See that dog?
She’s ours. Almost 5 years old. Her name is Millie.
This dog is the sole reason I’m getting as many steps in every-single-day-without-fail.
When our daughter wanted a dog we knew that it would be on the parents to do the majority of the daily care regardless of what our daughter’s beautiful presentation suggested.
And we didn’t mind.
What I personally was not fully aware of was exactly how much you can spend caring for a dog.
It’s pretty wild.
I’m pretty convinced that between food, snacks, toys, vet bills, nice home-based boarding, grooming, jackets, and more vet bills…(did I mention vet bills?)…just how much it costs to have a dog.
There is a non-zero chance we could be billionaires if it wasn’t for this dog.
We are basically working to give Millie a billionaire life.
She gets fed, gets walked, we wash her, cut her nails, brush her teeth, pick up her poop, goes on vacations to her ski house, plays with friends regularly…this dog doesn’t need to think about money at all.
She’s living the billionaire life.
Billionaire Mille is now her name, LOL.
Most of us have to think about money.
And that’s where life gets weird.
We all go to school, pick some form of career or two, try to save, try to invest…but I’ve come to realize no one knows what money is.
If you ask the person next to you right now,
“Hey, what is money?”
They will either have no answer, murmur something about the Canadian currency, or just look confused.
Think about that.
Pretty much everyone you know is spending their time in exchange for money but they don’t really know anything about it.
They may know they can pay bills with it, or pay taxes in it, but they don’t truly know what money is.
So we have 3 questions for you to kick off 2025:
1. What exactly are you accepting in return for your time and your labour at work?
2. Why do you work for your money when banks can just create it for free?
Please re-read that about 150 times.
3. Why do we need the always-praised 2% inflation of the money supply?
Why is the dilution of the money supply by increasing it 2% annually necessary?
Have you thought about it?
Here’s how we think about today’s money, the Canadian dollar…
It’s not good money at all.
It’s actually a debt receipt.
All of your money originates from someone, somewhere, taking on debt.
When that debt is created it’s represented as “debt receipts” in the the form of Canadian dollars.
Here is an example…
Let’s imagine you work at a car dealership.
Where does your money come from?
Well, when a loan is created to buy a car those “dollars”, aka “debt receipts”, were created by the bank out of thin air and “deposited” into the car dealership's bank account.
Those debt receipts are then used to pay you…your money is a bunch of receipts on some new debt.
Weird, no?
But hold on, some of you may say, “No, no, no, Tom…I had the money in my bank account, there was no new loan created to pay for my car!! Gotcha!!”
Well, I would respond with this…
Where did your money come from?
Did you work at the grocery store perhaps as a store manager?
OK, great.
How were you paid?
When people buy their groceries and pay with “visa”, new debt receipts…aka money out of thin air,…are created and deposited into the grocery store's account from which you are paid.
Now, someone out there may say…well “I don’t pay for my groceries with visa, I pay with cash so this doesn’t always apply”.
But it does.
Where did your cash come from?
I would bet that if you reverse engineer it back far enough you’ll find your money came from debt receipts too.
It’s completely wild!
And get this...it gets crazier!
When you use your money…aka, debt receipt…to pay off debt you are actually EXTINGUISHING MONEY.
That’s right. The act of paying off debt with your debt receipt, the Canadian dollar, is the equivalent to giving the debt back and paying it off.
You are reducing the amount of CAD…aka money, aka debt receipt…in the supply by paying off debt.
How absolutely ridiculous is that?
This is 100% why central bankers DO NOT want you to pay off your debts.
It’s actually the opposite.
They want you to have MORE DEBT. Because more debt means more money (aka, debt receipts) circulating in the economy.
Got it?
Yes, it’s very confusing.
Who understands this? Few. Very few.
And it gets even more wild!!
Why do central banks want you to have more and more and more and more debt?
Well, because each new batch of new debt that is created comes with interest payable.
If we go back to the beginning and begin with the first $1 that popped out of the Bank of Canada…because it’s a “debt receipt” and was borrowed into existence…there is more than $1 owed back to the central bank.
If we use an interest rate of 10% in this example, then where does the $0.10 come from to pay back the debt?
Well, another $1 has to be borrowed into existence…but it also arrives with interest owing…so now you have $2.20 owed back to the banking system but only $2 exists.
So more debt receipts are now required!
The system DOES NOT want you to pay off all your debts.
The current system actually NEEDS you to accept debt, more and more debt.
This is why “2% inflation” is always said to be good.
It’s actually horrible but it’s needed for the system to work. There must always be more and more dollars.
OK, hopefully we haven’t been too confusing this week.
But when you understand this then you realize why something like hard assets do well in this system.
Hard assets “go up” in debt receipt terms because more and more and more debt receipts are created, devaluing them more and more and more.
And rental properties are great because it’s one of the only ways that the average Canadian can play banker and create new dollars out of thin air just like the bankers.
Now, with property, you can refinance your property or get a new mortgage and create new debt receipts too! Just like bankers do, out of thin air!
It’s absolutely ridiculous but that’s how the system works.
And in the real world people are exchanging their whole lives for these debt receipts that just lose value.
It’s also why something like Bitcoin, that cannot be devalued or inflated, is so amazing. Bitcoin has a finite supply…no central authority can change its supply. Pure magic.
Properties allow you to play central banker.
Bitcoin allows you to protect your purchasing power.
Powerful combo. Mix and stir each to your desired ratio.
Most Canadians do not understand this and will argue what we just shared to no end.
We can tell you, for a fact, that once you truly understand what we shared here…you are set up to live life on your own terms.
If you’d like to give us feedback on this you can find us on Twitter / X.com @tomkaradza and @nickkaradza
For all the economic PHDs out there…we clearly generalized some concepts here…but the point stands. Our current money is debt.
If you don’t believe us…ask ChatGPT to be sure.
Here’s what it had to say when we asked if our money is actually debt:
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All Canadians are working for debt receipts.
They don’t know this to be true and suffer the consequences of the system.
In 2025, choose some hard assets and begin saving in them.
It’s your path to freedom.
Over and out…
Tom & Nick
p.s. We run a Rock Star Platinum group which is limited to about 12 people. It’s our business and entrepreneurship mastermind and we’re revamping it this year. If this is something you’re interested in you can find details by visiting: RockStarInnerCircle.com/Platinum…the deadline to apply for 2025 is approaching.
