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There we are. And then Julie will edit that so that we can share that link with everybody.
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All right, well let's get this show on the road. It's 7.32. Hi everybody, I'm Charles Corvus,
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0:00:13 --> 0:00:[privacy contact redaction]ralasian passion provocateur. For those of you who might not know me, I'm wearing my
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red jacket for passion. Tonight's a special foam meeting, FOAM, standing for fighters opposing
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autocratic maniacs. We are Warriors for Freedom, generally on this group, but there's a special
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occasion that we're recording because we have Jerry Brady, formerly Dr. Jerry Brady, although
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he's still a doctor, who came from many years back and he's going to tell us about that. And now,
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somewhat of an expert in the areas of money and finance, and he publishes a newsletter that he's
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going to tell us about. And one of the benefits of this whole scamdemic, known as COVID, is that I
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0:00:59 --> 0:01:[privacy contact redaction]e, including a number of people on this call, including Jerry Brady,
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0:01:05 --> 0:01:[privacy contact redaction] the COVID scam. And I say to all of you, look at all the wonderful
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0:01:11 --> 0:01:[privacy contact redaction]e you've met. And at the party that we referred to earlier that Julie and I were at
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0:01:17 --> 0:01:[privacy contact redaction] recently, we were having the conversation that the people who are on our side,
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we seem to be creating deeper relationships with people who are driven by principle rather than by
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comfort. So I think it's worth observing which friends you've lost, but which friends you have
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gained and the depth of that friendship. So welcome to this presentation, those who are live and those
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0:01:42 --> 0:01:[privacy contact redaction]ing. Jerry, a number of people have asked us a question, that's why we put
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this on and thank you for doing this. They say, should I sell my $2 million house? And if I do,
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and I say, then what are you going to do with $2 million cash or $2 million in money? And Jerry's
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educating us on the difference between cash and money. And it's a great question. And so Jerry has
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agreed to come along. So Jerry, tell us about you and your journey. And let's talk about,
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let's talk about money and what to do in this strange world we live in.
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Well, thanks for that, Charles. I hope you can hear me nice and clear. I'd like to share the
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screen. So can you allow me to do that? Yes, I can do that now. Okay. Well, I'll just do that.
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And I'll just put this to a slideshow. Let me see. There we go. You should be seeing a slideshow,
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0:02:38 --> 0:02:[privacy contact redaction]? You seen that on your screen? Okay. Yep. Money, money supply and wealth
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is the title of the talk tonight. So we've got a lot of ground to cover. I'd suggest you get a
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pencil and paper and take some notes as we go. I'm going to move through a lot of information
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fairly quickly in the next 30 to 35 minutes. So I'm Dr. Jerry Brady, I'm a GP, or was a GP,
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I had 30 years of clinical experience in the frontline of medicine, mainly in adult medicine.
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I got bored with it and did a lot of other things. I started a biotechnology company in 1990,
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which specialised in genetic engineering and the large scale fermentation of genetically engineered
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0:03:26 --> 0:03:[privacy contact redaction]eria. So I was at the very forefront of the world of genetic engineering and biotechnology at
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the time, that company became quite a large company. And then I started another company,
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which was a company dedicated to mapping the internet. And we became the first company to
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map the internet successfully. We beat everybody, including IBM, Microsoft, you name it. And then
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I was able to retire from medicine in 2007. I was aged 53 because my company was, my biotech
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0:04:00 --> 0:04:[privacy contact redaction] shareholder. And then I went to live in Europe. And then
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0:04:05 --> 0:04:[privacy contact redaction]arted a finance and economics newspaper called Boom Finance and Economics.
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And that newspaper is aimed at and read by the chief central bankers of the world, the deputy
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governor, the deputy governors, the chief advisors, the chief economic advisors, the deputy advisors,
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and professors of economics, professors of finance, fund managers, very famous, some of
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0:04:32 --> 0:04:[privacy contact redaction] an amazing readers list. If you looked at the list,
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it's quite stunning even to me. I write an editorial every week based on the week's events.
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It's an ongoing letter to my readers. It comes out every Sunday morning. It's my basic, my sermon to
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them. And I'm trying to steer the world of finance to a realization of what the problem is that we've
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got and how to fix it. I'm also the founder of the COVID Daily newspaper you'll see on the screen
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there, where I have a team of people sending me articles all over the world. And I publish those
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articles every day on a daily basis. So that's I recommend you all go to that link every day.
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So next slide. This is the disclaimer slide. This is all education. It's not investment advice.
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So I'm not giving any investment advice. I don't do that for a living. I'm retired, fully retired.
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There's a disclaimer there. I won't read it all out. But it's basically a fairly broad disclaimer,
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disclosure, and a fair use notice. You can all get access to this slideshow later. So
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you can read all of this later. Basically, it's an education talk. So let's start with money.
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Money is a token. You can interview PhDs in economics, Nobel Prize winners in economics,
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and they'll have a very, very sketchy idea about what money is and what banking is.
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So it's a little specialized area all of its own. And it's not dealt with very well at all by the
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world of economics. You can go to a website produced by the Royal Reserve Bank of Australia.
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It's just called it all the what is money website is quite a good website and explains what money is
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0:06:28 --> 0:06:[privacy contact redaction] cut some words from that it says it's a reliable way to
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0:06:33 --> 0:06:[privacy contact redaction] to quote prices and as a way to store value over time. In other words,
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it's widely accepted means of payment, widely accepted means of payment. It can be a unit of
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count, and it can be a store of value. So these are the three attributes that make up a fairly
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well used around the world. But there's more to money than those three things. So what do we need
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money? Well, money has value because people trust that it has value and that it will continue to
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have value. It's all about trust. That's what money is all about. So therefore, it's all about
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0:07:13 --> 0:07:[privacy contact redaction]ual agreements between individuals and also between companies between
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individuals and companies and between governments and between individuals and corporations with
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government. So it's all about trust. It says there that history shows us this trust is sometimes
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0:07:32 --> 0:07:[privacy contact redaction]e keep on using it? Well, firstly, we talk about
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0:07:38 --> 0:07:[privacy contact redaction] being broken. And I'll give you an example of that Germany, for instance, which is a very
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powerful economy in Europe, has had six official currencies in the last 100 years. They've had a
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and create new currencies. And that's pretty normal. I don't think that's abnormal. But why
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0:08:00 --> 0:08:[privacy contact redaction]e keep using money? Well, the answer is that it's incredibly useful for facilitating trade,
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0:08:06 --> 0:08:[privacy contact redaction]andards. So what it actually generates is a thing called
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0:08:11 --> 0:08:[privacy contact redaction]exity. This is a really important thing to understand. The headline of change now
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0:08:18 --> 0:08:[privacy contact redaction] a token, it's a token of trust. Now we've got to talk about legal tender. What is
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legal tender? This is a very important term to understand. Legal tender is a form of payment
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0:08:31 --> 0:08:[privacy contact redaction]em, such that when it's offered or tendered in payment of a debt,
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the debt is legally discharged. The credit or the creditor cannot refuse a legal tender
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under the law. Okay, that's very important point. Bank notes are legal tender in Australia under
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0:08:50 --> 0:08:[privacy contact redaction] of 1959 and coins are legal tender under the Currency Act of 1965.
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0:08:56 --> 0:09:[privacy contact redaction]em of money with a currency of a country is not backed by a physical commodity,
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e.g. gold, but by a directive from a government that makes it legal is called a fiat system.
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0:09:07 --> 0:09:[privacy contact redaction] in all nations of the world now. And why is that? It's because it
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works well. We've tried just about everything else. So let's have another look at this term
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legal tender. We can look at a one dollar note. Of course, there is no one dollar note.
