Dark Secret about Money
Your whole life you’re working a job and trading your time for money.
But have you ever asked yourself how money is created? I have been working with financial firms and I learned all the secrets the public doesn’t know! And you might get shocked by the truth.
First of all: Money = Currency
Money is an intangible store of value. Think of gold, silver, platinum, 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 in 1971, the US dollar was 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 and 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.
Invest in Real Assets: Real estate, precious metals, and commodities. These assets tend to retain their value or even appreciate over time, providing a hedge against inflation.
Diversify Your Investments: Don’t put all your money in one place. Spread your investments across different asset classes to reduce risk.
Educate Yourself: Understand how the financial system works. Knowledge is power, and the more you know, the better you can protect and grow your wealth.
Invest in Yourself: Your skills, knowledge, and health are invaluable assets. Continuous learning and self-improvement can open new opportunities for income and wealth creation.
Remember, the key is to shift from merely earning and saving money to strategically investing and growing your wealth. By understanding the financial system and making informed decisions, you can turn the tables and take control of your financial future.