One aspect overlooked is that the Fed owns a lot of the Government debt so this has cut the interest going to the non-government sector.
Another aspect overlooked is the level of income flow in an economy.
If private households/banks can service debts of 4 to 50 times income, it's not much of a problem for a Sovereign Monetary free floating currency issuing government that creates money by spending it, destroys it by taxes, as long as there's spare output capacity.
No wonder I'm a Libertarian. All these Dems want to do is spend spend spend and spend some more. What's it going to be THIS year? Another trillion? TWO Trillion? Holy crap, how does this guy LIVE with himself?
The worst part of all this: Pete Stark is still in Congress, representing California's 13th district. But hey, I probably "didn't graduate from a good enough college" to question his leadership. What a condescending prick.
This guy was being pushed to share a simple truth they do not want simple Americans to understand. This guy had been trained in nlp and economic rhetoric and none of it was working so he flipped his lid. Great interview/expose
@gydur1 Agreed, the few have become much wealthier, unlike the many, as the rogue trader said in the autumn, the stock market's toast, government debt's the safest haven for rich people particularly.
@scatcoitusmoosic Imagine if they'd simply given the money to ordinary people and stopped local government cuts, how much wealthier the many would be, instead of wealth-fare for the few?!
if you ask a banker if he creates money he will say you're absurd. If you ask a person if he creates money when he borrows, he will say you're absurd.
Yet banks and loans account for the majority of the money, and subsequently, wealth. In fact, all money comes from debt except for the principal which is created on nice hard to counterfeit green paper, or copper coins, from the u.s. mint. Going into debt doesn't create wealth, it creates money, what that money is used for can create wealth.
I don't know what everybody else thinks but Congressman Stark is a tool! He is a a tool for the big rich banks!! It's sad to see that people in CA keep re-electing this tool yet people all over the country want to clean the congressional house. Go away Pete Stark I could probably out debate you!!!!! <:(
This interviewer is dumb as fuck he has no idea how our monetary system works. The only way our country has money is to borrow it from private banks, who essentially create it out of thin air. Without that borrowing, and thus debt created, there would be no money in existence. And because the banks demand interest on that money that they create out of nothing, there will always be more debt than there is money to pay it. Its fucked but true, the congressman was right.
@georgetcr So how is the interviewer dumb? How is your description on the creation of money the only way to create wealth? You admit "its fucked but true" then shouldn't we as people try to change this system? Tell me if the idea of using gold/silver backed money is not a good idea? Try to be intellectually honest!!!!!!!!!
@taaylora No I agree with you completely that the system is a fraud and should change, I was just commenting on how the interviewer doesn't seem to grasp the way the current system works, and thus keeps asking the same layman question of debt/money without seemingly realizing that in this system money is debt.
@taaylora Using a commodity for money makes the supply of money subject to mining and is in many ways unrelated to the amount of money/lubricant needed in the economy for it to run smoothly day by day.
The money borrowed from private banks come from people who have money in savings. We pay interest on it. Or we borrow money from other countries, and pay interest on it. I agree that sometimes we need to borrow money in order to get capital to stimulate the economy, but we can't just bury ourselves in debt and expect to make wealth out of it. Real wealth comes from productivity. Sometimes we need to borrow money to stimulate that productivity, but debt alone does not build wealth
@OlympianPCs False. Money borrowed from banks, be it by people or governments is created by the banks on the spot for the loan. The principle plus x% interest is then owed back to the bank. This is the only way that money is created in our system, thus the total debt of a country is always more than the money in existence in that country. The more money in an economy, the more debt there is as well. These are the basics of our (crooked) system.
@eminemdisstopia Simply put he doesn't wanna listen to the truth. Jan Helfeld is right, The more debt we have, the less economic growth will emerge. Plus we owe more debt whihc is $ to be payed back for services, aid,etc. and we're still not wealthy. Why do Pete Stark shut up and listen to the talk. By the way, he's using a method, called socratic, Challenge a persons thesis by circumstance and ur own topic based questions.
@thodal2000 More precisely, it is the combination of the Bretton Woods system and Nixon's closing of the gold window. The nature of this combination does not result in a dollar backed by nothing. It is a dollar backed by the United States military. Otherwise someone would have come around asking for their gold by now.
and they will apply themselves to the job with a hearty yo-heave-ho. Most of them, before the uproar is over, will actually convince themselves. The winner will be whoever promises the most with the least probability of delivering anything."*
* H.L. Mencken, "The Politician" (1940), in A Mencken Chrestomathy (New York: Knopf, 1949), pp. 150-151.
When one of them demonstrates that twice two is five, another will prove that it is six, six and a half, ten, twenty, n. In brief, they will divest themselves from their character as sensible, candid and truthful men, and simply become candidates for office, bent only on collaring votes. They will all know by then, even supposing that some of them don't know it now, that votes are collared under democracy, not by talking sense but by talking nonsense,
"They will all promise every man, woman and child in the country whatever he, she or it wants. They'll all be roving the land looking for chances to make the rich poor, to remedy the irremediable, to succor the unsuccorable, to unscramble the unscrambleable, to dephlogisticate the undephlogisticable. They will all be curing warts by saying words over them, and paying off the national debt with money no one will have to earn.
The one politician in the US I can totally relate when it comes to religions and gods..... yet, he is an imbecile when it comes about the understanding of the economy. What a shame, how can people be so rational when it comes to the metaphysical yet, despite all the evidence and facts given by heavy weights like Laffer, Hayek, Misses, Huerta de Soto, he is totally clueless. Please someone give him Hazlitt´s "Economics in one lesson". He is such an asshole.
The more incompetent you are the more you overestimate your own competence. Politicians are extremely incompetent and ignorant and there self-measurement is completely fucked and they will not let anyone get a word out to challenge there view of there own superiority which this clearly shows..
Stark is very rude and he is alo mistaken. It is true that the debt is counted as an asset and therefore appears to be wealth. However lets put it in laymans terms. If you are working at Burger King for $6 an hour and I give you a $12,000,000 mansion, on paper your wealth has increased substantially. However, if you are still on a Burger King income, you will not be able to sustain the upkeep on the 12,000,000 home. The only choice then is liquidate. Debt is not wealth if its not sustainable.
It should be law, every politician should be interviewed by Jan prior to being eligible to run for office. Lets sort out the idiots before they do some real damage!
@independence4wales Or maybe their psychiatric health should be analysed on a regular basis; there is something about our media driven democracy that attracts then amplifies warped people.
Think about this. If we were not paying $240 Billion a year just to service the interest on the debt. We actually might have the money to provide healthcare for those without, if we deemed it necessary.
The less you know, the more easily worked up you can get about it, look at this fucking guy, flipping out over calm, simple questions. It's because he's WRONG, but stubborn about it. To the people in the comments section agreeing with this guy, you are learning to accept the fact that something means the opposite of what it means. War is peace, freedom is slavery, etc etc
Wealth is not fiat money. Wealth is in production. We don't increase our wealth by heaping up debt and having more money in circulation. Certainly that increases our wealth in nominal terms. But the value of that money is in decline, and so it buys less. In real terms, that money is used by the government to acquire products and services, both raising the demand (and so the cost) by competing (as a spender) in the economy AND driving the value of the dollar down (more rises in cost).
And, Pete baby (and Mr Helfeld, too): Issuing debt, by itself, does not make the nation richer! That's what deficits do. You are confused, darlings. In a closed economy, the private sector's surplus (in financial assets, e.g. greenbacks) is the govt sector's deficit BY DEFINITION. Add the external sector and nothing much chages. If you have a CAD you still need govt deficits! A government, Pete baby, can go to debt (borrow money) even when its budget is in surplus.
