Hyperinflation is Already Here - You Just Haven't Realised It Yet | Economics Explained
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Hyperinflation has been a doomsday scenario for modern economies throughout the last century. In all of these failed countries (Zimbabwe, Venezuela, Hungary, Yugoslavia, etc.) there have been uniform warning signs, the same signs that we are starting to see today in the U.S.
#Inflation #Hyperinflation #Economics
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#Inflation #Hyperinflation #Economics
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![ทททททททท #27 [หลุยส์ เค โตมายังไง ณ สระบุรี]](http://i.ytimg.com/vi/CaKoYw_Xmtg/mqdefault.jpg)
7 year old: Why don’t we just print more money?
Governments: Genius
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
I accused my wife of being a shopaholic, but she replied that she was just shorting money as a sound financial investment.
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.
my irish grandpa use to say, there is no inflation when you plant potatoes and veggies and raise chickens and ducks.
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.
I feel like one very important thing is overlooked, the fact that this is happening to every country around the whole unlike the case studies that u referred to where those events happened to one specific country.
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.
In Argentina we were born into the inflation, molded by it. We didn't see stability until... We leave
@@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
As an argentinian I am kinda offended you didn't use us as an example in the intro. We work hard to be on that kind of list, sir!
@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.
People are affected by inflation far more quickly than they are by a stock or property market crisis because it directly impacts their standard of living. The current level of negative market sentiment is not surprising. To survive in this economy, we urgently need your assistance. The ETF/Equity market continues to fluctuate. My portfolio of $370K is laid bare in ruins
Indices frequently go from a bear market to a bull market when the news is at its worst and investor confidence is at its lowest. This demonstrates how quickly the direction of the market may alter.
You need a Financial consultant to avoid being taken advantage of. They offer personalized advice to individuals based on their risk tolerance and investment capital. They do have a great reputation and some do have a strong track record to go along.
@@ThomasChai05 I'm actually interested in this idea of investing through an analyst. Sounds like the most sensible thing to do in the market right now. Could you give me a pointer to who you work with, please?
CAMILLE ALICIA GARCIA maintains an online presence. Just make a simple search for her name online.
I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. I set up an appointment to use her services.
The last part of the video is exactly what happened in my country Ecuador, we used to have our own money (Sucre) but then the stupid bankers broke our economy and we had to adopt the dollar as our official currency. Besides the lost of savings of many people and the huge migration that occurred during that time, the prices of the mortgage were so low that we ended up paying literally 10 cents monthly as a mortgage and that's why our parents could buy houses. As a kid I always wondered why you could pay a house with pocket money but I now understand the importance of having properties instead of cash
There's a reason why usury used to be a capital offense. Making money without producing something of value is fraud.
@@Razaiel nahh, it was anti-semitism coupled with wealth envy. They soon lifted the ban on Usury during the Renaissance remember!
wealth envy is a considerable force
Now that your currency is the US$, 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 2020 - Is Hyperinflation Coming?
April 2021 - Hyperinflation is Already Here
Can't wait for the third act in this blockbuster trilogy
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?
Americans: "Hyperinflation is on the horizon"
Me, a brazilian: "So, first time?"
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?
I had a teacher in middle school explain inflation the following way. Assume you’re an overworked student and you wish for more minutes in a day, so you can study more. The sun rises and falls at the same time, but you say to yourself, “each hour is now 120 minutes, rather than 60”. You therefore have twice as many minutes in 1 day, and therefore can get twice as much accomplished! … right?
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
Wheres the hyperinflation mediaman?
Now it's time to read the comments and see what the experts have to say.
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
As an actual multi-billionaire, I have to agree with the sentiments expressed in this video. (I have a 100 billion Zimbabwean dollar bill.)
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.
The price of everything has been going up over time, I am almost 55 years old, rent, drive a Prius and the cost of new cars and home are unaffordable for me. Both my neighbors are over 70 years old and still working.
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.
An inflation rate of 10% is not hyperinflation and nowhere close. Hyperinflation would be an inflation rate of at least 12000%.
Economics Explained: “weird maple money”
Me a Canadian: *angry beaver noises*
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.
+1π6 π2 π3π 4π7 π1 π 9π 4π3π 4
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.
Yay! We're all gonna be millionares!
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. 😋
This would explain why some major corporations are spending 200% over market to rush out and purchase large tracts of homes.
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 spit tea from my mouth seeing Minecraft iron ore block being used to represent iron ore in a economics video.
You noticed that too? Hahaha 😂
timestamp? xd
@@ashraile 11:32
Just withdrew my life saving and exchanged all my US dollars into the very stable Zambian currency while also buying real estate in the property rights protecting Argentina.
*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.
"Too Big to Fail, that's like saying too fat to diet" - Robin Williams
"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?
