1 00:01:30,000 --> 00:01:45,519 When you suggest to people that their money should be gold or silver coin, as it says 2 00:01:45,519 --> 00:01:50,680 in the Constitution, they sometimes stare at you with a blank expression or make the 3 00:01:50,680 --> 00:01:53,879 most extraordinary comments. 4 00:01:53,879 --> 00:02:01,119 Do you feel that our paper currency should still be backed by gold or silver? 5 00:02:01,119 --> 00:02:05,560 I think there should be a backing for currency, otherwise there's a temptation t... 6 00:02:05,560 --> 00:02:07,479 out and make too much of it. 7 00:02:07,479 --> 00:02:11,479 I'm not really sure what you mean. 8 00:02:11,479 --> 00:02:13,639 Change the color of our money or something? 9 00:02:13,639 --> 00:02:14,639 I buy silver. 10 00:02:14,639 --> 00:02:17,639 Gold. 11 00:02:17,639 --> 00:02:21,639 I don't know a lot about this topic, but I would say B, just because of counterfeit. 12 00:02:21,639 --> 00:02:24,279 I think it should, but unfortunately it isn't. 13 00:02:24,279 --> 00:02:26,519 Why do you think it should? 14 00:02:26,519 --> 00:02:31,479 I don't think the current system is stable. 15 00:02:31,479 --> 00:02:37,559 These statements by everyday American citizens show how little people understand... 16 00:02:37,559 --> 00:02:43,659 of the founding fathers. 17 00:02:43,659 --> 00:02:50,279 As the Constitution itself says, it is the supreme law of the land, and therefore the 18 00:02:50,919 --> 00:02:55,640 Constitution ranks ahead of any statutes of Congress, any statutes or constitutions for 19 00:02:55,640 --> 00:03:00,400 that matter of the states, and decisions of the courts. 20 00:03:00,400 --> 00:03:04,920 And any law or decision of the courts that is inconsistent with it is to that extent 21 00:03:04,920 --> 00:03:05,920 void. 22 00:03:05,920 --> 00:03:06,920 It's not a law at all. 23 00:03:06,920 --> 00:03:09,360 So what's going on here? 24 00:03:09,360 --> 00:03:15,439 Why does the Constitution clearly state that our money shall be coin, yet we are using 25 00:03:15,439 --> 00:03:21,599 government-issued, supposedly official paper dollar bills, and we can't even redeem these 26 00:03:21,599 --> 00:03:24,520 for silver any longer? 27 00:03:24,520 --> 00:03:29,039 And why does Thomas Jefferson, the very man who drafted the Declaration of Independence 28 00:03:29,039 --> 00:03:37,960 and co-authored the U.S. Constitution, warn us about banks and corporations? 29 00:03:37,960 --> 00:03:43,599 Something is off here. 30 00:03:43,599 --> 00:03:49,419 The Federal Reserve system, to most people, seems like it is an agency of the federal 31 00:03:49,419 --> 00:03:50,419 government. 32 00:03:50,419 --> 00:03:54,479 That's what I thought it was when I first started to research this topic. 33 00:03:54,479 --> 00:03:56,879 But it turns out that it's nothing of the kind. 34 00:03:56,879 --> 00:03:59,479 The Federal Reserve is a hybrid organization. 35 00:03:59,479 --> 00:04:04,519 It's a partnership between the federal government and the private banks. 36 00:04:04,519 --> 00:04:09,439 When you look at it deeper than that, its essence is neither as a government agency 37 00:04:09,439 --> 00:04:11,400 or a private company. 38 00:04:11,400 --> 00:04:14,400 In reality, it is a cartel. 39 00:04:14,400 --> 00:04:19,800 In other words, it's no different in essence than a banana cartel or a sugar cartel or 40 00:04:19,800 --> 00:04:21,879 an oil cartel. 41 00:04:21,879 --> 00:04:29,079 It's a grouping of the large private corporations in the field, banking, who ha... 42 00:04:29,079 --> 00:04:36,600 to create agreement between themselves to limit competition, to preserve their profits, 43 00:04:37,600 --> 00:04:41,800 that no newcomers come in and take away their position. 44 00:04:41,800 --> 00:04:45,040 That's what cartels are always designed to do. 45 00:04:45,040 --> 00:04:50,120 And it's a shocking thing to realize that something as prestigious as the Federal... 46 00:04:50,120 --> 00:04:56,160 system at its core is nothing more or less than a banking cartel with exactly those 47 00:04:56,160 --> 00:04:59,220 same objectives. 48 00:04:59,220 --> 00:05:03,960 The motivation for Congress to go into partnership with the elite bankers who for... 49 00:05:03,960 --> 00:05:06,320 Reserve is clear. 50 00:05:06,319 --> 00:05:10,480 Endless amounts of money could effectively be printed up and lent to Congress. 51 00:05:10,480 --> 00:05:16,040 Thus, individual congressmen would no longer be forced to depend on raising taxes to... 52 00:05:16,040 --> 00:05:20,560 additional revenue, an unpopular action that can cost them re-election. 53 00:05:20,560 --> 00:05:27,759 Ironically, if there were no Federal Reserve, there may have been no need for an income 54 00:05:27,759 --> 00:05:29,100 tax. 55 00:05:29,100 --> 00:05:32,920 The country did fine without it for 137 years. 56 00:05:32,920 --> 00:05:38,240 The income tax amendment was introduced the same year the Federal Reserve system was 57 00:05:38,240 --> 00:05:41,080 formed, 1913. 58 00:05:41,080 --> 00:05:45,120 Coincidence? 59 00:05:45,120 --> 00:05:49,800 Prior to the formation of the Federal Reserve system, the country never did better. 60 00:05:49,800 --> 00:05:54,720 In fact, that was the problem, at least for the major banks. 61 00:05:54,720 --> 00:05:59,960 Capital formation, also known as savings, was happening all over America. 62 00:05:59,959 --> 00:06:05,959 Rather than panics, many of which were caused by unethical lending practices, America was 63 00:06:05,959 --> 00:06:07,719 doing great. 64 00:06:07,719 --> 00:06:11,879 So much so, the big New York banks were losing business. 65 00:06:11,879 --> 00:06:16,620 But why isn't the mainstream media telling us this story? 66 00:06:16,620 --> 00:06:21,399 What would motivate them to refrain from a critical interpretation of banking history 67 00:06:21,399 --> 00:06:27,479 and the Federal Reserve system, especially today, when they broadcast critical, even 68 00:06:27,480 --> 00:06:33,439 intimate reports on every other aspect of life? 69 00:06:33,439 --> 00:06:37,080 I consider the Federal Reserve Act and the creation of the Federal Reserve as being 70 00:06:37,080 --> 00:06:38,080 unconstitutional. 71 00:06:38,080 --> 00:06:44,439 It gave the government then the power to create legal tender out of thin air, that ... 72 00:06:44,439 --> 00:06:45,439 create paper money. 73 00:06:45,439 --> 00:06:50,840 And although they didn't do that overnight, between 1913 and 1971, that is exactly what 74 00:06:50,840 --> 00:06:51,840 happened. 75 00:06:51,840 --> 00:06:57,360 But the notion of a central bank does not fit into the Constitution. 76 00:06:57,439 --> 00:07:01,759 Congress has the authority to coin money, and only gold and silver should be legal 77 00:07:01,759 --> 00:07:02,759 tender. 78 00:07:02,759 --> 00:07:08,240 And this is an absolute contradiction of the Constitution to have a Federal Reserve system 79 00:07:08,240 --> 00:07:09,860 and a central bank. 80 00:07:09,860 --> 00:07:13,040 Not a lot of American people understand it, and I would add that probably not too many 81 00:07:13,040 --> 00:07:15,480 people here in the Congress understand it either. 82 00:07:15,480 --> 00:07:18,520 I think they see it as a convenience, and I think a lot of other people see it as a 83 00:07:18,520 --> 00:07:23,000 convenience because they think they're protected by the type of system that we have. 84 00:07:23,439 --> 00:07:28,279 But a fiat monetary system or a paper money system is merely a system where the... 85 00:07:28,279 --> 00:07:35,480 has this power and authority to dictate and insist that a piece of paper is legal tender. 86 00:07:35,480 --> 00:07:38,939 And even members of the banking committee have come up to me and they say, you mean 87 00:07:38,939 --> 00:07:42,000 our dollar isn't backed by gold anymore? 88 00:07:42,000 --> 00:07:47,519 Not realizing that the Federal Reserve really accommodates big government bureaucrats and 89 00:07:47,519 --> 00:07:48,519 politicians. 90 00:07:49,039 --> 00:07:54,399 There's another major problem with the system, in that the system is a cartel... 91 00:07:54,399 --> 00:07:58,399 which means they've taken all the banks in the country and put them into one economic 92 00:07:58,399 --> 00:08:04,519 unit that's essentially regulated from the top by the Board of Governors of the Federal 93 00:08:04,519 --> 00:08:06,000 Reserve system. 94 00:08:06,000 --> 00:08:09,919 Comes 1932-33, you had the crash. 95 00:08:09,919 --> 00:08:13,560 Roosevelt administration came in, and one of the first important pieces of legislation 96 00:08:13,560 --> 00:08:18,479 that was passed was the National Industrial Recovery Act of 1933. 97 00:08:18,480 --> 00:08:23,520 And the National Industrial Recovery Act of 1933 did for all industries in the economy 98 00:08:23,520 --> 00:08:26,840 the same thing that the Federal Reserve system did for the banks in 1913. 99 00:08:26,840 --> 00:08:29,280 It created a cartel structure. 100 00:08:29,280 --> 00:08:33,759 All the steel producers were in one group, poultry people were in another group, mining 101 00:08:33,759 --> 00:08:36,960 people were in another group, and on top of this whole thing was something that looked 102 00:08:36,960 --> 00:08:40,560 like the Board of Governors called the National Recovery Administration. 