I am perplexed by the statement, "If you want to understand real inflation, look at the bond market". No my friend, if you want to understand real inflation, look at the grocery store. I fear this video is not aware of the extreme pain that is beginning to be felt by the common man to absorb increasing food, fuel, energy and health care costs. I live in Africa, and the cost of corn and cooking oil have doubled in the last few months, and those trying to survive day to day on day labor are to the point of not being able to afford cooking oil, and are now trying to survive on boiled corn mash. Much of this part of the continent survives on 'Chapati', an oily flatbread sold by street vendors. Vendors tried to increase Chapati prices, but market could not bear the price increase, so vendors were forced to start making the bread half the size. Now those who were barely surviving have had their calories cut in half. Frustration levels are reaching a boiling point, and seems things are teetering on disruption as people simply are no longer able to feed themselves. Perhaps it is not as apparent in the West yet, as there are still some elasticity in the system, but I fear it will show up soon enough. I am not part of some apocalyptic world view, but I am living it and seeing it day by day where I live.
Exactly. Economic catastrophe is not the same as end of the world thinking. It's just looking at the past and seeing the same mistakes. Grocery prices have been creeping up for a long time in America. A lot of it has been hidden by decreasing product sizes.
@@WinterSoldier-dy2qc not if we teach them how to farm and if someone stops their conflicts. they have beautiful, rich land but not all of it is being used well to feed their people.
Look at the bond market IS correct. As far as inflation, a better way perhaps is here in the U.S. the dollar's value is falling. We are entering stagflation/dragflation.. That's how I look at it.
I really appreciatesd Mr. Bahnsen showing respect to Pastor Wilson by referring to him as Pastor throughout the interview. That says a lot about Mr. Bahnsen's character. This was very informative and enlightening. I hope that there will be more. But I have to ask Pastor Wilson why I cannot be an obedient Kypreian and be Pre-millennial? Just because I need to be prepared for His imminent return does not preclude His commandment to be fruitful. Otherwise, we would fall into the same nutty arguments about why should we evangelize if God has already predestined those who will be His. Why? Because He commanded us to AND it all fits into His plan to which we either obediently and lovingly submit or submit unwillingly in sin. God bless and keep you both! Maranatha!
You know who was raised a Presbyterian? Chris Hedges....his father was a minister. Does Calvinist Philosophy produce atheists or humanists? Chris Hedges wrote the book: "American Fascists: The Christian Right and the War on America" When I saw he wrote a book and that he was raised a ministers son, I knew he was raised Presbyterian. It creates such hateful people towards Christians once they understand the theology, don't you think. Hedges, who grew up in rural parishes in upstate New York where his father was a Presbyterian pastor, attacks the movement as someone steeped in the Bible and Christian tradition. He points to the hundreds of senators and members of Congress who have earned between 80 and 100 percent approval ratings from the three most influential Christian Right advocacy groups as one of many signs that the movement is burrowing deep inside the American government to subvert it. The movement's call to dismantle the wall between church and state and the intolerance it preaches against all who do not conform to its warped vision of a Christian America are pumped into tens of millions of American homes through Christian television and radio stations, as well as reinforced through the curriculum in Christian schools. The movement's yearning for apocalyptic violence and its assault on dispassionate, intellectual inquiry are laying the foundation for a new, frightening America.
We have a problem of definitions with inflation. Inflation is really an expansion of money supply, not rising prices. Rising prices can result from money supply expansion, but don’t have to. Often times rising productivity would otherwise cause LOWER prices, but inflation (money supply expansion) maintains price levels. So productivity and technology growth can mask the damage being done for quite a while. Additionally that expansion of money supply transfers wealth around (usually to those in control of its expansion). It’s unequal weights and measures on a massive scale.
What happened to my reply for 10 minutes ago? --I came here to write the same thing about inflation, but you beat me to the punch. Inflation is an increase in the money supply.