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0:09:25 --> 0:09:[privacy contact redaction] get this off the internet as an example note of an Australian dollar. You'll see this is an
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0:09:31 --> 0:09:[privacy contact redaction]ralian dollar mock-up because it says at the top, the Commonwealth of Australia.
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And down the bottom, you've got two signatures. You've got the signature of the governor of the
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0:09:41 --> 0:09:[privacy contact redaction]ralia and you've got the signature of the secretary to the treasury.
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So in our country, the money is being issued, the cash is being issued jointly by the treasury and
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by the central bank. That's not the case all over the world. There's different circumstances
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in different countries. If you read the thing below that, it says legal tender throughout the
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0:10:06 --> 0:10:[privacy contact redaction]ralia and the territories of the Commonwealth.
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Now, this is another more, a later version that I pulled off the net. And you'll see down the
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bottom, it says governor Reserve Bank of Australia again with Bernie Fraser's name. It says secretary
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to the treasury again. So it's a jointly issued note. And this time it says this Australian note
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0:10:28 --> 0:10:[privacy contact redaction]ralia and its territories. And you'll see at the top of the
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note, the word Australia, not Commonwealth anymore, becomes Australia. I've got a
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$20 note in front of me. Oh, I can't read it now. I'm going to go on to that. I can't read it
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anymore. But they've changed the words slightly again. Now it's only Australia. It doesn't
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include its territories. So they've dropped the word territories from the latest version.
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Okay, we all sort of know most of that. So most of us have heard those sort of things. So
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let's get on to the interesting part of what's the history of money.
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Well, money goes through a history, goes through a pretty clear series of changes.
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Initially, there's barter when there's no money. In barter, there's just an exchange of goods or
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0:11:22 --> 0:11:[privacy contact redaction]e, for instance, in a tribe or a village. And I always say this lasts for about
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one second or maybe two seconds doesn't last long, it might last a minute. Okay. So barter really
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doesn't last. And the reason is because credit arrives in a heartbeat. Why does credit arise so
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quickly? Well, it's easy to do. It's an exchange promises. This is a really critical thing to
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0:11:47 --> 0:11:[privacy contact redaction]and that credit money is an exchange promises. So the lawyers would recognize straight
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away, there's a contractual element there. And then tokens get invented to represent these promises.
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And tokens are really promissory notes. So they're just written or representative
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tokens that can represent the exchange of promises in the village or the tribe or whatever.
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It then evolves pretty quickly to tribal acceptance and law, where the tribal chiefs get together and
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say, well, we'll accept this token here, this bag of salt or this seashell or this silver coin
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or whatever. We'll pass, in effect, a resolution and accept this and make it legal. So in other
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0:12:44 --> 0:12:[privacy contact redaction]s, they render it legality. And then you get the most important element in money, you get general
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acceptance. So these concepts are really easy to understand and how they evolve. So general
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acceptance is the key element of money. And then on the screen, we've got along with
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fungibility. We finally got a difficult word to understand fungibility.
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0:13:07 --> 0:13:[privacy contact redaction]s have. And this refers to equality, it allows one thing
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to be exchanged, substituted or returned for another thing, but always under the assumption
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0:13:24 --> 0:13:[privacy contact redaction]s of money should be interchangeable with each other. So this is
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fungibility. It's very important. It's got to be portable and durable, recognizable, and generally
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0:13:36 --> 0:13:[privacy contact redaction]es that occur at a tribal level. The tribes can decide this.
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0:13:43 --> 0:13:[privacy contact redaction] seashells and the other tribe over the other side of the mountain
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0:13:47 --> 0:13:[privacy contact redaction] bags of salt. It's not until they trade with each other that then other arrangements have
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to be made. So these tribal agreements, initially they start between individuals, they have an
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exchange of promises. Those promises are usually contract limited in time. So the period of the
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0:14:07 --> 0:14:[privacy contact redaction] is pretty clear. Like one tribal person will say, you come and help me repair my roof
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this week. I'll come next week and help you reap your wheat crop. And that contract is agreed to
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and they've got a two week time frame. It could be much longer, but they've got a time frame. It's
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limited in time and they agree. And one person comes and helps with the roof and the other person
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goes and helps with the crop. And then the contract is completed and fulfilled.
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When you get to the tribal elder agreement, the chiefs, then you get the force of law and
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0:14:48 --> 0:14:[privacy contact redaction] So it's a slightly different contract then. It's a perpetual contract.
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Money usually has no real limit, but I'll clarify that more fairly soon in regard to the two
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different types of money. And then with this term currency comes along. So currency is used to settle
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0:15:09 --> 0:15:[privacy contact redaction]ions and it's the flow of money. Currency is the term used when money is flowing.
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Remember, the Latin for currency comes from something that's flowing like water flowing.
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0:15:26 --> 0:15:[privacy contact redaction]and is the money supply. Now, a lot of people don't understand
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that you've got to have a money supply in an economy. Money is really like water on a garden.
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0:15:39 --> 0:15:[privacy contact redaction]en. I explained this to people. If you don't put the water
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0:15:47 --> 0:15:[privacy contact redaction]en, the garden will die. And the money has limited quantity. It's like a dam or a tank.
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So you've got to be replenishing your money supply while you're spreading your water on your garden.
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0:16:03 --> 0:16:[privacy contact redaction]and. What is the money supply? Well, the money supply in the dam or
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in the tank is all the currency and other liquid instruments that's circulating in the economy on
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the date measured. And that roughly includes cash and deposits. Deposits must be easily accessed.
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So that's a simple example of money supply, cash and bank deposits. Now, cash is issued by
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governments, mostly, not by central banks, governments in most cases. And they also issue
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coins. But there can be a combination of central bank issuance and treasury issuance.
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The bank regulators can influence the supply of money, how much money goes from the tank to the
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economy. And that's very important. They usually do it by setting interest rates. But they also set
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0:17:01 --> 0:17:[privacy contact redaction]ruments. We won't get into the nitty gritty of how
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central banks operate tonight. So if you want to learn more about money supply, there's a link
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there I put in the presentation. And it just runs through the different types of money supply.
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And these are the terminologies that are often used. M1 plus MO is where you include currency
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notes, coins, bank reserves and demand deposits. M2 is M1 plus marketable securities and other
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0:17:37 --> 0:17:[privacy contact redaction]us money market funds. And M4 is M3 plus the least liquid
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assets. That's a rough definition of money supply. Different countries have different definitions,
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but it gives you some idea that you can actually look at the money supply in different ways.
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I can't see the top of my screen. I hope you can see it there. It says bank loans
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create fresh new money out of thin air. Yep, we can see it, Jerry. Good. Okay. Fresh new money
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out of thin air. Banks do this when they make a loan, but they can't do it by themselves.
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They've got to have a borrower. And this is really, really important concept to understand.
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0:18:24 --> 0:18:[privacy contact redaction], you'll see the red streaks on my slide presentation. I wasn't aware they were there when
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0:18:29 --> 0:18:[privacy contact redaction] excuse those red lines on the slideshow. But banks, and when I
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say banks, I mean commercial banks, or what we call retail banks. In other words, banks like
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your big, big four banks and all your smaller banks that people know about in Australia.
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They can create fresh new money out of thin air when they make a loan, but they've got to have
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0:18:51 --> 0:18:[privacy contact redaction] a borrower? Well, because they've got to create a contract.