Start is on the right track but not entirely up to speed. He says "We're going to borrow a couple of billioj because the Republicans are going to make tax cuts". Wrong, Pete! This is not why one has to borrow. Tax money is NOT funding expenditure. Govt money is created out of thin air - and tax money goes back to thin air! That's the unshakeable, accounting reality of things. And (sorry, liberal friends!) tax cuts, i.e. govt money to priv.sector, actually, in general, BENEFIT the economy !..
So the more we owe, the wealthier we are??? So I guess that means everyone should go out and max all their credit cards out. Anyone who believes these fools are oxymoron's.
How on Earth did this Jack-ass Stark get voted into office again?? Can you imagine having such a pompous buffoon represent you in Congress? Keynesian economics doesn't work people! This should be obvious to everyone by now.
I wish you (the interviewer) would have SHUT UP and let him try to explain his reasoning. Stark was not trying to throw you some bs platitudes - he was trying to explain how he understood things. To reasonably not agree with what he was trying to say you had to UNDERSTAND what he was trying to say.
Jan I understand what you try to do, but youre not doing it right
actually Pete Stark is correct in this intervjue since youre not asking the right questions, Pete tries to tell you that debt isnt allways bad and you try some childrens logic that just imply the agenda you are after.
I totaly agree that US is fucked with its debt, but this isnt the right way to show it. Pete only gets angry because you dont understand fundamental economy (or at least dont ask questions to prove you understand).
FORGET about the money, the finances, the economy - THAT MAN IS A HORROR.
if he was a common citizen, behaving that way ... he'd be arrested and mandated, court ordered to psychological exam, counseling, therapy - TREATMENT - behavioral CORRECTION.
that man IS A HORROR. and he's currently IN ACTIVE SERVICE? i'm disgusted. REAL TIRED OF PEOPLE LIKE HIM. HE'S THE SORT OF GUY THAT MAKES SOME OTHER PEOPLE *ATTACK*.
AWESOME job the interviewer did, while being abused by the mad man.
This is a great example of why Pete Stark is a raving lunatic. First up, you aren't "smart" enough to even ask him questions. This asshole has been in office since 1973! Please Alameda County...get your head out your ass and stop voting for this blathering jackass.
okay Pete Stark is correct here people. Jan Helfeld doesnt know what he's talking about which is why Stark is getting irritated.
debt on a national level is good to an extent, so long as debt:GDP ratio is kept in check. do your research and then we'll talk.
this isnt that bullshit "oh screw the system" "you are slaves to debt and your posessions" bullshit that uneducated, pot smoking, overly liberal deadbeats would have you believe. THIS IS SOLID ECONOMIC THEORY
@bangzilla So why did the US get into this huge financial crisis? Cause other debtors didnt pay their debts anymore, The US is only still in existence because the chinese buys its worthless bonds, These papers are trash. If the chinese were to present those bonds for a cash in you couldnt pay, Living from hand into mouth
What's stupid is that a few anointed ones, Men who own the international Banks, like the Rockefeller And Rothschild families, have the power to create money out of thin air and then buy US bonds and other loans without having any real backing.
It's like playing the game monopoly ... and you get free access to the cash without having to go around the board like everyone else.
That means they are the slave masters and we people are the slaves.... just in a smoke and mirrors sort of way.
i'd like to give amercians some advice, it may come as ground breaking, abstract and totally different..... it may blow your world, it may be stupid.....or maybe not...
Economics qualifications and expert knowledge mean nothing. Consider how many socio-economic problems that have occurred without prevention much less foresight and still remain without any adequate solutions.
$5 tril debt then but now $14 tril!
Most of it has been wasted by exploiting 9/11. Very terrible indeed.
Stark could have been asked what has paid off with taxpayer funded investment.
This comment has received too many negative votesshow
He is completely right in saying the more we owe the wealthier we are.Every dollar is borrowed into existence. Without borrowing no money is printed. It's a messed up since and seems to make no sense but this guy is technically right.
A dollar represents debt. It's a common delusion that it represents wealth. Accepting a dollar as payment in a sales transaction means the federal reserve owes you lawful money (12 US Code 411). Technically you lent the purchaser the product until you can redeem the dollar for something of value.
When you use deferred payment like the type that is evidenced by a promissory note there are 2 debts. One in personam and another in rem. only one goes away when you accept a note.
@janhelfeld Wrong, if I print $1M for myself, then I'm 1M dollars wealthier, at the expense of everyone else's money being devalued. You're right in that no wealth is created, but wrong in saying that nobody is wealthier. In a inflationary system, you gain wealth by getting money faster than everyone else. As long as everyone else is working, you can leech off of the system in this manner.
@janhelfeld Wrong, if I print $1M for myself, then I'm 1M dollars wealthier, at the expense of everyone else's money being devalued. You're right in that no wealth is created, but wrong in saying that nobody is wealthier. In a inflationary system, you gain wealth by getting money faster than everyone else. As long as everyone else is working, you can leech off of the system in this manner.
@janhelfeld Some think that if you're smart enough to do this, you deserve it. I disagree. Derivatives trading creates no wealth, but allows those who know how to do it to leech off of others. There are many professions where this is the case.
@scitops Adding money grows an economy? Adding money can do little more than keep prices stable if the economy is already growing, but you say the money is the cause of the growth?If you lie about inflation you can cook your GDP numbers.China adds money in an attempt to keep the Yuan lower against the dollar. They are adding too much and causing price inflation. China hardly "needs money." They have huge reserves. Of course the Fed has more bonds but they just printed it. No inflation here! ;-/
@jburdman7 Adding money is needed for growth. Again there is a Milton Friedman vid on youtube explaining this. The government must add a small amount every year for growth. During the era of free banking the government failed to do so and pegged us to a gold standard which led to growth for five years but then recession for five years. The rest of your argument I don't understand.
They are FINANCIALLY wealthier which is what Stark is talking about. If the Government deposits $1,000,000 in your bank account you are much wealthier than you were before. You have much more purchasing power than you had previously to buy the goods and services available in the economy for purchase. Additionally, if the economy is operating below its full capacity, if those dollars are spent, they will stimulate more production of REAL wealth and jobs.
@janhelfeld With as much respect as possible, you are entirely off the mark. A government foes not work the way an individual does. We do not print out own money - but the government does. Even if we had legally the right to print our money, let's say for using it our city, that money would not have much value even in our city. The reason government money is respected across society is because this is the only instrument that the government accepts as retiring our debt to it, i.e. paying taxes.
@thodal2000 no he is not and neither are you.. borrowed money does one of the two: purchase goods and consume them and thus make them fade out of existence or 2. purchase capital aka factory machinery, capital to work, capital to educate and train people so higher productive efficiency can be achieve and thus expanding the future productivity curve and make the society as a whole end up with more goods in the future. thus far that borrowed money has depleted resources and made us poorer.so no
@thodal2000 Correct. Every dollar represents debt, They do not represent anything else as they are backed by nothing. Well, nothing except people's willingness to believe they are worth something. That is rapidly collapsing as Soros wants to replace the dollar with a reserve currency he can make even more money from. Our misery, the misery of the Middle Class, is the joy of Progressives and bankers everywhere who took our wealth. Otherwise, they would do something different.
In what dreamworld? If the Government deposits $50,000 in your bank account, the prices at your local stores don't magically go up. There is absolutely zero correlation between the money supply and CPI. Inflation has more to do with rising wages, cost of raw materials, and costs of capital goods more than anything else.