I bounce between many camps on this and it's just so complicated. The point about the bond market for example, the fed has been buying up government bonds when the market hasn't stepped in at the right price thus keeping interest rates artificially low. At the same time, because we have trade deficits we are exporting American dollars overseas in the hundreds of billions each year and that has a deflationary effect. This has been limited by supply chain issues. How will all.these factors play out? I have no clue but I am working to grow my business, make smart investments and build a stockpile of wisdom for the generations after me in my family.
There’s a big difference between Japan and the US, principally that the US Dollar is a reserve currency, so when the money supply is expanded it has global effects of inflation well beyond its borders. This allows the inflation to be spread out so we are partly insulated from its effects. Eastern countries are wise to this, they are in positions to start doing something about it. It will still take years, but the position of the US dollar as THE world reserve currency is loosing its foothold. And the nations that hold large reserves of the US dollar are starting to go outside the dollar for trade and will be looking for a place to unload their dollars. They will likely unload those dollars back in the USA by purchasing real estate or buying up whatever small amount of industry is left here. This doesn’t happen overnight, it’s simply too big, but unless something akin to the wise moves made during the Nixon admin’s in 74 to broker a deal with the Saudi’s to only sell oil in US dollars is done, our dollar is in serious trouble over the course of the next couple decades. I don’t see our politicians making the unpopular moves to stabilize the dollar, so it will continue to loose its footing. There will be a point at which this is broadly observed and that will accelerate this process well beyond the means of the government to shore up whatever is left. Only moves I can see for the general public are not to take on debt.
It's hard to imagine that this guy is that clueless about the difference between America nd Japan, but portfolio managers tend to have a way of thinking about things that lets them keep buying and selling stocks on behalf of their clients while still sleeping at night and thinking they are good Christians.
Very well put! The dollar is in trouble and we don’t have any industry because we exported it all to the 3rd world countries that now are turning their backs on us. American was the one the refined oil and made the Gulf Countries filthy rich. They did the same thing with technology and manufacturing, they exported it all to China! Pretty much gutted the whole America and it’s innovation and industry! It’s a bumpy road ahead and God have a mercy!
My issue with the comparison is that fundamental cultural differences between Americans and the Japanese. The bank of Japan tried to spur inflation but was largely unsuccessful because the population and corporations were stubborn savers and wouldn’t spend the yen into the economy. Americans for the most part don’t have that problem
I wonder how they would respond to the idea that inflation isn’t an increase in prices but an increase in the money supply. My understanding is that rising prices is a symptom of inflation not inflation itself.
There is 2 types of inflation. Monetary inflation and price inflation. Monetary inflation can lead to price inflation but the real crime is fractional reserve banking,
@@daltonbrasier5491 I agree. I think it’s the worst part of monetary inflation is the reality of fraction reserve lending and no one talks about it, or even know it happens.
My experience can't be a textbook. But my experience can't be discounted. They print money, prices of things that I need go up, but my wages don't go up. When you ask for a raise you get some story about how times are tough right now and material prices are through the roof. When you do freelance work on the side you might be able to get away with charging a little more, but since my customers are facing higher prices at the pump, grocery store, etc, too, it's easy to go ahead and price myself out of getting any side work to speak of. Maybe this doesn't mean "give up and go home," but surely it also doesn't mean "trust the grown ups, the printers are supposed to be running round the clock."
