Hidden Secrets of Money Episode 3: Dollar Crisis to Golden Opportunity

Here is Mike Maloney shining brightly once again in the 36 minute 3rd Episode of his highly acclaimed Hidden Secrets of Money series. Since 2008, most of the large Western Central Banks of the world have been flooding their respective countries with paper trash currency which will, in the end, completely annihilate the aggregate wealth scattered amongst the people and have it transferred and subsequently concentrated into the hands of those who own tangible assets of intrinsic value. Such tangible assets which include, gold and silver, have historically for millennia acted as monetary safe havens in the midst of government currency devaluation and coinage debasement. This is not a novel phenomenon; rather it has happened at least 775 times before in recorded history, the first of which was ancient Greece around the year 6th century BC. Each and every time the pattern was identifiable and apparent to those who have studied monetary history.

Paper money eventually returns to its intrinsic value, zero.


Since the “Nixon Shock” of 1971 all the nations of the world have become fiat currencies created out of thin air backed by nothing but faith and confidence in the Central Banks that issue them and the National Governments that mandate their use by legal tender laws. All you have to understand is “Cash is trash!” All fiat currencies have a finite lifespan which, on average, has been shown to be 30-40 years. After they crash and burn a new monetary system takes their place. This is not a beautiful occurrence. It does not happen without significant suffering and financial loss endured by us, the little people, who deal everyday with this paper trash. It is no coincidence that Central Banks and National Governments solve disputes with gold transactions and they give the debt based fiat paper trash to the little people to use. What we use on a daily basis is not money, it is currency. There is a major fundamental difference. Money, such as gold/silver, maintains or increases its purchasing power over long periods of time. All the gold/silver that has been mined since it was first was used for trade in Ancient Egypt 5000 years ago is still used and valued today. That is incontrovertible proof of them being a store of value. Currency never maintains its purchasing power. On the contrary it predictably devalues and always collapses and dies eventually. As long you or your family hold your wealth in currency or other currency denominated paper assets you are getting poorer and robbed clean every day. Buy precious metals while our global fiat currencies still have some purchasing power! Do not be a victim on this Wealth Transfer!

Gold is money, everything else is credit.

JP Morgan in 1910 when he was complicit in the conception of the Federal Reserve Bank at Jekyll Island, Georgia

Historically every 30-40 years the world has a new monetary system. This is a pattern that anyone can see who has taken the time to learn economic history. The fact of the matter is the last great change to our monetary system was 42 years ago on August 15, 1971 when President Nixon broke the Bretton Woods agreement and removed the US dollar from the gold standard. Since then all global currencies simultaneously became fiat currencies backed by nothing but faith and credit. The restraining and anchoring effect that gold provided has been replaced by wanton money creation. This is an incredibly dangerous gift to be given to central bankers and national governments. It’s like giving an alcoholic free reign to the bar! If national governments are given the ability to print money at will, then print they will, ad infinitum!

Up until 1971 the purchasing power of the US dollar was already on a downward trajectory however 1971 marked a significantly precipitous decline destroying what little purchasing power it had left. The world witnessed, to the shock and dismay of mainstream economists at the time, a rise in the price of gold from $35/oz to $850/oz as it did an accounting for all the excess paper printed up until that time.

The Indian rupee is failing for the same reason every other fiat currency is failing, deficit spending, floating currency status, and reckless unchecked money printing. The fact that some currencies fall faster than others is irrelevant. All fiat currencies are destined for eventual death and absolute destruction of purchasing power. The US dollar is relatively strong in the world simply because we have the world reserve currency status and the petrodollar status. We have the dubious privilege of exporting all our printed money to other countries and so lessening the resultant inflationary effects that would normally occur had all that printed paper stayed at home. The US dollar is the least dirty in a hamper of filthy clothes.

The Indian and Chinese people have a long tradition of trust in precious metals and distrust in fiat paper and other banker contrived financial instruments (stocks, bonds, mutual funds, exchange traded funds, derivatives, futures, options). It is in their blood and it cannot be expunged. That is why those two countries are the largest consumers of gold and silver today, especially now when the cracks in the global monetary system is becoming self-evident to anyone with half a brain. They know that is the only way to preserve real wealth.

The Indian government, along with the bankers, has been trying unsuccessfully to garner the faith of the Indian people into paper assets and out of hard assets. One method the Indian government has employed is import taxes on all imported gold bullion/coins. It has been raised incrementally since 2008 to no avail, the demand is so insatiable. This is akin to blowing against the wind. As is always the case when government attempts to quell the demand of a particularly highly prized commodity by taxing or prohibiting it, a black market has emerged wherein gold is now being smuggled into the country in staggering amounts. Millions of dollars of confiscated Indian gold has been the result of this frenzy. Currently the Indian appetite for precious metals is so powerful that tanks and infantry could be placed at the Indian border and the gold/silver would STILL be pouring in record amounts!

In a country with a third world status where the people struggle to make enough currency to feed themselves, their golden perseverance is admirable. They scrape together enough currency to purchase even 1 gram of gold per month because they understand the extreme fire sale prices that they are being gifted with and the enormous potential for gain and wealth preservation as fiat currency is printed into worthless oblivion. Many Indian people measure their wealth in gold rather than Rupees. Take a look at an Indian wedding and you tell me whether or not Indians prize gold.

It is not the Indian government or Central Bank of India that has the gold but the Indian people themselves. China has many gold/silver mines within its borders, yet the precious metal never exits the country. It is gobbled up by the Central Bank of China or the citizenry too quickly for it to occur. The difference is China encourages its citizens to buy precious metals and India discourages them. This will make all the difference in determining a country to be an economic/financial superpower in a world of currency wars and the “race to debase”. The BRICS (Brazil, Russia, India, China, and South Africa) countries are making their move. The clear pattern of the economic tide is the global monetary gold is moving from West to East and with it the economic stability that gold provides. The supplies are becoming strained. This situation cannot last much longer.

