Gold and Silver

This book tries to convince its readers that precious metals such as gold and silver are true money, whereas all the "money" that we to call today, be it dollar, pound, yen or whatever, which are printed and backed by governments are actually currencies. Money and currency are very similar in that both are portable, durable, divisible and fungible (interchangeable), but money is different from currency for the reason that it's a store of value over a long period of time, but currency isn't.

Why does currency always lose its value over a long period of time? It's because, as history shows invariably, the creator of the currency always ended up printing unlimited amount of the currency (yes, they have no discipline when given such power), causing hyper-inflation and subsequently triggering a loss of faith in the currency. As people move out of the currency into precious metals by realizing the currency that they are holding can be printed by the authority non-stop which in effect devalues their currency but gold and silver can't be printed, we could see a massive wealth transfer from those who didn't own precious metals to those who had enough foresight to accumulate gold and silver early on. People will rush to buy gold and silver and bid up the price.

The book also criticizes the monetary system that we are forced to live in. In this flawed system, every dollar is borrowed by the government from the Fed into existence. To pay back the principal plus interest, the government has no choice but to borrow even more from the Fed, forming this vicious cycle. This is one reason we see that national debt keeps increasing because it's mathematically impossible to pay off all debt!

But... who owns the Federal Reserve? It's surprising that the Fed is actually not a government agency, but a privately owned bank that has stockholders to whom it pays six percent annual dividends! As claimed by Mike in his educational video (The Biggest Scam In The History Of Mankind - Hidden Secrets of Money 4 https://www.youtube.com/watch?v=iFDe5...), the stockholders of the Fed couldn't be traced now due to mergers and acquisition through the years. But at the very least we know that this is not only a flawed system but a selfish and immoral one, or to use Mike's own words, Our entire monetary system is nothing but a form of legalized theft.

In the Fed’s own words, published in a 1977 paper called Putting It Simply, “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”


Lastly, I want to thank Mike for this amazing book and his efforts in creating all the educational videos on Youtube (especially the "Hidden Secrets of Money" series)!