103 00:08:40,560 --> 00:08:46,019 The National Industrial Recovery Act was challenged as to its constitutionality, an... 104 00:08:46,019 --> 00:08:51,740 to the Supreme Court in 1935, the Schechter poultry case. 105 00:08:51,740 --> 00:08:54,460 And the Supreme Court unanimously declared it unconstitutional. 106 00:08:54,460 --> 00:08:59,620 They said, this kind of delegation of power by Congress to private parties is, and this 107 00:08:59,620 --> 00:09:03,139 is an exact quote, unknown to our law, unquote. 108 00:09:03,139 --> 00:09:07,019 You couldn't find it anywhere by any method of interpretation, something unknown. 109 00:09:07,019 --> 00:09:09,980 Well, the difference between the National Industrial Recovery Act and the Federal... 110 00:09:09,980 --> 00:09:12,279 Act is essentially zero. 111 00:09:12,279 --> 00:09:18,439 The peculiarity here is that the Federal Reserve Act has never gotten that question 112 00:09:18,439 --> 00:09:22,039 to the Supreme Court. 113 00:09:22,039 --> 00:09:28,000 Let's take a second look at the words of Thomas Jefferson, a deeper look at exactly... 114 00:09:28,000 --> 00:09:34,240 and operates the private banks known as the Federal Reserve System, and what their... 115 00:09:34,240 --> 00:09:37,959 statement might be. 116 00:09:37,960 --> 00:09:43,160 The banks and corporations that will grow up around them will deprive the people of 117 00:09:43,160 --> 00:09:45,160 all of their prosperity. 118 00:09:45,160 --> 00:09:51,240 Interesting, that Jefferson not only mentions the banks that will grow up, but the... 119 00:09:51,240 --> 00:09:53,200 as well. 120 00:09:53,200 --> 00:09:59,680 Bear in mind that each one of the Federal Reserve Banks is basically a private... 121 00:09:59,680 --> 00:10:06,519 Neither you and I, the people, nor the Federal Government for that matter, own th... 122 00:10:06,519 --> 00:10:08,639 these so-called banks. 123 00:10:08,639 --> 00:10:14,279 They are owned by other corporations known as member banks. 124 00:10:14,279 --> 00:10:21,360 The Fed was formed not in Washington, D.C., not in the halls of Congress or some meeting 125 00:10:21,360 --> 00:10:28,079 room, but it was formed on a private island off the coast of Georgia called Jekyll... 126 00:10:28,079 --> 00:10:34,000 This island in those days was a club, they called it Jekyll Island Club, and its members 127 00:10:34,000 --> 00:10:40,559 were a relatively small group of billionaires from New York, people like J.P. Morgan,... 128 00:10:40,559 --> 00:10:44,399 Rockefeller and their business associates. 129 00:10:44,399 --> 00:10:50,500 When they went to the island, they all traveled aboard the private railroad car o... 130 00:10:50,500 --> 00:10:52,659 Nelson Aldrich. 131 00:10:52,659 --> 00:10:58,360 This was November of 1910, and he and six other men were told they mustn't be seen 132 00:10:59,279 --> 00:11:04,680 together, they couldn't dine together on that evening, and they must avoid newspaper... 133 00:11:04,680 --> 00:11:05,879 at all costs. 134 00:11:05,879 --> 00:11:08,560 One of them carried a shotgun. 135 00:11:08,560 --> 00:11:12,639 Just in case he had been confronted by a reporter, he was prepared to tell them tha... 136 00:11:12,639 --> 00:11:15,560 going on a duck hunting trip. 137 00:11:15,560 --> 00:11:22,039 When they got on board this railroad car, they were told not to address each other by 138 00:11:22,039 --> 00:11:25,639 last names, first names only. 139 00:11:25,639 --> 00:11:30,480 Even two of them even went further and they adapted code names. 140 00:11:30,480 --> 00:11:36,759 They were concerned that the identities of all of these seven men might be known to 141 00:11:36,759 --> 00:11:41,319 the servants on board the car, and that the servants might talk about it. 142 00:11:41,319 --> 00:11:44,439 In that fashion, the word would get out. 143 00:11:44,439 --> 00:11:49,319 Even when they got to the island and went to the clubhouse, they had replaced all of 144 00:11:49,319 --> 00:11:54,639 the normal servants with new servants who didn't know any of these people. 145 00:11:54,639 --> 00:12:00,679 And they created the Federal Reserve under those kinds of conditions of great secrecy. 146 00:12:00,679 --> 00:12:06,759 I can assure you that very few wars of history have ever been plotted under... 147 00:12:06,759 --> 00:12:11,519 greater secrecy than that. 148 00:12:11,519 --> 00:12:20,039 According to accidental releases of Fed stockholder information, as of 11-05-AM,... 149 00:12:21,039 --> 00:12:28,039 23, 1983, five member banks own 53% of the stock in the Federal Reserve Bank of New... 150 00:12:29,879 --> 00:12:35,240 the most major of the 12 Federal Reserve Banks around the country. 151 00:12:35,240 --> 00:12:39,959 This is a controlling interest in the controlling bank. 152 00:12:39,959 --> 00:12:46,240 The major stockholders of this major bank, however, are confidential. 153 00:12:46,240 --> 00:12:52,639 No one, not even the government or the President of the United States, knows who... 154 00:12:52,639 --> 00:12:55,919 nor can they find out. 155 00:12:55,919 --> 00:13:02,919 We all began to lose track of this ownership on Tuesday, the 26th of July, 1983. 156 00:13:03,799 --> 00:13:10,799 Only a small group of elite insiders knows who these owners or controlling agents are 157 00:13:10,799 --> 00:13:14,560 in present time. 158 00:13:14,559 --> 00:13:17,919 Does this sound like a Thomas Jefferson operation? 159 00:13:17,919 --> 00:13:22,599 Does this so-called Federal Reserve system sound like something Ben Franklin, the man 160 00:13:22,599 --> 00:13:28,319 who invented the pot-bellied stove and co-authored the Constitution, would set up? 161 00:13:28,319 --> 00:13:34,919 Or does this system sound more like something George Orwell would write about in his... 162 00:13:34,919 --> 00:13:36,919 book, 1984? 163 00:13:36,919 --> 00:13:39,919 Again, G. Edward Griffin. 164 00:13:39,919 --> 00:13:44,879 In those days, there was a great deal of concern among the American people about the 165 00:13:44,879 --> 00:13:51,879 concentration of financial power in the hands of a few very wealthy and powerful financial 166 00:13:54,279 --> 00:13:56,559 interests in Wall Street. 167 00:13:56,559 --> 00:13:59,959 They called this the Money Trust. 168 00:13:59,959 --> 00:14:04,639 And the cry in those days was to break the grip of the Money Trust. 169 00:14:04,639 --> 00:14:10,000 And one of the primary purposes of the Federal Reserve Act, as it was promoted to... 170 00:14:10,000 --> 00:14:15,480 people, was just that, to break the grip of the Money Trust. 171 00:14:15,480 --> 00:14:20,000 They were going to write a law that was going to take the power away from these people and 172 00:14:20,000 --> 00:14:24,360 put it in the hands of their trustworthy politicians. 173 00:14:24,360 --> 00:14:28,120 Put it in the hands of the people through the electoral process. 174 00:14:28,120 --> 00:14:32,519 That was the propaganda behind the Federal Reserve system. 175 00:14:32,559 --> 00:14:35,240 So what's the purpose of the secrecy? 176 00:14:35,240 --> 00:14:41,100 It's because when you look at the list of these people who went, they were the Money 177 00:14:41,100 --> 00:14:42,779 Trust. 178 00:14:42,779 --> 00:14:47,600 They were the representatives of the banks, J.P. Morgan, the Rockefellers, they... 179 00:14:47,600 --> 00:14:53,679 Kuhn-Loban Company, Warburgs in Germany and the Netherlands, and the Rothschilds in... 180 00:14:53,679 --> 00:14:58,399 This was the Money Trust, not only of the United States, but of the world. 181 00:14:58,399 --> 00:15:02,399 Had that fact been known, who these people were that were drafting the Federal Reserve 182 00:15:02,399 --> 00:15:08,879 system, the trick would have been exposed and the public never would have adopted the 183 00:15:08,879 --> 00:15:12,840 Federal Reserve Act as in fact they did. 184 00:15:12,840 --> 00:15:17,720 When you think about the significance of the Federal Reserve Act being passed under those 185 00:15:17,720 --> 00:15:21,639 conditions, the American people didn't know, but it was banking interests that were behind 186 00:15:21,639 --> 00:15:22,639 it. 187 00:15:22,639 --> 00:15:25,720 Powerful banking interests because they wanted their assets protected. 188 00:15:25,720 --> 00:15:29,040 They wanted the Federal Reserve to be the lender of last resort. 189 00:15:29,040 --> 00:15:34,240 So if they had been loaning out and risking the money, these loans go bad, instead of 190 00:15:34,240 --> 00:15:37,600 having the market take care of this, they wanted bailout. 191 00:15:37,600 --> 00:15:42,040 And this is why it was a tremendous popular thing to do for the banks and of course the 192 00:15:42,040 --> 00:15:44,320 big business people who were borrowing the money. 193 00:15:44,320 --> 00:15:50,879 So it was very, very special interest directed and it was designed for the elite. 194 00:15:50,879 --> 00:15:53,720 And even today a lot of people don't quite understand that. 195 00:15:54,040 --> 00:15:58,879 It's an educational job as well outside of Washington, but hopefully someday people 196 00:15:58,879 --> 00:16:02,680 here in Washington, especially the members of the banking committee, will gain some 197 00:16:02,680 --> 00:16:07,960 interest in this subject because ultimately we will have to address it. 198 00:16:07,960 --> 00:16:11,519 Where does Congress get most of its funding? 