Monetary history part 5

2nd chapter monetary history modern times

Monetary History modern times.
Old as Gold and Silvers monetary history is, it is just as relevant in modern
times as ancient times. Gold was and still is mainly being used by kings or
the modern equivalent- Banks nowadays or for very big financial accounting
right from the start of history, silver has far more been used as money
throughout history. Silver being the peoples money. Gold not being used for
day to day purchases, only less frequent larger transactions.
As soon as paper was invented or animal skins the first forms of paper, the
bankers persuaded people to store their so called heavy and so they said
cumbersome silver in the bank and then they would issue more convenient paper currency as receipts for their real money. They could then have
exchange rates for these different types of currencies be they tally sticks or
shells or animal skins with writing painted on them (the first forms of paper
currency).
The problem was the bankers cleverly found out that they could issue more
currency receipts than they held gold and silver. Anyone could write on a
piece of old animal skin this is worth 1 ounce of silver. But no one would
believe it was worth 1 ounce of silver. But the bankers had the power to write
this is worth 1 ounce of silver on as many skins as they could create and
people believed it was, because they thought the bank held 1 ounce of silver
for every "paper" currency "note" they issued. Of course the bankers
deceptively issued far more than they held real money. This is always how the
monetary cycle seems to start. The people would never swap silver for paper
if they did not have confidence in that paper to start with, but over time the
confidence is taken for granted by the next generations just as we are seeing
in the early 21st century. But that confidence is slowly being lost as I am
writing this. The exact same monetary cycle that has repeated for thousands
of years is still repeating in our time.
Then over time people began to suspect the banks were issuing and spending
more currency than they had gold and silver and the people began to lose
confidence in these bits of "paper" and started a rush out of currency and
into real money gold and silver. Then the truth becomes clear that there are
far more of these paper ounces of silver than real ounces. The paper currency
goes to its true value of nothing and real gold and silver become very very
highly valued.
John Law was a great example of confusing people about the difference
between currency and money. This is an important example of society
replacing its money with an ever increasing currency supply that I wish all
crypto currency enthusiasts would look at is the story of John Law. Laws life
is a true roller coaster ride of epic proportions.
From the son of a Scottish goldsmith and banker, John Law was a bright boy
with high mathematical aptitude. He grew up to be quite a gambler and
ladies man.and lost most of his family fortune in the course of his escapades.
At one point he got into a fight over a woman and his opponent challenged
him to a duel. He cheated and shot his opponent dead, was arrested tried and sentenced to
be hung. Being the knave that he was, Law escaped from prison and now on
the run he bribed and deceived his way South and fled to France.
Meanwhile Louis XIV was running France deeply into debt due to the war
mongering and his lavish lifestyle even more than Law had been living. Law
himself living as a fugitive in Paris became known in the criminal underworld
and a gambling buddy with Duke d'Olans, and it was about this time that Law
had high ambitions and wrote a paper letter to Lois XIV promising a solution
to his mounting debts that were expanding exponentially. In the letter he
suggested an economic solution promoting the benefits of paper currency
and confusing the people about the differences between currency and money
and try getting people to think that currency is just as good and worth the
same as money.
When Louis XIV died his successor, Louis XV was only eleven years old. The
Duke d'Oleans who was Laws buddy was placed as regent (temporary king),
and to his horror he found out that France was so deep in debt that taxes
didn't even cover the interest payments on Frances debt. What happens next
in this situation as this same cycle repeats through history? Law sensed
opportunity he showed up at the royal court with two more suggestions for
his friend and for France. Blaming the problems France faced on insufficient
currency supply and expanding the virtues of paper currency over gold and
silver being used as the medium of exchange.
On May 15th 1716 John Law was given a bank out of thin air and the right to
issue paper currency also out of thin air with the governments backing (fiat)
and once again the monetary cycle repeated here in modern times in Europe
they went from money over to currency just as has always happened in the
monetary cycle, they thought they could get away with it.
