Biden’s Top Economic Advisor on Money, Debt and MMT: “I Don’t Get It.”
HTML-код
- Опубликовано: 11 июн 2024
- A interview clip with Jared Bernstein, President Biden’s top economic advisor, went viral this week. At first glance, it’s a shocking wake-up call about how incompetent our leaders and policy-makers can be, especially when it comes to economics. However, it also raises important questions about modern monetary theory, the Federal Reserve, and the risk of hyper-inflation. As an economics nerd, I can’t resist sharing my thoughts to close out the week!
Subscribe and ring the notification bell so you don’t miss a single video!
Follow Dad Saves America on Substack: dadsavesamerica.substack.com/
Subscribe to the podcast: dadsavesamerica.substack.com/...
Make a tax-deductible donation to Dad Saves America: secure.anedot.com/emergent-or...
_____________________________________
Our Website: www.dadsavesamerica.com
_____________________________________
Dad Saves America is a channel dedicated to celebrating heroic fatherhood while teaching the next generation of fathers strategies they can utilize in parenting their children. We believe strong children come from a strong family. We’ve had many experts in the studio, including Jonathan Haidt, Dr. Drew Pinsky, Troy Kotsur, John Mackey, Ben Askren, and Adam Carolla.
#economics #federalreserve #inflation
Hi there friends and families, when I saw this clip of Jared Bernstein go viral, my jaw really hit the floor. On multiple levels it underscored how deeply, deeply broken our understanding of economics truly is at the highest levels.
My first swing at this was close to an hour long, and maybe we'll make that available as well, but in the interest of sparing you excessive ramblings about the suspension of the classical gold standard, etc, I thought we'd cover the basics first. We'll be be doing much more around economic basics, as always, through the lens of what we as parent should know and help our kids understand in a world where CLEARLY our schools aren't up to the challenge.
If you want to go deeper right now, a good place to start is my conversation with economist Russ Roberts here: ruclips.net/video/aTKcJdgz7U4/видео.htmlsi=P4v6cTC5K5O9vnzO
If you really want to geek out on Monetary economics and MMT (as well as understand exactly why MMT is nonsense) I strongly recommend you check out this write-up by my friend and monetary theorist Scott Sumner: www.econlib.org/library/Columns/y2021/SumnermodernmonetarytheoryPartI.html
Elderly people are more susceptible to money scams!
The current monetary system is a giant scam, income tax is just harassment of the citizenry, the “debt” is unconstitutional, unlawful and illegal. The whole fractional reserve banking system is a Ponzi scheme. The faster this system crashes the better, because then the powers that be won’t be in the position of running the next system. What do I want to see next? I recommend a sound monetary system please and thank you.
Jarrod Bernstein is a doosh.
When a bank buys bonds its printing money. When the public buys bonds its not as that money is existing.
It's not the advisor that is dumb, it's the Federal Reserve System. I fear that most people missed the whole point. Yes, that guy did get the lender and borrower reversed - for that he is dumb but it's that system that is dumb.
When the top economic advisor in the country has an art degree, I know that nobody at the top cares anymore.
I'm guessing the only reason he is handling money affairs is because he is a jew.
That's where he learned to paint himself into a corner.
That so-called advisor (he's really a blocker) knows the truth, he is just afraid to discuss how his friends at the (non)federal reserve steal the money by lending it to the government at interest, which mathematically can never be paid back, so more and more must be borrowed. 😮😮😮😮😮
We should have exams for holding office. Democracy is failing us and we are electing morons who are good at social stuff. We need competent people in power not phony people.
@@yashpatel261 You actually believe we are electing these people? They are selected by the evil little clique of overlords who run things behind the scenes. All by design.
People try to predict the economy not realizing it is not a capitalistic market, its a command economy, central planning! my concern is, instead of having much dollar in bank that could lose value to inflation, do I save in gold to reserve and grow wealth for now, or just hang on?
truth is that gold serves as an inflation hedge in the long run, but not profitable in the short run. only thing you can predict is a strong effort of wealth transfer from the people to the powerful. luckily some folks find solution in financial advisors
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
Impressive can you share more info?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
The LAST person I would take economic advice from was Biden's economic adviser. Our economy is a complete MESS!
Yeah, the service sector has been the largest US employer for decades.
Guy doesn't even know what he is talking about w....t.....f.....
