Hyperinflation is Already Here - You Just Haven't Realised It Yet | Economics Explained
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- Опубликовано: 21 сен 2024
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Hyperinflation has been a doomsday scenario for modern economies throughout the last century. In all of these failed countries (Zimbabwe, Venezuela, Hungary, Yugoslavia, etc.) there have been uniform warning signs, the same signs that we are starting to see today in the U.S.
#Inflation #Hyperinflation #Economics
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#Inflation #Hyperinflation #Economics
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As an argentinian I am kinda offended you didn't use us as an example in the intro. We work hard to be on that kind of list, sir!
@Shri Shiva Dhasen you guys have no idea what hyperinflation is like. This is click bait.
@Shri Shiva Dhasen USA will always be numbah 1
Rare when honesty Trump's humor.
Looks like venezuela trying to beat argentina's high score then
Because Argentina had an exchange rate inflation. A very different thing.
In Argentina we were born into the inflation, molded by it. We didn't see stability until... We leave
@@scratchsoft2347 now with the US dollar so restricted and artificially still its not even worth to have them, you are losing every month to inflation despite being dollarized. you have to look for some kind of investment with at least similar returns to inflation rates wich is extremly risky and difficult considering inflation is about 4% monthly. por que hablaba en ingles el vago jajaja
And then people vote for the same policies that created the inflation in the first place
Oh, you think economic growth is your ally. But you merely adopted the capitalism; I was born in it, molded by it. I didn't see the growth until I was already a independent nation, by then it was nothing to me but BLINDING! The money betray you, because it belong to me.
Yeah I got that reference
10/10 Banepost
I accused my wife of being a shopaholic, but she replied that she was just shorting money as a sound financial investment.
shopping is consumption bro. Maybe the items she s buying have low depreciation tho.
I'd suggest you wife to rack up on some bitcoin
I’ll have to remember this one.
Smart woman 👩
Interesting. I should've made the decision to buy a graphics card 6 months ago as I'd planned instead of waiting to my own detriment.
I feel like one very important thing is overlooked, the fact that this is happening to every country around the whole unlike the case studies that u referred to where those events happened to one specific country.
Because they are all tied to the dollar which is why half of the countries in the world are starting to dump the dollar as a tool of barter.They are starting to position themselves for the crash.
@@Wesley3129 as well as the states sanctioning anyone who even farts slightly too loud, essentially pushing countries away from it and digging its own grave
@@Wesley3129 this really is a perceptive assumption you got there
Do not forget that all western government are "cashing in" on the industry (Big Pharma!) which has no legal responsibility toward their users / customers and are immune from any legal prosecution by states laws! Both US and entire EU zone has this!
Big Pharma industry WILL CRASH because no major industry can operate with NO RESPONSIBILITY (LEGAL or not) toward their customers / users!
Covid-19 is health catastrophe in the making! "Poisoning" the people for the sake of money alone!
Yes this!! I agree completely. This entire money printing scare is not comparable to other hyperinflation events. The entire world had to print money to shore up their economies....because the entire world froze their economies during the pandemic. 👀 this should drastically offset any real lasting inflation and normalize over time. I'm grossly speculating but a one to one comparison to prior events is also wreckless.
Oct 2020 - Is Hyperinflation Coming?
April 2021 - Hyperinflation is Already Here
Can't wait for the third act in this blockbuster trilogy
Oct 2021 - We Have Always Been Hyperinflating
2022 - how hyperinflation is hyperinflating the hyperinflation crisis
A scenario where everyone who goes out there and buy real estate out of fomo is right? Hmmm I dont think so... 80 / 20 rule baby
Why is there no hyperinflation yet?
Is the third Arc about a guy getting revenge because he failed art school?
Now it's time to read the comments and see what the experts have to say.
And they do not disappoint!
Did you call my name!?!
My country had a 500k bill. Obviously worthless.
Seems like the US can print as much money as it wants, with no consequences whatsoever, because the whole world use dollars.
So even if Biden prints 5T next month, he can do it and the price of things will remain the same. As long as people around the world believe/use their imagination/have faith that the dollar is good.
So the only thing preventing the economic collapse of the USA is the imagination of people worldwide that the dollar "has a lot of value and is easier to use".
Yes, experts is rather apt. Most of Us balance a household budget and know simple maths. If We live on the never never then eventually We lose Our house if income no longer services debt. Then We end up bankrupt. Maybe jail if We deceive the system. Of course it's okay when govt financial planners plunge it's masters into unpayable debt? Of course My error in stating this is that governments are the servants. Its obvious now that the tail has been wagging the bluddy Dog ! Time to stand for something or fall for anything they tell Us. All the best
Americans: "Hyperinflation is on the horizon"
Me, a brazilian: "So, first time?"
Why hasn't this gem been pinned?!
😂
If anything goes bad just change currency again
-brazilian government, i guess
É rir para não chorar kkkkkkk
Quick question for you if you don't mind. How do people in your country save up money, knowing it will be gone in a few years? Do they just rely on pensions? Are pensions rising with inflation?
my irish grandpa use to say, there is no inflation when you plant potatoes and veggies and raise chickens and ducks.
Except the doctor now wants two chickens and 2 dozen eggs instead of one chicken and 1 dozen eggs as payment!
@@sexysilversurfer why, is he more hungry than yesterday
@@sexysilversurfer I think that's kinda missing the point. The worth of a currency fluctuates owing to circulation and other complicated economic matters, but a chicken will always be a chicken, edible and able to produce eggs.
@@MultiKommandant I think you are missing the point lol, it's all about supply and demand. If a village has 2 hens and 10 cows, it takes 2 eggs to buy 2 cheese. If the village breeds 100 chickens, but 5 cows die, then it takes 50 eggs to buy 1 cheese. There really isn't much difference between currency and chickens when it comes to exchange rates. If the village has 1,000 chickens and 10 people, everyone is full and chickens/eggs have no value.
Ah, fair enough. Sorry for misunderstanding, and thanks for the prompt correction.
As an actual multi-billionaire, I have to agree with the sentiments expressed in this video. (I have a 100 billion Zimbabwean dollar bill.)
I have trillion dollars in-game money.
I might buy myself one of those just so i can go round telling people i'm a billionaire.
.... come to think of it, wish I'd known this when i was single.
Imagine in 30 years zimbabwe money gains value and now you have a considerable amount of money
Peasant. I have 100 trillion.
My 100 trillion dollar bill is in my safe, next to my 50 trillion and 10 trillion dollar bills. I agree with Mike Mash, billionaires are peasants.
Economics Explained: “weird maple money”
Me a Canadian: *angry beaver noises*
Allright ya’ hoser back bacon bro...
That was a good one! A real LOL moment. Thank you.
Praise God you don’t live on an island with 6 ft tall giant rats that will punch you out and 79 varieties of giant venomous spiders, like cheeky ozzy guy making the video.
Although ozzy chicks are pretty damned awesome.
It all evens out , I suppose.
+1π6 π2 π3π 4π7 π1 π 9π 4π3π 4
When China realizes that the maple money can be washed, the world order will change.
@Martin It was really weird when that Maple Money was worth more than the all-powerful dollar 2011 :)
gold maple leaf coins still seam quite popular.
Just withdrew my life saving and exchanged all my US dollars into the very stable Zambian currency while also buying real estate in the property rights protecting Argentina.
*Warren Buffett wants to know your location*
Investing 101
Nobel of economy for him now
A great investment, i'm glad i found another internet explorer user
Investing in North Korea and Venezuela is better tho. Bro you are missing some good bucks.
People are affected by inflation far more quickly than they are by a stock or property market crisis because it directly impacts their standard of living. The current level of negative market sentiment is not surprising. To survive in this economy, we urgently need your assistance. The ETF/Equity market continues to fluctuate. My portfolio of $370K is laid bare in ruins
Indices frequently go from a bear market to a bull market when the news is at its worst and investor confidence is at its lowest. This demonstrates how quickly the direction of the market may alter.
You need a Financial consultant to avoid being taken advantage of. They offer personalized advice to individuals based on their risk tolerance and investment capital. They do have a great reputation and some do have a strong track record to go along.
@@ThomasChai05 I'm actually interested in this idea of investing through an analyst. Sounds like the most sensible thing to do in the market right now. Could you give me a pointer to who you work with, please?
CAMILLE ALICIA GARCIA maintains an online presence. Just make a simple search for her name online.
I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. I set up an appointment to use her services.
Yay! We're all gonna be millionares!
That's the spirit.
That’s the spirit.
@@EconomicsExplained I can’t wait to be a trillionaire
Reminds me of a gameshow we had in the Netherlands.
The participant starts of as a millionaire (in Zimbabwean dollar or something like that), but answering questions correctly would then change the currency (ending in Euro)
@@Thomashisacount Sounds way too intelligent for American TV. Cancelled. 😋
Years ago, I had a guy once ask why we couldn't just give more money to everyone. I laughed at the time. Who knew he was ahead of his time?
he probably got hired by the government
Hes called a democrat and that's called welfare
@@22fordfx49 A universal basic income is different than a Social security supplemental income that is tied to disablity or special need. also aren't corporate jobs a form of private welfare? unless your telling me that jeremy the CFO's stepson really can change the world. if that's the case i have a special oil to sell to you.