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It's pretty obvious when you know what I've just told you, they've got to have a contract
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between the borrower and the bank. There's a few other interesting things about banks. There's no
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such thing really as a deposit. In law, a deposit really doesn't exist. It's a loan. You've loaned
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your money to the bank and the bank has been the other side of that loan contract. Now, this gets
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0:19:20 --> 0:19:[privacy contact redaction]icated here. Banks don't make loans. They purchase securities. This involves the law of
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0:19:28 --> 0:19:[privacy contact redaction] of the loaning is to loan for homes. So
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0:19:33 --> 0:19:[privacy contact redaction]ually create securities and then purchase them. We won't go into that tonight either. It's
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0:19:39 --> 0:19:[privacy contact redaction] sentence is very important. Bank money or credit money, money created as
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0:19:47 --> 0:19:[privacy contact redaction]royed when a loan is paid off. So it's dynamic. Money is dynamic. The money that
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0:19:56 --> 0:20:[privacy contact redaction]s. Really, it can be, there's a slight variation of that theme
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too. I'll mention later, but bank money generally is destroyed when a loan is paid off. So there's a
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need to continually create more credit money as bank loans as time passes.
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0:20:13 --> 0:20:[privacy contact redaction]ory of banking. So let's start looking at the history of banking because now we've gone
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through money. We've got to come to terms with banking. Why do we have to come to terms with
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banking? Well, the reason is this, and I'll refer to this again later. The reason is that
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in our current advanced economies of the world, not only do we have to come to terms with
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banking, but we have to come to terms with the history of banking. And that's why we have to
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come to terms with banking. In the advanced economies of the world, 98% of our money supply
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is credit money created in a bank loan. So you've got to start to understand the
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role of a bank in our economy and what happened in history in regard to banking.
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So we can go right back to Babylon, [privacy contact redaction] B.C. Hammurabi, the king of Babylon,
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had four laws surrounding money and credit. You can look up the name Hammurabi. There's a thing
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called Hammurabi's Code. Some of you may have heard of that, but that's where it began. It
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came from Babylon and spread around the Middle East and then across into North Africa and then
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into Italy. And in Italy, it really started to become what we know as today as a modern banking
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0:21:38 --> 0:21:[privacy contact redaction]em. There's a bit of an argument about did it start in Venice or Genoa, but most people agree
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0:21:44 --> 0:21:[privacy contact redaction]arted in Venice. If you go to Venice, it's an island. It's now connected to the mainland
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with a bridge, not quite a bridge, but a land bridge with a train track on it and a road. But
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it was previously an island in a lagoon surrounded by water. It couldn't be easily attacked.
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And the Venetians inherited the idea of banking from Babylon, and they inherited it through the
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Jews who arrived from Babylon. And they set up business. Now, in Venice, they were not allowed
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to be merchants. They were not allowed to be professionals. They were not allowed to
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be government officials. So they were very limited in what they could do. But they had the secrets
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of banking and the secrets are called the secret ledger. So they understood the secret ledger
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and double entry bank. They were allowed to live in Canareggio, which is a quarter, a small area at
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the back of Venice. It's basically the back, the boondocks down the back of Venice. They were allowed
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to live in Canareggio. They were locked in every night, usually six to seven pm, I forget the time.
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The sheriff would lock them in. They had to be in there. They were not allowed to practice their
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faith. They had secret synagogues. They're still there today. You can go and see their secret
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synagogues. But they were locked up all night. And then the sheriff would open the gates in the morning
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and they'd come out. The men would walk with their benches on their shoulders, their bench,
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and they'd carry the bench up to the Rialto Bridge. Some would set up around the Rialto Bridge,
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and the others would keep walking and they would walk up to the St. Mark's Square,
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which is the main square in Venice near the Doge's Palace and the Cathedral. They would set up their
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benches around the square with their backs to the wall. And the bankers would sit at the table.
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And in Italian, the table or the bench is called il banco. That's where the word bank came from,
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0:24:02 --> 0:24:[privacy contact redaction]and the escritti. The escritti were the men who wrote the
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ledgers. They kept it very difficult for people to see what they were writing because they had their
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backs to the wall. It wasn't encouraged that anybody could see the ledgers. I'm a descendant
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0:24:21 --> 0:24:[privacy contact redaction] My mother's maiden name is Scrivener. And Scrivener,
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the Scriveners were the escritti in England. So I am actually a descendant of an escritti.
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They had a relationship with the Doge who was the King of Venice. It renewed every two years
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because the Doge changed every two years. And they were able to just keep their arrangement
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going because the Doge would come and go every two years. And the new Doge would have to learn
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what was going on. Well, he never really learned what was going on. So Venice was a very strange
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situation where the Doge was changed every two years. And so banking was allowed to grow and
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flourish. And Venice became a very powerful trading nation with a great navy. They had
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0:25:12 --> 0:25:[privacy contact redaction]s there, which are still there today. And that's where banking began. There were
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private banks formed from families pretty quickly. There were banking runs. They had
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runs on bank. And I mean run. They were running through the streets of Venice to get their money
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before the other depositors got there. That's where that term comes from. And Genoa also had
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a bank over in Genoa, the bank called Di San Giorgio. And that bank was established in 1406.
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It was only closed a few years ago. So it's the longest living bank that we're aware of. I think
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there may be one other bank in Banco di Siena. I think it's really cool. It might be a little bit
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older. So where did the banking go after that? Well, it spread across the water to Padua, which
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0:25:57 --> 0:26:[privacy contact redaction] across Padua in Italy, across the water from Venice. Then it went to Ferrara, which is
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the town south of Padua, going west to Mantua, then to Milano, then south across the mountains
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to Florence or Firenze, across to Genoa, Siena and up to Odessa because they could travel on the sea
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0:26:20 --> 0:26:[privacy contact redaction]ill very famous today because of course it's a key port in Ukraine.
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And a lot of the bankers went to Odessa and then spread up through Hamburg to the north of Germany.
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And others went over the Alps to Bavaria, Munich, Frankfurt, Amsterdam, across to Amsterdam and then
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London. That's how it all spread. The important thing that really happened happened in Florence.
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That's where the Medici family joined the state, which was then the church, with the banking
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0:26:54 --> 0:27:[privacy contact redaction]ion. So they fused banking with the state. Some of the Medici's were popes, others were bankers.
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They were very successful at what they did.
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What other central banks were formed? Well, you've got all the dates there. Sweden had
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the Riksbank in 1668, the Bank of England 1694, Scotland, Spain 1782, France 1800,
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and Netherlands 1814, Norway and Finland. So you notice Germany is not there because Germany wasn't
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a single nation. It was a fiefdom of many, many powerful families and
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0:27:33 --> 0:27:[privacy contact redaction]ates that are really family states.
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So we go back, we've got to wonder why did all these central banks form?
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Well, there's a whole lot of reasons the central banks form because the king or the sovereign or
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the royal family needed someone to help them with their banking and to be an intermediary between
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0:27:56 --> 0:28:[privacy contact redaction] thing with central banks. And then as private banks
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formed, more retail or commercial banks formed, then the central banks were invented to
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0:28:10 --> 0:28:[privacy contact redaction]or, the whole sector. So it forms a very important role
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0:28:18 --> 0:28:[privacy contact redaction] Remember, trust is the key important thing in money and in banking.
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Now you can look at life without a central bank. It's not hard to look at it. It's very
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fashionable these days to attack central banks and say they're terrible, terrible things and
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0:28:36 --> 0:28:[privacy contact redaction]e. But the fact is, before you reach that conclusion,
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you should look at life without a central bank. And it's very easy to do. We can look at the 19th
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0:28:50 --> 0:28:[privacy contact redaction]ates and see what happened because they had a very long period without a
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0:28:56 --> 0:29:[privacy contact redaction], it was about 60 years, I think, from memory. I've written an article on
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that and I'll put the link up there for you. If you get these slides, you can click that link.
