Hyperinflation is Already Here - You Just Haven't Realised It Yet | Economics Explained 

Why bother hiring all these expensive economist experts when little Timmy has all the answers

*No 1: Don't Only Hope On Government's Responds On security Matter's And Economy growth,* *No 2: As An Individual You Should Be Safeguarded And Also Look For Different Self Business And Trade Not Only Waiting on Betterment of Stock market activities,* *No 3: Most Important Always Save The Little You Can And Think Of What To Do With It When It Become Good For Capital,* *Because Government Have Failed Us In Aspect Of Security, Economics Activities And Other Trading Systems.*

this 7 year old might be the next Boss Baby... in fact, he won’t just be boss, he’ll be Emperor! cuz he’s older than a baby. that’s how it works

I mean if you want to be specific, teeechnically speaking it's the central bank that's printing the money (i.e. a separate and divine entity from the government)

Currently the rich stay rich by spending like the poor and investing while the poor stay poor by spending like the rich yet not investing like the rich

@Shri Shiva Dhasen you guys have no idea what hyperinflation is like. This is click bait.

@Shri Shiva Dhasen USA will always be numbah 1

Rare when honesty Trump's humor.

Looks like venezuela trying to beat argentina's high score then

Because Argentina had an exchange rate inflation. A very different thing.

Except the doctor now wants two chickens and 2 dozen eggs instead of one chicken and 1 dozen eggs as payment!

@@sexysilversurfer why, is he more hungry than yesterday

@@sexysilversurfer I think that's kinda missing the point. The worth of a currency fluctuates owing to circulation and other complicated economic matters, but a chicken will always be a chicken, edible and able to produce eggs.

​@@MultiKommandant I think you are missing the point lol, it's all about supply and demand. If a village has 2 hens and 10 cows, it takes 2 eggs to buy 2 cheese. If the village breeds 100 chickens, but 5 cows die, then it takes 50 eggs to buy 1 cheese. There really isn't much difference between currency and chickens when it comes to exchange rates. If the village has 1,000 chickens and 10 people, everyone is full and chickens/eggs have no value.

Ah, fair enough. Sorry for misunderstanding, and thanks for the prompt correction.

Because they are all tied to the dollar which is why half of the countries in the world are starting to dump the dollar as a tool of barter.They are starting to position themselves for the crash.

@@Wesley3129 as well as the states sanctioning anyone who even farts slightly too loud, essentially pushing countries away from it and digging its own grave

@@Wesley3129 this really is a perceptive assumption you got there

Do not forget that all western government are "cashing in" on the industry (Big Pharma!) which has no legal responsibility toward their users / customers and are immune from any legal prosecution by states laws! Both US and entire EU zone has this! Big Pharma industry WILL CRASH because no major industry can operate with NO RESPONSIBILITY (LEGAL or not) toward their customers / users! Covid-19 is health catastrophe in the making! "Poisoning" the people for the sake of money alone!

Yes this!! I agree completely. This entire money printing scare is not comparable to other hyperinflation events. The entire world had to print money to shore up their economies....because the entire world froze their economies during the pandemic. 👀 this should drastically offset any real lasting inflation and normalize over time. I'm grossly speculating but a one to one comparison to prior events is also wreckless.

shopping is consumption bro. Maybe the items she s buying have low depreciation tho.

I'd suggest you wife to rack up on some bitcoin

I’ll have to remember this one.

Smart woman 👩

Interesting. I should've made the decision to buy a graphics card 6 months ago as I'd planned instead of waiting to my own detriment.

@@scratchsoft2347 now with the US dollar so restricted and artificially still its not even worth to have them, you are losing every month to inflation despite being dollarized. you have to look for some kind of investment with at least similar returns to inflation rates wich is extremly risky and difficult considering inflation is about 4% monthly. por que hablaba en ingles el vago jajaja

And then people vote for the same policies that created the inflation in the first place

Oh, you think economic growth is your ally. But you merely adopted the capitalism; I was born in it, molded by it. I didn't see the growth until I was already a independent nation, by then it was nothing to me but BLINDING! The money betray you, because it belong to me.

Yeah I got that reference

10/10 Banepost

Indices frequently go from a bear market to a bull market when the news is at its worst and investor confidence is at its lowest. This demonstrates how quickly the direction of the market may alter.

You need a Financial consultant to avoid being taken advantage of. They offer personalized advice to individuals based on their risk tolerance and investment capital. They do have a great reputation and some do have a strong track record to go along.

@@spacecadet6 I'm actually interested in this idea of investing through an analyst. Sounds like the most sensible thing to do in the market right now. Could you give me a pointer to who you work with, please?

CAMILLE ALICIA GARCIA maintains an online presence. Just make a simple search for her name online.

I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. I set up an appointment to use her services.

There's a reason why usury used to be a capital offense. Making money without producing something of value is fraud.

@@Razaiel nahh, it was anti-semitism coupled with wealth envy. They soon lifted the ban on Usury during the Renaissance remember!

wealth envy is a considerable force

Now that your currency is the US$, it will happen again....

@@stevexracer4309 the interest doesnt have to be high, it just has to be higher than inflation. if inflation is 30% (including wage inflation), then that 20% interest payment is actually generating money, and you get to reap the benefit.

Oct 2021 - We Have Always Been Hyperinflating

2022 - how hyperinflation is hyperinflating the hyperinflation crisis

A scenario where everyone who goes out there and buy real estate out of fomo is right? Hmmm I dont think so... 80 / 20 rule baby

Why is there no hyperinflation yet?

Is the third Arc about a guy getting revenge because he failed art school?

Why hasn't this gem been pinned?!