Biden and his supporters are brain dead idiots at this point ....no reason to be on the guys side other than stubbornness or ignorance
It fills me with rage to think that they actually believe most of us are that stupid.
It fills me with terror to realise that, for the most part - they're right.
I have watched the eyes of grown adults glaze over when I try to explain these things to them. Most are far more interested in what is on Netflix tonight, or which team is going to make the playoffs.
It fills me with sadness to realise that maybe we get exactly what we deserve.
😂😂😂 it's okay it's all love and stupid
Maybe some people should move to Cuba and stop forcing this garbage on us.
Most frightening time in the history of the United States.
Americans now are completely economically ignorant, and we are ruined.
"The educational system won't be fixed. They want people just smart enough to do menial jobs, and stupid enough not to know how they are being screwed over." to paraphrase George Carlin
They raise interest rates, but then continue their obscene overspending and money printing. Such a mess
They stopped printing money when they started hiking interest rates. That's the literal meaning of quantitative tightening.
yes, my point being why go through this process if you will continue overspending and devaluing the dollar either way. It’s a mess, we wouldn’t be in this spot if our government could run a budget. On a personal note I've worked closely with my advisor to grow my portfolio from $200k to $4.8 million through stock trading because as a businessman, I prefer to invest my money rather than let it sit idle and lose value over time due to inflation.
Despite the ups and downs in the stock market, you've managed to turn your investments into good profits. Could you share the name of your advisor? I have $300k saved up and ready to invest. Letting money sit idle isn’t my style as well, I’d rather put it to work and keep it growing.
She is well known as - Chasity George Charles. please do your own research.
I am on the look out for experts and after doing my research online will say she meets my requirements, Thank you for sharing with us. I already sent her a mail hoping she can make out time in her busy schedule to assist me.
Inflation is shifting wealth from the many to the few. Personally, I moved from guru advice to solid research and saw $1.1 million returns in a year. We need to pursue correct steps to drive real progress
Printing money can undermine confidence in the currency. You mentioned returns. how do you know if its a result of research or luck? Luck in investing is often downplayed, but it's crucial. I've experienced this firsthand
when its consistent, its not considered luck. research was the challenge till it led to Emily Ava Milligan, a top fund manager, her strategy made 290k into this and counting.
I pasted her name into my browser, her website popped right up. Your example is rare, and tangible. I wish I had it to reference earlier. thanks for sharing
This is honestly the scariest thing I have ever seen. America’s leadership is economically illiterate and it is affecting the entire world. Such a shameful situation.
Most of the WORLD is also now economically ignorant.
He's not America's leadership. He's an advisor to America's figurehead leadership. The actual leadership definitely knows how the monetary system works
Yes. Yes. Yes. America really is this mismanaged and screwed…
No wonder the economy is so screwed up. Inflation is always caused by the government, it's basically a tax.
Correct.
The most insidious tax!
A tax on the poor
The true Bulls**t is that when a politician uses the word 'economy' it's meant as a euphemism for the stock market. Regular people think it means jobs and stores and small businesses, like what I was taught in school. That's just not what they mean, they exist in a different world than we do. LOL you don't have to be smart to get a top position, you just have to do what the billionaires who write our laws want you to do.
It was hard watching your head repeatedly explode.
I'll take wise and humble over "smart" any day of the week.
Yeah, they’re not alone in that insane misconception. I had a conversation with a radiation oncologist about all of the economic bullshit going on and he was convinced everything was fine because the stock market was soaring. I was floored. This guy is literally in the top 5% of his field nationally, and he holds an MBA as well. It’s amazing how disconnected these people are from even fundamental reality.
We are in so much trouble. The pilot doesn't actually know how to fly the plane we're all on.
We never should have left the gold standard
Absolutely correct. But the key is that we never should have left the CLASSICAL gold standard, pre-Fed. Imagine this: before the Federal Reserve took over the money supply, companies could actually issue 100 year bonds! People felt confident enough in monetary stability that they'd lend a private company on a 100 year term. NUTS.
Agreed 💯
@@DadSavesAmericaAnd you’re completely ignoring that recessions happened all the god damn time until the Fed was created. Getting rid of the Fed and returning to the gold standard is a horrible horrible idea.
@@DadSavesAmericaIs there enough gold to go around? How about monetize different assets and create a basket of them?
