@@Mangeurdemouton with bitcoin you can be your own bank. so the other banks cannot lend out your money. the problem is the fractional reserve banking system based on paper fiat currencies. the banks can lend out fiat currency like there is no tomorrow nowadays. the more the banks lend out, the more there is money in the market, the more inflation will occur. also if this old man is a prof at a reputable university in the us, then the education of the us is extremely bull$hit.
@@zaporoshti3392 you will own nothing and you will be happy. -Klaus Schwab, world economic forum leader. Agenda 2030 sure own the cryptocurrency you want, I'll send you a digital Lamborghini. Remember, paper money is fine, as long as it's backed by something physical. Government has total control on bitcoin, they can make laws.
@@Mangeurdemouton paper money is electronically printed out of thin air by fed and the commercial banks are increasing the monetary base at least by tenfold by lending 90% of Bob's money in the bank to Alice. Let's say Bob has 100$ and put it into a bank. The bank then lends out 90$ to Alice. Bob and Alice see 190$ at their bank accounts while there is only really 100$ at the bank. This is the gimmick of the fractional reserve banking system based on fiat currency. Bitcoin is the opposite, it is digital gold. Look how much value Bitcoin gained in the last year and it is still going strong, it even did not fall to the 30k $ level yet. There were times 1 BTC was around 3-4k $ last year.
@@Mangeurdemouton No they have 0 control... they control paper money and the fiat gateway to crypto, but I can but products from anyone (accept you) paying with Bitcoin or a stable coin like USDT, NO ONE can stop this transaction, no government. Study more.
I am not a fan at all of the academics who generally missed the big picture in the financial markets over the last ten years, however, Mr. Steve Hanke is an excellent and much-appreciated guest. Please bring him back soon.
I feel the opposite. This guy is really slow in explaining and just reads numbers off a chart or brags about which boards he is on when asked a question. Takes a lot of patience to go through a full interview like this. Btw, he says in the beginning that the move to hyperinflation can happen in a matter of hours to days, but dismisses that completely for the US without explaining why in the end of the interview. I would have liked to see a follow-up question regarding that because he is not consistent in his reasoning.
All his interviews are great. He has a super brain and always seems to ask the right questions and tough questions too. I don't know how he does it or if he ever sleeps.
It is also being tried in many non-failed states like Canada currently. It remains to see if we can avoid the same fate as these infamous nations. We are currently at less than 100% of GDP but when you reach 150% it starts to fall apart.
@@jonroy06 It'll tank. Just a matter of time. History will repeat itself and those that ignore it will repeat it. I hope I'm wrong but I'm prepped and ready.
@@biggusdoggus5909 it will cost people but later, through inflation in assets and goods. It's just not as obvious as flat tax increase, but it will cost them same. There is no free money
@@biggusdoggus5909 why stop at $1000? Make it $10 000.... Monthly check. In short? There isn't enough goods to go around to be bought, thus inflation will take off very soon. Or has it already begun?
I love that he does not allow the guests to NOT answer the questions. They either answer it or admit that they do not know. That’s important when searching for truth.
@@Lexman00 my comments about the global elite and their emissaries are getting deleted each time. youtube is not a free speech platform. sorry for you that you won't be able to learn the truth.
How much currency has been created in Brazil since January 2020 and how does that compare to the 25%increased US dollar? The only thing saving the US dollar is it’s reserve status IMO
M1 broad money supply for Brazil increased about 45% since January 2020. If you subtract about 20% of broad money supply increase in the US the difference is 25% devaluation for Brazilian Real.
I think Greshams Law has been evident for at least the last 6-9 months. People exchange their worthless paper dollars for assets - real estate, crypto, PMs, collectibles - anything besides holding the ever depreciating dollar.
but it wont really change a thing in the big picture, the fiat money isnt gone just because they spend it on other value, its just in someone else pocket...
@@JA-zh5xi yes, but it changed nothing inside the system. so it makes no diffrence how you diversify within the system (as a whole with all of us inside)
@@Heinz76Harald Yes it did. It drove up the price of whatever goods the money is spent on. That causes Cantillon effects where real wealth is redistributed from those who receive the new money last to those who receive the new money first.