I think this video was hit and miss as it went from point to point. Monetary inflation is NOT market pricing. Stop conflating these terms. This is part of the game that is played to dismiss the damage done to savings and future economic growth. Inflation does of course have an effect, but it is not the only contributing factor. Pricing is affected by all the forces of the free market plus interference in the market (such as intefering with free choice through threat of force, ie. any government action). This means that while the dollar supply is inflating (increased total supply of currency), some items will be cheaper to buy and some will be more expensive (market prices still go up and down). Some things having a lower price does not mean that your dollars are a stable store of value across time or make it ok that the dollar supply can be increased effortlessly. The natural result of a growing economy is to continually produce more goods more cheaply. If the currency value was stable, then prices would generally decrease across the board due to the bounty of the growing economy and the increased production efficiencies. Inflation is both caused by debt and also strongly incentivices indebtedness. The dollar is a debt note, fractional reserve banking, inflating away debt, etc. And here's a math question for you: if the money supply is increased by 5% per year, how many years will it take for the money supply to double? (the answer is not 20 btw). I do not expect to see hyper inflation of the US dollar, since even devestating levels of infaltion rarely are as bad as hyperinflation(defined as 50% month over month). Unfortunately the waters get muddied by people not using standard defintions. Somone who says hyperinflation might be refering to an annual 20% increase for example. Regardless, I'm still going to work dilegently to reduce the harm being done by high inflation. I agree that a catastrophic Wiemar Republic inflationary situation is not happening here. But it's not unusual for third world countries to suffer devastation from high inflation, Venezuela recently for example. This video failed big time when it set out to discuss inflation and did not mention the performance of the currency as a store of value over time. You can't increase the supply of dollars in circulation without decreasing the value of each dollar. He mentioned government subsidies in 3 areas and then didn't mention how the federeral reserve has basically been backstopping the bond market. If they weren't buying bonds in a roundabout way, then interest rates on bonds would be higher. So pointing to the low bond rates as a sign of the stability of the value of the dollar is a careless analysis. Also factor in things like how bonds are bought by pension plans that have requirements to hold a certain percentage in bonds and you see another example of the bond market being manipulated. Pointing out how healthcare, college tuition, and housing are being manipulated and then failing to note how the bond market is manipulated is bizzare. There were things I agree with though. They indicated some people are looking for an excuse to not go create something and be productive. Bang on. Inflation of the money supply being a horrible policy does not mean you don't have a responsibility to be productive. I believe the bible says we will be accountable for how we use what the Lord has given. As such, I also agree that sitting on a hoard of gold like a dragon is not in obedience to God. But there are nuances, and generational savings in some form are a part of wise money management. Saving up large amounts of capital is what made the huge economic developments of the 19th century possible. Keynesian economists are bone headed about this and hate savings. Foolishness. Savings result in less spending short term of course, but lead to far higher spending (increased GDP) long term. Unless of course your savings are being eaten, not by moths, but by the creation of additional dollars. Creating wealth without effort, as the dollar creators do for themselves, is a barbaric evil that materially harms many, including those of us who are obedient stewards. That is a problem I hope Doug will directly address, since he is speaking and writing on this topic. I will close by saying that while material harm and government manipulation of markets and currency is something that the wise seek to understand, you can't take it with you, and salvation is more important than money.
Portfolio managers always have huge blind spots because they make their living off of convincing people to buy stocks, and therefore they have to believe the market will continue to go up over time. You can't just pretend to believe, people can tell. David is a successful financial salesman, not an honest broker here. There are simply some things he literally can't allow himself to see, or he will have to quit what he's doing. Hyperinflation may or may not happen, but the dollar isn't in a good place. It's value isn't tied to American productivity - that's not a thing, America just financializes things now, rather than producing them - but rather to its status as reserve currency. It looks like we're going to have to get in yet another shooting war to protect that status though, as Russia and China are making all kinds of deals to buy and sell oil and gas in rubles and yuan. It's too bad Doug and David didn't have time to discuss that. For now, it seems to me that the best investments are skills, relationships, tools, land, and livestock, in that order. Having some precious metals for liquidity purposes is good too. It's difficult to make a Christian case for having anything whatsoever to do with the stock market.
"He mentioned government subsidies in 3 areas and then didn't mention how the federeral reserve has basically been backstopping the bond market. If they weren't buying bonds in a roundabout way, then interest rates on bonds would be higher. So pointing to the low bond rates as a sign of the stability of the value of the dollar is a careless analysis. Also factor in things like how bonds are bought by pension plans that have requirements to hold a certain percentage in bonds and you see another example of the bond market being manipulated." Great point. Highlighting this, hopefully we can get a response.