😂

If anything goes bad just change currency again -brazilian government, i guess

É rir para não chorar kkkkkkk

Quick question for you if you don't mind. How do people in your country save up money, knowing it will be gone in a few years? Do they just rely on pensions? Are pensions rising with inflation?

This analogy holds for short term money printing or hyperinflation, no so much for long term modest inflation where value is created, where you do get more real hours in a day

@@JL-qf3hq Problem there is that this is very soft ... if you got more hours a day the price of an hour would go down, so it's hard to say to what extend you have actual inflation and an increase in production. If something is very soft it's very easy to do bad things and get away with it exactly because it's hard to quantify, at least for the normal person.

​@@thrall1342 the hours stayed the same in the original example while minutes doubled. however, assuming you meant the price of a minute would go down, youre assuming that the day is fixed in length. in summer, this analogy would actually be useful, since it isnt fixed, so there is actually a name for it: "daylight savings." unfortunately, in the real world, this time does need to be paid back in the winter. however, in the economy, you can delay this "winter" by increasing the value of each "minute" by actually getting more things done per day. if you can do this sustainably, you can once again increase the amount of minutes in a day and continuously get more things done as efficiency improves.

however, delaying these "winters" more will only make them harsher. fortunately you can make "winters" less extreme by dragging them out over longer periods of time or by reducing the negative change in price of the minutes by encouraging people to use them more.

Private banks create all money (not government). Proofs at bank LIES d0t 0rg

MATT RUSSELL: Sorry to be nosy, but what city do you live in and what line of work are you in? I'm only asking because of the direct effects of your location on cost of living, especially real estate.

Utter nonsense. The cost of most durable goods have gone down, often massively (think anything involving a computer or screen).

@@Yaotzin86 : You might want to re-read Matt Russell's original post that you are commenting on. While some durable goods, especially in the tech sector, have dropped in price, He specifically mentioned the costs of RENT and AUTOMOBILES, both of which have risen measurably in the past few years. It takes a lot of price drops in other areas to offset these increases.

@@randyhusband8542 Other than current prices caused by COVID supply issues (and automaker stupidity), real prices of automobiles are the same as they were over 20 years ago. Rent is not a durable good so not relevant to my comment. Obviously things outside of durable goods have increased, especially rent, healthcare, education, childcare etc. Above all, I was addressing the claim that "the price of everything has been going up over time". The price of the vast majority of things is flat or down. A few key things are way up, which distorts perceptions.

@@Yaotzin86 In what fantasy world are the "real" price of automobiles the same as 20 years ago? Also your bringing up durable goods was not relevant to HIS post which spoke of two specific categories (rent and automobiles). Anyway, you can believe whatever you want. It's a free country.

And they do not disappoint!

Did you call my name!?!

My country had a 500k bill. Obviously worthless.

Seems like the US can print as much money as it wants, with no consequences whatsoever, because the whole world use dollars. So even if Biden prints 5T next month, he can do it and the price of things will remain the same. As long as people around the world believe/use their imagination/have faith that the dollar is good. So the only thing preventing the economic collapse of the USA is the imagination of people worldwide that the dollar "has a lot of value and is easier to use".

Yes, experts is rather apt. Most of Us balance a household budget and know simple maths. If We live on the never never then eventually We lose Our house if income no longer services debt. Then We end up bankrupt. Maybe jail if We deceive the system. Of course it's okay when govt financial planners plunge it's masters into unpayable debt? Of course My error in stating this is that governments are the servants. Its obvious now that the tail has been wagging the bluddy Dog ! Time to stand for something or fall for anything they tell Us. All the best

Allright ya’ hoser back bacon bro... That was a good one! A real LOL moment. Thank you. Praise God you don’t live on an island with 6 ft tall giant rats that will punch you out and 79 varieties of giant venomous spiders, like cheeky ozzy guy making the video. Although ozzy chicks are pretty damned awesome. It all evens out , I suppose.

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When China realizes that the maple money can be washed, the world order will change.

@Martin It was really weird when that Maple Money was worth more than the all-powerful dollar 2011 :)

gold maple leaf coins still seam quite popular.

I see that you have also fallen for the Blackrock fake news.

@Andrew Warther No one is taking anything lol. Its also a great investment assets always are when the government is pissing capital.

They want real world assets, desperately, and not assets from industrial supply chains that have been diminishing across the Western world.

@@toddpick8007 yeah, for some people, until the economy goes off the rails.

@@EzioAuditoreDaFirenze99 The government literally backs housing lol.

I have trillion dollars in-game money.

I might buy myself one of those just so i can go round telling people i'm a billionaire. .... come to think of it, wish I'd known this when i was single.

Imagine in 30 years zimbabwe money gains value and now you have a considerable amount of money

Peasant. I have 100 trillion.

My 100 trillion dollar bill is in my safe, next to my 50 trillion and 10 trillion dollar bills. I agree with Mike Mash, billionaires are peasants.

"If they're too big to fail, they're too big." - Allan H. Meltzer

They should collapse if they are too big too fail, subsidizing those industries without getting shares in return is basically communism

Ye "too big to fail" is a bit misleading, it should be called "systemically relevant" or maybe "system stabilizing"

@@DerTotuo so big, we all die if they die. For some reason this provides me with no comfort

@@mookosh exactly,have you seen the hunger games?

You noticed that too? Hahaha 😂

timestamp? xd

@@ashraile 11:32

Maybe, and this is a crazy idea, workers should be paid more.