@slimhwo Just nonsense slimhwo. You clearly don't understand monetary policy. If the value of the dollar didn't go down, why doesn't the government just print up a million bucks for every single person, including $14.4 trillion for the national debt? Heck, in that case, let's do away with any form of taxation and just print the money needed for the federal budget. In your world, the value of the dollar wouldn't change and everything would be utopia!
Wait. What? You don't understand fractional reserve banking, mediums of indirect exchange, or the simple money multiplier (much less the complex MM) if you make statements like this.
@PiratesWonderful Like i said before the FED has to deposit (with the US Treasurer)collateral to print money at PAR. The more dollar bills in circulation the more collateral in the US Treasurers possession.
When is the last time you redeemed a Federal Reserve Note? Never? In practice that, the debt is never actually satisfied by a loss of hard assets. Your working on the faulty assumption that the system is not fraudulently executed. If I print unbacked notes and acquire goods am I richer? YES
@thodal2000 This kind of ignorance is incredibly dangerous. Printing presses don't create wealth, they create currency. The wealth just goes into smaller divisions; it inflates.
Think about it. (If you borrow $800b but only grow $200b, well that's 200-800=-$600 PLUS interest payments on the $800b. Wealth has not increased, not by a long shot.)
@WeekendAtBernankes what you people are failing to understand are basically a few things.
1. FRN's are not money.(U.S. v. Thomas 319 F.3d 640)
2.FRN's are invariably NEVER redeemed for money. So all the printing in the world means nothing because the core asset is never liquidated or redeemed.
3.Who is being borrowed from? Anyone that Accepts a FRN in payment instead of money.
People have been tricked. When the US borrows , money it parts with nothing....EVER. They are getting stuff for free.
1. There may be issues surrounding the validity of FRNs but money is anything used as a means of exchange. Despite the fact that it is created by fiat, it can still be exchanged for goods and services, which is the definition of money.
2. FRN's are based on faith and credit, sure, and are not redeemable for precious metals at a bank. Only at the PM store.
3. Holding dollars is shorting gold.
Search yt for "JP Morgan Bears"; read ZeroHedge com
@WeekendAtBernankes "You people" means people that have commented back at me agreeing with Stark's basic premise. The Money system is a inherently criminal enterprise. People are approaching the problem as if the entire thing were not built on fraud. Think of it this way.... If I borrow "money" that I am never going to pay back and acquire goods and services with said bogus notes am I wealthier? YES ! I might not be "on paper" or in my "financial report" but I am certainly wealthier IN FACT.
@thodal2000 I agree with you on the shadiness of fiat. However, to say that assets (capital or durable goods i.e. precious metals, oil, etc.) acquired with fiat are not wealth is absurd. If I purchase a lathe with gold or with fiat it is still a lathe, and if I purchase gold with fiat it is still gold. These are assets. Debt is a liability. If the value of my assets exceeds the value of my debts I have positive wealth. Simple arithmetic. I suspect we are in alignment on the fundamentals.
What ever they purportedly owe , they US gov't has decreed to pay back it's debts exclusively in the Promissory Notes of a private bank. That private bank that does not redeem it's notes for anything of value .
The US basically is a created a money system in which it can never default.
You can't "cash out" federal reserve notes for anything of value. When is the last time someone did a notarial presentment on the FED or the Treasury.
Great interview Jan! The ad hominems were unwarranted tho. Very interesting was his statement, "Let's come back" in an attempt to change the subject he didn't like. Like many politicians, this was in response to his realizing you nearly boxed him into conceding the absurdity of his statement. The logical conclusion is to borrow as much money as humanly possible. But he can't admit that. I wish you pressed him further on this, but then again, he definitely would have thrown you out the window!
Condescension, insults, and threats all within 4 minutes of being asked a few questions that are not softballs. And Stark is like ALL congressmen. They are all sociopaths. The voting conformists who elect them are totally unaware of this situation. Thanks for doing this, Jan! I'd like to work with you in the future, when I have more capital to contribute to a project that can take your work in a new direction. :D I strongly recommend "Why Everything Feels Wrong" by Wil Jones at STR
wow... I never knew that "bigger debt = bigger wealth" ... that's it, I'm signing up for four more credit cards and max them out and it should make me incredibly well off. Thanks Congressman Stark! You've just helped me out a bunch! (when the collection agencies start calling, I'll just give them your phone number)
What this fails to mention is that the whole concept of debt and credit is based on fake principles. Your money is being leveraged 40 fold to create the credit that is then given out to you, and thus creating the perpetual cycle of debt. This cannot sustain over time, and thus we will suffer the consequences.
BTW guys - take my advice and call LL at ---888-338-3875 , they helped me sort all of my credit problems within 3 months, for $40 bucks. The best investment I've ever made. "
Did you know the Pres. flew BO, their dog, in on a separate smaller jet to Maine for their vacation???? Wonder if that sets well with all the unemployed, hurting, US citizens who can't afford food, but we can pay for this. The above is true.
I Googled "Bo the dog flying to Maine " and got 76,700 references verifying this.
What an asshole... Do you have a PhD in economics from Harvard? No? Then how could you possibly understand how beautiful and magical Keynesian economics is? Debt = wealth, spending more than you make = responsible, blah blah blah.
Jan, you are right here but this bumbling idiot will never admit he is wrong because he is better than us normal folk, he graduated from a much better school than you. The only way he wins his argument is by throwing you out of his office and brow beating you.
There is a certain logic to what he's saying in regards to building wealth via debt but there's a problem. That borrowed money, in large part, is not being used to build wealth (ie. investment in new sophisticated technologies, increases in government efficiency, mineral extraction, etc.)
Its borrowed money flushed down the toilet on things like social security, multiple wars, medicare/caid, etc. Those enterprises do not make anybody wealthy anymore than breaking my arm makes me richer.
This country is going to hell Jan. People aren't seeing the obvious proof these politicians are destroying us. There is a difference between debt and credit. They attack our Constitutional rights, they think they are above the law. They are making us dependent upon other countries, the oil situation will get far worse but yet they won't let us drill. Ask the Japanese how cutting off their oil supply worked for them prior to the Pearl Harbor attack... People just aren't getting it.
Wow... So... if i go into crazy debt I will come out richer and more wealthy... even joking, high, drunk... that still doesnt make sense to me.
This guy is a dork. Currently the interest rate is 1% on that debt, you can barrow more money at that rate but if the economy crashes that interest rate goes up, then for just holding the debt it will grow due to the interest alone.
wow! that is a new concept, the more in debt slavery you are the more wealthier you are? well maybe I should get in more debt so I can be wealthier so I can buy myself out of slavery. what! I never heard of being a debter as a benefit rather than a liability is this the owellian thingy rearing it's ugly head? up is down, black is white, war is peace, ignorance is strenth, this one I dont understand.
@TheRosa63 What you are saying is absolutely true for a household, a corporation, a private entity. A government that is a monopoloy issuer of its sovereign currency is not fiscally constrained. It can ALWAYS pay it debts! (Which is why this whole talk about the US defaulting is extremely absurd.) We can argue about the dangers of inflation, etc, but we cannot seriously argue about the US defaulting - its budgets have mostly been in deficit and its debt rising for eons: yet it's doing well, no?.
Interesting. He makes Jan seem "uneducated" because the school he graduated does not carry prestige, yet the virtue of patience is worth more than graduating from the top universities around the world.....Manners 101 is what this Congressman needs.
Not only that but Jan proved that he is intelligent. This clip details it.
Government spending on roads , hospitals ,and public institutions is supposed to increase demand for goods. Thus increase the amount of goods needed to be supplied.. than higher income for everyone!
hahaha its all bullshit though, The more you develop your country, the worse you have it!
although u get convienence and materials , you end up losing the most valuable thing... our natural habitat ( or just breathing room ) .