Anyone who has spent time studying the history of debt based fiat currencies knows exactly how this ends. It has happened countless times throughout history. Over the last twenty five years anytime I heard a politician(s) say we’re going to lower the debt or deficit I think things either they're liars or they’re economically illiterate.
A Jewish characteristic
What a truly awesome display of incompetence.
They don't get it, and that is the entire problem.
The best explanation of the US economy I have seen yet. Great one man.
I’m getting more fit in my old age, I can now lift a $100 bag of groceries with one hand!
Peter Principle!!!😂😂😂😂
Government doesn't print $$$, the federal reserve does
Thank you.
It is so enraging that people so dumb are astroturfed to such positions
@@Pathippie Guess who is on the Board of Governors of the Federal reserve sys.
The ones who are in charge....they also own the Banks!!
I seen that. I've know our economy was getting bad even before the 2008 GFC. And I know it wasn’t ever fixed but made far worse. And nothing much surprises me anymore. But when i watch Biden's top economic advisor babble through a basic economic question I knew the economy has entered another phase of stupidity. Times short.
"....my labor stored to be deployed later"
BRILLIANTLY PUT!!!!!
Thank you for explaining government driven inflation so clearly. Economic education in the US needs to be improved at the high school level to even attempt to influence naive voters.
Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become 'profiteers,' who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.
Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.
--John Maynard Keynes, The Economic Consequences of the Peace, 1920
Then stalin and those guys never figured out how to make people be productive without money and kep using money and telling its citizens the inflation will eventually bring the utopia. Then after awhile citizens starting questioning that and the soviets actually started to reverse course and try to stop inflation, but they never really delivered their promised of getting rid of money and eventually collapsed because even the political class there itself simply didnt believe it anymore
Too bad that with such a brilliant mind Lenin could NOT figure out how to improve his own people's wealth.
Instead he condemn them to obscurity and represion.
So glad to have found this channel!
They just pretend like they know what's going on
They pretend like they *don't* know what's going on. It's the government's job to play dumb.
The only one confused here is biden’s economic advisor!
"Margin Call" movie. CEO comes in and says, "Talk to me about our problem and speak to me like you would a small child or a golden retriever" You call it. Is Biden's advisor a small child or the golden retriever. (Golden retrievers are pretty smart dogs.)
This guy is not as smart as a golden Retriever but is far more dangerous.
This is the first video of yours I ever seen and it’s excellent.
Thanks! Stick around!!
"Why are we borrowing in a currency that we print ourselves?" is an excellent question.
😱 we 🇺🇲 are in big trouble ‼️ 🙏🙏🙏🙏🙏🙏🙏✌️
Great video. I began studying economics, finance, and the banking system 13 months ago. You've articulated in 14 minutes what has left me exhausted trying to explain to people who mostly just don't care.
Thanks! Now you can share this to start off a conversation! Be sure to subscribe for more to come, including a follow up where I take on some of the comments on this video!
Right on, Dude! That was an excellent explanation - best i ever heard. Wish everyone could hear it and care about govt debt.
I really appreciate that.
It’s wild we’re even talking about modern monetary theory. Ask Zimbabwe or the USSR how that worked out for them. Hint: it was a disaster. Why are we even talking about this garbage theory?
Because we are ruled by psychopaths.
Excellent summary.
Man are we screwed with a uninformed government know it all .
73% of Federal Government spending ($4.6 trillion in 2023) is on entitlements (mandatory spending) SSI SSDI Medicare, Medicaid, food stamps, interest on the debt...)
Major entitlement programs and interest will be responsible for 82 percent of projected spending growth over the next 10 years.
The total federal debt burden per U.S. household is $250,000
Congrats to that advisor of the government. They put everything upside down. Politics, law, morals, economics and, and, and.
I am NO ECONOMIST. However, I understand pure Bull Shit when I hear it. I do understand why I BUY gold, and always will with people like this who holds power. This is very painful to watch and should scare the hell out of anyone who pays attention to this kabuki theater.
manager salary in 1972= $9,000 per year or 250 gold coins. 2023 value $580,000
Definitely helpful, and would love to hear more on this topic.
More to come!
@@DadSavesAmerica Maybe some content on Bitcoin. Your thoughts on how many people, like Robert Breedlove, Anthony Pompliano, Michael Saylor, etc continue to advocate for Bitcoin as a superior monetary asset.