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And in that weekly editorial, I wrote about the failure of free banking and sound money in the
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0:29:15 --> 0:29:[privacy contact redaction]ates and the financial mayhem in the 19th century, including the panic of 1837,
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0:29:22 --> 0:29:[privacy contact redaction]ing article. And I wrote it, but a lot of people like to read it.
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It opens their eyes about what life is like if you don't have a central bank.
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You get total financial chaos, basically. Now, what is our financial world that we're living in
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now? That's really important to understand because we live in an empire. And the empire
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is the U.S. dollar empire. That's what we're living in. It's very similar to the Roman Empire,
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but this empire is a currency empire. All of the U.S. military is not there to fight off enemies.
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They don't have anyone seeking to invade the U.S. It's all there to defend the dominance of the U.S.
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dollar. That's what it's all there for. Now, this all began in a meeting in July 1944 in New Hampshire
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where the Americans called all of the allies together in a little town called Bretton Woods
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in a hotel called the Bretton Woods Hotel. And that meeting was very, very important.
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In that meeting, they established some very important things which still stand today. So
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that meeting was the beginning of the U.S. dollar empire. They established an agreement that they
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0:30:47 --> 0:30:[privacy contact redaction]ed Nations, the IMF, the World Bank, the World Trade Organization,
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eventually the World Health Organization. And they agreed to use the U.S. dollar as the reserve
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0:30:59 --> 0:31:[privacy contact redaction]s, the currency that people would transact their international
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settlement, trade settlements in. This was pretty much railroaded through by the Americans. They
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had it all ready by July 1944, which is suspicious in itself. And so there were two major allies that
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were very, very suspicious about what the hell was going on. The war was in full flight. They were
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nowhere near the end of the war. And so two major allies said, what the hell is going on?
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And I've written on the slide there, who were they? Who were the two major allies? Well,
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I'll answer the question. They were United Kingdom and the USSR.
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Both of these allies, the two major allies, were very suspicious. The leader of the UK
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0:31:59 --> 0:32:[privacy contact redaction] Keynes proposed a very different solution. He wanted
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an international currency to be agreed, a basket of currencies. But he had no power to drive that
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through. Somehow or other, he had a heart attack on the sixth day of the meeting. And that's also
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0:32:22 --> 0:32:[privacy contact redaction]ed with some suspicion. And he was never the same man again after that. He was a brilliant,
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brilliant person and was able to control lots of things, but not the outcome of the Bretton Woods
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meeting. The Russians from the USSR were immediately suspicious. They said so. They never
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ratified the agreement back in Moscow. So basically, from that moment on, Russia had
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what trick was being pulled. So I would call it a trick. Some people may not, but
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that's what happened. So the US dollar dominance began and it manages to persist because of the
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volume of dollars that are outside the control of the US government. And we call those dollars
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Euro dollars. It doesn't matter whether they're in Japan or Australia or Papua New Guinea.
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Any US dollar outside of the US is called a Euro dollar. Now, central banks hold many different
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currencies in different volumes. But the dominant currency they hold is the US dollar. In fact,
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it's 60% of central bank foreign exchange holdings. The next most heavily held currency is the Euro,
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which is 20% of central bank foreign exchange holdings. In other words, holdings that are
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available to settle global trade. And the important thing to understand here is that
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0:34:10 --> 0:34:[privacy contact redaction]ralian dollar, the Canadian dollar, the Chinese Yuan,
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the French franc, the Swiss franc, all make up about 2% of the remainder. So they're 2%.
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US dollar 60%. Euro 20%. Now, some people say the Euro is purely a US dollar proxy established by
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the Americans. And I tend to agree with that. And that means they have 80% of central bank
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foreign exchange holdings that are there and available to be used to settle global trade.
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So it's a very, very dominant situation. Something happened in the 1960s, which really
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cemented this. And that was the development of the Euro dollar loan market. This is where the
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0:35:03 --> 0:35:[privacy contact redaction]n banks create loans to nominated US dollars. And they loan that money mainly,
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principally, to large corporations. So this then grows the Euro dollar volume outside of America
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0:35:22 --> 0:35:[privacy contact redaction]e say it was an accident, but nonetheless, it happened. And
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the dominance of US dollar is held by two things. One is the strength of the US military,
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which enforces it. And also the sheer volume of US dollars that are outside the control of the United
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States. I think the next heading is national currency. So let's talk about what a national
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currency means. So a nation is bound by its general acceptance of a national currency.
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I would go so far as to say that a nation is its currency. Without its currency, it's really not
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a nation. So it is a tribal or group contract enforced by law with the perpetual contract. So
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0:36:20 --> 0:36:[privacy contact redaction]e into a currency. Yes, we have a flag. Yes, we have a parliament. Yes,
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0:36:26 --> 0:36:[privacy contact redaction]em. But really, deep down in the contractual agreement, it's the agreement
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to generally accept the national currency, which fuses and cements the society. The currency is
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issued by either the Treasury Department, the Central Bank or both. I've said before, Germany's
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0:36:48 --> 0:36:[privacy contact redaction] 100 years because of all of the events that have occurred in
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Germany. And yet they've still got a robust economy. It's quite an amazing achievement.
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Now, some central banks are privately owned. Others are 100% government owned. Most of them
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are 100% government owned. And some have got a mix of ownership. I've written another editorial
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on boom finance and economics on this subject. It's actually on the same link as the one I just
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gave previously. And that is all about who owns the central banks and the fact that you can actually
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buy shares in some central banks. Those central banks are the Bank of Japan and the Bank of Italy
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and the Swiss National Bank is three. And they're all big, big central banks. You can buy shares on
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them. They're publicly traded on the stock market, but they're not a very good investment.
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The possible exception of the Swiss shares in their central bank. But it's a shock to
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0:37:52 --> 0:38:[privacy contact redaction]ually buy shares in these banks. The banks that are 100%
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0:38:00 --> 0:38:[privacy contact redaction]ates Federal Reserve. They don't call themselves a bank. They
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call themselves the Federal Reserve. And it's privately owned. A lot of people don't realize
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that. So there's a mix of ownership. The interesting central bank that's been formed in the last 20
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years is the Bank of Russia. And it has a very interesting constitution. If you're at all
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0:38:25 --> 0:38:[privacy contact redaction]ed, you might like to read that. The central difference between capitalism and communism
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0:38:33 --> 0:38:[privacy contact redaction]ood. In the USSR, there were no commercial banks. There were no bank ones.
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There was one bank that was the central bank of the USSR. They created the money. They spent the
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money into the economy. That is what communism at the end of the day is really all about. It's
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0:38:54 --> 0:39:[privacy contact redaction]y by a central bank. In our world, the central bank does
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not really control the volume of money. It tries to control the volume through inter-freight
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settings. That's basically the difference between capitalism and communism. We've got a lot to cover,
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so we won't dwell too much on banking. We've gone through a lot there on banking. The next thing
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0:39:20 --> 0:39:[privacy contact redaction] of cryptocurrencies, because everybody's confused
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0:39:25 --> 0:39:[privacy contact redaction] digital tokens, but they're not money. They can't be
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0:39:32 --> 0:39:[privacy contact redaction]s for money I just gave earlier, you'll soon learn that they
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can't be money. What is blockchain technology? It was called the chain of blocks. It was cryptographic
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technology invented in 1986-87. Then there was a paper released by the NSA, the National Security
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Agency in America in 1996. In 1996, they released this paper called How to Make a Mint,
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it's cryptography of anonymous electronic cash. Nothing happened. I read that paper within 48
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hours of it being published. A friend sent it to me. Nothing happened. Then 12 years later,
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0:40:09 --> 0:40:[privacy contact redaction]erious Japanese person called Nakamoto Satoshi, or really they called him Satoshi
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Nakamoto. He arrived and he released the Bitcoin blockchain in 2008. I'll just tell you the meaning
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of if we reverse the name Satoshi Nakamoto, it means Nakamoto Satoshi, of course. Now that in
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0:40:29 --> 0:40:[privacy contact redaction]ers means central intelligence. The How to Make a Mint paper in 1996 was released by
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0:40:40 --> 0:40:[privacy contact redaction]oyees of the NSA in America, the National Security Agency. Then the Bitcoin blockchain was
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released and off went the world of crypto. It reached its zenith only one year ago. It reached a
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market capitalization of $3 trillion. I wrote an editorial at that time and said,
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this will collapse below one trillion. I wrote that editorial about a year ago.