We are a country of paradoxes now. There is an alternative to hyperinflation and that we are in a massive bubble where demand is driving future demand, which may be worse. The investments could explain everything and, unlike the past, safe and sound investments don't really exist in the market now. Food costs could be driven by the commodity market. As for the money being printed, what alternatives exist? And regarding the workers, why would a person want to go to work, possibly get sick (the pandemic isn't over and the disease variants are concerning) for minimum wage. I can see why people are unwilling to take these jobs. Even if the result is a slight loss, it may still be better than the reductions from the cost of working (transportation, dress, etc.)

@@SeanMintus Maybe, and this is a crazy idea, the government shouldn't print money and devalue your savings to pay people not to work.

@@SeanMintus Maybe if the government ran things right, you wouldn't NEED to be paid more.... You're just running yourself in a cycle of inflation with your thinking.

@@SeanMintus Except you have to beat Government unemployment benefits by ALOT as someone will not return to work just to make 10 or 20 percent more. Think about it, you are making more money not to work. Why go back to job when you can go fishing all day?

That's the spirit.

That’s the spirit.

@@EconomicsExplained I can’t wait to be a trillionaire

Reminds me of a gameshow we had in the Netherlands. The participant starts of as a millionaire (in Zimbabwean dollar or something like that), but answering questions correctly would then change the currency (ending in Euro)

@@Thomashisacount Sounds way too intelligent for American TV. Cancelled. 😋

he probably got hired by the government

Hes called a democrat and that's called welfare

@@22fordfx49 A universal basic income is different than a Social security supplemental income that is tied to disablity or special need. also aren't corporate jobs a form of private welfare? unless your telling me that jeremy the CFO's stepson really can change the world. if that's the case i have a special oil to sell to you.

He went on to get a job at the Fed lol

@@ethanstump Corporate jobs are not considered welfare. If you want to fight this, fight it with your wallet. Instead of walmart, shop at ma and pa shops. As for supplemental income, socialism has never worked because in the end you always run out of other peoples money and can only print money which produces inflation

fr, he caught the nail on the head, prices have increased on average about 40% on average i think and gas is 6$ lol

@@metzli_moon inflation is currently marked at something like 8.5%, not 40%. It's just that it is a disproportionate weighting. Some things are hit much harder, some things are unaffected. If EVERYTHING was 40% more money now than it was when this video came out? Society would have collapsed. The middle class would be completely crushed in its entirety. Not meme levels "They already are lol" - they would all be literally homeless or literally starving. Correct use of the term literally.

*Warren Buffett wants to know your location*

Investing 101

Nobel of economy for him now

A great investment, i'm glad i found another internet explorer user

Investing in North Korea and Venezuela is better tho. Bro you are missing some good bucks.

Underrated comment!

It finally makes sense now, Biggie was talking about monetary policy 😂

@@nilnil7325 maybe he was assassinated by the deep state.

🤣🤣🤣 I'm dead bro

@@BB-oz8oc No, he is.

Just fyi, i saw another economist criticise his marble example and say that generally interest rates would go way up during a period of high inflation and even in the literal example he gave, Germany's banks just refinanced all the loans in the new currency after the hyperinflation situation

Not brilliant. Get other opinions: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-UkClrikc1bk.html

@Matthew Gray No I don’t, and I didn’t at the time, you haven’t been in hyperinflation it seems the price of the USD against the VEF could go 10x in the black market in a second, that’s what happened, of course you sell on the black market because the banks in Venezuela weren’t allowed handle foreign currencies.

@@TheFitConnection I saw this right after this video, and things in hyperinflation plays way different than books and economists say and explain, when hyperinflation happens is a failed state, everything stops working as it supposed to be and you have to turn into irregular markets where the rules are completely different, for me it played as this guy explained.

Finally my dream of becoming a millionaire will finally come true.

So will your medical school degree! Wheeeeee! 😁

Actually yes.

in aus they index our govt student debt at the inflation rate lol. yay.

Worthless as in, 10x what it is now lol

Dude wood prices are INSANE

@@BarnyWaterg8 Might as well start to grow bamboos yourself and use it as wood. Grows fast and is strong material.

My farm burned down, can confirm that construction materials are three-four times as expensive now than when we built the stable which burned down 5 years ago

Right now everyone is renovating so there is a huge demand spike, it will likely settle down after people go back to work.

Sheet of plywood only a few years ago was $30 or $40 dollars two years ago. $120 today. Crazy. Food is just as bad if you bothered to keep track.

Press F for Fresh Maple Credits

@@alezacrespublik6655 Canadian rupees

He..He isn't wrong tho And +1 love my Canadian Rupees

@Karl Marx Most of the world's physical bank notes are made by DeLaRue in Debden, Essex just outside of London in England so get your facts right you pesky communist bandit.

Canadian peso is still my favourite label for our wonderful currency

Thats pretty interesting thanks!

Wow! I didn't know any of this. No wonder Aryton Senna was so pissed at the Brazilian Government back then.

Planet Money did a great episode on this topic. Fascinating story.

@@intellectualmagician1247 Can you get me a link? Would love to see it.

Not So Fun Fact Everything you just spoke about up until the creation or URVs is happening or has happened very recently in Zimbabwe. Nice to know there is still a way out for Zimbabwe albeit a hard one especially for the very wary Zimbabwean populus

At least until the money printers can't afford to pay for their own salaries.

@@TheSkyGuy77 - No. It's simple math. Using dollars that are worth less to pay back a loan that has more purchasing power but the same dollar amount is a net gain.

At least buy something with inherent value lol. Gold is only worth what people are willing to pay for it and in an economic crisis, that's not very much.

@@MinecraftMasterNo1 nothing has inherent value. Gold has been a stable currency for over 2000 years: there's a more or less fixed quantity, it's cool and shiny, easy to verify, and it's used in electrical components. What would be a better investment?

@@mrknarf4438 Exactly.

