Truth about inflation

[excidedous]

Yeah yeah so tell everyone that they are going broke so they will know - And that will change what?

Not a damn thing - they're going to go broke and knowing why isn't stopping anything

[floridaironclad]

Wow, this is so true. To the dislikers of this video, you just hate the idea of freedom and america!

[YZB25]

of how powerful the US military is... The US spends 300 billion dollars on military every year while other countries spend laughable figures like 10 billion... The U.S. is in the situation of a global dictator and the world can do nothing about it... The only problems with this system is how morally incorrect this is and the fact if the U.S.' military ever collapsed they would never be able to get out of their debt...

[kennjohnsen]

@YZB25

300 billion dollars ? try something between 1,500 - 2,000 billion dollars.

[twilight8181]

@YZB25 all the great empires eventually fall

[YZB25]

It may seem bad for the US but actually their political system can secure them superpower forever... the sad part being that they probably just don't realise it...

The US prints more money than they have in gold however they can make up for this lost money by borrowing money from other countries... They can borrow enough money from rich countries like china until they are out of their debt crisis... These countries will never stop lending money or ask for lent money back because (cont)

[MrFareez123]

Historically economies that used gold ans silver as means of money had virtually no inflation... Y do we use this current system of money that makes us work harder and harder evryday just to afford the same standard of living as before?????? Makes no sense...... WE HAVE TO CHANGE IT AND NOW IS THE TIME!!!!!!

[ManlySlut]

The Gold seizure was in 1933 to get the US out of the depression. Which it did.

[TZMUnchosenOne]

THE ANSWER IS THE VENUS PROJECT

[The Zeitgeist Movement]

[pabloelpopstar]

from 360p to 720p? This is a conspiracy!

[pheromoneaction]

How much fun is this making video's .. When you have time come visit my channel!

[TheHcgdietplan]

How much fun is this making video's .. When you have time come visit my channel!

[k98killer]

What a lot of people seem to forget to mention is that silver has had more industrial than monetary value this century. Gold has been a metal used as money for many thousands of years, and always will have a high value, but silver has a much more complex situation. Right now, a silver quarter will buy you 2 gallons of gas, and, at one point, it wouldn't buy one. It's not exactly a black-and-white topic. However, the video is a good representation overall.

[mgunar]

Wouldn't a paper-based currency be better for borrowing purposes? Borrowing - or more specifically, the long-term interest from borrowing - is what leads to debt. On the other hand, businesses are more likely to grow if they can borrow more. Of course, some businesses will fail in the process, but it's the one's which have succeeded that have made the USA what it is today.

[vamshikris225]

Good to know.

[TrueGreatness73]

BUY SILVER!!

[heartlessvietboy]

I have played Monopoly and its all wrong. They need to rework the game and make it an accurate depiction of real life. What does debasing the currency have to do with inflation? What inflation are you talking about anyway? What does more money for the business have anything to do with the ability of a person to pay more?

[mitochondria09]

it doesn't let me put a link here but WTF Finance has a great inflation article that I just shared with all my family and friends so that they can learn about it.

[grungefreak10]

And old roommate of mine purchased gold coins from National Collector's Mint. He gave me a few of his as a parting gift, but when I went to sell them, I couldn't get any cash for them at all. The gold you buy is just a big hunk of bronze with a very light (31 mg) gold plating. I would have given him a call and warned him, but since we're no longer friends, I am content to see him continue to get ripped off.

I have no love for the Federal Reserve System, but how am I supposed to invest in gold?

[Superchickenman159]

i dont get it?

[phillipgaley]

". . . . the don't even know it.", ". . . . they don't even know it."; the tragedy is, rather, so many, ". . . . they don't even care.", . . . ". . . . they don't even care." — until losing their jobs, and their toys; until pain, ". . . . they don't even care.", in the all important real ways, they are "just in it for the fun".

[anonimo198931]

As an economist, it really hurts to watch people writing so much shit. This video is obviously made to confuse ignorant people. To a rational person, the maker of this video should look like an internet troll, it is so wrong it is actually offensive.

[Vulcan750L]

@anonimo198931

Care to elaborate?

