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The very word "secrecy" is repugnant
in a free and open society;
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and we are as a people inherently and historically
opposed to secret societies, to secret oaths and
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to secret proceedings. For we are opposed around
the world by a monolithic and ruthless conspiracy
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that relies primarily on covert means for
expanding its sphere of influence. It is
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a system which has conscripted vast
human and material resources into the
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building of a tightly knit, highly efficient
machine that combines military, diplomatic,
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intelligence, economic, scientific and political
operations. Its preparations are concealed,
00:00:53
not published. Its mistakes are buried,
not headlined. Its dissenters are silenced,
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not praised. No expenditure is questioned,
no rumor is printed, no secret is revealed.
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Machiavelli is one of the greatest political
philosophers of all time. His work “The
00:01:30
Discoursi' would advocate for a self-governing
Republic and highlight that living under a
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monarch with absolute rule was akin to slavery,
providing the political underpinnings for both
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the English and American revolutions. But
Machiavelli's other work, The Prince, would
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have a far more sinister influence. A guidebook
to rulers on how to gain and consolidate power,
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the Prince was considered so dangerous it was
banned by the Catholic church for more than 200
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years. It has not only paved the way for tyrants,
despots and dictators but has had a profound
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impact on business, politics, religion and the
halls of power on every continent of the globe.
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But what did Machiavelli say? Who did he influence
and how has what a man wrote 500 years ago,
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shaped the modern world in which we live today?
From the White House to the Kremlin from the
00:02:24
Vatican to the Federal Reserve, this is how a
man from Florence changed the course of history.
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This is how the writings of Nicolo Machiavelli
are used to manipulate and control everyone.
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In 1469 Niccolo Machiavelli was born in Florence.
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The son of a lawyer, he was not born into a
family of great wealth nor one of poverty,
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but a family that prioritised a classical
education, with Machiavelli being trained in what
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was known at the time as “Studia Humanitatis”
or in English the “Studies of Humanity”.
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At the age of 7, he would begin learning Latin,
followed by Grammar, Rhetoric and Poetry,
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with the education considered complete when one
had learnt Ancient History and Moral Philosophy.
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It was commonly believed that these subjects
would best prepare someone for public life, as
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Cicero had once said, “These disciplines nurture
the values we principally need in order to serve
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our country well”. And luckily for Machiavelli,
that time would come sooner than expected.
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500 years ago, Italy was not the same as it
is today, it was not one unified country,
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but rather a collection of independent
city-states, each with its own ruler
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and governments. The Pope ruled Rome, the
Medici’s Florence, and the Sforza family Milan,
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all competing and waging war against
each other for power and influence.
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It was In 1434 that the Medici family
had established their rule over Florence,
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with their expertise in banking and commerce
transforming the city into an economic powerhouse.
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In 1469, the same year Machiavelli was
born, Lorenzo de Medici came to power,
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with his family renowned for being
keen financiers of Florentine culture,
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using their immense wealth to fund artists
such as Michelangelo, Botticelli and da Vinci.
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But although the Medicis were great patrons of the
Italian Renaissance, Lorenzo was accused of being
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a tyrant, whose greed, corruption and immorality
defied the teachings of the Christian church.
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He would later die in 1492, and just two years
later, King Charles VIII of France invaded Italy.
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The Medici family, who had ruled Florence for
60 years, would now lose their grip on power,
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with the Florentine people supported by
the French driving them out of the city.
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Florence then established a Great
Council, composed of thousands of men
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from the region's noble families. From
these men, a small group were elected,
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and they in turn would appoint others to help
run the city. The Florentine Republic was born.
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With many positions within the republic needing
to be filled, Machiavelli's name was put forward,
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with it being likely that his intelligence
and drive were noticed by the great council.
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And so, in 1498, at the age of just 29
and with no prior diplomatic experience,
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Machiavelli was elected to the Secretary of
the Second Chancery, a position that had to
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coordinate all the correspondence and relations
with regard to Florence's territorial possessions.
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Shortly afterwards, he was also
appointed Secretary to the Ten of War,
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the committee responsible for all the foreign
and diplomatic relations of the republic.