He went on to get a job at the Fed lol
@@ethanstump Corporate jobs are not considered welfare. If you want to fight this, fight it with your wallet. Instead of walmart, shop at ma and pa shops. As for supplemental income, socialism has never worked because in the end you always run out of other peoples money and can only print money which produces inflation
"Too Big to Fail, that's like saying too fat to diet" - Robin Williams
"If they're too big to fail, they're too big." - Allan H. Meltzer
They should collapse if they are too big too fail, subsidizing those industries without getting shares in return is basically communism
Ye "too big to fail" is a bit misleading, it should be called "systemically relevant" or maybe "system stabilizing"
@@DerTotuo so big, we all die if they die.
For some reason this provides me with no comfort
@@mookosh exactly,have you seen the hunger games?
An inflation rate of 10% is not hyperinflation and nowhere close. Hyperinflation would be an inflation rate of at least 12000%.
So glad my medical school debt will be worthless when I graduate!
Finally my dream of becoming a millionaire will finally come true.
So will your medical school degree! Wheeeeee! 😁
Actually yes.
in aus they index our govt student debt at the inflation rate lol. yay.
Worthless as in, 10x what it is now lol
I lost my job in the construction industry during corona, and recently I was looking to do some renovations, then I saw the price of materials basically doubled across the board.
Dude wood prices are INSANE
@@BarnyWaterg8 Might as well start to grow bamboos yourself and use it as wood. Grows fast and is strong material.
My farm burned down, can confirm that construction materials are three-four times as expensive now than when we built the stable which burned down 5 years ago
Right now everyone is renovating so there is a huge demand spike, it will likely settle down after people go back to work.
Sheet of plywood only a few years ago was $30 or $40 dollars two years ago. $120 today. Crazy. Food is just as bad if you bothered to keep track.
Brazil went through periods of hyperinflation from 1989-1994 (> 1000% y/y at times). Before that, we had 50 years of high inflation (> 2 digits a year). All of our parents and grandparents have been through it. It's really hard for me to process how my parents managed to live with that kind of economy, it seems impossible that you can even survive that. Some really bizarre things happen to your daily life, like having to immediately spend everything you earn in the market and depositing all the rest in the bank so it won't lose all its value. Long queues in all markets and banks, entire rooms reserved for stocking food and supplies at home, dollar black markets.
The main causes of hyperinflation in Brazil were the very high spending by the military government that ruled from 1964-1985 and the uncontrolled money printing after that. At one point, the minimum wage had to be readjusted every two weeks and even then it wasn't enough to keep up with inflation. Bank deposits would yield something like 40% a month, which also wasn't enough to retain all value. Many economic plans were tried in the late 80s and early 90s to solve the problem, none of which worked. Price freezes would make items vanish and new currencies would spiral into nothing in a matter of months. In 1990, the first democratically elected president after the military dictatorship literally took all the money people had in the bank, promising to return the nominal value in the next years. Of course, the nominal value was worthless after a few weeks so effectively most people lost all their savings. He was later impeached.
The Real Plan was the one that actually saved the Brazilian economy. Economists recognized that chaotic money spending and printing, plus the psychological effects of inflation (inflation expectation generates inflation; they called it 'inertial inflation') were the causes of turmoil. The government adopted the Unit of Real Value (URV), which didn't serve as official currency initially but instead as a stable indicator of the value of things. Even though the official currency at the time (Cruzeiro) quickly inflated, the URV stayed the same. All prices had to be labeled in Cruzeiros + in URVs. This was really a psychological war against inflation, since people began noticing how prices were stable in URVs.
Eventually, in 1994, the government announced the currency would change from Cruzeiro to Real, 1 Real being equal to 1 URV. Along with that, several measures like the prohibition of money printing to pay for public debt and laws of fiscal responsibility were adopted, so hyperinflation is structurally inhibited. From night to day, like magic, hyperinflation disappeared. We use the Real up to this day and it's a legitimate reserve of value (albeit not perfect).
Thats pretty interesting thanks!
Wow! I didn't know any of this. No wonder Aryton Senna was so pissed at the Brazilian Government back then.
Planet Money did a great episode on this topic. Fascinating story.
@@intellectualmagician1247 Can you get me a link? Would love to see it.
Not So Fun Fact Everything you just spoke about up until the creation or URVs is happening or has happened very recently in Zimbabwe.
Nice to know there is still a way out for Zimbabwe albeit a hard one especially for the very wary Zimbabwean populus
Wheres the hyperinflation mediaman?
Biggie Smalls predicted it decades ago: "Mo money, mo problems"
Underrated comment!
It finally makes sense now, Biggie was talking about monetary policy 😂
@@nilnil7325 maybe he was assassinated by the deep state.
🤣🤣🤣 I'm dead bro
@@BB-oz8oc No, he is.
EE- Don't make decisions based on a doom and gloom video on the internet
Me- already searching if I can use all my money to buy gold and bury it in my garden
At least buy something with inherent value lol. Gold is only worth what people are willing to pay for it and in an economic crisis, that's not very much.
@@MinecraftMasterNo1 nothing has inherent value. Gold has been a stable currency for over 2000 years: there's a more or less fixed quantity, it's cool and shiny, easy to verify, and it's used in electrical components.
What would be a better investment?
@@mrknarf4438 Exactly.
@@mrknarf4438 Can't eat gold for breakfast. Can't ride on gold for transport. Can't live inside a gold coin. If we really expect some kind of societal collapse, currency is the first thing to go. Value is based on functionality alone.
@@mrknarf4438 food, water, and shelter all have inherent value, and are much more valuable than any form of currency in a true disaster. They are all things that everybody needs to live, and will trade nearly anything for.
Unless technology remains unaffected by an economic collapse, or some semblance of an economy Still Remains, basically all currency becomes worthless.
You'd be better off investing in MREs, water purifying equipment, and other similar products.
In the hierarchy of needs, you need to secure the essentials of Life Before You Secure shiny things
"Weird Maple Dollars"
I died
🇨🇦🍁🇨🇦🍁
Press F for Fresh Maple Credits
@@alezacrespublik6655 Canadian rupees
He..He isn't wrong tho
And +1 love my Canadian Rupees
@Karl Marx Most of the world's physical bank notes are made by DeLaRue in Debden, Essex just outside of London in England so get your facts right you pesky communist bandit.
Canadian peso is still my favourite label for our wonderful currency
I had a teacher in middle school explain inflation the following way. Assume you’re an overworked student and you wish for more minutes in a day, so you can study more. The sun rises and falls at the same time, but you say to yourself, “each hour is now 120 minutes, rather than 60”. You therefore have twice as many minutes in 1 day, and therefore can get twice as much accomplished! … right?
This analogy holds for short term money printing or hyperinflation, no so much for long term modest inflation where value is created, where you do get more real hours in a day
@@JL-qf3hq Problem there is that this is very soft ... if you got more hours a day the price of an hour would go down, so it's hard to say to what extend you have actual inflation and an increase in production.
If something is very soft it's very easy to do bad things and get away with it exactly because it's hard to quantify, at least for the normal person.
@@thrall1342 the hours stayed the same in the original example while minutes doubled. however, assuming you meant the price of a minute would go down, youre assuming that the day is fixed in length. in summer, this analogy would actually be useful, since it isnt fixed, so there is actually a name for it: "daylight savings." unfortunately, in the real world, this time does need to be paid back in the winter. however, in the economy, you can delay this "winter" by increasing the value of each "minute" by actually getting more things done per day. if you can do this sustainably, you can once again increase the amount of minutes in a day and continuously get more things done as efficiency improves.
however, delaying these "winters" more will only make them harsher. fortunately you can make "winters" less extreme by dragging them out over longer periods of time or by reducing the negative change in price of the minutes by encouraging people to use them more.
Private banks create all money (not government). Proofs at bank LIES d0t 0rg
*Goes to college to rack up a 60k debt, gains skills* Ready for the apocalypse as a bard woo!
On the plus side, when McDonald's pays $100,000/yr then your student debt will be easy to pay off!
college is not really a good invest in this regard, during hyperinflation the industries which require high skill are the ones usually stop working (because thats where people's start saving money on). Real estate (especially farmlands), foreign, more stable currencies, everyday neccesities, assets for production (for example farming equipment) and raw materials are the ones which keep their value the most. Or at least these assets were the ones during the biggest recorded hyperinflation, which happened in my country, Hungary after WW2. Well except the production equipments, because those ones are got stollen by the soviets and romanian occupier under "war reparation".
So better buy a farmland in the Midwest or a coal mine which was closed down for some reason (or if you are not the one wanting to invest just put all the moneyyou borrowed into Swiss Frank, thats almost like gold, but since its a currency you can quickly turn into any other currency and buy stuff with it - while with gold, lets just say, in a hyperinflation not that many people actually want your gold right away...).
@@attilaedem101 Solution -> go to medschool, there is always sick people.
Well if there’s hyper inflation you’ll be able to pay off your debt very quickly imagine it halving in value every 15 hours.
