the united states doesnt have this problem. although individual states are in debt (california) our trading power isn't in anyones hands but ours. multiplying it by the fact if we lower our importing and produce domestic and export more to take advantage of the decrease in value of the euro we can leverage this to recover from our debt crisis, but as it is now we are crippled by oil and a few other commodities and must rely on importation unless we reform our laws to harvest oil/gas
the euro is only as strong as its weakest link. i.e. greece and italy. since it is a trade union the development of the euro was to lower or eliminate taxes between each country. within the euro there is the free rider problem because countries like greece are selling bonds in the denomination of the euro leaning on the good economic standing of countries like germany and england to deal with their inefficiencies making there bonds worthless lowering euro and the trading power of the trade union
Does this video explain (to some extent) why the U.S. isn't experiencing hyperinflation from the FED creating trillions of dollars out of thin air in the last 3 years?
In other words, so many dollars are sought-after, held, and spent by foreign entities (both government and individuals) within their own boarders and not being spent back in America where they would feed the inflation.
Tyler from Zerohedge put it like this: The US problem is like compulsively hitting yourself in the head. It is painful, but if you really want to, you can stop. The Euro problem is like being raped by a Grizzly. As long as the Grizzly is there, you really don´t have a choice in the matter.
No, The Euro is the grizzly. The Euro problems are inherent to the common currency system. The bond markets simply are. They only react to the situation.
As long as the Euro is there, the rape will go on.
Oh give us a break with this juvenile stuff. Capitalism simply is.It is neither inherently good or bad. As for economy, ALL attempts of socialism have failed miserably.
The EURO, by the way, is not "capitalism", it is a form of trans-national socialism.
Blaming "capitalism" for everything is an end to rational debate ... you don´t need to analyse problems anymore if have that convenient red herring.
Capitalism really isn't looking so great right now. Look at the US. 2 trillion in corporate reserves, millions unemployed, millions needing services....
... capitalism is unable to harness it's own resources.
If the banks, financial institutions and the largest companies were put under popular democratic control then those resources could be put to work.
The profit system only works when the big investors think they will get enough of a profit.
The US debt bubble and the Euro system are not "capitalism". They are caused by political meddling .. call it socialism.
In pure free market system, these distortions would not have occurred in the first place.
As for government-run companies, just look how cost-efficient and well-run organizations like the post office or the military are. Ridiculous idea. Some institutions (military, police) need to be government-run, but not for efficiency.
@tellyontellyon Capitalism brought the greatest increase in the standard of living for the average man more so than any other system in the history of man. It is also the only system that is compatible with a free society. Capitalism hasn't failed; government's intervention in capitalism has.
It has also brought enormous failures and is a fetter to development. The banking failure was due to a lack of regulation and an false belief that capitalism is 'self-regulating'. Even Alan Greenspan admitted he was wrong about that.
Times have changed, capitalism is now a fetter on development.
to create the fed loans it requires deposits first to fractionalise
so the fed and thier franchises requires deposits ..the only way now to generate those deposits in the american economy is now to get the military industrial complex to supply the governent duirng a war ..once the ball is set to roll through fractionalising M1 money into M# the liquidity is then supplied by the drugs trade and money laundering skills of the offshore links of the large banks
the reason why dollar is the world currency is that oil is traded in dollars..ie if the world wants energy it requires dollars first..
this is the world tax
king edward of england required payment of taxes with tally sticks...this created a need for tally sticks ..so people started using tally sticks as currency
what ever the element the tax is of, the market tends towards using that as currency.
it could be sea shells
in todays world it is digital book entries called credits.
yo people wake up the dollar sucks amerika only has debt in the trillions so how can any one say the dollar is better than the euro. Here in holland we dont have that much debt :P and before you try to say the dollar is better find out what debt is. you say you have mony but if you have mony why do u have that much debt. Its a simple math if u try to pay all ur debt Amerika doesnt have any mony ^^. GL with that the euro rules
Ty for that you do realise that im from the netherlands and my mother language is Dutch so srry for the misspelling of some words. but the info is not wrong is it :P
LOL, if you are in Holland, then your taxes are paying a large part of 200 billion Euro "rescue" fund which the Brussels politicians are trying to blow up to 2 trillion... and even that wont be enough, After Germany, Holland is the biggest payer for this insanity. Do you have any idea to what degree you are already on the hook to PIIG lender banks?? And what kind of currency is it that needs to be "rescued" every week?
