouts, foreign entity bailouts etc...
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Filthy, evil, greedy, and avaricious usurers...
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The real secret is the money they print is not worthless, but an extraction from the people. A Treasury Bond is nothing more than a promise to point guns at the slaves and bleed them for a certain amount. If it were NOT that, then it could be a Federal Reserve Bond. So the whole thing is just slavery by another name, a way of automatically indebting you to the degree you become more productive. Its like forcing transactions onto your credit card.
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Money is actually less than worthless...IT IS DEBT! So negative worth. They are IOUs basically. Federal Reserver NOTE...a note is a loan. Example in less than 300 characters. I wanna buy my friend Joe's bike for $100...I don't have $100, but he'll take an IOU from me saying I'll pay him $100 in the future. Now Joe want's to by his friend John's laptop for $100, but alas Joe doesn't have $100 either and asks John to take my IOU...and he does. Has John actually gotten paid for that laptop?
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Loved the video. Great great incite. Say...did you slice the ending in after the interview had finished..? Looked a little...phony. I loved the quantity of information, and i'm sure i'll find it to be quality info too.
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This is all true everyone reading this please send me your cash I will take care of the checks too. Any currency will do it is all bad ! You must give it to me immediately . Drop it off in person or by mail.I will take savings bonds and your passbooks and IRAs too . Thanks no problem folks.I do this for YOU out of the goodness of my heart!
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Yes, though Communism looks best on paper, the system fails to be effective because of human nature..
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@Nexus2Eden I believe peter Schiff pointed that out not too long ago,he also compared it to the Swiss and New Zealand currencies as well.
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they will get rid of paper money, make it all electronic so they can control you more....
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@utubehayter I know it's hard for some to tolerate other people. Well, you'll just have to deal with different opinions, haters are a thing of the past.
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Ah yes, the noble savages a.k.a. indigenous peoples, living in peace, love and harmony. What a crock. Indigenous peoples are just as savage and brutal as any other peoples. They just have less technology.
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There are no alternatives that would guarantee a fair world with equal rights for everyone and no possibility for corrupt behaviour. Anyone who suggests otherwise is either completely ignorant or selling snake oil.
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Money and God have 2 things in common. You dont know if either exists but does one hell of a job controlling you.
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@utubehayter Just kidding... Stefan, you look good. I will shave my head and try to look clean and professional like that. Great job on the interview
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Capitalism, as a model, is just that, a model and can be manipulated through laws written by the folks who are benefiting the most, it doesn't work for most people or all people, that is demonstrated well with the fall of the Roman Empire and today. It doesn't help indigenous peoples of the world because their lives tend to want to be more in balance with the land and nature, giving respect to life that capitalism disregards in it's model, because capitalism want's to grow money and spend trees.
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Last numbers I saw, a couple weeks ago, was that China only owned about 300 Billion dollars worth of our debt. The question I immediately asked was, "well then who the hell really owns it all?!" The Zionist Elite.
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@inibo - No, the way you end this is to get a big piece of land for you and your friends, earn just enough money to pay your taxes, and grow your own food, produce your own electricity, build your own houses, and live completely "off the grid." You think by trading in metals they'll give a shit? No, because you still feel worthless tokens are exchange have value. But everyone just fell off the capitalist corporate consumerism train? Then they'd notice! That's the solution!
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I'll keep buying metals with paper while I can! Ron Paul 2012!!
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this man must be very very rich, with all of his correct predictions
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@ace1sod ".... its impossible because...." That crap has been debunked over, and over. I loan you money. During the term of the loan, I buy something from you. You now have enough to pay back the loan plus interest.
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@inibo I know! I keep telling them that, but it is like zombies. Ignore reality, exercise gullibility. Oh boy, apparently, now I am just a hater. :)
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Boy this guy is fantastic. His investment reccomendations at the end are great IMHO. Ive been buying up nat gas stocks and jr miners for a while, and just patiently watching that bond bubble. Couldnt agree more. Awsome interview.