I'm no economist but sounds like he told one major lie. He said that the value of the dollar goes down while income stays roughly the same. I think income generally keeps up with inflation. Many pay raises are based on inflation rates. Americans make a lot more now than they did a hundred years ago.

[phillipgaley]

@anonimo198931 But, as seen in your short words, how does one who feels himself so smart as you here present, so easily blink the fact that, save a few mere conclusory allegations, he has left nothing but a scurrilous dissent?

Are you able to take even one of his points, and put together a sentence or two, of effective rebuttal?

[phillipgaley]

@anonimo198931 But, as seen in your short words, how does one who feels himself so smart as you here present, so easily blink the fact that, save a few mere conclusory allegations, that one has left nothing but a scurrilous dissent?

Are you able to take even one of his points, and put together a sentence or two, of effective rebuttal?

[MsBusiness101]

"If ever again our nation stumbles upon unfunded paper, it shall surely be like death to our body politic. This country will crash." (George Washington)

[MsBusiness101]

Inflation which the founding fathers saw as an evil and thats why only gold or silver should be legal tender vs. paper money.More money in the system means that my money is worth less because it gets watered down by new money. The money in my bank account depreciates like a car.The greatest example of inflated prices by inflation is the housing market.

The FED trying to make housing more affordable w/cheap credit causes inflation which makes the prices of homes rise. Cheaper homes are better!

[MsBusiness101]

If the VALUE OF MONEY is determined by the gov it will create money indefinitely to pay it's bills.

Just like a lot of people are in credit card debt and not savers the gov. will think it has way more money than it does.Their credit card is the Federal Reserve. Creating money not from production but by simply creating the medium of exchange doesn't make us weathy.Money must come from an actual exchange, from producing something.Creating more mediums of exchange causes inflation=devaluing money

[MsBusiness101]

We need to return to using the constitution!

No State shall enter into any Treaty,Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

"make any Thing but gold and silver Coin a Tender in Payment of Debts".....why?

Ans:Gov. can't set the VALUE of money.

[kalington]

There is no real money. Money, and the very idea that people should barter things and services between each other, is a human invention, a virtual tool, that has nothing natural or real to it.

[phillyx14d]

Totally true.. Good job!

If u want more info.. Watch zeitgeist addendum it's full information and it's very detailed.

[roger767]

if money isn't backed by gold or silver , what is it backed by now? How is its worth determined?

[DraqonXXX]

The US dollar is largely backed by oil. They have a monopoly on the trading of oil. Thats the real importance of invading iraq, not just for the actual oil reserve (plenty of that in alaska), but to prevent it from being sold for euros.

[phillyb61]

@roger767 DRUM ROLL PLEASE! AND THE ANSWER IS -----NOTHING

[blmkintaro]

wtf theres no rating stars

[astrozier1]

God bless you

[Krupification]

@keynesian42 You are either a lawyer, wall street businessman, or a politician (D) if you aren't worried about hyperinflation, and the economy in general. i.e. the side of this proverbial coin who is doing the raping, and not the one being raped....i.e your common citizen.

[spagbog1q2w]

you are right in saying that inflation is caused by printing more money from a central bank (or changing a few digits on your bank account balance instead) but it is also caused when demand exceeds supply.

[morow109]

if fractional reserve banking is the mother of all fallback then why do we not go back to the classical gold standard? the truth is we cant because the gold standard although helps to keep infation but it also stiffles innovation and technology and economic growth,lol .

[gimpy5587]

great clear infomation.....good job.

[TheElya18]

Buy silver rounds Buffalos today while it's still cheap. $19.50 and ounce. It may be worth as much as $300. 00.oz. after the crash. APMEX is a fair and safe internet comapny to purchase silver rounds.

[jahege]

Wake up people ! I see almost every viewer likes this video, but that does not make it any more true. RWN (the maker of the movie) uses a flawed base assumption in this video, and his conclusions are all wrong. Inflation IS NOT the same as gold price. Steep gold price rise is not the same as hyper inflation, as he wants people to believe. Gold was stable until 1971 because the central bank had a guarantee on that price, a gold standard, so of course gold price moves now without it.