199 00:16:11,519 --> 00:16:16,860 I would like to say from us, but I'm sure they have foreign investors that they also 200 00:16:16,860 --> 00:16:18,879 get their money from. 201 00:16:18,879 --> 00:16:20,360 Taxes. 202 00:16:20,360 --> 00:16:21,680 People. 203 00:16:21,680 --> 00:16:22,680 Government. 204 00:16:22,679 --> 00:16:23,679 Government. 205 00:16:32,120 --> 00:16:35,039 It gets it out of federal taxation of course. 206 00:16:35,039 --> 00:16:40,199 From taxes, but if you mean today, a great deal we're getting from China buying treasury 207 00:16:40,199 --> 00:16:41,199 bills. 208 00:16:41,199 --> 00:16:42,199 They print it. 209 00:16:42,199 --> 00:16:44,719 And can you elaborate on that? 210 00:16:44,719 --> 00:16:45,719 They have no funding. 211 00:16:45,719 --> 00:16:46,719 They have no money. 212 00:16:46,719 --> 00:16:47,719 It's all puff and mirrors. 213 00:16:47,719 --> 00:16:48,719 They have no money. 214 00:16:48,719 --> 00:16:49,719 It's all an illusion. 215 00:16:49,719 --> 00:16:52,599 There's not much in back of it. 216 00:16:53,240 --> 00:16:58,399 As we can see, the average American citizen has conflicting ideas as to where Congress 217 00:16:58,399 --> 00:17:00,080 gets its funding. 218 00:17:00,080 --> 00:17:05,480 In actuality, Congress gets most of it by borrowing it from the Federal Reserve. 219 00:17:05,480 --> 00:17:10,559 The Federal Reserve gets the so-called money by effectively printing it up. 220 00:17:10,559 --> 00:17:14,160 The whole process is known as the Mandrake mechanism. 221 00:17:14,160 --> 00:17:20,120 Thus, today's paper currency, far from the gold and silver coinage stipulated by the 222 00:17:20,119 --> 00:17:27,039 founders, is essentially created out of thin air. 223 00:17:27,039 --> 00:17:30,399 Most people are alarmed when they hear about the fact that the Fed can create money out 224 00:17:30,399 --> 00:17:34,359 of nothing and charge interest on it, so-called interest. 225 00:17:34,359 --> 00:17:35,759 It starts with Congress. 226 00:17:35,759 --> 00:17:41,039 Remember a moment ago I said that the Federal Reserve system was a partnership between a 227 00:17:41,039 --> 00:17:44,119 cartel and the federal government. 228 00:17:44,119 --> 00:17:49,679 Mr. Chairman, we've got to go vote and we want to thank you for being here with us... 229 00:17:50,120 --> 00:17:54,759 Well, if there's a partnership, there's a reason for the partners, both of them, to 230 00:17:54,759 --> 00:17:56,560 be in it or they wouldn't be. 231 00:17:56,560 --> 00:18:04,320 So why is the banking fraternity in this partnership and why are the politicians in... 232 00:18:04,320 --> 00:18:05,840 Congress needs more money. 233 00:18:05,840 --> 00:18:08,400 They always need more money. 234 00:18:08,400 --> 00:18:10,120 They like to spend money. 235 00:18:10,120 --> 00:18:11,799 That gets them elected. 236 00:18:11,799 --> 00:18:15,400 They don't like to raise taxes because that gets them unelected. 237 00:18:15,400 --> 00:18:17,600 The answer, of course, is that they borrow it. 238 00:18:17,599 --> 00:18:21,559 If you're not going to tax it from somebody, you can borrow it from somebody else. 239 00:18:21,559 --> 00:18:26,000 That's why we have government bonds and treasury notes and bills and so forth. 240 00:18:26,000 --> 00:18:29,759 We have what's called the national debt because they borrowed money to pay for... 241 00:18:29,759 --> 00:18:34,879 expenses that they don't want to pay for through taxes because that would be... 242 00:18:34,879 --> 00:18:40,119 So 30 days after they borrowed a billion dollars or 60 days, whatever the term on t... 243 00:18:40,119 --> 00:18:42,199 is, they have to pay that money back. 244 00:18:42,199 --> 00:18:46,319 Well, lo and behold, it turns out that the congressmen and the senators are still not 245 00:18:46,359 --> 00:18:51,639 taking in as much money in taxes as they are spending in benefits. 246 00:18:51,639 --> 00:18:54,960 So they don't have the money to repay the loan. 247 00:18:54,960 --> 00:18:56,159 So what do they do? 248 00:18:56,159 --> 00:18:58,480 Easy, borrow some more. 249 00:18:58,480 --> 00:19:03,019 Borrow enough to pay back the original loan plus a little bit more to keep them in... 250 00:19:03,019 --> 00:19:08,419 So this process goes on and on and on and that's why we have the national debt growing 251 00:19:08,419 --> 00:19:11,319 and growing and growing. 252 00:19:11,319 --> 00:19:15,439 The Federal Reserve enters the picture at this stage because you see they can never... 253 00:19:15,559 --> 00:19:17,360 enough from the private sector. 254 00:19:17,360 --> 00:19:24,080 There's never enough existing money out there for the politicians to borrow. 255 00:19:24,080 --> 00:19:25,080 So what do they do? 256 00:19:25,080 --> 00:19:29,360 They go to the Federal Reserve system and by agreement, remember this is their partner 257 00:19:29,360 --> 00:19:36,519 now, the Federal Reserve system agrees literally to create the money that they're... 258 00:19:36,519 --> 00:19:38,200 lend to the government. 259 00:19:38,200 --> 00:19:43,580 It's not really a lending at all as you can see, but they use the old traditional words 260 00:19:43,699 --> 00:19:48,379 of lending it to the government when in fact all they're doing is just printing it for 261 00:19:48,379 --> 00:19:49,379 the government. 262 00:19:49,379 --> 00:19:52,779 They're creating it for the government and then they call it a loan. 263 00:19:52,779 --> 00:19:56,899 Of course they don't print it all because most of it's checkbook money, but... 264 00:19:56,899 --> 00:20:01,259 the process is the same as if they had just turned on the printing presses and printed 265 00:20:01,259 --> 00:20:04,500 all this money and gave it to the Federal Government. 266 00:20:04,500 --> 00:20:11,500 So now once the Federal Reserve system creates this money out of nothing, literal... 267 00:20:11,740 --> 00:20:17,500 fresh money into the society, into the economy and that's how the money supply ke... 268 00:20:17,500 --> 00:20:19,480 and growing and growing. 269 00:20:19,480 --> 00:20:21,420 What about the banking partner? 270 00:20:21,420 --> 00:20:23,339 What's in it for them? 271 00:20:23,339 --> 00:20:30,339 I come in and I give the bank say a hundred ounces of gold and the bank offers me some 272 00:20:30,619 --> 00:20:31,619 interest payment on that. 273 00:20:31,619 --> 00:20:35,940 They're going to pay me three percent interest and they're going to take that... 274 00:20:35,940 --> 00:20:39,420 of gold and they're going to lend it out at five percent. 275 00:20:39,460 --> 00:20:41,980 That's how they make their money, the two percent spread. 276 00:20:41,980 --> 00:20:47,380 Now that's fine so far because I know that gold is in there, it's being loaned out and 277 00:20:47,380 --> 00:20:50,820 someday I'm getting two percent interest and someday I can ask for that principal back. 278 00:20:50,820 --> 00:20:54,259 It might be six months, it might be a year, whatever it is. 279 00:20:54,259 --> 00:20:57,460 Where the trick comes into this is the bank says not only are we going to lend that money 280 00:20:57,460 --> 00:21:04,460 out but we're going to allow you, Mr. Depositor, to draw on that money right now. 281 00:21:05,100 --> 00:21:08,819 Which means that they can't possibly be saying that I can draw one hundred percent... 282 00:21:08,819 --> 00:21:11,860 deposit when they've also loaned out one hundred percent of that deposit. 283 00:21:11,860 --> 00:21:14,140 Now maybe they don't loan out one hundred percent, maybe they don't loan out ninety 284 00:21:14,140 --> 00:21:15,860 percent or eighty percent, whatever it is. 285 00:21:15,860 --> 00:21:18,600 And that's the fractional reserve concept. 286 00:21:18,600 --> 00:21:24,019 They don't have enough reserves to pay out all of these obligations that they've made 287 00:21:24,019 --> 00:21:28,460 especially with respect to paper currency because usually that's the way it worked. 288 00:21:28,460 --> 00:21:29,579 Now why do they do this? 289 00:21:29,579 --> 00:21:32,140 Well they do this because they make money. 290 00:21:32,140 --> 00:21:37,020 If I can loan out essentially more than I have in my reserves, by that difference I'm 291 00:21:37,020 --> 00:21:39,860 increasing interest payments. 292 00:21:39,860 --> 00:21:45,700 So the bankers are beneficiaries of this and obviously the first lender, the person that 293 00:21:45,700 --> 00:21:48,540 receives that money is a beneficiary because he's getting money he wouldn't have gotten 294 00:21:48,540 --> 00:21:51,100 otherwise even though he has to pay interest on it. 295 00:21:51,100 --> 00:21:55,820 But then what happens down the line, this is the fascinating part about it, the market 296 00:21:55,820 --> 00:22:02,100 has set prices and wages on the basis of what it believes is the total amount of money... 297 00:22:02,099 --> 00:22:04,699 in circulation. 298 00:22:04,699 --> 00:22:09,259 Along come the banks and they start generating new money that the market doesn... 299 00:22:09,259 --> 00:22:13,659 It finds out about it because the money goes into circulation. 300 00:22:13,659 --> 00:22:15,859 So I'm the first user of this money. 