@@mrknarf4438 Can't eat gold for breakfast. Can't ride on gold for transport. Can't live inside a gold coin. If we really expect some kind of societal collapse, currency is the first thing to go. Value is based on functionality alone.

@@mrknarf4438 food, water, and shelter all have inherent value, and are much more valuable than any form of currency in a true disaster. They are all things that everybody needs to live, and will trade nearly anything for. Unless technology remains unaffected by an economic collapse, or some semblance of an economy Still Remains, basically all currency becomes worthless. You'd be better off investing in MREs, water purifying equipment, and other similar products. In the hierarchy of needs, you need to secure the essentials of Life Before You Secure shiny things

On the plus side, when McDonald's pays $100,000/yr then your student debt will be easy to pay off!

college is not really a good invest in this regard, during hyperinflation the industries which require high skill are the ones usually stop working (because thats where people's start saving money on). Real estate (especially farmlands), foreign, more stable currencies, everyday neccesities, assets for production (for example farming equipment) and raw materials are the ones which keep their value the most. Or at least these assets were the ones during the biggest recorded hyperinflation, which happened in my country, Hungary after WW2. Well except the production equipments, because those ones are got stollen by the soviets and romanian occupier under "war reparation". So better buy a farmland in the Midwest or a coal mine which was closed down for some reason (or if you are not the one wanting to invest just put all the moneyyou borrowed into Swiss Frank, thats almost like gold, but since its a currency you can quickly turn into any other currency and buy stuff with it - while with gold, lets just say, in a hyperinflation not that many people actually want your gold right away...).

@@attilaedem101 Solution -> go to medschool, there is always sick people.

Well if there’s hyper inflation you’ll be able to pay off your debt very quickly imagine it halving in value every 15 hours.

Inflation will reduce your debt

BRRRRRRRR

Indeed it has

Sad

I was just going to remark the same. Very prescient.

Except that no country is experiencing anything even remotely like "hyperinflation". Further, the elevated inflation there is, is due to real world supply constraints. So, at this point, this video is 'wrong' not 'prescient'

Thanks for the warning lol I was just about to watch it before I went to sleep. I’ll waiting until the morning lol 😂

+1π6 π2 π3π 4π7 π1 π 9π 4π3π 4

buy silver protect yourself from inflation.

I got a few of those. That was real hyper inflation.

@@thetruthalwaysscary - good for a loaf of bread.

I was a kid in 1990s in Ukraine. At first local currency (a coupon back then) was counted in singles of coupones, then thousands and then in millions. Evey one was a millioner back then.

Tanar ur! :D

Then it has done its job haha!

You should be

I didn't expect you here

@@jjnc6761 Same lol

Bruh, You're everywere!

The scary part about that reality is, when people refuse to believe something will happen, say "it cant happen", that's when you know it will happen.

@@COD4JESSE so true. I’ve been hearing that inflation will continue and then deflation will occur. Either way, it’s not looking good at all. Take care of yourself and your loved ones. If people are too dumb to see what’s happening, that’s on them.

It interferes with their bubble that they live in to protect themselves from reality.I have the same thing happen to me.When the bad times start they can figure it out for themselves.They had their chance to wake up but chose their safe false reality that will soon become their coffin.You did your part to try to open their eyes.Just move on and keep preparing so you can take care of you and yours.

sometimes ignorance is bliss but not in this case

OF capital = only fans capital, which makes sense, best way to make a good return is from making an OF = onlyfans

@@user-tl1yz5vf2e No thank you, I would not like to be scammed.

😭😭😭😭😭

The wants us to pull a George Soros lol

Yup! Yet we have the IRS the government agency motto should be "We got what it takes to take what you got." Then the private institution known as the federal reserve. Both of their histories have shown they can steal from you either by force having government agents come to your door with the authority of the state and steal by the hidden tax known as inflation.

Goodbye future home,

It’s the least worse economic system

@Deo India tried that for 44 years

@Deo yeah, worked well in eastern bloc for example

2030.. it’s over hyperinflation is here

Thats the whole point of the video

It worked fine during the new deal.

@@kerriekupar6466 the new deal was a disaster. We temporarily stimulated some infrastructure growth but we were rapidly refalling into recession, than a continent crisis came along and destroyed everyone else's economies and fixed the problem

@@boblaryson3621 The New deal did help alleviate people's suffering that's the point. But it wasn't enough, ironic that a even bigger Govt spending during WW2 solved it. In Contrast with Reagan's policy of tax cuts and deregulations which started all the mess right now.

@@kerriekupar6466 it really didn’t work out

Unless communism takes over and you will look like a delicious dinner 😋

For more information +1=7=1=4=4=2=6=9=7=0=0.

Sounds ridiculous but I was thinking the same thinf

Stock up now 😂

www.independent.co.uk/news/world/americas/venezuela-weight-loss-average-19lb-pounds-food-shortages-economic-crisis-a7595081.html Yep.

But if I can print out why it need to be loaned and paid back!

Go to college, get gender studies or similar degrees then protest why you cant pay your debts.

@@blankblank1949 why not just print it?

He got paid by Skill Share.

Right?? He's taught youtube (in the toality of his content) *exactly* what two years of econ at a decent school did for me... and he even goes out of his way to say he's amateur!! The best kind of human.

It’s a figure of speech. Like imagine a massive earthquake generates a Tsunami off a small pacific island. In the time between the earthquake and the arrival of the tidal wave, you could say that the island “has already been demolished, you just don’t know it yet.” The point being that the the causal event has happened, therefore the effects are inevitable even though they haven’t been realized yet.

@@tylerbrown4483 It's click bait.

It's already happening food cost in my area already up 20%

@@8Maduce50 where are u from?

Are physical silver and gold of value in Argentina?

