Page 72 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

paychecks before it even reaches our hands. Bankers don’t have to take it
from our pockets because it never even goes into our pockets.

CLIPPING COINS

During the Roman Empire, many emperors played games with their coins.
Some clipped the coins, shaving a little gold and silver from the edges. This

is why coins today have grooves on the edge. Grooves were to protect coins
from clippers. When they could no longer clip coins, the emperors had their
treasuries begin mixing the gold and silver with cheaper base metals.
The U.S. government did the same thing with its coins in the 1960s.

Suddenly, silver coins disappeared and fake coins took their place. Then in
1971, the U.S. dollar became funny money because it was taken completely
off the gold standard.
In many ways, banks are the biggest financial predators of all. Every

day, they rob savers of their wealth by printing more and more funny
money. For example, the bankers’ rules allow them to take in your savings
and pay you a small percentage interest. Then for every dollar you save, the
bank is allowed to lend out at least twenty more dollars and charge a higher

interest on that money. For example, you deposit one dollar and the bank
pays you 5 percent interest for that dollar over a year. Immediately, the bank
is allowed to lend out twenty dollars and charge you 20 percent interest to
use your credit card. The bank pays you 5 percent for one dollar and makes

20 percent on twenty dollars. That is how bankers get rich. If you and I did
this, we would go to jail. It is known as usury.
It also causes inflation. Because our banks are playing games with
money, the gap between rich and poor becomes larger. Today savers are

losers, and bankers are winners.
In the new rules of money, we need to know how to borrow currency to
acquire assets, since we no longer save money. In other words, smart
borrowers are the winners in the new capitalism, not those who save money

in a bank savings account.

The Third B: Brokers