To start with as always happens in the monetary cycle the slightly increased
currency supply brought a new vitality to the economy. Law was hailed as a
hero and a financial genius creating all this wealth out of thin air. Really? As a
reward the Duke d'Orleans granted Law the rights to all trade from Frances
Louisiana territory in America, stretching from Canada to the mouth of the
Mississippi river. At the time it was believed that Louisiana was rich in gold and silver and John
Laws new Mississippi mining company, with exclusive rights to trade from this
territory, became the richest company in France. Law wasted no time
capitulating on the public's confidence in his companies prospects and issued
200,000 company shares. Shortly after that the share price exploded
measured in the rapidly expanding currency supply. Rising by more than 30
times in a matter of months which was soaking up the rapidly expanding
currency supply as fast as the printing presses could print new currency and
issue it.
Just imagine in a few short years Law went from a fugitive on the run for his
life, a gambling addict and penniless murderer to one of the richest most
powerful men in the world at this time.
Again Law was rewarded. This time the Duke bestowed upon him and his
companions a monopoly on the sale of tobacco, the sole right to refine and
coin silver and gold and he made Laws bank the Banque Royal. Law was now
at the helm of Frances central bank. And since everything seemed to be
going so well and the apparent prosperity the expanding currency supply
brought about in this part of the monetary cycle, the Duke asked John Law to
speed up the rate he printed and issued the currency. France was flourishing
as long as confidence held in this rapidly expanding currency supply. Law
telling the Duke that there is no such thing as too much of a good thing
increased the expansion of the currency supply just as the world is doing in
the 21st century its exactly the same monetary cycle repeating. The
government spent foolishly and recklessly while John Law was pacified with
gifts honors and titles.
Yes things were going quite well. So well in fact that the Duke thought that if
this much currency supply expansion brought so much prosperity then twice
as much would be even better. Just a couple of years earlier the government
couldn't even pay the interest on its debt, and now, not only had it paid off its
debts in full but it could also spend as much currency as it wanted all it had
to do was print it.
As a reward for Law's service to France the Duke passed an edict granting the
Mississippi company the exclusive right to trade in the East Indies, China and
the South Seas. Upon hearing the news, Law decided to issue 50,000 new
shares of the Mississippi Company. When he made the new stock offer, more
than 300,000 applications were made for the new shares. Among them were
Dukes, Marquises, Counts, and Duchesses, all wanting to get their shares.
Law's solution to the problem was to issue 300,000 shares instead of the
proposed 50,000 he was originally planning. A 500% increase in the supply of
total number of shares. A good example why you should avoid investing in
shares and stick to real assets that are unlikely to be confiscated again. And At the time it was believed that Louisiana was rich in gold and silver and John
Laws new Mississippi mining company, with exclusive rights to trade from this
territory, became the richest company in France. Law wasted no time
capitulating on the public's confidence in his companies prospects and issued
200,000 company shares. Shortly after that the share price exploded
measured in the rapidly expanding currency supply. Rising by more than 30
times in a matter of months which was soaking up the rapidly expanding
currency supply as fast as the printing presses could print new currency and
issue it.
Just imagine in a few short years Law went from a fugitive on the run for his
life, a gambling addict and penniless murderer to one of the richest most
powerful men in the world at this time.
Again Law was rewarded. This time the Duke bestowed upon him and his
companions a monopoly on the sale of tobacco, the sole right to refine and
coin silver and gold and he made Laws bank the Banque Royal. Law was now
at the helm of Frances central bank. And since everything seemed to be
going so well and the apparent prosperity the expanding currency supply
brought about in this part of the monetary cycle, the Duke asked John Law to
speed up the rate he printed and issued the currency. France was flourishing
as long as confidence held in this rapidly expanding currency supply. Law
telling the Duke that there is no such thing as too much of a good thing
increased the expansion of the currency supply just as the world is doing in
the 21st century its exactly the same monetary cycle repeating. The
government spent foolishly and recklessly while John Law was pacified with
gifts honors and titles.
Yes things were going quite well. So well in fact that the Duke thought that if
this much currency supply expansion brought so much prosperity then twice
as much would be even better. Just a couple of years earlier the government
couldn't even pay the interest on its debt, and now, not only had it paid off its
debts in full but it could also spend as much currency as it wanted all it had
to do was print it.