@hoftrog I disagree with Rep.Stark:massive deficit spending is a bad thing.The real question is who can better reduce deficits.Here there is no doubt.Republibums are debt creators.Democrats are budget balancers.Just look up the numbers you Goddam Repub-scum-suckers.Starting with Ronald Ray-gun.That jerkwad almost tripled the nat.debt on his watch.It's called borrow and spend.The all time king def spender was W.Bush. He took the debt from 5 to 12 trl on his miserable watch.Helfeld is so annoying!
This is an example of the extremely flawed thinking of liberal academics who think you need a doctorate in order to have any common sense. I really believe that the simple minded person here is the educated one.
Jan reminds me of Ali G!
One aspect overlooked is that the Fed owns a lot of the Government debt so this has cut the interest going to the non-government sector.
Another aspect overlooked is the level of income flow in an economy.
If private households/banks can service debts of 4 to 50 times income, it's not much of a problem for a Sovereign Monetary free floating currency issuing government that creates money by spending it, destroys it by taxes, as long as there's spare output capacity.
WillOrng 15 hours ago
was he like crying at the end when he was cursing ? his voice changed a bit there ..
mithars 2 days ago
@mithars THANK YOU for all your comments.
janhelfeld 13 hours ago
Calling such keynesian nonsense economics, is a degradation of the whole economics field.
kjakobsen 2 days ago
No wonder I'm a Libertarian. All these Dems want to do is spend spend spend and spend some more. What's it going to be THIS year? Another trillion? TWO Trillion? Holy crap, how does this guy LIVE with himself?
evelsteev 2 days ago
The worst part of all this: Pete Stark is still in Congress, representing California's 13th district. But hey, I probably "didn't graduate from a good enough college" to question his leadership. What a condescending prick.
OlympianPCs 2 days ago
This guy was being pushed to share a simple truth they do not want simple Americans to understand. This guy had been trained in nlp and economic rhetoric and none of it was working so he flipped his lid. Great interview/expose
Dehzee 5 days ago 2
What a tasteless and ugly office?
Is this all what these congressmen are offered?
Looks like an office belonging to a guy working in a banana import company...:)
gydur1 3 weeks ago
let him talk stupid Jack
MrBigboss20011 4 weeks ago
national debt was 5 trillions in 2008...now it is 14 trillions ... and how much richer people in the US have become! WHAT a genious!
gydur1 1 month ago
@gydur1
I know I'm feeling it! We are on our way to becoming the richest country ever.
sm3llyc4t 3 weeks ago
@gydur1 Agreed, the few have become much wealthier, unlike the many, as the rogue trader said in the autumn, the stock market's toast, government debt's the safest haven for rich people particularly.
WillOrng 15 hours ago
Pete makes me cringe, he has such a high opinion of himself.
fightingirishman726 1 month ago
Pete stark opposed the iraq war and the patriot act. He also opposed the 700 billion dollar bailout under Obama. He's not an entirely evil man
scatcoitusmoosic 1 month ago
@scatcoitusmoosic Imagine if they'd simply given the money to ordinary people and stopped local government cuts, how much wealthier the many would be, instead of wealth-fare for the few?!
WillOrng 14 hours ago
if you ask a banker if he creates money he will say you're absurd. If you ask a person if he creates money when he borrows, he will say you're absurd.
Yet banks and loans account for the majority of the money, and subsequently, wealth. In fact, all money comes from debt except for the principal which is created on nice hard to counterfeit green paper, or copper coins, from the u.s. mint. Going into debt doesn't create wealth, it creates money, what that money is used for can create wealth.
MrBigEnchilada 1 month ago
I don't know what everybody else thinks but Congressman Stark is a tool! He is a a tool for the big rich banks!! It's sad to see that people in CA keep re-electing this tool yet people all over the country want to clean the congressional house. Go away Pete Stark I could probably out debate you!!!!! <:(
taaylora 1 month ago
the bigger the debt the wealthier the country.... nice.... ;\
margoliesmedia 1 month ago
This interviewer is dumb as fuck he has no idea how our monetary system works. The only way our country has money is to borrow it from private banks, who essentially create it out of thin air. Without that borrowing, and thus debt created, there would be no money in existence. And because the banks demand interest on that money that they create out of nothing, there will always be more debt than there is money to pay it. Its fucked but true, the congressman was right.
georgetcr 2 months ago
@georgetcr Is that sarcasm?
jakebwallace 1 month ago
@jakebwallace I sure hope that was sarcasm!
dcoyaz 1 month ago
@jakebwallace No. The interviewer didn't seem to comprehend that money is debt and thus kept asking the same stupid questions.
georgetcr 1 month ago
@georgetcr Is gold debt?
jakebwallace 1 month ago
@jakebwallace Gold is an element. Where are you going with this?
georgetcr 1 month ago
@georgetcr So how is the interviewer dumb? How is your description on the creation of money the only way to create wealth? You admit "its fucked but true" then shouldn't we as people try to change this system? Tell me if the idea of using gold/silver backed money is not a good idea? Try to be intellectually honest!!!!!!!!!
taaylora 1 month ago
@taaylora No I agree with you completely that the system is a fraud and should change, I was just commenting on how the interviewer doesn't seem to grasp the way the current system works, and thus keeps asking the same layman question of debt/money without seemingly realizing that in this system money is debt.
georgetcr 1 month ago
@georgetcr
So we're not allowed to question if there are any flaws in such a system?
OlympianPCs 2 days ago
@taaylora Using a commodity for money makes the supply of money subject to mining and is in many ways unrelated to the amount of money/lubricant needed in the economy for it to run smoothly day by day.
WillOrng 14 hours ago
@georgetcr
The money borrowed from private banks come from people who have money in savings. We pay interest on it. Or we borrow money from other countries, and pay interest on it. I agree that sometimes we need to borrow money in order to get capital to stimulate the economy, but we can't just bury ourselves in debt and expect to make wealth out of it. Real wealth comes from productivity. Sometimes we need to borrow money to stimulate that productivity, but debt alone does not build wealth
OlympianPCs 2 days ago
@OlympianPCs False. Money borrowed from banks, be it by people or governments is created by the banks on the spot for the loan. The principle plus x% interest is then owed back to the bank. This is the only way that money is created in our system, thus the total debt of a country is always more than the money in existence in that country. The more money in an economy, the more debt there is as well. These are the basics of our (crooked) system.
georgetcr 2 days ago
Some day if you shut up we can talk
How's it possible to talk if you shut up?
eminemdisstopia 2 months ago
@eminemdisstopia good point.
janhelfeld 2 months ago
@eminemdisstopia Simply put he doesn't wanna listen to the truth. Jan Helfeld is right, The more debt we have, the less economic growth will emerge. Plus we owe more debt whihc is $ to be payed back for services, aid,etc. and we're still not wealthy. Why do Pete Stark shut up and listen to the talk. By the way, he's using a method, called socratic, Challenge a persons thesis by circumstance and ur own topic based questions.
TheCanaanknight 1 month ago
@eminemdisstopia I practiced a few times, it shocked me to find how knowledgable I got through each topic thesis. Give it a try, c wat u think.
TheCanaanknight 1 month ago
@eminemdisstopia That's how politicians have a debate. They tell you the "facts" and you say, great.
dyne313 2 days ago
I am done voting democrat...Fuck that Stark pos.
pettyofficer30 2 months ago
This has been flagged as spam show
Watch /watch?v=n4em7VeCHSs and /watch?v=7R4yEqdKYyM to make sure that you have not been brainwashed and have an accurate pitcture of things !!!!
ncollier1 2 months ago
pete stark
worthless scum..
chena3 2 months ago
Jan did an amazing job at keeping his composure.