"Millions of people out of work" while at the same time "Largest worker shortage in US history".
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?
I think my favorite false choice in the video was "either the stock market is irrational or the dollar is weaker." As if it can't be both!
Years ago, I had a guy once ask why we couldn't just give more money to everyone. I laughed at the time. Who knew he was ahead of his time?
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
I lost my job in the construction industry during corona, and recently I was looking to do some renovations, then I saw the price of materials basically doubled across the board.
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. $120 today. Crazy. Food is just as bad if you bothered to keep track.
Yeah this vid didn't age well lol
When the interest rate is less than the rate of inflation, it pays to borrow.
At least until the money printers can't afford to pay for their own salaries.
@@TheSkyGuy77 - No. It's simple math. Using dollars that are worth less to pay back a loan that has more purchasing power but the same dollar amount is a net gain.
So glad my medical school debt will be worthless when I graduate!
Finally my dream of becoming a millionaire will finally come true.
So will your medical school degree! Wheeeeee! 😁
Actually yes.
in aus they index our govt student debt at the inflation rate lol. yay.
Worthless as in, 10x what it is now lol
Biggie Smalls predicted it decades ago: "Mo money, mo problems"
Underrated comment!
It finally makes sense now, Biggie was talking about monetary policy 😂
@@nilnil7325 maybe he was assassinated by the deep state.
🤣🤣🤣 I'm dead bro
@@BB-oz8oc No, he is.
2022 made this video look like a prophecy
Watching this exactly 1 year later: congratulations m8! 😎
fr, he caught the nail on the head, prices have increased on average about 40% on average i think and gas is 6$ 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.
Brazil went through periods of hyperinflation from 1989-1994 (> 1000% y/y at times). Before that, we had 50 years of high inflation (> 2 digits a year). All of our parents and grandparents have been through it. It's really hard for me to process how my parents managed to live with that kind of economy, it seems impossible that you can even survive that. Some really bizarre things happen to your daily life, like having to immediately spend everything you earn in the market and depositing all the rest in the bank so it won't lose all its value. Long queues in all markets and banks, entire rooms reserved for stocking food and supplies at home, dollar black markets.
The main causes of hyperinflation in Brazil were the very high spending by the military government that ruled from 1964-1985 and the uncontrolled money printing after that. At one point, the minimum wage had to be readjusted every two weeks and even then it wasn't enough to keep up with inflation. Bank deposits would yield something like 40% a month, which also wasn't enough to retain all value. Many economic plans were tried in the late 80s and early 90s to solve the problem, none of which worked. Price freezes would make items vanish and new currencies would spiral into nothing in a matter of months. In 1990, the first democratically elected president after the military dictatorship literally took all the money people had in the bank, promising to return the nominal value in the next years. Of course, the nominal value was worthless after a few weeks so effectively most people lost all their savings. He was later impeached.
The Real Plan was the one that actually saved the Brazilian economy. Economists recognized that chaotic money spending and printing, plus the psychological effects of inflation (inflation expectation generates inflation; they called it 'inertial inflation') were the causes of turmoil. The government adopted the Unit of Real Value (URV), which didn't serve as official currency initially but instead as a stable indicator of the value of things. Even though the official currency at the time (Cruzeiro) quickly inflated, the URV stayed the same. All prices had to be labeled in Cruzeiros + in URVs. This was really a psychological war against inflation, since people began noticing how prices were stable in URVs.
Eventually, in 1994, the government announced the currency would change from Cruzeiro to Real, 1 Real being equal to 1 URV. Along with that, several measures like the prohibition of money printing to pay for public debt and laws of fiscal responsibility were adopted, so hyperinflation is structurally inhibited. From night to day, like magic, hyperinflation disappeared. We use the Real up to this day and it's a legitimate reserve of value (albeit not perfect).
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
"Weird Maple Dollars"
I died
🇨🇦🍁🇨🇦🍁
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
The marble example is brilliant, I remember when I was in Venezuela I took a loan of the equivalent at the moment of 2000USD, later I full paid the debt only with 100USD
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: th-cam.com/video/UkClrikc1bk/w-d-xo.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.
how to be an economist in US 2010: Its over, money printing & hyperinflation is coming. 2011: Its over, money printing & hyperinflation is coming. 2012: Its over, money printing & hyperinflation is coming. 2022: Its over... mone.... 2222: Its ov...
2030.. it’s over hyperinflation is here
EE- Don't make decisions based on a doom and gloom video on the internet
Me- already searching if I can use all my money to buy gold and bury it in my garden
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
I remember my grandma had some paper money saved from the 1945 Hungarian crisis
It said Hundred million billion pengő ... some crazy denominations. Hard to even comprehend it.