301 00:22:15,859 --> 00:22:18,939 I've just received the loan from the bank, I'm going to go out and buy cement with it. 302 00:22:18,939 --> 00:22:24,740 And when I buy cement with it, cement is at the original market price. 303 00:22:24,740 --> 00:22:30,619 Now as that money starts percolating into society, the market realizes there's more... 304 00:22:30,659 --> 00:22:31,899 there was before. 305 00:22:31,899 --> 00:22:37,259 More money chasing the same amount of goods means the prices of goods go up. 306 00:22:37,259 --> 00:22:42,579 So eventually somewhere down the line that same cement that I just bought for $5 a pound 307 00:22:42,579 --> 00:22:46,539 is going to cost someone else $6 a pound. 308 00:22:46,539 --> 00:22:51,699 Now if he buys that cement at $6 a pound before his income has increased... 309 00:22:51,699 --> 00:22:53,339 happening to his real wealth? 310 00:22:53,339 --> 00:22:54,339 He's losing real wealth. 311 00:22:54,339 --> 00:22:59,819 His costs have gone up, his income stays the same, his real wealth is decreased. 312 00:22:59,819 --> 00:23:02,539 Whose real wealth has increased in this transaction? 313 00:23:02,539 --> 00:23:06,500 Mine and the banks because we got the full value of the money right at the beginning. 314 00:23:06,500 --> 00:23:12,339 So this system transfers wealth somehow, you can't exactly follow it, but the principle 315 00:23:12,339 --> 00:23:18,099 is there, transfers wealth from society to the creators of money. 316 00:23:18,099 --> 00:23:24,039 For every billion dollars that's put into the banks, I as a commercial banker can create 317 00:23:24,039 --> 00:23:30,359 an additional $9 billion and push them out into the economy as loans. 318 00:23:30,359 --> 00:23:36,920 Now that $9 billion based on the one billion, which itself was created out of nothing, 319 00:23:36,920 --> 00:23:40,839 all of it is just fiat money, it's created out of nothing, but the commercial banks get 320 00:23:40,839 --> 00:23:43,960 the bigger end of the deal as you can see. 321 00:23:43,960 --> 00:23:50,359 They can create nine for the private sector called loans, and these are genuine loans, 322 00:23:50,359 --> 00:23:52,519 and that is where our money comes from. 323 00:23:52,519 --> 00:23:54,359 That is how money is created. 324 00:23:54,359 --> 00:23:57,740 Every bit of it is created in this fashion. 325 00:23:57,740 --> 00:24:03,759 Every bit of it is based upon debt, and that debt creates money that literally has nothing 326 00:24:03,759 --> 00:24:05,759 behind it at all. 327 00:24:05,759 --> 00:24:12,519 Now this is how money is created in the Western world, and it's an amazing story. 328 00:24:12,519 --> 00:24:19,680 Only a very few people at the top know how money really comes into existence. 329 00:24:19,680 --> 00:24:25,299 Most estimates say that a network of about 7,000 people, mostly located in large urban 330 00:24:25,299 --> 00:24:30,799 areas worldwide, facilitate the acquisition and control of the voting stock of these 331 00:24:30,799 --> 00:24:33,360 banks by proxy. 332 00:24:33,360 --> 00:24:38,820 The marching orders, as to where literally hundreds of trillions of dollars of monetary 333 00:24:38,820 --> 00:24:45,060 power will be directed, are believed to be given by the 7,000 on instructions from an 334 00:24:45,659 --> 00:24:50,419 insider control group we estimate to number about 300. 335 00:24:50,419 --> 00:24:56,579 Of the 300, many are related to one another by blood, marriage, and business ties, and 336 00:24:56,579 --> 00:25:02,500 it would seem have family ties to the original robber barons of the Industrial... 337 00:25:02,500 --> 00:25:05,659 at the turn of the 19th century. 338 00:25:05,659 --> 00:25:11,139 More importantly, however, most of the 7,000 involved in this group may be largely unaware 339 00:25:11,139 --> 00:25:14,460 of their negative effects on society. 340 00:25:14,460 --> 00:25:20,340 They may sincerely, but naively, believe they are simply doing good. 341 00:25:20,340 --> 00:25:27,340 Nevertheless, now talking about the 300 who form the inner controlling body, we estimate 342 00:25:27,340 --> 00:25:31,500 that about 50 of this group are anything but naive. 343 00:25:31,500 --> 00:25:37,620 Thus, having successfully established the ultimate money-making machine, the Federal 344 00:25:37,620 --> 00:25:44,420 Reserve System, this nefarious cartel of tyrants is in a position to literally acqu... 345 00:25:44,900 --> 00:25:51,900 over the assets of the world, deprive the people of all their prosperity, as Thomas 346 00:25:52,700 --> 00:25:55,380 Jefferson would say. 347 00:25:55,380 --> 00:26:00,539 This is the calculus of the situation, and this is exactly what they are doing, with 348 00:26:00,539 --> 00:26:06,580 a little help from their virtuous, but ignorant servants in Congress, as John Ada... 349 00:26:06,580 --> 00:26:07,660 say. 350 00:26:07,660 --> 00:26:14,660 Yes, the Founding Fathers must surely be rolling over in their graves. 351 00:26:14,660 --> 00:26:20,259 The original intent of the Constitution is spelled out quite clearly, not only in the 352 00:26:20,259 --> 00:26:24,259 document, but in the immediate history that surrounds its formation. 353 00:26:24,259 --> 00:26:28,220 Now, Article 1, Section 10 Clause 1 limits the powers of the state. 354 00:26:28,220 --> 00:26:30,500 It says, no state shall coin money. 355 00:26:30,500 --> 00:26:32,380 States had coin money. 356 00:26:32,380 --> 00:26:33,580 Stops them from doing it. 357 00:26:33,580 --> 00:26:36,860 No state shall emit bills of credit. 358 00:26:36,859 --> 00:26:39,019 That's one of those peculiar words. 359 00:26:39,019 --> 00:26:40,899 If you were living in that time, you knew what it meant. 360 00:26:40,899 --> 00:26:44,579 It meant, essentially, what we call paper money. 361 00:26:44,579 --> 00:26:48,819 No state shall emit bills of credit, which means that a state itself cannot create paper 362 00:26:48,819 --> 00:26:52,139 money, and then it can't do it indirectly by setting up some kind of a bank that's 363 00:26:52,139 --> 00:26:54,019 controlled by the state. 364 00:26:54,019 --> 00:26:59,899 Third provision in that clause is, no state shall make anything but gold and silver coin, 365 00:26:59,899 --> 00:27:01,539 a tender in payment of debts. 366 00:27:02,220 --> 00:27:08,220 Notice the language, no state shall make anything but gold and silver coin, meaning... 367 00:27:08,220 --> 00:27:13,579 can and should make gold and silver coin a tender in payment of debts. 368 00:27:13,579 --> 00:27:19,339 But the historical background shows absolutely clearly that paper money was no... 369 00:27:19,339 --> 00:27:23,059 be allowed at the national level or the state level. 370 00:27:23,059 --> 00:27:30,059 The very interesting point here is that the same people who wrote the Constitution had 371 00:27:30,099 --> 00:27:35,059 been, to a large extent, in control of the states and of the Congress under the August 372 00:27:35,059 --> 00:27:37,740 of Confederation during the War of Independence. 373 00:27:37,740 --> 00:27:41,460 These people had emitted large amounts of paper money. 374 00:27:41,460 --> 00:27:43,139 The states did it. 375 00:27:43,139 --> 00:27:44,419 Congress did it. 376 00:27:44,419 --> 00:27:48,259 That Congress did was called Continental Currency, and most people are familiar wit... 377 00:27:48,259 --> 00:27:50,259 not worth a continental. 378 00:27:50,259 --> 00:27:54,579 Paper money depreciated so radically in value that it was essentially worthless. 379 00:27:54,579 --> 00:27:58,659 Those same people looked back at what they had done only a few years earlier and said, 380 00:27:58,660 --> 00:28:00,500 we're not going to do this anymore. 381 00:28:00,500 --> 00:28:02,220 The inflation isn't rising prices. 382 00:28:02,220 --> 00:28:07,740 The inflation is the government's program of increasing the supply of money, which 383 00:28:07,740 --> 00:28:11,620 devalues the currency and that causes the prices to go up. 384 00:28:11,620 --> 00:28:15,420 Inflation, that is the destruction of money, eventually wipes out the middle class. 385 00:28:15,420 --> 00:28:20,620 The best example in the 20th century being what we saw happen in Germany. 386 00:28:20,620 --> 00:28:24,140 As the runaway inflation came, the middle class got wiped out. 387 00:28:24,140 --> 00:28:27,660 In the early stages, of course, somebody benefited. 388 00:28:27,660 --> 00:28:28,660 It hurts everybody. 389 00:28:28,660 --> 00:28:32,980 But in this country right now, we have constant insidious inflation. 390 00:28:32,980 --> 00:28:37,860 So there is a transfer of wealth from the poor and the middle class to the wealthy. 391 00:28:37,860 --> 00:28:42,820 But because it affects the business cycle and causes prices to go up in general, who 392 00:28:42,820 --> 00:28:43,820 suffers the most? 393 00:28:43,820 --> 00:28:45,540 The people who can afford it the least. 394 00:28:45,540 --> 00:28:49,420 That people on fixed incomes, low middle income people, poor people. 395 00:28:49,420 --> 00:28:53,500 I think it especially hits hard low middle income people who are trying to make it on 396 00:28:54,339 --> 00:28:55,900 their own and won't go on the dole. 397 00:28:55,900 --> 00:28:59,900 Because their prices go up more and they're the first ones to lose their job when the 398 00:28:59,900 --> 00:29:01,539 business cycle turns down. 399 00:29:01,539 --> 00:29:05,579 The Federal Reserve, by increasing the credit, creates the boom part of the cycle. 