@Derukugi2 LoL tell me something i dont know i have been against the euro frome the start.But like usual the politicians dont listen :P.Saying the dollar is better is just the same crap that people say about the euro.And the dept the europeans have is put all together the same/ less the what amerika has on its own. Yes we dutchies are helping with the 2 trillion plan but Amerika has his own dept thats over 11 trilion. So wich one is better i think GOLD is better it has its value and cant be made
Yes, the US has a huge debt problem, but there there is a fundamental difference: The US has political unity and its own currency. The Dollar does not have the fundamental problems that the Euro has.
In effect, the Euro is a kind of gold standard, with none of the advantages of the gold standard but with all its disadvantages.
The US problems can be solved. The Euro problems can only get worse, as long as the Euro exists.
@Derukugi2 Yep ur right again i know the euro sucks so by definition the dollar is better.And 80% of the europeans knew beforehand that the euro would fail.But by that same idiology if the euro gets dumped and we get the dollar the same fail will repeat it self.Money as it is today with the banks and industrial powers is a fail to begin with.Just shut down the loan system and get by with the money u have and make profit ^^.By giving out loans u FAIL at making money a good thing for human society
They say the Euro has further to fall, maybe reaching parity to the dollar. I would rather be holding the greenback than the Euro until I see certainty in the EZ.
The problems with the Euro are the same but more severe with the dollar. The dollar is falling against the Euro. Mrs. Kim is gonna wake up with a barrow load of paper that scarcely buys an iphone pretty soon.
@Derukugi2 hahaha then why isn't Zimbabwe the richest country in the world? And why wouldn't all government just inflate debt away? Nevermind anyway - we're going to find out but the dollar is going to zero and the Euro also later.
Well, unlike Zimbabwe, the US actually has a real economy, so Bernanke could not find enough trees in the world to drive the dollar to Zimbabwe levels, even if he tried.
Why would a country just inflate the debt away? Is that a trick question? The country has to pay the debt, and luckily for the US the debt is in its own currency. So they can always pay it, althought the result is of course inflation. That is really below economics 101.
@Derukugi2 The US has a real economy huh? Does this explain why it's the world's largest debtor nation or why Obama has run up more debt in 4 years than all other US presidents put together? They want to inflate because it's politically easier to hide the state of affairs rather than face them directly with taxes. You seem to think that inflation is okay but again ask the Zimbabwe, Argentina, Germany et. al and you'll see why it's worse than legitimate default.
Save the hysterics. Yes, the US does have a real economy. That it has been spending way above what the economy supports is a different topic. With taxes, you can solve internal government debt, but you still need to pay foreign debt. The obvious way to do that is to print, and that will obviously lead to inflation and devaluation. No miracle there. In the case of the US, it would not be hyperinflation though, so the reference to Zimbabwe and Weimar Germany is silly.
@Derukugi2 You cannot solve the problem with taxation. There needs to be deep cuts in spending and default either through write downs or inflation (that you don't think is a problem..) - the latter being the more painful. There's are no other options.
Hyperinflation is possible given the scale of the problem and the embarrassment to do the right thing therein. The FED has been doing nothing but printing since Greenspan. Expecting anything else given the incentive to monetize is unlikely.
I disagree.Everything is "possible" in theory, but realistically, you can not compare the US with cases like Zimbabwe or Weimar Germany. Even given Obamas crazy stimulus spending and Bernankes money printing, you are lightyears away from that situation. You can probably expect double-digit inflation for a couple of year, but that should be it. And the Dollar will be there, unlike the Euro which is floundering because of its internal contradictions.
@Derukugi2 Light years huh? and you take point with me of using "possible" instead of probable.
Fundamentally the US is in worse fiscal shape than the EU by far. This should be clear. The EU is employing austerity while the US continues to expand. If there is a shake out of the EU, then at least the individual countries will be in better shape having done so. Debt is the underlying problem so these "internal contradictions" won't be that relevant in the final analysis.
No, it is absolutely not "clear" that the US is in worse fiscal shape. The US has racked up massive debts, but the US is a political and fiscal unity. The Eurozone is an incoherent hodgepodge of 17 different economies, with the stong participants (Germany) expected to bail out the weak ones (PIIGS) forever. This includes a massive moral hazard for the PIIGS. More power transfer to Brussels does not solve that.. The USD does not have the inherent contradictions of the Euro.