This and many other truths about money is what we need to be teaching kids in school.
Keynesian economics and MMT will destroy our society. We need leaders who learn from the mistakes of the past instead of repeating them. We need to cut spending, grow the economy and decentralize power, both in the public and private sectors.
I personally have a deep distestane for large banks and private equity.
Great video Sir. You just got my subscription
Glad you shared this video "Dad Saves America ". I agree with you.
The borrowing of money and printing of cash are essentially the same process. The Federal Reserve is not the Federal Government. The Treasury borrows money by selling bonds and the Federal Reserve (digitally) creates the cash.
Hi John @DadSavesAmerica! I admire your "stomach" and the patience to watch this type of nonsense and resume it to us. Thanks!
More, more, MORE! Love this. Most of us just want to live our lives, go to work, buy some nice things, and retire and take a trip to (name your favorite country) once a year. Unfortunately, "us" don't understand economics to good! I love this discussion and think our schools should be teaching, even the basics of how our gov't works, free-markets, communism, the good, bad and ugly.
Thank you for a very clear breakdown on this matter! Hope more people will understand this 🙏
Thank you for this. Great job!
There is nothing federal about the federal reserves 🤣
It's nice to see Joe has a friend
The process of printing money needs better securities than what's currently in place.
If the government can truly print all the money needed without consequences why is it necessary for people and corporations to pay taxes? MMT is insane.
Love Dad Saves America
Right back at ya!
I have a several decades old undergraduate degree in economics and now it makes perfect sense to me who the supporters of CBDC (central bank digital currency) are - they're the idiots behind the Monopoly game money theory of Modern Monetary Theory (MMT). Currency traditionally had been coins struck out of gold or silver, then paper certificates were printed in lieu of the need to carry around bags of coins. These paper certificates were backed by gold or silver and were able to be redeemed on demand by the holder for the equivalent value of gold or silver. Then the government went off from being backed by the value of precious metals to fiat currency. This fiat currency is just a way for the government to say, yah - it's still good for all transactions and for paying off of one's debt (so trust us and please use it). But in order to create $1 of USD fiat currency, Treasury debt of $1 had to be sold on the open market. Not only that but Treasury debt instruments (notes, bills & bonds) needed to pay interest in order to entice people to purchase Treasury debt. The U.S. national debt (aka: sovereign debt) is so huge because politicians are spending more money then they collect in revenue. So imagine an average Joe (not Joe Biden because he knows jack squat about money management) who before taxes has annual salary of $50,000 but takes out credit card after credit card and amasses a total debt load of $5 million. The interest on Joe's debt alone can't be paid off - what do you think happens next? Well that's essentially the U.S., if nothing changes (regarding the political elite spending like drunken sailors) the interest on the national debt will equal the entire national budget! Presently, the interest on the national debt exceeds the annual military budget!
The U.S. is endanger of a worse economy crisis than post WW1 Germany! MMT supporters think that printing money not even backed by debt will solve the problem, unfortunately it will only exacerbate the problem. This wouldn't be fiat currency (which is backed by debt), MMT dollars would be the equivalent of printing Monopoly game money. Who the hell would accept U.S. Monopoly game currency for international payments - no one! Which is why if all Western countries go with CBDC, then they can print all the electronic currency they want and not sell debt instruments in order to create this worthless digital currency! But CBDC is not the solution to the sovereign debt international crisis, backing currency by physical assets along with governments severely restricting the size of their payrolls and the scope of their budgets is the only way forward.
Gee wiz. I sure hope more than 2 people understands this. Wishing for something to be untrue doesn't make it so.
That guy looks like Leslie Nielsen. Just as comedic.
The problem will MMT is if you allow governments to print money with no ceiling you increase the quantity and availability of money. It is an inflationary policy that say no worries you'll just make more wages to compensate for this discrepancy.
Ronal Reagan: "We know now that inflation results from all that deficit spending. The government has only two ways of getting money other than raising taxes. It can go into the money market and borrow, competing with its own citizens and driving up interest rates, which it has done, or it can print money, and it's done that. Both methods are inflationary."
This was an exceptional video....Thank you for sharing real information.
Thanks for watching! Hope you stick around!!!
Remember, the world's bond markets are around nine times the size of the world's stock markets, in terms of capital parked there. And to think, western governments are looking to default on their sovereign debt at some point during this decade, and introduce a CBDC.