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In this position Machiavelli could be
called upon to travel on behalf of the Ten,
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negotiating with potential allies, gathering
information and aiding the Ten’s ambassadors
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by writing up detailed reports on foreign
affairs and sending them home to Florence.
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For the next 14 years, Machiavelli would be
sent on various important missions across
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the European continent, where he would travel
to numerous states, representing Florence's
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interests and getting to see for himself, how
power really operated behind closed doors.
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For his first mission, Machiavelli would visit
Caterina Sforza, the Countess of Imola and Forlì,
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before being sent for 6 months to the
court of Louis XII, the King of France.
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He was next sent to observe Cesare Borgia,
the Duke of Romagna and Captain General of
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the Papal army, who with the support of the French
would conquer large portions of Northern Italy.
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In 1506, Machiavelli would
visit the new Pope, Julius II,
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making extensive notes on his character
and leadership, and a year later would
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be sent on his last mission, to the court
of the Holy Roman Emperor, Maximillian I.
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It would be these diplomatic experiences coupled
with lessons from Greek and Roman history,
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that would provide Machiavelli with the
material needed to write The Prince,
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a collection of notes and lessons he had observed
regarding statecraft, leadership and manipulation.
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Far from the Christain ideals of
modesty and temperance of the time,
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The Prince would delve behind the
curtains and highlight the true
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mechanisms and tactics rulers use to
gain, consolidate and exercise power.
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The Prince would not be published during
Machiavelli's lifetime, with it being only
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5 years after his death in 1532, that the first
printed copies of the book were distributed.
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Some would call it the work of ‘Satan’s finger’,
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and others a ‘handbook for tyrants, with
William Shakespeare in the early 1600s,
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using the term “Machiavel” to refer
to a cunning and scheming person.
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But over time, some would begin to see The
Prince in a different light, that it described
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the world as it really operates, with The French
philosopher Rousseau believing its contents were
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a service to the public, exposing and allowing
them to observe the secret tactics of tyrants.
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English philosopher Francis Bacon stated that
‘we are much beholden to Machiavel and others,
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that write what men do, and not what they
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ought to do. But perhaps the Prince's
impact is stated best by author Tim Parks:
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“Machiavelli’s little book was a constant
threat. It reminded people that power is
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always up for grabs, always a question of
what can be taken by force or treachery,
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and always, despite all protests to the
contrary, the prime concern of any ruler.”
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But for one ruler in particular,
Machiavelli’s words would have a
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profound impact, one that would
not only change the course of
00:09:14
history but would result in the death and
subjugation of tens of millions of people.
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In all actions of all men, and especially
of princes where there is no court
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of appeal, the end justifies the means.”
Perhaps no man in history has taken these
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words more seriously than Joseph Stalin, who was
known to annotate his own copy of The Prince.
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Ruling over the Soviet Union from
1928 until his death in 1953, Stalin,
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would through the calculated use of terror,
force and propaganda, transform the Soviet
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Union into a world power while gaining the
love, support and admiration of his people.
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“You must either pamper people or destroy them;
harm them just a little and they’ll hit back;
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harm them seriously and they won’t be able
to. So if you’re going to do people harm,
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do it in such a way that you do
not have to fear their vengeance.”
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To consolidate his power Stalin was willing
to use any and all tools at his disposal to
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completely crush his opponents, making sure
they stood no chance of challenging his rule.
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His political rivals would be shot, citizens
who spoke out against him would be hunted down,
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and millions would be sentenced to backbreaking
work in Gulag labour camps where they would be
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forced to carry out decades of slave labour
on highly dangerous projects for the state.
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In 1937, Stalin would take these measures
to the extreme, launching The Great Terror,
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a campaign to rid society of his rivals and anyone
who displeased him. Lasting for a year and a half,
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The Great Terror would spread fear across the
entire country, with over 1,500 people being
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killed each day. Husbands would turn on their
wives, children on their parents, and by the
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time The Great Terror came to an end, there were
none left to speak out against Stalin's rule.
