Germany is in HUGE trouble....their imposition of "austerity" will result in a possible breakup of the Euro and then the DM will double or triple in value, making it impossible for the mercantilism export oriented for less than 3x what they cost now. They are part and parcel of what made this happen. I knew that when the Berlin Wall fell we'd have to be back there in 50 years...As Churchill was rumored to have said: "The Hun is either at your throat or his throat is under your boot...
I'd like to ask this stooge why Germany isnt in trouble. Oh yeah, because of fiscal responsibility. Also, they produce good products that other countries want to purchase. He believes that you can get out of debt by incurring more debt.
The animation is very nicely done. Unfortunately the dialog isn't, especially because it leaves out the most important part, why Greece and other countries are in their current situation. Blaming the banks for everything is so easy, but somebody calling themselve an economist should dig a little deeper.
The EU wasn't formed so all countries could carry on as before. All of them agreed to certain standards and those in trouble now didn't meet those standards. This video gives punk a bad name.
@CamelClass Dig a little deeper? David McWilliams has been right about the Irish economy for the last decade and more... are you a banker by any chance?
This video is misleading by oversimplifying too much. It's not about spending more or spending less. It's about spending wisely and creating more value.
I don't agree with some stuff but one central lesson is sound: if there's a recession, the solution is spending. Yes, making the money go around, generating revenue. We saw that in the last "global" crisis: Countries who lowered interest and expanded credit lines for the ppl got out better
A few generations ago it was the church that gave puppet governments the power they needed to oppress the people, now it is the bankers that give governments that same power. Bankers are the new priest class, shrouded in mystery and above reproach, both selling forgiveness at a price, both promising a better tomorrow if we just give them what they want.Priests raped and abused children all over the world and got away with it because they were above the law. Now the bankers rape everybody
@ivandaniel08 I agree, but please be aware that the vast bulk of the money owed to foreign banks by "ireland" was actually acrued by our banks, private institutions, not by the Irish government and much less our people. We the people are now being forced to pay back this private debt, in contradiction to the laws of capitalism which would have let the banks go bust, because our banks owed te money to French and German banks, their Governments didnt let us default on the private debt
Actually it's the definition of "INSANITY" is repeating the same thing over and over and expecting different results... Also there seem to be some religious bias in this video... classic Irish fueds?
This guy illustrates all the problems with Keynesian economic theory, and then expounds on more BS Keynesian theory to explain how the problem can fix the problem. These people will never learn.
Thanks David, as our puppets of the rich and powerful (politicians), continue to confuse the people of Ireland with technical economics, they were well overdue a real breakdown of what’s happening. It's a shame so many, which I would guess are Americans, chose to comment on something they know nothing about as per usual. Unfortunately there will always be some who believe what they hear on Fox News, the power of right wing propaganda. Love the column in the Sunday Business Post, keep it up!
I think all these people who think this is bullshit should look at David's track record. He has been right more often than not. He explains things in a simple manner taking away all the Bullshit. Thanks David...
@EoCEoCEoC Very true, most of the comments are one liner put downs, with no validation or explanation to even suggest what they do not agree with. Maybe the increase in the G-2 budget this year was to pay youtube trolls to stalk economists with views that differ from the government line and that of our troika masters LOL
Gold is Liberty - I love you - I have seen these trolls on Occupy and Ron Paul videos . totally agree with you there .Good that we have Youtube so that we don't have to be fed lies by the government mouthpiece media.
A gambler will find any excuse to BORROW money from you: wife hungry, children sick etc etc, sometimes its better to help the poor directly then these reckless bankers/ leaders, maybe putting Greece's culpable politicians in jail would be a good thing (they over-printed too many bonds). BTW, the current Greek finance minister (Evangelos Venizelos) certainly looks far too overfed: bad for himself, bad for Greece too.
Nice explanation, but the German and French "bank policy's speakers and fulfiller" are not "Germany" and "France" at all, since to the German and French people happens exactly the same as to all the other nations all over the world (even not only in Europe!!) The polit marionettes just fulfill the orders of the bank owners. And they want to destroy all the world to be able to start then once more (and make new huge profits).
@jeffwhitemedia The thing is, this guy has been right for the last 10 years. He predicted this crisis 10 years ago. He called it a bubble 10 yrs ago and said it would end in negative equity and ghost banks and he was right. What does American know about the Irish economy or the wider EU economic crisis anyways ?
Is that opinion or facts, I'm fairly convinced that this is all opinion. I live in Europe and no bank has told me what to vote, or banned any political party, etc. Hence this is a democracy, even if a rotten one, not anymore rotten than USA tho
WARNING: This video contains bullshit socialist solutions to somewhat accurately explained problems. Do not watch this to learn what should be done, but only to learn what is happening now.
Oh for fuck sake. The new treaty only targets structural deficits, not cyclical ones. This video deliberately misrepresents that fact because it doesn't fit in with your 'Germany France elites are evil' narrative. It's no wonder the people of this country are economically illiterate.
Great video David - love the stylish new way of explaining a perceived dry or "dull" topic & fantastic pacing & pausing to allow us to really hear the content in your VO. Lovely lyrical storytelling - can't wait to see more!
Whoever made this video is mental. You do know that the RSA videos were drawn first and organised on computer. The hand that draws them was then layered over the drawing as it gradually appeared, giving the APPEARANCE of someone drawing it out live. To actually draw it live is insanity. More work, but a crummier result.
The video is witty and innovative, but I don't really agree with its content. I noticed that the creator praises American style economics, which to me is ridiculous. Given how the US basically owes its shirt to China, for example.
Germany appearing to be a main creditor and also the chief contributor to European Economic Development Grant Funds should likely allow other countries to default and then pass out the numbers for Chinese National Banks once the next round of borrowing commences?
Nice video...but I think it might have been beneficial to mention Iceland and what happened there a couple years ago, and how they handled it and how well they are doing now...you see they jailed their bankers and some of their MP's, threw out their government, told the banks to shove it, started a new government with a new constitution and real sound money without those crooked central banks and now Iceland is prospering
Sorry, if this vid depicts males in ponytails & females with pieces of metal pierced through their faces, it will no doubt be the Marxist version of what took place.
Look at the countries in the worst shape, they are the socialist nations who routinely promise more money to more public sector union employees than is mathematically possible to sustain.
All very clever and trendy and all and entertaining too, but austerity is nothing to do with debt and banks. Austerity is about "restoring order in the public finances". In Joe Bloggs terms, all our savings are gone - that's the bank bit and we had to get some new loans to pay off old loans but that's history. The real problem is that we spend more each day than we receive and that's why we have to take austerity measures
Great video David. I think you underestimate the power elite in Europe. They are not stupid. This is a massive political drive to consolidate power in Europe and the world. Its very little to do with economics, or peoples well-being. Crises is a perfect opportunity for power hungry people. Again, they are not stupid!!
@porterj36 Just one problem: The money from the german tourist was never given, it was lended at interest. If Greece fails to pay this intereset the german vil come back and claim every public company as his private property.
Besides, the banks keep all the money for themselfves and spend it on bonusses and bribes. In capitalism when banks fail the stockholders are the ones who should take the losses. Thats how its supposed to work. Bailouts is losses socialised and profits privatised
The publican slips the money to the local prostitute drinking at the bar, who has been facing hard times and has to offer him "service" on credit.
The hooker then rushes into the local hotel and pays off her hotel bill.
The hotel owner then places the €100 on the reception desk so the rich traveller will not suspect anything!
At that moment the rich traveller comes downstairs, picks up the €100 note states that the rooms are not satisfactory, pockets the money, and leaves town.
The owner give him several bedroom keys and as soon as the visitor has walked upstairs, the hotelier grabs the €100 note and runs next door to pay his debt to the butcher.
The butcher takes the €100 note and runs down the road to pay the pig farmer.
The pig farmer takes the €100 note and heads off to the Co-Op to pay the supplier of pig feed and fuel.
The guy at the Co-Op takes the €100 note and runs to the publican to pay off his debt.
The rain is bearing down and the streets deserted.
Times are tough, everybody is in debt, and everybody lives on credit.
On this particular day a rich German tourist is driving through the village, stops at a local hotel and lays €100 note on the reception desk, telling the hotel owner he wants to inspect the bedrooms upstairs in order to pick one to send the night. To be Continued
This cartoon looks really good and fun, but when it comes to information content is so full of the holes.
