Before I start this video, I would like to give an important update regarding my channel.
Recently we have launched our website which is Creatologi.com where you can watch my videos
even before it gets Public on YouTube.
We are even offering some great services there, so make sure you check that out.
I will put a card here for same and will link it up in description.When I was a kid, my
dad used to always tell me "Listen, Son, Money doesn't grow on trees.
So you need to be very careful when you are spending it as it's a finite resource."
Now when he said finite resource, he meant to say that a country can only print a certain
amount of currency whose value must be in accordance with the money or gold reserve
they have, and certainly, gold is a limited resource.
It just cannot be created.
So this system of creating currency was called Gold Backed Currencies, where every single
currency printed was in accordance with Gold Reserve the country had.
But, these days banks are working with what we call as Fiat Currency, which has no gold
associated with it.
So, coming back to the quote "Money doesn't grow on trees", well, it surely doesn't but
the speed at which these banks are printing currencies, trust me, trees can't even compete.
Hello Everyone, I am Divyanshu.
You are watching Boost Your Brain and in this video, I am gonna reveal some real dark secrets
of money and banks which will leave you in splits.
Now, in case you are wondering what's the difference between money and currency, I highly
recommend that you should first check out the Part -1 of this video which you can find
here or I will link in up in the description below.
Now with that said, let�s jump right into it.
So, all these problems started when we introduced Gold Backed Currencies.
You might remember how I had explained the history of Banking and how fake IOUs were
created by intellectual people to gain more money.
But in modern times, this scam has reached to new heights, where these fiat currencies
have come into the picture.
Most of the countries today follow this system and it's so very complicated to understand
that a common person won't even try.
This system is made complicated on purpose so that most of us fail to understand it.
We are taught History, Geography and many more subjects but we are not taught about
finance which is much more important.
So I will try to break down these concepts into some parts which will be easier for you
to understand, and hey, in case you feel that you are not able to get it, don�t worry,
even I didn�t get it when I came first across it.
Just make sure you concentrate on the Parts I am making.
So the very first Part is Government Creates IOUs.
It all starts during election time when the government makes many illogical and false
promises to us.
They talk about how they will eradicate poverty and how things will be cheaper.
We vote for them as all of us want to be rich and we certainly want things to be cheaper.
But, money is not free.
Certainly, even government needs it to develop the country, function smoothly and to keep
few of their promises.
So they put forward this bill where they give reasons on why they need a large amount of
money, even bigger than the country�s income.
This type of spending is called deficit spending.
Now to carry out this spending, country�s treasury takes loans from banks by issuing
a bond.
Now, what exactly is a bond?
A bond is nothing but a glorified IOU where it�s stated about how much loan does the
treasury needs and by what time will they repay the sum with interest, example: it can
be like, Loan me a Billion Dollars and I will repay you back in 10 years with interest.
These bonds are nothing but our National Debts.
So, who pays for these debts?
Well, no surprises here, it�s we, the common people.
Our ancestors have been doing it, even we will, so will our upcoming generation by paying
taxes.
Now Part 2 of this whole process is Swapping IOUs and Creating Money
Let�s try to see how government gets the loan.
So these treasuries create Bonds and these Bonds put up for auction.
World's biggest banks attend this auction and they bid for that bond.
One of them with the highest bid gets the bond and they pay Bank with money they desire.
These banks know that this is quite a profitable business.
They take these bonds to the federal reserve and these reserves sign a cheque on the name
of the bank with a huge amount printed on the cheque.
In return of this, they keep that bond with them.
Now, the point to be noted is that the Federal Reserve has no money, in fact, they operate
on zero balance but when the write cheques, money is created automatically like a magic
trick.
The money is printed and the bank gets the money.
Now from this money Bank purchases new bonds from government and this process keep on repeating,
like a lifecycle.
These currencies created are Fiat currencies, not actual money.
So, basically, the deals are done between the government and treasury with banks as
a Middle Men who gets the commission on every successful transaction.
They keep getting richer but the country and people like us get poor every passing day.
Now Part 3 is where Government spends these numbers.
So, after getting the money, the government spends it on things like construction, public
work, war, military etc.
Government employees and big projects are funded by it.
Now again, we employees go and deposit our money in the bank.
Now most of us think that when we deposit money in the bank, we are saving it for our
future but in actual, we are loaning out our money to the government.
They can use our money to loan it to someone else, fund an ongoing project or gamble it
in stocks.