As a reward for Law's service to France the Duke passed an edict granting the
Mississippi company the exclusive right to trade in the East Indies, China and
the South Seas. Upon hearing the news, Law decided to issue 50,000 new
shares of the Mississippi Company. When he made the new stock offer, more
than 300,000 applications were made for the new shares. Among them were
Dukes, Marquises, Counts, and Duchesses, all wanting to get their shares.
Law's solution to the problem was to issue 300,000 shares instead of the
proposed 50,000 he was originally planning. A 500% increase in the supply of
total number of shares. A good example why you should avoid investing in
shares and stick to real assets that are unlikely to be confiscated again. And silver would never be as much a target of potential confiscation attempts.
Gold has been confiscated many times through history including John Laws
times and as recent time as my grandparents times in America.
Meanwhile Paris was now booming due to the false boom as I call it part of
the monetary cycle and due to the rampant stock speculation and the
increasing currency supply. All the shops were full, there was an abundance of
new luxury goods and services and the streets were bustling. As Charles
Mackay puts it in his seminal book 'Extraordinary popular delusions and the
madness of crowds' "new houses were built in every direction and an illusory
prosperity shone over the land, and so dazzled the eyes of the nations
involved. (much of the developed world at this time and today in the same
situation the entire world) that none could see the dark cloud on the horizon
announcing the storm that was too rapidly approaching." I think this quote is
so powerful looking at the world in the 21st century. The same cycle is
repeating the currency supplies are expanding at an exponential rate both
fiat and crypto and no one can see the dark clouds on the horizon that are
announcing the perfect economic storm approaching on the entire Earth this
time around.
Soon however as the currency supply expanded exponentially problems
started to crop up as the cycle repeats. Due to the rate of expansion of the
currency supply prices of everything started to skyrocket. Real estate values
and rents for instance increased 20 fold. Just as is happening in the 21st
century due to expanding the currency supplies also.
Law also began to feel the effects of rampant inflation he had created. With
the next stock issue of the Mississippi company Law offended a Prince de
Conti when he refused to issue him shares at a price the royal wanted.
Furious the prince sent three wagons to the bank to cash in on all his paper
currency and Mississippi stock. He was paid in three wagons full of gold and
silver coin. The Duke d'Orleans however was incensed and demanded the
prince return the coin to the bank. Fearing that he would never be able to set
foot in Paris again, the prince returned two of the three wagon loads of gold
and silver.
This was a wakeup call to the public. The 'smart money' began to exit fast.
People started converting their notes to coin. And bought anything of
transportable value. Jewelry, silverware, gemstones and gold and silver coins
were bought and sent abroad or hoarded.
In order to stop the bleeding in Feb 1720 the banks discontinued note
redemption for gold and silver (exactly the same thing happened in 1971) but
this time in 1720 it was declared illegal to use gold and silver coin in
payment. I can see this happening again in our day in the near future. Buying jewelry, silverware, precious stones and the like was also outlawed. Rewards
were offered of 50% of any gold or silver confiscated by those found in
possession of such goods (payable in currency notes of course). Roadblocks
were set up and carriages were searched. The prisons filled the heads rolled
literally.
As always happens in this cycle faith is lost in currency no matter how hard
the governments make it illegal to use gold and silver or try price controls to
stop run away inflation and insist nothing other than fiat currency is used, the
free market always wins in the end.
Finally the financial crisis came to a head in May 27, the banks were closed
and Law was dismissed from the ministry. Banknotes were devalued by 50%
wiping out the zero's printed on the large denominated notes. It did not do
any good. Any poor people who had their life savings in paper lost nearly all
of it as faith was lost no one wanted it for exchange even though the
governments had made it the law to accept it. A little later the black or free
market overwhelmed the manipulated controlled one no matter how hard the
governments tried.
On June 10th Banks reopened and resumed redemption of gold and silver for
the currency. Of course there was a rush to redeem money for the currency
but the amount of currency out there was far too much. When the gold and
silver ran out the people were paid in the next monetary metal copper,
although its not a monetary precious metal. As you can imagine the frenzy to
convert currency into money was so intense that near riot conditions ensued.