Inflation will reduce your debt
this title got me spooked lol
Then it has done its job haha!
You should be
I didn't expect you here
@@jjnc6761 Same lol
Bruh, You're everywere!
EE:"....shorting currencies."
Me: huh, I wonder how you do that.
EE: "You might ask yourself, how do you short a currency"
@@user-tl1yz5vf2e No thank you, I would not like to be scammed.
😭😭😭😭😭
The wants us to pull a George Soros lol
The last part of the video is exactly what happened in my country Ecuador, we used to have our own money (Sucre) but then the stupid bankers broke our economy and we had to adopt the dollar as our official currency. Besides the lost of savings of many people and the huge migration that occurred during that time, the prices of the mortgage were so low that we ended up paying literally 10 cents monthly as a mortgage and that's why our parents could buy houses. As a kid I always wondered why you could pay a house with pocket money but I now understand the importance of having properties instead of cash
There's a reason why usury used to be a capital offense. Making money without producing something of value is fraud.
@@Razaiel nahh, it was anti-semitism coupled with wealth envy. They soon lifted the ban on Usury during the Renaissance remember!
wealth envy is a considerable force
Now that your currency is the US$, it will happen again....
@@stevexracer4309 the interest doesnt have to be high, it just has to be higher than inflation. if inflation is 30% (including wage inflation), then that 20% interest payment is actually generating money, and you get to reap the benefit.
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
― Henry Ford
Yup! Yet we have the IRS the government agency motto should be "We got what it takes to take what you got." Then the private institution known as the federal reserve. Both of their histories have shown they can steal from you either by force having government agents come to your door with the authority of the state and steal by the hidden tax known as inflation.
Goodbye future home,
It’s the least worse economic system
@Deo India tried that for 44 years
@Deo yeah, worked well in eastern bloc for example
Was trying to lose weight, but now it sounds like i might need that extra 60 pounds worth of calories.
Unless communism takes over and you will look like a delicious dinner 😋
For more information +1=7=1=4=4=2=6=9=7=0=0.
Sounds ridiculous but I was thinking the same thinf
Stock up now 😂
www.independent.co.uk/news/world/americas/venezuela-weight-loss-average-19lb-pounds-food-shortages-economic-crisis-a7595081.html
Yep.
The price of everything has been going up over time, I am almost 55 years old, rent, drive a Prius and the cost of new cars and home are unaffordable for me. Both my neighbors are over 70 years old and still working.
MATT RUSSELL: Sorry to be nosy, but what city do you live in and what line of work are you in? I'm only asking because of the direct effects of your location on cost of living, especially real estate.
Utter nonsense. The cost of most durable goods have gone down, often massively (think anything involving a computer or screen).
@@Yaotzin86 : You might want to re-read Matt Russell's original post that you are commenting on. While some durable goods, especially in the tech sector, have dropped in price, He specifically mentioned the costs of RENT and AUTOMOBILES, both of which have risen measurably in the past few years. It takes a lot of price drops in other areas to offset these increases.
@@randyhusband8542 Other than current prices caused by COVID supply issues (and automaker stupidity), real prices of automobiles are the same as they were over 20 years ago.
Rent is not a durable good so not relevant to my comment. Obviously things outside of durable goods have increased, especially rent, healthcare, education, childcare etc.
Above all, I was addressing the claim that "the price of everything has been going up over time". The price of the vast majority of things is flat or down. A few key things are way up, which distorts perceptions.
@@Yaotzin86 In what fantasy world are the "real" price of automobiles the same as 20 years ago? Also your bringing up durable goods was not relevant to HIS post which spoke of two specific categories (rent and automobiles). Anyway, you can believe whatever you want. It's a free country.
Ok give it to me straight, exactly how much DogeCoin should I buy?
Now this man knows what's up.
I am gonna say not many.
All of it.
@@EconomicsExplained so you’re saying SOME?
@@janedoeYT like $15 maybe xD
I really shouldn't have watched this before going to bed...
Thanks for the warning lol I was just about to watch it before I went to sleep. I’ll waiting until the morning lol 😂
+1π6 π2 π3π 4π7 π1 π 9π 4π3π 4
buy silver protect yourself from inflation.
I remember my grandma had some paper money saved from the 1945 Hungarian crisis
It said Hundred million billion pengő ... some crazy denominations. Hard to even comprehend it.
I got a few of those. That was real hyper inflation.
@@thetruthalwaysscary - good for a loaf of bread.
I was a kid in 1990s in Ukraine. At first local currency (a coupon back then) was counted in singles of coupones, then thousands and then in millions. Evey one was a millioner back then.
Tanar ur! :D
Videos like this are why nobody knows what is actually going on
Wdym
@@claireisonline The video is cleanly branded and looks reputable and comes across as unbiased. It is grounded in reality and references real events. However, the video was published in April 2021, and in March 2024, we still have not experienced anything close to "hyperinflation."
There are an uncountable number of other channels similar to this, covering any topic. Vetting them for fact based information or holding them accountable for incorrect predictions is impossible.
It's impossible to tell whether you are being misinformed or not in the moment.
@@lombremic4840Pls
Click on "Newest comments"
You'll see someone explaining what the vid was talking about
5:16 - *90% of the viewers of this video* : "I'm gonna pretend I didn't hear that"
So this guys is saying he doesn’t value his own educated opinion or is a coward?
@@randomlygeneratedname7171 this is called insurance
@@randomlygeneratedname7171 I'm pretty sure you can get sued for offering financial advice without being a registered financial advisor if someone invests in what you tell them to and it goes down, hence why people making content related to finance typically include this disclaimer.
Note: This comment is not legal advice and should not be construed as such.
@@egarcia1360 Thank you for the detailed reply.
@@egarcia1360 You don't need a disclaimer to explain how a disclaimer works
- We don't have any money. Say I give the order to print more money. In how many cases in the past has this worked?
- 0 cases sir.
- And in how many cases has this failed?
- 631 cases sir.
- Ok start the printers. I am feeling lucky!!!
“😂”
Every successful economy engages in huge amounts of deficit spending...is that "printing money2??? Do you even know what you are talking about when you say those words? nope, you're probably a brainwashed kid. Heard the words a bunch on youtube and just say them to sound smart. How does deficit spending lead to hyperinflation when you have the strongest economy in the world? You'll get the bigger picture someday, kid. The USA isn't Venezuela. You do get that, right? lol so dumb....
@@earnthis1 There are some limits to deficit spending. Not to say I know where they are but. However were very high compared to GDP. This video goes overboard, but there are definitely consequences to increasing the money supply. For instance most of these dollars ends up in the Stock Market because the Fed can't mop any of it up. Which creates more and more inequality.
@@earnthis1 I'm not an economist but I'm trying to use common sense to understand what you're saying. FIRST: What (if any) correlation exists b/w deficit spending and printing money? Inflation does increase money printing because you need more money to buy the same things (on the other hand, you spend less if your purchasing power stays the same / decreases). With the economy the way it is, people are still spending because of covid stimulus checks / unemployment checks, but they're spending on smaller ticket items (not necessarily real estate / car of the year / expensive vacation, etc...). So, 1) This is an opportunity for investors that have money to invest and people that are already too desperate for money to "ride the wave" - MORE INCOME INEQUALITY. 2) In this economy, there's an increase in price of goods / services requires MORE MONEY PRINTING, but a decrease in purchasing power / value of money. NOW ABOUT DEFICIT SPENDING: "Deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit, or budget deficit; the opposite of budget surplus" (ALSO: "Hyperinflation is an accelerated rate of price increase on goods / services"(50%/month)).
MY QUESTIONS ARE: Why is it that instead of giving out "free" money (covid stimulus checks/unemployment checks) and shutting down businesses didn't government support businesses, create jobs? What do you think is gonna happen when the "free" money runs out? And how do you think deficit spending is a "successful" government strategy?
@@earnthis1 The only reason we can do all this deficit spending is that we artificially lowered the interest rates on t-bills which has already lead to two housing market collapses and is about to lead to a third. Deficit spending under normal circumstances is moronic. We rigged the system to make it work, and are suffering economic consequences for it. There is no safe store of value, it turned our entire financial system into a speculative market. The dollar will lose reserve currency status in the next decade and will be worthless soon after. You'll get the bigger picture someday, kid. The USA isn't invincible. You do get that, right? lol so dumb....
"reckless printing and borrowing, along with decreased industrial capacity"
hey, I've seen this one before ! - American, 2021
Thats the whole point of the video
It worked fine during the new deal.
@@kerriekupar6466 the new deal was a disaster. We temporarily stimulated some infrastructure growth but we were rapidly refalling into recession, than a continent crisis came along and destroyed everyone else's economies and fixed the problem
@@boblaryson3621 The New deal did help alleviate people's suffering that's the point. But it wasn't enough, ironic that a even bigger Govt spending during WW2 solved it. In Contrast with Reagan's policy of tax cuts and deregulations which started all the mess right now.
@@kerriekupar6466 it really didn’t work out
This aged awfully well, and it shows how those in power have no idea what they are doing. Printing trillions is throwing the economy into fire, and tightening monetary supply isn't seeming to be achieved either.