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By the time of Stalin’s death in 1953, over
26 million people had been shot, imprisoned,
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or subjected to internal exile, an average of
over 1 million per year. But how was Stalin able
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to get away with so much? How could he purge,
torture and control an entire empire, without
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any repercussions? The answer lies within one of
Machiavelli's most important rules… Propaganda
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“So long as he has the people on his side
a ruler needn’t worry about conspiracies,
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but when they are against him and hate him
he’ll have to watch everyone’s every move.”
00:12:45
Stalin understood that public support was crucial
to his position. If he was loved, and the people
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swore allegiance only to him, it would be very
difficult for his enemies to oust him from power.
00:12:57
And so, Stalin would go to extreme
lengths to develop a cult of personality,
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with the state producing an endless stream of
propaganda, portraying Stalin as a Hero and a God.
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Statues of him were erected across the country,
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the city of Tsaritsyn was renamed to
Stalingrad, and during World War II,
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Stalin's name was added to the national anthem.
The printing presses were also nationalised,
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with only officially sanctioned writers
able to publish books and write plays.
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Thousands of posters would be produced to make him
appeal to every aspect of society; to the worker
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he was a common man, smoking a pipe and riding
the subway with his fellow citizens. To families,
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he was a father figure, beloved by children who
would present him with flowers and adoring smiles,
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and to soldiers he was the defender
of Mother Russia, a great general,
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wearing a military uniform and leading the Soviet
armies to victory during the second world war.
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“The best fortress which a prince can
possess is the affection of his people”
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Every citizen of the Soviet Union, no
matter their age would be targeted by
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Stalin's propaganda machine. In 1935,
the phrase, "Thank You Dear Comrade
00:14:14
Stalin for a Happy Childhood!" appeared
above doorways at nurseries, orphanages,
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and schools. People's homes would also begin
incorporating private "Stalin rooms" a place
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featuring his portrait, where they could fully
dedicate themselves to their beloved leader.
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Known by titles such as ‘Brilliant Genius of
Humanity’ and ‘Gardener of Human Happiness’,
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Stalin was known to receive standing ovations
after his speeches. Most would last upwards of
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15 minutes, with the secret police carefully
watching the crowd and arresting the first
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person to stop applauding, a crime punishable
by 10 years of hard labour in the Gulag.
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With complete control over the information his
citizens received, Stalin’s cult of personality
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would be extremely effective, with him
being loved by the general population,
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many of whom believed the country
would completely collapse without him.
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Stalin’s death would see a massive
outpouring of grief with citizens
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from across the empire travelling to Moscow to
pay their respect. Even prisoners in the Gulag,
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many of whom Stalin had sent there himself, are
known to have wept at the news of his passing.
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With Machiavelli's book by his side, Stalin
had managed to convince an entire nation of his
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greatness, to feel genuine love for him, all the
while committing numerous atrocities against them.
00:15:43
But it's not just those in the past that
use Machiavelli's teachings… For politicians
00:15:48
in the present are just as duplicitous,
they just use different means of control…
00:15:52
Means less obvious to the common man…
00:15:55
Modern mass media has made the most
tyrannical leaders fiercely beloved…
00:15:59
Even by the subjects they’ve taken advantage of…
00:16:02
But influence and resources in the hands
of a tiny few eventually leads to unrest…
00:16:07
It cripples even the most powerful empires.
00:16:10
If you look at the news, you can see these
dynamics are even further entrenched today…
00:16:14
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that in the next 25 years,
00:16:18
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Perhaps I can help you Chuck.
00:17:33
I think the election was a victory for good
government. It might also be called a victory
00:17:38
for propaganda, but that would have been equally
true if our opponent had won. But how can you
00:17:43
study it? Well, you can begin by investigating
techniques of propaganda. You’ll find that the
00:17:49
purpose of most propaganda is to persuade people
to believe something, to do something, or to buy
00:17:54
something. I find it interesting and there is
plenty to study. Here I have but a few of the many
00:17:59
books on the subject. Hitler and Nazi Germany had
a campaign of propaganda that ran over many years.
