My presentation is about one of the chapters of the book 'Conspiracy of the rich' by Robert Kiyosaki. Publication was written in serial basis to help people understand how the current recession came. Kiyosaki has created 'Conspiracy of the Rich' as an eye opener, a pulling back of the curtain, with the belief that with a proper education on how the financial world works, we can take better control of our own financial destiny. The most interesting part for me was fifth chapter and I would like to abridge it.

At the beginning author tells a joke about the fact that the easiest way to rob a bank is own one. Then Kiyosaki states that when it comes to money, most people are smart. Therefore a conspiracy of the rich diminishes our financial intelligence through a monetary system that honest people don't understand. Moreover, owning a bank is license to legally steal money. However not bankers but the system of money creation that steals our wealth.

Later, the author writes about the progress of money - how it evolved from real money to magic money. One of the first monetary system was barter. If a farmer had a chicken and needed shoes, the farmer could trade chickens for shoes. Nevertheless it was uncomfortable.

Then people came to agree on concrete items for example stones, gems or gold that represented value. According to the author gold was international accepted as money. Rather the farmer might simply give the cobbler six colored stones for the shoes.

Next evolutionary stage - receipt money. Rich people would turn their fortune over for safekeeping to people they trusted. In return they received receipt for gold or silver. In ancient times, when a merchant travelled across the desert from one market to the next, he carried with him a receipt for wealth. Rather than transfer gold back across the desert to the other bank , the two bankers in the two cities would simply balance or reconcile the trading accounts between buyer and seller with debits and credits against receipts. The speed of business boost.

Bankers soon realized that receipts were more comfortable than gold or silver. Now customer received another receipt with interest. Financiers observed that they didn't need their own money to make money. The magic show commences when bankers began making more loan for more money than they had in their treasury. The bankers collected interest on money they technically didn't have. People felt richer.

Last stage is fiat money. In 1971 president of the United States severed dollar from the gold standard. Dollar became a derivate of debt. Serving the dollar from gold was bank robbery of ungodly proportions. Government sanctioned the existence of fiat money. It means that all bills payable to the government must be paid in the nation's currency.

Chapter ends with rhetorical questions. Kiyosaki disapprove of system. What is more he maintain that the system is depraved.