[fbx258]

Interesting pointers. Thank you.

[OldBenFranklin]

When paper currency is tied to gold it prevents polticians from spending wildly and wastefully. It puts a limit on these bums, something they hate. Inflation is rather like termites in a house. You can shore-up or prop-up the house all you want, but it still isn't going to stop a growing colony of termites. You have to destroy the termites, all of them before you can even hope to save the house.

[newthoughts]

@OldBenFranklin 

[deshawnpenrose]

God Dam Nickson

[lovedalord88]

Very simple thing to understand is hyperinflation is caused by low interest rates from the central bank and high debt loads that appear to have no end in sight.

uh...sound like America anybody?

[keynesian42]

@lovedalord88 Why are you so worried about hyperinflation? The markets are not worried about it, as evidence of the low interest rates on government issued bonds, so why are you? This whole hyperinflation scenario is completely overblown. The government interest on treasuries has been lower than in past years, but you people still think that this hyperinflation is coming.

[phillyb61]

@keynesian42 Your an idiot, and part of the problem !! SEE YOU IN THE CHEESE LINE> I"LL WAVE AT YOU> DUH

[keynesian42]

@phillyb61 Prove to me that high inflation is imminent. Show me what interest rates you are looking at to back up your claim, dumbass.

[phillyb61]

@keynesian42 Please leave your moms basement NOW!! Go buy me some GOLD for what it cost last year. And while your out, go to the grocery store and buy me some milk ,DUMB ASS <SCHMUCK

[keynesian42]

@phillyb61 Your inability to answer my question is hilarious and sad. now, please for the last time, tell me what you're basing your predictions on? All of the forward looking indicators are not showing hyperinflation, so I'm guessing that you're basing your predictions on nothing. You're an economic illiterate, who should never comment on the subject of economics ever!

[phillyb61]

@keynesian42 #

MengersDisciple

1 year ago

Correct. As peter Schiff puts it, the US has two options:

1. Default honestly and not pay back the creditors, or Monetize the debt and default dishonestly by paying back the creditors with cheaper $. Everyone holding $s or assets denominated in them now need more of the devalued currency to buy things, as prices increase for everyday things... If I were you,I would throw away your Mad Mag Collection,You may need them to wipe your backside

[rationalCrash]

@keynesian42 : sounds like you are the one who needs an economic lesson, not phillyb61. I personally put hyper inflation at a low but ever increasing probability. the ever increasing size of government, ridiculous artificial interest rates, trillion dollar deficits (not just debt), borrow and tax and spend policies: all of which decrease productivity. yeah, no chance of hyperInflation at all. we are doing some of the same things as zimbabwe did.

[rationalCrash]

@keynesian42 @keynesian42 : sounds like you are the one who needs an economic lesson, not phillyb61. I personally put hyper inflation at a low but ever increasing probability. the ever increasing size of government, ridiculous artificial interest rates, trillion dollar deficits (not just debt), borrow and tax and spend policies: all of which decrease productivity. yeah, no chance of hyperInflation at all. we are doing some of the same things as zimbabwe did.

[keynesian42]

@rationalCrash Which forward looking indicators are you using to come to the conclusion that hyperinflation is imminent, dumbass?

But hey, maybe you are right and we will have hyperinflation. And if we do, you should become a very rich man or lose big like Schiff did in 08.

[rationalCrash]

@keynesian42 Maybe you should read the posts before spewing uninformed vitriolic keynesian bs. I never wrote that hyperinflation is imminent, just increasingly possible. I use history, facts (increasing debt with no signs of reversing or even slowing, increasing centralization, etc.). Watch peter schiff was right, learn something.

[keynesian42]

@rationalCrash The debt is neither unsustainable or even close to unsustainable. Right now, Japan has a much higher debt to GDP ratio than us and they've had a very high debt to GDP ratio for a long time now. Also, as long as the Fed can keep interest rates low on treasuries, then we won't have to worry about rapid monetization of the debt.

How about you learn something and watch "peter schiff was wrong."