00:18:05
Then there is a wealth of propaganda to study
on the subject of Russia and Communism. There
00:18:10
is propaganda to study in our own American
elections, national as well as local. And in
00:18:15
many of the major issues on which elections often
hinge. Well if I don’t learn about propaganda,
00:18:21
it won’t be because there is no way to study it.
That’s right Chuck, remember the techniques of
00:18:25
propaganda and use the procedure we outlined as a
powerful force. So powerful that your study . . .
00:18:32
YOUR STUDY of propaganda is important not
only to you, but to me and to the world.
00:18:41
“In general people judge more by
appearances than first-hand experience,
00:18:45
because everyone gets to see you but
hardly anyone deals with you directly.
00:18:49
Everyone sees what you seem to be, few
have experience of who you really are”
00:18:55
Modern politicians prioritise one
thing above all else; their appearance.
00:19:01
Machiavelli argues that rulers should cultivate
the appearance of virtue, to present themselves
00:19:07
as virtuous and moral, even if they do
not necessarily act that way in private.
00:19:12
“A new ruler ‘cannot always act in ways that
are considered good’, but it is crucial that
00:19:18
he should nevertheless appear to be good,
and especially that he should appear to
00:19:23
be ‘exceptionally compassionate,
loyal, humane, honest and devout”
00:19:28
But what is the best way for a
modern politician to appear virtuous?
00:19:32
The answer is to spend, spend and spend. Who
doesn't want more money for infrastructure
00:19:38
projects, education, healthcare or social
services? The more money a politician spends,
00:19:44
the more they are seen as compassionate and
the higher their chances of re-election.
00:19:48
But this hasn't always been the case.
Historically, this way of appealing to
00:19:53
the masses has always ended in disaster
and looks a little something like this:
00:19:58
A ruler comes to power and embarks
on a large amount of spending on
00:20:02
public projects. The people are pleased
and happy with the many benefits they
00:20:06
receive from the government. Their taxes
are then raised to pay for the spending.
00:20:10
They then begin to hate the leader and
then the leader is removed from power.
00:20:15
As Machiavelli argues, generosity is
self-defeating, the more you spend,
00:20:20
the more you will need to tax, and the
more you tax, the more you will be hated.
00:20:25
“Above all, he mustn’t seize other
people’s property. A man will sooner
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forget the death of his father
than the loss of his inheritance.”
00:20:34
But modern politicians have found a sneaky
and deceiving way around this. A way most
00:20:39
people are completely unaware of:
something called Inflation Tax.
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Have you ever wondered why things
used to be so much cheaper? In 1971,
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a new house cost $25,000 and the average
rent was only $150 dollars per month.
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A movie ticket would cost $1.50,
00:20:59
Eggs 45c per dozen and gasoline would set you
back a whopping 40c per gallon at the pump.
00:21:07
Even a Harvard Education would cost you
just $2,600 for a full year of tuition.
00:21:14
So why are things so much more expensive today?
The answer is simple: The government prints money,
00:21:20
as much as they like, in unlimited
amounts. The more money they print,
00:21:23
the less money is worth, and as a result,
the prices of goods and services go up.
00:21:29
But you might be asking yourself a question, how
are they able to print so much money? They’re able
00:21:34
to do this because of the type of money we have,
a type of money called FIAT. But to understand
00:21:40
what FIAT is, we first have to understand
what money is and where FIAT has come from.
00:21:46
Before money existed, humans had to
barter, that is, goods and services
00:21:51
had to be traded for other goods and services,
a cow for a sheep, an apple for an orange. But
00:21:57
this system was incredibly inefficient, and
not everyone wanted what you had to trade.
00:22:02
And so would rise a form of money, a medium
of exchange, a unit of measurement and
00:22:08
a store of value, that everyone agreed
to use so they wouldn't need to barter.
00:22:13
In ancient societies, money would first
appear in the form of Sea Shells and Beads,
00:22:18
things that were all small, similar in
size, durable and easily identifiable.
00:22:23
Factors that are common occurrences for forms of
money across different cultures and timeframes.