@@josephsloop8865 but still it did not change anything inside the system... if you are just shuffling around mobiles/immobiles and money, it ends up on diffrent hands, but the amount of all didnt changed at all. to keep on topic: the worthless papermoney isnt gone just because you spend it on something else like a new house, now the seller got the papermoney.. it didnt disappear...
This is probably the most informed and knowledgeable person in the world on the subject of currencies. That doesn’t make him a prophet and I don’t hold him to that standard. But, when it comes to currencies past and present he knows his stuff. Respect.
When hyperinflation hits our paper and digital currency, people will remember the value of saving our pennies-at $20k/ton of copper, those old copper pennies from 1982 & earlier will be about 50¢ in weight value!
I’m buying up all the good value stocks when they get below their fair value and I’ll eat bread till they come back up. Because once they do I’ll be eating steak every night then
I like Kitco's pricing transparency so I checked American Eagles today and this morning the buy was about $28 and sell around $40. That's a large spread and doesn't yet include taxes or shipping. Of course I am rather naive.
Still thinks the USD is an "anchor", still lying about Bitcoin. This is why we need complete separation of education and state. Private schools would have professors who understand basic economics, who are up to date, and who don't use lies in the place of research.
The creation of the Dept. Of Education is possibly the most destructive thing our Congress ever pulled off; along with the 1965 Immigration Act which was passed thanks to the AJC (American Jewish Committee) completely against the will of the American people at the time. "Educating" our children to hate their own people and country while simultaneously allowing a constant flow of immigrants without regard to their ability to support themselves seems a fairly sure way to destroy a nation.
You should still be concerned about the value of your dollars. CPI inflation is up 4.2%, asset Inflation is way up... There is no reason to panic after all the whole world in trading in dollars but normal inflation is way up. So you want to have as little dollar as possible. Diversify in many assets. Scarces assets are growing with inflation. Hyperinflation no, but high inflation yes
Glad he refers to the worthless paper issuances as "currency". Conversely real "Money" is stable (thanks to Mike Moloney for pointing out the difference)
Very informative. Although the failure of currencies runs more than this. No talk about superpowers which deliberately seek to destabilise developing countries or non-conformist countries to the capitalist and imperialist agenda.
You will know the tipping point has happened when everybody around you starts unloading their cash to obtain objects they don't need or can't use, just to get rid of the cash. In Wiemar, farmers with cash surpluses were buying second and third pianos just to trade cash for a physical object with some inherent value.
I think this pandemic has taught people the importance of multiple streams of income unfortunately having a job doesn’t mean security rather having different investments is the real deal… So l really appreciate your transparency
Bitcoin has been rising for a while now and it might keep rising or decide to fall again. The truth is no one knows and that's why trading with an expert is the best.
Cmon David, where’s the push back? He literally described a stable coin to a T. It already exists and it’s a huge reason why the industry is booming. This guy doesn’t know much of anything about crypto obviously. David you missed your chance to enlighten the man
Fascinating and insightful interview. I don’t feel confident in any of these currencies being anchored to the US dollar. So much money printing and there will be more. None of this is going to end well.
Why is a failing currency bullish for the stock market? Why does the dollar keep going down while the stock market keeps going straight up that makes no sense.
Kind of an unsatisfying wrap up. You asked if the US could be going towards hyperinflation and his response was no, 4.2% is not hyperinflation. I’m sure he’s convinced the answer is no, but elaborate on why you don’t see this spiraling towards hyperinflation. Don’t just state that 4.2% isn’t hyperinflation. We all know that.
Wake up American dreamers!!! 16 months ago Euro 1.00 was $ 1.05. Today 1.22. To many government burocrats, employees and military spending. Mr. Hanke are you afraid to comment on this as a civil servant no to loose your job? Get real!!
Is this why the dollar has had such a slow decent despite the ludicrous monetary and fiscal polices of the US government? There's so many failed currencies right now that the dollar just keeps appreciating against them? Why wouldn't the countries that have stronger monetary policies just become the reserve currency then?
