Inflation, deflation, subprime mortgage crisis, & banks

On clarification: I shouldn't have said ALL the interest goes to a bank. Part generally goes to either the Fed or depositor of an interest bearing account. The bank only skims the difference in the interest rates.

My views on the debate about inflation vs. deflation and the subprime mortgage crisis.

keywords: bear stearns banking parasitic foreclosure home house fed federal reserve central bank goldman sachs repo collapse dollar yen us japan recession m3 gdp gnp crisis inflation

Category:

Education

Tags:

• inflation
• crisis
• foreclosure
• home
• loan
• fed
• reserve
• central
• bank
• m3
• gdp
• repo
• dollar
• collapse
• yen
• japan
• us
• goldman
• sachs

[moniequa]

Lorax,

When will our economy recover from inflationary fest? How long should one hold on to gold? I hope you can help.

[lorax2013]

My opinion is that high inflation will continue for years. I think it won't begin to change until the prime rate is above 8%. At that point you should hopefully see M3 growth hit an inflection point rather than rise exponentially as it currently is. There are a lot of other factors however, and this is really only an issue for speculators. As always, for normal people trying to retain the value of savings, I recommend buying and holding anything of value and not trying to predict the markets.

[rseveran]

Big problem is the loss of confidence worldwide in the USD. Foreign countries are getting tired of supporting the dollar. This is leading to higher and higher prices on imported goods. Now if we didn't import so much stuff (i.e. oil), that might not be a big deal. But we do. Inflationary recession at this rate.

Yes isn't it convenient that they stopped reporting M3. Who do they think they are kidding?

[lorax2013]

I agree, IMO that is the biggest inflationary factor of all right now.

[mimiwewe01]

I have just subscribe(12/9/08) to your videos, great great content. Keep up,you're truly a gifted being.

Are you a motivational speaker? You definitely have me motivated.

[JRMCNEA]

@lorax2013 why is deflation thought to be so destructive? when it is the correction to the actual production market after, hidden inflation is injected into it using the tool of fractional reserve Banking. Our ability to produce goods and services are inflated by paying in your example twice as much as the good is worth. Some times i feel like middle men are over paid and are draining out of our system more the the actual system is made to produce... why do we do this?...

[spectrum0590]

Wow! all about finance are all available in this video. It will make people understand about finance industry including real estate.

[NAUresistance]

Good video, very informative and timely.

Just wondering if you can list maybe 4 or 5 things of value that we could be buying instead..

Thanks!

[ThereAreNoSides]

As ever, very educational, telling us what officialdom would never tell us, and to some extent what the education system would never teach us.

Keep making this inspired content man!

Much love

[loraxpro]

Awesome!

[MusicMyLife2112]

Great video, I subbed.

[Brainman94]

So does property in Japan look like a good investment at the moment?

[anisiaram9]

the problem isn't in the system, the problem is with the people who bought more than they can afford from the banks who knew they couldn't afford it.

[Zorrachus]

True, you can't take it with you, but put it in the bank where it should be. Put it in a tax free savings account. I put 5000 dollars in buying gold and I more than doubled it in 6 months.