Paddy, did you go to Castle Park school in Dalkey, Ireland???
jonnyridge3d 1 month ago in playlist Uploaded videos
the united states doesnt have this problem. although individual states are in debt (california) our trading power isn't in anyones hands but ours. multiplying it by the fact if we lower our importing and produce domestic and export more to take advantage of the decrease in value of the euro we can leverage this to recover from our debt crisis, but as it is now we are crippled by oil and a few other commodities and must rely on importation unless we reform our laws to harvest oil/gas
shamrocksNY 1 month ago in playlist Whiteboard with Your Mate Paddie Hirsch
the euro is only as strong as its weakest link. i.e. greece and italy. since it is a trade union the development of the euro was to lower or eliminate taxes between each country. within the euro there is the free rider problem because countries like greece are selling bonds in the denomination of the euro leaning on the good economic standing of countries like germany and england to deal with their inefficiencies making there bonds worthless lowering euro and the trading power of the trade union
shamrocksNY 1 month ago in playlist Whiteboard with Your Mate Paddie Hirsch
awesome!
noetherianring 1 month ago
Does this video explain (to some extent) why the U.S. isn't experiencing hyperinflation from the FED creating trillions of dollars out of thin air in the last 3 years?
In other words, so many dollars are sought-after, held, and spent by foreign entities (both government and individuals) within their own boarders and not being spent back in America where they would feed the inflation.
BullToTheShit 2 months ago
please do a video asap on rehypothecation and hyper-repothecation
pirucreek 2 months ago in playlist Uploaded videos
Hey, where is this week's video? It's Sunday night already.
chrissis111 2 months ago
actually, mate, US dollar is in way worse condition that euro.
soon US dollar will be consider as fireplace fuel, like you said about euro and north america will be introduced to new currency, amero.
US dollars, Yen, Euro... it's all FIAT money, mate.
lets not forget about it.
utar88utar 2 months ago
Can the video be mounted next time and zoomed out; the closeness is uncomfortable and moving the camera is painful.
Availability and Inflation, isn't there (much) more to the story?!
GriebKyle 3 months ago
great explanation thanks
rolficus 3 months ago in playlist Whiteboard with Your Mate Paddie Hirsch
big fan of your videos, can you please talk about the implications of the recently unearthed 7.7 trillion dollar bailout?
mikeposelski 3 months ago
@mikeposelski Theres no implications, that was a basic interventionalist act.
November10th1775USMC 3 months ago in playlist Whiteboard with Your Mate Paddie Hirsch
I bet Mrs Kim is happy to take gold,
Robonza 3 months ago
"The amount of Monti austerity plan will be around €25bln. That means more taxes on incomes, property tax, luxury tax. Question where's the growth?"
There's no escape from the abyss without growth.
previsto78 3 months ago
Tyler from Zerohedge put it like this: The US problem is like compulsively hitting yourself in the head. It is painful, but if you really want to, you can stop. The Euro problem is like being raped by a Grizzly. As long as the Grizzly is there, you really don´t have a choice in the matter.
Pretty much nails it...
Derukugi2 3 months ago
@Derukugi2
Is that what they mean by a Bear Market?... Getting raped by the bond markets!
tellyontellyon 3 months ago
@tellyontellyon
No, The Euro is the grizzly. The Euro problems are inherent to the common currency system. The bond markets simply are. They only react to the situation.
As long as the Euro is there, the rape will go on.
Derukugi2 3 months ago
@Derukugi2
No, Capitalism is the Grizzly.
It failed and now we are being shafted so it can restore itself. The bankers gambled and lost with OUR money... and now WE have to pay...
.... risk free exploitation ... lurvely!!! : )
tellyontellyon 3 months ago
@tellyontellyon
Oh give us a break with this juvenile stuff. Capitalism simply is.It is neither inherently good or bad. As for economy, ALL attempts of socialism have failed miserably.
The EURO, by the way, is not "capitalism", it is a form of trans-national socialism.
Blaming "capitalism" for everything is an end to rational debate ... you don´t need to analyse problems anymore if have that convenient red herring.
Bah, humbug.
Derukugi2 3 months ago 2
@Derukugi2
Capitalism really isn't looking so great right now. Look at the US. 2 trillion in corporate reserves, millions unemployed, millions needing services....
... capitalism is unable to harness it's own resources.
If the banks, financial institutions and the largest companies were put under popular democratic control then those resources could be put to work.
The profit system only works when the big investors think they will get enough of a profit.