[rationalCrash]

@keynesian42: ever hear of the "lost decade in japan? lol, you are a keynesian, you apparently just ignore data that proves you wrong. most of japans debt is owned by it's citizens (less bad). we spend a huge amount of money just to service the debt, just think of the good that money could do if available. it would be fine if the borrowed money was put to good use, but I've never seen a ROI (that return on investment for you keynesians) for the governments borrowing. it's mostly wasted.

[mitochondria09]

@keynesian42

you have to be very careful comparing debt to GDP numbers. First evaluate the variables that the GDP is comprised of. The GDP includes debt spending at the consumer and National level. Given that, it is stupid to look at the debt to GDP ratio, especially when one compares such a ratio between other Nations and that of the US as the US has an disproportional high debt spending, making its debt to GDP ratio of the US appear much healthier vs. that of other Nations.

[heartlessvietboy]

1.  The Mountain of snow = 20 Trillion Dollars (bottled water)

2. The Ocean = 20 Trillion Dollars (fish and crustaceans)

3. Soil = 100 Trillion Dollars (Seeds Grow limitless becomes food)

Inflation is because somebody is overcharging for whatever reason and we should find out. Gold is an excuse. Its a LIE!!

[mitochondria09]

@heartlessvietboy

of course anything that is sold in the market depends on supply of and demand for the good. That dynamic always affects pricing. Another variable that affects pricing is the amount of money in circulation and that's called inflation. Consequentially prices increase as a direct result of the inflationary monetary policy. You can have certain prices decrease during inflation when demand for ti goes down, but that's seldom. What do you mean by gold is a lie?

[heartlessvietboy]

High demand for a product doesn't mean it will increase. The study of economics is balognie and needs to be re-written. Inflation is because when one overcharges for whatever reason, the other overcharges also causing a domino effect.

[mitochondria09]

@heartlessvietboy

wow...If you think that the debasing of the currency has nothing to do with the price increases that the Weimar Republic or Zimbabwe has experienced and that it was solely due to a domino effect in people just increasing prices on their goods because they can...wow...

[heartlessvietboy]

What is debasing the currency?

[mitochondria09]

@heartlessvietboy

Debasing the currency is INFLATION. It's the creation of more money. It becomes obvious that you are not well versed on this topic. I suggest you read the inflation and CPI articles on the WTF Finance website.

[heartlessvietboy]

What does debasing have to do with creation. They are two different words. Doesn't creating more money mean more money for businesses thus no price increase because they have more income?

[mitochondria09]

@heartlessvietboy

When you create more of the currency that has no backing you are debasing it. More money for business means they have more spend and raw costs, advertising, etc. goes up due to the greater demand and ability to pay more for it. Play monopoly and give everybody in the game an additional $50M and see what happens to the prices, it's not like everybody will be rich...give $50M to one player 30min before everybody else gets it...

[UJSWnews]

lol nixon sucked

[lduve1010]

Great Video NZ!

Have you seen the "Crash Course" by Chris Martensen on this same subject? He has some great charts and content.

Keep up the good work!

[petros978]

the video is full of misconceptions

[i99xx]

sup vid *****

[vaj99]

The problem with gold is, that it duznt grow on trees.

[i4Truth]

Great video!

[ROSARIODELALUZ]

CORVETTE GRAND SPORT COUPE

MSRP1: Starting at $54,770

Gold (today) $1037 per ounce

[coolestdude80]

gold is not worth $1,200. A new corvette is not worth $55,000

[goodboy2girls]

@coolestdude80

it was.

[kipptumor]

You can't eat gold (or paper money for that matter).

[ethericplane]

"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty."

—Thomas Jefferson

[mcbain434444]

@ethericplane That means we are screwed. The mass of people are idiots. They are not concerned with truth or knowledge.

[anonymous915]

What prevented inflation wasn't the gold; it was the US refraining from minting more gold coins. In other words, if they would have flooded the market with more gold coins, the value would have dropped and it likewise would have caused inflation. It's the law of supply and demand. Things are worth less when there's more of it; whether it's paper or gold makes no difference.

[vaj99]

an ounce of gold is always an ounce of gold.