DjZephy 2 months ago
This has been flagged as spam show
arrogant & ignorant, the perfect politician.
enriquedacostacambio 2 months ago
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enriquedacostacambio 2 months ago
@thodal2000 More precisely, it is the combination of the Bretton Woods system and Nixon's closing of the gold window. The nature of this combination does not result in a dollar backed by nothing. It is a dollar backed by the United States military. Otherwise someone would have come around asking for their gold by now.
WeekendAtBernankes 3 months ago
Pete Stark sure is an asshole over these "stupid questions" that he can't seem to answer.
Zzyxzaa 4 months ago
The series that warned American viewers
Search For
"BUSH OBAMA DESTROYED US ARMY"
eliasmouawad 4 months ago in playlist eliasmouawad's Favorited Videos
BTW Pete Stark is a turd who needs to go back to high school.
WeekendAtBernankes 4 months ago
Nice to see this kind of brains in Congress (sarcasm intended) the end must truly be at hand , financially anyways..
lowslowflyer77 4 months ago 2
and they will apply themselves to the job with a hearty yo-heave-ho. Most of them, before the uproar is over, will actually convince themselves. The winner will be whoever promises the most with the least probability of delivering anything."*
* H.L. Mencken, "The Politician" (1940), in A Mencken Chrestomathy (New York: Knopf, 1949), pp. 150-151.
bhobbs 4 months ago
When one of them demonstrates that twice two is five, another will prove that it is six, six and a half, ten, twenty, n. In brief, they will divest themselves from their character as sensible, candid and truthful men, and simply become candidates for office, bent only on collaring votes. They will all know by then, even supposing that some of them don't know it now, that votes are collared under democracy, not by talking sense but by talking nonsense,
bhobbs 4 months ago
"They will all promise every man, woman and child in the country whatever he, she or it wants. They'll all be roving the land looking for chances to make the rich poor, to remedy the irremediable, to succor the unsuccorable, to unscramble the unscrambleable, to dephlogisticate the undephlogisticable. They will all be curing warts by saying words over them, and paying off the national debt with money no one will have to earn.
bhobbs 4 months ago
I can't believe that racist bastard besmirched the University of Puerto Rico.
bhobbs 4 months ago
GOLD and SILVER
ssg10 5 months ago
The one politician in the US I can totally relate when it comes to religions and gods..... yet, he is an imbecile when it comes about the understanding of the economy. What a shame, how can people be so rational when it comes to the metaphysical yet, despite all the evidence and facts given by heavy weights like Laffer, Hayek, Misses, Huerta de Soto, he is totally clueless. Please someone give him Hazlitt´s "Economics in one lesson". He is such an asshole.
lapiz1969 5 months ago
The more incompetent you are the more you overestimate your own competence. Politicians are extremely incompetent and ignorant and there self-measurement is completely fucked and they will not let anyone get a word out to challenge there view of there own superiority which this clearly shows..
EscapingLeviathan 5 months ago
Stark is very rude and he is alo mistaken. It is true that the debt is counted as an asset and therefore appears to be wealth. However lets put it in laymans terms. If you are working at Burger King for $6 an hour and I give you a $12,000,000 mansion, on paper your wealth has increased substantially. However, if you are still on a Burger King income, you will not be able to sustain the upkeep on the 12,000,000 home. The only choice then is liquidate. Debt is not wealth if its not sustainable.
mozartgenetics 5 months ago
It should be law, every politician should be interviewed by Jan prior to being eligible to run for office. Lets sort out the idiots before they do some real damage!
independence4wales 5 months ago 14
@independence4wales good channel comment, thanks.
janhelfeld 5 months ago
@janhelfeld how the hell do you get ANYONE to give you an interview?!?!
.
don't these people know who you are?! don't they know you'll ask them actual questions and not take any bullshit?!
ZamolxisReborn 2 months ago
@independence4wales 100% agreed.
TheCanaanknight 1 month ago
@independence4wales Or maybe their psychiatric health should be analysed on a regular basis; there is something about our media driven democracy that attracts then amplifies warped people.
WillOrng 15 hours ago
Think about this. If we were not paying $240 Billion a year just to service the interest on the debt. We actually might have the money to provide healthcare for those without, if we deemed it necessary.
TheTriper57 5 months ago
The less you know, the more easily worked up you can get about it, look at this fucking guy, flipping out over calm, simple questions. It's because he's WRONG, but stubborn about it. To the people in the comments section agreeing with this guy, you are learning to accept the fact that something means the opposite of what it means. War is peace, freedom is slavery, etc etc
BeholdTheMagicEgg 6 months ago
Wealth is not fiat money. Wealth is in production. We don't increase our wealth by heaping up debt and having more money in circulation. Certainly that increases our wealth in nominal terms. But the value of that money is in decline, and so it buys less. In real terms, that money is used by the government to acquire products and services, both raising the demand (and so the cost) by competing (as a spender) in the economy AND driving the value of the dollar down (more rises in cost).
enjerth78 6 months ago 9
@enjerth78 True if the economy is at full employment of people and capital, if it's not, then increased spending increases real output and incomes.
There is no need to borrow back the net-spending increase to aggregate demand deficits inject into the economy.
Budget surpluses reduce the aggregate demand in the economy; continual surpluses suck out net private wealth from the economy...aka stalinism.
WillOrng 15 hours ago
Asshole !!!!!
MrTtillub 6 months ago
CAD: current account deficit
sternumagnum 6 months ago
And, Pete baby (and Mr Helfeld, too): Issuing debt, by itself, does not make the nation richer! That's what deficits do. You are confused, darlings. In a closed economy, the private sector's surplus (in financial assets, e.g. greenbacks) is the govt sector's deficit BY DEFINITION. Add the external sector and nothing much chages. If you have a CAD you still need govt deficits! A government, Pete baby, can go to debt (borrow money) even when its budget is in surplus.
sternumagnum 6 months ago 2
Start is on the right track but not entirely up to speed. He says "We're going to borrow a couple of billioj because the Republicans are going to make tax cuts". Wrong, Pete! This is not why one has to borrow. Tax money is NOT funding expenditure. Govt money is created out of thin air - and tax money goes back to thin air! That's the unshakeable, accounting reality of things. And (sorry, liberal friends!) tax cuts, i.e. govt money to priv.sector, actually, in general, BENEFIT the economy !..
sternumagnum 6 months ago 2
To say that creating MORE debt will make us wealthy is ABSURD. I don't care who you are.
phillip78 6 months ago
So the more we owe, the wealthier we are??? So I guess that means everyone should go out and max all their credit cards out. Anyone who believes these fools are oxymoron's.
phillip78 6 months ago
@phillip78
He specifically said this applies only to the Federal Government. Like Jan from the University of Puerto Rico, you refuse to listen.
slimhwo 6 months ago
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phillip78 6 months ago
Was stark crying at the end?
uzi2004 6 months ago
so its inevitable that a trillion more is spent? What does that mean? They either spend more or not. Its not like it just happens on its own.
packerfan748 6 months ago
How on Earth did this Jack-ass Stark get voted into office again?? Can you imagine having such a pompous buffoon represent you in Congress? Keynesian economics doesn't work people! This should be obvious to everyone by now.