400 00:29:05,579 --> 00:29:13,220 But then there's always the resulting downturn of the cycle when unemployment... 401 00:29:13,220 --> 00:29:18,940 It's almost impossible to believe that the all-powerful dominant media, what Bill... 402 00:29:19,019 --> 00:29:25,740 calls the elite media, would endlessly cover all these issues, yet be silent on the very 403 00:29:25,740 --> 00:29:29,299 subject that is common to all of them. 404 00:29:29,299 --> 00:29:36,460 Money and the entity that creates and manages the so-called money supply, the Federal... 405 00:29:36,460 --> 00:29:38,500 System. 406 00:29:38,500 --> 00:29:40,740 Why is this? 407 00:29:40,740 --> 00:29:48,900 One can never watch enough television. 408 00:29:48,940 --> 00:29:54,620 There has been a tremendous concentration of the mass media over the last 50 years. 409 00:29:54,620 --> 00:29:57,900 From over 100 companies to six companies. 410 00:29:57,900 --> 00:30:03,980 Back in the 1934 Communications Act, each media company was only allowed to own a... 411 00:30:03,980 --> 00:30:07,300 of stations and they weren't allowed to have cross ownership. 412 00:30:07,300 --> 00:30:10,820 They couldn't allow, own all the media in your town. 413 00:30:10,820 --> 00:30:15,220 Now they can own more and more because congressmen who've gotten elected as a res... 414 00:30:15,220 --> 00:30:17,500 mass media have given them more and more. 415 00:30:17,500 --> 00:30:22,220 That means very few people have the right to speak to us over television, over radio 416 00:30:22,220 --> 00:30:26,299 through the New York Times, the LA Times, the different news media. 417 00:30:26,299 --> 00:30:30,859 The whole purpose of the First Amendment is to guarantee that we have more, not less 418 00:30:30,859 --> 00:30:31,859 speech. 419 00:30:31,859 --> 00:30:36,779 However, when you start to get down and say only a few people can put up their soapbox, 420 00:30:36,779 --> 00:30:41,619 only a few people can address the audience, suddenly you've limited the amount of speech. 421 00:30:41,619 --> 00:30:44,099 Now that's the government control of speech. 422 00:30:44,099 --> 00:30:47,500 On the other hand, when those few people recognize that the government is the one 423 00:30:47,500 --> 00:30:52,299 that's licensed them to speak, they start to act in a way that's not going to jeopardize 424 00:30:52,299 --> 00:30:54,179 that relationship. 425 00:30:54,179 --> 00:30:59,059 Could this be one of the reasons any critical reporting of universally important issues, 426 00:30:59,059 --> 00:31:04,619 such as the Federal Reserve, have been cut out of the public debate for so long? 427 00:31:04,619 --> 00:31:13,019 As Ted Turner relates in his article, My Beef with Big Media, why would major media... 428 00:31:13,019 --> 00:31:20,259 that control the information flow to 95% of the American citizens, fail to report on 429 00:31:20,259 --> 00:31:25,859 the detrimental activities of the Federal Reserve System, a government sanctioned, 430 00:31:25,859 --> 00:31:34,180 quasi-private banking cartel that literally controls 100% of the money flow to the same 431 00:31:34,180 --> 00:31:40,779 citizens, as well as the lion's share of the money flow to Congress itself? 432 00:31:41,740 --> 00:31:46,420 The amount of money it costs today to run for Congress, or even to run for President, 433 00:31:46,420 --> 00:31:48,740 is obscene. 434 00:31:48,740 --> 00:31:53,619 And most of that money goes into television commercials and spots and all of the mass 435 00:31:53,619 --> 00:32:00,579 media advertising that needs to be done to reach the 295 million Americans, a vast... 436 00:32:00,579 --> 00:32:01,579 of people. 437 00:32:01,579 --> 00:32:06,740 And when that person wins, if the media has supported him, naturally he wants to pay them 438 00:32:06,740 --> 00:32:07,740 back. 439 00:32:07,740 --> 00:32:13,539 We may not think of that consciously, but in appropriating licenses and expanding... 440 00:32:13,539 --> 00:32:19,299 and allowing them to own more than one media outlet, that's exactly what happens. 441 00:32:19,299 --> 00:32:24,420 As a result, the number of media companies, as we said before, has concentrated in a 442 00:32:24,420 --> 00:32:26,259 few hands. 443 00:32:26,259 --> 00:32:30,940 And unfortunately, Congress and the media work together to present an image to the... 444 00:32:30,940 --> 00:32:36,579 people that does not always include every aspect of the truth. 445 00:32:36,579 --> 00:32:44,059 This reciprocity, this in cahoots process, has obscured many of the more important... 446 00:32:44,059 --> 00:32:46,059 to the American people. 447 00:32:46,059 --> 00:32:51,179 And there's no more important issue than the issue of fiat money. 448 00:32:51,179 --> 00:32:57,720 When you give men the power to create money out of nothing, you shouldn't be surprised 449 00:32:57,720 --> 00:33:01,819 if they turn around and create money out of nothing, because that's what they're supposed 450 00:33:01,819 --> 00:33:02,819 to do. 451 00:33:03,059 --> 00:33:07,339 Now the underlying philosophy is that, well, we'll be very conservative about it. 452 00:33:07,339 --> 00:33:09,019 We won't run rampant. 453 00:33:09,019 --> 00:33:12,139 We won't abuse this power, would we? 454 00:33:12,139 --> 00:33:16,059 So we give them blindly this power to create money out of nothing, because we trust them 455 00:33:16,059 --> 00:33:19,579 to use this power wisely. 456 00:33:19,579 --> 00:33:24,500 Nowhere in history has this ever been a justified trust. 457 00:33:24,500 --> 00:33:29,899 Every time man has had that power, and this started back in antiquity, those with the 458 00:33:29,980 --> 00:33:35,820 power have abused it, and they have created more and more and more money at a rate much 459 00:33:35,820 --> 00:33:41,380 faster than the expansion of goods and services, which are being produced by the... 460 00:33:41,380 --> 00:33:43,860 side of the economy. 461 00:33:43,860 --> 00:33:48,400 Now if the goods and services were growing at a rate which is exactly the same as the 462 00:33:48,400 --> 00:33:54,860 money supply, then the purchasing power of the monetary unit would remain constant. 463 00:33:54,859 --> 00:34:03,379 In ancient Rome, if you had a one ounce gold coin, that would be the cost of a nice toga, 464 00:34:03,379 --> 00:34:07,339 a handcrafted belt, and a pair of sandals. 465 00:34:07,339 --> 00:34:14,179 Today, thousands of years later, if you have a one ounce gold coin, and you convert that 466 00:34:14,179 --> 00:34:19,859 into Federal Reserve notes, you can walk into a store and buy a nice suit, a handcrafted 467 00:34:19,859 --> 00:34:22,859 belt, and a pair of shoes. 468 00:34:22,860 --> 00:34:28,700 The real price of those items, and all items for that matter, throughout history does 469 00:34:28,700 --> 00:34:36,180 not change when measured in terms of something of intrinsic value, such as gold... 470 00:34:36,180 --> 00:34:41,220 because those things take human effort to produce as well as the belt, the toga, and 471 00:34:41,220 --> 00:34:42,220 the sandals. 472 00:34:42,220 --> 00:34:47,620 Both of them take human effort to produce, and that's why they maintain value with each 473 00:34:47,620 --> 00:34:48,900 other. 474 00:34:49,099 --> 00:34:54,300 Once you break that away, and you give men the power to expand the money supply without 475 00:34:54,300 --> 00:34:58,740 that discipline, they're going to expand the money supply faster than the increase 476 00:34:58,740 --> 00:35:03,579 in goods and services, and then you're going to have this difference in purchasing power. 477 00:35:03,579 --> 00:35:04,579 We call it inflation. 478 00:35:04,579 --> 00:35:14,059 Well, it's always politically popular to impose financial burdens on somebody else. 479 00:35:14,059 --> 00:35:18,320 It tends to be politically difficult to impose financial burdens on someone who's... 480 00:35:18,360 --> 00:35:23,960 alongside of you, because they tend to have votes, and they tend to have representatives 481 00:35:23,960 --> 00:35:25,880 who will take their position. 482 00:35:25,880 --> 00:35:31,000 It's fairly easy to impose a financial burden on the future, because the future generation 483 00:35:31,000 --> 00:35:35,780 tends not to have any votes or representation at all in the present. 484 00:35:35,780 --> 00:35:40,440 As soon as you start talking about monetization of debt, where the banks come... 485 00:35:40,440 --> 00:35:44,539 governmental debt with new money that the banks have created through this special... 486 00:35:44,539 --> 00:35:47,460 they have of creating money in the Federal Reserve System. 487 00:35:47,460 --> 00:35:53,880 The redistribution of wealth that takes place through that process, most people don't... 488 00:35:53,880 --> 00:35:57,219 It happens through depreciation of currency, and the depreciation of currency usually... 489 00:35:57,219 --> 00:36:01,460 to increases in prices, which the average person calls inflation. 490 00:36:01,460 --> 00:36:03,539 Inflation is really the increase in the money supply. 