One world currency coming up
Printing money means raising in flation sky high!!! Hahaaa😂😂😂
New Sub, this man is so base. Aside from Peter Schiff, finally more people on RUclips who are educated to talk about economics. I naturally arrived at the same conclusions as Adam Smith and Austrian Economists by being born and raised in CA. I know now that economics (free markets) is not invented, it is discovered. Many do not understand economics because of all the noise of political systems. There is a reason the first chapter of Thomas Sowell's book on basic economics is "trade offs".
uhhh....Jared's education:
"Bernstein graduated with a bachelor's degree in music from the Manhattan School of Music where he studied double bass with Orin O'Brien. Throughout the '80s, Bernstein was a mainstay on the jazz scene in NYC.[citation needed] He is of Jewish descent.[9]
He also earned a Master of Social Work from Hunter College as well as a Doctor of Social Work in social welfare from Columbia University's school of social work in 1994."
Hello friend. Just admireing the wood foregrip on the AR behind you.. where did you find it.
I sincerely appreciate this video
The irony is that most people knowingly support this process via their taxes. Only a few have learned how to avoid paying taxes and it is legal to do so.
Govt moves money from young to old n drops bombs😂 legend bro
This is one of Biden's financial economics advisor holy chit cakes.
Government is terrible at my job. Whenever they try to regulate business they mess everything up.
They need to stay out of our lives.
If ever there was an advertisement for buying gold that is it.
The question should be why do we print when we can borrow, not other way around
I remember when criticizing any part of US capitalism was taboo. Nice to see that criticism is alive and well.
Great explanation,thanks
The best explanation about
money-cranking ever.
Believe it or not… this guy has a degree in music
This confirms what we already suspected
It would be great to add the international piece. What happens to the global monetary system if the US just starts using Monopoly money openly?
Magic time ✨🪄😀✨✨🪄 call the wizards 😂😂😂😂😂
People are finally coming around to “inflation is taxation”…. Took you guys long enough.
What an embarrassing garble of ♉♉♉♉♉♉ from that guy
Great video; I think a lot of people don’t understand that money is just a representation of labor, it’s what allows us to trade our labor for the goods and services we want. The Federal Government is “printing excess labor” which devalues real labor, which is why our dollars (labor) are worth less.
Love video. When anybody talks about the government printing money, I find it strange that few people ever mention how the real creators of the majority of US dollars, the commercial banks, fit into the picture.
The fractional reserve banking system does have an effect on monetary policy that is complex. But it's not limitless. Despite what some people claim, banks cannot simply "create money". The broader money supply measures ARE ultimately constrained by the supply of "base money" controlled by the Federal Reserve.
Why are we paying taxes then?
MMT is garbage. If government debt doesn't matter then why bother with taxing?
Taxing is what gives value to the money. It forces you and me and everyone to use the money. When money is taxed by federal government, the money no longer exists in the economy. Money is printed to be used and taxes take the money that is no longer being used out of the system. The reduced amount of money in the system drives the demand for money up. Supply and Demand. When millionaires and billionaires don’t pay their fair share, which is 70% of them, they are stealing from the public resources that the rest of us should be getting. Our standard of living falls when taxes aren’t paid. Taxes aren’t an evil plot against you. They are the fundamental design of a capitalist system. You love capitalism don’t you?
@realchicagophill Thanks for weighing in... but this is false on multiple levels. Each sentence has mistakes, just about.
1. Yes, the need to pay taxes in the national currency DOES create a use for that currency, but it's one of many. And as we've seen, the value of currencies and inflation rates vary WIDELY between countries. High tax countries can and often have had higher inflation than low tax countries. That's because money's value is determined by the supply and demand for the money itself. Hyper-inflation societies have had high taxes.
Also, foreign holders of dollars do not primarily do so because of paying taxes. They acquire them through trade and they hold them to use in trade and exchange.
2. "The reduced amount of money in the system drives the demand for money up. " - um... nope. Reducing the supply of a good does not change the demand for that good. They are two separate things all together. This is econ 101. Reducing supply (a shift in the "supply curve"), will increase the price. If OPEC cuts back oil production, it has no impact on the demand for oil, it raises the price, all else being equal.