Gold and silver (money) had delivered a knock out blow to currency.
By then John Law was then the most reviled man in all of France. In his single
life time the monetary cycle had repeated. He went from being one of the
most wealthy powerful men in the world to the nobody he was before. Law
fled to Venice where he resumed his life as a gambler and womaniser
lamenting " Last year I was the richest individual who ever lived, today I have
nothing not even enough to keep alive" he died broke in Venice in 1729.
This collapse of the Mississippi company and one of the first fiat currency
systems in modern monetary history plunged France and most of the world
into a horrible depression, which lasted for decades. But what astounds me is
that the same cycle is repeating in our day since 1971 people have yet again
been deceived as to what is money and currency and the exact same tricks
John Law employed were the exact same tricks of ancient time deceiving
people with currency in place of money. It always end the same way and the
cycle repeats.
There was a very interesting quote by John Law that is often quoted by
BitCoin and crypto currency enthusiasts today. John Law said "Money is not the value for which goods are exchanged but the value by which they are
exchanged" He next said "the use of money is to buy goods. Silver, while
money is of no other use."
I would disagree with those who agree with John Law, I would say money has
to have value in and of itself anything else is just currency. I may have agreed
with Law in his time in the 1720's that silver has no other use but today silver
has arguably far more value than the tenth of an ounce (3grams) being
valued at a 12hr days wage. While it may have been true in his day, it is
certainly not true today to say Silver has no other use, as I go into later in this
book.
History has repeated over and over throughout the millenniums. Frequently
over the last few thousand years in different places around the world there
has been this rush out of currency and into money. Then the cycle repeats
and the next generations forget and are fooled into thinking currency is worth
something more than it is.
I believe we are on the verge of this rush out of currency and into money
happening again now but not just in a few places around the world but for the
first time ever the entire world all at the same time.
Fast forward to modern times. For thousands of years now since the first ever
bankers we just talked about, the same cycle has repeated. Bankers try to
confuse people between what is currency and real money. They get the
masses to believe that currency is just as good as real money so they can
create as much currency out of thin air as possible and spend it on what they
like. At some point there is so much currency about that people lose
confidence in it and rush back to gold and silver real money. Then over the
next several generation's this is forgotten and the cycle repeats.
One method that started in ancient Greece (which could be why the Bible
depicts Greece as copper) involved debasing the currency, the old fashioned
way. Henry VIII earned his nickname "Old Copper nose" because he added so
much copper to what were supposed to be silver coins that eventually it
would show through on the nose of his portrait. As the coins were being used
the nose was the first to wear away. Nowadays they debase the currency not
by mixing copper into the silver but by typing zero's onto their bank account
balances.
Another famous example is the siege of Valletta by the Turks in 1565. As the
Ottoman embargo dragged on, the supply of gold and silver began to run
short. The cycle repeats as always in much the same way. When governments
run out of money the cycle repeats and they either go over to currency or
debase the money somehow. The Knights of Malta decided to mint coins
using increasing amounts of copper. The motto that they stamped on each coin as they became less monetary precious metal and more monetary base
metals was to try to keep peoples faith in these coins: Non Aes, sed Fides -
'Not the metal but the trust'. Just think about that for a moment. Before 1971
currency notes said on them something to the effect of "I promise to pay the
bearer on demand the monetary precious metal backing this paper" now in
the UK the £20 note says "I promise to pay the bearer on demand £20". But
what is that £20 backed by since 1971? Before 1971 all fiat currencies were
backed by gold through the USD, after 1971 they are all backed by nothing.
Its just like debasing the coins but trying to say its not monetary precious
metal anymore because we have run out of money, but please can you just
view this currency as just as valuable as money so we can have unfair
wealth transferred to us without having to work for it.
