 Here's a question that clover asked on our discord page, and you can go to our discord chat only time you'd like We've got different folders Oops, this Doing good. I hope you're doing well. Also You can come to our chat anytime you want and just type in exclamation mark discord and Link will pop up there. The link will be in the description of this video after it's been loaded up But basically in our personal finance folder in heavy topics clover asked the following question that How interest rates arise and interest rates or is going to affect our current economic system? Interest rates is relation to in to inflation. No interest rates should be In relation to inflation to a certain degree. That's what centralized power likes to do but the way you need to think about interest rates centrally controlled interest rates is Banks capital as power centralized institutions that control monetary policy Okay of a nation Basically used interest rates to manipulate the economy to Social engineer a society Okay, as well as Participating in a crony capitalism where Certain segment of society is able to acquire Cheap money, right? Basically free money helicopter money. Some people call it or whatever it is just drop money Basically can get money at no cost and then they can take that money Okay, take that currency and put it into systems where they make Interest or at least higher interest then How much is costing them to get the money, right? So let me give you let's clarify that for a second, right? So interest rates right now function like this you have a central body That decides what the interest rates going to be Okay, this central body is controlled by banks There are different types of banks, but in general banks control this body, right? so these groups of People that are sitting on the boards of directors and a lot of large corporations and stuff like this Control the central body. Let's call this the Fed. Let's call the Federal Reserve Bank And these are privately owned institutions, right? Now. There is such a thing called government here go It's a little thing over there. No one pays it attention because the original definition of government was By the people for the people but it's not really This is this this thing here that runs a nation is basically controlled by these people here Right, so these people here control the monetary policy of this nation, right? and What happens is they set the interest rate and the interest rate basically Is the control of money, right? Yeah, I couldn't find a question here. I think it's on our discord. I looked up But basically you wanted to know how interest rate will affect our society, right? That's what we're talking about here, right? So these private institutions right control the monetary policy of a nation and that basically means How much money is in the system, right? They control the interest. So when there's low interest Other institutions, whatever these institutions might be Okay, some of them are banks Banks some of them are companies Some of them are just institutions. Some of them are people Some of them are this some of them are that they're just different Whatever is in the economy really that gets the first pick The money goes towards these guys Right, whatever the interest rate is going to be now There's a lot of people that are controlling these companies, right? Tech companies Tech companies, right? Wall Street Wall Street, right? There's a lot of people that are sitting on the board of directors of these companies or own these companies that are also On the board of directors and have stakes in these Banks that control the interest rates and vice versa. A lot of people here have Stake in all of these companies, right? So what happens is these guys decide the interest rate of a nation and that Decides how much money is going to be pumped into the system? And when the interest rates are really low, whatever they may be These people, well, whatever the interest rate might be These people get first dibs at whatever interest they're collecting, right? And then these people These might be the banks might be private investment funds or whatnot. These people filter out the money Or these institutions filter out the money into the general economy Right? me and you in terms of inflation in terms of debt Right? Hey, this problem isn't a place for this, but I unfortunately slept in and missed the live stream this morning I was planning on asking you about inflation. Oh, there it is. That's right. That's the question Oh, God. Awesome. So this was the question that was posted on our discord I was planning on asking you about inflation and the Bank of Canada planning on raising interest rates What what your opinion on all of that was and how our raising interest rate will help as they say combat inflation but What else that could affect if it's too much to type let me know Maybe I'll try to ask you next live stream so we can get your response in a video format. Awesome Hope that's so that's the one out of God. Awesome. Yeah, that's it Sorry, I stepped away and I couldn't control no problem clover. Thank you very much. I'll go for tracking it down Okay so recap These private institutions really control the Federal Reserve that is supposed to represent the government which is supposed to be a body centralized body put to put there By the people for the people but it's not because this doesn't have really have too much say regarding What the Fed does because the Fed is mainly controlled by these private institutions and organizations these guys control the money flow into the system by manipulating the interest rate, okay, and the institutions people Organizations that get first dibs on the amount of money when the money is coming out or who's being flooded with money Right because these people have a lot of debt as well So what they can do is sell the debt to the Fed right the Fed buys their crap junk, right? And then these people Their wealth goes up, right because they're getting cheap money And then they filter out the money to the people who are supposed to control the government, but they don't right these people Flood the money or pass on the money to the people, right? Now guess what? Whatever interest these guys are getting this money at This interest rate is much higher, right? So for example right now we take an extreme example if we take an extreme example Fed's fund rate. I don't know what it is in Europe. It's negative, right? Negative, right? But let's assume it's 1% right now That the Federal Reserve is making money available to these institutions, right? well The amounts the the money that these people can get From these institutions the interest rate varies depending on how good your credit is and which Institution you're dealing with, right? So the best interest The lowest interest that any of these people will ever get a chance To get money at would be their mortgage