CURRENCY COLLAPSE: How the US Government Is Destroying the Dollar

[ProtestantsRUs]

Good video, well explained. I learnt something.

[fullfist]

Where is the US in this cycle, it's in deep shit, that's where.

[thomaseshuis]

What's sad is that there are still people who are convinced that the U.S. is the richest country in the world and therefore 'leader of the free world', while in reality its been bankrupt a long time. P.s. I have nothing against the U.S. only against the blindly ignorant minority.

[racenemo]

Ron Paul Peter Schiff and Jim Rogers contribute to a better world if only people would listen to or vote for them.

Sadly people like to listen to Donald Trump

putting the blame on the Chinese in stead of looking in the mirror.

[Iesous238]

GET READ! THE MARK OF THE BEAST IS COMING!

[MrMensaMark]

Well said. Very intelligent.

[Rico8458]

actually, on a serious note. you are wrong dude. 100% incorrect. our nation had expansion on a gold standard.

[Rico8458]

try birth control or stop immigration.  save america idiot.

[kbless551]

407buddy? you yourself need to get all that wool off your eyes and do a little homework, the Fed announced again even MORE 'quantitative easing' (read BUYING it's own debt/treasury bonds), how/ printing more money, further driving down the value of the dollar, go get all your money and try to BUY a clue.....

[Rico8458]

when you print money you debase and devaluate, depreciate our savings accounts because more money created inflation, the more dollars you have on the street the less they become valuable. only when something is scarce does it increase in value so less money printed means our dollars increase in value.

[ananiasacts]

@407buddy, LOL. Maybe there's a way to combine guns, butter, and bibles into a single tool that can fix any problem. Let's hope Glen Beck is working on it.

[ananiasacts]

This is very misleading. For example, treasuries are sold at auction, that's what determines their yield. You make it sound like you government sets that value itself. You leave out the income from seigniorage, the non-tax revenue of the fed, lots of stuff. I think we citizens should be calling for a tax on the black market, that could generate around a trillion dollars per year of new income for the federal government without any additional tax on the people who report their income.

[latewire]

@ananiasacts "For example, treasuries are sold at auction, that's what determines their yield."

While technically correct, you ignore the fact that the fed is buying them on the secondary market at a record pace. That, combined with the temporary run-off from people fleeing european markets and China's currency peg, is what's keeping bond rates down right now.

Fed Reserve income is usually less than $100B/yr, and they're probably losing money these days as they're paying interest on reserves.

[ananiasacts]

@latewire, They can't buy them in the auction for obvious reasons. They use open market operations to regulate the money supply. Buying them injects cash into banks, making them more prone to lend. Selling them does the reverse. There's nothing fishy about it. It's an excellent way to adjust the "thermostat" on our economic growth. Cheaper money promotes growth while more expensive money slows it. I still see mostly deflationary risk. That's why the fed is anxious to keep rates so low.

[latewire]

@ananiasacts Regardless of why you think they're buying them, it still has a huge effect on Bond rates. That was the topic of your original post. I'm not going to address the falsehoods of monetarism here. For that I'd recommend the "misesmedia" channel here on youtube.

[ananiasacts]

@latewire, The only effect I can see it having on bond rates is to lower them. It can have a tiny effect on bond yields because they decide which ones they'll buy and sell from a vast collection of bonds spanning 30 years and many different coupons. But even this is no different than all of the other bond trading that is going on. It lowers bond rates because it assures buyers that the fed has effective tools for controlling inflation, thus making our bonds a safer way to preserve wealth.

[latewire]

@ananiasacts What the heck have I been saying this whole time: The Federal Reserve is the key to bond yields (rates) by encouraging or not encouraging their sale via the secondary market. Currently, they're buying more than they ever have before, thus lowering rates (yield).

What you said: " treasuries are sold at auction, that's what determines their yield. You make it sound like you government sets that value "

False. The Fed does have the largest effect on yield (or does now at least)

[ananiasacts]

@latewire, I so disagree. The open market operations simply allow the fed to give bond investors more confidence that their investment is being actively protected. That, plus the overall size and breadth of our economy are the main reasons why we pay so much less than every other nation for our debt. If they were not allowed to do this then rates would be higher today because our bonds would be genuinely riskier investments. So I agree in that sense, but disagree that it is a bad thing.

[latewire]

@ananiasacts "[fed is making the rates lower] So I agree in that sense"

... That's all I was saying in the first place.

"but disagree that it is a bad thing."

Disagree with who? I never said it was a bad thing. I DO think it's a bad thing, but I never said as such. In fact, I referred you to the @misesmedia channel as I'm not interested in debating that topic.

[BourneAccident]

Let's stop sugar coating all this... we are being ripped off bit time by the private corporation known as the fed...

[MobaTalk]

2/3 paid for by taxes? LOL

Our taxes only pay for the interest on our current debt. Everything else is paid for by taking out new debt.

[fifthavenuegirl]

And let's be clear here. The State has been focused on and blamed for poor management when the FEDS HAVE GOTTEN MASSIVE RAISES SINCE AT LEAST 2007. IN FACT, YAHOO ABOUT A WEEK AGO SAID 19%!!!!!!!!!!!!!!!!!!!!! HOW COME NO ONE IS FOCUSING ON THIS? BECAUSE MAINSTREAM MEDIA IS OWNED BY THE MEN BEHIND THE CURTAIN OF THE FED GOVT

[SKUNKBALLScom]

true!