The real problem is in decreased PRODUCTION, which has all gone west across the Pacific. The void created by luck of production has been filled by post-industrial smoke-and-mirrors profiteering of two forked service industry:super low end (hospitality, retail), end super high end: finance and real estate industry.
The Austerity economics has been promoted in the world by Miltonian (as in Milton Friedman) Chicago School of Economics, which has influenced and informed Washington Concensus approach to the world econ relationships, and they are spilling into Europe now, so to say that is recent French-German politics in origin ridiculous. Chicago School have been grooming economics in the world for way longer then the last crises of 2008, and EU euro zone.
The problem lies in the basic postulates of capitalism that is requires growth larger then zero at all times. For people in the US this has translated into decades of not neurotic, but bipolar messages by its government: SPEND to support the economy, and you are not SAVING enough (Americans are the worst savers in the world has been message all throughout 1990s and 2000s)!
Complaining for banks having too much power and suggesting Keynsian economic solutions doesn't make sense. Keynsism always leads to corporationism ,bankokracy and big government.
keynesian economics doesn't work thou. America is in a bind because here, due to corporatism, bounses and entitlements increase in times of prosperity. While in times of recession, there is nothing left after everything has been snatched up to boost the economy. I understand that what i described above isn't keynesian economics, but its IDEA is being had! There is no responsibility or even morality to allow the people to get a check rather than the goverment or a corporation in times of need.
Someone flag my comment they know its the truth I will keep reposting, here it is again. Germany and France are creating a new poor class of people,They are bankrupting our country they will then come in to buy up the our assets at knock down prices.Its call a takeover. Its time the Irish flag was taken down over Dáil Éireann the present incumbent should be ashamed maybe the People of Ireland will wake up soon.Thanks You David Mc Williams.
Wow....just wow. This guy has a fundamental misunderstanding of economics. Spending is more stable than income (people need to eat), saving means more capital is available for investment, and the reason for this downturn is simple: Too much spending and not enough saving. Banks aren't blameless and will take loses on a default, but countries must be responsible for their debt. Stop whining about evil bankers. Citizens voted for an unrealistic model. Now they get to come back to reality.
@oigewan1 "Banks aren't blameless and will take loses on a default, but countries must be responsible for their debt."
You are cute! That's why the Euro crisis started with a bank crisis, eh? Because the governments spent too much, lol. It is you who has a fundamental misunderstanding of what is going on in Europe.
Fantastic video. Was just reading "Staring into the Abyss" by John Mauldin, and his sentiments are pretty much echoed here, although his solutions are somewhat more scary; however; there does not seem to be much alternative. Thanks for putting this together in a very consumable fashion.
this video is stupid and far from the economic reality
its not the fault of Germany that Greece is in debt and collapsing, Germany wants responsibility and they are right to ask for it,
the US Wall Street helped Greece cook its financial books so it could hide its debt, now that that has been proven a failure its the Germans fault and the USA is the good guy, quite the opposite
@adapaevolved Every politic knew about the real situation in Greece, even the German politics. But it is Germanys fault of how the countries handle the crisis. Germany makes everything worse and that is a true fact. Regards from Germany.
The natural economy equivalent to recession is when all your work is done and it's time to take your time and to live off from the resources gathered to prevent overproduction.
When money is borrowed, both the lender and borrower benefit. However, if after a period of time passes and more borrowing is needed to repay the original loan, this ONLY Benefits the Lender, NOT the Borrower. Default is the answer, not more debt. The Lender is entitled to the collateral. If the loan is unsecured by collateral, then the lender suffers the loss; period. Governments protecting the interests of Banks...Please...When is the World going to wake up from its stuper.
In Greece with 50K of income last year, I paid 20K in taxes ,12K in never-to-be-refunded VAT(from exports), 2K emergency tax for freelancers, €1700 road tax, 5K in property tax and 10K to the bank for my mortgate and I am left with -€1000 to feel my children and for my bills... If this is their idea to revitalise the economy .. they are for a nasty surprise. I have two choices: 1) dodging my taxes or 2)moving to United States. As a law-abiding citizen will go for option number 2
and the alternative is - give the Greeks a load more cash, they repeat the behavior that got them into trouble with the added ingredient of Europe experiencing hyper inflation. Boston is not a good comparison, Germany has it's own Bostons in what was East Germany that have been bailed-out, Germany has no control over the Greek government. Germany is correct, governments need to shrink, it is the law of diminishing returns.
This is more like 'Preposterous Economics'. Germany has the only financially responsible economy in Europe, and yet you demonize them for expecting the overspending southern countries to reign in their out of control spending.
@alustoon might do a bit of Zambia next time ;) well spotted. The old 'live drawing' opens the door to errors. Not as many errors as I had expected :p
Something is not right in this video, in my point of view. The focus lies to much on the countries but not on the banks, where the real power is. Merkel and Sarkozy are puppets of their own banking system, forcing them to act like they do, intimidating them with apocalyptic visions of collapse.
I am quite sure, that most germans (I am german btw.) don't support the ongoing politics, and I am sure this is the same in France. Most people anticipate the REAL powers behind this charade...
@casewolf2 And to add something: I get the impression that these actions force hostility between nations that is artificial. It's a gigantic game of forces trying to outplay europes countries against each other. Greece must exit the euro, that is a mathematical necessity based on economic predispositions. Same applies to Portugal, Spain and Italy. But that's it. No need to be hostile or point fingers.
Excellent video. The EU - run by the Francfort Group - is driving Europe towards another war. The sooner the PIGS default and leave the Euro, the better. Ireland should talk to the UK about rejoining the Sterling zone.
Someone flag my comment so here it is again. Germany and France are creating a new poor class of people,They are bankrupting our country they will then come in to buy up the our assets at knock down prices.Its call a takeover. Its time the Irish flag was taken down over Dáil Éireann the present incumbent should be ashamed maybe the People of Ireland will wake up soon.Thanks You David Mc Williams.
Really funny how the PIFGIS suddenly want solidarity and transfers from Germany. Where were the transfer from the booming PIFGIS from 1998-2005 when Germany was not doing well?
Mate, although this is good to watch you are still not down the rabbit hole far enough. When you compare Euro with USA and say their way is best? you must ask the question where does the US gov get their $ from? yes, the Fed Res:) but the killer question is where does the Fed get their $ from - Yes, by printing more money!!! with nothing to back it - pure paper:( This is WRONG!!!!!! If you were to do that it would be consider fraud and you'd be in prison. Stop the Fed and fractional banking.
@ScrapMetalJoe It's backed by the full faith and credit of the US government. That may not sound like much, but it's the world's largest economy, and it has NEVER reneged on its debt obligations. All of the reserve currencies are fiat currencies. To call this fraud is ridiculous and shows a fundamental understanding of the US's monetary system.
But hey, if you think dollars are worthless then feel free to send them to me.
@nihilistic0 where is your guide dog and cane? I think you need to do more homework about how much debt the US is in along with the PIIGS where do you think this money is going to come from? If you think the US$ hasn't gone through this cycle before you are fooling yourself. You're part of the sheeple & need to do more homework. As for sending you US$:) I much prefer cashing them in to buy more physical. Pity I won't be there to watch your jaw hit the ground when the US$ crashes
@ScrapMetalJoe Where do you think dollars come from? The Fed pulls them literally from thin air. The Treasury create bonds, since they can't sell them directly to the Fed, they sell them to private banks. The Treasury takes this money and deposits it in there account at the Fed. The Fed then buys the bonds from the banks with money they pull from thin air, and those bonds become government "debt". It is the equivalent of the Fed buying bonds directly from the Treasury.
@nihilistic0 If you change the law so the Fed can buy from the Treasury, then the same thing would be accomplished, except without the debt. Bonds bought by citizens and other countries are not needed to fund the government, nor are taxes. Government debt is not the same as personal debt. Also, you cannot directly compare the PIIGS to the US. Those countries do not issue their own currency, so they must rely on money coming in from outside its borders. Please do your own homework.
@nihilistic0 you must be thick as two short planks! that's what I was explaining to you about this video in the first place. I fucking know the Fed magically produces money out of thin are or by inkjet printers but what I was saying was this video is complimenting how the US system is the best duh! what is so good about printing paper without anything backing it? You must be "Y" gen - blinkers on, doesn't listen, and just loves to respond without thinking - go back to preschool!!!
2;34 telling and truth and being forgiven. But wait a sec isn t that what is happening. I mean all the austerity in greece with no compensation while at the same time we know that they can never repay the money. I mean now Grece is just being punished. You know the usual redemption though suffering.