because there's Back securities on that, right? Your land your houses your collateral, right and Mortgage rates are anywhere between. I don't know what they are. We're not carrying mortgage, right? We don't do mortgage, right? Anywhere between let's say if you're lucky if you're absolutely lucky probably 4% 4% and if you're dealing with credit card companies, you're paying close to 28% interest, right? These institutions get interest at 1% If not lower and they give it to the people at anywhere between 4 to 28% that's a nice scam Right? One reason is to scam because these institutions are usually too big to fail So if they loan out a ton of money because there's people working here, right? There's a little little bankers and money managers and stuff working here and a lot of them Don't just make a certain set salary right their Income is also dependent on how much money they lend out, right? so they take a little cream off the top for Certain amount of money that they lend out. Okay, so there's Lots of hands in the cookie jar. They're taking scraping a little off here scraping a little off here, right? The burden falls on the people That's a huge differential There are trillions of dollars being made here, especially when you consider 40% of the money supply in the United States All time for the last 100 years was released At least 50 years was released in 2020 For 2020 2020 2021 40% of all the money out there was just released Flood pipe into here, right stocks went up land went up Inflation so what this does This thing here the flooding of the money Creates inflation. Let's put inflation here Inflation in the United States and Canada as well the accepted inflation, right? Let's read some of the banks bank get money from the bank Let's read some of the banks bank get money from the government and from regular citizens from opening account Yeah, the regular citizen opening counts This is trickle of the money they get the regular citizen opening up an account in a bank of a hundred dollars allows the bank because through fractional reserve banking to lend out at least a hundred times that amount right so Private citizens opening up bank accounts in banks is only anywhere between 1 to 10% of the actual money If that that the banks are able to play with right because these guys just print money right I hear from this former investment banker that banks profits 80% of trades they make yeah They basically never lose it's great. They do but if they lose They just hit up the government and government through the Fed just gives them a shitload of money free money right bails them out right So they're too big to fail. They make risky bets there. There's no doubt banks lose money right or they can lose money, but There's no repercussions for them. They get more money From these guys, right? Did you know that percentages are reversible 16% of 25 is the same thing as 25% of 16 25 is it I do the calculations all the time. I don't try to memorize it Yeah, because of distributive property distributive property. Yeah Yeah, yeah Ronnie cool. Thanks Joe. I like that. I gotta remember that All right, so check this out inflation in the United States right now because that's the one I'm tracking is running at 6 7% 6% and That's accepted to 7% inflation CPI consumer price index right It's much more than that by the way, it's into the double digits easy easy It's running anywhere between 15 to 25 percent. Okay What that does what this does right? makes this Mean that it's crazy free money Right because if you're getting money at 1% you could put it anywhere anywhere. I don't care where All right, and you're gonna make money because inflation is 6 to 7 percent Right investment wise anyway, right? So you could buy assets right you could buy assets and You're making money, right? Now the problem is Joe blow here That's the official they're recognizing this is the bank rate or the The interest rate for the Fed for in the institutions now if you take your money and put it into a bank, right? Savings account Savings account If you put your money into a savings account at best you're getting like 0.5 percent interest So just imagine You want to save money? You don't want to take any risk. Is that the primary? I it's it's gotta be like around 1%. I think it's around 1% depending. I'm taking an average like Your country wherever you are Figure out what the prime rate is right now, right? As far as I see a prime rates negative in many places, right? They're They're charging people Money if you put your money in a bank savings account They don't you have to pay the bank money to put money in the bank. It's crazy in Canada is 0.25 isn't They say it's going up to 7.5 End of year. Yeah, it's gonna go up like a lot of people saying they can't raise raise the interest rates because a lot of Institutions will go bankrupt and a lot of people will go bankrupt because they can't afford a Kick up an interest rates, right? Because everyone's mortgaged out Margin out to the max right margin debt right now or debt right now in Canada is The most it's ever been Right, so just imagine raising the interest rate from point to five 0.25 0.25% to 1.75% What is that going to do what is that going to do to people, right? People have mortgages at 4% right if Prime rate goes for 1% or point in Canada 0.25% To 7.1 or 1.75% What that's going to do is gonna kick up the interest that People are gonna have to pay on their debt right But these people here are Leveraged they they're maxed out Right. They're highest debt in Canadian history on Canadian citizens, right? So we're gonna get the extra money to pay this debt because that's gonna kick up, right? If this is going up by how many times? 0.5 is one time 0.75 is two times three times four times five times six times 67 times 0.25, right? It's gonna bankrupt people. There's gonna be F-sus, we need F-sus idea. Oh, yeah from Mr. Robot. Oh, so shit rolls downhill They raise the rate and everyone with that will end up paying more exactly clover, right? Now the their idea of raising interest rates is to calm inflation Right because they're saying oh, we're gonna raise interest rates. So what that's going to do is is stabilize inflation which is basically make things not increase in value or cost as much, right? So a Jar of honey that you're paying for, you know, if you're buying it for ten dollars, let's say If you're paying six to seven percent by the way, this was per month basis last month was seven percent in the United States I forget what it was in Canada. Okay, that's huge That's annual comes out to ridiculous amount, right? But if you're paying for Jar of honey ten dollars last year Right now it's probably you're paying around $15, right? If you raise the interest rates, their hope is that next year it's not gonna go up to 2250 or whatever it is, right? It'll stabilize around $15 or maybe go up to $16. So even though you're gonna be paying