According the principle “Whoever has the gold makes the rules.” I predict the Indian people to emerge in tremendous economic prosperity following the upcoming global wealth transfer. The same goes for the Chinese people, however in China it is the Central Bank of China that is also purchasing the gold in enormous quantities. As a result China will most likely emerge following the Wealth Transfer as the singularly most economically powerful country in the world and therefore will likely impose its gold backed Yuan as the new world reserve currency. Perhaps we will all be speaking Mandarin before this decade is over.

9 Signs That China Is Making A Move Against The US Dollar

International Monetary Fund Recommends Stealing Americans’ Wealth Now!


Please witness this stunning visual art 3 part video series on why the Game is Over and the Dollar is Dead! The mega zombie banks are gambling with the hard earned blood and sweat of the little people at the world’s largest casino that dwarfs the global GDP many times over. Too much currency is chasing after too few goods. Savers of this printed trash will be the losers in this “race to the bottom”. If you don’t hold it, you don’t own it! Let’s get physical!

I am more concerned with the return of my money than the return on my money.

Mark Twain


Here are the golden nails in the coffin for the US dollar standard.
1) President Nixon Removes Gold Backing 1971
2) Iraq Sells Oil in Euros
3) Following the 2008 crisis the Federal Reserve adds $1.25 trillion to the US base money.
4) Iran Ends Dollar Oil Sales (instead using local currency or gold)
5) Quantitative Easing 2 adds $600 billion to US base money
6) Libya to Sell Oil in Gold Dinar
7) China and Russia Bypass Dollar using a bilateral trade agreement by holding each other’s currency and doing a direct debt settlement without having to wire transfer US dollars
8) Chinese President says dollar reserve currency “product of the past”
9) Utah recognizes Gold and Silver as Money
10) China and Iran Bypass Dollar with bilateral trade agreement
11) Venezuela Repatriates Gold
12) China and Japan trade directly
13) India and Japan bypass US dollar
14) Russia and Iran trade directly
15) Iran sells India oil for Rupees, Commodities
16) China and Brazil trade directly
17) Swiss citizens demand gold repatriation
18) African countries ban US dollar (In Zambia you can go to jail if you use US dollars)
19) Quantitative Easing 3 = Print to Infinity ($85 billion per month)
20) Iran trading energy for gold
21) Singapore removes tax on MONEY (bullion)
22) Germany repatriates 150 tons of Gold from NY Federal Reserve
23) Citizens of Netherlands demand gold repatriation
24) Ecuador to repatriate part of gold reserves
25) Austrian citizens demanding gold repatriation
26) China acknowledges “fundamental market shortage of gold”
27) State owned “China National” buys African gold
28) Azerbaijan repatriates 15 metric tons of gold from JP Morgan in London
29) The Federal Reserve increases printing speed to over $1 trillion/year
30) Japan increases printing speed to over $1 trillion/year
31) People’s Bank of China says “If government where to buy too much gold, gold prices would surge, a scenario that would hurt Chinese consumers.” March 13, 2013
32) Reserve Bank of Australia to buy China Government Bonds (bilateral currency swap)
33) 40% of Global Central Banks invested in or considering Yuan
34) China suggests sale of “most complete and liquid” reserves (US Treasury bonds)
35) Chinese Hong Kong gold imports total 635 metric tons through the end of May 2013, Already 204 metric tons more than 2011
36) USDA says “1/3 of Americans (101 million) on Food Assistance
37) Consumer Metrics Institute Calls US Recovery a “Sham”
38) Bank of England signs Yuan Swap worth $33 billion
39) People’s Bank of China to settle cross border directly
40) European Central Bank seeks Yuan Swap worth $133 billion
41) Banks value gold over dollars – negative forward rates (banks will pay you interest for storing your gold as collateral for a loan)
42) First time in history gold forward rates are negative out 6 months (banks will pay negative interest to the borrower if you provide gold as collateral)
43) Temp work agency becomes 2nd largest US employer
44) US and Canadian Mint silver sales now exceed domestic mine supply for both countries (rush into tangible assets)
45) Shanghai Gold Exchange delivers 9 times physical gold of COMEX (US traders only settle in dollars whereas Chinese investors only settle in gold)
46) US Chamber of Commerce Survey “74% of small businesses will fire workers, cut hours under Obamacare”
47) 450 metric tons of gold (net) exits COMEX and GLD vaults in 2013 (some goes to China and some to the global Central banks)
48) Gold to replace the US Dollar as Yuan reference

Mike Maloney, Hidden Secrets of Money Episode 3

If gold were to cover the currency supply today it would be priced at $13,400/oz for history to repeat and for it to do the same thing it did in 1934 and in 1980. If you include the same overshoot as in 1980, it would require $24,000/oz gold. However since the Federal Reserve stated it will continue Quantitative Easing to 2015 until unemployment decreases and the economy gets back on track we would need $26,000/oz gold to cover the currency supply. If you include the same overshoot as in 1980, it would require $47,000/oz gold.

Mike Maloney, Hidden Secrets of Money Episode 3

Just do good things


About Danilo

A practitioner of Eastern Healing arts with degrees in Acupuncture and Chinese medicinal herbs, I have always questioned the status quo, a path which led me to peaceful anarchism. Through my journey, I have worn many hats, that of a classical pianist, avid chess player, philosopher, comedian, and now father of two little anarchists. My wife brands me as a Cultural Critic, but I am simply following my thirst for knowledge and passion for writing.

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Posted in Central Banking, Government, Precious Metals.

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