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
I've seen this video before, but it's even more telling, now that we're almost halfway into 2022, with an "official" US inflation rate that's over 8%, and seems to still be on its way up.
Clearly, the US is *not* too good for inflation. I'm hoping and praying we don't get into hyperinflation. I mean... you can only blame Putin for so much before people figure out it wasn't really his fault. (Oh, wait... we've already figured that out.)
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. ;)
this video aged well 😂
BRRRRRRRR
Indeed it has
I really shouldn't have watched this before going to bed...
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.
*Goes to college to rack up a 60k debt, gains skills* Ready for the apocalypse as a bard woo!
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
Looks like there is no turning back. So let's just brace for impact
Videos like this are why nobody knows what is actually going on
Wdym
@@claireisonline The video is cleanly branded and looks reputable and comes across as unbiased. It is grounded in reality and references real events. However, the video was published in April 2021, and in March 2024, we still have not experienced anything close to "hyperinflation."
There are an uncountable number of other channels similar to this, covering any topic. Vetting them for fact based information or holding them accountable for incorrect predictions is impossible.
It's impossible to tell whether you are being misinformed or not in the moment.
EE:"....shorting currencies."
Me: huh, I wonder how you do that.
EE: "You might ask yourself, how do you short a currency"
@@user-tl1yz5vf2e No thank you, I would not like to be scammed.
😭😭😭😭😭
The wants us to pull a George Soros lol
This aged well
I’ve said this, got laughed at…people don’t like to hear it 😖
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
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
― Henry Ford
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
Grabbed my popcorn for the video, grabbed another for the comments, both needs to be digested separately lol
Man, you nailed it!
You should update this video with a new one at current inflation
"reckless printing and borrowing, along with decreased industrial capacity"
hey, I've seen this one before ! - American, 2021
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
this guy has made a documentary for free. congrats mate you do beyond amazing work.
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.
Today it's not about return ON capital. Today it is about return OF capital.
OF capital = only fans capital, which makes sense, best way to make a good return is from making an OF = onlyfans
One year after this video and indeed, politicians are now becoming worried about hyperinflation. Too bad that u where right.
Was trying to lose weight, but now it sounds like i might need that extra 60 pounds worth of calories.
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.
Clicked faster than China will yoink your digital yuan if they think you're not spending enough.
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.
Also to note as Ray Dalio says: this is only the case if there is a lack of productivity. For example if someone give you a loan and you use it to go to school and get a job then pay it back everything is dandy. But if you borrow and don’t pay back you suffer.
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?
I think one of the most common mistakes made by most people is they think Fiat company isnt backed by anything. It is, its backed by the production of goods and services that people find valuable, that they are willing to exchange their medium of exchange(time and effort) for.
The quality of these videos are unbelievable.
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.
Wow, I feel like I will start reliving the major events in history.
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!
If you know what hyperinflation is, then you can't say it's already here in America.
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.
Watching 7 months later, and somehow this video is turning out to be more right in its predictions than the fed and treasury secretary who are backtracking on their “it’s just transitory” claims
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'
The housing market here in Canada is going crazy with prices up 30% - 50% on most places. I think we will see things get a lot worse before they get better.
@@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
5:16 - *90% of the viewers of this video* : "I'm gonna pretend I didn't hear that"
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
2021: yea right,
2022: EE "more popcorn anyone?"
Can you make a 2022 update of the video please?
Have been waiting for this topic to be covered by the Economics 👑
Hopefully I do it justice :)
Same!
he has 2 hyperinflation videos already
@@asspoo5540 yeah but not about America's current situation.
17:25 I saw this very thing happen in Venezuela. People would pay their house loans laughing. Then credit disappeared from the country. Nobody in their sane mind would loan money
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 😬
Price increases of commodities and goods can be directly linked to supply chain disruptions due to COVID. It's way too early to proclaim hyperinflation.
Shorting S&P is tough. There’s 2 sayings around a this. First “just because something is inevitable does not make it imminent”. Second, “ the market can stay irrational longer than you can stay solvent”.
That whole 'debt as a hedge against inflation' thing was fascinating. Don't know why I hadn't considered it before. I do feel a little bit sick though.
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
this title got me spooked lol
Then it has done its job haha!
You should be
I didn't expect you here
@@jjnc6761 Same lol
Bruh, You're everywere!
Why not mention that in every one of the cases mentioned the hyperinflation was due to printing money to purchase foreign currency, enormous foreign denominated debt in the case of Zimbabwe and Germany, and pressing need for foreign currency with DPRK? Can you give an instance of hyperinflation where this wasn't the case?
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.
10:25 "If an average grocery trip became 50% more expensive that same year..."
Argentina: I'm in this picture and don't like it
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
Everyday stuff like this pushs closer to returning to monke and becoming an appalachian mountain hermit
"dont base your decisions on a doom and gloom video on the internet" there is alwys a person who thinks the end is near.