This is what it all comes down to in the end, in a nutshell. In the sound money
part of the cycle when money is being used gold and silver, it is fair for
everyone. When the cycle repeats and currency is brought in usually as a
representation of the money, if equal amounts are being used as money
backing them then it is still fair, but when more currency is added to the
supply than money backing the units, then it becomes unfair and an unsound
monetary system. It is a wealth transfer to those expanding the currency
supply. If shells were being used as currency, then anyone able to gather
those shells themselves and spend them is having wealth transferred to
them. The official issuer of the shells to begin with may call this
counterfeiting, but it is only the same as they would be doing. In the end faith
and confidence is lost in the currency and there is a rush to turn currency
back into money as the cycle repeats. Then the next generations forget and
as governments overspend and run out of money they once again repeat the
monetary cycle and try to issue some form of currency. Often by debasing the
money gold and silver, or issuing some currency supposed to be backed by
money gold and silver but then expand the supply. It is happening exactly the
same today in the 21st century. The world was supposed to be using currency
backed by the monetary precious metals after WW2, but the supplies were
expanded of the currency far more than the money backing them. In 1971
people were so used to using the representations of the money, that they did
not notice the cycle repeating now the world is in the currency part of the
same cycle. The supplies are expanding and wealth is being transferred to
those with the power to expand the currency supplies. Next will come
confidence will be shaky in the unbacked currencies and there will be a rush
to turn currency into money as the debasement intensifies.
These bouts of debasement always 100% of the time end in disaster, as faith
is lost in the currency, inflation shoots through the roof and the economy
collapses, after which politicians introduce a new, more credible system
based on monetary PM's, and the cycle repeats. There are little differences every time it repeats but its the same cycle.
In 1873, the fourth Coinage Act demonetised silver and put America on the
Gold Standard. This had a devastating effect on the majority of Americans.
The money they used on a daily basis, silver, was no longer allowed to be
used to pay off debts and taxes. This, in turn, made the gold necessary to pay
for these debts and taxes worth much more. So the effect of the ‘Crime of
1873’ is that it crippled the economy and sent U.S. into the worst economic
period in the history of the United States. Who benefited from this? The
bankers — it made their gold and loans worth much more. They eventually
foreclosed on thousands of homes and millions of acres of lands.
In the late 1800's China had saved a lot of money in silver, then the West
attacked silver because they did not have any left and China had more than
they had. They changed the rules with the crime of 1873.
Fast forward to the 21st century, these last few years China has been saving
a lot in gold and silver once again, well there isn't that much silver to buy, but
there is lots of gold so they have been buying what they can mostly gold.
Bloomberg Television’s “On The Move Asia” had a fascinating interview with a
Mr Cheng, the World Gold Council’s Managing Director, Far East. He discussed
China’s gold and silver market and what’s driving the country’s demand with
Rishaad Salamat.
"I think that the key of this is investment demand six years ago, you didn't
see any investment demand in China. China opened up the investment
market through banks and now literally any Chinese person can walk into a
bank and buy gold and silver products. And you look at the number of outlets
since 2008 where people can buy investment gold, silver bars, gold and silver
coins - there are a hundred thousand of them in China in just 6 years. If I make a comparison with America -- Starbucks, McDonald's and Subway
together have only fifty thousand outlets. In China there are now more than a
hundred thousand outlets where you can buy gold. So, the availability of gold
and silver in China, in every city, in just 6 years is growing at an alarming
rate."
More than once the Western powers have used silver to bankrupt China. More
than once China has accumulated a lot of money and the Anglo-American
world power convinced the world that silver was not worth as much as it has
been through history, thus devaluing or another way to put it robbing wealth
out of money and into their currency. Could the West try and change the rules
again similar to the crime of 1873? They could try but this time China could
win. Silver is already as low as it can ever get.
Anglo-America
So we are almost up to the twentieth century in this brief study of monetary
history. I am writing this updated book exactly 100years after the start of the
federal reserve. It was brought about in 1913 but became firmly established
in 1914 which everyone agrees was the year the world changed as never
before. This was the start of the Lords day the Bible prophesied thousands of
years ago in the prophecy from Daniel.