more interest in your debt you're gonna stabilize or Control inflation, so you're not paying as much for certain things, right? Let me just start a season to the reset looks like in me Okay, so That's one of the effects of inflation Stabilizing prices, which to a certain degree is good It will increase savings account interest that people get to a certain degree. It's good. Okay It will devastate those who are in debt, which is pretty bad Right, but one thing it will do it was it will help out these people make a shit little tons more money Why because these people here are sitting on a lot of assets a lot of capital Okay, as long as they're not Leveraged right and they control the money supply and they get first dibs at the money Right the differential that they're getting money at relative to what the general population gets money at is huge Right, so when these people start going bankrupt These people buy these institutions buy out that stuff, which is something we've seen in the past and it's happening right now, too They buy out all these assets, right? So for example lockdowns and what's happened to the economy in the last two years a lot of mom and pop shops are closing their doors Right a lot of private business is closing their doors And what's happening the business that the people were spending in their community the money that they were spending in their community is Going into these these institutions so these institutions are getting bigger and bigger and bigger and bigger Right and who are these institutions these institutions are the same people that control these guys right sit on the board of directors like black rock right black Rock they own shares and a lot of these companies, right? So they control these they control the money supply so wealth stays here Right wealth stays here The burden is carried here Right the burden is carried here That's what happens when centralized institutions use interest rates To control the economy of a nation or a region or the globe right it centralizes wealth because People here don't have any control of this right of the fiat currency Of this right however however right now systems are changing Where there are alternative ways of doing business inside here that severs This link Right, let's use red to do this right severs this link and says We don't need your fiat We got our own currencies Barter system cryptocurrencies different types of assets And this becomes a self contained economy Okay outside of The centralized power That is what we need right that's how people obtain their freedom Right Without being without being under the control Of interest rate manipulation, right? This could be gold silver Commodities cryptocurrencies collectibles collectibles Value your your personal Services you provide to people in here, right? And what is what is the key to for these people to Maintain their freedom, right to not become slaves to the system and really this is huge huge huge the people We have to make sure that Currency does not become 100% digital We cannot buy into essentialized digital Currency, okay, we have to make sure that cash Privacy right cash is always an option in an economy We have to make sure that every transaction does not go through the their system Right because if every transaction goes through their system, they can They can do whatever they want to your wealth anything they want to your wealth including seizing it Right digital currency our god says digital currency is slavery Right 100% digital currency is slavery Okay You need to we need to make sure that for us to be free Cash is always an option in a society I hope that's sort of a Gives you an idea of how interest rates are going to play out in this thing Sun clover That seems like a familiar pattern. Isn't that what happened during the great depression? The masses suffered and the rich bought everything up. Yeah, and that's happened in 2008 the financial collapse scam as well, right? Red cross decentralization. Oh my god, Ronnie if currency becomes digital there will be An entity that's going to have an easier time to track all of our transactions I think yeah the thing about digital is it leaves a trail it leaves a trail And they can turn it on and off anytime they want right? Oh, you didn't do what the central institution Told you to do well, you don't have access to your bank account Right oops It's pure slavery Right Yeah, that was fantastic. Thank you brother. My pleasure sun clover I hope and we could talk talk a lot about this later on and we can definitely bring in some numbers to take a look at the CPI We did the stuff in our personal finance videos by the way, right and if anybody wants to know you can go to our A censored tube channel and we have a personal finance playlist and the first eight videos are so sort of lay down A lot of the things that we talked about but a lot more detail and we're using examples especially the CPI and inflation and investments and stuff Gordo one two three. Thank you. I learned a lot in a short amount of time. Awesome. Very happy. Thank you for being here Ronny technology is always evolving. I think blockchain will become Archaic one day. Yeah, agreed. I agree clover funny. You mentioned 2008 That's around the time bank of canada lowered the rate to what it is right now. Yeah It would they flooded they flood they gave their people So much money So much I wrote a lot of articles during that time talking about what was going on And talked about the collapse that was coming in 2000. I started articles writing articles about that in 2006 and 2007 I put pieces together warning people that there was going to be a serious serious crash in the system Year and a half two two two a year in a year Preview Pre-crash, right? There's there's a lot of people that messaged me and said I saved them a lot of money Because they gave them a warning about what was was about to happen, right? Just got to follow the money if you see what's going on Hello on the snake the biggest flaw I see about digital currency is that if if the electric grid goes down How are people going to trade with the digital currency? The government can easily Do that to render us broke instantly indeed. Hello on the snake and look into cyber polygon Right that is definitely something in the works Blank 1 0 2 2. Thank you very much for twitch prime sub 15 minute warning. Wow. Wow. Wow This was a good live stream Right on right on mathematics Right on right on mathematics great questions by the way gang Uh fun times fun times. I hope you enjoyed the discussion Um fun to do we did a couple of physics questions and some economics It's fantastic math and real life. That is what is needed Gang thank you for uh being here Thank you for the follows. Thank you for subscribing For those of you that are subscribed. Thank you for the questions. Thank you for the discussion mods. Thank you for taking care of business