@Truthpolice9698 Sad but true. Nonetheless, some points are right. Those bailouts just help banks, not economics or even people. Austrian school anyone?
@casewolf2 Printing money and bailing out banks/government is the same thing as taxing everyone through inflation to bail out elites. Europeans should be outraged and demand the over leveraged parties go bankrupt. The "New World Order" would die and new rulers emerge. Hopefully rulers who understand Austrian economics.
The “smoothing” transfer payments is a bull shit argument as well.
It may be socially desirable but taking money from Peter to pay Paul does nothing for GDP growth, it just makes politicians feel important and justified.
Real easy to prove that government spending is a negative, and when it is removed the economy improves. Look at the US GDP 1944 to 1948, when government spending peaked out, and when it was removed. When government spending was removed the economy exploded.
@Truthpolice9698 I'm not sure how that proves anything. The economy crashed in 1929. GDP growth started recovering very slowly around 1933, which just happens to coincide with a slow growth of federal spending. In 1943, GDP growth started a rapid recovery, which also happens coincide with a marked increase in federal spending. WW2 ended late in 1945, and government spending for 1946 decreased as a result of that. The economy after that was driven by returning vets able to easily
@nihilistic0 acquire houses and pent up demand. Government spending hit a low in 1948, which coincides with a lull in GDP growth. Spending started increasing again in 1949, and again, GDP started growing as well.
Every recession has followed a sustained period of decreased spending, and increased spending during the recessions has pulled the economy out of all of them. A growing economy needs a growing money supply, which is accomplished by federal deficit spending. The end.
@nihilistic0 Silly Keynesian. 1948, in the USA, the GDP grew 4.4% from 1947 (2005 chained dollars) according to the USDC. More recently the US government has increased spending as a percent of the GDP from 20% to 25% and the economy has stagnated and is on the verge of a European collapse because of too much debt.
For every 10% the government consumes in GDP spending the economic growth declines 0.5% to 1%. This is why European economies do not grow fast, too much government.
@nihilistic0 The subject is way to complex for youtube bits and pieces. I like Murray Rothbard's "America's Great Depression" and What Paul Krugman Misses About 1937 Redux: Echoes By Amity Shlae on Bloomberg talks about the Depression within the Depression-1937-after FDR was in office 4 years.
After WWII the economy transitioned from war to peace and the switch from war goods to consumer goods. Free enterprise was legal again and the economy responded accordingly.
When the economy is bad the government needs to spend LESS. Government produces nothing. Government takes resources from the productive sector of the economy and redistributes the recourses. So if government does not produce anything, and causes economic injustice and inefficiency, why on God Earth would we want more government spending in a recession?
@Truthpolice9698 Why don't you go take a look at how well austerity is working in Europe? And then compare the shrinkage of the economy that they've experienced, with the (admittedly slow) growth of ours. Please inform yourself on how our monetary system actually works.
@nihilistic0 When you have a over expansion of credit, you will ALWAYS have a contraction. You NEED the contraction to liquidate bad investments. If you keep bailing out the bad investments you will make the problem worse. You need much more austerity to liquidate the malinvestments,ens that have occurred over decades. Without it you will be in Groundhog Day hell for decades like Japan.
Germany is correct. Government needs to shrink. Government should NEVER be more than 25% of the GDP. The correct equation for GDP would be Y = C + I –G +lNXl not the current 1934 version which claims government is a equal contributor to the GDP.
You need the interaction of savers, capital users, consumers, interest rates, demand for money, and TIME to separate the different consumption patters for a successful, bubble free economy.
Sorry to say but this video is a example of the fairy tales that are passed on to people that are simply false and lead to massive economic blunders decade after decade.
This is not the same thing as the government artificial printing money to lower interest rate because if consumers continue to consume, and capital users continue to consume the same basket of resources at the same time you ALWAYS get the boom, and then the bust. This ALWAYS happens because sooner or later you run out of resources, not enough consumers, not enough capital producers, and when that day comes you get the bust. Think housing bubble.
The Keynesian “Paradox of thrift” argument is bull shit.
The economy does BETTER if people save, real savings, because they forgo consumption by savings, and with REAL savings interest rate decline, signaling capital users to invest and build new production facilities, like iron ore mines, oil production, and higher level capital projects.
Austerity fails if you do not liquidate the debt. Keeping the debt on the books, taxing the public to pay the debt, only prolongs the pain. The solution is complete liquidation, and shrinking governments, massive lay off of government workers, and returning to realistic levels of government not exceeding 25% of the GDP.
amazing very true. USA has a true fiscal union and that works becos they are th SAME country wth same lingo and culture.
EU made out of mutiple countries. So Euro will be a fail project. I bet the periphery nations will leave Euro in the next few years when they had enough.Gemany is trying to solve problem with a ultra selfish attitude.
@Bass20HZobsession As if supply-side "voodoo" economics would help. Where are the jobs, IBM, Exxon and Caterpillar when they don't even have to pay taxes?`Oh they are in China you say? Hmmmm....
Austerity = reduction of State Spending. Growth DOES NOT COME FROM STATE SPENDING. It comes from private investment. Private Investment is impossible if the State spends to much which implies higher taxes to service its Debt. Like it or not States have to reduce there spending.
@quatroseven Sorry, I think you're wrong. recession: Nobody buys stuff, everyone is cutting back etc.
Now the Government takes some tax revenue and does something with it, like builds a bridge or a highway. It contracts a private company, which hires people to do the job. The workers earn money to spend it at some store and the store owner has to buy more merchandise, due to higher demand, form the factory and the factory has to hire and so on and so forth....
NO value has been created in the cycle you described because the government takes the money from the workers via tax. Then it spends it. There is no win, the workers could spend it in the first place if the government leaves it there. Also the government will spend it less wisely than the workers because the economy should serve the demand of the people not the demand a government creates.
@quatroseven And how do expect to live in a country with roads, water piped to your home, schools, hospitals, anything close to clean water and air, bridges, railways, public transit - without taxes??
@quatroseven And secondly, there is a whole host of things that businesses and/or capitalism in general cannot, don't want to and are not going to provide.
And I would like to challenge you to provide me something that government provides that the general public doesn't demand.
@quatroseven Let me put it this way: According to Milton Friedman, the only goal for private companies is profit.
But at times the profit motive is at odds with the desires and demands of the public. Governments don't have one and have therefore the ability to provide services in a much more equitable way. Companies wouldn't either care or provide them only under outragous conditions.
Germany and France are creating a new poor class of people,They are bankrupting our country they will then come in to buy up the our assets at knock down prices.Its call a takeover. Its time the Irish flag was taken down over Dáil Éireann the present incumbent should be ashamed maybe the People of Ireland will wake up soon.Thanks You David Mc Williams.
Also I remember hearing him on a radio interview once musing on how soccer mom's / school run mums nowadays get out of the car. Instead of standing up and adjusting their waistband up for modesty, the tend to wear hipster jeans and tug it down to flash the top of their designer knickers! If he wasn't so damn smart he'd be Michael McIntyre
Re-read his books (I've read 'generation game', all his columns, but not i have to admit, 'popes children') and you'll see he is nearly always right. His grasp of real people, real life, common sense and powers of observation added to economics knowledge make him the only voice of reason in all this. I remember only once disagreeing with him recommending Ireland leave the Euro, as I figured the punt would collapse, until I realised that was the whole point!
2. He talks about "savings" in much the same way that we keep hearing about them in the indo or newstalk etc. They give the impression that ordinary workers (comsumers) are not spending their money and are hoarding it. Some lucky ones are able to save a bit, most people cannot afford to. The "savings" they are talking about is predominantly made up of retained earnings, profits not being invested. It would be more realistic to refer to this as an INVESTMENT STRIKE than a build up of savings.
Marxism tells us why this investment strike (build up of savings, lack of investment etc.) is occuring.
For capitalism to function, capitalists must make profits on their investments, these profits can be viewed as a percentage of the value created by the worker being skimmed off the top by the capitalist. This cannot continue forever because the workers must also consume and pay for the products produced by the whole system.
Mathematically this cannot work out. If workers (as a global grouop) are only paid for 60% of the value they create, how can they pay for and consume anything close to 100%?
The explosion in credit available to workers / consumers was a temporary fix, it worked for 30 - 40 years. Now that this temporary fix has collapsed - how can capitalism survive??
3. Continueing on the current path, which will mean the percentage of value produced paid to the workers will drop at an even faster rate, transfers of wealth from states to private institutions will continue indefinately. This path condems billions of us to grinding poverty for decades.