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@Anothercoilgun it's still subject to the same devaluation
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@1776Rosco That is a good idea. But as Ron Paul pointed out to Ben Bernake when Ben suggested that anyone can buy gold with their dollars at any time, that buying gold with dollars is not the same as trading it or swapping it for gold. Currently you are being charged sales tax and some extra percentages when you buy. It's like going to bank &wanting to buy currency for currency, say u give them $100 currency & they sell you $90. It should be changed so that $100 dollars gets u exactly $100 gold.
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@LeksServices EXCELLENT! Very well said. 100% right on! The only reason the "masters" have power is because they have most of the money. Money is worth nothing unless people believe in it. Stop according it value and the "masters" no longer have any power. Problem solved.
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Hey! What happened to my ounce of gold?!!?? Steph!!!
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What blows my mind - one of many things...lol Is that NO ONE...I mean NO ONE is talking about the USDJPY! The Dollar versus the Yen is the lowest in history, by a huge amount. Not a word. Gold at record high $1660 an ounce! Nothing. In 5 years Gold has gone from $500 an ounce to $1660 - the Yen 1.28 to 1 to .77 to 1. And not a word in the media. Not a WORD! I am blown away. And their are no elite masters...right. lol Moo Moo
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@IKilled007 the only have value by threat of force... most don't think about this because they've long ago been indoctrinated.. but as you awaken to reality you realize it is the threat of force, and that alone, which gives the dollar its value. When that force is gone, or no longer pointed at dollar downers, good bye to your "value". If, however, you mean value in the sense of how food has intrinsic vale.. how silver has intrinsic value.. how land has intrinsic value.. then you r flat wrong
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@utubehayter A fiat currency based economy is definitely not resource based. Communism with robots? You need learn more about Jaques Fresco, its far from that. But of course if your head is stuck with just one single idea then its pointless to argue eitherway.
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jus as long as yer not really Charlie disguised as 'the CIA got to you too Stef"... then we'll probably all survive a little overt squareness
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"I believe the federal reserve actively tries to obfuscate, and hide, it's actual structure." Oh, yes! Theres this big brain fog whenever people try to figure it out, so that should tell us something.
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and definitely less pollution except when big oil and tech corporations decide to dump their trash on indigenous lands because they think indigenous people are stupid and won't react with rage when they don't want to have to pay for proper trash removal or outright dispel waste and commodities like oil just to keep the price where they want it
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@1776Rosco - You're still falling for the worthless tokens of exchange if you're buying metals. Buy land instead. Earn just enough tokens of exchange to pay your taxes. Grow your own food, produce your own energy, build your own houses. Live completely off the capitalist consumer slavery system we have now. Then you'd REALLY be rebelling. Don't want to do that? Then don't bitch when your Rich Masters keep fucking you in the ass.
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@ExitTheStefBox: Ron Paul is a good man and far more knowledgeable about economics and finance than any ten other people in congress, but if you think people are going to be able to vote their way out of this they are going to be sadly mistaken. It there is any chance that he would actually be elected they would kill him without a second thought. Who knows, maybe that's what he's after.
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@utubehayter: The VP/ZM people are like a plague. The Calculation Problem is and always will be the death of all planned economies.
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how can money be worthless? u can exchange it for stuff.
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@DorcasLeigh Honestly, he looks more like a secret service agent with the earpiece in... You've been made o_O
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damn, i should have found this youtuber much earlier. youtube has too much trashy tubers. Stefbot deserves more attention.
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@Anonymous247n Just go away, alright. after "no economy today is resource based", do we really have to tolerate you? If you don't know what exists .. there really is no hope.
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WRONG CASEY!! Shareholders of the Federal Reserve take up to about a 6% profit and hands the rest over the US Treasury.
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fuck... Lookin fly Stef! And right on
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@Nexus2Eden They have him on RT every once in a while and he's got a radio show. Do you subscribe to his channel?
