Money Is Infinite? Professor Jiang Explains Through Predictive History

Speaker A

So in the beginning, it was merchants who engaged in finance because merchants needed money in order to facilitate trade. And some merchants became extremely wealthy. And when they became very wealthy, they started banks in order to support trade and other merchants, okay? So these banks traded in gold because that was the primary source and supply of money back then. So what happened is you would come and you would put your money, your gold in the bank for safekeeping, and the bank would give you a contract, right? A contract is just saying, thank you for giving me your gold. I promise to give back your gold at any time that you want it. And that's what we call a receipt, right? And this would allow for better and easier trade because now I can take this contract and I can go to. To England, okay, maybe I'm based in Italy, but now I can go to England and say, listen, I need to buy cotton or bananas from you.

And the person is like, well, what are you going to give me? I'm going to give you gold, right? So I take the receipt and I give it to you, right? And why do we, and why do we do this? Because it's a lot easier than giving gold to other people. And so this system would facilitate trade throughout the world. Now, I'm the bank. I have all this gold and I want to make money with it, so I want to give it to other people. So other merchants will come to me and say, listen, I need gold. Can you lend me out gold? But I say to him, yeah, but if I give you out the gold, you have a security issue. It's inconvenient for you, so why don't I give you a receipt, a contract instead? Does that make sense? Because all I need is a contract.

All I need is a receipt in order to go and do trade elsewhere, right? So by doing this, what I've done is I've doubled the gold in my bank, right? I've created money out of nothing. So the gold is still 5 million. That hasn't changed. What? But the Receipt is now 5 million plus 5 million. So theoretically, I now have 10 million in the bank. All right? So that's how money and finance works. Now, there's a problem with the system. The problem is that if everyone wants to go at the same time, I go bankrupt, right? Because I lose my reputation. The contract says that at any time you want the gold, I must give it to you. But if I have, like, if there's $100 million in gold contracts, but I only have $10 million in gold, only if 15 million wants the Gold back then I'm screwed.

This is what we call a bank run, okay? A bank run. And this is a huge problem for merchants. There's also another problem with the system. And the problem is this. If I'm a bank, if I'm a merchant, who do I usually lend my money to? Kings and noble people. And what do they do all the time? Why do they need money to fight wars? Okay? That's why there's a demand for gold. Because if I'm a king, I need to fight a war, usually against my brother or someone else to control this territory, right? Now the problem with this is I could get killed, in which case, oops. But also, what's much more common is the king would be like, screw you, bank. I don't need to pay you back. Okay? So there's actually a lot of risks with this system. So over time, develop a system to mitigate or reduce this risk.

Okay? What would they do? What? What they would do is they would create cartels. Cartels are just partnerships. So maybe this bank works with another bank, works with another bank throughout Europe. They. And the way they establish these cartels is usually through intermarriage, right? They would marry each other. They would combine together. And that way. And let's just say a king decides, I'm not going to pay you back, bank. Well, your bank works with other banks, you to establish a new enemy to kill the king to get the money back. You understand? And this system is what we call today central banking. Central banking controls the world today. Now, what's really important about this system is that it's based on power, right? And what power is, you can turn nothing, money, the contract, into everything, right? That's what money is. So we live in a world in which banks can print out money, right?

So now let's ask ourselves a question. Wait a minute here. If the banks can print as much money as possible, why do we have poverty? Right? Because we can just give money to poor people and they wouldn't be poor anymore. Why do we have poverty? If there's all the food in the world that we want, why are people starving still? So we don't have limited resources. We have scarcity. Okay? Right? So that is the common answer. Scarcity. We have poverty because of scarcity. But I already told you this. They can print money out of nothing. So money is infinite. Money is an infinite resource. So why are we. Why do we have poor people then? That's kind of strange. You all believe money is scarce. Okay, I just spent the past 10:20 minutes explaining to you. It's not scarce, it's infinite. Because it's just a number.

We can at any time print out as much money as we need. Okay? So that's how power works. Power has brainwashed you into thinking something that is not true. You've been taught from the first day that money is scarce. But it's not scarce, it's infinite. And no matter what I say to you, you still believe this, okay? So you have to get that out of your head. Money is not scarce, it is infinite. So let's work with a question. Why is there poverty in this world? Why do people starve? Why is there inequality in this world? Why are there poor people? Why are there rich people? Because we don't want people to all have money. The powerful people don't want that. That's exactly the answer. And why? Because otherwise no one would work. Do you understand? The point of putting money is not to give you money.

The point of putting money is to create the illusion that money is valuable. And therefore you work hard in order to obtain it. But in order for me to make you want to get money, I need to create artificial misery. And there weren't poor people, you wouldn't want to be rich. It's only because you see people suffer that you would want to go make money for yourself. What do your parents tell you? Your parents tell you, work hard in school, make a lot of money. Otherwise you're going to end up like a poor person, right? Well, guess what? If there are no poor people, your parents couldn't say that to you, and you wouldn't want to work hard in school, right? That's why we have poverty. Because poverty creates the illusion that money is valuable. In other words, poverty isn't what you do to yourself.

It is what the powerful do to you. Now let me ask you another question. You guys have studied some economics. Why do you have, like, crises? For example, there's a stock market crash. Or for example, the economy goes down and people lose their jobs. Why do you have crises? The point of crises is to destroy money. Why do we need to destroy money? Because if there's too much money in the system, people don't have to work. So you have to destroy this money in order to make people feel money is scarce. Okay? Does that make sense? So why do we have wars? Right? Why are there wars in the world then? I already told you, scarcity is a lie. The real reason is war is meant to destroy wealth in order to make you think money is valuable. You guys play War of Warcraft. Guess what, guys?

World of Warcraft. In our world, there's absolutely no difference. You just went around pointlessly working hard to obtain credits in order to buy stuff if credit just flew out of the sky. Because they could do that, right? They could actually program the engine to just print money out of nothing. You wouldn't do nothing every day. You wouldn't play the game, okay? It's only because you believe that there's scarcity in the world and that you must work hard to obtain wealth that you do any work. So this world that we live in, it's a complete illusion created by central banking in order to make us work as hard as possible. Because the real value is not money, the real value is the work we do.