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0:41:06 --> 0:41:[privacy contact redaction] below one trillion. Now it's about,
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at the moment, about $820 billion of total market capitalization value of the crypto world.
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There's now 9,000 of these crypto tokens available to be traded on various exchanges around the world.
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0:41:25 --> 0:41:[privacy contact redaction] a look at them all if you're interested.
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I'll just say a few more. I think I've gone the wrong way. Where are we?
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Anyone see? You're right. So I'll just. Okay, all right. I hit the wrong button. So the crypto
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world, is this money? No, I'd call these digital commodities. They don't meet the tests of being
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generally accepted in particular. So generally accepted is the digital currency. And the digital
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general acceptance is the problem here. There's a lot of other things. They really don't have
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the legal backing that currencies are supposed to have under their normal formation.
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So there really can't be currencies. They're just digital tokens. They're not much different to
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what a chip you might get at a casino. Okay, so that's the crypto world. Now we're going to
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get on to the world of CBDC. Someone might have heard of this. Central Bank Digital Currencies.
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0:42:30 --> 0:42:[privacy contact redaction]e are very worried about. But there's a few problems.
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0:42:36 --> 0:42:[privacy contact redaction] central banks cannot issue a currency. It's against the law. They can't do it. They can only
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buy and sell securities or assets. They can create the assets and buy and sell them, but they can't
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issue a currency. Isn't that interesting? So most central banks cannot issue a currency by themselves.
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0:42:53 --> 0:42:[privacy contact redaction]ing exception to that, by the way, is the Bank of Russia. But that's just an
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0:42:58 --> 0:43:[privacy contact redaction]ing side issue. So what is the CBDC? It's supposedly a central bank digital currency.
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But we've already got a dominant digital currency. It's the US dollar. We've already got digital
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0:43:10 --> 0:43:[privacy contact redaction], all of our currencies are now digital. And guess what? They've been digital
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since the mid 1960s. They're on the electronic bank ledgers. So we've had digital currencies for
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going on [privacy contact redaction]y is now 98% credit on those bank ledgers.
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Therefore, 98% of our money is digital already. And only 2% is cash. So 98% of our transactions
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are already being tracked on digital ledgers. And they've been tracked for many decades. So the idea
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that you, oh, shock horror, they might be able to track where I'm spending my money. Well, I'm sorry
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to tell you folks, they're already tracking 98% of your transactions and have been doing for a long
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time. Then they say, Oh, they'll be able to control where we spend money. Well, that's unlikely as
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0:43:59 --> 0:44:[privacy contact redaction]ed for decades. Credit availability is already restricted.
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There's always, there's already restrictions on credit money. It's not as if you can just,
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0:44:08 --> 0:44:[privacy contact redaction] get access to credit money from a bank. Okay, so cash is different. Cash is 2%
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0:44:19 --> 0:44:[privacy contact redaction]y at the moment. And it's very, very different. I won't, I can go into
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the central bank digital currency later in the question and answer session. Someone will have a
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0:44:29 --> 0:44:[privacy contact redaction]ion. Let's go on to the importance of cash. So cash is sovereign money. It's the money of the
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0:44:34 --> 0:44:[privacy contact redaction]e. The sovereign, or the, in which case it'll be most cases, the government these days,
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sovereign will create more money in response to demand. And guess what? Such demand cannot be
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refused. If you increase your demand for cash, it has to be provided by the sovereign.
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There's some very bad consequences if the sovereign doesn't. So you can acquire cash at the bank,
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the ATMs, and you can get it at merchants. They'll often offer you cash at a merchant if you ask them.
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So we've got to boost cash back to 50% of the money supply. That's my main
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0:45:12 --> 0:45:[privacy contact redaction]ion for you today. We've got to use cash as much as possible. It's our money.
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It's not bankers money. It doesn't generate an interest. There's no interest. It's interest free.
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It's the people's money. And we can demand it by using it. In other words, the more we use it,
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the more the demand goes up, the more the central bank or the government or the treasury
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will print the cash and send it out. You can ask merchants to give discounts for cash. This is a
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0:45:45 --> 0:45:[privacy contact redaction]art to tweak on to the idea that they can give a 5%
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discount, if you settle with cash, that'll grow like Wi-Fi. The merchants will realize everybody
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0:45:57 --> 0:46:[privacy contact redaction]arting to offer a discount. You've got to start asking the merchants to give you a discount.
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0:46:03 --> 0:46:[privacy contact redaction]ion. And you've also got to use community owned banks
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0:46:11 --> 0:46:[privacy contact redaction]ead of shareholder owned banks. That's the third key item.
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So what's a community owned banks? Well, it doesn't give pay dividends.
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It's owned mainly by, it's like a club. It's a cooperative. All of the community owned banks
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0:46:30 --> 0:46:[privacy contact redaction] erupted from credit unions or building societies in the past. They've now
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been granted banking license so they can create credit. They don't pay dividends.
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In Germany, 75% of all banking is done by community owned banks. There's no shareholders
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in those banks. There's no dividends paid. So they can retain the capital, the profits as capital.
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0:46:53 --> 0:46:[privacy contact redaction]ability. We've got quite a lot of these banks in Australia.
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0:46:59 --> 0:47:[privacy contact redaction]s. I've given you some links to lists of banks,
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but the ones that are pretty well known, Australian Military Bank,
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Auswild, Heritage Bank, Police Bank, Q Bank, QDOS Bank, RACQ Bank, there's quite a few more.
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I'd encourage you to use community owned bank. And lastly, we're going to talk about the subject
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of wealth. So what's wealth? Well, financial wealth is money trapped in assets. Okay, financial
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wealth is not currency because it's trapped. It only becomes currency when the asset changes hands.
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It changes form then from wealth into currency, and the currency is transferred back to wealth
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0:47:42 --> 0:47:[privacy contact redaction]ances. But that's not really wealth. Wealth is encompassed by our health,
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our independence, the rule of law, our freedom, an independent justice system,
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0:47:57 --> 0:48:[privacy contact redaction]em, strong community, strong family, strong friendships.
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That's what wealth really is. And you've got to always be thinking, we've got to understand that
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we think democracy will take care of all of this. The fact is, democracy can easily transform into
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a tyranny of the 51%. So don't just think that your democracy will guarantee your wealth, it won't.
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0:48:25 --> 0:48:[privacy contact redaction]ems. I'll just mention it. It's called sortition.
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That's election by lottery. We won't go on about that. So government is our collective responsibility.
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We've got a choice we've got to make today. It's all between globalism or nationalism.