The billionairs system has failed.
tellyontellyon 3 months ago
@tellyontellyon
The US debt bubble and the Euro system are not "capitalism". They are caused by political meddling .. call it socialism.
In pure free market system, these distortions would not have occurred in the first place.
As for government-run companies, just look how cost-efficient and well-run organizations like the post office or the military are. Ridiculous idea. Some institutions (military, police) need to be government-run, but not for efficiency.
Derukugi2 3 months ago
@tellyontellyon Capitalism brought the greatest increase in the standard of living for the average man more so than any other system in the history of man. It is also the only system that is compatible with a free society. Capitalism hasn't failed; government's intervention in capitalism has.
MickeyDee0341 3 months ago in playlist Whiteboard with Your Mate Paddie Hirsch
@MickeyDee0341
It has also brought enormous failures and is a fetter to development. The banking failure was due to a lack of regulation and an false belief that capitalism is 'self-regulating'. Even Alan Greenspan admitted he was wrong about that.
Times have changed, capitalism is now a fetter on development.
tellyontellyon 3 months ago
those fed loans means more wars
to create the fed loans it requires deposits first to fractionalise
so the fed and thier franchises requires deposits ..the only way now to generate those deposits in the american economy is now to get the military industrial complex to supply the governent duirng a war ..once the ball is set to roll through fractionalising M1 money into M# the liquidity is then supplied by the drugs trade and money laundering skills of the offshore links of the large banks
kdcruz75 3 months ago
the reason why dollar is the world currency is that oil is traded in dollars..ie if the world wants energy it requires dollars first..
this is the world tax
king edward of england required payment of taxes with tally sticks...this created a need for tally sticks ..so people started using tally sticks as currency
what ever the element the tax is of, the market tends towards using that as currency.
it could be sea shells
in todays world it is digital book entries called credits.
kdcruz75 3 months ago
one person wanted to be different...
MrAndrewIbsen 3 months ago
Mr. Kim?
Faisdragon 3 months ago
yo people wake up the dollar sucks amerika only has debt in the trillions so how can any one say the dollar is better than the euro. Here in holland we dont have that much debt :P and before you try to say the dollar is better find out what debt is. you say you have mony but if you have mony why do u have that much debt. Its a simple math if u try to pay all ur debt Amerika doesnt have any mony ^^. GL with that the euro rules
chucky4lifekill 3 months ago
@chucky4lifekill
You cant even spell money... Good luck
shitbringer 3 months ago
@shitbringer
Ty for that you do realise that im from the netherlands and my mother language is Dutch so srry for the misspelling of some words. but the info is not wrong is it :P
chucky4lifekill 3 months ago
@chucky4lifekill
LOL, if you are in Holland, then your taxes are paying a large part of 200 billion Euro "rescue" fund which the Brussels politicians are trying to blow up to 2 trillion... and even that wont be enough, After Germany, Holland is the biggest payer for this insanity. Do you have any idea to what degree you are already on the hook to PIIG lender banks?? And what kind of currency is it that needs to be "rescued" every week?
Get real. The Euro is like the Titanic.
Derukugi2 3 months ago
@Derukugi2 LoL tell me something i dont know i have been against the euro frome the start.But like usual the politicians dont listen :P.Saying the dollar is better is just the same crap that people say about the euro.And the dept the europeans have is put all together the same/ less the what amerika has on its own. Yes we dutchies are helping with the 2 trillion plan but Amerika has his own dept thats over 11 trilion. So wich one is better i think GOLD is better it has its value and cant be made
chucky4lifekill 2 months ago
@chucky4lifekill
Yes, the US has a huge debt problem, but there there is a fundamental difference: The US has political unity and its own currency. The Dollar does not have the fundamental problems that the Euro has.
In effect, the Euro is a kind of gold standard, with none of the advantages of the gold standard but with all its disadvantages.
The US problems can be solved. The Euro problems can only get worse, as long as the Euro exists.