Thank you for the depth of your response, specifically about bonds, and second about the need to be productive ourselves. Re: bonds, I haven't been able to explain the low bond interest rates--even negative real interest rates--for years now, but knew there was manipulation and something was amiss, and that it was not a real indicator of a healthy economy. Smoke and mirrors.
@@bama97i double yikes. Graham is a snake of the highest order and Cheney, well, the name itself should tell ya all you need to know, but she’s cut out her own reasons for opposing her.
Inflation is an expansion of the money supply, not a rise in prices, as explained by economists of the Austrian tradition. Inflation is indisputably occurring if you define your terms correctly.
@@paulhagen1002 I think i disagree with you there, in that if the money supply is stable and the economy is growing, then the price of goods should be decreasing relative to wages. So yes, even if the prices and wages are maintaining a stable ratio, inflation is causing a rise in prices because they would naturally be decreasing not staying at the same price.
@@paulhagen1002 Not my definition, but besides that, it matters for many reasons. The first and most important reason is because counterfeiting money is a sin. Isaiah 1:22 "Your silver has become dross, your best wine mixed with water." Artificially creating money debases the value of what already exists (whether by coin clipping, mixing silver with tin, printing paper notes without anything to back them, or just created on a balance sheet). It is theft, independent of whether actual prices are seen to go up or down--it is possible for people to be so innovative that they outpace inflation with their productivity and prices still go down. But it is still theft, and it matters.
Inflation is not one number. A House in the suburbs, A Harvard Education, A New York City Flat, A movie collection, A Dominos pizza. It all needs to be tracked over time individually. Then you can get a large picture. The quality of food has deteriorated under a FIAT standard no question.
I would recommend listening to some podcasts by George Gammon, Lynette Zang, Mark Moss, Peter Schiff and a few others. Would also recommend reading The Fourth Turning. And research the Malthusian depopulation agenda of The World Economic Forum.
And Heresy Financial. I saw Mark Moss and Joe Brown update their strategy based on what they are seeing. They weren’t“Uncle Wyatt” types early on. There’s more to it than being abundance minded vs scarcity minded
This is a conversation between two people that have no idea what they're talking about. I'm not being hyperbolic when I say that. It's like two people talking about calculus who don't understand addition. Inflation isn't rising prices. Inflation is an increase in the supply of fiat currency. It's the "printing" of currency. Rising prices are a result of inflation, not inflation itself. Inflation is plainly the fault of the issuer of the fiat currency; in the United States that's the Federal Reserve. Inflation is a wealth transfer mechanism from people who hold already existing fiat currency units to those who 'print' new fiat currency units and then spend it. Basically, governments 'print' fiat currency into existence and spend it, and the purchasing power they gained from doing so was stolen from everyone who already owned that fiat currency which is then devalued by the increase of its supply. When everything is going up in price all at the same time it's not that everything is collectively becoming more expensive, although it can be that in addition to the following, its that the fiat currency unit of measurement you're measuring the price of things in is itself losing value. Imagine trying to measure the length of something if the length of an inch became shorter and shorter; that's like trying to measure the price of something in a fiat currency. To deny the existence of inflation right now is lunacy. To suggest we haven't been experiencing inflation every year for the past century or so is a rejection of reality. It all stems from thinking inflation is rising prices instead of what it truly is, the increase in the supply of fiat currency.
Mike Maloney correctly pointed out that from 12/15/21 to 2/1/22 the national debt went from $29T to $30T, an extrapolated annual inflation rate of 25%, also known as hyperinflation.
They didn't say a word about usury, or the petrodollar, or the financialization of the economy. This video was on par with Doug's "analysis" of the Ukraine situation in its intellectual and moral bankruptcy.
I would recommend folks look into austrian business cycle theory and Ludwig von Mises' work on inflation. His book, "Human Action" is a great starting point. Murray Rothbard has good work on the topic as well.
