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#260 - Mike Maloney - Hidden Secrets of Money Part 1 - Money vs Currency

Mike Maloney – Hidden Secrets of Money (Paraphrased Notes)

Part 1 – Money vs Currency

· The best investment you can make is in your OWN EDUCATION

· We are currently experiencing the greatest wealth transfer in History

· The Greatest crisis in the history of mankind can become YOUR opportunity

· “Hidden in Plain Sight” – we can’t imagine we are living in a hoax

· Federal Reserve is a private entity – NOT part of the US Government

Currency vs Money

Medium of exchange / Medium of exchange

A Unit of account / A Unit of account

Portable / Portable

Durable / Durable

Divisible / Divisible

Fungible (each unit is the same) / Fungible (each unit is the same)

(1$ in my pocket is the same as 1$ in yours) /

(1$ in my pocket is the same as 1$ in yours)+ a store of value over a long period of time

· Gold and Silver are optimum money because:

1. Limited in quantity

2. Can’t be printed

3. Can’t be increased

4. 2,600 year history of its store of value (unit of account & fungible)

5. Gold forms when a star explodes (supernova) and stays forever, which is what makes it the ultimate money

· Gold keeps governments under control

Fiat Currency has a 100% Failure rate

· Before WW1, $20 gold coin = note = Claim check

· Since 1971, National Currency has been leaching away purchasing power notstoring value

· Gold has outperformed Dow in each of the last 7 years, yet…

· Government discredits a gold – doesn’t consider it a legitimate asset class

· Why? FEAR that it will again be imposed on the system and will constrain its ability to spend beyond its means!

Inflation = an expansion of the currency supply

· Expand currency – prices go up…constrict the currency supply – prices go down

· Value of what we buy doesn’t change - Value of what the currency buys goes down

Quantitative Easing 2009 - QE1 & QE2 = Bank Bailouts & “Stimulus Programs” – Currency created out of thin air, and then give to Banks who give themselves record bonuses for crashing the World Economy – a Global Phenomenon = The Voodoo economics of currency expansion!

So, if it’s Global, why isn’t there more inflation?

· Much of our US Dollar inflation is exported – Good, until debts are called in

· Underclass effected disproportionally as 40% increase in food = Political unrest

· People who are producers and save in their national (fiat) currency, Lose faith

What are People Going to do? – Scary Yes, but we can only play the Hand We’re Dealt…

· As Government does this, people bid up the value of Gold & Silver…except this time, it’s the first time in History, that it’s happened ALL AT ONCE

· This is what makes it the Greatest Wealth Transfer in History…Also the Greatest OPPORTUNITY…it won’t happen again in our lifetime.

Again, true wealth is your TIME & FREEDOM &… Money(Gold)… is the trading tool that stores the economic energy that is your TIME and FREEDOM whereas Currency leaks it away.

Gold & Silver are the ultimate Money simply due to their properties.


Fiat Currencies are based solely on confidence and always return to their intrinsic value – zero.

· Governments don’t like GOLD because it imposes Restraint.

· Rising prices are a symptom of an expanding currency supply

· Gold and Silver always account for an expanding currency supply

Next Time - The Monetary history of money always repeats itself… and Gold & Silver ALWAYS win the battle between Currency and Money. Until then, the challenge is to “Stop Referring to Currency as Money”. It’s the first crucial step in stopping the Voodoo Economics and changing your mind set.

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