[anonymous915]

vaj99 - You know something? I used to believe this stuff about gold, but they keep saying the reason the dollar is cheapened is because they keep printing more of them. If that's true, then if gold were as common as the dollar it would be cheapened as well. The only way you have a stable monetary value is if they never produce more of it; it's about the supply, whether it's gold or paper - if you flood the market with more of it, it will take more to make a purchase.

[vaj99]

U know theres only so much gold in the world. the amount gols we've found so far wud fill saint pauls cathedral.

[reh2185]

@anonymous915 yes but u cant print gold! what u r saying makes no sense what so ever! U cant make gold out of thin air like u can with cash witch means gold has value! Do u really believe a piece of paper has value if its not backed by anything?!?!?!

[anonymous915]

"U cant make gold out of thin air like u can with cash"

No, they only mine more gold and stamp more coins - it takes a little more effort, but they can still inflate it by stamping out more coins.

[orlofskye]

reh2185, whats gold backed by?

The only difference between gold and a dollar bill is that making a dollar is easier. For either one you use for money purposes, the VALUE is derived purely from the fact that you are confident you can take one today and use it to purchase something else tomorrow.

In other words, in a purely physical sense you have no more use for a $10 bill than $10 of gold, they both have the same value to you though because you can exchange them for things you do need.

[jahege]

@reh2185 That is exactly true of every currecy. Gold has no inherent value, neither had shells, shells are the longest used currecy historicly. If you do not believe me, please try to tell me why gold has value in a different way then dollar bills (or digits on a computer storing account information) has value.

[phillyb61]

@jahege MAN !!!! Check to see if your pants are on backwards !!! If gold isn’t real money, then what is? Paper money? You need help there Skippy

[jahege]

@phillyb61 You ask me "what is the real money?". In USA dollars is the "real money", in Japan yen is the "real money". There is an endless list of goods and services you can buy for US dollars, the same is not true for gold. And if you reply again, try to be more articulate.

[mazzman120]

@jahege actually, what you described is called "fiat" currency. Backed by the faith of the people in the ability of the US gov't to pay back its debts, in gold, as described in the Constitution. Go read a history book.

[jahege]

@mazzman120 Sure, what would Thomas Jefferson say on the matter ?! Your introduction of the constitution into an evaluation of the current currency system shows you have most of your learning ahead of you on this matter.

[mitochondria09]

@anonymous915

except it's a little bit more difficult to create gold ;) As I mentioned before, there's a great article on WTF Finance on inflation and the CPI which is the Govt. figure that describes inflation. Well worth the read.

[heartlessvietboy]

Gold is a color.

[kischenko]

this was the actual truth before...

now they actually want you to think that this is happening now,,

[scott72able]

What a load of garbage.

[flangelet]

It's a no brainer.

You're right.

The usa even after pumping trillions of dollars, is likely to pump trillions more into the failed economy of the usa.

Inflation is good for debtors because it evaporates debts to managable levels. For instance, america's influence in Africa is waning because their dollar-denominated debts are reducing as we speak.

The usa has NOTHING TO SHOW for all the foreign investment loaned to the usa over the decades of excess... why would they keep lending you money?

[Tigerpaws9097826]

That inflation is actually a tax is an excellent point; I wish more people got it. My hunch is that at some point the U.S. will intentionally ratchet up inflation by printing enough money to pay off its signifcant debt; when that happens, the purchasing power held by the average person will subtantially diminish, which in essence means s/he has been taxed to pay off the debt.

[rodolphesimon]

Yea, so what. I can still buy stuff. The dollar may have lost all of it's value since 1900, but I wasn't around then. If a loaf of bread costs $2000, then I'll probably have $20,000 in my pocket, so I say again, so what. Educate me as to why this is a problem.

[wightboy12345]

It's easier to suffer hyper inflation since the dollar doesn't have an anchor (which creates a dollar crash, see Germany's economy just before WWII) and any amount of inflation devalues savings over that period

Unless you are spending all of your money immediately and your pay increases instantly proportional to inflation, you lose real dollars

I'm not saying it's immediately noticeable or that we will suffer a dollar crash, but it would probably be better to not deal with those possibilities.

[flangelet]

Imagine this...

You work all your miserable life and SAVE for your retirement. You do your best. You have $100,000.

