CURRENCY COLLAPSE Why The Government Won't Act

http://INFLATIONHELL.COM

Follow-up to the last one, more political and less economic.


Rough Transcript
[cycle through lbt faces]In my last video, I outlined why it is that so many libertarian-minded people believe the dollar is headed towards collapse.

If you're new to this subject, it's natural to assume that we're all exaggerating, and are probably overstating the problem in order to scare people for our own personal gain--whether it be for votes [rp], money [ps], or youtube popularity [me].

[thumbs up]This level of cynicism is perfectly healthy. In fact, anytime anybody is [al gore] trying to convince you that the sky is falling, it's probably a good idea to assume that they're full of it, because most of the time, you'd be correct.

[7mike moore] There is money to be made and [8george bush] power to be gained out of fear. Anyone who believes everything they're spoon-fed by a person or political party [9picture of idiots1] is probably an idiot.[10picture of idiots2] Regardless of who your idles might be, they're human after all, so always keep that in mind.

[11clear]That said, there are plenty of reasons to believe we're on the path towards a collapse in the dollar. Most of them are historical.

[12 stop collapse]First of all, there is only one way to avoid a collapse in our currency, and that's to stop printing money. [13 stop collapse2]This sounds simple enough, but as I explained in my last video, to do this you must balance the budget. There are only 2 things you can do to balance the budget. [14 stop collapse3] You either have to increase taxes, reduce government spending, or some combination of both.

[15 deficit]If you know your history, you know that only time our budget has been balanced within the past 40 years was a brief period that occurred a decade ago unde r president Clinton. Many believe that even this tiny blip of fiscal sanity was actually an accident.

[erase 16,17]

[18 - spending] As you can see from this graph, never in his 8 years of office did clinton EVER reduce government spending. The reason the budget became balanced was in a small part due to an increase in individual income taxes, but mostly due to an UNEXPECTED increase in tax revenues due to the boom and bubble in our economy occurring at the time.

[19 stop collapse3]A boom like that of the late 1990's is extremely unlikely to occur within the next few decades. In addition, raising taxes in the foreseeable future would have a devastating effect on the our already beleaguered economy. This would lead, paradoxically to even less revenue. [20 stop collapse3 - no taxes]Therefore, the only option that remains is to dramatically reduce government spending and to pay down the national debt. This is where the trouble begins.

[21 spending]Government spending has risen, in real terms, almost every year for the past 60 years. Obama has promised to cut the 2010 budget from its all-time high in 2009,[22 New Deficit] but if you exclude 2009, his budget projection still requires a deficit three times as big as the record set by President Bush.

[23 Budget 1]Obviously the bailouts were to blame for most of the spending increases in 2009, but when you look at the 2008 budget, you can clearly see that our problems will not end when the bailouts do. The budget is still far too large and the debt grows larger every day. Many believe that simply pulling out of Iraq would solve the budget shortfall. The problem is that the numbers just don't add up.

[24 Budget 2]Even if you took out Iraq spending, the deficit still remains.

[25 - New Revenue] On top of all that, the tax revenue for 2009 going forward is going to be much lower. This would require an even GREATER reduction in spending to balance the budget.[26 - New Debt] When you factor in the bailouts, things get even worse. Even by extremely conservative estimates, like this one provided by the government itself, our debt will overtake our GDP in less than 2 decades.

[26 Question mark] So what do YOU think? Does it look like we're doing anything about our currency situation? Based on the horrible track record of our politicians, is there anything out there to suggest we're taking care of this? Would any of our politicians risk losing an election in a futile attempt to persuade congress to save our currency? What if the necessary spending cuts are in medicare or social security? Coming out in favor of cutting either of those programs is practically a death sentence to politician's career.

[1 lbt]With all that in mind, do the warnings of hyperinflation and collapse in the dollar seem all that far-fetched? Do you really believe the republicans and democrats in power are going to recognize and do what is necessary?

Category:

News & Politics

Tags:

• gold
• standard
• ron
• paul
• peter
• schiff
• jim
• rogers
• inflation
• currency
• collapse
• printing
• money
• federal
• reserve
• alan
• greenspan

[i10azns]

ok... I'm still trying to wrap my head around Keynesian economics. I understand how the value of the dollar can fall if there is more of it to go around. What I don't get is why we still have inflation if according to the M3 we lost $300 million since 2009. Unless, of course, other things where contributing to it, with more influence than Government Spending.

[latewire]

@i10azns It depends on if you define inflation as the expansion of money and credit or the increase in a "consumer price index" (CPI) of sorts.

The problem is that a lot of these metrics are skewed. We know the value of our money is falling because we see food, energy, and commodity prices go up, but the government's CPI rejects those metrics automatically. Credit, of course, has been retracting in a lot of sectors, but THE FED has been expanding it in others which distorts the market

[gunthaarz]

hmm

[latewire]

lol I think your computer exploded.

[sang3Eta]

@jannikmt You are victim of government propaganda. Learn about the science of the "Carbon Cycle". Carbon Dioxide is the air you breath out and required by plants and trees to grow. A CO2 tax is therefor a tax on breathing. ;D

[jannikmt]

hey global warming realy is hapening... yes thos few may be a bit extreme....

[kjeldvontijn]

But what is money? a worthless piece of paper?

think of it! what is a laptop without power?!

[bertly71]

The most accurate account of the boom of the late 90's in relation to taxation and government spending that I have heard. Most excellent all around video. Mirrors my thoughts exactly.

[inkey2]

QUESTION: if we were to go back on a gold and silver backed currency how would that be possible. Wouldn't the price of gold and silver have to be pegged "world wide" to the same price? If not......people from other countries could buy up or gold and sell it at a profit. How would that work...educate me please

[88888FORCE]

CURRENCY COLLAPSE Why The Government Won't Act

Oct-28-2010 GREAT VIDEO -INSIGHT INTO ECONOMIC DYNAMICS

GOVERNMENT MORTGAGE RELIEF

1-800-270-2928

[Deutsche22]

We need Austrian Economics and we're not going to get it. The corrupt Federal Reserve Bank will continue to own the world and collapse it with the click of a button. Violent revolution is the only way to change the course.

[quit2day]

i love this guy and the way he preaches.

Yo should go listen to myspacesecrets here on youtube he was one of the first to predict TSHTF. he is awesome.

[Rico8458]

because we are the point of no return. it is too late now, they have printed too much money, have too huge a debt, cannot pay off the interest on the debt, and our GDP now equals our debts, etc. only if they go on a silver standard, stop printing money, stop spending, and stop taxing can this nation make a come back.

[johnywinslow]

thank you for the advice my friend, However I have given up on my fellow americans, They are screwed and would rather live in denile. I talk to people about silver and gold, stock market and politicans. The looks and answers are the same. IM CRAZY! Then there is the issue of politics, the vast majority of americans still play the red vs blue game never realizing that its a game alright, a game the ultra rich play and we the people are the pawns. They just do not want to hear it!