Out of the 3, clearly No. 1 is the lesser evil of the lot.
A more sensible solution would have to involve the abolition of capitalism!
Not a bad overview, eventhough the question of who creates the money and how is brought into existence is not even touched upon here. Another issue would be the concept of Free Market which we are suposed to be partaking within the EU but have the opposite, corporate personhood is the lynchpin allowing corporate control of all political parties in every country, OH dear......, the rabbithole runs very deep here, but it can be easily understood ! if you dare to question the excepted norms !
Great drawing, but the economic analysis is a bit puerile. We can spend our way out of a recession caused by overspending? The banks caused the problem?
No - it's actually Government - who set interest rates artificially low. This made consumer credit cheap, (encouraging a spending binge), it made business investment cheap, (misallocating capital to risky, wealth-destroying businesses (dotcom, anyone?)), and it made saving totally unattractive (except for crazy banking schemes like CDSs).
Great video except for the idiotic catholic/protestant illustration. Why would you put something so inaccurate and ridiculous in this video? The US is undeniably a protestant culture and has been forgiving lots of mortgages for over 6 years. Why is Quinn desperate to file for bankruptcy in the North instead of the Republic? This analogy is wrong economically, religiously, and culturally. It sounds very provincial. Good Catholic/Bad Protestant is such a narrow little Irish mindset.
Ok cogent argument but until this "stand up" happens way down the road isn't Germany able to export merrily with a guaranteed weak €, low unemployment though ageing population and low labour costs from migrant (periphery) workers? Sarkozy baby needs to get re-elected so no worries there, English are out of the game so really only David Williams left. Banking on the Germans to win this one! David keep them coming...........
I have little faith in the people to stand up and say anything. Even if they do they will be ignored. "Each act, each occasion, is worse than the last, but only a little worse. You wait for the next and the next. You wait for one great shocking occasion, thinking that others, when such a shock comes, will join with you in resisting somehow." - Milton Mayer - They Thought They Were Free.
Fair play David. Well said. All this fiscal union or whatever ya wanna call it is only protecting French and German banks while our politicians...twits don't even discuss a debt writedown, but sign the dotted line. I don't remember voting for these twits that can simply sign a fiscal union, and force even greater austerity on Irish people who had absolutely nothing to do with this EU/IMF bailout. Jokers. "Referendum" is a naughty little word in Europe now! We are on a course to be railroaded!!
I was put off by the catholic-protestant analogy. I am not religious, though I was raised protestant, and I can assure you that protestants believe as much in the central theme of Christian forgiveness as catholics - they main difference is that they believe that forgiveness comes from Christ - not from celibate men in robes. If one wants to use that analogy then one must consider where Ireland might be today had it adopted a protestant-like work ethic? Other than that - good job David!
Would be nice to have some references/links in the description, please :)
orangejon 12 hours ago
Very little explanation, mostly statements.
SonOfSeth 1 day ago
@SonOfSeth ...by an expert in economics and banking for 20+ years.
andybeill 20 hours ago
Germany is in HUGE trouble....their imposition of "austerity" will result in a possible breakup of the Euro and then the DM will double or triple in value, making it impossible for the mercantilism export oriented for less than 3x what they cost now. They are part and parcel of what made this happen. I knew that when the Berlin Wall fell we'd have to be back there in 50 years...As Churchill was rumored to have said: "The Hun is either at your throat or his throat is under your boot...
condolawyer 1 day ago
I'd like to ask this stooge why Germany isnt in trouble. Oh yeah, because of fiscal responsibility. Also, they produce good products that other countries want to purchase. He believes that you can get out of debt by incurring more debt.
finance485 2 days ago
The animation is very nicely done. Unfortunately the dialog isn't, especially because it leaves out the most important part, why Greece and other countries are in their current situation. Blaming the banks for everything is so easy, but somebody calling themselve an economist should dig a little deeper.
The EU wasn't formed so all countries could carry on as before. All of them agreed to certain standards and those in trouble now didn't meet those standards. This video gives punk a bad name.
CamelClass 6 days ago
@CamelClass Dig a little deeper? David McWilliams has been right about the Irish economy for the last decade and more... are you a banker by any chance?
PhotoJoe83 1 day ago
This video is misleading by oversimplifying too much. It's not about spending more or spending less. It's about spending wisely and creating more value.
pmagnowski 6 days ago
I don't agree with some stuff but one central lesson is sound: if there's a recession, the solution is spending. Yes, making the money go around, generating revenue. We saw that in the last "global" crisis: Countries who lowered interest and expanded credit lines for the ppl got out better
leoholsbach 1 week ago
@leoholsbach
"if there's a recession, the solution is spending."
This seems like a good solution only if you are blindfolded by Keynesian economics and refuse to see long term effects...
echmech 5 days ago
A few generations ago it was the church that gave puppet governments the power they needed to oppress the people, now it is the bankers that give governments that same power. Bankers are the new priest class, shrouded in mystery and above reproach, both selling forgiveness at a price, both promising a better tomorrow if we just give them what they want.Priests raped and abused children all over the world and got away with it because they were above the law. Now the bankers rape everybody
goldisliberty 1 week ago
Just stop spending more than what you have!
ivandaniel08 1 week ago
@ivandaniel08 I agree, but please be aware that the vast bulk of the money owed to foreign banks by "ireland" was actually acrued by our banks, private institutions, not by the Irish government and much less our people. We the people are now being forced to pay back this private debt, in contradiction to the laws of capitalism which would have let the banks go bust, because our banks owed te money to French and German banks, their Governments didnt let us default on the private debt
goldisliberty 1 week ago
Actually it's the definition of "INSANITY" is repeating the same thing over and over and expecting different results... Also there seem to be some religious bias in this video... classic Irish fueds?
bdjrs 1 week ago
He's full of it alright.
The only solution is to default AND live below your means
deadballo 1 week ago
This guy illustrates all the problems with Keynesian economic theory, and then expounds on more BS Keynesian theory to explain how the problem can fix the problem. These people will never learn.
Maat922 1 week ago
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Thanks David, as our puppets of the rich and powerful (politicians), continue to confuse the people of Ireland with technical economics, they were well overdue a real breakdown of what’s happening. It's a shame so many, which I would guess are Americans, chose to comment on something they know nothing about as per usual. Unfortunately there will always be some who believe what they hear on Fox News, the power of right wing propaganda. Love the column in the Sunday Business Post, keep it up!
RichieWoods001 1 week ago
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RichieWoods001 1 week ago
I think all these people who think this is bullshit should look at David's track record. He has been right more often than not. He explains things in a simple manner taking away all the Bullshit. Thanks David...
EoCEoCEoC 1 week ago 2
@EoCEoCEoC Very true, most of the comments are one liner put downs, with no validation or explanation to even suggest what they do not agree with. Maybe the increase in the G-2 budget this year was to pay youtube trolls to stalk economists with views that differ from the government line and that of our troika masters LOL
goldisliberty 1 week ago 2
@goldisliberty
Gold is Liberty - I love you - I have seen these trolls on Occupy and Ron Paul videos . totally agree with you there .Good that we have Youtube so that we don't have to be fed lies by the government mouthpiece media.
candypink40 6 days ago
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A gambler will find any excuse to BORROW money from you: wife hungry, children sick etc etc, sometimes its better to help the poor directly then these reckless bankers/ leaders, maybe putting Greece's culpable politicians in jail would be a good thing (they over-printed too many bonds). BTW, the current Greek finance minister (Evangelos Venizelos) certainly looks far too overfed: bad for himself, bad for Greece too.
BicCherry 1 week ago
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BicCherry 1 week ago
Bullshit solution alert!
GuitarmandanXo 1 week ago
kenesian clap trap, bullshit, they need to shrink the welfare state socialist pigs
randjc725 1 week ago
The opposite is the protestant route ? Give me a break. Martin Luther was all about breaking away from the Jewish usury concept.
MaxZagar 1 week ago in playlist Uploaded videos
Nice explanation, but the German and French "bank policy's speakers and fulfiller" are not "Germany" and "France" at all, since to the German and French people happens exactly the same as to all the other nations all over the world (even not only in Europe!!) The polit marionettes just fulfill the orders of the bank owners. And they want to destroy all the world to be able to start then once more (and make new huge profits).
hesika54 1 week ago
better than rsa animate
nuuuum 1 week ago
Ugh, this is such typical bullshit. Don't just blindly believe this guy.