The bank sends you a letter saying they cannot handle your account since it is too *small* an amount for them to bother themselves with. On turning over the envelope the letter from the bank cam in, you notice the stamp on the letter is for $150,000!

This is a *TRUE* story from the hyperinflation of Germany in 1923!

Does ya get it now?

[thelibertyblog]

Its a problem because it discourages saving. Why should you save any money at all if the value is constantly going down? So, when you need to make a major purchase you are forced to borrow money which you will then repay AT INTEREST.

We are in this financial situation simply because everyone is in debt to banks, which, by the way, create all the money they loan *from nothing*. Research Central Banking, Fractional Reserve Banking, and the Federal Reserve to learn more.

[Kevo2012123]

Wages will not increase with inflation if the economy isn't doing well. That's the problem. If wages continue to increase this isn't a problem but there gets to a point where wages cannot be increased and prices are skyrocketing for essentials (Food, Gas, Housing). When the cost of living increases, this makes the overall lifestyle of Americans decrease substantially. If the world sees us printing our way out of a mess, it will abandon the dollar, and the dollar is now worthless.

[mitochondria09]

@rodolphesimon

Because inflation is a tax, you basically pay for it as the money loses purchasing power. Imagine you go to work and get paid a $10 hourly wage. Today, after 4hrs of work you can take half of that $40 pay for those first 4 hours of your work and go buy yourself a good meal. What if by tomorrow the same meal costs you $30 instead of 20? What if inflation gets so out of control that by the time you are done working you can only buy half as much than when you started your shift?

[heartlessvietboy]

Inflation is not a tax. Inflation is inflation. Inflation can happen because of taxing those who own businesses, they then raise the prices of their goods. Then a domino effect happens. The money doesn't lose purchasing power, you just don't have enough money to buy the product. The money loses purchasing power when a country or a business begins refusing to accept your currency, or when they take it for lower value.

[likeriver]

thanks for this video, very helpful, I'm still very confused about how it all works but I'm learning more and more everyday.

[Re3volution]

make no mistake, commercial banks absolutely hate inflation.

the logic is simple, if you are $1,000 in debt in 1995 as a result of inflation you would need $1,400 to pay the same debt! That means that you got $400 for free!!! The greedy bankers hate you for this and will not loose a penny if your payment plan is other than fixed.

[thelibertyblog]

Not true. The bankers built the system to work like this simply because they don't have money to loan - they merely create it from thin air when you sign on the dotted line.

The reverse is also true - when you pay the loan back, the money is destroyed, back into nothing from where it came. But the INTEREST you pay to the bank in the meantime, it keeps. Pretty good deal for the banks, eh?

[matbrit143]

they did give notes. then you could take your note and go get the weight in silver for that note, it was called a silver note..learn your history . that was done away with and then came inflation!!

[surgednb]

Actually, the Gold spot low has been $730/oz.

[TheByronDaleChannel]

Where exactly in the constitution did it say that out currency was to only be gold and silver? If the founders really believed that why was the first thing they did was setup a central bank that issued notes?

[matt32539]

The banksters attempted to set up central banks several times throughout the early years and many true presidents fought them.

[WSOR4025]

Article 1 Section 10 of the Constitution says only gold and silver can be legal tender. Also Article 1 Section 8 of the Constitution says only Congress can coin money and regulate the value thereof, this makes the Fed unconstitutional.

[TheByronDaleChannel]

"No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility." No where does it state state gold and silver shall be legal tender.

[cmbsmith24]

make any Thing but gold and silver Coin a Tender in Payment of Debts is what you are looking for. watch corrupt banking system - cartels robbing the public, it's a 5 parter. includes quotes from presidents and high officials and really expains the entire system at its basic form. please watch all of it and send me your thoughs. much better then this vid at explaining things. trust me

[BetterDoYourHomeWork]

huh?

[BetterDoYourHomeWork]

Read it again.

[DJCLAYVIS]

the government is not concerned with the constitution...that would stand in the way of socialism. - i agree with your take.

[mazzman120]

@TheByronDaleChannel "No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility."

[rodolphesimon]

Helpful