As a stay at home mom living pay check to pay check in America, surrounded by others in the same boat, I find it hard to believe that commodity prices are not up. Our budgets are being destroyed. We can get much less for our budgets than we could a few months ago and it's getting worse. Some of us buy the same things every week and so the change is very apparent and alarming. It isn't new over the last 4 weeks either. This has been a trend. Also, where I live, IF you can go out to eat the wait is ridiculous and half of the tables are empty because they are so low staff. If the unemployment is low where are all the workers we had before?
Doug and Dave don't live in the same world that you do. Food is not a significant part of their budgets compared to you. The government also constantly rearranges the basket of goods they use to track inflation to make it seem better than it is, and they're still saying like 8 or 10 per cent. Sadly, Doug has revealed himself to be a total fool with this video.
He missed stocks and assets (Wall Street and banks). Those are bailed out via Gov subsidies in conjunction with zero interest rate loans. David needs to add a 4th category to his list of 3. Stock growth has matched monetary expansion (Gov control) over the last 50 years. After adjusting for monetary expansion (money printing) the total market growth over the last 50 years is only 8%. Otherwise I agree with his points (he is just omitting the obvious solution/resolution to this: BTC)
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What is said about government subsidy causing inflation around the 18 minute mark is demonstrably true, and also now applicable to the telecommunications market. Every year my internet service provider raises my rate 20-40%. I call them up and say that if the price is going to increase, I will be moving to another provider who is offering service at or below my previous rate. They relent annually and decrease my rate to a level that is near the previous year. This year I received an unprecedented 50% rate increase. When I called my provider, they refused to do anything substantial about the rate hike. I discovered that this is due to an increase in the number of people who qualify for a $30 per month credit from the emergency broadband benefit, a federal subsidy. The subsidy disincentivized competition by guaranteeing internet providers a baseline of $30 per month, leading to an increase in the price of services and the profits of the telecommunications giants that lobbied for the subsidy.
I agree with some things, like that our inflation is likely to become deflationary long term, just wait until they really raise interest rates, but I think much of this is off base. People have these attitudes because of actual physical forces at work. I am getting destroyed by inflation right now and have been watching effective prices in things like food for up for years. Just because the government plays accounting games to hide inflationary forces doesn't mean they aren't there. The fact is that there isn't a safe place for money, so the bond market is a as good as any. Look at all these normies putting money in crypto. This is people increasingly for years realizing there's a problem and scrambling to find some solution, even if it's another bad one. And yes, the government does squash little business. Just look what they do to startups like parler... Not everything is as equally controlled by the government, but most things are heavily impacted. The underlying issue, like on all the other stuff, has to be a God brought revival. Unless the church changes, and culture changes and politics changes, then we aren't going to get anywhere long term. So we should be acting, but we need morality and sanity, and hard money is still part of that sanity.
How can you get "hard Money" from a fiat currency that is owned by a non-governmental agency/private central bank that charges interest on money that was supposed to be under the control of we the people thru congress and minted and put into circulation at ZERO interest, because who would ever charge interest to themselves? needlessly. End the Fed Res and you change the game completely. They stole it in 1913 unconstitutionally anyway. And we just keep playing their game by their invented rules.
Anyone who suggests deflation has no idea what they're talking about. 1: Inflation is an increase in the supply of fiat currency. Our supplies of fiat currency not only aren't going down but literally cannot stop going up dramatically without the whole system collapsing. 2: Interest rates can't go up in any meaningful way without collapsing the whole system. There is so much debt in the system that if the 10y treasury yeild, which is the basis for pretty much every other yield in the entire economy, went up in any meaningful way then the US government and the majority of US companies would default from being unable to pay the interest on their absolutely massive debts. Not only can't interest rates go up without collapsing the system, but the system can't refrain from collapsing without massive amounts of inflation and the rising prices that come as a result of inflation. There is so much debt in the system that it's inflate or die. 3: There is a safe place for your purchasing power: precious metals. Every other financial asset that isn't a precious metal is just someone else's promise. Only precious metals are wealth and payment in it of themselves.