It not the people In power who are stupid it is EE also the majority of money made was made from private banks through Credit soo…. Fed isn’t the main reason for money generation in the economy.
It didn't age well at all. There has been nothing even resembling hyperinflation.
This video did not age at all well. WE don't have hyperinflation
But... Jerome Powell says only 2%. Nothing to worry about. **sticks head back in sand**
ahh well I am convinced.
Well confidence does actually influence the economy.
Well, he isn't wrong at all. Simply CPI and inflation calculation have no fcking correlation with real inflation for decades now.
For example in my country Real estate prices grew by 300% in the last 6 years, one of the greatest in the whole world, Food and beverages are about 30% more expensive. Our inflation is about 3-4%/year. The salaries didn't go up anywhere near that much, so you can clearly see that something isn't right.
It's just, that you include what you want in the CPI, and real estate prices, rent cost are generously left out or have a very low ratio in the basket.
This is true to every country to some extent. Inflation simply doesn't measure the reality, it takes into account energy, and oil prices, food and clothing, which are generally decreasing in price or slowly increasing and are a very small percentage of your actual spending unless you are very poor and/or have real estate from when it was cheap 1-2 decades ago.
CPI should include rent costs and electric devices more heavily, should include stock and precious metals, and other things if they actually wanted to monitor the real inflation.
The real question seems to me is what can the Fed do in such a situation. Recent attempts to raise interest rates in the US would suggest that the Fed has quite a bit of power to land this. It would be interesting to explore how a bad landing--most likely to happen--compares to the scenarios presented here. Raising interest rates--easy to do from 0%--would make US treasury assets more attractive, but would raise the cost of state borrowing and potentially harm the economy. How would that play out?
@@fenrirr22 CPI Does include rent cost and electric devices. Yes, the housing crisis is something that is happening all over the world but most people don't realize that the total cost that people pay to own a property(property value+ínterest) have not increased as the same rate that property value have increased and that's because interest rates have been falling all over the world so obviously that makes debt cheaper, that increase demand and that's why the value of asset have increased but you have to consider the real cost of borrowing to own a property/asset(property value+interest)
Grabbed my popcorn for the video, grabbed another for the comments, both needs to be digested separately lol
Clicked faster than China will yoink your digital yuan if they think you're not spending enough.
Hahahaha underrated comment brother 🙌
It'll just expire if not spent
Fedcoin is going to replace the usd within 2 years
@@charlebrownga and i won't be using it because crypto becomes worthless during a power outage
@@alecciarosewater7438 no one ever seems to realise that. In my bit of Australia we get blackouts in summer due to extreme heat and many of our customers cannot shop because our payment machines go down.
This would explain why some major corporations are spending 200% over market to rush out and purchase large tracts of homes.
I see that you have also fallen for the Blackrock fake news.
@Andrew Warther No one is taking anything lol. Its also a great investment assets always are when the government is pissing capital.
They want real world assets, desperately, and not assets from industrial supply chains that have been diminishing across the Western world.
@@toddpick8007 yeah, for some people, until the economy goes off the rails.
@@EzioAuditoreDaFirenze99 The government literally backs housing lol.
The housing market here in Canada is going crazy with prices up 30% - 50% on most places. I think we will see things get a lot worse before they get better.
@@리주민 jokes on you, I already live in my car cuz I can't afford anything better :'(
canada has been on a crash-course for quite some time now and the lockdowns (paired with psychological effects of the virus) will result in a total disaster
@@리주민 Mass production wouldn't do much for prices - most of the value in the price of a home is in the land, not the building.
The housing market is hypersensitive to interest rates, rising yields will temper the inflation and some further interventions may be employed. Canada house prices are some of the most elevated in the world though, because they barely saw a correction post GFC.
However I think given the coming boom and easy credit conditions Canada will be able to ride the wave into the inevitable bust which is due around 2026/7
This. And it's not just people buying houses. Pension funds, hedge funds, and banks are now directly buying real estate.
So, it's gonna make 2008 look like a speed bump when it finally collapses
Me: Just finished studying. Let's watch something on RUclips.
First video on the homepage: HYPERINFLATION IS ALREADY HERE
Me: *P A N I C*
P A N I K 😁
Nah, his videos are usually good but this one is kind of a joke. Even the chart is wrong. 8 major issues with what he is saying:
1. Don't use the MS1 chart to illustrate money printing when they changed the definition to include liquid deposits in March 2020. It completely skews the picture and is irresponsible data presentation. The fact that you say 1/3rd is newly printed while showing 2/3rds or 3/4th on the chart makes it seem like an intentional misrepresentation. (See the definition below the chart: fred.stlouisfed.org/series/M1SL)
2. The S&P has increased in value due to higher future earning expectations from make up spending, technological skewing (big tech firms in the S&P have benefitted (Amazon, Apple, etc.) while small manufacturing and hospitality firms outside the S&P 500 have been hit hardest), the discount rate significantly falling and raising the value for future firm make up spending earnings, and non-price sensitive retail investor savings increasing equity inflows.
3. Analyzing the S&P 500 as indicating high inflation expectations seems pointless when there is the TIPS (Treasury inflation protected securities) market which actually prices in inflation expectations of market participants. They are still below 2.5%, far from hyper inflation.
4. CPI hasn't significantly increased despite raw material price increases as (1.) firms are indicating they are limiting price pass through to consumers to prevent an impression of price gouging (see CFO survey), and (2.) certain items like oil and services have been heavily discounted during the pandemic.
5. The CPI food category has increased about 5 to 6% with some categories up 9%, and new housing build costs have notably increased due to raw material increases. Its not like we haven't seen inflation.
6. Unlike the hyper inflation examples noted, the U.S. is not printing "cash" and transferring all of it to individuals purchasing goods. Instead it is increasing bank reserves through asset purchases, which can be monetized via the spending of firms borrowing or purchases of newly issued government debt. So far this monetization has failed to materialize as high savings and capital regulations limit banks ability to lend out. As such, the FED can easily reduce these levels via open market operations if inflation picks up above 3% because there will not be a need to further finance the government.
7. There is no "doomsday" if the scenario is economy opens up, people spend pent up savings, inflation spikes, tax revenues also spike, less government debt is issued, and the FED sells treasuries on the open market to reduce reserves. The only way hyperinflation occurs is if the decrease in production is sustained for an extended period of time, or people lose faith in the U.S. dollar (an extremely remote scenario).
8. There has not been large growth in borrowing with respect to securities or mortgage investment (ex. refinancing) and banks have been tightening standards. If you look at home sale volumes you will notice 1. supply is extremely low due to delayed construction (new home sales and housing starts), decreased new listings, and less evictions (existing home sales), and 2. existing and new home sales hasn't massively spiked. Using higher real estate prices as evidence of individuals looking to hedge against inflation is kind of a joke.
Econ Major’s on the outside 😁 Econ majors on the inside 🤬🤮😭😵
@@ultprim4532 because it’s RUclips I just want to specify I’m asking a legitimate question. Do you think the current administrations plan to invest in infrastructure suited towards emerging tech markets is a good way to maximize the economic recovery.
@@Striker163videos No, but I wouldn't think of the infrastructure proposal as same year stimulus given it would take 4 to 5 years to be fully executed. Instead, I think it os a relatively reasonable way to take advantage of low interest rates and moderately higher inflation to invest in America's future (especially after a good amount of compromising to get moderates on board). Pandemic or no pandemic, we have been needing a large infrastructure package for at least a decade now.
With respect to the contents, I would prefer higher traditional infrastructure allotments and less for electric vehicles and rural broadband. My preference would be legislating charging station plug standardization at a national level and subsidizing their construction at exiting gas stations instead. For rural broadband, its just unreasonably expensive and doesn't have a clear ROI.
With respect to the climate change preperation and prevention, workforce retraining, and business and manufacturing support (especially for chip production) I am in favor.
this guy has made a documentary for free. congrats mate you do beyond amazing work.
He got paid by Skill Share.
Right?? He's taught youtube (in the toality of his content) *exactly* what two years of econ at a decent school did for me... and he even goes out of his way to say he's amateur!! The best kind of human.
"Millions of people out of work" while at the same time "Largest worker shortage in US history".
Maybe, and this is a crazy idea, workers should be paid more.
We are a country of paradoxes now. There is an alternative to hyperinflation and that we are in a massive bubble where demand is driving future demand, which may be worse. The investments could explain everything and, unlike the past, safe and sound investments don't really exist in the market now. Food costs could be driven by the commodity market. As for the money being printed, what alternatives exist? And regarding the workers, why would a person want to go to work, possibly get sick (the pandemic isn't over and the disease variants are concerning) for minimum wage. I can see why people are unwilling to take these jobs. Even if the result is a slight loss, it may still be better than the reductions from the cost of working (transportation, dress, etc.)
@@SeanMintus Maybe, and this is a crazy idea, the government shouldn't print money and devalue your savings to pay people not to work.
@@SeanMintus Maybe if the government ran things right, you wouldn't NEED to be paid more.... You're just running yourself in a cycle of inflation with your thinking.