This 2,500-year-old prophecy recorded by Daniel pointed towards the year

1. Some Bible Students spent decades before the start of the 20th
   century pointing out that the year 1914 would be significant. Many people at
   that time were optimistic. As one writer states: “The world of 1914 was full of
   hope and promise.” With the outbreak of World War I later that year,
   however, Bible prophecy came true. The subsequent famines, earthquakes,
   and pestilences as well as the fulfillment of other Bible prophecies proved
   conclusively that the prophecies pointing to 1914 came true.
   Author G. Edward Griffin wrote a must read book that ranged across 2,000
   years of monetary and banking from Diocletian to the Rothschilds to Alan
   Greenspan, called The Creature From Jekyll Island. He agrees that the world changed significantly in the year 1914 and most
   people only think of the great war, overlooking the importance of the
   monetary cycle repeating and the significance of the start of the federal
   reserve in that year. This is what his book is all about.
   Griffin cuts through the obscurities about the Fed that are intentionally meant
   to mystify and disarm its victims (all of us around the world). Convinced that
   the subject of money and banking is too arcane and complicated to
   understand, we victims are trapped in a world view that utterly fails to jibe
   with reality. The money manipulators, says Griffin, are exploiting our
   ignorance for the advancement of their own appalling plans; the urgency of
   awakening us to our danger has driven Griffin to write this extraordinary
   book.
   I say it is not too complicated to understand in fact it is very simple, another
   way to say what Griffin says is how I put it - trying to confuse people about
   the difference between money and currency. This monetary cycle has
   repeated through history and will continue to repeat. Going from money (gold
   and silver) over to currency (anything other than gold and silver used as a
   medium of exchange) and back again, then repeating. You have to hand it to
   the banksters they have confused people and now most people view currency
   as money. But this always happens in the false boom part of the monetary
   cycle. Next come currency expansion which is what the world is now
   experiencing at an exponential rate. Its easy to see the next part of the
   monetary cycle coming soon as the worlds currency supply is expanded
   exponentially and ending badly then the cycle repeats and gold and silver
   revalue as they do an accounting for all the currency since the last
   revaluation.
   So in 1914 the world changed as the monetary cycle repeats always ends badly and the 20th century was no exception. WW1 was the
   bloodiest war the world had ever seen.
   In 1933, Franklin Delano Roosevelt (FDR) declared that Americans could no
   longer own physical gold. U.S. citizens were ordered to bring their gold to the
   local Federal Reserve branch to receive paper certificates in return. Soon
   after the confiscation, FDR devalued the Dollar relative to gold, giving those
   private bankers — who now owned a lot of gold — an overnight 69% profit.
   For the next 42 years, it was illegal for the average American to own gold.
   We are now upto the 1940's. Then after WW2 the first Bretton Woods system
   was introduced which meant that the US dollar was fully backed by real
   monetary precious metal and all other currencies would be backed by money
   as well through the US dollar. So at the Bretton Woods meeting, the world
   agreed that all currencies would be backed by monetary precious metal
   through the US dollar meaning that the world was not using currency but real
   honest money again, or at least representations of it. This is the cycle
   repeating as normal. How long could it last this time?
   Since the 1948 Bretton Woods conference every currency in the world was
   backed by monetary precious metal - tied to the US dollar, which was tied to
   gold. Then since 1971 the US dollar cut the cord to gold. Overnight, every
   currency in the world went from metal standard to completely unbacked
   currency, for the first time ever it is global as the same cycle repeats. On Aug
   16th 1971 the day after the Nixon shock any countries who wanted to cash in
   their paper currency receipts for money they were supposed to be backed by,
   would from now on be settled in only more unbacked paper currency. How
   could the world let this happen? Most people had got so used to using these
   paper receipts for the money in storage, they did not notice these paper
   reciepts for the money were not backed by anything anymore. Several years
   before 1971 silver was slowly unobtrusively replaced with a worthless alloy
   mostly iron/steel. Most people did not notice as happens every single time
   this cycle repeats.
   In 1964, with the assassination of John F. Kennedy and the repeal of his
   Executive Order 11110, the bankers and politicians demonetised silver out of
   the USA coins, replacing it with a worthless alloy mostly iron/steel that now
   acts as the symbol of the currency. Which could be why the Bible depicts the Anglo-American world power as the
   lower part of the iron legs. The cycle repeated and they replaced the silver
   money with iron currency.