​@@MG-ul4kc Yes, but as of this moment buying usd is more common, or things that have a practical use and then you abuse the credit card dues. But even then not many can actually have the luxury of "saving" or protecting themselves from inflation bc salaries are not enough to meet the basic needs. Poverty rate as of march 2021 is at 42%

@@v44n7 new England

P A N I K 😁

Nah, his videos are usually good but this one is kind of a joke. Even the chart is wrong. 8 major issues with what he is saying: 1. Don't use the MS1 chart to illustrate money printing when they changed the definition to include liquid deposits in March 2020. It completely skews the picture and is irresponsible data presentation. The fact that you say 1/3rd is newly printed while showing 2/3rds or 3/4th on the chart makes it seem like an intentional misrepresentation. (See the definition below the chart: fred.stlouisfed.org/series/M1SL) 2. The S&P has increased in value due to higher future earning expectations from make up spending, technological skewing (big tech firms in the S&P have benefitted (Amazon, Apple, etc.) while small manufacturing and hospitality firms outside the S&P 500 have been hit hardest), the discount rate significantly falling and raising the value for future firm make up spending earnings, and non-price sensitive retail investor savings increasing equity inflows. 3. Analyzing the S&P 500 as indicating high inflation expectations seems pointless when there is the TIPS (Treasury inflation protected securities) market which actually prices in inflation expectations of market participants. They are still below 2.5%, far from hyper inflation. 4. CPI hasn't significantly increased despite raw material price increases as (1.) firms are indicating they are limiting price pass through to consumers to prevent an impression of price gouging (see CFO survey), and (2.) certain items like oil and services have been heavily discounted during the pandemic. 5. The CPI food category has increased about 5 to 6% with some categories up 9%, and new housing build costs have notably increased due to raw material increases. Its not like we haven't seen inflation. 6. Unlike the hyper inflation examples noted, the U.S. is not printing "cash" and transferring all of it to individuals purchasing goods. Instead it is increasing bank reserves through asset purchases, which can be monetized via the spending of firms borrowing or purchases of newly issued government debt. So far this monetization has failed to materialize as high savings and capital regulations limit banks ability to lend out. As such, the FED can easily reduce these levels via open market operations if inflation picks up above 3% because there will not be a need to further finance the government. 7. There is no "doomsday" if the scenario is economy opens up, people spend pent up savings, inflation spikes, tax revenues also spike, less government debt is issued, and the FED sells treasuries on the open market to reduce reserves. The only way hyperinflation occurs is if the decrease in production is sustained for an extended period of time, or people lose faith in the U.S. dollar (an extremely remote scenario). 8. There has not been large growth in borrowing with respect to securities or mortgage investment (ex. refinancing) and banks have been tightening standards. If you look at home sale volumes you will notice 1. supply is extremely low due to delayed construction (new home sales and housing starts), decreased new listings, and less evictions (existing home sales), and 2. existing and new home sales hasn't massively spiked. Using higher real estate prices as evidence of individuals looking to hedge against inflation is kind of a joke.

Econ Major’s on the outside 😁 Econ majors on the inside 🤬🤮😭😵

@@ultprim4532 because it’s RU-vid I just want to specify I’m asking a legitimate question. Do you think the current administrations plan to invest in infrastructure suited towards emerging tech markets is a good way to maximize the economic recovery.

@@Striker163videos No, but I wouldn't think of the infrastructure proposal as same year stimulus given it would take 4 to 5 years to be fully executed. Instead, I think it os a relatively reasonable way to take advantage of low interest rates and moderately higher inflation to invest in America's future (especially after a good amount of compromising to get moderates on board). Pandemic or no pandemic, we have been needing a large infrastructure package for at least a decade now. With respect to the contents, I would prefer higher traditional infrastructure allotments and less for electric vehicles and rural broadband. My preference would be legislating charging station plug standardization at a national level and subsidizing their construction at exiting gas stations instead. For rural broadband, its just unreasonably expensive and doesn't have a clear ROI. With respect to the climate change preperation and prevention, workforce retraining, and business and manufacturing support (especially for chip production) I am in favor.

Same was the case for Yugoslavia. They needed Deutschmarks.

This video is kinda garbage. Fear-mongery.

@@johnraviella6561 why?

@@richcogs We may have stagflation, certainly not hyperinflation. Not by a longshot.

Thank you mate!

It's believable

They're good, but it's not unbelievable. I don't like hyperbole.