@@LawlessNate Agreed, raising rates will collapse the system, but they are having to choose between two poisons at this point. They can choose a deflationary path, but it will be painful. Precious metals aren't secure because people don't trust the government to let them act in competition with the government in such a case. It wouldn't even be the first time our own government made them illegal. In the long run, hard money is necessary for a healthy system, but in the short term, it may not be an effective asset. Personally, I think the best one can do at the moment is go for putting wealth in long term valuable items which can be used or stored. Kind of like the Medici option to financial security.
@@LawlessNate actually there is both and supply and demand side to inflation. Inflation is the rate of change at which money exchanges for goods and services (too many chasing too few). 10x more money, 1000x more services (netflix), its still deflationary. That's what hes getting at with the velocity argument. Inflation as we normally experience is primarily the result of the fractional reserve banking system. Lately, the shocks have come via supply shortages of goods. This will continue. Yes, there is a ton of fiat out there. Yes, we are seeing a much higher risk-off beta to precious metals relative to treasuries (historically). We shall see what happens in big liquidity event. Agree with you on 2&3.
This was a helpful framing of the conversation, although I do think on the topic of government interference they missed some of the key developments in the last 2 years (maybe the book covers this... I'll have to buy a copy). I have been feeling the tension in my own life of wanting to build a business, specifically in food service / coffee, but also feeling the threat of declining consumer demand should true stag-flation set in paired with living in Michigan, which has shown itself to be more than willing to shut down free operation of businesses for the cause of "safety." God is my provider, so I recognize that this fear in me is not particularly appropriate, but the thought of "going for it" only to have a new lockdown announced for a farcical crisis that crushes my investment and destroys the financial position of my family is something I think about more than I would like to admit. All that said, Caleb saw the giants and believed that they would overcome, so I too must have faith so I can have the promise. I don't want to be someone who speaks of faith and hope, but lives in fear and self-protection. Thanks for the thought provoking discussion, Doug and David!
@Bezalel Jaeger 308 yeah I think shutting down for like…2 months….wasn’t that extreme and was common sense in the face a Chinese bioweapon (lol) was warranted. He stated MI had too heavy of restrictions. They weren’t. Wasn’t bad at all.
@@DM-dk7js I'm not sure where you're getting the 2 month shutdown from? Here in Wayne County we had gyms and many food services businesses closed or at reduced capacity limits for over 6 months. Michigan was among the most extreme states in the nation, which is why the Unlock Michigan petition was created and passed in record time to remove the unlimited emergency powers from the governor.
How they don’t factor in that our entire monetary house is built upon the sand is amazing. You can’t reason well or accurately predict anything if you believe the fake system that underlying it all is immortal.
Also, it seems to me that all this talk is about nationwide economic theory and how to deal on a national level. What is needed is INDIVIDUAL creation of wealth and the heart/mind renewal to keep it. That’s what makes some individuals rich while so many others are not.
Hey Doug and David, I have heard this term in several of your talks and I am less educated or ignorant of the term Kiperian or Kiprian. When I looked it up it gave me some guy named Boris. Can anyone give me a definition? Also, I love the simple equations you gave and the Uncle Wyatt example. I agree that we need to create a good economy not hoard one!
They’re talking about Abraham Kuyper, a Dutch theologian and the country’s former prime minister. He was a Calvinist known for his views on the interaction between Christianity and culture.
How about public schooling k-12 as a major sector that the government has interfered with? That has to be a huge number that is a waste of money. Especially considering the product that we're getting for it.
Might be a dumb statement but doesn’t the Fed buy bonds manipulating the system. What if people buying bonds knew the govt would always be there to buy them back in a economy downfall. Like the govt does in bail outs.
You're exactly right, as many are pointing out in the comments here. He also doesn't mention the insane price inflation of stocks, e.g. Tesla and Google and Amazon. This is the worst video since the one on Ukraine.