00:22:28
As civilisations evolved and become more
advanced, money would begin to appear in the
00:22:34
form of precious metals, usually silver or gold,
that were then melted down and formed into coins.
00:22:41
This form of money would last
for thousands of years, until,
00:22:45
in the modern age, we have adopted paper as our
form of money. However, this paper was not like
00:22:51
the fiat money we have today, instead, it
was something called Representative Money,
00:22:56
a piece of paper that represented
something else of intrinsic value.
00:23:01
Rather than have to carry around
a lot of heavy metal coins,
00:23:05
people would deposit their money into banks,
who in turn would issue them paper banknotes,
00:23:11
which represented the amount of
precious metals they had exchanged.
00:23:15
These banknotes, a new form of currency,
would then circulate around the economy,
00:23:20
and at any time, could be redeemed
for their value in silver or gold.
00:23:25
In the 18th and 19th centuries, governments
and central banks would adopt this system
00:23:30
and apply it to their national
currencies, for example in 1934,
00:23:35
under what was known as The Gold Standard, a
$35 bill would be backed by 1 ounce of gold.
00:23:42
It was important that paper money was backed
by gold, as it imposed limits on government
00:23:47
spending. They wouldn't be able to print
more money, without in turn increasing the
00:23:52
amount of gold they held in reserve.
As a result, prices remained stable,
00:23:57
and people were able to save without the fear of
inflation eroding away their purchasing power.
00:24:03
But not all countries and governments
had precious metals backing their money,
00:24:07
and as a result, the governments printed too much,
00:24:10
hyperinflation ensued and both the
currency and economy collapsed.
00:24:20
Before the Great War, Germany was a wealthy
nation, with its currency backed by gold.
00:24:27
They were a world leader in manufacturing, with
unravelled expertise, in optics, chemicals,
00:24:33
and machinery. The German Mark, the British
Shilling, the French Franc, and the Italian Lira
00:24:39
all had about equal value, with 4 units of each
currency able to be exchanged for 1 U.S Dollar.
00:24:47
However, in 1914, at the start of the First
World War, Germany abandoned the Gold Standard
00:24:53
and resorted to printing money in order to fund
the conflict. But this policy worked to no avail,
00:24:59
and by the end of the war in 1918, Germany
was surrounded, its allies were defeated,
00:25:04
with inflation beginning to take a toll on the
population, prices having doubled since the
00:25:10
start of the conflict. As a result, Germany was
forced to surrender, and 7 months later in 1919,
00:25:17
they signed the Treaty of Versailles, which
named Germany as solely responsible for the
00:25:22
outbreak of the War, and demanded that huge
reparations be paid to the Allied forces.
00:25:28
The Germans would refer to this
agreement as the “Article of Shame”.
00:25:33
But these reparations, which totalled two
years of its pre-war GDP, would prove too
00:25:39
costly for the German state to bear. Resources
would soon begin to be stipped and taken from
00:25:45
their country as forms of repayment,
including goods produced in factories,
00:25:49
their livestock and raw materials
such as lumber, iron and coal.
00:25:55
As these assets flowed out of the country, the
state would resort to printing vast quantities
00:26:00
of money in order to pay the workers
and finance government expenditure.
00:26:04
As the Reichsbank, Germany's central bank began to
print more and more, it was hard to stop, with the
00:26:11
government enlisting 130 companies to help churn
out piles of increasingly worthless paper notes.
00:26:18
The more they printed the
less the currency was worth,
00:26:21
and hyperinflation soon arrived upon the
doorsteps of every household in the country.
00:26:28
Do you remember that 4 German marks in
1913 were worth around 1 U.S. dollar? Well,
00:26:34
the government printed so much money, that
by the end of 1923, it wouldn't cost 4,
00:26:40
or 40 or even 400 marks to purchase 1
U.S Dollar, but instead 4.2 billion.
