You are watching ColdFusion TV
Welcome to another ColdFusion video.
I’m going to start this video with a quote.
Henry Fond once said:
“It’s 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.”
I quote this,
because it encapsulates the fact that the content of this video
may be unsettling compared to the videos that I normally make.
I still feel compelled to make this video
because I’ve been exploring the financial world for the last four years,
and it has definitely given me a more complete view of the world.
I wanna share some of what I’ve come across with you guys.
I’m also gonna do a video about cry-ptocurrencies like bitcion in the future
and to understand why bitcion and other crypto-currencies may continue to rise.
It’s critical that you understand the contents of this video.
I hope that you find this topic interesting
and that it inspires you do your own research afterwards.
Now , with that said , let’s begin.
Alright! Here it is.
So who controls all of our money?
It’s a simple question!
We all know that you and I don’t control it.
Our employees don’t control it.
The companies that they work for don’t control it.
So who does?
Where does it even come from in the first place?
I’ll give you a hint…
Money does not come from the government.
It’s a seemingly obvious question that’s never asked or taught us in schools for some reason.
Unfortunately, most people’s lives are basically dedicated to money.
It’s all people ever worry about or talk about.
We go to school to learn basically how to go to university,
to learn the skills to get a good job.
So that we can trade hours of our lives
all for this thing called “money”.
So why wouldn’t you want to know where money comes from
and who issues it?
Today in this very special video,
you’re about to find out the answers of this question
of “who controls all of our money?”
People today can tell something isn’t quite right with our financial system,
but they just can’t put their finger on it.
Some people think it’s the failure of the government,
others think that it’s the failure of the capitalism itself.
This video should clarify a few things.
The year is 1694
and England had just suffered through 50 years of war.
Exhausted, the English government needed loans to fund their political means.
Brainchild of Scottish banker William Paterson,
It was decided that the privately owned bank
that could issue the money to the government out of thin air,
was to be the solution.
This was the very first modern central banking system in the world.
Central banking is more influential than laws, governments and politicians,
but strangely not the focus of the general public.
Fast forward to the early 20th century,
and after two failed attempts,
a group of bankers wanted to put a central bank in the United States of America.
It was December of 1910
and senator Nelson Aldrich
broaded a private train car in New York with six others.
The six were not to be spotted by any news reporters to avoid questions.
Their destination: Jekyll Island off the coast of the Georgia.
The meeting went for nine days and from that they created the Federal Reserve System.
This is all documented and a matter of public record.
Some of them went on to write about the meetings in their personal biographies.
Here is quote from Frank Vanderlip,
president of the National City Bank of New York
February 9th 1935 in The Saturday Evening Post:
“I was as secretive
indeed, as furtive
as any conspirator.
Discovery, we knew, simply must not happen
or else all our time and effort would be wasted.
If it were to be exposed that our particular group had got together and written a bank bill,
that bill would have no chance whatever
of passage by Congress.”
The six men that Nelson Aldrich brought together
included the head of banks, branches of government, such as the Treasury
and some of the richest people on the earth at the time.
To give you an idea of how rich they were,
in 1910 these six men represented a quarter of the world’s worth.
The bankers told the American public that
the purpose of the system was to stabilize the economy
and to stop the grip of the Wall Street banks over America.
The problem was
the guys that wrote the bill were the very same people they said they’d stop.
If they successed,
it would give a small group of men the ability to create money from nothing
and loan it to American government with interest.
So why was it done in secret?
Because the American people didn’t want a central bank.
Back then, unlike today,
people knew what central banks were and understood them very well.
Everywhere a central bank went, there would be wealth inequality,
wild swings between economic booms and busts
and after each bust,
those in the top of society mysteriously came out richer, while everyone else got poorer.
Europe was the running example of this at the time.
The Federal Reserve was originally drafted as the “Aldrich bill”,
but when it came into Congress, they recognized Senator Aldrich’s name and smelled a rat.
The bankers needed better cover
They decided to send two millionaire friends to carry the bill to quell the suspicions of the Congress
and renamed it “The Federal Reserve Act”.
Next in this textbook lesson of deceit
the bankers set out to fool the American people through disinformation.
In the newspaper of the day
the bankers screamed and protested against the new Federal Reserve bill.
“It would ruin the banks!” they exclaimed.
The average person read the protesting articles of the bankers and thought to themselves:
“If the bankers hate it, it must be good.”
and then they ended up unknowingly supporting a Trojan horse.
The bankers also fooled the Congress
by putting clauses in the bill that limited their power
only to remove them once the bill was passed.