@No Secrets Fishing Alot is not a word. Teach me more about microeconomics.
Wow, I feel like I will start reliving the major events in history.
We already are m8
I don’t know whether to feel excited or incredibly scared to be living through historic events.
We've already had the pandemic.
It's the twenties again. Not 1920s but 2020s. See 1920 for reference.
Watch out for 2039-2045
Ay, my man will come back again after they reject him from art school. So hyped!
10:25 "If an average grocery trip became 50% more expensive that same year..."
Argentina: I'm in this picture and don't like it
It's already happening food cost in my area already up 20%
@@8Maduce50 where are u from?
Are physical silver and gold of value in Argentina?
@@MG-ul4kc Yes, but as of this moment buying usd is more common, or things that have a practical use and then you abuse the credit card dues. But even then not many can actually have the luxury of "saving" or protecting themselves from inflation bc salaries are not enough to meet the basic needs. Poverty rate as of march 2021 is at 42%
@@v44n7 new England
The quality of these videos are unbelievable.
Thank you mate!
It's believable
They're good, but it's not unbelievable. I don't like hyperbole.
@@pistolen87 maybe hyperbole doesn’t like you! 😂
Usually yes, but not in this case. He played into the hype and went way overboard into speculation:
1. Don't use the MS1 chart to illustrate money printing when they changed the definition to include liquid deposits in March 2020. It completely skews the picture and is irresponsible data presentation. The fact that you say 1/3rd is newly printed while showing 2/3rds or 3/4th on the chart makes it seem like an intentional misrepresentation. (See the definition below the chart: fred.stlouisfed.org/series/M1SL)
2. The S&P has increased in value due to higher future earning expectations from make up spending, technological skewing (big tech firms in the S&P have benefitted (Amazon, Apple, etc.) while small manufacturing and hospitality firms outside the S&P 500 have been hit hardest), the discount rate significantly falling and raising the value for future firm make up spending earnings, and non-price sensitive retail investor savings increasing equity inflows.
3. Analyzing the S&P 500 as indicating high inflation expectations seems pointless when there is the TIPS (Treasury inflation protected securities) market which actually prices in inflation expectations of market participants. They are still below 2.5%, far from hyper inflation.
4. CPI hasn't significantly increased despite raw material price increases as (1.) firms are indicating they are limiting price pass through to consumers to prevent an impression of price gouging (see CFO survey), and (2.) certain items like oil and services have been heavily discounted during the pandemic.
5. The CPI food category has increased about 5 to 6% with some categories up 9%, and new housing build costs have notably increased due to raw material increases. Its not like we haven't seen inflation.
6. Unlike the hyper inflation examples noted, the U.S. is not printing "cash" and transferring all of it to individuals purchasing goods. Instead it is increasing bank reserves through asset purchases, which can be monetized via the spending of firms borrowing or purchases of newly issued government debt. So far this monetization has failed to materialize as high savings and capital regulations limit banks ability to lend out. As such, the FED can easily reduce these levels via open market operations if inflation picks up above 3% because there will not be a need to further finance the government.
7. There is no "doomsday" if the scenario is economy opens up, people spend pent up savings, inflation spikes, tax revenues also spike, less government debt is issued, and the FED sells treasuries on the open market to reduce reserves. The only way hyperinflation occurs is if the decrease in production is sustained for an extended period of time, or people lose faith in the U.S. dollar (an extremely remote scenario).
8. There has not been large growth in borrowing with respect to securities or mortgage investment (ex. refinancing) and banks have been tightening standards. If you look at home sale volumes you will notice 1. supply is extremely low due to delayed construction (new home sales and housing starts), decreased new listings, and less evictions (existing home sales), and 2. existing and new home sales hasn't massively spiked. Using higher real estate prices as evidence of individuals looking to hedge against inflation is kind of a joke.
Yeah this vid didn't age well lol
This makes perfect sense now - no wonder a house doesn't stay on the market for more than a week anymore - ITS LITERALLY FREE REAL ESTATE
@@saraha2100 the us will never declare bankruptcy. All of our debts are payable with US dollars.
@@saraha2100 I guess we'll ignore the $4 trillion in low interest loans given to big businesses only and point the finger at small lenders instead.
@@saraha2100 I'm saving money now for this event to happen and it will.. I will be buying a house or most likely two✔️.
@@nee-grow You don't sell it, you pay it off with something else. That's how a lot of people got ''free'' houses in Yugoslavia. They paid off their bank loans with a single salary. The markets will stabilize in a few years and you can sell it off for better value.
@ Yep, that's what's going on in the US now. Hedge funds buying up all available housing before hyper inflation and waiting to resell. Most of these homes in my city are currently just sitting empty.
Don't worry, you'll own nothing and you'll be happy 🙂
While starving
Truly living up for your username, comrade.
@@shurik3nz346 No, you won't. You vill eet zee bugs.
Klaus Schwab
*That sounds great, reset*
Everyday stuff like this pushs closer to returning to monke and becoming an appalachian mountain hermit
"dont base your decisions on a doom and gloom video on the internet" there is alwys a person who thinks the end is near.
2022 made this video look like a prophecy
When money literally becomes worth less than the paper it's printed on.
Not worth the money it's NOT printed on.
I mean, every penny costs about 2 cents to make and we still make them ... for some reason heh
@@3nertia when we figure taxes in to things (income tax, sales tax, and so on), we do not always end up with a 5 or 10 at the end. For those who make a set income, income related taxes may not differ a lot.
@@MrHarr0073 Uhh, okay ...
@@3nertia Current Copper clad Zinc pennies cost between 6-9 cents to mint. A solid Copper penny from before 1983 is now worth over 11 cents just in material, and would cost over 20 cents to mint today O.o
Pennies are very cost prohibitive to manufacture. Its also why we got rid of the American Half Cent, the Half Dollar, as well as dimes, nickles, n quarters made of silver, and several other previously minted coins o.o
That whole 'debt as a hedge against inflation' thing was fascinating. Don't know why I hadn't considered it before. I do feel a little bit sick though.
That's the reason our economy became debt-based in the 70s; to control inflation.
And all it is is a hedge. Meanwhile, the dirty crooks printing that money and handing it around to their friends with their mysterious balance sheet are the real winners.
Actually, IMO that's a bit of a canard.
The fundamental principle of hedging is to bet against the market and there's a better way than borrowing which puts you at risk.
Simply covert your assets into an alternative, anything at all that isn't going to follow the trend of what you're betting against.
If you think another currency is going to do better, convert to that.
If you think all currencies are going to crash, then buy something else like your gold bullion.
But if you think that gold bullion won't sufficiently protect you, buy something else, lime maybe a farm out in the sticks where you can build your "end of the world" bomb shelter.
In other words, just convert to whatever you think will retain value or appreciate to get you through Global Armageddon.
Take massive amount of debt, buy silver and wait a few years = ggwp
Because of this video alone, Imma go borrow so much money and buy so much land! My future is all in your hands EE. I see no problem with this!
I'm literally just doing this. Just maxing out my debt capabilities buying a farm property. Self sufficiency combined with protection against inflation
This is only possible if you dont depend on the land for income. Theres future potential, but you'd have to take care of mortgage until then.
Mr Economics Explained told you : “ Don’t rely on an internet doom and glood video!” 😄
@@martenkerkhoff6600 that's just what mr ee wants you to do it, reverse psychology!!
Bitcoin! Go for Bitcoin! 💵💵
how to be an economist in US 2010: Its over, money printing & hyperinflation is coming. 2011: Its over, money printing & hyperinflation is coming. 2012: Its over, money printing & hyperinflation is coming. 2022: Its over... mone.... 2222: Its ov...
2030.. it’s over hyperinflation is here
Have been waiting for this topic to be covered by the Economics 👑
Hopefully I do it justice :)
Same!
he has 2 hyperinflation videos already
@@asspoo5540 yeah but not about America's current situation.
“push back the retirement age back a few years” by the time us millennial/gen z will be retiring we’ll be in our 80s 🙄
20-30 years, retirement will be the least of your worries.
No retirements for millennials/genz ... maybe not even gen x.
And we will be living until we are 150....
You are really expecting retirement?
retirement!? you mean that real. I thought that was a myth. A crazy dream told by the insane or drunk memers in dusty old discord servers. Nothing but a old legend.
The thing is, the previous crisis had one nation ruin their economy, but this time around everyone is printing money, the value of basically every currency in the world is bound to go into hyperinflation
Good point
No. No one is creating as much money as the US is creating US Dollars... By far
U.K have printed I think
I think one of the most common mistakes made by most people is they think Fiat company isnt backed by anything. It is, its backed by the production of goods and services that people find valuable, that they are willing to exchange their medium of exchange(time and effort) for.
As an Argentinian, we breathe this kind of stuff.
Los argentinos desayunamos inflación jaja
ojo que se se vienen los economistas de la uba y catedra de kicillof a decir "exchange rate inflation"
Con los heterodoxos de flacso unsam y todos esos nidos de ñoquis en el gobierno no llegar a una hiperinflacion va a ser un milagro
@@v44n7 Economistas de porqueria. Que sólo conocen la misma doctrina y no intentan desafiar sus conocimientos. La UBA Ciencias Sociales es enemiga de la intelectualidad y el pensamiento libre.