491 00:36:03,539 --> 00:36:06,579 The price increases, a consequence of that. 492 00:36:06,579 --> 00:36:09,420 But the average person doesn't understand how this happens, and he's going to blame 493 00:36:09,420 --> 00:36:13,599 gold speculators in Switzerland, he's going to blame greedy unions, he's going to blame 494 00:36:13,599 --> 00:36:18,159 the price gouging business, he's going to blame everybody but Congress and the banking 495 00:36:18,159 --> 00:36:19,159 system. 496 00:36:19,159 --> 00:36:28,159 So it's easy, politically, through monetization of debt, to expand borrowing... 497 00:36:28,159 --> 00:36:29,159 levels. 498 00:36:29,159 --> 00:36:32,159 Now, why is that tyrannous? 499 00:36:32,159 --> 00:36:35,159 Well, at a certain level it's tyrannous. 500 00:36:35,159 --> 00:36:39,159 The definition of tyranny is the exercise of a power that no one should be allowed to 501 00:36:39,159 --> 00:36:41,920 exercise. 502 00:36:41,920 --> 00:36:45,519 And it's tyrannous because no one should be allowed to exercise a power that puts 503 00:36:45,519 --> 00:36:50,240 burdens on people that are not allowed an opportunity to be heard, an opportunity to 504 00:36:50,240 --> 00:36:53,240 vote, an opportunity to have some kind of a say. 505 00:36:53,240 --> 00:36:56,039 Granted, to some extent you're going to have to do that in the nature of government as 506 00:36:56,039 --> 00:37:01,440 long as you have borrowing, but beyond a certain point it becomes tyrannous. 507 00:37:01,440 --> 00:37:07,740 And it's beyond that point that the present system allows our political structure to move 508 00:37:07,740 --> 00:37:10,360 too easily. 509 00:37:10,360 --> 00:37:13,559 How much, take for instance, how much is the purchasing power of Federal Reserve notes 510 00:37:13,559 --> 00:37:15,120 lost since World War II? 511 00:37:15,120 --> 00:37:16,120 About 90%. 512 00:37:16,120 --> 00:37:20,039 You think that hasn't had some consequence in terms of redistribution of wealth, in terms 513 00:37:20,039 --> 00:37:21,320 of the way the economy has developed? 514 00:37:21,320 --> 00:37:22,519 Of course it has. 515 00:37:22,519 --> 00:37:28,519 The average person doesn't see it, he can't follow the lines of cause and effect, but 516 00:37:28,519 --> 00:37:34,039 it's there and his life is quite a bit different from what it would have been if... 517 00:37:34,039 --> 00:37:35,039 occurred. 518 00:37:35,039 --> 00:37:36,720 Purchasing power? 519 00:37:36,720 --> 00:37:38,079 Monetization of debt? 520 00:37:38,079 --> 00:37:39,420 Inflation? 521 00:37:39,420 --> 00:37:41,740 What do we mean by all these terms? 522 00:37:41,740 --> 00:37:46,440 Terms we may have heard many times, but still fail to connect the dots. 523 00:37:46,440 --> 00:37:47,440 Are you confused? 524 00:37:47,440 --> 00:37:50,700 If so, you're not alone. 525 00:37:50,700 --> 00:37:56,579 Inflation I think is a bad word because really we think of inflation as rising... 526 00:37:56,579 --> 00:37:59,860 But in reality what's happening, prices are not going up. 527 00:37:59,860 --> 00:38:04,460 It's that the value of the dollar or the monetary unit is going down. 528 00:38:04,460 --> 00:38:08,860 That's what's really happening if we understand the process. 529 00:38:09,260 --> 00:38:11,099 It's a tax therefore. 530 00:38:11,099 --> 00:38:17,039 Our lost purchasing power, what we have to pay more for a bag of groceries today than 531 00:38:17,039 --> 00:38:23,420 we did five years ago, comes out of our pocket, comes out of our earning capacity. 532 00:38:23,420 --> 00:38:29,240 That is value which we should have, but it's been taken from us through a process that 533 00:38:29,240 --> 00:38:34,539 we call inflation, but in reality it's a hidden tax. 534 00:38:34,539 --> 00:38:39,739 Inflation is the result of being able to create money out of nothing, and that is 535 00:38:39,739 --> 00:38:43,219 the power we have given to the Federal Reserve System. 536 00:38:43,219 --> 00:38:49,779 Therefore we can say that the Federal Reserve System is the agency of a hidden tax called 537 00:38:49,779 --> 00:38:52,779 inflation. 538 00:38:52,779 --> 00:38:58,659 Since the early 1900s, almost no one talks about the country's banking system anymore. 539 00:38:58,659 --> 00:38:59,659 What happened? 540 00:38:59,659 --> 00:39:02,940 There was a shooting, then there was nothing. 541 00:39:03,260 --> 00:39:09,500 Our money, like water, is one of the most important commodities we have. 542 00:39:09,500 --> 00:39:16,639 More than that, the quality of our money affects the productivity of every man, wom... 543 00:39:16,639 --> 00:39:19,500 in America. 544 00:39:19,500 --> 00:39:24,619 As time goes on, people figure out better ways of doing things, better ways of making 545 00:39:24,619 --> 00:39:27,780 products, cheaper and faster. 546 00:39:27,780 --> 00:39:33,060 For instance, one farmer can now grow food for thousands of people, whereas he used 547 00:39:33,060 --> 00:39:35,660 to be able to feed only his family. 548 00:39:35,660 --> 00:39:41,140 Thus, everything should be getting cheaper, because the supply of everything has been 549 00:39:41,140 --> 00:39:44,340 growing faster than the demand. 550 00:39:44,340 --> 00:39:48,580 This is true even though the population has been growing as well. 551 00:39:48,580 --> 00:39:54,820 Unfortunately, this is not what we observe, with the exception of a few industries, like 552 00:39:54,820 --> 00:40:00,260 the computer industry and products we import from places like China. 553 00:40:00,260 --> 00:40:07,059 It seems that almost everything is getting more expensive, but oftentimes cheaper in 554 00:40:07,059 --> 00:40:08,059 quality. 555 00:40:08,059 --> 00:40:10,940 How can this be? 556 00:40:10,940 --> 00:40:16,980 Over the decades, the productive energy of society seems to be getting siphoned off. 557 00:40:16,980 --> 00:40:26,139 It's hard to predict, but I certainly think it's possible. 558 00:40:26,139 --> 00:40:32,820 I think the financial bubble worldwide is something we have never experienced before. 559 00:40:32,820 --> 00:40:34,579 We've had a taste of that. 560 00:40:34,579 --> 00:40:40,059 But Alan Greenspan, in one way, is a genius, and in another way, he is an unbelievable 561 00:40:40,059 --> 00:40:41,059 threat to us. 562 00:40:42,059 --> 00:40:49,059 In a technical fashion, he's been able to keep this system of inflation together longer 563 00:40:49,059 --> 00:40:54,219 than anybody else has been able to, especially in this last go-around from 200... 564 00:40:54,219 --> 00:40:58,099 With the collapse of the NASDAQ bubble, we really didn't have much of a recession,... 565 00:40:58,099 --> 00:41:04,259 he immediately started inflating massively, taking interest rates down to 1 percent. 566 00:41:04,259 --> 00:41:08,519 Now of course, he's a little bit frightened about the bubble, and he's curtailing credit 567 00:41:08,599 --> 00:41:14,079 to some degree, but the dollar has become the gold of the world. 568 00:41:14,079 --> 00:41:17,880 The World Central Banks have accepted the dollar as if it were gold. 569 00:41:17,880 --> 00:41:22,480 Greenspan claims that they have gotten the paper money to act as if it is gold, which 570 00:41:22,480 --> 00:41:27,320 I strongly disagree with, and all the hard money people disagree with. 571 00:41:27,320 --> 00:41:33,119 But I believe he's been capable of creating this huge financial bubble, and the world 572 00:41:33,119 --> 00:41:36,519 has not yet seen what may come of this. 573 00:41:36,519 --> 00:41:42,659 So I suspect that depending on when it comes and what we do, it could very well end up 574 00:41:42,659 --> 00:41:46,079 into a much worse situation than the Great Depression. 575 00:41:46,079 --> 00:41:50,039 But if the country decided, well, something has to be done, and we went to a gold... 576 00:41:50,039 --> 00:41:55,079 and limited the creation of credit, curtailed the power of the Fed, I think it would iron 577 00:41:55,079 --> 00:41:56,880 out all our difficulties. 578 00:41:56,880 --> 00:42:04,880 When Argentina periodically just quit inflating, and tied their currency to even... 579 00:42:04,880 --> 00:42:11,000 price inflation went from hundreds of percent per year down to 2% or 3%, so it's rather 580 00:42:11,000 --> 00:42:12,000 rapid. 581 00:42:12,000 --> 00:42:13,880 So you would see an immediate benefit. 582 00:42:13,880 --> 00:42:18,480 You would iron out the severe swings in the business cycle, the price problems would 583 00:42:18,480 --> 00:42:23,519 be diminished, but the one thing we'd have to give up, which to me would be a benefit, 584 00:42:23,519 --> 00:42:27,559 government would have to curtail spending, because they can't tax the people enough 585 00:42:27,559 --> 00:42:29,280 to pay for all those bills. 586 00:42:29,280 --> 00:42:30,800 So we would have to curtail our spending. 587 00:42:30,800 --> 00:42:35,400 So that would be, to me, a tremendous boost to the American people and to the economy. 588 00:42:35,400 --> 00:42:37,200 At the same time, we gave sound money. 589 00:42:37,200 --> 00:42:39,240 I mean, this would be fantastic. 590 00:42:39,240 --> 00:42:44,240 Within months, there would be some people who would suffer from the adjustment period, 591 00:42:44,240 --> 00:42:47,840 but it might be the people who have benefited so much over these years. 