Before you trade or invest, it is important to understand what money is, and how the system we live under was created. G Edward Griffin describes this in the video below. At the 7:15 mark he begins the story of what took place at Jekyll Island.
Now that you have a better understanding of the origins of the Federal Reserve, let Mike Maloney show you how money is created, and how it works within our monetary system. This simple video breaks down an extremely complicated process.
This site is from the gold forum at Kitco
Individuals residing in the United States often forget that they are holding the world's reserve currency in their bank accounts. Since everyone lives on the dollar standard, most don't think about it, or believe that its' reign will ever end. The monetary chart below shows very clearly that every 100 years a new reserve currency is put into place. As a millennial, I am sure in my lifetime this transition will occur. Life will get more expensive instantly when that change happens.
If you would like to watch an interesting series on the history of money, Mike Maloney has made a free video series that explains this. Six episodes are available. The link below will take you to the first episode.
The chart below outlines the difference between currency and money as discussed by Mike Maloney in episode one of his series.
The Petro Dollar
At this point in time the dollar is the world reserve currency. In 1971 Richard Nixon "temporarily" suspended the gold standard. Two short years later, in 1973, an agreement was reached between the United States and Saudi Arabia. Simply stated, Saudi Arabia would transact all oil sales in dollars, and in return, the United States would offer them military protection. Then, in 1975 every OPEC nation agreed to the same terms. As of late, tensions have been running high between the US and Saudi Arabia. The Saudi Kingdom threatened to sell 750 billion dollars in US Treasuries. When the time comes and the dollar is no longer the main currency of choice in the oil trade, the dollar will fall and its impact will be felt immediately. For more information about the petro dollar click on the following link http://ftmdaily.com/preparing-for-the-collapse-of-the-petrodollar-system/?ref=36
The M1 chart above shows the amount of dollars pushed into circulation. Before the 2008 financial panic money slowly and steadily increased. In the fall of 2008 base money totaled 800 billion dollars. Today that number is 4 trillion. That is a five fold move in in eight years. A lot of this money was used for stock buy backs and most of it is sitting on bank balance sheets.
In Hidden Secrets of Money episode 6, Mike discusses how the demographics are changing and what that means for the future of our economy. At the 10;40 mark he shows these changes with charts and what he sees ahead for real estate. At 18:50 Mike talks about what his dad made, what his taxes were, and what the median home price was in 1955. Keep in mind, in the mid 1950's most families relied on one income to support the home. If you found this video interesting you can hear more thoughts from Mike Maloney and Harry Dent on the attached link. https://www.youtube.com/watch?v=1ZqLQVpy9l0