If you want to understand what happened read "meltdown a free market look at why the stock market" etc
Bukujutsu 1 week ago
This guy has no idea what the hell he's talking about.
jeffwhitemedia 1 week ago 9
@jeffwhitemedia THANK YOU! I can't believe so many people liked this video.
8bitRicky 1 week ago
@jeffwhitemedia Can you explai
Can you explain why he has no idea what he's talking about ? This is what is actually happening to the Irish economy and in other EU countries
KrackowKid 5 days ago 3
@jeffwhitemedia The thing is, this guy has been right for the last 10 years. He predicted this crisis 10 years ago. He called it a bubble 10 yrs ago and said it would end in negative equity and ghost banks and he was right. What does American know about the Irish economy or the wider EU economic crisis anyways ?
boscoesarmy 4 days ago 4
Is that opinion or facts, I'm fairly convinced that this is all opinion. I live in Europe and no bank has told me what to vote, or banned any political party, etc. Hence this is a democracy, even if a rotten one, not anymore rotten than USA tho
zack9922299 1 week ago
WARNING: This video contains bullshit socialist solutions to somewhat accurately explained problems. Do not watch this to learn what should be done, but only to learn what is happening now.
hazeee123 1 week ago 7
Very little actual explanation in this video. Just statements with little basis.
Coltaculuss 1 week ago 10
@Coltaculuss
You are a troll.
candypink40 5 days ago
@candypink40
I only troll when people make stupid replies to valid points.
Coltaculuss 5 days ago
Oh for fuck sake. The new treaty only targets structural deficits, not cyclical ones. This video deliberately misrepresents that fact because it doesn't fit in with your 'Germany France elites are evil' narrative. It's no wonder the people of this country are economically illiterate.
Andrewlinn957 2 weeks ago 6
This illustration is brilliant.
IAmBurger 2 weeks ago
Great video David - love the stylish new way of explaining a perceived dry or "dull" topic & fantastic pacing & pausing to allow us to really hear the content in your VO. Lovely lyrical storytelling - can't wait to see more!
PressPlayVideoCoach 2 weeks ago
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sungod1978 2 weeks ago
Whoever made this video is mental. You do know that the RSA videos were drawn first and organised on computer. The hand that draws them was then layered over the drawing as it gradually appeared, giving the APPEARANCE of someone drawing it out live. To actually draw it live is insanity. More work, but a crummier result.
3LARI 2 weeks ago
The video is witty and innovative, but I don't really agree with its content. I noticed that the creator praises American style economics, which to me is ridiculous. Given how the US basically owes its shirt to China, for example.
Germany appearing to be a main creditor and also the chief contributor to European Economic Development Grant Funds should likely allow other countries to default and then pass out the numbers for Chinese National Banks once the next round of borrowing commences?
NannyOgh 2 weeks ago 3
i miss art attack....
killbotone 2 weeks ago
Nice video...but I think it might have been beneficial to mention Iceland and what happened there a couple years ago, and how they handled it and how well they are doing now...you see they jailed their bankers and some of their MP's, threw out their government, told the banks to shove it, started a new government with a new constitution and real sound money without those crooked central banks and now Iceland is prospering
ar47yrr4p 2 weeks ago 10
@ar47yrr4p Exactly! The Iceland story is not in the media, so that others don't get ideas!
gimik2 1 week ago
@ar47yrr4p Very well said!
goldisliberty 1 week ago
i have the solution. hang the fucking zionist bankers and erase israel from the face of the planet and all of europe problems will vanish overnight.
glower125 2 weeks ago
Sorry, if this vid depicts males in ponytails & females with pieces of metal pierced through their faces, it will no doubt be the Marxist version of what took place.
Look at the countries in the worst shape, they are the socialist nations who routinely promise more money to more public sector union employees than is mathematically possible to sustain.
dgl1962 2 weeks ago
Google "the eleventh marble"
WRHappened 2 weeks ago
true story!
DepBulletproof 2 weeks ago
prosperity without growth and not continuing the destroying american way
quaxli 3 weeks ago
All very clever and trendy and all and entertaining too, but austerity is nothing to do with debt and banks. Austerity is about "restoring order in the public finances". In Joe Bloggs terms, all our savings are gone - that's the bank bit and we had to get some new loans to pay off old loans but that's history. The real problem is that we spend more each day than we receive and that's why we have to take austerity measures
PadraigMcKeon 3 weeks ago
Great video David. I think you underestimate the power elite in Europe. They are not stupid. This is a massive political drive to consolidate power in Europe and the world. Its very little to do with economics, or peoples well-being. Crises is a perfect opportunity for power hungry people. Again, they are not stupid!!
mccoya2 3 weeks ago
No one produced anything.
No one earned anything.
Owing to limitations of length of posts, please read last post first!
However, the whole village is now out of debt and looking to the future with a lot of optimism.
and that, Ladies and Gentlemen is how the "bailout" works!!!!
porterj36 3 weeks ago
@porterj36 Just one problem: The money from the german tourist was never given, it was lended at interest. If Greece fails to pay this intereset the german vil come back and claim every public company as his private property.
Besides, the banks keep all the money for themselfves and spend it on bonusses and bribes. In capitalism when banks fail the stockholders are the ones who should take the losses. Thats how its supposed to work. Bailouts is losses socialised and profits privatised
Jabberdau 2 weeks ago 2
The publican slips the money to the local prostitute drinking at the bar, who has been facing hard times and has to offer him "service" on credit.
The hooker then rushes into the local hotel and pays off her hotel bill.
The hotel owner then places the €100 on the reception desk so the rich traveller will not suspect anything!
At that moment the rich traveller comes downstairs, picks up the €100 note states that the rooms are not satisfactory, pockets the money, and leaves town.
To be Continued
porterj36 3 weeks ago
The owner give him several bedroom keys and as soon as the visitor has walked upstairs, the hotelier grabs the €100 note and runs next door to pay his debt to the butcher.
The butcher takes the €100 note and runs down the road to pay the pig farmer.
The pig farmer takes the €100 note and heads off to the Co-Op to pay the supplier of pig feed and fuel.
The guy at the Co-Op takes the €100 note and runs to the publican to pay off his debt.
To be Continued
porterj36 3 weeks ago
EXPLANATION ON HOW THE GREEK BAILOUT WORKS!!!
It is a slow day in a little Greek village.
The rain is bearing down and the streets deserted.
Times are tough, everybody is in debt, and everybody lives on credit.
On this particular day a rich German tourist is driving through the village, stops at a local hotel and lays €100 note on the reception desk, telling the hotel owner he wants to inspect the bedrooms upstairs in order to pick one to send the night. To be Continued
porterj36 3 weeks ago
This cartoon looks really good and fun, but when it comes to information content is so full of the holes.
The real problem is in decreased PRODUCTION, which has all gone west across the Pacific. The void created by luck of production has been filled by post-industrial smoke-and-mirrors profiteering of two forked service industry:super low end (hospitality, retail), end super high end: finance and real estate industry.
BoggeymenCommunist 3 weeks ago
The Austerity economics has been promoted in the world by Miltonian (as in Milton Friedman) Chicago School of Economics, which has influenced and informed Washington Concensus approach to the world econ relationships, and they are spilling into Europe now, so to say that is recent French-German politics in origin ridiculous. Chicago School have been grooming economics in the world for way longer then the last crises of 2008, and EU euro zone.
BoggeymenCommunist 3 weeks ago
The problem lies in the basic postulates of capitalism that is requires growth larger then zero at all times. For people in the US this has translated into decades of not neurotic, but bipolar messages by its government: SPEND to support the economy, and you are not SAVING enough (Americans are the worst savers in the world has been message all throughout 1990s and 2000s)!
BoggeymenCommunist 3 weeks ago
Complaining for banks having too much power and suggesting Keynsian economic solutions doesn't make sense. Keynsism always leads to corporationism ,bankokracy and big government.
fansoad1 4 weeks ago
keynesian economics doesn't work thou. America is in a bind because here, due to corporatism, bounses and entitlements increase in times of prosperity. While in times of recession, there is nothing left after everything has been snatched up to boost the economy. I understand that what i described above isn't keynesian economics, but its IDEA is being had! There is no responsibility or even morality to allow the people to get a check rather than the goverment or a corporation in times of need.
stimmty001 4 weeks ago
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Someone flag my comment they know its the truth I will keep reposting, here it is again. Germany and France are creating a new poor class of people,They are bankrupting our country they will then come in to buy up the our assets at knock down prices.Its call a takeover. Its time the Irish flag was taken down over Dáil Éireann the present incumbent should be ashamed maybe the People of Ireland will wake up soon.Thanks You David Mc Williams.