592 00:42:47,840 --> 00:42:52,080 But the average person, the poor person, the jobs would become available. 593 00:42:52,080 --> 00:42:54,660 So it would not take a long, long time. 594 00:42:54,660 --> 00:42:59,480 What would take a long time is if we refused to consider it, and the problems get worse, 595 00:42:59,719 --> 00:43:04,920 and we have a severe recession or depression and huge inflation, and we do all the wrong 596 00:43:04,920 --> 00:43:05,920 things. 597 00:43:05,920 --> 00:43:09,960 That is what we should work so hard against. 598 00:43:09,960 --> 00:43:12,320 We must get rid of the fiat money system. 599 00:43:12,320 --> 00:43:13,320 How do you do that? 600 00:43:13,320 --> 00:43:19,480 Well, the first step, of course, the big step, the biggest imaginable step, is for... 601 00:43:19,480 --> 00:43:22,360 to realize that they even have one. 602 00:43:22,360 --> 00:43:27,440 I mean, how many people walking up and down the streets that go into the polls each year 603 00:43:27,480 --> 00:43:32,119 and elect their leaders, how many people know that we have a fiat money system? 604 00:43:32,119 --> 00:43:37,280 How are we going to change that unless we have an understanding, an educational... 605 00:43:37,280 --> 00:43:38,880 at the electoral level? 606 00:43:38,880 --> 00:43:41,480 So this is where we have to start. 607 00:43:41,480 --> 00:43:46,880 Because so many people in the U.S. are now semi-illiterate, thanks to the... 608 00:43:46,880 --> 00:43:52,720 public school system, it may be possible to stimulate a discussion on the Federal Reserve 609 00:43:52,720 --> 00:43:56,639 only through films and TV shows. 610 00:43:56,639 --> 00:44:01,519 In many ways, film has replaced the written word for the masses. 611 00:44:01,519 --> 00:44:03,039 What is the Federal Reserve System? 612 00:44:03,039 --> 00:44:08,920 It's where they generate the money, and they keep the money, I think. 613 00:44:08,920 --> 00:44:16,920 Federal Reserve System is a banking structure owned by the banks and run by the government. 614 00:44:16,920 --> 00:44:19,599 No, I don't know what you're talking about. 615 00:44:19,599 --> 00:44:21,480 Okay, thank you. 616 00:44:21,480 --> 00:44:27,840 It's a system of balancing the flow of currency throughout the United States so t... 617 00:44:27,840 --> 00:44:32,280 need to have liquidity, they have it, and as they need to tighten up money, they tighten 618 00:44:32,280 --> 00:44:33,280 it up. 619 00:44:33,280 --> 00:44:40,240 Similar to what you had said earlier about having the reserves for when we go in a... 620 00:44:40,240 --> 00:44:45,360 or something, and you need to have that actual backing, not just the dollar curren... 621 00:44:45,360 --> 00:44:49,519 paper is paper, and if you don't have that gold or silver behind it, then it's just... 622 00:44:49,519 --> 00:44:50,519 to be paper. 623 00:44:50,559 --> 00:45:00,840 Oh, it was established in, if I guessed, I'm not sure, 1913 perhaps, to establish... 624 00:45:00,840 --> 00:45:06,119 in the American financial system. 625 00:45:06,119 --> 00:45:10,259 I don't know the answer to that. 626 00:45:10,259 --> 00:45:12,259 What is the system? 627 00:45:12,259 --> 00:45:16,559 It's a banking system that's run by the government. 628 00:45:16,599 --> 00:45:22,400 It's almost like a fourth branch, but it's run by the government and it's guaranteeing 629 00:45:22,400 --> 00:45:27,039 that banks will remain stable, and if they're not stable, they'll take it over. 630 00:45:27,039 --> 00:45:31,440 A way of backing up the money, I don't know. 631 00:45:31,440 --> 00:45:33,440 And what is the Federal Reserve System? 632 00:45:33,440 --> 00:45:39,759 Well, do you want Andrew Jackson's opinion of the Federal Reserve System or what? 633 00:45:39,759 --> 00:45:40,759 Your opinion. 634 00:45:40,759 --> 00:45:42,299 I like his. 635 00:45:42,299 --> 00:45:44,480 It's a bunch of organized crooks. 636 00:45:44,480 --> 00:45:45,480 Wow. 637 00:45:45,480 --> 00:45:49,199 Now that citizen is informed. 638 00:45:49,199 --> 00:45:54,480 Too bad everyone is not as aware of how far we have strayed from our founding principles. 639 00:45:54,480 --> 00:45:59,800 Well, the major problem you have, not only with the Federal Reserve System, but with 640 00:45:59,800 --> 00:46:05,760 any statutory structure that's unconstitutional, is it doesn't square wit... 641 00:46:05,760 --> 00:46:06,760 Supremacy Clause. 642 00:46:06,760 --> 00:46:12,400 The Constitution, which has the Constitution and laws passed in pursuance thereof, that 643 00:46:12,400 --> 00:46:14,680 constitutional laws are the Supreme Law of the land. 644 00:46:14,680 --> 00:46:18,160 So obviously you have a statute that doesn't square with the Constitution. 645 00:46:18,160 --> 00:46:19,160 It's void. 646 00:46:19,160 --> 00:46:21,340 It is not a law, in fact. 647 00:46:21,340 --> 00:46:27,440 So the question then arises, well, how does that square with the oath of office of... 648 00:46:27,440 --> 00:46:29,440 senators, judges? 649 00:46:29,440 --> 00:46:33,960 And the answer is it doesn't. 650 00:46:33,960 --> 00:46:39,320 That when they come face to face with a statute that is in contradiction of the... 651 00:46:39,320 --> 00:46:45,620 they are to treat the Constitution as the Supreme Law and treat that statute as void. 652 00:46:45,620 --> 00:46:46,840 So that's number one. 653 00:46:46,840 --> 00:46:50,039 Here we have a system, the Federal Reserve System, that has all of these constitutional 654 00:46:50,039 --> 00:46:54,960 problems and everyone is essentially looking in the opposite direction. 655 00:46:54,960 --> 00:46:57,860 So that doesn't square with the oath of office. 656 00:46:57,860 --> 00:47:04,440 And one would think that the President, being the head of the executive department, in... 657 00:47:04,440 --> 00:47:08,920 we find the Treasury, Department of Treasury, which interacts quite closely with the... 658 00:47:08,920 --> 00:47:13,119 Reserve, might have something direct to say about that. 659 00:47:13,119 --> 00:47:16,680 And then of course the President has a specific constitutional duty to take care... 660 00:47:16,680 --> 00:47:22,079 laws be faithfully executed and the Supreme Law of the land is the Constitution. 661 00:47:22,079 --> 00:47:25,320 So you would expect on top of all of this that he would be saying, wait a minute, if 662 00:47:25,320 --> 00:47:29,519 the Constitution doesn't square with the Federal Reserve Act in one or more ways, t... 663 00:47:29,519 --> 00:47:33,300 be giving directives to the Secretary of the Treasury to take certain kinds of action 664 00:47:33,300 --> 00:47:34,300 to deal with that. 665 00:47:34,300 --> 00:47:36,420 And of course we see exactly the opposite. 666 00:47:36,420 --> 00:47:39,360 We see the Federal Reserve people, usually the Chairman of the Federal Reserve comes 667 00:47:39,360 --> 00:47:44,980 to Congress and he tells Congress directly, and usually tells the President at least... 668 00:47:44,980 --> 00:47:48,019 here's how monetary policy is going to be implemented. 669 00:47:48,019 --> 00:47:52,659 So the Federal Reserve is the tail that's wagging the dog when we have all of these 670 00:47:52,659 --> 00:47:55,720 questions and it may not be legitimate at all in whole or in part. 671 00:47:55,720 --> 00:47:59,380 If you want to see the way power goes in a system or the way the laws are corrupted, 672 00:47:59,380 --> 00:48:00,380 follow the money. 673 00:48:00,380 --> 00:48:05,420 And the Federal Reserve is a huge agency for the creation of money. 674 00:48:06,559 --> 00:48:11,760 If you study monetary history, throughout thousands of years you will find out that 675 00:48:11,760 --> 00:48:15,599 paper money has been tried many, many times and it never succeeds. 676 00:48:15,599 --> 00:48:17,300 It always ends badly. 677 00:48:17,300 --> 00:48:20,119 The question is, is when will the dollar end badly? 678 00:48:20,119 --> 00:48:22,700 Will it be next year or in five years or ten years? 679 00:48:22,700 --> 00:48:27,740 I'm convinced it will end unless we do the right things and that is restore soundness 680 00:48:27,740 --> 00:48:34,340 to the money, put restraints on our government, either strictly curtail the po... 681 00:48:34,340 --> 00:48:36,620 Fed or get rid of the Fed. 682 00:48:36,620 --> 00:48:38,500 That will be the only way you can save the dollar. 683 00:48:38,500 --> 00:48:43,260 But if we continue to do what we're doing now, we will eventually destroy the dollar. 684 00:48:43,260 --> 00:48:47,940 Throughout history, as governments grow, they limit the individual's rights. 685 00:48:47,940 --> 00:48:49,860 The same thing happened in the Roman Empire. 686 00:48:49,860 --> 00:48:54,460 We know this from history, but we also know it from Shakespeare's wonderful play, Julius 687 00:48:54,460 --> 00:48:55,559 Caesar. 688 00:48:55,559 --> 00:48:59,600 As we start moving toward a bigger and bigger government, it's going to mean that the... 689 00:48:59,600 --> 00:49:03,820 no longer has the right to own his property, the right to do what he wants, the right to 690 00:49:03,820 --> 00:49:09,420 live freely, the right to worship as he wants, the right to speak as he wants. 