@@pistolen87 maybe hyperbole doesn’t like you! 😂

Usually yes, but not in this case. He played into the hype and went way overboard into speculation: 1. Don't use the MS1 chart to illustrate money printing when they changed the definition to include liquid deposits in March 2020. It completely skews the picture and is irresponsible data presentation. The fact that you say 1/3rd is newly printed while showing 2/3rds or 3/4th on the chart makes it seem like an intentional misrepresentation. (See the definition below the chart: fred.stlouisfed.org/series/M1SL) 2. The S&P has increased in value due to higher future earning expectations from make up spending, technological skewing (big tech firms in the S&P have benefitted (Amazon, Apple, etc.) while small manufacturing and hospitality firms outside the S&P 500 have been hit hardest), the discount rate significantly falling and raising the value for future firm make up spending earnings, and non-price sensitive retail investor savings increasing equity inflows. 3. Analyzing the S&P 500 as indicating high inflation expectations seems pointless when there is the TIPS (Treasury inflation protected securities) market which actually prices in inflation expectations of market participants. They are still below 2.5%, far from hyper inflation. 4. CPI hasn't significantly increased despite raw material price increases as (1.) firms are indicating they are limiting price pass through to consumers to prevent an impression of price gouging (see CFO survey), and (2.) certain items like oil and services have been heavily discounted during the pandemic. 5. The CPI food category has increased about 5 to 6% with some categories up 9%, and new housing build costs have notably increased due to raw material increases. Its not like we haven't seen inflation. 6. Unlike the hyper inflation examples noted, the U.S. is not printing "cash" and transferring all of it to individuals purchasing goods. Instead it is increasing bank reserves through asset purchases, which can be monetized via the spending of firms borrowing or purchases of newly issued government debt. So far this monetization has failed to materialize as high savings and capital regulations limit banks ability to lend out. As such, the FED can easily reduce these levels via open market operations if inflation picks up above 3% because there will not be a need to further finance the government. 7. There is no "doomsday" if the scenario is economy opens up, people spend pent up savings, inflation spikes, tax revenues also spike, less government debt is issued, and the FED sells treasuries on the open market to reduce reserves. The only way hyperinflation occurs is if the decrease in production is sustained for an extended period of time, or people lose faith in the U.S. dollar (an extremely remote scenario). 8. There has not been large growth in borrowing with respect to securities or mortgage investment (ex. refinancing) and banks have been tightening standards. If you look at home sale volumes you will notice 1. supply is extremely low due to delayed construction (new home sales and housing starts), decreased new listings, and less evictions (existing home sales), and 2. existing and new home sales hasn't massively spiked. Using higher real estate prices as evidence of individuals looking to hedge against inflation is kind of a joke.

That’s why Venezuelans now use the U.S. dollar. All the U.S. needs to do is pass a constitutional amendment to limit money printing to just buying U.S. government debt (like it was before 2008) and paying back the deposits at banks that fail, and then limit U.S. government debt to only be used to purchase physical goods (solely owned by the U.S.) for capital investment that can be proven to increase economic productivity by more than the cost of the debt (such as by building automated manufacturing plants).

But what if the debt issuer redenominate the debt value in gold or other currencies in case of hyperinflation? UNO reverse card 😬

Hahahaha underrated comment brother 🙌

It'll just expire if not spent

Fedcoin is going to replace the usd within 2 years

@@charlebrownga and i won't be using it because crypto becomes worthless during a power outage

@@alecciarosewater7438 no one ever seems to realise that. In my bit of Australia we get blackouts in summer due to extreme heat and many of our customers cannot shop because our payment machines go down.

So this guys is saying he doesn’t value his own educated opinion or is a coward?

@@randomlygeneratedname7171 this is called insurance

@@randomlygeneratedname7171 I'm pretty sure you can get sued for offering financial advice without being a registered financial advisor if someone invests in what you tell them to and it goes down, hence why people making content related to finance typically include this disclaimer. Note: This comment is not legal advice and should not be construed as such.

@@egarcia1360 Thank you for the detailed reply.

@@egarcia1360 You don't need a disclaimer to explain how a disclaimer works

Now this man knows what's up.

I am gonna say not many.

All of it.

@@EconomicsExplained so you’re saying SOME?

@@janedoeYT like $15 maybe xD

@@user-nf9xc7ww7m jokes on you, I already live in my car cuz I can't afford anything better :'(

canada has been on a crash-course for quite some time now and the lockdowns (paired with psychological effects of the virus) will result in a total disaster

@@user-nf9xc7ww7m Mass production wouldn't do much for prices - most of the value in the price of a home is in the land, not the building.

The housing market is hypersensitive to interest rates, rising yields will temper the inflation and some further interventions may be employed. Canada house prices are some of the most elevated in the world though, because they barely saw a correction post GFC. However I think given the coming boom and easy credit conditions Canada will be able to ride the wave into the inevitable bust which is due around 2026/7

This. And it's not just people buying houses. Pension funds, hedge funds, and banks are now directly buying real estate. So, it's gonna make 2008 look like a speed bump when it finally collapses

Not the only issue, prices after climbing daily now. This year it was going up monthly. I’m in the us This is terrifying

Hopefully I do it justice :)

Same!

he has 2 hyperinflation videos already

@@asspoo5540 yeah but not about America's current situation.

“😂”

Every successful economy engages in huge amounts of deficit spending...is that "printing money2??? Do you even know what you are talking about when you say those words? nope, you're probably a brainwashed kid. Heard the words a bunch on youtube and just say them to sound smart. How does deficit spending lead to hyperinflation when you have the strongest economy in the world? You'll get the bigger picture someday, kid. The USA isn't Venezuela. You do get that, right? lol so dumb....

@@earnthis1 There are some limits to deficit spending. Not to say I know where they are but. However were very high compared to GDP. This video goes overboard, but there are definitely consequences to increasing the money supply. For instance most of these dollars ends up in the Stock Market because the Fed can't mop any of it up. Which creates more and more inequality.

@@earnthis1 I'm not an economist but I'm trying to use common sense to understand what you're saying. FIRST: What (if any) correlation exists b/w deficit spending and printing money? Inflation does increase money printing because you need more money to buy the same things (on the other hand, you spend less if your purchasing power stays the same / decreases). With the economy the way it is, people are still spending because of covid stimulus checks / unemployment checks, but they're spending on smaller ticket items (not necessarily real estate / car of the year / expensive vacation, etc...). So, 1) This is an opportunity for investors that have money to invest and people that are already too desperate for money to "ride the wave" - MORE INCOME INEQUALITY. 2) In this economy, there's an increase in price of goods / services requires MORE MONEY PRINTING, but a decrease in purchasing power / value of money. NOW ABOUT DEFICIT SPENDING: "Deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit, or budget deficit; the opposite of budget surplus" (ALSO: "Hyperinflation is an accelerated rate of price increase on goods / services"(50%/month)). MY QUESTIONS ARE: Why is it that instead of giving out "free" money (covid stimulus checks/unemployment checks) and shutting down businesses didn't government support businesses, create jobs? What do you think is gonna happen when the "free" money runs out? And how do you think deficit spending is a "successful" government strategy?