   Sometime after the Bretton Woods agreement in 1948 where every currency
   was promised to be backed by monetary PM's some countries suspected the
   Americans of playing the exact same trick as the very first ever bankers we
   talked about. The Americans were painting on extra bits of animal skin this is
   worth 1 ounce of silver or gold. Far more receipts for money than they held in
   their vaults. Only now it was not animal skin it was billions of little green bits
   of paper called US Dollars.
   No worries under the Bretton Woods agreement each dollar was backed by
   real gold and every currency was backed by the dollar. So some countries
   asked to be paid in real money instead of these funny green bits of paper.
   The Americans did not like it.
   Just like when you take your shirt to the cleaners, they give you a receipt for
   it. It is a claim on the actual thing. Or when you drive to a valet parking and
   the parking attendant gives you a receipt for your car. Imagine you are
   playing poker like James Bond in Casino Royale. You put your valet ticket in
   the pot. Someone else puts their valet ticket for their Aston Martin. What if
   someone had the ticket book the valet attendants use to issue unlimited
   tickets for cars that did not exist? And what if all the people playing poker
   believed these were as good as the cars they were supposed to be backed
   by? Everything would be fine as long as nobody checked to see if there really
   were cars there as the receipts claim. But the moment confidence is shaky
   and more people go to claim their cars than cars exit then the faith is lost in
   the paper receipts.
   The USA under Tricky Dicky President Nixon wanted everyone to just trust
   them that they would not print more paper than they held peoples gold and
   silver. But everyone suspected they were printing far more receipts than they
   had real monetary precious metal.
   Then France in the late 1960's said what's the difference the dollar is fully
   backed by gold isn't it? We would like the actual gold not the funny green bits
   of paper receipts that seem to be increasing in quantity very fast.
   Under the Bretton Woods agreement the US could not do anything about it.
   Vast amounts of gold and silver were drawn out of America. This draining
   continued until August 15th 1971.
   This was the year that many suspect the USA to have almost run out of gold
   and silver. It is now confirmed they have now run out of ALL silver stockpiles,
   gold is very plentiful but still they will not let anyone check but they now admit all the silver is gone from the once full
   silver vaults.
   So Nixon came on TV on August 15th 1971 and announced to the world that
   the US dollar would "temporarily" no longer be backed by real gold!!!!!! He
   ended the Bretton Woods international monetary system, that the world
   agreed on after WW2 without any other countries having a say. (I am writing
   this book over 40 years after and they are still "temporarily" using fiat
   currency. For the price of gold and silver to catch up with all those units of
   dollars they created out of thin air, is a moving target. Because they are still
   expanding the currency supply.) It's well worth watching this Nixon speech
   search youtube Nixon 1971 gold. He never really said how long this
   temporary new monetary system would last but, here well over 40 years later
   the world is still temporarily using this system.
   His exact words on Sunday August 15th 1971 were "temporarily" and
   "urgently needed new international monetary system" urgently needed
   because they were running out of gold and silver, and they wanted people to
   forget about gold and silver are money and believe their animal skins that
   were supposed to be backed by monetary precious metal (US Dollars) were
   worth something.
   The cycle repeated once again. And once again the next generations would
   be confused about what is real money and what is currency.
   The tell tail signs of a boiler room scam! Three British men were just
   sentenced to a total of 43 years in prison. Their crime? A classic boiler-room
   scam. Which they used to con British investors out of £80M units of currency.
   They spent their ill gotten gains on funding their lifestyle and having a good
   time- think boats, planes and endless cars. Eighty million sounds like a lot of
   units of currency, but the really horrible thing is they didn't find it that hard to
   get hold of.
   The boiler-room scam involves high pressure sales tactics and getting peoples confidence in low value or by the time they buy into worth a lot less shares
   and investments.
   You may think you would never fall for this kind of thing. But that is exactly
   what happened in 1971 and the entire world fell for it. If you have confidence
   in the unbacked currency you are using right now then you have fallen for it.
