CURRENCY COLLAPSE: Why The Government Won't Act

This is part 2
Part1 : http://www.youtube.com/watch?v=wSLGWCsveSE

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

[ForTehNguyen]

food, water, gas, gold, silver, guns, ammo, get it and lots of it

[redmolotail]

Good. The Chinese know this game has to end sometime. Well, the whole world knows it - and Americans will be the only ones surprised to find out that their ATM card doesn't work anymore and the grocery stores are empty.

Roll up your sleeves for the A/H1N1 vaccine (poison) kids! We're going to summer camp at Camp FEMA!

[wardoc22]

funny how anything they do will have a bad impact.

solution? cut everything in half and screw the people that gets unemployed. Eventually, the unemployed will die off and everything will be normal again.

in the short term, things will get worse but in the long term things will get better.

it might sound immoral but its the only way to get out of this deep shit as i can see

[lilbromarky1]

end game is approaching as of me posting this. I can feel it in my stomach

[SpartanXLVIII]

Looks like the country is gonna be pretty much f***ed in the next few decades.

I don't know what everyone else is gonna do, but I'm either heading to Canada or the UK.

[luciferiexcelsil]

the thing they would do, is what they've done in other counties with this problem... add zeros to the bill.... instead of 1 dollar, you'd get 10 dollars, and the further the problem is, it will go to 100 dollars, and 1000 dollars.

[claytonlisa]

Awesome vid... don't know why I didn't see this a long time ago.

[latewire]

> cut government spending, unemployment would shoot

In the short term, yes.

[kja5]

If they severely cut government spending, unemployment would shoot up 5-10%. And that would make our consumption economy even worse!

What a wonderful predicament we are in:

1. Solution A results in: Economic collapse

2. Solution B results in: Economic collapse

3. Solution C results in: Economic collapse

[macdogq]

This is why we need to listen to them and observe. remember this; both political parties are guilty of this financial crises.

[jbperez808]

haha the pics+captions are funny