[fazholio]

so 90% tax is coming

[69Whitehawk]

So basically, as we all pay Tax does this mean that we are all supporting The wars.bloodshed and murders created by going to war.. Did any one see that on the voters poll booth.. Or was I looking the other way that day..Can anyone produce the copy of the law where it specifies you have to pay Tax...There ain't one.. Thats Why.. For all you readers-Stop supporting Hell on Earth..

[joshmccraney720]

@69Whitehawk true to an extent. without taxes means no schools, law enforcement, yada yada yada. to give example, look at greece. tax evasion as become endemic, and the catastrophic ramifications are showing. yes i am well aware of other existing problems that have exacerbated the debt, but rest assure that lack of taxes contributed as well. somethin to think on...

[ananiasacts]

@joshmccraney720, what puzzles me is why we don't tax the black market (by construction.) It's estimated to be between one tenth and one sixth of GDP. If it was taxed at 50% it would generate around a trillion dollars of new revenue for the federal government without affecting anyone who isn't a criminal. It would also allow us to measure both the white and black markets far more accurately, solve the illegal immigrant problem at no cost, and take a big bite out of crime. It's a no brainer.

[allansed]

I think the government should just start from scratch and clear all of it's debt. If we have the power to go into a sovereign nation kill the people and replace it's leaders, surely we can eliminate all of our debt.

[bitchcreekz1]

@allansed you should read a book before making stupid comments!

[LordoftheKaty]

@allansed Have you ever studied at least a rudimentary form of economics at college or even high school, it doesn't work. This is what happens when you take your liberal philosophy into effect. Gov is not the solution, it is the problem.

[pirucreek]

I think you are missing something. The federal reserve, but t-bonds to buy money. Thus, it is the government that is really creating money.

[gcbarone]

That is a good point. But I think the fed can get the new money out through forex as well.

[OneManAndHisFiction]

The Federal Reserve Corporation is there to serve its Beneficiary. It's Beneficiary are the private member banks and NOT the People.

This is the problem. - Those private member banks are International Banks and put themselves and their profits ahead of the benefit to the People.

It is the fiduciary duty of the agents / employees an chairman (all Trustees) of the Federal Reserve Corp. to serve their Beneficiary.

Even if the government did nationalize it, this problem would still exist.

[bobbyb1978]

Great video, however, why would higher interest rates lead to more inflation? I think higher interest rates should lead to less inflation. Savers will save their money on bank accounts and this money can then be used for investing by those banks holding these accounts, making it less desirable to create new credit/debt. The problem is the interest rates are far too low right now.

[latewire]

Good question.

High interest rates would lead to less inflation in the private sector like you say. However, the existing PUBLIC (national) debt would be compounding. The SERVICE (payment) on that debt would be paid for by inflation, taxes, and debt.

Say the national debt is 10 trillion dollars (understatement). If the interest rates were to rise to 10% (understatement), that'd be $1 trillion new debt the first year. That amount will be added to the budget, and a portion of that gets printed.

[latewire]

With the government's own numbers saying the national debt will be ~25T by 2019, if interest rates were to go to say 15%, that'd be an extra 3.75T PER YEAR on debt service alone.

Since nobody will be buying our debt, and our normal budget being too large to pay for with taxes already, it's conceivable ALL that debt would be printed.

[cmonpeeps]

@latewire Great point.

[trckstr261]

listen with all the new bailouts and printing money is causing inflation. Countries are getting rid of the dollar. oil traid is only bought in US dollars.  Not for long. The dollar will collapse. also adding the new health care bill will increase taxes to around 40% of our paychecks

[nitdiver5]

The plan is to collapse the system so they can move to a one world currency and then a one world govt by 2011 with total control of a slave population. But they, the elite, also have a population reduction plan ala swine flu. Look up the Georgia Guide Stones, operation Gardenplot, Rex 84, FEMA camps or coffins. It's a Satanic agenda. Listen to Alex Jones and Stevel Quayle. Get ready for the collapse If you are in the US.

[bigc028282]

So "they" are a bunch of assclowns, or it is intentional. Which do you think it is? I really don't think it's because "they" don't know what they are doing. This means there is a conspiracy to destroy the dollar. What is "their" plan??

[fox20012]

So basically your saying the people in charge are like funny haha clowns or something?

But the joke will be on us?!?!

[ViciousJones]

foool you!

[hepnova]

Magnificent!

[mustang607]

Can we get back to a Constitutional free market system after they collapse the current one?

[TrunkMonkey3000]

@mustang607 can we go back to a constitutional free market system? Hahahahaha !!!!

[ikambor]

@mustang607 well that would be nice,, but it aint happenning,, they are trying to collapse it so usher in a world currency,, they may have to intruduce the amero first,, a north american currency for US Mexico and Canada

[NoseNuggets]

this was really good.

[quittingtomorrow]

5 stars, very well put

[online4now]

Great job! 5 stars for you