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Wonderfull, now start considering a resource based economy. Honestly, there aren't many alternatives that would guarantee a fair world with equal rights for everyone and no possibility for corrupt behaviour. Don't reject it outright, you don't act on prejudice, do you? Give it a thought, give it a chance.
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@1776Rosco lol yeah then when you vote ron dumb ass paul in he can go back to the gold standard which requires you, just like every american to turn in that gold you just bought. God ron paul supporters are absolutely retarded... Do you understand where the gold in fort Knox came from? It came from American citizens. I love how ron thinks he's a libertarian and yet supports the gold standard which requires an immense amount of gov. intervention and makes holding over 100 dollars in gold illegal.
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What's up against the Fed? You aren't even from USA. Your central bank is Bank of Canada. Why aren't you bashing against it?
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There is a need, if you want to know what you're talking about - you don't know the venus project, when you know what it's about, please do return to me. It does not say it guarantees a fair, much less a perfect world, that is impossible. What was best is a different story than what could be best. Please, inform yourself, you'll not regret it.
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@mistara31415 I think maybe in a few videos he hasn't worn pants just for a chuckle for himself.
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Stef, what do you think of the "prepper" movement?
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While the Fed returns any profit to the US Treasury, by LAW the member banks FIRST receive 6% on their capital investment.
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Professor of economics Zagreb Croatia on Dollar: USA dollar currency without backing of goods services or gold it is in deep hyperinflation just a question of time when it starts.
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@TimothyADonaghue Thhis guy is an economist with caseys firm.
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Open Pandora's Box, inside is the Fed.
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What about people who are are not able to invest, due to monitary constraints? The working poor, whom can barely keep up with the basic costs of living; is there any real alternate to buying creamed corn and hoping for the best? It's relatively easy to hedge the state with the state proper means. Are the rest supposed to live as hermits?
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He wants glass-steagle to come back? Outlaw all those financial instruments? Nope, banks were always allowed to do all those risky activities, before and after Glass-Steagle.
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I sense a MPE plagiarist , the fed is the REGULATOR of fraud , who then commits the fraud & theft on behalf of the regulator thus laundering all circulation to & through the regulator? big banks ? NO, ALL BANKS DO stef. Profit on treasury bonds payed to the fed dose NOT go back to the treasury & you expect me to buy they give all unjust profits back? sorry stef your WRONG,You fail to see ALL MONEY published is the evidence of our very own promissory obligations to each other watch?v=Gy6Tkukv1A8
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@cosy18 Even more worthless than paper money LOL!
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@anon3560 extremely high interest rates will also be payed by the government on their debt. It will also kill the economy and this reduces the tax harvest considerably. But they could kill the economy and buy up the bankrupt stuff with there funny money ending up with control of everything. That is a scary deflationary outcome. I think they keep their subjects always on the wrong foot:subjects more indebted than gvt,they create deflation (rates up) and the other way around inflation.wewinyoulose
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Communism looks good on paper? Theft of the fruits of your labor looks good on paper? What?
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@PullTheTricker And who says any economy is fiat currency based? Do, I really do need more Marx with robots? Go...
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How to Be Free: #1 - Buy land. #2 - Learn to farm it, to grow your own food. #3 - Build your own home. #4 - Produce all the energy you need. #5 - Earn only enough tokens of exchange to pay your taxes. Congratulations. You've left the consumer-capitalist-driven slave engine you somehow think will lead to freedom. Now you are truly free. Don't want to do that? Then quit bitching about being fucked by your rich corporatist masters!
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Fiat currency is basically a medium of exchange that a bunch of people agree upon to be "worth" a certain amount. It could be anything, technically; big chunks of whale blubber...whatever. For obvious reasons, difficulty to counterfeit and portability are things that usually end up in the final product. Oddly enough, IDEALLY it is kind of like a cooperative agreement that makes it work, appearing to most as a "faith" in the money.