Paul Singer
"Numbers don't lie; people do."
- Penn and Teller.
Penn should know. He lies a lot himself
@@tannerjablowski3192
Penn mostly lies on stage as part of the act. He does have the delusion that Libertarianism is a viable system. There is one nation with a Libertarian government, Somlia.
He is simply mistaken, not lying in real life.
@@ethelredhardrede1838 I don't think you understand. While I actually tend to agree with them on a lot of issues having been a long time libertarian, the truth is that they are liars. Just like The Daily Show or Borat, they defame people by taking their words out of context, splicing clips together and so on. They've been caught in the act. Call it entertainment or whatever but it is deceptive.
@@azxctbygalumbo9516
"I don't think you understand. "
Not all that likely. I suspect that I do, but lets see.
" having been a long time libertarian, "
So you have delusions as that is as silly as Communism, both require some sort of Alien beings, not humans to function and I suspect such being cannot evolve in the real universe.
"Just like The Daily Show or Borat, they they defame people by taking their words out of context, splicing clips together"
The Daily Show and Borat are not similar.
"They've been caught in the act. Call it entertainment or whatever but it is deceptive."
OK I understand that you make unsubstantiated claims and conflate humor of very different types as if they were all the same.
Lets see who you subscribe to. No one publicly. That is OK same for me.
I just have the suspicion that you are a Bubble Dweller. And you being a Libertarian supports that.
Thank you for unsubstantiated assertions. At least give an example.
@@ethelredhardrede1838 you state that the daily show and Borat have nothing in common, but likewise you don't provide any substantiating evidence. You just deny without any reasoning. You are a hypocrite and a liar. The fact is that regardless of audiences of style, both seek to undermine competitors to their information monopoly with lies and defamation to discredit. You can't refute me so you're just changing the topic.
17:25 I saw this very thing happen in Venezuela. People would pay their house loans laughing. Then credit disappeared from the country. Nobody in their sane mind would loan money
That’s why Venezuelans now use the U.S. dollar.
All the U.S. needs to do is pass a constitutional amendment to limit money printing to just buying U.S. government debt (like it was before 2008) and paying back the deposits at banks that fail, and then limit U.S. government debt to only be used to purchase physical goods (solely owned by the U.S.) for capital investment that can be proven to increase economic productivity by more than the cost of the debt (such as by building automated manufacturing plants).
But what if the debt issuer redenominate the debt value in gold or other currencies in case of hyperinflation? UNO reverse card 😬
I think my favorite false choice in the video was "either the stock market is irrational or the dollar is weaker." As if it can't be both!
I’m starting to think maybe governments don’t know what they’re doing.
This is my political stance.
All of human history as been humans not really knowing what they're doing and yet still making it work. We're not flying, just falling with style.
Keynesian economics always lead to hyperinflation
Better late than never
@@aj9969 Yup 2000s the golden age of keynesian economics
You don’t know how fast I clicked. Thank you for you posting regularly without ever sacrificing quality. Keep it up! 😄
Thanks for the kind words mate :)
When a youtuber tells you you're watching a "Doom and Gloom internet video" and you decide to keep watching it anyways.
I spit tea from my mouth seeing Minecraft iron ore block being used to represent iron ore in a economics video.
You noticed that too? Hahaha 😂
timestamp? xd
@@ashraile 11:32
5:20
"Don't alter your financial decisions based on this video"
*Me who has already just withdrawn my life savings to buy silver:* wait, what?
@Mathias Elslidnul Please elaborate on your negativity towards bitcoin
same but dogecoin here. TO THE MOON!
@khana ristobal the internet is NOT controlled by the government
@khana ristobal Literally everything has an intrinsic value of zero
@Mathias Elslidnul You don't understand marxism if you think cryptocurrencies are somehow communistic
Everything has gone up in Supermarkets in Australia. Everything that was $2 is now $2.50
Same here in EU, a whiskey I have been buying for years at 17.99€ is 21.99€ now...(despite the fact that they haven't printed as much money here, I checked the monetary supply graph)
Same here in Midwest USA. My normal basic grocery shopping was almost, not quite, double.
Is it the same if I say A 1₱ chips has less content's than 5 year's ago?
@@jackwilson5542 actually, the euro also just got inflated- look at the video about the credit that the imf granted to among other currencies, the euro. It’s a less visible and common way of issuing money but it’s likely to be felt in our pockets. You can see the video by Willem Middelkoop.
Same in UK
About an hour ago, I thought about this and was like "man, I wish EE would do a Video on the topic".
Been thinking this for months tbh.
Too bad EE doesn't seem to understand what so called "money printing" is as it relates to the real money supply. QE (Quantitative Easing) that most point to as "money printing" does not actually add any new currency into circulation. In fact, it does the opposite. The stimulus payments, on the other hand, have added to the money supply. But, for that money to cause inflation (much less hyperinflation) you would need to see the velocity of money increase or at least stay stable. Instead, velocity has fallen off a cliff... Long story short, we're more likely to see deflation than hyperinflation. And I find it upsetting that a channel branded as teaching economics either fails to understand or ignores the data. See channel "Steven Van Meter" and "George Gammon" or podcast "Macrovoices" for better economic information.
@@unsettledonpurpose Remember, this channel is for macroeconomic dummies, not folks who actually fully understand the ramifications of the current economic climate..
Money and Macro is a far better economics channel if you actually want to learn.
This channel is good for entertainment only.
"Don't alter your financial decisions based on a doom and gloom video you saw on the internet."
Me : *Driving North to the Canadian border, back to my homeland*
Too late, mon amie.
It's not that much better up here tho as these graphs show tradingeconomics.com/canada/money-supply-m0 and tradingeconomics.com/canada/money-supply-m1
TLDR: Our dollar's M0 supply increased by a factor of 4.5 and M1 supply by a factor of 1.4 (for now) which I think is less bad than the US's M0 and M1 supplies but still pretty bad?
You think all the socialist countries are spending less then the US?
@@falconJB first off Canada isn't socialist its a Social Democracy under a Constitutional Monarchy, socialism is anti Monarchy. As for spending we aren't spending anywhere near America, our debt to gdp ratio is still well within managing levels. Now our issue is our reserve is backed by gold and USD our economy will take a hit but we likely won't have to default on our loans like America will coming this summer.
@@joshuamarshall1718 Tell that to everyone in Montréal, living under week 14 of the 4 week curfew, part of the second year of the 2 week lockdown. A curfew for several million people because the state run hospitals couldn't handle a couple hundred sick over the course of many months.
A wonder why Canada hasn't already keeled over dead with how fragile its medical system apparently is. Social democracy at work.
@@falconJB America cut taxes mostly for the rich a couple years ago and maintained it's level of spending. first world "socialist" countries tend to have national taxes that at least somewhat support their level of spending. America does not.
When you were talking about buying a house for the price of a marble, it reminded me of a news report I watched a while back. A Venezuelan woman was saying to the reporter, that to buy couple bananas, she has to pay an amount similar to what she paid for her house.
yeah, my econ professor showed a similar example when we talked about hyperinflation in venezuela... scary times (but also really interesting to study)
@@geddycurrent1174 can you explain how please? i'm lacking knowledge on the matter
@@geddycurrent1174 what sanctions? I'm Venezuelan and we've been in hiperinflation since around 2013 thanks to the destruction of our industries and the funding of government expenses by printing inorganic money. Is has been till the last few years that sanctions against individual corrupt politicians here were placed due to the abhorrent amounts of money they've stolen these pasts 20 years. Just the daughter of Chavez is estimated to posses around 4 billon dollars originated form the state controlled oil industry, so these past few years they were sanctioned from spending it abroad and some of their personal accounts in Switzerland and Andorra have been frozen.
We are still able to export our oil and other resources to other countries including the USA and China but due to the low oil prices and no industrial capacity public or private, they were left with no money to support their public expenses which are huge thanks to insane socialist economic policies. In 2019 the public sector was estimated to be around 75% of the GDP of the entire country and the crisis is even worst now with covid, but we don't now the exact numbers because the government has not released any official economic report since 2018 to not damage even more their credit rating.
So you tell me what sanctions are you talking about? because all I've heard is a bunch of ignorant rhetoric about economic sanctions as if there was an actual embargo in place but they actually are aimed to government officials involved in corruption who right now have the monopoly of the oil industry in our country, which by the way they also destroyed.
Imagine if you took out a big loan to buy a mansion. Paying back that couple of million Bolivar would be like buying a marble.
@@tylerdurden3722 I'm not sure what you mean there, but if you want to know it's been years since there was any kind of loans available in the oficial currency (because of hyperinflation of course), also banks have close to no guaranties of been repaid back so the banking system no longer exists for common citizens along with credit cards
What is unique this time is that every country on the planet has run the money printing machine 24/7.
This is not unique at all. Just look at the policies adopted by virtually every nation on earth nearly a century ago. It was what helped trigger the Great Depression. Every country devalued their currency as rapidly as possible in an effort to counter each other’s devaluation. It was termed “Begger thy Neighbor.”