@@earnthis1 The only reason we can do all this deficit spending is that we artificially lowered the interest rates on t-bills which has already lead to two housing market collapses and is about to lead to a third. Deficit spending under normal circumstances is moronic. We rigged the system to make it work, and are suffering economic consequences for it. There is no safe store of value, it turned our entire financial system into a speculative market. The dollar will lose reserve currency status in the next decade and will be worthless soon after. You'll get the bigger picture someday, kid. The USA isn't invincible. You do get that, right? lol so dumb....

Those coins are erratic.

It’s at 42k now lol. We going to da moon

@@universenerdd to the moon and back

@@fraided88 and then to Mars, and back to the moon, and then to Jupiter, back to Mars. The cycle repeats until the entire universe is uncovered

Stay long term man you’ll be sweet

It not the people In power who are stupid it is EE also the majority of money made was made from private banks through Credit soo…. Fed isn’t the main reason for money generation in the economy.

We already are m8

I don’t know whether to feel excited or incredibly scared to be living through historic events.

We've already had the pandemic.

It's the twenties again. Not 1920s but 2020s. See 1920 for reference.

Watch out for 2039-2045 Ay, my man will come back again after they reject him from art school. So hyped!

"dont base your decisions on a doom and gloom video on the internet" there is alwys a person who thinks the end is near.

Venezuela: amateurs...

That's the reason our economy became debt-based in the 70s; to control inflation.

And all it is is a hedge. Meanwhile, the dirty crooks printing that money and handing it around to their friends with their mysterious balance sheet are the real winners.

Actually, IMO that's a bit of a canard. The fundamental principle of hedging is to bet against the market and there's a better way than borrowing which puts you at risk. Simply covert your assets into an alternative, anything at all that isn't going to follow the trend of what you're betting against. If you think another currency is going to do better, convert to that. If you think all currencies are going to crash, then buy something else like your gold bullion. But if you think that gold bullion won't sufficiently protect you, buy something else, lime maybe a farm out in the sticks where you can build your "end of the world" bomb shelter. In other words, just convert to whatever you think will retain value or appreciate to get you through Global Armageddon.

Take massive amount of debt, buy silver and wait a few years = ggwp

Good point

No. No one is creating as much money as the US is creating US Dollars... By far

U.K have printed I think

Most morons haven't figured it out yet

We have not seen, and are unlikely to see, hyperinflation in the US. We are likely to see a recession as the fed raises rates and restricts the money supply to combat the current 8% rate, which is the highest it’s been since the Reagan administration. That’s bad, but it’s not hyperinflation. I wouldn’t go out and buy an apartment and hope to pay for it with a marble.

@@_yak: no plans to start playing with marbles here. ;)

@@saraha2100 the us will never declare bankruptcy. All of our debts are payable with US dollars.

@@saraha2100 I guess we'll ignore the $4 trillion in low interest loans given to big businesses only and point the finger at small lenders instead.

@@saraha2100 I'm saving money now for this event to happen and it will.. I will be buying a house or most likely two✔️.

@@thegreatfomo You don't sell it, you pay it off with something else. That's how a lot of people got ''free'' houses in Yugoslavia. They paid off their bank loans with a single salary. The markets will stabilize in a few years and you can sell it off for better value.

@ Yep, that's what's going on in the US now. Hedge funds buying up all available housing before hyper inflation and waiting to resell. Most of these homes in my city are currently just sitting empty.

Not worth the money it's NOT printed on.

I mean, every penny costs about 2 cents to make and we still make them ... for some reason heh

@@3nertia when we figure taxes in to things (income tax, sales tax, and so on), we do not always end up with a 5 or 10 at the end. For those who make a set income, income related taxes may not differ a lot.

@@MrHarr0073 Uhh, okay ...

@@3nertia Current Copper clad Zinc pennies cost between 6-9 cents to mint. A solid Copper penny from before 1983 is now worth over 11 cents just in material, and would cost over 20 cents to mint today O.o Pennies are very cost prohibitive to manufacture. Its also why we got rid of the American Half Cent, the Half Dollar, as well as dimes, nickles, n quarters made of silver, and several other previously minted coins o.o

Penn should know. He lies a lot himself

@@tannerjablowski3192 Penn mostly lies on stage as part of the act. He does have the delusion that Libertarianism is a viable system. There is one nation with a Libertarian government, Somlia. He is simply mistaken, not lying in real life.

@@ethelredhardrede1838 I don't think you understand. While I actually tend to agree with them on a lot of issues having been a long time libertarian, the truth is that they are liars. Just like The Daily Show or Borat, they defame people by taking their words out of context, splicing clips together and so on. They've been caught in the act. Call it entertainment or whatever but it is deceptive.

@@azxctbygalumbo9516 "I don't think you understand. " Not all that likely. I suspect that I do, but lets see. " having been a long time libertarian, " So you have delusions as that is as silly as Communism, both require some sort of Alien beings, not humans to function and I suspect such being cannot evolve in the real universe. "Just like The Daily Show or Borat, they they defame people by taking their words out of context, splicing clips together" The Daily Show and Borat are not similar. "They've been caught in the act. Call it entertainment or whatever but it is deceptive." OK I understand that you make unsubstantiated claims and conflate humor of very different types as if they were all the same. Lets see who you subscribe to. No one publicly. That is OK same for me. I just have the suspicion that you are a Bubble Dweller. And you being a Libertarian supports that. Thank you for unsubstantiated assertions. At least give an example.