ITown35 6 months ago
I wish you (the interviewer) would have SHUT UP and let him try to explain his reasoning. Stark was not trying to throw you some bs platitudes - he was trying to explain how he understood things. To reasonably not agree with what he was trying to say you had to UNDERSTAND what he was trying to say.
starjots 6 months ago
Jan I understand what you try to do, but youre not doing it right
actually Pete Stark is correct in this intervjue since youre not asking the right questions, Pete tries to tell you that debt isnt allways bad and you try some childrens logic that just imply the agenda you are after.
I totaly agree that US is fucked with its debt, but this isnt the right way to show it. Pete only gets angry because you dont understand fundamental economy (or at least dont ask questions to prove you understand).
ZoraleePvP 6 months ago
wow this guy has been in office for 30 yrs.
someone should kill him.,...hes part of the disease
Dkouts57 6 months ago
FORGET about the money, the finances, the economy - THAT MAN IS A HORROR.
if he was a common citizen, behaving that way ... he'd be arrested and mandated, court ordered to psychological exam, counseling, therapy - TREATMENT - behavioral CORRECTION.
that man IS A HORROR. and he's currently IN ACTIVE SERVICE? i'm disgusted. REAL TIRED OF PEOPLE LIKE HIM. HE'S THE SORT OF GUY THAT MAKES SOME OTHER PEOPLE *ATTACK*.
AWESOME job the interviewer did, while being abused by the mad man.
mindnumber9 6 months ago
You miss the point completely... A big stool DOESN'T ALWAYS MEAN A CLOGGED TOILET!!!
SuperDickweed 6 months ago
Pete seems to think that
A) China lends to us at its obvious disadvantage, and
B) what the government does with borrowed money will be more economically effective than what market forces would do with it.
Either position should cause a failing grade in Econ 1.
Just wait til China tolls all your freeways for payment, Pete.
jburdman7 6 months ago
Neo-commie parroting the Keynesian imbecility. He is also a "Humanist"...this "Humanists" sure love government and power.
GodHatesPortugal 6 months ago
Well, the good news is we finally started borrowing that trillion dollars every 8 months or so
Beacon342 7 months ago
Wow, I'm amazed a Congressman would lose his cool like that... very unprofessional.
Spudst3r 7 months ago
I can agree with a lot of things Stark pushes for, but I wish he would quit with the ad hominem arguments. It's not helping his side.
DantehMan 7 months ago
This is a great example of why Pete Stark is a raving lunatic. First up, you aren't "smart" enough to even ask him questions. This asshole has been in office since 1973! Please Alameda County...get your head out your ass and stop voting for this blathering jackass.
DickLodge68 8 months ago
go Pete!
tertullian2009 8 months ago
@tertullian2009 fucking moron...
david52875 7 months ago
"debt is a measure of wealth" Could he be any more deluded? This is mind-bogglingly stupid.
networkedfreedom 8 months ago 2
its grown now to 15 billion. only 6 years later, you dont need an MBA to understand where this is going
lunafringe10 8 months ago
Please allow me to use this footage for a film I am creating.
heimannstudios 8 months ago
Stark is the very epitome of asshole. If he were my boss, I'd tell him to shove my job up his sorry ass.
cincyblows 8 months ago
WoW .. peter stark is a maniac!
more debt means you are more in the shit with debt, huge escalating interest rates.
these shills like peter need to be arrested and put in jail, very dangerous man indeed.
hashmonster2004 8 months ago
This is why Islam forbids interest
MrMohammedr9 8 months ago
"debt on a national level is good"
If it's bad on the personal level, than it doesn't just magically become good on the national level.
TheCapitalistdog 8 months ago
okay Pete Stark is correct here people. Jan Helfeld doesnt know what he's talking about which is why Stark is getting irritated.
debt on a national level is good to an extent, so long as debt:GDP ratio is kept in check. do your research and then we'll talk.
this isnt that bullshit "oh screw the system" "you are slaves to debt and your posessions" bullshit that uneducated, pot smoking, overly liberal deadbeats would have you believe. THIS IS SOLID ECONOMIC THEORY
bangzilla 9 months ago
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TheCapitalistdog 8 months ago
@bangzilla So why did the US get into this huge financial crisis? Cause other debtors didnt pay their debts anymore, The US is only still in existence because the chinese buys its worthless bonds, These papers are trash. If the chinese were to present those bonds for a cash in you couldnt pay, Living from hand into mouth
lunafringe10 8 months ago
Tax all the people,,including the GD Politicians ,,make them live under the same laws that they pass,,,
jimbo4261 9 months ago
good work. I do not know why you did not vomit ,hearing his answers. really we have great corrupt congress that is covering up for the FED.
albertsneijMD 9 months ago
What's stupid is that a few anointed ones, Men who own the international Banks, like the Rockefeller And Rothschild families, have the power to create money out of thin air and then buy US bonds and other loans without having any real backing.
It's like playing the game monopoly ... and you get free access to the cash without having to go around the board like everyone else.
That means they are the slave masters and we people are the slaves.... just in a smoke and mirrors sort of way.
batfly 9 months ago
Stark is a condescending little dickhead. He understands Keynesian economics, not real economics.
mcduffiesteven 9 months ago
i'd like to give amercians some advice, it may come as ground breaking, abstract and totally different..... it may blow your world, it may be stupid.....or maybe not...
HAVE money in tha bank!!!!
alexandersydney 9 months ago
you are very condescending and I find it annoying. You may be right, but your tone is wrong
chuckieboy1988 9 months ago
Economics qualifications and expert knowledge mean nothing. Consider how many socio-economic problems that have occurred without prevention much less foresight and still remain without any adequate solutions.
$5 tril debt then but now $14 tril!
Most of it has been wasted by exploiting 9/11. Very terrible indeed.
Stark could have been asked what has paid off with taxpayer funded investment.
franknblunt 9 months ago
This comment has received too many negative votes show
He is completely right in saying the more we owe the wealthier we are.Every dollar is borrowed into existence. Without borrowing no money is printed. It's a messed up since and seems to make no sense but this guy is technically right.
thodal2000 9 months ago
@thodal2000 If you produce a product and someone gives you a dollar for it the dollar represents wealth.
However, if you photo copy a dollar and then you borrow it, no wealth has been created and nobody is wealthier.
janhelfeld 9 months ago 36
@janhelfeld
A dollar represents debt. It's a common delusion that it represents wealth. Accepting a dollar as payment in a sales transaction means the federal reserve owes you lawful money (12 US Code 411). Technically you lent the purchaser the product until you can redeem the dollar for something of value.
When you use deferred payment like the type that is evidenced by a promissory note there are 2 debts. One in personam and another in rem. only one goes away when you accept a note.
thodal2000 9 months ago
@janhelfeld Wrong, if I print $1M for myself, then I'm 1M dollars wealthier, at the expense of everyone else's money being devalued. You're right in that no wealth is created, but wrong in saying that nobody is wealthier. In a inflationary system, you gain wealth by getting money faster than everyone else. As long as everyone else is working, you can leech off of the system in this manner.
RyanTheIncredulous 9 months ago
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@janhelfeld Wrong, if I print $1M for myself, then I'm 1M dollars wealthier, at the expense of everyone else's money being devalued. You're right in that no wealth is created, but wrong in saying that nobody is wealthier. In a inflationary system, you gain wealth by getting money faster than everyone else. As long as everyone else is working, you can leech off of the system in this manner.
RyanTheIncredulous 9 months ago
@janhelfeld Some think that if you're smart enough to do this, you deserve it. I disagree. Derivatives trading creates no wealth, but allows those who know how to do it to leech off of others. There are many professions where this is the case.
RyanTheIncredulous 9 months ago
@janhelfeld Pete stark is right you're a moron. If you ask him a question let the man answer for fuck sake.