@@arthurlecuyer1906 every since 1919 brotha ! The East Indian Trade Company runs the world.
It was all the design of this PLANdemic/SCAMdemic.
We humans are idiots. We never learn.
@@quisqueyanguy120 it’s not that we haven’t learned ; it’s the fact we haven’t revolted !!
2021: yea right,
2022: EE "more popcorn anyone?"
Brazil recovered from hyper inflation with a mix of 3 measures:
-Fiscal responsability
-New currency anchored in the dollar
-Market opening
Anchoring to the dollar will not be a good thing.
Yes, but how will America do that.
@@gromm93 We've got to make a bigger, greener dollars
@@gromm93 They will go for the digital Yuan 🤣
It's finally time for the nuyen.
1. You missed Argentina's Hyperinflation.
2. Around 1993, in Serbia/Yugoslavia my parents actually payed off 15+ years of outstanding loans for building a house with a automatic writeoff from his monthly salary. It was maybe 10% of his salary. At the same time, my parents used 100-200 DEM (in "old foreign currency savings" in state bank) to fully buy "solidarity flat" of my fathers ex-wife and daughter, some 40-50m2. many were using checks to pay for stuff, even bus ticket on 30km drive and then exchange DEMfor dinars FEW DAYS LATER and then deposit value of written check to checking account. It was a big difference in value between time of writing a check and time it was collected from your checking account.
3. VERY IMPORTANT issue is that OTHER reserve currency countries are ALSO printing huge amounts of currency, EU and Japan, and that synchronicity is what additionally prevents start of hyperinflation, all reserve currencies are depreciating at the same rate and you can not switch to other one allowing first one to fail. It looks absurd, and every single trade war was fought that your currency WEAKENS against other currencies, so you can export cheaper product and gain market diminance. USA only accused China when Yuan would depreciate against a dollar, never other way around.
4. Last important notice: There are 2 types of loans, with fixed and variable rate. When you have fixed rate, depreciation of currency/inflation can help you pay off your loan fast. But variable rate is more sinister, it is pegged to some index that will rise along with inflation and then you get same income in currency but your loan gets more and more expensive. Majority of bad loans in 2007 mortgage crises in USA were with variable rate, I expect all the current loans are also with variable rate.
I don't think he claimed to provide an exhaustive list of hyperinflation events. He also omitted Zaire in the 1980s and 90s.
i think that third one is a very important note right now, eveyone was brought down by the corona virus, how would only the us face vengance, its either everyone or almost no one suffers thruu hyper inflation
@@klutz3955 The graph I saw, stoping around middle of 2020 was that Japan printed much more and EU just slightly more then USA. China keeps the level or reduces it just slightly.
"OTHER reserve currency countries are ALSO printing huge amounts of currency" - true and visible, even in non-euro countries like Poland. This is what I saw months ago and that is my question: So, if we all print and inflate, how we gonna see it, since the counterweight currency also inflates. It is easy to make Weimar/Hungarian or Zimbabwe money to hyperinflate, since they are compared to Great and Real FAIT currencies (USD, EUR, GBP). Harder to see this if all together print out. Except, if you have a reference point such as: gold, real estates, land or..Bitcoin - which all clearly showed huge inflation immediately and still going up (BTC is a separate bubble topic, which is bonus mechanism to crash the economy in this state of affairs.)
Good comments in general and congrats to your parents for sound financial decisions coming from good knowledge (another point for how financial education is important) :)
From my Polish perspective, we had similar story - buying my grandparents' block apartment from state during transition for I think 100 USD? It is so surreal that I never believe myself when I recall this story :) Thing is - foreign currencies where band in PL throughout communism and almost nobody thought about this buy out option, cuz raised in communism they were not prepared for capitalism future ahead...
He wasn't trying to show every single hyperinflationary event. There were a ton more than what he showed in the video.
Over the past year, as people start to feel the early effects of inflation, the price of gold has remained flat while crytpo has soared. Here in Canada, the official CPI number has remained flat, while housing and grocery prices are driving Canadians toward insolvency. Alarm bells are ringing.
The Canadian dollar is still overpriced. Inflation can not stop, and the economy suffers, that's really bad governing....smh
That's our Trudeau government for you, he is shafting us big time. I blame the idiots who voted the mob in power, not one but twice.
thats whats happening in the US too we are going to go through another 2008 housing crises prices are way above the prices they were in 2008 and people are having a hard time paying loans especially when prices of things keep going up.
@@peteroreilly8060 you’re assuming the peoples votes count. Funny how they never to seem to pick good representation.
@@hyy3657 The saving grace is that CAD is a petro dollar, rising cost of oil is a godsend for Canadian economy.
Video aged like milk. Anytime someone claims hyper-inflation is around the corner, I usually take their prediction with a grain of salt. We never had a reason to believe that was a likely outcome.
Someone came back to say that watching this vid was the best decision of his life
Convince them to buy a home before the rate hikes
"People on here acting as if he was predicting 1000% inflation when he was talking about years of high inflation"
Gotta say that I am disappointed that EE would make a video like this.
1. The use of a ridiculously facile straw man argument that maybe “the US is too good for inflation” to sell your thesis that hyperinflation is inevitable is beneath the standard of academic rigor established by this channel’s past videos.
2. The video ignores what a likely economic recovery from a “once in a century” global pandemic would even look like over the next two years, thereby avoiding a view of the big picture, again, something this channel normally doesn’t do. And to suggest that the situation the US is facing is essentially the same as the Weimar Republic or Venezuela’s failed economy is IMO reduced your argument to a joke.
3. The message of this video is oversimplified to the point that it essentially argues that government economic stimulus is always dangerously likely to lead to hyperinflation, which no serious economist would argue.
I only point these things out because I am a big fan of this channel and I would hate to see it go down the path of sensationalist cable TV infotainment programs. You are better than this clic bait garbage. Pull down the video and do the work you know you are capable of. I know you can do better than this.
People have been claiming this inflation craze for 40 years. It's detached from reality. Good points to this dumb dumb video for youtube Libertarians. "BUY GOLD OR BITCOIN"!!! lol, such bush league work from this channel.
An economist just argued exactly that, and seemed serious. While you could argue that the level of seriousness was not what you had in mind, I would reply that seriousness is not quantifiable and therefore subjective.
Government economic stimulus always leads to inflation, since inflation is primarily driven by the supply of money, and increasing the supply of money is the only way the government can stimulate anything. This has been agreed upon *by every serious economist* since stagflation in the '70s. Dangerously high levels of government spending are therefore dangerously likely to lead to hyperinflation. The only difference between the two schools of economic thought on government spending is that one says the effects of inflation always outway the benefits of the stimulus, while the other argues the converse can occur.
You have presented a far more "ridiculously facile straw man" of this video's argument than it has presented the arguments of modern monetary theorists. Any explanation of their ideas is literally the thesis statement you criticize reskinned in more flattering terms:
"Modern Monetary Theory (MMT) is a heterodox macroeconomic framework that says monetarily sovereign countries like the U.S., U.K., Japan, and Canada, which spend, tax, and borrow in a fiat currency they fully control, are not operationally constrained by revenues when it comes to federal government spending." -Investopedia
Is it not fair to say that an argument that "a certain class of sufficiently independent countries isn't constrained in spending" is equivalent in all but the most superficial ways to saying that a member of that class of countries is "too good for inflation?" After all, the only reason revenues would constrain spending is inflation.
It is evident from your second point that you entirely miss the gist of the video: precisely the "big question" it leaves the viewer with is whether or not the pandemic and associated spending are sufficient to induce conditions for runaway hyperinflation.
@@GIANTfromSIBERIA Hit the road, troll.
@@duncanw9901 I never argued that (all things being equal) increased government spending of a fiat currency without a corresponding tax increase and/or other monetary measures to offset the spending does not cause inflation. Naturally, that is indisputable.
What is at issue here is this channel's hyperbole related to this specific US COVID stimulus and insisting that hyperinflation is an inevitable result. As stated by the author, this crisis is a "once in a hundred years pandemic" not an economic collapse caused by political instability, international law, or shifting global economies.
The COVID-19 crisis in the US is virtually self-imposed because we've chosen as a society to place greater value on human life than we do on a functioning economy, so national (and private business imposed) economic shutdowns were put in place. (Of course you could also argue that without the shutdowns the death toll could reach a point where it would have a significant effect on the economy all on its own, but that's beyond the scope of our discussion.) Because we've artificially shut down businesses and put people out of work, the money that would have been generated naturally through economic activity was lost. The two stimulus bills are intended to replace those funds in order to keep the economy from collapsing by maintaining a portion of consumer and business spending of the stimulus funds. Now that the COVID restrictions are lifted, we can return to work and largely pick up where we left off. This is radically different from the types of economic crises used as comparisons at the start of the video.
The "big question" you reference is basically a 'get out of jail free' statement intended to be a foil for the other claims that allow the author and like-minded commenters to claim, as you have done, that this isn't what the author meant. Nevertheless, the author's thesis is crystal clear in the video title, not to mention essentially all the content except of the rhetorical question you cite at the end, thereby making the question, in my opinion, purely rhetorical, rather than an actual invitation for viewer consideration and deeper investigation.