   So this new temporary international monetary system was started in 1971. It
   fits perfectly the very definition of a huge ponzi scheme. As the US dollar was
   no longer backed by gold and every currency in the world was backed by the
   US dollar, the entire world was now using currency (just the same as the first
   ever bankers making extra animal skins with 1oz bullion painted on them)
   and not real money, for the first time ever its now global.
   The central bankers all around the world could now add as many units of fiat
   (means by government decree, the government's say you have to use it)
   currency as they like. Just the same as the first ever banks becoming wealthy
   by painting on animal skins and people believing they are worth something,
   central banks print trillions of units of fiat currency, and people foolishly
   believe they are worth something when the truth is they are worthless, it's
   only the foolish belief that they are worth something that gives them worth.
   What is even more absurd is now they don't even need to print it they can
   just type it into their bank account and spend it however they want. Its digital
   units of currency not worth the paper they are not printed on. Expanding the
   currency supply of the planet and we work for it like slaves.
   The first ever bankers had to get bits of animal skin to create currency, but
   today bankers really can create currency out of thin air by typing it into their
   bank accounts and making fancy names up for it like QE, or stimulus.
   As long as an alcoholic can still manage to buy more booze, every thing's
   rosy. Doesn't matter that his marriage is tanking, his job's shaky, his friends
   have dropped him, his health is going down, as long as the booze flows, he's
   okay.
   No matter how much drugs (credit) will be added (growth) to a junkie’s habit,
   which make him feel better for a little while, his problems will get worse and
   his health will deteriorate from more drugs. The only way to get his life on
   track is to stop using drugs, take the pain, and truly recover.
   We actually work hard for these temporary units of fiat currency and the
   banks are laughing as they churn out billions and trillions more units and
   spend them all over the world. They know its temporary, but as long as the
   booze flows they are okay. The booze has been flowing for decades since Aug
   15th 1971.
   We are now right up to the very start of the 21st century in this
   brief look at monetary history. Gordon Brown’s announcement of
   gold “sales” by the Bank of England, intended to drive prices
   still lower, this was one such attack in a very long series of
   attacks on precious metals prices by the paper money
   mob.---“Trading was on a very heavy scale throughout the day,
   the weakness in prices marking the climax of more than a
   fortnight’s selling by the Chinese operators, who were getting out
   of a long position which had its origin earlier in the year.
   Recommendations of the Currency Commission, which has been
   in session during most of this year, PROVIDES THAT PAPER
   MONEY IN INDIA SHALL CEASE TO BE CONVERTIBLE INTO
   SILVER just as soon as confidence in paper money issued
   against a gold reserve shall be established.” (All steps taken
   against silver money eventually lead to the same actions against
   gold!)
   “One essential purpose of the proposed Reserve Bank of India,
   to the plan for which the weakness in silver has been partly
   ascribed, is discussed in its monthly bulletin by the Midland
   Bank of London. It is “TO ENCOURAGE THE USE OF PAPER CURRENCY IN PLACE OF RUPEES AND TO PROMOTE THE
   DEVELOPMENT OF SOUND HABITS OF SAVING AND
   INVESTMENT. ON THE FIRST POINT THE COMMISSION
   RECOMMENDED THE ABOLITION OF THE LEGAL RIGHT OF
   CONVERSION OF NOTES INTO SILVER RUPEES AND THE
   CESSATION OF COINAGE OF NEW RUPEES FOR A LONG
   TIME TO COME.”
   This is the same cycle that has repeated in various parts of the world
   throughout the millenniums. But this time for the first time ever its the entire
   world involved, the population of the planet is now well over 7 Billion and the
   amount of gold and especially silver is getting very scarce in relation to world
   population.
   Every single time this has happened the masses wake up to the fact that
   units of currency are becoming worth less and less as the currency supply
   expands. When confidence is lost in currency what happens? The same thing
   that has always happened for thousands of years, that's what. There is a
   mass exodus from currency and into real money gold and silver.
   Most recent currency crisis happened in Zimbabwe where you had hundred
   trillion dollar notes not worth toilet paper.