3. "When millionaires and billionaires don’t pay their fair share, which is 70% of them, they are stealing from the public resources." Nope. First of all, America has the most progressive tax system in the OECD. We fund our government to a larger degree than any other nation on the backs of our highest income earners. Period. That's a fact. The reason is the rest of the OECD uses a VAT/sales tax which is very regressive taxation.
Wealth is not a zero-sum game. Steve Job didn't steal anything from anyone to acquire his wealth. The taxes he paid FAR outstripped the cost and value of government services he received. You seem to be assuming that all income is first the property of the state, that we are slaves, and that whatever we are allowed to keep is a gift from the state.
4. "Our standard of living falls when taxes aren’t paid." um... maybe... for some people, some of the time. Not necessarily for most people, most of the time. How does the funding of the military industrial complex increase our standard of living? Corporate bailouts? Massive farm subsidies to often wealthy farmers?
Whether or not our taxes raise or lower our living standards is entirely dependent on whether the funds are deployed in ways that improve people's lives MORE than if they were left in the hands of public to use as we all see fit. If you take my money and waste it, you've not only made me poorer, you've made society in the aggregate poorer. Opportunity costs are one of the core concepts of economics.
This is the heart of the question of socialist calculation and why central planning fails. No central planner can marshall the decentralized knowledge, nor do they have the incentive, to spend resources wisely. Even if they're selfless angels, they don't know what is needed, when and where, and in what amount. They lack the continual 24/7 feedback mechanism of competition, profit and loss, etc.
Does that mean there should be no government at all? Not necessarily. But I would certainly argue that we are LONG PAST the amount of government spending that passes the cost/benefit test for its competence.
@@DadSavesAmericaPerfect summation.
These people, walking around with nonsense in their heads about economics, get to vote. Even children understand there is no such thing as free lunch.
@DadSavesAmerica wow, I feel like I'm reading Friedman all over again. Very well put. Subscribed!
To put it simply. An individual who has disposable income still wants to use his or her credit card to purchase goods in order to build up a good credit history as long as the monthly balance is paid off on time.
The government doesn't print money. The reserve bank prints money; it is not a part of the government...
I believe that Poncho Villa tried that in Mexico and it failed spectacularly
Great video! Very very few people in the U.S. even understand the basics.
So, it's finally happened. The inmates have taken over the asylum.
I'm not an economist and I don't understand economics but I have tried to educate myself. I read Stephanie Kelton's book and it made a lot of sense at the time. But I'm a Brit and I wondered how it worked in the UK, we have a fiat currency after all. That's when I started to discover things that didn't fit with the story.
The first thing was this. Kelton says that when we pay tax it doesn't go into a special bank account. All that happens, she says, is that our tax debt and the money we pay simply self destruct in a mutual puff of smoke. But in the UK there is a special bank account where all tax revenues go and where all spending has to come from. It's an account with the Bank of England called the Consolidated Fund and it's purpose is as stated on the UK Governments website to receive all tax revenue and where all spending should come from. Any over spend has to be covered by borrowing.
The second thing is that she says that the government creates all the money. But on the Bank of England website you can download documents which say that the Bank of England does not create money, commercial banks create the money. I have seen it said that in fact the commercial banks are only operating as agents of the government but I'm not sure about that.
So now I'm as confused as ever.
Great explanation
It ends at the very latest when tax revenues are no longer sufficient to pay the interest, or inflation rises so high, with super low interest rates, that the economy no longer functions because prices cannot be set (Hyperinflation).
EDIT: Alternatively, you could expand your resources by waging war to gain access to raw materials. But that also comes with deprivation of liberty, because they can simply draft you. It is a loose, loose, loose for you.
You’ve got to be kidding me
It's hard to start a lie but when you get it going, boy oh boy😂😂😂😢
Wheres the full interviews
Maybe we should talk about the Federal Reserve and WHO they are and how it works
Truth is what you let them get away with saying. Totally detached from reality.
Yeah. Once confidence is completely gone and no one wants the dollar, we all can celebrate the NEW FED digital money.
NO WAY.
Awesome video…
Vote everybody out. Wake up
As Walter Williams defined money, it is a certificate of service.
That means the govt can literally consume the wealth of society and shrink it… unless the government is creating enough value with that activity to replenish it.
Those who seek a money imitation system (credit) and seeks to control it have already become untrustworthy. This is just common-sense.