Now look, we get 8% on Fixed Deposits which cannot be broken prematurely but government
loan out our money, to someone else, on a minimum interest of somewhere around 12-14%.
I know it just looks like 4-6% extra but when you measure it with a huge amount of money
bank deals with every day, it counts up to millions of dollars or maybe billions.
Now Part 4 is where Bank Multiplies Money.
Now, guys, this part is the most important of all so it requires your full attention.
There's this concept called Fractional Reserve Banking, which is used by most of the banks
today.
Let's try to understand it with the help of an example.
Let's suppose you deposit 100 dollars into the bank.
So bank follows 10% Reserve Ratio that is it keeps only 10% of the amount deposited
by you and loans out rest of the 90% to someone in need.
So basically bank only has your 10 Dollars and your 90 Dollars has been loaned out to
someone else.
This 10% reserve is called as World Cash.
Now you might ask, hey, if the bank is loaning out my 90 dollars to someone else then how
are we able to see those 100 dollars reflecting in our bank accounts.
Well, Bank makes IOUs of those 90 dollars which again is nothing but a receipt, this
time an electronic receipt which has been typed on their computers.
Now if you look closely, you will find that there are 190 dollars in existence, 100 dollars
is reflecting on your account and 90 dollars is with another person, so now, making it
190 dollars in total.
This is a net profit of 90 dollars for the bank.
Hey, hold on, the process doesn't end here.
So now the guy with 90 dollars purchases a car or builds a house.
He pays it to someone else who again, goes to the bank and deposit the money.
The bank again follows the 1-% Reserve Ratio and now that 100 dollars have created 271
dollars.
This process goes on and it is estimated that a 100 dollar can grow like this till around
a thousand dollars.
Moreover, some banks operate on less than 5% Reserve Ratio, hence, making more profits.
Now you might ask, hey, if that�s the case, how are we able to withdraw all our money
at the same time?
The answer�s quite easy, there are millions of people who have deposited their money into
the bank and bank will simply give you the money it has in the form of World Cash.
And, not even 1% people of this world will withdraw all their money at the same time.
So, you see, they are playing safe and risk in negligible.
Now trust me on this, even if 20% of people in this world demand cash for their deposits,
banks will run out of business.
Now, some of you might even say.
Hey, what�s the big deal?
We anyhow are getting our money when we want, and who cares how they operate?
Well, this process increases cash flow in the country which results in decreasing value
of money.
This causes Inflation.
I have explained about Inflation concepts in detail in Part 1 of this video.
Make sure to check that out.
So now that you know the monetary system, don�t you feel it�s nothing but a big
scam where money is literally being created out of thin air, just by writing on cheques
or by creating IOUs, or by typing on computers?
This is not the supply of money, but just a supply of numbers which we can see reflecting
on our bank accounts.
Now to make it worse, let's go ahead and look into Part 5 which is Our Numbers are taxed.
Yes, we work day and night, valuing these numbers and at the end of the day, Government
takes a big part out of these numbers we make in form of taxes.
These taxes are not used for country's development, instead, these are mostly used by our government
to clear out debts.
See, who's paying for the national debts.
Just think about it, how much taxes do we pay in our entire lifetime to the government
which in turn goes to people who owns this entire system.
Well, who actually owns this system?
This is one of the biggest secrets and I will tell you that in just a minute or two.
Now let�s see the last part of this process which is Owners of Federal System.
This whole process benefits only those who creates currencies and gets it first in their
hands.
They can use the currency in prior before it impacts our economy.
Now, the biggest reveal, this whole Federal System isn�t Federal, which means that these
are controlled not by government but by some private organisations.
Now, who precisely are the owners of these organisations, well, I can't name them but
these are the people who are owners of world's biggest banks who gets profit at every single
step of this process.
Now I know it feels really bad to discover these hidden secrets but friends, it�s never
late for a new start.
The biggest strong point of this system is our ignorance and lack of knowledge.
So, if you take the responsibility of sharing this knowledge with all the people you know,
then people certainly will come up with ideas to avoid it.
We can only fight against it if we know the system properly.
So, educate people about finance.
Now to let you guys know, I have collected this information from a book named Guide to
Investing in Gold and Silver by Michael Maloney.
In case you want to know about it in detail, you can purchase the book online with the
help of link which I have provided in the description below.
Like this video, if it was of any help and please do share it with your loved ones.
Subscribe to my channel if you have not already as this subscription is completely free.
See you all soon, stay blessed.
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