@@ethelredhardrede1838 you state that the daily show and Borat have nothing in common, but likewise you don't provide any substantiating evidence. You just deny without any reasoning. You are a hypocrite and a liar. The fact is that regardless of audiences of style, both seek to undermine competitors to their information monopoly with lies and defamation to discredit. You can't refute me so you're just changing the topic.

Los argentinos desayunamos inflación jaja

ojo que se se vienen los economistas de la uba y catedra de kicillof a decir "exchange rate inflation"

Con los heterodoxos de flacso unsam y todos esos nidos de ñoquis en el gobierno no llegar a una hiperinflacion va a ser un milagro

@@v44n7 Economistas de porqueria. Que sólo conocen la misma doctrina y no intentan desafiar sus conocimientos. La UBA Ciencias Sociales es enemiga de la intelectualidad y el pensamiento libre.

Paul Singer

Txt me on Signal App

+...1...4...1....2...2...5....4....3....8...9....2...,,,...

While starving

Truly living up for your username, comrade.

@@shurik3nz346 No, you won't. You vill eet zee bugs.

Klaus Schwab

*That sounds great, reset*

ahh well I am convinced.

Well confidence does actually influence the economy.

Well, he isn't wrong at all. Simply CPI and inflation calculation have no fcking correlation with real inflation for decades now. For example in my country Real estate prices grew by 300% in the last 6 years, one of the greatest in the whole world, Food and beverages are about 30% more expensive. Our inflation is about 3-4%/year. The salaries didn't go up anywhere near that much, so you can clearly see that something isn't right. It's just, that you include what you want in the CPI, and real estate prices, rent cost are generously left out or have a very low ratio in the basket. This is true to every country to some extent. Inflation simply doesn't measure the reality, it takes into account energy, and oil prices, food and clothing, which are generally decreasing in price or slowly increasing and are a very small percentage of your actual spending unless you are very poor and/or have real estate from when it was cheap 1-2 decades ago. CPI should include rent costs and electric devices more heavily, should include stock and precious metals, and other things if they actually wanted to monitor the real inflation.

The real question seems to me is what can the Fed do in such a situation. Recent attempts to raise interest rates in the US would suggest that the Fed has quite a bit of power to land this. It would be interesting to explore how a bad landing--most likely to happen--compares to the scenarios presented here. Raising interest rates--easy to do from 0%--would make US treasury assets more attractive, but would raise the cost of state borrowing and potentially harm the economy. How would that play out?

​@@fenrirr22 CPI Does include rent cost and electric devices. Yes, the housing crisis is something that is happening all over the world but most people don't realize that the total cost that people pay to own a property(property value+ínterest) have not increased as the same rate that property value have increased and that's because interest rates have been falling all over the world so obviously that makes debt cheaper, that increase demand and that's why the value of asset have increased but you have to consider the real cost of borrowing to own a property/asset(property value+interest)

EE in the mud

Akiva Potok This still makes money a joke not worth taking seriously. "lobbed off a bunch of decimals", sure thing. Take you fake money and stick them up your asses, governments! I want real value and real capitalism.

Been thinking this for months tbh.

Too bad EE doesn't seem to understand what so called "money printing" is as it relates to the real money supply. QE (Quantitative Easing) that most point to as "money printing" does not actually add any new currency into circulation. In fact, it does the opposite. The stimulus payments, on the other hand, have added to the money supply. But, for that money to cause inflation (much less hyperinflation) you would need to see the velocity of money increase or at least stay stable. Instead, velocity has fallen off a cliff... Long story short, we're more likely to see deflation than hyperinflation. And I find it upsetting that a channel branded as teaching economics either fails to understand or ignores the data. See channel "Steven Van Meter" and "George Gammon" or podcast "Macrovoices" for better economic information.

@@unsettledonpurpose Remember, this channel is for macroeconomic dummies, not folks who actually fully understand the ramifications of the current economic climate..

yeah, my econ professor showed a similar example when we talked about hyperinflation in venezuela... scary times (but also really interesting to study)

@@geddycurrent1174 can you explain how please? i'm lacking knowledge on the matter

@@geddycurrent1174 what sanctions? I'm Venezuelan and we've been in hiperinflation since around 2013 thanks to the destruction of our industries and the funding of government expenses by printing inorganic money. Is has been till the last few years that sanctions against individual corrupt politicians here were placed due to the abhorrent amounts of money they've stolen these pasts 20 years. Just the daughter of Chavez is estimated to posses around 4 billon dollars originated form the state controlled oil industry, so these past few years they were sanctioned from spending it abroad and some of their personal accounts in Switzerland and Andorra have been frozen. We are still able to export our oil and other resources to other countries including the USA and China but due to the low oil prices and no industrial capacity public or private, they were left with no money to support their public expenses which are huge thanks to insane socialist economic policies. In 2019 the public sector was estimated to be around 75% of the GDP of the entire country and the crisis is even worst now with covid, but we don't now the exact numbers because the government has not released any official economic report since 2018 to not damage even more their credit rating. So you tell me what sanctions are you talking about? because all I've heard is a bunch of ignorant rhetoric about economic sanctions as if there was an actual embargo in place but they actually are aimed to government officials involved in corruption who right now have the monopoly of the oil industry in our country, which by the way they also destroyed.

Imagine if you took out a big loan to buy a mansion. Paying back that couple of million Bolivar would be like buying a marble.

@@tylerdurden3722 I'm not sure what you mean there, but if you want to know it's been years since there was any kind of loans available in the oficial currency (because of hyperinflation of course), also banks have close to no guaranties of been repaid back so the banking system no longer exists for common citizens along with credit cards