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This is our big choice. Why? Because the globalists are seeking immortality for themselves,
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0:48:52 --> 0:48:[privacy contact redaction] to make today. What's their motivation? Well,
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they're guided by technocracy, transhumanism, and eugenics. And they're driven by the philosophy
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0:49:05 --> 0:49:11
of utopianism. Utopianism came from Thomas More, who wrote a book called Utopia 500 years ago.
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Then Charles Fourier, a crazy Frenchman, wrote a lot of books and dreamt up a lot of ideas.
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0:49:18 --> 0:49:[privacy contact redaction] as what's called Fourierism, and infected the world of eugenics.
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0:49:24 --> 0:49:30
It developed into Marxism through Karl Marx. It created Mikveh Israel, the first settlement
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0:49:30 --> 0:49:[privacy contact redaction]ine called that was really the birth of Israel. It was responsible for national socialism,
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0:49:38 --> 0:49:46
or the Nazi Party. It was responsible for communism, responsible for Zionism, or feminism.
451
0:49:46 --> 0:49:[privacy contact redaction], Charles Fourier invented the word feminist. And he also had dreams of climate
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0:49:51 --> 0:49:54
change and wrote about climate change. And that was in the early 19th century.
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So you've got a choice, folks, freedom or slavery, globalism or nationalism. That's their choice
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today. That's just the end of the formal presentation. There's a lot of stuff there.
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0:50:09 --> 0:50:[privacy contact redaction]n't gone too quickly. A lot of the terms are foreign to a lot of people.
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0:50:16 --> 0:50:[privacy contact redaction]ions and we can develop a discussion. Charles?
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Beautiful. Beautiful, Gerry. Well done. Stop your sharing.
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0:50:27 --> 0:50:32
Good. So everybody give Gerry a round of applause. Good job.
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All right, questions. Elaine Lucas, you can go first because you sent one through to me. I'm glad
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0:50:39 --> 0:50:[privacy contact redaction]ease put your hands up for questions. One of the issues,
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Gerry, I'd like you to raise is the one that I raised earlier. Elaine Lucas, if she doesn't
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want to ask you, she asked the question, where does Australia borrow the trillion
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0:50:57 --> 0:51:[privacy contact redaction]us of debt that is said to be owed? Where does that come from?
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0:51:01 --> 0:51:08
That's a great question. I didn't get into that because I could speak for hours on this subject,
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so I had to sort of give you half an hour there. Australia doesn't borrow from a bank.
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It issues bonds. And the process of issuing a bond is very, very different to borrowing money
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or borrowing money from a bank. They're extremely different things. So they issue a bond. It's a
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0:51:29 --> 0:51:[privacy contact redaction] on it. And that contract, remember I said, money is a contract.
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They issue a paper, it's called a bond. They basically issue this to any willing investors.
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0:51:44 --> 0:51:[privacy contact redaction]s in the piece of paper. They say, okay, I'll take that paper off you
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0:51:49 --> 0:51:[privacy contact redaction] you're going to be there in 10 years' time. You're the government of Australia.
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0:51:54 --> 0:52:[privacy contact redaction]ralia in that contract says, we'll pay you X percentage on the initial
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amount. And then at the 10 year, at the end of the term, the bond will, what we call, mature
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and the money will be paid back to the investor. And the investor will get income all the way
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through. So that's interest bearing money. But there is no money created when a bond is issued.
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0:52:22 --> 0:52:[privacy contact redaction]ors' pockets with one exception. And that's when
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you do, when a central bank does what we call QE or quantitative easing. And that's a rare event.
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It doesn't happen very often where the central bank buys some government bonds, if not all of
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the government bonds. So that's an exception. So QE, which we've sort of heard of quantitative easing,
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is the exception to the rule. But usually, when a bond is issued, there's no new money invented,
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0:53:00 --> 0:53:06
not created. So it's very, very different to a bank line. Say your government went to a bank
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and borrowed money from the bank in a bank line, then we have fresh new money. In fact, I could go
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into the reason that I think our government could do that instead of issuing bonds, but that's very
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0:53:18 --> 0:53:[privacy contact redaction]icated. But so we're not loaning money. We're not borrowing money as a government or a bank.
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There's a difference between a government borrower and an individual borrower. Government is an
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immortal being essentially, and can enter into very long contracts of trust, because people trust
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that it'll be there in 20 years time or 30 years time. If I borrow money off you, Charles, I'm pretty
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sure you won't be here in 30 years time or 40 years time. So you're not regarded as an immortal
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0:53:50 --> 0:53:[privacy contact redaction]ing. The contracts are written in very specific ways
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0:53:56 --> 0:54:[privacy contact redaction] a capital value and an interest component, and that makes them different
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0:54:03 --> 0:54:[privacy contact redaction]or. So now there's another important point. I'll just very quickly make this very great
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you'll hear often people say, oh, the debt to GDP ratio is, let's say, in Australia, it's about 40%,
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but in other countries, it's up to 100%. In Greece, 150 or 200% or 250%. Yeah, yeah, yeah.
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0:54:27 --> 0:54:[privacy contact redaction]e say, shock, horror, we'll never pay this back. Well, there are two issues here. You don't
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have to pay it back because when as each bond matures, it could be rolled over to another set
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0:54:37 --> 0:54:[privacy contact redaction]ors will just say, just roll it over. I'll take another 10
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years. So at maturity, the bond is just rolled over more often than not, either to the same investors
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0:54:48 --> 0:54:[privacy contact redaction]ors. You can even pay all your interest on the bond by doing.
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0:54:53 --> 0:54:59
I won't go into that, but yes, you can pay all the interest. So let's dispense with the mechanics
500
0:54:59 --> 0:55:[privacy contact redaction] talk about the debt to GDP ratio. People get scared about this. They ask, how many trillions
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0:55:04 --> 0:55:11
of dollars? Oh my gosh, how are we going to do this? But it's a incorrect ratio. The debt
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is usually got around 20 years of term, maturity, and they measure it to one year of GDP.
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0:55:18 --> 0:55:25
This is totally ridiculous. If they changed it to 20 years of GDP and compared 20 years of debt to
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20 years of GDP, then everything changes. Let's give you an example. Say we look at the US
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current government debt, which is about 30 trillion. We say, their economy is only 20 trillion.
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It's 150% of GDP. It's a terrible disaster. That's not true. If you look up there, 20 years of GDP,
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it's 400 trillion. Suddenly the ratio goes from 30 trillion compared to 20 to 30 trillion compared
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0:55:58 --> 0:56:[privacy contact redaction]ivity is going to take place while all that debt
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is being serviced. That's really important. Debt to GDP ratios mean nothing. They're badly constructed.
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There's also another thing called the velocity of money. We'll just stop there for the moment,
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Jerry, because I want this to be reasonably tight one hour or so rather than... Okay, well,
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0:56:24 --> 0:56:29
that's enough on that. I mean, I can go. The next question is, what does someone do?
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0:56:29 --> 0:56:35
They're sitting on a piece of land. We're living in pretty interesting times. Today, that property
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is worth $2 million unencumbered. You're not giving advice here. What are the factors that
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someone like that should take into account? Well, should I sit on this land? If there's a
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depopulation agenda, it might only be worth a million dollars. What are some of the factors
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0:56:56 --> 0:57:[privacy contact redaction]e should take into account on that thinking? Well, I think that if you go back over
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the presentation I've just made, you'll see the centrality of housing in our money supply system.
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0:57:08 --> 0:57:15
It's the biggest credit money created in a bank loan is there money created as bank loans or
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with mortgages attached for houses. So it's got a centrality to our financial system,
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0:57:22 --> 0:57:26
is the house. And it's important because we have to live somewhere into the day. So
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that centrality of the house in the mortgage loan origination process should give you some idea
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of its importance as it looked at the whole financial system. So where else can you invest?