00:26:49
Prices for everyday items would begin to spiral
out of control, with wheelbarrows needed to
00:26:55
transport people's money to local stores. A loaf
of bread, that had cost 250 marks in January 1923
00:27:02
would cost more than 200 billion in November. Cash
would be burned for fuel, children would use paper
00:27:10
notes as building blocks and create kites for
their entertainment. Eventually, It ended up
00:27:16
costing more to print 1 note than the note itself
was worth, with the currency soon collapsing.
00:27:22
The German Mark would serve as a lesson of
history and a warning to future economies that
00:27:28
a currency backed by nothing, will eventually be
worth nothing. With the destruction and carnage
00:27:34
financial collapse brings about, giving tyrants
and despots the opportunity to seize control.
00:27:41
At Bretton Woods, New Hampshire, Delegates from
44 Allied and associate countries arrived for
00:27:51
the opening of the United Nations
Monetary and Financial Conference.
00:27:55
After the Second World War, the United
States had emerged as a financial superpower,
00:28:00
having accumulated over 80%
of the world's gold supply.
00:28:04
And so, they would sort to position themselves,
as the leader of a new global monetary system,
00:28:09
one that would promote peace and stability, that
would help prevent the outbreak of another war.
00:28:15
To negotiate this new system, 44
nations from around the globe would
00:28:20
travel to Bretton Woods in New Hampshire,
where they would all mutually agree upon
00:28:24
a new framework by which the world's
currencies were exchanged and valued.
00:28:28
Under this new system, nations, instead
of pegging their currencies to gold,
00:28:33
as had been done under the gold standard, would
instead peg their currencies to the U.S Dollar,
00:28:38
which in turn was pegged to gold at $35 per ounce.
00:28:43
The world was effectively
back on the Gold Standard,
00:28:46
countries could trade their
currencies for U.S Dollars,
00:28:49
which, then could be exchanged for gold. The
U.S Dollar was now the world's reserve currency.
00:28:57
However, fast forward 30 years and history would
begin to repeat itself. Much like the Romans,
00:29:03
The Chinese, The Spanish, The British, The
Germans and all rulers and governments that
00:29:09
have come before, The United States fell into the
same trap. They began to spend beyond their means.
00:29:16
Overly ambitious projects like “The Great
Society'', social programmes aimed at
00:29:21
eradicating poverty were introduced, and The
Vietnam War, a geopolitical conflict aimed
00:29:27
at stopping the spread of Communism, began to
soak up vast sums of government expenditure.
00:29:33
Foreign nations, realising the U.S.
government had printed more money to
00:29:37
fund these ventures than they had in
gold reserves, would begin to panic,
00:29:40
and started the process of swapping their
dollars for gold. With the nation's gold
00:29:45
reserves being depleted, Richard Nixon on
August 15th 1971, would address the nation
00:29:52
via Television and declared that he was stopping
the international convertibility of USD into gold.
00:29:58
Accordingly, I have directed the
Secretary of the Treasury to take
00:30:03
the action necessary to defend the
dollar against the speculators.
00:30:08
I have directed Secretary Connally to suspend
temporarily the convertibility of the dollar
00:30:13
into gold or other reserve assets, except
in amounts and conditions determined to be
00:30:19
in the interests of monetary stability and
in the best interests of the United States.
00:30:25
With the Dollars link to gold being severed,
the Bretton Woods system had come to an end,
00:30:29
with the age of Fiat currency emerging. All the
world's currencies were now backed by nothing.
00:30:36
What would result is one of
the greatest heists in history,
00:30:40
an act of deception so big that even
Machiavelli would look on with astonishment.
00:30:45
No longer would governments around the world
have to raise excess funds via taxes, something
00:30:51
Machiavelli had warned against, instead they were
now free to print as much money as they wished.
00:30:57
They could now steal their population's wealth
without them even realising it, because although
00:31:02
the amount of money in their bank account stayed
the same, the value of that money went down.
00:31:08
For example, if you had saved $1
dollar in your bank account in 1913,
00:31:12
the same year the Federal Reserve was
created, that dollar would only be
00:31:17
worth 4 cents today. In just 100 years, the
dollar has lost 96% of its purchasing power.
00:31:25
But since 1971, the United States Government
hasn't just printed a lot of money,
00:31:30
they have embarked on the greatest spending spree
of any nation at any point in recorded history.