087mail 4 weeks ago
Wow....just wow. This guy has a fundamental misunderstanding of economics. Spending is more stable than income (people need to eat), saving means more capital is available for investment, and the reason for this downturn is simple: Too much spending and not enough saving. Banks aren't blameless and will take loses on a default, but countries must be responsible for their debt. Stop whining about evil bankers. Citizens voted for an unrealistic model. Now they get to come back to reality.
oigewan1 4 weeks ago
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@oigewan1 "Banks aren't blameless and will take loses on a default, but countries must be responsible for their debt."
You are cute! That's why the Euro crisis started with a bank crisis, eh? Because the governments spent too much, lol. It is you who has a fundamental misunderstanding of what is going on in Europe.
p4rt1 4 weeks ago
well done video. now....i bet there are a bunch of people who are ranting and raging in the comments.
fausto412 4 weeks ago
What a mess ... lets stick to facts!
fredysir 4 weeks ago
Fantastic video. Was just reading "Staring into the Abyss" by John Mauldin, and his sentiments are pretty much echoed here, although his solutions are somewhat more scary; however; there does not seem to be much alternative. Thanks for putting this together in a very consumable fashion.
nickjwza 4 weeks ago
this video is stupid and far from the economic reality
its not the fault of Germany that Greece is in debt and collapsing, Germany wants responsibility and they are right to ask for it,
the US Wall Street helped Greece cook its financial books so it could hide its debt, now that that has been proven a failure its the Germans fault and the USA is the good guy, quite the opposite
adapaevolved 4 weeks ago
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p4rt1 4 weeks ago
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@adapaevolved Every politic knew about the real situation in Greece, even the German politics. But it is Germanys fault of how the countries handle the crisis. Germany makes everything worse and that is a true fact. Regards from Germany.
p4rt1 4 weeks ago
The natural economy equivalent to recession is when all your work is done and it's time to take your time and to live off from the resources gathered to prevent overproduction.
artman40 4 weeks ago
When money is borrowed, both the lender and borrower benefit. However, if after a period of time passes and more borrowing is needed to repay the original loan, this ONLY Benefits the Lender, NOT the Borrower. Default is the answer, not more debt. The Lender is entitled to the collateral. If the loan is unsecured by collateral, then the lender suffers the loss; period. Governments protecting the interests of Banks...Please...When is the World going to wake up from its stuper.
Dday9876 4 weeks ago
Excellent Video.
In Greece with 50K of income last year, I paid 20K in taxes ,12K in never-to-be-refunded VAT(from exports), 2K emergency tax for freelancers, €1700 road tax, 5K in property tax and 10K to the bank for my mortgate and I am left with -€1000 to feel my children and for my bills... If this is their idea to revitalise the economy .. they are for a nasty surprise. I have two choices: 1) dodging my taxes or 2)moving to United States. As a law-abiding citizen will go for option number 2
iakovos21 4 weeks ago in playlist Uploaded videos
and the alternative is - give the Greeks a load more cash, they repeat the behavior that got them into trouble with the added ingredient of Europe experiencing hyper inflation. Boston is not a good comparison, Germany has it's own Bostons in what was East Germany that have been bailed-out, Germany has no control over the Greek government. Germany is correct, governments need to shrink, it is the law of diminishing returns.
wattysmail 4 weeks ago
poor woody lol
steadiworkz 4 weeks ago
This is more like 'Preposterous Economics'. Germany has the only financially responsible economy in Europe, and yet you demonize them for expecting the overspending southern countries to reign in their out of control spending.
maxan99 4 weeks ago
About Boston crysis...only that city was in crysis and whole America helped them get back on feet. But who will help whole Europe?
ValeV008 4 weeks ago
Here, let me say it: ENOUGH already.
Athenaikos 4 weeks ago
Painfully accurate , as he was with "The Popes Children. But who is listening ?
MrBriancusack 4 weeks ago
Black, red, yellow please! You did paint the Belgium flag instead of Germany's btw. Great vid, thanks.
alustoon 4 weeks ago 5
@alustoon might do a bit of Zambia next time ;) well spotted. The old 'live drawing' opens the door to errors. Not as many errors as I had expected :p
FLUDADELIC 2 weeks ago
Take away message for those in power: "Don't say you haven't been warned."
The longer you put off the inevitable, the harder the hammer will fall -- on you.
Banten 1 month ago
Something is not right in this video, in my point of view. The focus lies to much on the countries but not on the banks, where the real power is. Merkel and Sarkozy are puppets of their own banking system, forcing them to act like they do, intimidating them with apocalyptic visions of collapse.
I am quite sure, that most germans (I am german btw.) don't support the ongoing politics, and I am sure this is the same in France. Most people anticipate the REAL powers behind this charade...
casewolf2 1 month ago
@casewolf2 And to add something: I get the impression that these actions force hostility between nations that is artificial. It's a gigantic game of forces trying to outplay europes countries against each other. Greece must exit the euro, that is a mathematical necessity based on economic predispositions. Same applies to Portugal, Spain and Italy. But that's it. No need to be hostile or point fingers.
casewolf2 1 month ago
Excellent video. The EU - run by the Francfort Group - is driving Europe towards another war. The sooner the PIGS default and leave the Euro, the better. Ireland should talk to the UK about rejoining the Sterling zone.
(I wish I could draw like that).
123Boudicca 1 month ago
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Someone flag my comment so here it is again. Germany and France are creating a new poor class of people,They are bankrupting our country they will then come in to buy up the our assets at knock down prices.Its call a takeover. Its time the Irish flag was taken down over Dáil Éireann the present incumbent should be ashamed maybe the People of Ireland will wake up soon.Thanks You David Mc Williams.
087mail 1 month ago
Really funny how the PIFGIS suddenly want solidarity and transfers from Germany. Where were the transfer from the booming PIFGIS from 1998-2005 when Germany was not doing well?
Knut34 1 month ago
Mate, although this is good to watch you are still not down the rabbit hole far enough. When you compare Euro with USA and say their way is best? you must ask the question where does the US gov get their $ from? yes, the Fed Res:) but the killer question is where does the Fed get their $ from - Yes, by printing more money!!! with nothing to back it - pure paper:( This is WRONG!!!!!! If you were to do that it would be consider fraud and you'd be in prison. Stop the Fed and fractional banking.
ScrapMetalJoe 1 month ago
@ScrapMetalJoe It's backed by the full faith and credit of the US government. That may not sound like much, but it's the world's largest economy, and it has NEVER reneged on its debt obligations. All of the reserve currencies are fiat currencies. To call this fraud is ridiculous and shows a fundamental understanding of the US's monetary system.
But hey, if you think dollars are worthless then feel free to send them to me.
nihilistic0 1 month ago
@nihilistic0 where is your guide dog and cane? I think you need to do more homework about how much debt the US is in along with the PIIGS where do you think this money is going to come from? If you think the US$ hasn't gone through this cycle before you are fooling yourself. You're part of the sheeple & need to do more homework. As for sending you US$:) I much prefer cashing them in to buy more physical. Pity I won't be there to watch your jaw hit the ground when the US$ crashes
ScrapMetalJoe 4 weeks ago
@ScrapMetalJoe Where do you think dollars come from? The Fed pulls them literally from thin air. The Treasury create bonds, since they can't sell them directly to the Fed, they sell them to private banks. The Treasury takes this money and deposits it in there account at the Fed. The Fed then buys the bonds from the banks with money they pull from thin air, and those bonds become government "debt". It is the equivalent of the Fed buying bonds directly from the Treasury.
nihilistic0 4 weeks ago
@nihilistic0 If you change the law so the Fed can buy from the Treasury, then the same thing would be accomplished, except without the debt. Bonds bought by citizens and other countries are not needed to fund the government, nor are taxes. Government debt is not the same as personal debt. Also, you cannot directly compare the PIIGS to the US. Those countries do not issue their own currency, so they must rely on money coming in from outside its borders. Please do your own homework.
nihilistic0 4 weeks ago
@nihilistic0 you must be thick as two short planks! that's what I was explaining to you about this video in the first place. I fucking know the Fed magically produces money out of thin are or by inkjet printers but what I was saying was this video is complimenting how the US system is the best duh! what is so good about printing paper without anything backing it? You must be "Y" gen - blinkers on, doesn't listen, and just loves to respond without thinking - go back to preschool!!!
