23/02/2023
*Understanding How Money Works*
Your whole life you're working a job and
Trading your time for money.
But have you ever asked yourself how money is created?
First of all: money=currency.
Money is an intangible store of value. Think of gold, silver, platin, rice, salt etc.
Currency is a tangible form of money
Instead of trading silver for salt, you can buy salt with currency.
Now here's why that's important:
Before 1971, the central banks could only print as much currency as they had gold to back it up.
But it 1971, the US dollar has been removed from the gold standard.
Since then, currency has been backed by nothing (worthless)
Today, banks can print as much currency as they want.
Now here's the 2nd thing you need to understand:
Currency in the form of paper & coins only makes up 3% of the world's money.
The other 97%? It's debt.
Let me explain:
Imagine you want to buy a house.
A bank gives you a $500k mortgage.
that $500k didn't exist before. They simply "created" it by typing a few numbers on the screen.
So when you get a loan, you get money that has been created out of thin air.
Now, why is that important to know?
When the government needs money,
they go to the central bank and ask for a loan.
The central bank gives them money created out of thin air, in exchange for government bonds.
This newly created money floods the system and devalues the existing money
(Inflation)
Why am I telling you this?
You are getting wrecked.
While you're working hard to save money, the banks are printing it and ruining your savings.
The bankers are making millions while you're working for a tiny amount of
money.
So what can you do?
Play the game of the banks.
Besides printing money, the banks also invest in assets and make their money work for them.
And you can do the same.