A double head fake of the public and Congress was all it took.
The bill was passed on December 23rd 1913 while most of Congress was out on holiday.
And with that, a small group had completed monopoly over the issuing and creation of American money.
Today the Federal Reserve is the most powerful entity in the United States
and they’re not ashamed to admit it either.
Here is former Fed Chairman, Alan Greenspan,
What should be the proper relationship between the chairman of the Fed and the President of the United States?
好的 首先 美联储
Well, first of all, the Federal Reserve
is an independent agency and that means basically that
uh…there is no
other agency of government
which can overrule actions that we take.
What the relationships are don’t frankly matter.
In addition to this,
it seems that Feb can’t even be touched by investigating parties.
所以我问你 如果你的机构 根据彭博社
So I’m asking you if your agency has in fact , according to Bloomberg,
extended nine trillion dollars in credit, which,
顺便说下 平均下来我们国家每个男人 女人和小孩子
by the way, works out to 30000 dollars every single man,
woman and child in this country.
I’d like to know: if you’re not responsible for investigating that,who is?
Well, we actually…we have responsibility for the Federal Reserve’s programs and operations
audits…to conduct audits and investigations in that area.
In terms of who’s responsible for investigating…
Would you mind repeating the question one more time?
主席 我时间到了 但我必须如实告诉你我很震惊
Mr.chairman, my time is up, but I have to tell you honestly I’m shocked to find out
美联储中没有人 包括监察长 来监控内部
that nobody at the Federal Reserve, including Inspector General is keeping tracks of this.
“So what does all of this have to do with me? ” you might be asking.
“I don’t even live in the US”
Well, two reasons.
the central bank model from the bank of England and the United States
has now been put in all countries
甚至因为欧洲央行 也叫ECB 欧洲部分地区的权力得到了统一
and even consolidated power in parts of Europe as the European Central Bank or ECB.
This united separate countries under one economic policy.
The only places in the world that don’t have central banks
are North Korea, Iran and Cuba.
In 2000 this list suspiciously included Afghanistan, Iraq and Libya.
And number two:
since the end of World War Ⅱ, the US dollar has been the reserve currency of world.
This means that all central banks hold US dollars in their reserves.
In other words, all other currencies are backed by the US dollar.
This directly links to your country to the Federal Reserve’s monetary policy in America.
More on this later.
When the post-World War Ⅱ monetary system,
called the “Bretton Woods” system, was created,
all US dollars were backed by and exchangeable for gold.
A byproduct of this was that currencies used to be very stable in relation to each other.
因为如此 所有的国家 汇率都被固定下来
For that, all the countries, the exchange rates were fixed
and year after year you can predict what prices were going to be.
You could start a business elsewhere,
know if you were…you know you could calculate the profits,
business was much much easier before floating exchange rates.
Unfortunately, in 1971,
due to a falling US dollar, international capital flows into gold
and the funding of the Vietnam War,
President Nixon took the US dollar off the gold standard.
I have directed secretary Connally to suspend temporarily the convertibility of the dollar
into gold or other reserve assets.
Now the dollar was floating and backed by nothing
and has been ever since.
OK, so let’s think a little: if the US dollar is backed by nothing
but the world reserves are backed by the US dollar intrinsically since 1971,
doesn’t this mean that all currencies are now backed by nothing tangible,
only trust in the American government?
Well, this is correct!
Money backed by nothing is known as “Fiat currency”
“Fiat” in Latin means “let it be done”.
换句话说 政府说它是钱 它就是钱
In other words, the government says it is money, so it is.
A consequence to having money backed by nothing is
that whenever the Federal Reserve creates money
it dilutes the currency supply of all other nations
because their reserves are backed by the US dollar.
All countries’ reserves are worth less each time money is created.
In the past few years, the Federal Reserve has printed trillions of dollars
and countries like Russian and China have notice this.
As a reaction to the money printing, these countries have been selling US dollar reserves
and buying gold over the same period.
But wait a second!
Some of you clever thinkers out there may have asked yourselves:
“If every currency on earth is backed by nothing,
how am I able to pay for things?”
是的 结果就是 今天整个经济体制仍在运行因为它靠信念支持
Well, as it turns out, the whole economic system today is running because it’s backed by faith.
Faith that you can exchange you unit of currency for goods or services.
In a way, part of that faith comes from the fact that not many people actually know where money comes from.
We’re about to find that out in this video.
What does a central bank actually do?
A central bank is essentially the entity that manages a nation’s money supply
and it can loan money to the government with interest.