Derukugi2 2 months ago
@Derukugi2 Yep ur right again i know the euro sucks so by definition the dollar is better.And 80% of the europeans knew beforehand that the euro would fail.But by that same idiology if the euro gets dumped and we get the dollar the same fail will repeat it self.Money as it is today with the banks and industrial powers is a fail to begin with.Just shut down the loan system and get by with the money u have and make profit ^^.By giving out loans u FAIL at making money a good thing for human society
chucky4lifekill 2 months ago
@marketplacevideos Excellent !
raducumuculucu 3 months ago
If so many people are buying US Dollars, why doesn't the currency price goes up?
vaju79 3 months ago
They say the Euro has further to fall, maybe reaching parity to the dollar. I would rather be holding the greenback than the Euro until I see certainty in the EZ.
fazskf73 3 months ago
why don't we use gold? i dont have dollar!
lisajason111 3 months ago
The problems with the Euro are the same but more severe with the dollar. The dollar is falling against the Euro. Mrs. Kim is gonna wake up with a barrow load of paper that scarcely buys an iphone pretty soon.
delatroy 3 months ago
@delatroy
Nope. The dollar sure has its problems, but it does not have the internal contradictions of the Euro. Different kettle of fish.
Derukugi2 3 months ago
@Derukugi2 Debt
delatroy 3 months ago
@delatroy
Debt can and will be dealt with by inflation. The Dollar will be a lot less worth, but it will still be there.
That is a far cry from the Euro with its internal contradictions.
Derukugi2 3 months ago
@Derukugi2 hahaha then why isn't Zimbabwe the richest country in the world? And why wouldn't all government just inflate debt away? Nevermind anyway - we're going to find out but the dollar is going to zero and the Euro also later.
delatroy 3 months ago
@delatroy
Well, unlike Zimbabwe, the US actually has a real economy, so Bernanke could not find enough trees in the world to drive the dollar to Zimbabwe levels, even if he tried.
Why would a country just inflate the debt away? Is that a trick question? The country has to pay the debt, and luckily for the US the debt is in its own currency. So they can always pay it, althought the result is of course inflation. That is really below economics 101.
Derukugi2 3 months ago
@Derukugi2 The US has a real economy huh? Does this explain why it's the world's largest debtor nation or why Obama has run up more debt in 4 years than all other US presidents put together? They want to inflate because it's politically easier to hide the state of affairs rather than face them directly with taxes. You seem to think that inflation is okay but again ask the Zimbabwe, Argentina, Germany et. al and you'll see why it's worse than legitimate default.
delatroy 3 months ago
@delatroy
Save the hysterics. Yes, the US does have a real economy. That it has been spending way above what the economy supports is a different topic. With taxes, you can solve internal government debt, but you still need to pay foreign debt. The obvious way to do that is to print, and that will obviously lead to inflation and devaluation. No miracle there. In the case of the US, it would not be hyperinflation though, so the reference to Zimbabwe and Weimar Germany is silly.
Derukugi2 3 months ago
@Derukugi2 You cannot solve the problem with taxation. There needs to be deep cuts in spending and default either through write downs or inflation (that you don't think is a problem..) - the latter being the more painful. There's are no other options.
Hyperinflation is possible given the scale of the problem and the embarrassment to do the right thing therein. The FED has been doing nothing but printing since Greenspan. Expecting anything else given the incentive to monetize is unlikely.
delatroy 3 months ago
@delatroy
I disagree.Everything is "possible" in theory, but realistically, you can not compare the US with cases like Zimbabwe or Weimar Germany. Even given Obamas crazy stimulus spending and Bernankes money printing, you are lightyears away from that situation. You can probably expect double-digit inflation for a couple of year, but that should be it. And the Dollar will be there, unlike the Euro which is floundering because of its internal contradictions.
Derukugi2 3 months ago
@Derukugi2 Light years huh? and you take point with me of using "possible" instead of probable.
Fundamentally the US is in worse fiscal shape than the EU by far. This should be clear. The EU is employing austerity while the US continues to expand. If there is a shake out of the EU, then at least the individual countries will be in better shape having done so. Debt is the underlying problem so these "internal contradictions" won't be that relevant in the final analysis.
delatroy 3 months ago
@delatroy
No, it is absolutely not "clear" that the US is in worse fiscal shape. The US has racked up massive debts, but the US is a political and fiscal unity. The Eurozone is an incoherent hodgepodge of 17 different economies, with the stong participants (Germany) expected to bail out the weak ones (PIIGS) forever. This includes a massive moral hazard for the PIIGS. More power transfer to Brussels does not solve that.. The USD does not have the inherent contradictions of the Euro.
Derukugi2 3 months ago
mrs isn't mr.
seanncali 3 months ago
Mr. Kim looks like Jay Leno
johnbsk 3 months ago
I would by a motherboard made in Ireland. lol
liquidus2172 3 months ago
1st. nice. good luck all the Tomy's out there
LukeBerrell 3 months ago