OtagoMark 9 months ago 3
@janhelfeld
A growing economy needs additional money. Read Friedman. The collapse of credit is why the great depression occurred.
scitops 7 months ago
@scitops A growing economy (such as China, with $3,000B in currency reserves) needs additional what? I was with you till that point.
jburdman7 6 months ago
@jburdman7 The government needs to put in extra money in order to grow the economy. China puts additional money into circulation every year.
scitops 6 months ago
@scitops Adding money grows an economy? Adding money can do little more than keep prices stable if the economy is already growing, but you say the money is the cause of the growth?If you lie about inflation you can cook your GDP numbers.China adds money in an attempt to keep the Yuan lower against the dollar. They are adding too much and causing price inflation. China hardly "needs money." They have huge reserves. Of course the Fed has more bonds but they just printed it. No inflation here! ;-/
jburdman7 6 months ago
@jburdman7 Adding money is needed for growth. Again there is a Milton Friedman vid on youtube explaining this. The government must add a small amount every year for growth. During the era of free banking the government failed to do so and pegged us to a gold standard which led to growth for five years but then recession for five years. The rest of your argument I don't understand.
scitops 6 months ago
@janhelfeld
They are FINANCIALLY wealthier which is what Stark is talking about. If the Government deposits $1,000,000 in your bank account you are much wealthier than you were before. You have much more purchasing power than you had previously to buy the goods and services available in the economy for purchase. Additionally, if the economy is operating below its full capacity, if those dollars are spent, they will stimulate more production of REAL wealth and jobs.
slimhwo 6 months ago
@janhelfeld With as much respect as possible, you are entirely off the mark. A government foes not work the way an individual does. We do not print out own money - but the government does. Even if we had legally the right to print our money, let's say for using it our city, that money would not have much value even in our city. The reason government money is respected across society is because this is the only instrument that the government accepts as retiring our debt to it, i.e. paying taxes.
sternumagnum 6 months ago
@thodal2000 no he is not and neither are you.. borrowed money does one of the two: purchase goods and consume them and thus make them fade out of existence or 2. purchase capital aka factory machinery, capital to work, capital to educate and train people so higher productive efficiency can be achieve and thus expanding the future productivity curve and make the society as a whole end up with more goods in the future. thus far that borrowed money has depleted resources and made us poorer.so no
spyletu 9 months ago
@thodal2000 dollar's aren't wealth. It's paper. Have you tried printing gold recently?
delatroy 8 months ago
@thodal2000 Correct. Every dollar represents debt, They do not represent anything else as they are backed by nothing. Well, nothing except people's willingness to believe they are worth something. That is rapidly collapsing as Soros wants to replace the dollar with a reserve currency he can make even more money from. Our misery, the misery of the Middle Class, is the joy of Progressives and bankers everywhere who took our wealth. Otherwise, they would do something different.
emmy1cat 6 months ago
@thodal2000 No he's not, because for every dollar printed, the value of the dollar goes down.
larrybud 6 months ago
@larrybud Uhmm the Fed has to deposit an equal amount of collateral for every dollar printed.
thodal2000 6 months ago
@larrybud
In what dreamworld? If the Government deposits $50,000 in your bank account, the prices at your local stores don't magically go up. There is absolutely zero correlation between the money supply and CPI. Inflation has more to do with rising wages, cost of raw materials, and costs of capital goods more than anything else.
slimhwo 6 months ago
@slimhwo Just nonsense slimhwo. You clearly don't understand monetary policy. If the value of the dollar didn't go down, why doesn't the government just print up a million bucks for every single person, including $14.4 trillion for the national debt? Heck, in that case, let's do away with any form of taxation and just print the money needed for the federal budget. In your world, the value of the dollar wouldn't change and everything would be utopia!
larrybud 5 months ago
@thodal2000
Wait. What? You don't understand fractional reserve banking, mediums of indirect exchange, or the simple money multiplier (much less the complex MM) if you make statements like this.
PiratesWonderful 5 months ago
@PiratesWonderful Like i said before the FED has to deposit (with the US Treasurer)collateral to print money at PAR. The more dollar bills in circulation the more collateral in the US Treasurers possession.
When is the last time you redeemed a Federal Reserve Note? Never? In practice that, the debt is never actually satisfied by a loss of hard assets. Your working on the faulty assumption that the system is not fraudulently executed. If I print unbacked notes and acquire goods am I richer? YES
thodal2000 5 months ago
@thodal2000 This kind of ignorance is incredibly dangerous. Printing presses don't create wealth, they create currency. The wealth just goes into smaller divisions; it inflates.
freeeekyyy 5 months ago
@thodal2000 Wealth = Assets - Liabilities.
Assets MINUS Liabilities.
Think about it. (If you borrow $800b but only grow $200b, well that's 200-800=-$600 PLUS interest payments on the $800b. Wealth has not increased, not by a long shot.)
WeekendAtBernankes 4 months ago
@WeekendAtBernankes what you people are failing to understand are basically a few things.
1. FRN's are not money.(U.S. v. Thomas 319 F.3d 640)
2.FRN's are invariably NEVER redeemed for money. So all the printing in the world means nothing because the core asset is never liquidated or redeemed.
3.Who is being borrowed from? Anyone that Accepts a FRN in payment instead of money.
People have been tricked. When the US borrows , money it parts with nothing....EVER. They are getting stuff for free.
thodal2000 4 months ago
@thodal2000 What do you mean, "you people?" :)
1. There may be issues surrounding the validity of FRNs but money is anything used as a means of exchange. Despite the fact that it is created by fiat, it can still be exchanged for goods and services, which is the definition of money.
2. FRN's are based on faith and credit, sure, and are not redeemable for precious metals at a bank. Only at the PM store.
3. Holding dollars is shorting gold.
Search yt for "JP Morgan Bears"; read ZeroHedge com
WeekendAtBernankes 4 months ago
@WeekendAtBernankes "You people" means people that have commented back at me agreeing with Stark's basic premise. The Money system is a inherently criminal enterprise. People are approaching the problem as if the entire thing were not built on fraud. Think of it this way.... If I borrow "money" that I am never going to pay back and acquire goods and services with said bogus notes am I wealthier? YES ! I might not be "on paper" or in my "financial report" but I am certainly wealthier IN FACT.
thodal2000 4 months ago
@thodal2000 I agree with you on the shadiness of fiat. However, to say that assets (capital or durable goods i.e. precious metals, oil, etc.) acquired with fiat are not wealth is absurd. If I purchase a lathe with gold or with fiat it is still a lathe, and if I purchase gold with fiat it is still gold. These are assets. Debt is a liability. If the value of my assets exceeds the value of my debts I have positive wealth. Simple arithmetic. I suspect we are in alignment on the fundamentals.
WeekendAtBernankes 4 months ago
@WeekendAtBernankes
What ever they purportedly owe , they US gov't has decreed to pay back it's debts exclusively in the Promissory Notes of a private bank. That private bank that does not redeem it's notes for anything of value .
The US basically is a created a money system in which it can never default.