In the United States and most other countries it works like this:
When the government needs more money than they receive from taxes
they ask the Treasury Department for money.
The Treasury then receives an IOU or bond from the government.
财政部 通过银行 将借据给美联储
The Treasury, through the banks, gives this IOU to the Federal Reserve.
The Fed then writes a check for this IOU
and hands it to the banks.
在与银行的交换中 钱就产生了 它可以支付政府账单
At this exchange at the banks, money is created and it can be used to pay government bills.
Where does money come from?
So hang on!
Where does the Fed get the money to be able to write this check?
They get this money from nowhere! They literally just invent it.
Here is a quote from the Boston Federal Reserve:
“When you or I write a check there must be sufficient funds in our account to cover the 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. “
所以 本质上 他们在写支票时候是从一个没有钱的帐户创造钱
So, in essence, they’re writing a check and creating money from an account that has no money in it.
The money the Federal Reserve creates can be used as legal tender to buy things,
and eventually makes its way into the real economy.
If you or I did that, we would go to jail for fraud,
but they can do it because they invented the system.
This is the same system used throughout the world today.
Another part of this money creation happens at the commercial bank side.
Every time you take out a loan to buy house ,car and TV,
banks create money out of nowhere to give you this loan
and you still have to pay interest on it.
And don’t just believe me when I say that.
Hear it for yourself from the horse’s mouth, the people who running the system,
Graham Towers, former governor of the Central Bank of Canada states:
“Each and every time a bank makes a loan, new credit is created.
New deposit. Brand new money.”
Paul Tucker, deputy governor of the Bank of England:
“Banks extend credit by simply increasing the borrowing customer’s current account.”
So what they basically saying is that each time the bank makes a loan,
the bank doesn’t use other people’s deposited money and give it to you.
而是创造了新钱 如今 这意味着在电脑里面的几个代码
It creats new money. In modern times, this means typing digits on a computer.
97% of all money is digitally created like this.
Only 3% is the physical cash and coins that we carry.
Another crazy thing that commercial banks can do is
lend out ten times more money than they actually have in reserves.
This is called fractional reserve lending.
So who wrote this ridiculous system into law?
For the United States, it was part of the Federal Reserve System
drafted in 1913.
And again, this is the same system used throughout the world.
So what’s the issue? Why should I even care?
Well there’s consequence.
When more loans are given out, more money is created
and the rest of the money in circulation is worth less and less as the years go on.
This is known as inflation.
In a way, inflation is basically a tax that we all pay for the fraud of money printing.
Easy money now in exchange for tax on our future generations.
It’s also why in 1950
a house used to cost 7000 dollars
and a car 2000 dollars.
Obviously, this is no longer the same today.
Things will always keep getting more expensive as long as this system is in place.
This is actually kind of okay because wages grew in relation to inflation,
until about 2008.
Why this stop happening is a story for another day.
“Debt” and”Money” isn’t what you think!
So things are already pretty crazy, but they get even crazier.
The more you look into it, the stranger things become.
So remember how we were talking about how central banks and commercial banks
can create money out of nothing.
This procedure actually does create something.
It ceates debt.
Let me explain:
When you take out a loan,
it’s written down as an asset in the bank as a negative form,
kind of like a negative value of money, or otherwise known as debt.
Under this system, debt is actually money.
And again, don’t just listen to me.
马里纳·艾克尔斯 前美联储主席 说道：
Marriner Eccles, former Governor of the Federal Reserve states:
“If there were no debts in our money system , there wouldn’t be any money.”
所以 本质上 以前黄金是我们经济的支柱 现在是债务
So, in essence, instead of the gold being the backbone of our economy, it’s now debt.
The system we’re under now is sometimes referred to as “the debt based monetary system”.
It requires that debt always grows.
Countries and people must become deeper in debt.
所以这体系下就会有更多的钱 因为 要记住 债务就是钱
So that there’s more money in the system,because, remember, debt is money.
If people and governments stopped borrowing money and paper clones,
债务不再增长 货币供应会收缩 经济体系就会动摇
the debt doesn’t grow, the money supply shrinks and the system falters.
It truly is bizarre, but we all live in this system each and every day.
How do central banks control money?
The Federal Reserve and other central banks control money
by adjusting its supply and how much it costs to borrow money,
otherwise known as the interest rate.
With these tools and as a consequence of human group psychology,
central banks can create booms and busts in the economy at will
and also to stall and derail an economy by messing with it.
Let’s take a quick case study.
In the year 2000,
美联储主席 艾伦·格林斯潘 把利率下调至1%
Federal Reserve Chairman Alan Greenspan cut interest rates to 1%.