00:31:37
Let's take a look at their national debt.
00:31:40
Since its founding in 1776, through the American
Revolution, the Civil War, as well as the
00:31:47
First and Second World Wars, by 1971, the U.S.
national debt stood around $400 billion dollars.
00:31:54
What had taken nearly 200 years to accumulate,
would now be dwarfed by comparison. Just 50 years
00:32:01
since the dollar had left the gold standard, the
national debt now stands at $31 trillion dollars.
00:32:08
There were no world wars, no great depressions,
but with fiat money now under government control,
00:32:14
they have managed to accumulate
$31 trillion dollars of debt.
00:32:19
So, what are the costs of this?
Well, the cost is Inflation Tax:
00:32:24
The more money the government prints, the
less the dollar is worth. And the less
00:32:29
the dollar is worth, the more expensive
things become in relation to the dollar.
00:32:33
In other words, prices will keep going up as your
purchasing power goes down. It's a sneaky way of
00:32:40
taxing your savings without the government
having to take the money from you directly.
00:32:45
As you can see, when money is sound, that is
backed by something of intrinsic value like gold,
00:32:51
prices remained stable for hundreds of years.
00:32:54
People were able to save and hand
that money, that store of value,
00:32:58
down to the next generation. But in 1971, that
all changed, and prices begin to take off.
00:33:06
Take Campbell's Soup for example, prices
remained relatively stable for decades,
00:33:11
but then 1971 rolls around, and
the price begins to explode.
00:33:16
What's worse, is inflation tax doesn't just show
up in the price, you can also have something
00:33:22
called “Shrink-flation” where the price remains
the same but the product is reduced in size.
00:33:28
Whether it is electricity, food or fruit,
00:33:30
the case remains the same. Since
1971, prices have begun to rise.
00:33:37
But it's not just consumer items that are affected
by inflation tax, it's EVERYTHING in the economy.
00:33:43
Since 1971, productivity has increased by
nearly 250%, but compensation has remained flat.
00:33:51
Productivity has increased, but
compensation has moved sideways.
00:33:56
This can also be seen in the
cost of education. While the
00:34:00
average earnings for those between
22-27 years old have barely moved,
00:34:04
the cost to attend higher education has
skyrocketed. Most young adults today now
00:34:10
have to saddle themselves with massive debt’s
just to be able to afford to go to college.
00:34:14
And then when they graduate, they face another
huge problem. The cost of housing. Since 1971,
00:34:22
the value of homes has gone parabolic, far
exceeding income growth during the same period.
00:34:28
In the 1950s, 60’s and 70’s, it would
take on average 2.5 years of your labour,
00:34:34
in order to save up and purchase a house. By 2020
that figure has risen to 7 years. House prices
00:34:42
have risen so much, you now need to work nearly 3
times longer, just in order to buy the same house.
00:34:49
The American Dream, the old tale of
each according to their own ability,
00:34:53
where an average family could accumulate
a modest fortune and own a small plot of
00:34:58
land with a house and a little white picket
fence, was now out of reach for most Americans.
00:35:04
The American Dream was slowly turning into the
American Nightmare, where even the most basic
00:35:10
of goods and services were becoming
unaffordable for the average citizen.
00:35:15
So what did they do? They turned to debt,
easy credit that would allow them to live
00:35:21
the same life as their parents. While
everything got more expensive, Americans
00:35:26
would borrow and borrow while accumulating
the most debt of any generation in history.
00:35:33
Inflation hurts everyone, but it hurts one
group, in particular, the hardest, the poor.
00:35:39
The wealthy know the game that is being played,
and that's why they protect themselves against
00:35:44
inflation by owning assets, such as gold,
real estate, stocks, bitcoin and rare art.
00:35:51
When the government prints more
money these assets, on average,
00:35:55
over time increase in value, but for the
poor, who hold most of their wealth in cash,
00:36:00
the value of their money is totally destroyed and
they are crushed by the rising cost of living.