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0:57:42 --> 0:57:47
Well, basically you can keep money in cash. You can invest in commodities.
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0:57:48 --> 0:57:[privacy contact redaction] in property, real assets, or you can invest in stocks. So if you sell a house and
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end up with a whole pile of cash, you've got to decide what your asset allocation is going to be
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from that day on. And you've just stepped away from the biggest, most dominant part of your
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0:58:12 --> 0:58:[privacy contact redaction]em. You've stepped out of it. So I don't generally, I mean, I think that's a very
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important decision to be made. And then you've got to be really careful about your asset allocation
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0:58:24 --> 0:58:[privacy contact redaction]ment possibilities. But I tell people, look, asset allocation is very
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important. You've got to work out how much cash you're going to hold, how much property you're
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going to hold, what your home is in that mix, how many stocks you may own, how many bonds you may
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own, or you may like to own some commodities. There's a whole range of other assets you can
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buy, but that's called asset allocation. And that's very, very important thing. And if you want to be
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safe, you can just split it up into the same all across. The problem we've got is our houses
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0:59:02 --> 0:59:[privacy contact redaction] asset we own, and we've got to live something. But it's got its centrality
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buried in our creation of money. So that's an important thing to consider.
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That's all I'd want to say on that. I think you've got to sort of make up your mind about
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that centrality. And okay, so the next one, Gerry, is with cash and money. Your advice was we should
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all be pushing to use money. And you've heard me and those on phone have heard me say I use cash as
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0:59:31 --> 0:59:[privacy contact redaction]e, I tell young people, I give them cash, always use cash,
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and I smile at them, I look them in the eye. I'm surprised how many young people realize this. So
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what's the threat? What are the dangers, someone asks, of getting rid of legal tender and digitizing,
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you know, the whole economy, Gerry? And you said let's go to 50% cash. Well, what's the consequences,
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you know, if we get rid of cash? Great question, Charles, we actually have to get rid of physical
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cash, because we need electronic cash. And we desperately need it, because our working
547
1:00:09 --> 1:00:[privacy contact redaction]ern world are all in decline. Therefore, our borrowing numbers are in
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1:00:15 --> 1:00:20
decline. The number of borrowers coming forward to create fresh new money with bank loans is in
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1:00:20 --> 1:00:26
decline. And this is the case for every advanced economy in the world, including China, is only one
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1:00:26 --> 1:00:31
continent that is not in this situation, and that's Africa. So we've all got a problem.
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1:00:31 --> 1:00:35
What is what? We're running out of borrowers. And the reason we're running out of borrowers
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because of the demographics. And that's what created not completely, but it was the beginning
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of the financial crash of 2008. We essentially ran out of borrowers. There are a lot of reasons
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why, but just concentrate on the working age population decline. That's really, really important.
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Now, we need to get the cash component back up, because cash is a form of money that generates a
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1:01:01 --> 1:01:[privacy contact redaction]ability in an economy. If you think back to the 90s and 50s and 60s, they were very stable
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1:01:08 --> 1:01:14
economies. Why? Because there was so much cash in circulation. And in comparison to credit, it was
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dominant. So if we can get cash back up, we'll end up with a much more stable economy. It's
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really, really important. Please note that if we get the cash percentage up out of the whole
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1:01:26 --> 1:01:[privacy contact redaction]y, the economy becomes more stable. Less inflation cycles, it's much more stable.
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1:01:34 --> 1:01:43
So very important point. Now, if we got demand up enough, we could just do that with physical
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cash, but it would be just about impossible. Everyone's used to just waving the plastic.
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So I think there's a very important element here. We need to create electronic cash.
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1:01:54 --> 1:02:02
And I think the central banks are trying to stop it, because banking sector makes zero profit out
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of cash. Nothing. They've got 98% of the money creation. They don't want to see it go down.
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So I think the whole scare campaign about central bank digital currencies is being created by the
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central banks themselves. And there are two very important speeches that you've got to watch
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1:02:20 --> 1:02:[privacy contact redaction]ine Lagarde in 2018 in Singapore. The other one is
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1:02:26 --> 1:02:[privacy contact redaction]ens, the head of the Bank of International Settlements, where they basically
570
1:02:30 --> 1:02:[privacy contact redaction] said, we're going to bring in social credit, we're going to control this, we're going to,
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1:02:35 --> 1:02:[privacy contact redaction]ually came out and it's clear as a bell, they wanted to scare the pants off everybody
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1:02:42 --> 1:02:[privacy contact redaction]ronic cash, but they called it CBDC, central bank digital currencies.
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1:02:49 --> 1:02:54
They've actually been so successful at this in the last four years. We've got people almost
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1:02:54 --> 1:03:[privacy contact redaction] demanding that electronic cash not be created. We should be
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1:03:02 --> 1:03:[privacy contact redaction] demanding the creation of electronic cash. It's really
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bizarre what has happened, but they've been very successful. That's my gut feeling about the whole
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CBD fiasco. It's another fear and control process launched by the central banks themselves. And if
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you doubt me, go and watch Christine Lagarde's speech in [privacy contact redaction] bizarre
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speech a central bank has ever made. Okay, beautiful. Thank you, Gerry. We've got John O'Connor
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1:03:33 --> 1:03:37
and we'll finish in a couple of minutes so that people can plan their lives because we said this
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was going for one hour. Gerry's got work to do to save the world from scams and a wife who wants him.
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1:03:44 --> 1:03:53
John? Gerry, just one question. I'm just so behind in the financial field, but when you say digital
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cash, does that mean that that digital cash would be tied to a commodity base like gold or silver?
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1:04:01 --> 1:04:08
Is that what you're saying? No, no, no. That's called sound money. If you read my editorial on
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the failure of sound money in the 19th century in the United States, you then realize that that's the
586
1:04:15 --> 1:04:[privacy contact redaction]er. Backing currencies with things like gold is a disaster. The British abandoned the
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1:04:22 --> 1:04:[privacy contact redaction] in 1931 and they were the dominant currency then. They were the reserve currency.
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1:04:29 --> 1:04:34
The pound was the settlement currency, the sterling. The Americans took over that reserve
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1:04:34 --> 1:04:[privacy contact redaction]atus and didn't abandon the gold backing until 1971. It took them 40 years to work out the
590
1:04:41 --> 1:04:[privacy contact redaction]er it was causing because if you tie it to something like gold, your issuance of currency,
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1:04:48 --> 1:04:55
then you've got to find a very clever committee to continually value the price of the currency
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1:04:55 --> 1:05:[privacy contact redaction]s, to value gold. What's gold's value? Well, very questionable.
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1:05:00 --> 1:05:07
The other thing it generates is nations, when there was gold as a central component of their money
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and backing, they stole gold. What do you think Spain did in South America? They went there and
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1:05:13 --> 1:05:[privacy contact redaction]ered and mayhem and stole as much gold as they could. Gold is a really
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1:05:21 --> 1:05:29
poor thing to do with backing currency. You can't expand your economy. You've got to find
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1:05:29 --> 1:05:[privacy contact redaction]s. I haven't been able to find one yet, the Atlanta committee
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often, to set the price of gold. It's just clunky. It doesn't work. All the people who propose it
599
1:05:45 --> 1:05:[privacy contact redaction] tell the same lie over and over again. They say the US dollar will collapse.