He did this to try and fight off the recession from the dot com bubble
and encourage people to borrow money.
When interest rates are low,
if you’re borrowing money, you save a whole lot on repaying mortgages.
Since the 1% interest rate hadn’t been seen at the time since 1950s,
it was a pretty good deal.
Greenspan’s idea was that he could create a wealth effect.
People would start to buy houses, the prices would go up
and the people would feel wealthier
and spend more money in economy and stimulated.
Greenspan’s sure succeeded in getting people to borrow money to buy houses.
But they borrowed too much
and the result was the 2008 housing bubble.
This is a prime example of what can go wrong when central banks mess with an economy.
Yes, corrupt bankers have a lot to answer for on their role in the 2008 crisis.
But the Fed has a far bigger long-term impact.
Even crazier things are happening in Japan.
Their central bank is buying so many stocks
that they were the number one buyer of Japanese Stocks in 2016.
so they have part ownership of companies
with money that they created from nothing.
So, in essence, it is the central banks that control our economy
and the central and commercial banking system together that control all of our money.
The difference is central banks can create money at will
while commercial banks need loans to create money.
To give you an idea of people’s views of central banking
when people actually knew what central banks were,
here’s a couple of examples.
在1881年 那时美国总统 詹姆斯·加菲尔德 说道
In 1881,then President of the United States, James Garfield states:
“Whoever controls the volume of money in any country
is absolute master of all industry and commerce.
when you realize that the entire system is very easily controlled
one way or another, by few powerful men at the top,
you’ll not have to be told how periods of inflation and depression originate.”
Benjamin Franklin, in his autobiography, stated
that the prime reason for the American War of Independence
was a battle over who actually controlled and issued the money of new colonies.
Moving on to more modern times,
诺贝尔奖获得者 经济学家米尔顿·弗里德曼 说道：
Noben Price winning economist Milton Friedman states:
“The Federal Reserve definitely caused The Great Depression
by contracting the amount of currency in circulation
by one third from 1929 to 1933.”
So, with all this being said,
some would argue that central banks are not inherently a bad thing.
They just need to be part of the government and not privately owned.
The government should be able to issue its own money for the benefit of the people
and shouldn’t have to pay a massive interest on its own debt.
This was tried at least once in the United States by President Lincoln.
He stated this:
“The Government should create, issue, and circulate all the currency
and credits needed to satisfy the spending power of the Government
and the buying power of consumers.
By the adoption of these principles, the taxpayers will be saved immense sums of interest.
Money will cease to be master and become the servant of humanity.”
Abraham Lincoln then issued his own government money.
It was called “the greenback”.
No further comments on that story.
So I think we’ll end the video there.
There’s so much more that I could cover about
what central banking decisions led to what revolutions around the world.
Pretty much when you look at it, all revolutions and all wars,
when you dig through everything, it all boils down to money.
I could also have talked about the new global movement
of those who are rejecting the debt based economic system.
People are starting to move their currency into gold, silver and crypto- currencies like Bitcion.
So there is a light at the end of tunnel.
That’s a whole nother story for another day.
不管怎样 如果你全程观看了视频 那恭喜你
Anyways, if you’ve watched the whole way through this video, congratulations!
You’re one of the few who have found out the hidden truths about who controls all of our money.
I think I’ve only met about four people in real life that
have been aware of the debt-based economic system.
It’s strangely unknown, but it’s as true as anything.
I haven’t showed you all the quotes of the bankers and the former heads of the Federal Reserve
telling you from their own mouths how the system actually works.
If this is your first time hearing all of this,
我鼓励你 就像我之前说的 去做你自己的调查
I encourage you, as I said before, to do your own research
and then you’ll start to see the bigger picture
and the world today will make a whole lot more sense.
If you want some good starting resources,
I recommend Mike Maloney’s “Hidden secrets of money” series.
It’s here on YouTube and I’ll leave a link below.
Mike is a very knowledgeable guy
and I’ve had some great long conversations with him about the economy.
If you’re into reading and you want to know more about the history of the Federal Reserve,
I recommend the book by G.Edward Griffin, “The creature From Jekyll Island”.
So anyway, I think I’ll stop talking now.
Thanks for watching this video, it’s been DaGoGo
You’ve been watching Coldfusion
Feel free to subscribe this channel if you’re new.
This isn’t a stuff I normally make, but I think you’ll like the other stuff anyway.
I really hope you learned something from this video
and I’ll see you again soon for the next video.
Cheer guys, have a good one!
Coldfusion it’s a new thinking.