ScrapMetalJoe 4 weeks ago
2;34 telling and truth and being forgiven. But wait a sec isn t that what is happening. I mean all the austerity in greece with no compensation while at the same time we know that they can never repay the money. I mean now Grece is just being punished. You know the usual redemption though suffering.
MrLecam21 1 month ago
For those interested read my comments in reverse order.
Truthpolice9698 1 month ago
Apparently the Germans are the only one that understands economics in the EU.
This video has so much Keynesian bull shit in it it makes me very disappointed in Tyler that he would waste space posting it.
Truthpolice9698 1 month ago
@Truthpolice9698 Sad but true. Nonetheless, some points are right. Those bailouts just help banks, not economics or even people. Austrian school anyone?
casewolf2 1 month ago
@casewolf2 Printing money and bailing out banks/government is the same thing as taxing everyone through inflation to bail out elites. Europeans should be outraged and demand the over leveraged parties go bankrupt. The "New World Order" would die and new rulers emerge. Hopefully rulers who understand Austrian economics.
Truthpolice9698 4 weeks ago
@Truthpolice9698: So true! +1
casewolf2 4 weeks ago
The “smoothing” transfer payments is a bull shit argument as well.
It may be socially desirable but taking money from Peter to pay Paul does nothing for GDP growth, it just makes politicians feel important and justified.
Real easy to prove that government spending is a negative, and when it is removed the economy improves. Look at the US GDP 1944 to 1948, when government spending peaked out, and when it was removed. When government spending was removed the economy exploded.
Truthpolice9698 1 month ago
@Truthpolice9698 I'm not sure how that proves anything. The economy crashed in 1929. GDP growth started recovering very slowly around 1933, which just happens to coincide with a slow growth of federal spending. In 1943, GDP growth started a rapid recovery, which also happens coincide with a marked increase in federal spending. WW2 ended late in 1945, and government spending for 1946 decreased as a result of that. The economy after that was driven by returning vets able to easily
nihilistic0 1 month ago
@nihilistic0 acquire houses and pent up demand. Government spending hit a low in 1948, which coincides with a lull in GDP growth. Spending started increasing again in 1949, and again, GDP started growing as well.
Every recession has followed a sustained period of decreased spending, and increased spending during the recessions has pulled the economy out of all of them. A growing economy needs a growing money supply, which is accomplished by federal deficit spending. The end.
nihilistic0 1 month ago
@nihilistic0 Silly Keynesian. 1948, in the USA, the GDP grew 4.4% from 1947 (2005 chained dollars) according to the USDC. More recently the US government has increased spending as a percent of the GDP from 20% to 25% and the economy has stagnated and is on the verge of a European collapse because of too much debt.
For every 10% the government consumes in GDP spending the economic growth declines 0.5% to 1%. This is why European economies do not grow fast, too much government.
Truthpolice9698 4 weeks ago
@nihilistic0 The subject is way to complex for youtube bits and pieces. I like Murray Rothbard's "America's Great Depression" and What Paul Krugman Misses About 1937 Redux: Echoes By Amity Shlae on Bloomberg talks about the Depression within the Depression-1937-after FDR was in office 4 years.
After WWII the economy transitioned from war to peace and the switch from war goods to consumer goods. Free enterprise was legal again and the economy responded accordingly.
Truthpolice9698 4 weeks ago
When the economy is bad the government needs to spend LESS. Government produces nothing. Government takes resources from the productive sector of the economy and redistributes the recourses. So if government does not produce anything, and causes economic injustice and inefficiency, why on God Earth would we want more government spending in a recession?
Truthpolice9698 1 month ago
@Truthpolice9698 Why don't you go take a look at how well austerity is working in Europe? And then compare the shrinkage of the economy that they've experienced, with the (admittedly slow) growth of ours. Please inform yourself on how our monetary system actually works.
hxxp://pragcap.com/resources/understanding-modern-monetary-system
nihilistic0 1 month ago
@nihilistic0 When you have a over expansion of credit, you will ALWAYS have a contraction. You NEED the contraction to liquidate bad investments. If you keep bailing out the bad investments you will make the problem worse. You need much more austerity to liquidate the malinvestments,ens that have occurred over decades. Without it you will be in Groundhog Day hell for decades like Japan.
Truthpolice9698 4 weeks ago
The “Animal Spirits” argument is bull shit.
People are rational.
Germany is correct. Government needs to shrink. Government should NEVER be more than 25% of the GDP. The correct equation for GDP would be Y = C + I –G +lNXl not the current 1934 version which claims government is a equal contributor to the GDP.
Truthpolice9698 1 month ago
You need the interaction of savers, capital users, consumers, interest rates, demand for money, and TIME to separate the different consumption patters for a successful, bubble free economy.
Sorry to say but this video is a example of the fairy tales that are passed on to people that are simply false and lead to massive economic blunders decade after decade.
Truthpolice9698 1 month ago
This is not the same thing as the government artificial printing money to lower interest rate because if consumers continue to consume, and capital users continue to consume the same basket of resources at the same time you ALWAYS get the boom, and then the bust. This ALWAYS happens because sooner or later you run out of resources, not enough consumers, not enough capital producers, and when that day comes you get the bust. Think housing bubble.
Truthpolice9698 1 month ago
The Keynesian “Paradox of thrift” argument is bull shit.
The economy does BETTER if people save, real savings, because they forgo consumption by savings, and with REAL savings interest rate decline, signaling capital users to invest and build new production facilities, like iron ore mines, oil production, and higher level capital projects.
Truthpolice9698 1 month ago
Austerity fails if you do not liquidate the debt. Keeping the debt on the books, taxing the public to pay the debt, only prolongs the pain. The solution is complete liquidation, and shrinking governments, massive lay off of government workers, and returning to realistic levels of government not exceeding 25% of the GDP.
Truthpolice9698 1 month ago
economy explained by an irish punk, what's next? solid and trustworthy ruling explained by greek politicians?
lots of bs.
kaotical4life 1 month ago
amazing very true. USA has a true fiscal union and that works becos they are th SAME country wth same lingo and culture.
EU made out of mutiple countries. So Euro will be a fail project. I bet the periphery nations will leave Euro in the next few years when they had enough.Gemany is trying to solve problem with a ultra selfish attitude.
realvipul 1 month ago
Bravo David !!!
Athenaikos 1 month ago
Stopped watching when it started to turn into our God is better then yours.
Religion is part of the global problem and not the solution.
Black99Fox 1 month ago
what a shitty video soo much biases
Bass20HZobsession 1 month ago
@Bass20HZobsession Is that you Donie Cassidy ? hows the wig !?
northernsoul44 1 month ago
@Bass20HZobsession As if supply-side "voodoo" economics would help. Where are the jobs, IBM, Exxon and Caterpillar when they don't even have to pay taxes?`Oh they are in China you say? Hmmmm....
ShinjukuHH 1 month ago
Austerity = reduction of State Spending. Growth DOES NOT COME FROM STATE SPENDING. It comes from private investment. Private Investment is impossible if the State spends to much which implies higher taxes to service its Debt. Like it or not States have to reduce there spending.
quatroseven 1 month ago
@quatroseven Sorry, I think you're wrong. recession: Nobody buys stuff, everyone is cutting back etc.
Now the Government takes some tax revenue and does something with it, like builds a bridge or a highway. It contracts a private company, which hires people to do the job. The workers earn money to spend it at some store and the store owner has to buy more merchandise, due to higher demand, form the factory and the factory has to hire and so on and so forth....
ShinjukuHH 1 month ago
@ShinjukuHH
NO value has been created in the cycle you described because the government takes the money from the workers via tax. Then it spends it. There is no win, the workers could spend it in the first place if the government leaves it there. Also the government will spend it less wisely than the workers because the economy should serve the demand of the people not the demand a government creates.
quatroseven 1 month ago
@quatroseven And how do expect to live in a country with roads, water piped to your home, schools, hospitals, anything close to clean water and air, bridges, railways, public transit - without taxes??
MsJCBurke 1 month ago
@MsJCBurke
What does that have to do with anything ? Im sure you have roads and water. The debt isnt used for anykind of value creation.
quatroseven 3 weeks ago
@quatroseven I'm not so sure, goods have been produced, people got jobs and we're having a new road/bridge as a lasting effect.
If government didn't step up nothing would have happened. In this case the government did the investing not the private company.
And to argue abpout where the money came from is kinda silly in this case.
