Letting Be

[mortacrify]

my god, that was the most horrifying strawman of Keynesian economics I've ever seen.

[LibertyisLearning]

Common..... there's got to be some that are way worse :)

[looking4myfvoice]

I would like to add a quote by David C. Korten:

We stand at a critical moment in Earth's history, a time when humanity must choose its future. As the world becomes increasingly interdependent and fragile, the future at once holds great peril and great promise. To move forward we must recognize that in the midst of a magnificent diversity of cultures and life forms we are one human family and one Earth Community with a common destiny.

[ztT6Gkxx77]

Well done. But I think your fundamental premise that the government creates money is half-wrong. The banks create more money than the government creates through loans (obnoxiously, the government borrows money from the banks as well.) You can see Canada's "Central (ugh)" bank's website about this.

[cbcredit]

M1, which is barely 10% of M3. Think about it this way: How much cash do you have on you and in your checking (M1) ? vs How much do you have in a savings account, any CDs, any retirement account, any credit cards, any student loan, how much you owe on your car or house (M3) ? That's why M3 is the accurate measurement of our money supply, not M1, especially when you're talking about the "inflation" of USD. That's why economists and financial traders use M3, not M1.

[ScalerWave]

It's a whole lot more complicated than that.

Good video though.

[cbcredit]

@acjitsu - Who said we're continuing to print money ? M3 is at the same level as it was in Oct 2008, when TARP started. USD isn't in any danger of hyperinflation. We have the best economic fundamentals of all the major currencies. There is not the remotest chance of USD "crashing".

On what data are you basing your opinion ?

[Seisachtheia]

@cbcredit M3 is the largest measure of 'money' we have what you need to be looking at is M1B which measures only currency and chequing accounts this will more accurately represent whether or not the money supply has increased. Also the USD is in trouble because about half of all foreign-held US dollars are held by China so if China unloads them? Bye-bye goes the American economy because America depends on China buying up a large portion of its currency for yuan control.

[cbcredit]

@Seisachtheia You've got it completely wrong. M3 is the accurate measure of our money supply, not M1. That's why economists and financial traders use M3, not M1.

[Seisachtheia]

@cbcredit You do know what M3 measures right? M1B measures only currency and chequeing accounts thus it is the most accurate display of if the government has increased the amount of money printed. Perhaps M2 would also be good for this purpose but M3 simply measures far too much. As far as your "economists use M3, not M" well that's just bogus they use everything because the term 'money' is flexible.

[cbcredit]

@Seisachtheia When the Fed wants to really increase the money supply, they DO NOT just "print up" more money. They decrease the reserve rate for banks, or lower the discount rate for banks, or buy bonds in FOMC operations and pay for those bonds with essentially "virtual" USD, basically crediting the selling banks with USD without actually printing it up. That's why M3 is the accurate measure of our money supply, not M1.

[Seisachtheia]

@cbcredit Alright you've made your point I don't agree with it and there is a lot of economic data out there that contradicts you but Youtube isn't the place to debate it (stupid character cap).

[gsukrw06]

@Seisachtheia debating the schematics of our current economic system is futile in any forum really, mainly because the current system was put into place by banking families who managed to implement govt force in order to achieve their aimes.

[gsukrw06]

But that would make me a "conspiracy theorist" so obviously im just a crazy wacko that no one should take seriously in the first place. Because no one conspires to achieve shared aimes anymore--everyone knows that the concept of "conspiracy" is outdated and hasnt been used in ages, especially by those with a vested interest in doing so. And even if they did conspire, it would only be because of there shared interest in the well being of the people, duh. (total sarcasm) haha

[summercures2]

@gsukrw06 : Ha ha! I love the way you put that.

[Seisachtheia]

@gsukrw06 The debate on the Rothschild and Rockefeller families (etc., etc., etc.) is somewhat outside what I was attempting to discuss, which was the impartial mechanics of measuring economic activity as opposed to the forces controlling said mechanics. I am familiar with the argument/conspiracy whatever people want to call it.

[cbcredit]

@Seisachtheia Since TARP started inOct 2008, M1 has increased 16% but M3 has stayed the same. Since USD has GAINED vs EUR and JPY in that same time, this shows that M3 is the accurate measure of our money supply.