Inflation has peaked at 9% in the US, and most predictions say it's going to continue to fall. People who were predicting hyperinflation back in Spring 2021 were wrong. They're always wrong. The Fed was a little slow to fight the current inflation, but they're not incompetent fools who would let inflation go to the incredible heights that would require printing million dollar bills. I think the only real risk of hyperinflation in the US would be if Congress defaults on the national debt like they're constantly threatening to do.
14:47 "...using your weird maple dollars" 🇨🇦😂😂😂
When money literally becomes worth less than the paper it's printed on.
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
Me: Just finished studying. Let's watch something on TH-cam.
First video on the homepage: HYPERINFLATION IS ALREADY HERE
Me: *P A N I C*
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 TH-cam 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.
This aged awfully well, and it shows how those in power have no idea what they are doing. Printing trillions is throwing the economy into fire, and tightening monetary supply isn't seeming to be achieved either.
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.
Great video, very well explained, thanks 👌
"Numbers don't lie; people do."
- Penn and Teller.
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.
As an Argentinian, we breathe this kind of stuff.
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
All your examples of hyperinflation are single-country crises with the rest of the world unaffected. Then you pick out one single economy (USA), in a global crisis, with dozens of other economies responding in the same way. I think these situations are significantly different.
This time, if the US Dollar crashes, it hurts the whole world.
Think like Great Depression but far worse and with currency, not stocks.
I live in Eastern Europe, I can say this problem is common to WAY more than just USA.
Different situations, but the same foolish, self-destroying answer from the government...
More currency plus less goods equals inflation, the fact that its happening globally does not make it better for anyone that has to use a large portion of their income to buy things ie rent food power petrol, all of those things will become more expensive, along with assets, the rich will do well, the middle class will continue to shrink and the poor will have to choose between rent food power and petrol. This is not going to end well at all.
Hyperinflation is just an extreme case of Gresham's Law. The root problem is not "Mark bad, Sterling good". The root problem is "this note is legal tender for all debts, public and private (and therefore venders _must_ accept this garbage from buyers _by force of law_ )".
Who’s here after money & macro? 😬
EE in the mud
The thing is, the previous crisis had one nation ruin their economy, but this time around everyone is printing money, the value of basically every currency in the world is bound to go into hyperinflation
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
This makes perfect sense now - no wonder a house doesn't stay on the market for more than a week anymore - ITS LITERALLY FREE REAL ESTATE
@@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✔️.
@@jew_world_order 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.
Ah… the days of the $57k Bitcoin 🙍♂️
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
"Hyperinflation is already here" is pretty strongly said, if you claim at the same time that this is full of speculation.
When you were talking about buying a house for the price of a marble, it reminded me of a news report I watched a while back. A Venezuelan woman was saying to the reporter, that to buy couple bananas, she has to pay an amount similar to what she paid for her house.
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
- We don't have any money. Say I give the order to print more money. In how many cases in the past has this worked?
- 0 cases sir.
- And in how many cases has this failed?
- 631 cases sir.
- Ok start the printers. I am feeling lucky!!!
“😂”
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....
On the other hand Israel had hyper inflation in the 1980's, to the point where tourists wouldn't convert their money to the local Shekel currency until they day they planned to use the cash. But Israel then renamed its currency (Shekels became New Shekels), lobbed off a bunch of decimals, changed its central banking practices, negotiated with organized labor (to keep them from locking their pay to the inflation rate), paid down state debts, and pulled down their inflation rate to below 20% over the course of 2 years. Israel's inflation rate now is now below 2%. So it is not a one way journey or a fait accompli at all.
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.
EE: We are gonna talk about hyperinflation
*Argentinians entering the chat: TheExpert.jpg
Venezuela: amateurs...
Because of this video alone, Imma go borrow so much money and buy so much land! My future is all in your hands EE. I see no problem with this!
I'm literally just doing this. Just maxing out my debt capabilities buying a farm property. Self sufficiency combined with protection against inflation
This is only possible if you dont depend on the land for income. Theres future potential, but you'd have to take care of mortgage until then.
Mr Economics Explained told you : “ Don’t rely on an internet doom and glood video!” 😄
@@martenkerkhoff6600 that's just what mr ee wants you to do it, reverse psychology!!
Bitcoin! Go for Bitcoin! 💵💵
About an hour ago, I thought about this and was like "man, I wish EE would do a Video on the topic".
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..
Enjoyed the vid very much
Great article. Keep it up
11:35 , Can't we just mine more Iron Ore? , 1.17 update bring more iron ore on mountain biomes 🤣.
Don't worry, you'll own nothing and you'll be happy 🙂
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*