And in recessions the marginal propensity to consume is lowered. So someone has to step up, when dusinesses are not.
ShinjukuHH 4 weeks ago
@ShinjukuHH
No, someone has to produce instead of making debt. Value is a result of production not money printing.
quatroseven 3 weeks ago
@quatroseven And secondly, there is a whole host of things that businesses and/or capitalism in general cannot, don't want to and are not going to provide.
And I would like to challenge you to provide me something that government provides that the general public doesn't demand.
ShinjukuHH 4 weeks ago
@ShinjukuHH
The Goverment doesnt provide anything, it takes resources from the public and redistributes them to its desires. You dont even understand the state.
quatroseven 3 weeks ago
@quatroseven Let me put it this way: According to Milton Friedman, the only goal for private companies is profit.
But at times the profit motive is at odds with the desires and demands of the public. Governments don't have one and have therefore the ability to provide services in a much more equitable way. Companies wouldn't either care or provide them only under outragous conditions.
ShinjukuHH 3 weeks ago
Comment removed
lolmao500 1 month ago
Comment removed
lolmao500 1 month ago
This has been flagged as spam show
Germany and France are creating a new poor class of people,They are bankrupting our country they will then come in to buy up the our assets at knock down prices.Its call a takeover. Its time the Irish flag was taken down over Dáil Éireann the present incumbent should be ashamed maybe the People of Ireland will wake up soon.Thanks You David Mc Williams.
087mail 1 month ago
David...is there not a 3rd option...Government issue DEBT free money and completetly change our current system.
Remove the money issuing ability from the banks :)....it was Einstein by the way
carr60ick 1 month ago
Also I remember hearing him on a radio interview once musing on how soccer mom's / school run mums nowadays get out of the car. Instead of standing up and adjusting their waistband up for modesty, the tend to wear hipster jeans and tug it down to flash the top of their designer knickers! If he wasn't so damn smart he'd be Michael McIntyre
pendragony2k 1 month ago
Re-read his books (I've read 'generation game', all his columns, but not i have to admit, 'popes children') and you'll see he is nearly always right. His grasp of real people, real life, common sense and powers of observation added to economics knowledge make him the only voice of reason in all this. I remember only once disagreeing with him recommending Ireland leave the Euro, as I figured the punt would collapse, until I realised that was the whole point!
pendragony2k 1 month ago
More people need to watch this.
MrAzdaz 1 month ago
David McWilliams as a punk?????????? Johnny Thunders must be turning in his grave.
PolicyOrthodoxy 1 month ago
stupid catholic v protestant reference.Why no mention of jews as they own most of the banks.?
johnsmith4442 1 month ago
Great video,
But there are 2 misleading parts:
1. In the video forcing the workers to pay for the mistakes of the banks is called marxism for rich people -
It is ANTI-MARXISM! It is the polar opposite of marxism.
He calls it "Marx for rich people" and draws Marx as a fat cat, this seems like a deliberate effort to discredit marxism
eoin54eoin54eoin 1 month ago
2. He talks about "savings" in much the same way that we keep hearing about them in the indo or newstalk etc. They give the impression that ordinary workers (comsumers) are not spending their money and are hoarding it. Some lucky ones are able to save a bit, most people cannot afford to. The "savings" they are talking about is predominantly made up of retained earnings, profits not being invested. It would be more realistic to refer to this as an INVESTMENT STRIKE than a build up of savings.
eoin54eoin54eoin 1 month ago
Point 1 is a little related to point 2.
Marxism tells us why this investment strike (build up of savings, lack of investment etc.) is occuring.
For capitalism to function, capitalists must make profits on their investments, these profits can be viewed as a percentage of the value created by the worker being skimmed off the top by the capitalist. This cannot continue forever because the workers must also consume and pay for the products produced by the whole system.
eoin54eoin54eoin 1 month ago
Mathematically this cannot work out. If workers (as a global grouop) are only paid for 60% of the value they create, how can they pay for and consume anything close to 100%?
The explosion in credit available to workers / consumers was a temporary fix, it worked for 30 - 40 years. Now that this temporary fix has collapsed - how can capitalism survive??
eoin54eoin54eoin 1 month ago
It seems to me that the only ways capitalism could continue would be:
1. Huge debt forgivness (effectively reseting the build up of capital by half a century or so and "kicking the can down the road")
2. A disastrous war, like WW2 which would result in huge destruction of capital. (a partial reset to the build up of capital)
eoin54eoin54eoin 1 month ago
3. Continueing on the current path, which will mean the percentage of value produced paid to the workers will drop at an even faster rate, transfers of wealth from states to private institutions will continue indefinately. This path condems billions of us to grinding poverty for decades.
Out of the 3, clearly No. 1 is the lesser evil of the lot.
A more sensible solution would have to involve the abolition of capitalism!
eoin54eoin54eoin 1 month ago
Not a bad overview, eventhough the question of who creates the money and how is brought into existence is not even touched upon here. Another issue would be the concept of Free Market which we are suposed to be partaking within the EU but have the opposite, corporate personhood is the lynchpin allowing corporate control of all political parties in every country, OH dear......, the rabbithole runs very deep here, but it can be easily understood ! if you dare to question the excepted norms !
robertk1968 1 month ago
Creo que está mezclando un poco las churras con las merinas...
Por el dibujo, genial. Muy interesante. Muy entretenido. Me recordó a los de RSA
kille5000 1 month ago
Great drawing, but the economic analysis is a bit puerile. We can spend our way out of a recession caused by overspending? The banks caused the problem?
No - it's actually Government - who set interest rates artificially low. This made consumer credit cheap, (encouraging a spending binge), it made business investment cheap, (misallocating capital to risky, wealth-destroying businesses (dotcom, anyone?)), and it made saving totally unattractive (except for crazy banking schemes like CDSs).
TheSwordsmon 1 month ago
Great video except for the idiotic catholic/protestant illustration. Why would you put something so inaccurate and ridiculous in this video? The US is undeniably a protestant culture and has been forgiving lots of mortgages for over 6 years. Why is Quinn desperate to file for bankruptcy in the North instead of the Republic? This analogy is wrong economically, religiously, and culturally. It sounds very provincial. Good Catholic/Bad Protestant is such a narrow little Irish mindset.
deelcmail 1 month ago
Nice upload thanks
Fabbydabbydoozy 1 month ago
Protect the Irish people, we need to stop the exploitation of the French and Germans
TheIrishBuff 1 month ago
Some should show this to enda..
lukeummm 1 month ago
Ok cogent argument but until this "stand up" happens way down the road isn't Germany able to export merrily with a guaranteed weak €, low unemployment though ageing population and low labour costs from migrant (periphery) workers? Sarkozy baby needs to get re-elected so no worries there, English are out of the game so really only David Williams left. Banking on the Germans to win this one! David keep them coming...........
liocarcinus 1 month ago
biggest whiteboard i've ever seen
Pendor42 1 month ago
I have little faith in the people to stand up and say anything. Even if they do they will be ignored. "Each act, each occasion, is worse than the last, but only a little worse. You wait for the next and the next. You wait for one great shocking occasion, thinking that others, when such a shock comes, will join with you in resisting somehow." - Milton Mayer - They Thought They Were Free.
draoi99 1 month ago
Fair play David. Well said. All this fiscal union or whatever ya wanna call it is only protecting French and German banks while our politicians...twits don't even discuss a debt writedown, but sign the dotted line. I don't remember voting for these twits that can simply sign a fiscal union, and force even greater austerity on Irish people who had absolutely nothing to do with this EU/IMF bailout. Jokers. "Referendum" is a naughty little word in Europe now! We are on a course to be railroaded!!
Emmetmu 1 month ago 4
check out Punk Economics on facebook ;)
marycb5 1 month ago
Very interesting video, I,m defiantly subscribing and hoping for more of this, its fantastic! =D
Irishkeyblade 1 month ago
I was put off by the catholic-protestant analogy. I am not religious, though I was raised protestant, and I can assure you that protestants believe as much in the central theme of Christian forgiveness as catholics - they main difference is that they believe that forgiveness comes from Christ - not from celibate men in robes. If one wants to use that analogy then one must consider where Ireland might be today had it adopted a protestant-like work ethic? Other than that - good job David!
jodasteyn 1 month ago
Was nobody else put off by the pro-catholic anti-protestant irrelevant remarks in that?
grahamatter 1 month ago
makes sense to me
winsac 1 month ago
Punkenomics?
ascendedskater25 1 month ago