[cbcredit]

@Seisachtheia China owns only 6% of our total debt. If they ever sell, that will mean the Yuan will no longer stay pegged to USD, and will rapidly appreciate, which means their products will be more expensive and manufacturing will start returning to America. It will be much worse for China's economy than ours. Why do you think China keeps the Yuan pegged to USD ?

[Seisachtheia]

@cbcredit I'm not arguing about China wanting to keep the yuan pegged at the USD because it benefits them I'm saying that the sudden mass offloading of US dollars would severely hurt the United States.

[cbcredit]

@Seisachtheia and it would hurt China even more, which is why China isn't going to do it anytime soon.

[jedirich04]

Great job man!!! keep it up! thanks

[Jaxsolo]

No. Exactly the opposite. You did not pay attention to the video, did you?

[marypoppins2009]

Pay heed....he is correct...and it's time for Econ 101 guys!!!

[MIndMattersMost]

This video is completely right. Well analyzed, great effects.

[cbcredit]

It's nice that some kids made a cute video about economics, but the fact is that they glossed over some very serious consequences of the economics they tout, and they're completely wrong in some parts of the video.

[Re3volution]

@cbcredit No! you can never EVER be wrong when you argue for less government!

[cbcredit]

The video states that govt should just "stay out of the economy and don't provide stimulus", which IS a solution, but it's probably the worst solution.

We would go through the worst depression ever seen and millions would suffer, but yes, we would recover.

The video wants people to "keep their earnings", but fails to recognize that without stimulus, millions would have ZERO earnings from unemployment in the resulting depression.

[acjitsu]

@cbcredit : So we should continue to print money to kick the can down the road a couple of years and then enter into a hyperinflationary depression and crash the currency? At least after the pain of a deflationary depression the economy can recoupe. If we hyperinflate you have the severe pain of extremely high prices along with job loss and possibly crashing the currency. Pick your poison.

[cbcredit]

The video talks about govt "printing money", ie; the MONEY SUPPLY.

M3 is our money supply.

M3 IS the measure of the "factor of 9".

We got into this mess when Glass-Steagall was repealed, when Fannie Mae started buying sub-prime, and when Greenspan kept the Fed rate too low for too long (None of which BTW, had anything to do with "printing money").

[cbcredit]

Well then it's a good thing that our money supply M3 , since October 08 when TARP started, HASN"T INCREASED AT ALL.

But hey, don't let actual facts interrupt your smarmy video.

[Saquire]

Are you insane?

Just do a google image search of "money supply" and see the monetary base jump almost 100% since 2008.

What's wrong with you?

But hey, don't let the slightest bit of research interrupt your smarmy comment.

Worthless Statist.

[cbcredit]

While I'm sure you've seen charts of M0 and M1 that show large increases, M3 (which is the actual money supply that our economy runs on, NOT M0 or M1) has NOT increased at all since Oct 08.

Because banks have CONTRACTED lending, that means for every $1 that the Fed has tried to pump into the economy, banks have sucked out $1.

Ignorant conspiracist.

[Saquire]

M3 stats are not even officially reported to the public, only estimated by shadow government stats.

And even those show the money supply soaring like your mom's heart rate on welfare day.

Banks have contracted lending? Is that why the US benchmark interest rate is 0.25% ?

How do you think that happens? The central bank buy bonds from small banks who then lend it out by almost a factor of ten.

Resulting inflation may not be immediate but it is inevitable.

You know google is free, right?

[cbcredit]

I tried posting a link but it deletes the post.

It's not difficult to calculate M3 and there several organizations that do a very good job. And it shows M3 HAS NOT CHANGED since Oct 08 (look up Now and Futures M3). Yes, lending has contracted greatly. Banks have cut credit card limits from $10k to $1k (for example), it's now much more difficult to get a mortgage. The interbank rate is .25%, but the rate that any consumer can borrow on anything is going to be 4.5% and up (for perfect credit).

[cbcredit]

Google only works if you actually search for something, that's why I know what M3 is, and you don't.

[Saquire]

oh man, totally forgot about this, are you still writing?

Guy, the video didn't even mention M3. It's about the fact that inflation is caused by the money supply expanding, which severely damages society.

And any money printed will inevitably be loaned out by a factor of 9.

Central banks and Keyensian economics have created the boom and bust cycles throughout history.

How do you think we got into this mess?

watch?v=d0nERTFo-Sk

[JamesHardingVideos]

good job!