You can't "cash out" federal reserve notes for anything of value. When is the last time someone did a notarial presentment on the FED or the Treasury.
thodal2000 3 months ago
@thodal2000 You are wrong.
white25rs 3 months ago
Great interview Jan! The ad hominems were unwarranted tho. Very interesting was his statement, "Let's come back" in an attempt to change the subject he didn't like. Like many politicians, this was in response to his realizing you nearly boxed him into conceding the absurdity of his statement. The logical conclusion is to borrow as much money as humanly possible. But he can't admit that. I wish you pressed him further on this, but then again, he definitely would have thrown you out the window!
ynot69it 9 months ago
what drugs a re this guy on? he doesnt seem to be well mentally balanced...
gydur1 9 months ago
Condescension, insults, and threats all within 4 minutes of being asked a few questions that are not softballs. And Stark is like ALL congressmen. They are all sociopaths. The voting conformists who elect them are totally unaware of this situation. Thanks for doing this, Jan! I'd like to work with you in the future, when I have more capital to contribute to a project that can take your work in a new direction. :D I strongly recommend "Why Everything Feels Wrong" by Wil Jones at STR
pleasewaittovoteagai 9 months ago
wow... I never knew that "bigger debt = bigger wealth" ... that's it, I'm signing up for four more credit cards and max them out and it should make me incredibly well off. Thanks Congressman Stark! You've just helped me out a bunch! (when the collection agencies start calling, I'll just give them your phone number)
zetetic0void 9 months ago
Economics is a pseudoscience. A "doctorate" in economics is very much like a doctorate in astrology.
Mrparrot73 10 months ago
i would love to fuck this asshole up ! (its called common sense ! mother fucker ! and you dont need a masters degree for that !)
thrallskull 10 months ago
what a load of bullshit !!!
thrallskull 10 months ago
This has been flagged as spam show
What this fails to mention is that the whole concept of debt and credit is based on fake principles. Your money is being leveraged 40 fold to create the credit that is then given out to you, and thus creating the perpetual cycle of debt. This cannot sustain over time, and thus we will suffer the consequences.
BTW guys - take my advice and call LL at ---888-338-3875 , they helped me sort all of my credit problems within 3 months, for $40 bucks. The best investment I've ever made. "
addiebauneww 10 months ago 14
Did you know the Pres. flew BO, their dog, in on a separate smaller jet to Maine for their vacation???? Wonder if that sets well with all the unemployed, hurting, US citizens who can't afford food, but we can pay for this. The above is true.
I Googled "Bo the dog flying to Maine " and got 76,700 references verifying this.
DONGOE 10 months ago
Wow, we were ONLY 5 trillion in debt when this video was made? Man, those were the days.....
zekal10 10 months ago
What an asshole... Do you have a PhD in economics from Harvard? No? Then how could you possibly understand how beautiful and magical Keynesian economics is? Debt = wealth, spending more than you make = responsible, blah blah blah.
conradvink 10 months ago
@conradvink Up is down, black is white. In the long run we're all red.
Hostile 10 months ago
Jan, you are right here but this bumbling idiot will never admit he is wrong because he is better than us normal folk, he graduated from a much better school than you. The only way he wins his argument is by throwing you out of his office and brow beating you.
btaylor9661 10 months ago
Congressboy Stark is a DUMBELL.
Nobama0000 10 months ago
Congreesboy Stark is a DUMBELL.
Nobama0000 10 months ago
There is a certain logic to what he's saying in regards to building wealth via debt but there's a problem. That borrowed money, in large part, is not being used to build wealth (ie. investment in new sophisticated technologies, increases in government efficiency, mineral extraction, etc.)
Its borrowed money flushed down the toilet on things like social security, multiple wars, medicare/caid, etc. Those enterprises do not make anybody wealthy anymore than breaking my arm makes me richer.
AlcoholLevel 10 months ago
@AlcoholLevel We are giving poor people large tax returns who did not warn the money, redistribution of wealth, lots of money, very few jobs created.
btaylor9661 10 months ago
This is hysterical.
AlcoholLevel 10 months ago
This country is going to hell Jan. People aren't seeing the obvious proof these politicians are destroying us. There is a difference between debt and credit. They attack our Constitutional rights, they think they are above the law. They are making us dependent upon other countries, the oil situation will get far worse but yet they won't let us drill. Ask the Japanese how cutting off their oil supply worked for them prior to the Pearl Harbor attack... People just aren't getting it.
snakeii0 10 months ago 3
@snakeii0 Yes, I am trying to do what I can to change the direction we are going in.
janhelfeld 10 months ago 6
Communist THUG!
jmurf999 10 months ago
Punks who were born into privilege and private schools have no concept of reality.
mykinfoknew 10 months ago
Wow... So... if i go into crazy debt I will come out richer and more wealthy... even joking, high, drunk... that still doesnt make sense to me.
This guy is a dork. Currently the interest rate is 1% on that debt, you can barrow more money at that rate but if the economy crashes that interest rate goes up, then for just holding the debt it will grow due to the interest alone.
He is insulting to my intelligence.
LowEndBCC 11 months ago
If you'd shatt app for a minute!!!
2:38
It's De Niro speaking!
Nah nah, no na, yuu a' makin a laaattt of s'toop'd statementz, Jan...
marcabela 11 months ago 5
There are a lot of people out there who voted for this guy more than once.
It sounds like he was just starting a 2nd threat even louder than the 1st when the video ends.
heymisterderp 11 months ago
wow! that is a new concept, the more in debt slavery you are the more wealthier you are? well maybe I should get in more debt so I can be wealthier so I can buy myself out of slavery. what! I never heard of being a debter as a benefit rather than a liability is this the owellian thingy rearing it's ugly head? up is down, black is white, war is peace, ignorance is strenth, this one I dont understand.
TheRosa63 11 months ago 5
@TheRosa63 Yes, the owellian thingy rearing it's ugly head.
janhelfeld 11 months ago
@TheRosa63 What you are saying is absolutely true for a household, a corporation, a private entity. A government that is a monopoloy issuer of its sovereign currency is not fiscally constrained. It can ALWAYS pay it debts! (Which is why this whole talk about the US defaulting is extremely absurd.) We can argue about the dangers of inflation, etc, but we cannot seriously argue about the US defaulting - its budgets have mostly been in deficit and its debt rising for eons: yet it's doing well, no?.
sternumagnum 6 months ago
THIS COUNTRY IS DOOMED WITH FUCKIN IDIOTS LIKE THIS RUNNING IT.
JOHNBRANSKI100 11 months ago
Interesting. He makes Jan seem "uneducated" because the school he graduated does not carry prestige, yet the virtue of patience is worth more than graduating from the top universities around the world.....Manners 101 is what this Congressman needs.
Not only that but Jan proved that he is intelligent. This clip details it.
sgal88 11 months ago
Government cannot " Consume " the money .
Government spending on roads , hospitals ,and public institutions is supposed to increase demand for goods. Thus increase the amount of goods needed to be supplied.. than higher income for everyone!
hahaha its all bullshit though, The more you develop your country, the worse you have it!
although u get convienence and materials , you end up losing the most valuable thing... our natural habitat ( or just breathing room ) .
its all bullshit
nuggert 11 months ago
OMG, I have a new favorite video on U-Tube, I spewed my Sunkist all over my monitor I laughed so hard. Damn this is a classic.
profaneslave 11 months ago
Typical Lib reaction when confronted with reality.
stevieRay3211 11 months ago
This is just a liberal being open about how little they know.
truthforamerica 11 months ago
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hoftrog 11 months ago
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hoftrog 11 months ago
@hoftrog I disagree with Rep.Stark:massive deficit spending is a bad thing.The real question is who can better reduce deficits.Here there is no doubt.Republibums are debt creators.Democrats are budget balancers.Just look up the numbers you Goddam Repub-scum-suckers.Starting with Ronald Ray-gun.That jerkwad almost tripled the nat.debt on his watch.It's called borrow and spend.The all time king def spender was W.Bush. He took the debt from 5 to 12 trl on his miserable watch.Helfeld is so annoying!
Loejyrrab 11 months ago
This is an example of the extremely flawed thinking of liberal academics who think you need a doctorate in order to have any common sense. I really believe that the simple minded person here is the educated one.
ron3279 1 year ago