691 00:49:09,420 --> 00:49:13,160 The government starts to tell us what to do. 692 00:49:13,160 --> 00:49:16,260 Most of the time they think they're telling us what to do in their best interest, but 693 00:49:16,260 --> 00:49:20,580 the trouble is that government, as Adam Smith pointed out, John Locke pointed out, as the 694 00:49:20,580 --> 00:49:25,100 great thinkers of all time have always pointed out, don't really know what's righ... 695 00:49:25,100 --> 00:49:28,940 Government often makes the wrong choices because it doesn't understand the conseque... 696 00:49:29,420 --> 00:49:34,820 actions, so even when it doesn't desire to be a nefarious force, to be a dark force, 697 00:49:34,820 --> 00:49:37,099 it often is. 698 00:49:37,099 --> 00:49:41,579 The problem that we have is the result of legislation. 699 00:49:41,579 --> 00:49:45,900 Congress has to make fundamental changes in the present system. 700 00:49:45,900 --> 00:49:50,300 I don't think that it's possible to impose from the top down even the constitutional 701 00:49:50,300 --> 00:49:57,300 system because no one out there now is used to using gold and silver as their money. 702 00:50:01,100 --> 00:50:07,539 So what needs to be done is to create a competitive system of currencies. 703 00:50:07,539 --> 00:50:09,900 Leave the Federal Reserve System there. 704 00:50:09,900 --> 00:50:15,180 Slowly, over six months or a year, take away some of its legal privileges, its legal... 705 00:50:15,179 --> 00:50:19,980 privilege, its privilege as the only medium to pay government taxes and so forth and 706 00:50:19,980 --> 00:50:21,659 so on. 707 00:50:21,659 --> 00:50:26,859 And over on this side, create a gold and silver system. 708 00:50:26,859 --> 00:50:30,379 And then you will have competition between the two, the paper money price structure and 709 00:50:30,379 --> 00:50:32,099 the gold and silver price structure. 710 00:50:32,099 --> 00:50:33,099 And it will be a competition. 711 00:50:33,099 --> 00:50:38,299 What would happen is in this competition, gold and silver would win out because in... 712 00:50:38,299 --> 00:50:43,659 the free market usually wins out over governmental intervention and special... 713 00:50:43,659 --> 00:50:46,980 And that's the reason we have governmental intervention and special privileges, to keep 714 00:50:46,980 --> 00:50:48,339 the free market from winning out. 715 00:50:48,339 --> 00:50:52,299 That's why they go to government, to ask for legal privileges, alright? 716 00:50:52,299 --> 00:50:54,659 So that's the first problem. 717 00:50:54,659 --> 00:51:00,420 The second problem is I don't see that happening through Congress because there a... 718 00:51:00,420 --> 00:51:05,179 many loggerheads in Congress to get the things started. 719 00:51:05,179 --> 00:51:12,179 So my suggestion is that it begin in some state, a small state, a state that probably 720 00:51:12,500 --> 00:51:17,659 has a certain amount of its taxes that it can hypothecate to gold. 721 00:51:17,659 --> 00:51:20,739 And if the system worked and more and more people were asking, then the state could 722 00:51:20,739 --> 00:51:24,579 expand the areas of taxation and bring more people into it. 723 00:51:24,579 --> 00:51:29,699 And eventually you would, if it worked, you would see the whole state, the states... 724 00:51:29,699 --> 00:51:32,779 system, the government, state government, would be on a gold system. 725 00:51:32,779 --> 00:51:36,460 And then I would think as well you'd begin to see that spreading into the economy. 726 00:51:36,460 --> 00:51:41,219 Now if that were to happen, then I think other states would look at this and say, w... 727 00:51:41,299 --> 00:51:44,379 makes sense, let's begin to move in that direction. 728 00:51:44,379 --> 00:51:47,059 You could look at it essentially as a monetary insurance policy. 729 00:51:47,059 --> 00:51:51,699 They don't have to go beyond 10%, but 10% gold holding is perfectly prudent. 730 00:51:51,699 --> 00:51:55,619 And if something were to happen in the economy, if there were to be a monetary... 731 00:51:55,619 --> 00:52:00,019 crisis, then the state could rapidly expand the system because people would know how 732 00:52:00,019 --> 00:52:01,639 it operates. 733 00:52:01,639 --> 00:52:07,659 But the idea is to get the mechanism as it were on the table so that people can see 734 00:52:07,819 --> 00:52:11,500 how it works, why it works, what its benefits are. 735 00:52:11,500 --> 00:52:13,859 They don't have to be afraid of it. 736 00:52:13,859 --> 00:52:16,619 And arguments along the lines of there's not enough gold and silver in the world to 737 00:52:16,619 --> 00:52:23,619 do this will, you know, that kind of thing will be shown to be fallacious. 738 00:52:24,659 --> 00:52:30,179 Concerned citizens should be asking themselves questions like, why do you feel... 739 00:52:30,179 --> 00:52:36,659 on a treadmill that's constantly running faster? 740 00:52:36,659 --> 00:52:42,819 Why does it now take a two-income family to make ends meet, thus preempting women 741 00:52:42,819 --> 00:52:47,899 from their traditional role of providing stay-at-home child care? 742 00:52:47,899 --> 00:52:53,460 Why do we see a never-ending expansion of government, even though our elected officials 743 00:52:53,460 --> 00:52:57,199 endlessly promise to reduce it? 744 00:52:57,199 --> 00:53:02,420 Where does the government get the funds to wage perpetual war, yet fails to provide the 745 00:53:02,420 --> 00:53:07,180 basic protection citizens needed on September 11th? 746 00:53:07,180 --> 00:53:12,380 Why do rich people seem to be getting richer, while you and all your friends seem to be 747 00:53:12,380 --> 00:53:14,619 hardly making ends meet? 748 00:53:14,619 --> 00:53:19,019 Why does a first-class stamp now cost you nearly 40 cents when it used to cost only 749 00:53:19,019 --> 00:53:20,480 five cents? 750 00:53:20,480 --> 00:53:25,320 Should a 90 percent loss of purchasing power be tolerated? 751 00:53:25,320 --> 00:53:27,240 Where does it end? 752 00:53:27,240 --> 00:53:29,380 It's easy to see where we're headed. 753 00:53:29,380 --> 00:53:31,220 You don't have to be a rocket scientist. 754 00:53:31,219 --> 00:53:35,339 If you follow a graph, and you can see that there are points on this graph and they're 755 00:53:35,339 --> 00:53:40,699 going constantly in one direction, and they've been doing this for 50 years, you... 756 00:53:40,699 --> 00:53:44,159 to be a rocket scientist to see where it's headed. 757 00:53:44,159 --> 00:53:51,079 Where this graph is headed is for total destruction of our monetary system. 758 00:53:51,079 --> 00:53:57,459 Our money will be totally worthless, and it'll probably be reissued in the form of... 759 00:53:58,460 --> 00:54:02,860 currency, which will be equally worthless, but the value to these people is that once 760 00:54:02,860 --> 00:54:06,699 it's on an international basis, there's nowhere else to go. 761 00:54:06,699 --> 00:54:11,420 Right now, if you don't like American dollars, you can buy Japanese yen. 762 00:54:11,420 --> 00:54:14,320 If you don't like that, you can buy Swiss francs. 763 00:54:14,320 --> 00:54:17,900 If you don't like that, you can move to whatever currency seems to be having a lit... 764 00:54:17,900 --> 00:54:19,760 track record. 765 00:54:19,760 --> 00:54:24,760 Once there's an international monetary system in place, modeled completely and exactly... 766 00:54:24,840 --> 00:54:29,640 the Federal Reserve System, exactly the same, then there's no place else to go, folks. 767 00:54:29,640 --> 00:54:31,060 You've had it. 768 00:54:31,060 --> 00:54:32,560 That's where it's headed. 769 00:54:32,560 --> 00:54:39,560 If we don't turn this thing around, I think we're going to be living in a modern serfdom. 770 00:54:40,480 --> 00:54:44,960 We'll be serving masters, and they won't be living in the big castles that we can see, 771 00:54:44,960 --> 00:54:48,600 at least, and say, well, that's where the master lives up there, and we're tilling his 772 00:54:48,600 --> 00:54:50,600 field. 773 00:54:50,599 --> 00:54:55,679 Our masters will be the bankers and the politicians, and they'll live in big house... 774 00:54:55,679 --> 00:54:56,920 won't be castles. 775 00:54:56,920 --> 00:55:01,039 But we'll be serving masters, nevertheless, and we'll be thinking they're wonderful... 776 00:55:01,039 --> 00:55:05,799 without realizing that they are our masters. 777 00:55:05,799 --> 00:55:11,519 If the United States went back to constitutional money, it would be an... 778 00:55:11,519 --> 00:55:16,079 event because it wouldn't be just going back to constitutional money. 779 00:55:16,079 --> 00:55:21,119 In order for that to happen, that means you'd have to assume a groundswell of awakening 780 00:55:21,119 --> 00:55:25,039 on the part of the electorate, and they would understand not only what's happening in the 781 00:55:25,039 --> 00:55:29,519 monetary system, but what's happening across the board in our political system. 782 00:55:29,519 --> 00:55:35,299 I think we would have a great resurgence of prosperity and tranquility. 783 00:55:35,299 --> 00:55:38,719 That means that the electorate would have to be questioning a lot of other things in 784 00:55:38,719 --> 00:55:43,400 our society as well, and I think we would see an improvement across the board, and I 785 00:55:43,400 --> 00:56:10,200 look forward to that day.