[1223mememe1223]

However, if you read the tags on this video put by the creator, it is clearly there to attract conspiracy theorists such as ronheri

[Claytrainor]

@1223mememe1223

ahh ok.

Sorry for misunderstanding you.

[Horbertshorn]

But theorists are still people. I believe the reason for the extra tags is simply to get his point across to the audience he KNOWS will care to listen.

[MAY777ABLE]

Thanks

[1223mememe1223]

This is supposed to be an informative contest, not something to post retarded conspiracy theories in.

[Claytrainor]

@1223mememe1223

What's the retarded conspiracy theory? You're post is awfully insulting, and not much more.

Let me guess... you're a fan of Keynes and Inflation economics?

[1223mememe1223]

To crarify my comment was towards "ronheri" for some reason it just posted it at the top.

[hc167]

I do not think government should leave the economy alone. there is something gov't can do. in Hong Kong back in 2001-2003, the hong kong gov't actually cut a lot of cost. almost all the gov't offical cut their salary. and of course then they can cut tax. gov't also increase spending for job training for people who lost their job. also hong kong gov't policy make more parternship with other asia countries so that other asia capital flow into hong kong. it is just US gov't do all the wrong steps.

[furyofbongos]

Congratulations on a very excellent video production! Keep up the great work! Subbed.

[shaneryanbenton]

GREAT Video. A+ Dude.

[xpxzampop]

yo great work on this! Good luck to you!

[davyjames]

Good video but would have been 100x better without the quiet audio but loud background music that made it really hard to understand what you were saying. Would LOVE a version where this wasn't the case.

[LibertyisLearning]

...sooo are you saying that the ambient audio is too loud or too soft?

[davyjames]

too loud. Hard to hear what is being said without concentrating really hard

[eniram]

@LibertyisLearning

It sounded fine to me until that guy mentioned it.. then it got distracting.  I dunno, I think it's fine.

[BinduProductions1]

@davyjames

The background audio would have been non-existent if it had been any softer...

[h264films]

nice video

[Saquire]

Not bad, slimjim!

[Royalcityfeelix]

high five

[MultiKnitter]

Wonderful production on this video!

[TheBella1423]

easy to watch and easy to understand.

not too long and clear

nice!

[TheClaudicus]

Short and sweet... and refutable. What more do you want?

[kellcoolj123]

Wow, ''Utmost11", if you got your education from a private school, than your parents got ripped off. Aren't they supposed to teach respect and tact when expressing an opinion? Your attitude shows you lack both.

[jburtonca]

Straight forward and succinct. It's hard to express important ideas in a three minute video, but you did a great job.

[DavidKretzmann]

Well done! I will repost on Freedom Chatter . com

[ronheri]

The banking cartel (Federal Reserve) set out to destroy our Republic with their fiat money. These elite criminals must be brought to justice. Ron Paul will expose these monsters.

[gamertipz]

very nicely done! :-)

[banemaler]

Excellent presentation!

[continuityofliberty]

Well done!

:)

[vegaspilot03]

i like, and so do my facebook awake-ees

[RationalDischarge]

Short but sweet, and right on the money!

[Vitacore]

Win!

[justice1812]

"What is the appropriate role of government in the economy?" That's a funny question, steal and plunder? Forced slavery by way of income tax? I say, the government has no moral authority to steal money by using or threatening violence, from the people it is entrusted to serve, therefore, government has no proper role, in the economy.

[funwjoshnjenn]

does it matter what the proper role of government is as long as they don't force themselves on you?

I mean, who cares if the government or robber or rapist has the job of hurting people, as long as they don't forcibly do it to you, right?

[Claytrainor]

the proper role of government, is to disappear. :-)

[jabf2006]

That's the problem. Government does forcibly rob you. If the government could be large based on voluntary donations, they wouldn't need the income tax.

If people did voluntary donate to have the government perform the services it does, than that's a sign its doing a good job.

In the end, the difference between an NGO or a corporation and a government, is that the government has monopoly over the user of physical force.

[VoteLib3rty]

@jabf2006:

Agreed. Military service should also be voluntary. Unjust wars would be hard to fight if people could just decide not to participate.

[utmost11]

your stupidity shows you are a product of public schools

[gamertipz]

your rudeness shows that you are a product of the United States

[Horbertshorn]

are you talking about the guy in the video???

definitely Canadian.

[LibertyisLearning]

Hahaha, that's hilarious, I never know who's posting comments!