00:36:07
Inflation is the most destructive disease
known to modern societies there is nothing
00:36:12
which will destroy a society so thoroughly
and so fully as letting inflation run riot.
00:36:19
Inflation doesn't arise because you’ve got
consumers who are spendthrift they've always
00:36:23
been spendthrift. it doesn't arise because you've
got businessmen who are greedy they've always been
00:36:29
greedy. Inflation arises because we as citizens
have been asking you as politicians to perform
00:36:35
an impossible task. We've been asking you to
spend somebody else's money on us but not to
00:36:40
spend our money on anybody else. Everybody talks
against inflation but what he means is that he
00:36:46
wants the prices of the things he sells to go up
and the prices of the things he buys to go down.
00:36:53
The real tax on the American
people is not what you label taxes,
00:36:56
it's total spending. If Congress spends
50 billion dollars more than it takes in,
00:37:01
if Government spends 50 billion dollars, who
do you suppose pays that 50 billion dollars?
00:37:05
The Arab Sheikhs aren't paying it. Santa Claus
isn't paying it. The Tooth Fairy isn't paying it.
00:37:10
You and I as taxpayers are paying it
indirectly through hidden taxation
00:37:15
But it's not just the United States and
the Dollar that are experiencing Inflation.
00:37:20
Whether you hold the Nigerian Naira,
the Argentine Peso or the Turkish Lira,
00:37:25
governments around the world
are stealing the wealth of
00:37:28
their populations as inflation erodes
away their currencies purchasing power.
00:37:34
So, what's going to happen from here? Well,
it's going to get a lot worse, everywhere.
00:37:40
Governments and politicians in the U.S. and
around the world are not interested in the
00:37:45
long-term trajectory of their nations. Instead,
they are solely focused on the election cycle,
00:37:51
what they can promise now, and what
will garner them the most votes.
00:37:55
They are interested in POWER. And if they have to
spend vast sums of money on different programs in
00:38:02
order to bribe the public to vote for them, that
is what they are going to do. And why wouldn't
00:38:07
they? They no longer have to raise taxes from
the population in order to fund these projects.
00:38:12
They simply print the money, hold
on to power for as long as they can,
00:38:16
and the population is none the wiser as to
why everything around them is crumbling.
00:38:23
Unfortunately, the debt in most nations
is already too large to be paid back,
00:38:27
so more money will need to be issued
in order to pay it off. In other words,
00:38:32
the debt is already so high, the only way
forward is for nations to print more money
00:38:38
and in doing so, inflate their way out
until their currencies are worthless.
00:38:43
The debt to GDP ratio in the United States is
already over 130%, that’s double the size of
00:38:50
the economy and higher than during World War
2. By 2050, that ratio is expected to exceed
00:38:57
200% of GDP, totalling more than 100 trillion
dollars of debt. By the end of the century,
00:39:05
in the year 2,100, just 73 years from now,
if politicians carry on down the same path
00:39:11
of money printing they are currently on, the
national debt will exceed 1 quadrillion dollars.
00:39:18
Whether it be 10, 50 or 100 years from now,
00:39:21
sooner or later the chickens are coming
home to roost, As Machiavelli has said:
00:39:27
“If you’re determined to have people think of
you as generous, you’ll have to be lavish in
00:39:31
every possible way; naturally, a ruler who follows
this policy will soon use up all his wealth to the
00:39:38
point that, if he wants to keep up his reputation,
he’ll have to impose special taxes and do
00:39:44
everything a ruler can to raise cash. His people
will start to hate him and no one will respect
00:39:50
him now he has no money. Since his generosity
will have damaged the majority and benefited
00:39:56
only a few, he’ll be vulnerable to the first bad
news, and the first real danger may well topple
00:40:02
him. When he realizes this and tries to change his
ways, he’ll immediately be accused of frugality.”
00:40:13
As of 2023, global debt has reached a record $300 trillion dollars
00:40:18
This equates to $37,500 for every person on the planet
00:40:28
"Paper money is liable to be abused, has been, is, and forever will be abused, in every country in which it is permitted"
00:40:37
Thomas Jefferson, 1813