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@zbshogun Please, please read a book. There are NO requirements from a government entity under a Ron Paul presidency. There would be no use of force from the government to take back the gold and silver. In fact on the contrary, the benefits would be made so tempting for people to sell their precious metals, that on our own free will we would sell it. Again, I would suggest you read a book, not just on monetary policy, any book, Thank You. RON PAUL 2012! Gathering delegates continues...
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The problem with gold is that it has been owned by the Rothschilds for centuries. If Ron Paul was to bring forth a restoration to the gold standard in the US, he'll have to make sure that no more gold gets into the pockets of the Rothschilds since they own it. The London Bullion Market Association (LBMA), which 30 to 40 millions ounces of gold are traded on a daily basis, is also owned by Rothschilds.
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@inibo Well, that's why the VP proposes a steady state economy. You can not have an evergrowing economy on a finite planet, do you understand that? The problem right now is that we have all been living in today's society of constantly growing economy and can't imagine something different, but the walls are beginning to enclose upon us, we already see we'll run out of resources, we have to preserve nature, and our money is becoming worthless. Something would have to be done about it, right?
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@crazyknight2008 sweden is going paperless right now, you can find it on drudgereport
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No need. I know history and human nature. It is impossible to come up with a system that guarantees a "fair world" with no possibility for corruption since we are imperfect beings. A limited, democratic government which respects life and liberty and allows individuals to pursue their own happiness is best. It must be supported by a moral and educated populace. Capitalism is the best economic model for generating the most wealth for the most people. History proves the above to be true.
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Nice aristocrat garb... where's yer 'top hat'?
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Even if you read Modern Money Mechanics on the Federal Reserve website, they say that original signaure commercial paper holds much more value than any fiat currency. Fiat currency has signatures but they're copies, it's just paper folks, much like the 3,500 different types of scrip used in small towns before the Fed was established.
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@qedisk Well... that could be true, but i joined youtube way before discovering the "anonymous" movement :P There's no way to prove it to you, except talking to you. Also i doubt i'm making anyone angry and trolls try to make people angry while not really engaging into the argument by themselves :)
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The Fed makes 6% of every dollar they print! (by law).
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gold and silver is the only hedge to offset more of the same printing, and raising the debt ceiling. You dont get out of debt by going more into debt. its obvious, dont listen to the media when it comes to recovery stastics, those are lies. There so easy to predict. remember this thread, by the time the debt ceiling expires in 2013 lets see where the price of gold is then! Im pretty sure it will be higher than it is today. I see a new currency in 5-10 years too. Hopefully im wrong.
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To play the bond bubble you either have to go long TBT or short the TLT. And personally these vehicles are for short term trading only, in the long run they do NOT track the underlying. I think what I will do is get an account where I can trade CFD's and play it that way. If a guy had alot of money he could probably find a hedge fund which would be doing this, but im just youngin, too rich for my blood. I think CFDs or futures are the way to go.
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With competing currencies, it wouldn't matter what one bank does with their/our money over another, people will flock to the winner. With the US dollar backed 100% by the taxpayerfor the lagest firms/banks, it's no wonder why banks wipe their asses with it.
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It amazes me most of you fail basic cognitive logic let alone the comprehension of basic 2nd grade math. I guess most of you will only have yourselves to blame in the end really .But I myself do & will continue to hold those adversaries of the one & only solution accountable for they're very own actions & words by falsely claiming illogically there is no solution or some claim of alternative solution even by ones own egotistical but willful avoidance of addressing the one & only solution.
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A good suit cost an ounce of gold in the past & good suit cost an ounce of gold today but if we had a gold standard today like the past that suit would cost considerably less WHY? all the gold can NOT represent or equal the value of all property today thus it can only cause mass circulatory deflation hence one will see a crash virtually over night ,once this happens all property will be consolidated including property of physical gold for penny's on a deflated dollar by the last banks standing .
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