Again, I'm a major fan of the channel and I was just disappointed with the lack of investigation into this specific economic crisis when comparing it to the economic crises in other economies stated at the start of the video. This just isn't up to the investigative standard this channel has established up to this point. It's clickbait.
In the video, you cite increasing prices of raw materials as evidence that we have hyperinflation. One thing I’ve been reading over and over is that demand for raw materials dropped sharply during the pandemic and, now that demand is increasing again, suppliers of raw materials are struggling to ramp up to meet it. Curious what your thoughts are on that.
Thanks for the great videos!
Economy of scale and fixed costs are a big part of it. If you have a mine, you would need to spend a certain amount just to keep it from falling apart and you can only fire so many people without affecting future operations. When the volume drops, those costs would have to be passed onto the buyer. When the volumes come back, you still need to rehire people, train them, reopen your mine and so on, all incurring costs. Once that's over though, it becomes much cheaper to produce again.
Increased demand and reduced supply is what causes inflation. If everyone suddenly has a million dollars, they start spending like they have a million dollars, but ultimately there are only so many people who can work, so the prices go up. The prices going up is measured as inflation.
Why are you talking like any of this is over? We are just starting to enact nightly curfews in germany becouse neither warantless searches of homes to make sure you didnt have to many guests nor concentration camps for quaranteen breakers seem to work.
Also, under no circumstance will i earn money in any way on the white markets knowing theyll shut my entire operation down for the next emergency.
@@purplej12 this explains the last part of the vid for me
@@rtg5881 What?
The perils of talking about economics online: "don't base your future investing on a doom and gloom video ok?"
If you know what hyperinflation is, then you can't say it's already here in America.
It’s a figure of speech. Like imagine a massive earthquake generates a Tsunami off a small pacific island. In the time between the earthquake and the arrival of the tidal wave, you could say that the island “has already been demolished, you just don’t know it yet.” The point being that the the causal event has happened, therefore the effects are inevitable even though they haven’t been realized yet.
@@tylerbrown4483 It's click bait.
I'm 5 min in, and i just liquidated all my assets so i can buy gold.
@skutch Blobaum gold will always be valuable though
Gold? Amateur! Toilet paper is the future!!!
(as this is internet, I have to add ;) )
I'm 2 mins in and I'm burning my house down and terrorizing my neighborhood
My backup is farmland. It worth around 500k gbp and bring in a pitiful amount of cash from wheat grains. Of which I get around 400gbp per year. Its something I inherited , I could sell it and Reinvest it in the u.k where I live and was born. But something holds me back , if the world goes tits up atleast I'll have a source of food.
Buy silver, the real thing, not an ETF.
the tl;dr of this video on "what can you do to prepare for it" is "it's too late"
Tl;dw*
This is why home buying prices are insane right now.
Partly anyway. People also realized how much it sucks to live in a small apartment when you can't go anywhere.
you can buy assets.
buy something now you can save later. Say, instead of having paper money, you buy cryptocurrency or just do something with that money.
paper money is going to lose money a lot harder than say, technology (which still loses value pretty fast)
just find something with less depreciative value, and something you can have many of. That's going to be your piggy bank
The housing market is certainly hyper inflating in the USA. Used cars are the same way. Although I suspect that's not solely due to the increased money supply.
Housing is booming from near zero interest rates. New cars have a shortage due to manufacturing issues with chip shortages. The shortage of new cars is pushing up the price of used cars.
Hmm... remember that the go to move in anticipation of hyperinflation is the purchase of assets like real estate. Another factor is where the money is being dumped into the economy. Typical Americans received around 3K in stimulus over the last year. The banks, stock market companies, and other large corporations received trillions of government stimulus and tens of trillions in money through Federal reserve actions. Money that is printed is distributed through the banking system via the Fed issuing low interest loans to the various banks, as a result the newly printed money is being poured into areas that aren't on the CPI.
USA is a giant ponzi scheme.
The rich sre buying houses cash, and buying NTFs, because they know it's coming to an end.
Prices not showing up on all goods because most things are subsidized to maintain an artificial low price.
Agriculture is subsidized, oil companies are subsidized, and Amazon, and meat industry , and fracking, and green energy, etc etc.
Take those subsidies off......and USA would become a 3rd World country in a day.
@@naddarr1 And also, people who already own a house are powerful voting bloc, with a vested interest in maintaining their (often largely unearned) wealth.
When the interest rate is less than the rate of inflation, it pays to borrow.
At least until the money printers can't afford to pay for their own salaries.
@@TheSkyGuy77 - No. It's simple math. Using dollars that are worth less to pay back a loan that has more purchasing power but the same dollar amount is a net gain.
Just got off the phone with my bank. I just took out a $200,000 loan. I hope your right and this pays off.
you kinda still need to buy something with it
remember to spend it right now on a durable asset or it will be all for naught.
buy property or something...
@@aadipandey8237 nah need something more liquid like a different currency.
It would be better if you did it next year, unless people start to lose trust in the dollar real fast.
China no longer holds that much USD. They've been spending it all around the world buying physical assets like farms and mines because they see where the dollar is headed. Also a reason why you should do a video on why China is making moves in the crypto markets. 🤔
they made there crypto currency to dodge sanctions from the us dollar
@@zzasdfaddsncfyued9848 not just digital yuan. also some btc
@@zzasdfaddsncfyued9848 Or owning about 50% of bitcoin pool 😂
I told people this in late 2019 and they thought I was crazy for even suggesting the dollar can decline. IT's like people want this.
Hheh😂😂
You've convinced me. Unfortunately you also convinced me that we would be shipping things with blimps so...
Watching this exactly 1 year later: congratulations m8! 😎
fr, he caught the nail on the head, prices have increased on average about 40% on average i think and gas is 6$ lol
@@metzli_moon inflation is currently marked at something like 8.5%, not 40%. It's just that it is a disproportionate weighting. Some things are hit much harder, some things are unaffected. If EVERYTHING was 40% more money now than it was when this video came out? Society would have collapsed. The middle class would be completely crushed in its entirety. Not meme levels "They already are lol" - they would all be literally homeless or literally starving. Correct use of the term literally.
Ive switched over my entire financial holdings to the Zimbabwe dollar, (at least I know it cant go down anymore)
didn't they solve their inflation crisis by starting to use US dollars instead
@@louispetitjean1652 oh no! MY INVESTMENT!
As a Venezuelan, yes, yes it can go down more
So what you're saying, is that it's going to be real easy to pay off my Mortgage.
not really, still does not mean you will earn that amount.
Only if you can get the dollars.
Only if you can sell your asset during hyperinflation.
Yes, if your pay kept up but it won’t, not by a long shot!
Faq ur house boomer
Alright but... the title is kinda fake isnt it?
Dont get me wrong, this was very interesting, well-done and educational. However the main conclusion is that hyperinflation ISNT here yet and that it might be coming for the USA but we dont know for sure yet.
So i hate to say it but that kinda makes this title clickbait...
I mean, yeah this was a bit clickbaity tbh.
It's here.
Has been sheltered by the private Central Bank with QE after QE.
During this timeframe, wealth has been transferred upwards exponentially.
@@Dangic23 okay but that isnt inflation right? Grocery stores arent going to up their prices for bread because Jeff Bezos is worth 80 billion instead of 40 billion...
Um, yeah, actually, if you live in a foreign real estate market (like Canada, where I live) it's already happening. Just not in consumer goods. Yet.
@@gromm93 I mean, im not knowledgeable enough to debate that. My comment is about whats in this video, not about whether hyper-inflation is or isnt here :).
I've seen this video before, but it's even more telling, now that we're almost halfway into 2022, with an "official" US inflation rate that's over 8%, and seems to still be on its way up.
Clearly, the US is *not* too good for inflation. I'm hoping and praying we don't get into hyperinflation. I mean... you can only blame Putin for so much before people figure out it wasn't really his fault. (Oh, wait... we've already figured that out.)
Most morons haven't figured it out yet
We have not seen, and are unlikely to see, hyperinflation in the US. We are likely to see a recession as the fed raises rates and restricts the money supply to combat the current 8% rate, which is the highest it’s been since the Reagan administration. That’s bad, but it’s not hyperinflation. I wouldn’t go out and buy an apartment and hope to pay for it with a marble.
@@_yak: no plans to start playing with marbles here. ;)
For me I think people need to spend less and invest more , you don’t expect to spend 90% , invest 10% and sit to make more wealth. My opinion tho 🤷🏾♂️
You're so correct, justneed to live well below your means.
Crypto has been more lucrative than stock market, I received my first profits last week Easter am regretting because I didn't start early...
I'll like to start bitcoin trading business, from what I see in the internet today. Seems like people are making a lot of money from bitcoin investing now...
Trading bitcoins has kept me going throughout this pandemic lockdown last year , I have made a huge amount of profit from it too.... Glad I took the decision at such critical times
I agree on y'all opinion generally I always look out for it to dump so I can purchase some more truly it has come to stay