[frankdavis]

very well illustrated and explained!

[KentBETA]

Spending Billions on a war that was started by lies does not help

[BrandonMYates]

Need to work on the wording. Saying a college kid can't afford college because the value of his money has been decreased makes no sense. He never had money in the first place.

[band4132]

the value of the money is decreased, so it costs more for something. in the students case, that something is getting into a good college.

[RandPaul2010]

Yes he did Brandon, BEFORE the government inflated the crap out of his money! Remember, 4 years ago students worked part time and put themselves through college. Inflation, combined with government "aid" for education, caused college tuition to raise. After tuition rose then students could no longer afford school. That is where we are at today.

[RandPaul2010]

meant 40, not 4.

[RandPaul2010]

Ron Paul has said that he paid his way through medical school by working while he went to school. Others his age all say the same thing-- that they could work part time and pay for school and rent and be debt free by the time they graduated.

[captainbryan]

Well, his parents could have had a college fund for him, but yeah.

[justice1812]

Let's say the college fund earns about 6% interest in an interest bearing account, if inflation is at 10%, the increase of tuition, as we've recently seen riots over, will out pace the value of the investment yield, and will probably out pace income cost of living adjustments therefore college fund contribution.

[Dieseler]

Great video!

Keep up the good works and hopefully more will learn from it.

[Amy31415]

Love this!

[funwjoshnjenn]

one fallacy, Keynesian is not the only pro-regulation school, and Austrian is not the only pro-market school.

[jburtonca]

I think that for the sake of clarity, he is these two as examples. One of the main problems of the Chicago School is that they approve of a central bank ie the private Federal Reserve. A true free market is impossible under a central bank that attempts to manipulate the money supply and interest rates.

[funwjoshnjenn]

only if you assume there to be no such thing as an acceptable , honest and responsible central bank.

As if free markets don't allow monopolies or natural winners.

[funwjoshnjenn]

how free should our economy be? would you allow derivatives, CDO, CDS? child labor? organ trade? more immigrants?

[LibertyisLearning]

Government power should be strictly limited by unalienable human rights. Government force ends where individual sovereignty begins.

[Claytrainor]

Spread this!

[LibertyisLearning]

I'm trying hard. The best way is for people to post it on their facebook account and ask others to do the same!

[freemarket11]

Excellent job in producing this video. The message is so simple and easy to understand for those who don't have a clear understanding of how economics works. Keep the videos coming and I will spread this around myself.

Just rated 5 stars, subscribed and favorited!

[greenenergy17]

Excellent video. You did a great job explaining the difference between Austrian Economics and Keynesian Economics. Thanks for posting!

[mikerogers3]

Great vid!!

[mkauai2]

Keep up the great work

[Claytrainor]

Amazing Video!

[louis345]

Great. I love it. Will be showing it my friends when i introduce to them Austrian economics.

[elfil76]

Excellent Video*****

[mindxwalker]

This was beyond amazing. Seriously. Really simple to understand for a teenager such as myself that doesn't actually pay much attention to Economics. (Though I obviously should, seeing as I'm trying to pay my way through school as well). Thanks for this, it really was amazing. :]

[flamflamflam]

good job.

[libertariancfo]

Good video, great graphics. Two suggestions -

1. It's not clear how inflation leads to foreclosures, Explain more money --> bubbles (housing, dot com stocks) which eventually burst leaving people with assets not worth what they paid.

2. I trust you will have a follow up on Keynesian Vs. Austrian Economics. Not sure it was necessary to mention them, just the key ideas about 'managing' the economy.

[funwjoshnjenn]

1. inflation itself doesn't cause foreclosures, it's only when money is forced to contract that would foreclose or burst a house

2. I agree, regulation vs. freedom is the real distinction, not the name of schools

[mikerogers3]

Very informative and well presented. More people need to realise that the best way to fix the economy is to do nothing. Thanks for putting this together! I will be sure to share with everyone I know!

[LibertyisLearning]

Thanks, I appreciate it!

[bdepeuter1]

Good job on presenting the issues with current economic situation.

[EmilioZProductions]

Great production. very good information and great audio and visual effects.

[dreamroots]

clear, informative and simple. Well done!

[anakaryngarcia]

simple , and informative, love the non agressive presentation.

[TheBella1423]

clear, simple and easy to watch.

[justicepatricksmith]

very good production. very professional and informative!