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1:05:51 --> 1:05:57
Gold will skyrocket in value and price. Well, look, there are people who have been writing that
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1:05:57 --> 1:06:02
article for 30 years. They write the same article over and over and over again. I've watched the
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1:06:02 --> 1:06:08
articles. They never vary and they're never right. They're never right. If you get on the internet
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today, you will be bombarded with those articles about the glories of the gold backing of currencies.
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1:06:15 --> 1:06:22
It's ridiculous. The fiat currency system we've got is possibly the most marvelous invention of
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mankind. It's allowed us to create this huge complexity in our economy. We've got jumbo jets.
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1:06:28 --> 1:06:35
We've got MRI scanners. We've all got beautiful cars that are air conditioned to drive around with.
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Our economies are living in nice homes. The complexity is wonderful and that complexity
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1:06:42 --> 1:06:47
sprung from the creation of credit that's not backed by gold. I think that's just a
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bit of a con, the whole gold thing. I don't think it's worth it.
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1:06:50 --> 1:06:[privacy contact redaction]ion. What's the difference between a community bank and a credit union?
611
1:06:58 --> 1:07:[privacy contact redaction]ion. A lot of our credit unions have become community banks. They've been given
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1:07:02 --> 1:07:[privacy contact redaction] credit unions or billing societies, they could only
613
1:07:08 --> 1:07:[privacy contact redaction]s, the savings of their depositors. As soon as you change into a
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1:07:13 --> 1:07:19
bank, you don't loan the money that you've been given as a deposit. You actually create fresh new
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1:07:19 --> 1:07:26
money in a loan. The banking license is that. It's the ability to create credit money over and above
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1:07:26 --> 1:07:32
any deposit money that may be there. Credit unions are good and billing societies are good,
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1:07:32 --> 1:07:39
but they are not good in terms of growing the complexity and size of your economy
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1:07:39 --> 1:07:45
because they're limited. It's the same thing as limiting your money supply to gold. It's not
619
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much different. You're limited. That's why our credit unions have become transformed into banks
620
1:07:51 --> 1:07:[privacy contact redaction] 10, 12 years or so. Beautiful. Sorry, Charles.
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1:07:56 --> 1:08:09
Yep. The spread or the allocation of assets, I enjoy reading James Rickards. He, through history,
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1:08:09 --> 1:08:15
he said if you had $10 million, this is the allocation that he would recommend. He followed
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1:08:15 --> 1:08:21
the wealth of European families over the last 900 years through socialism and terrorism and blah,
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1:08:21 --> 1:08:28
blah, blah. One idea that stuck in my mind, Gerry, was the value of fine art, museum quality,
625
1:08:28 --> 1:08:[privacy contact redaction]ure out of your wall, put it into a tube, and walk over the mountains
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1:08:34 --> 1:08:40
like sound of music carrying millions of dollars of artwork. Anyway, here it is, everybody.
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1:08:40 --> 1:08:50
Physical gold and silver, 10%. Cash, 30%. Real estate, 20%. Fine art, he said fine art fund,
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1:08:52 --> 1:09:01
5%. Angel and early venture capital, 10%. Hedge funds, 5%. Bonds that Gerry talked about, 10%.
629
1:09:01 --> 1:09:[privacy contact redaction]ocks, 10%. There you are. That's an example of an allocation by a guy who's,
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1:09:07 --> 1:09:12
you know, a lot of people watch him around the world. Gerry, last words from you?
631
1:09:12 --> 1:09:[privacy contact redaction]s. He's the man I'm referring to. For 30 years,
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1:09:16 --> 1:09:19
he's written the same article over and over and over.
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1:09:19 --> 1:09:24
Hey, how brilliant is that? I wish I had a genius.
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His article is The US Dollar Will Collapse and Gold Will Skyrocket. I first read his article
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saying that in the early 1990s. It's 30 years ago. He has never changed. He sells books. He
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sells conferences. He sells newsletters. The whole thing is just a great fiasco of mistruths.
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1:09:49 --> 1:09:[privacy contact redaction], the whole Austrian School of Economics, which he's part of, is sound money people.
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Quite frankly, it's all a misinformation program.
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So isn't that wonderful, everybody? This is like moderating a meeting of doctors,
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having a debate about various matters. So everybody, please note. But I think the fact
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that you are here, those who are watching a recording of this, Gerry, you've given us a
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snippet. You've given us resources to learn from. Your advice is that we must keep learning. Stop,
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you know, stop being surprised about it because what we're dealing with here is complex issues,
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and you can't hope to master it without learning.
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No, that's right. I'd encourage everybody to get the slides I put up today just to get started.
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You've got to start reading. I mean, it's taken me to get to my level of knowledge in this area.
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It's a very, very heavy commitment of learning over at least 20 years. The central bankers
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1:10:47 --> 1:10:[privacy contact redaction]uff. The chief economic advisors read it. It's quite amazing. And I'll just tell you a
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1:10:52 --> 1:10:[privacy contact redaction]ory there. One of my very good friends in the world of finance is a very famous fund
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manager, possibly one of the most famous of all. Lovely man. I know him very well. He's always
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managed 30, 50 billion. But he's the same age as me. So we're very similar in our whole life,
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what's happening at large and all sorts of things. But we meet on a regular basis. Usually we have
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lunch. I won't say where, but somewhere in the world. And every time we talk all about what's
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happening, you know, what do you think here? What does this lunch goes on for three hours,
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1:11:23 --> 1:11:[privacy contact redaction]s, backwards and forwards. Okay. And last time I was with him, I said,
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I want to ask you, why do they read boom? Because he knows a lot of central bankers.
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Oh, he said, they read boom because they can't read it anywhere else.
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1:11:38 --> 1:11:[privacy contact redaction]s, I'm giving the world of finance a viewpoint, which they really can't get anywhere
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else. And the reason they can't is because they lose their jobs if they started promulgating a
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1:11:50 --> 1:11:[privacy contact redaction]uff I talk about. The world of economics and finance is a religion.
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They're archbishops in that religion. And so they sneak every Sunday morning,
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they sneak a look at boom and read. So that's what he said to me. And believe me, he does know
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what he's talking about this man. And you're getting good feedback from people who give you
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1:12:14 --> 1:12:[privacy contact redaction]ive. So next week you add to that. So it's very good. Jerry, we're going to go.
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1:12:19 --> 1:12:[privacy contact redaction]ion he always asked me at the end of every lunch,
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he says, Jerry, come on, how many euro dollars exist? And you know why he always asks this last
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1:12:30 --> 1:12:[privacy contact redaction]ion. And do you know why? Why whose? Nobody knows. The tax haven banks won't show you their
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1:12:38 --> 1:12:[privacy contact redaction] to try and work it out through, let's say, surreptitious means as to what the value
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1:12:46 --> 1:12:[privacy contact redaction]s finish our lunch with a discussion of what do you think? And I give my number,
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he gives his number. I've been here for years and he keeps coming up all the time. But I think I
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1:12:58 --> 1:13:[privacy contact redaction]ion, but I'm not prepared to say it on a public meeting.
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Very good. Well, Jerry, we might have to cut off that bit about Jim Rickards. It might be a little
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bit. No, that's that's that's that we want to make you famous through controversy. That's the way.
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Oh, I don't I don't seek fame, no fame at all.
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We'll sing you a song. Fame. I'm going to live forever. OK, thank you all for being a good
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audience. Everybody. Thank you, Jerry. We have this recording will be available for you all.
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We share it with the phone link and then you can share it with others. Please. It's designed to be
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shared with others so that the knowledge around money increases. So thank you, Jerry. Thank you
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for being here, everybody. And we'll see you on Friday at the next meeting and we'll stop the
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1:13:46 --> 1:13:[privacy contact redaction]ing.