The problem with buying bonds today is that you have to look at what that money is going to be worth 10 years from now. When you buy a bond, you're giving up the opportunity to buy something with your money today in order to lend it to somebody else. Ideally, this would work because the borrower would be paying you for the service of loaning him that money. But we have inflation right now. Inflation eats away your purchasing power over time which means you want to charge a higher rate of interest to compensate for that loss. The problem is that the Fed is continually manipulating the bond market to lower interest rates. The Fed buys tens of billions of bonds every month in order to reduce interest rates. The idea is that lower interest rates encourage people and companies to spend more money, adding to demand for goods and services and stimulating production and employment. The problem today is that the U.S. economy is currently operating far below capacity. There are millions of unemployed workers right now, plus millions more who are working part-time but want full-time jobs. Due these conditions, employers are having to increase wages and hiring bonuses. However, those come at costs which will be covered by increases in prices which consumers will pay for whatever those companies produce. Hence we are in "stagflation" crisis.
Inflation is defined as an increase in the supply of circulating currency. Based on that definition, we absolutely have inflation. We can't always relate the increase of circulating financial media to a general increase in the level of prices, but inflation is till present. Inflation is never defined as rising prices, because rising prices can be caused by all kinds of things, inflation being one of them. Inflation is always defined in terms of the financial media in circulation. Whether we go with a bang or with a whimper is largely based on the response of our money masters. If they inflate like there's no tomorrow, it will be with a bang. A lot depends on what they actually do. I don't think the signs are all that encouraging, frankly. Hope for the best, but prepare for the worst. I do have to give him the benefit of the doubt, however. I had a hunch that he was related to Greg Bahnsen, and I was right. Maybe he does deserve a wider hearing.
Wealth is material goods. It is tangible. All the constructs of man (corporations, financials, banknotes, credit, fractional reserve, inflation, deflation, etc) are based on sin and false foundations. Commodities have value. Items backed 100% by commodities have value. Labor has value. That's it. And so, while many get filthy rich off of the financial games they have set up and the schemes to defraud their fellow man, these things have no lawful business in a Kingdom view. Equal weights and just measures, commanded. Just Shekel, commanded. Usery, prohibited. Debt, to be cancelled. Slavery, prohibited or for a limited term. Labor, promptly compensated. Borrowing, a mark of a fool. Private property and land, inalienable. Stolen goods, restored manifold. You see, if the church honored the Father's instruction instead of "nailing it to the cross" for the better half of the last 2 centuries, we would not be seeing the circling of the drain that has been this post-modern America.
The only problem with the inflation statement that I see is the fact that the government subsidizes far more than just the 3 listed. Example agriculture, automobiles, oil, “green” energy, water, big business, small business, foreign countries, farming exports, imports and exports, education at all levels and every American in the form of government hand outs/ Covid stay home, don’t work checks. So by what David Bahnsen said all will be affected by inflation. Am I wrong?
I'll have to scratch my head and think about this. It's too different from my assumptions for me to give it a knee jerk reaction. Well done interview. Thanks!
Been listening to the book on Canon+ and I’m in agreement with a lot of what is being said. Also he’s completely right that the doomsayers have been wrong for decades. However he says we’re going to be going though Japanification and look to the bond market. The bond market has been a bloodbath for the first quarter, you lost more in bonds then stocks. Then the Japanese Yen has fallen off a cliff in value due to direct yield control, so with the timing of the release I wonder if the book is going to age like warm milk or not I have finished the book, and I agree wealth creation and entrepreneurship is paramount. My major criticisms are these: 1. There is a time when you have to be out of the market, and considering that valuations and debts are to the moon that time is probably now. 2. Yes debt is deflationary to we mere mortals that have to pay it off, but the government and the Fed has other options. Yes if nature took its course a recession would create deflation but does anyone think the Fed will sit back and do nothing? The Fed will do more QE and control yields to save the economy, with more besides like directly buying equities. 3. The author simultaneously says systems are complex but we’re going to be just like Japan, as if the US with the global currency and high savings Japan will be the same way. Besides right now the yen is cratering, which is inflation, as Japan is now forced to directly control the yield by buying unlimited bonds. 4. The history of all historical fiat currencies is eventually they go to zero, the problem we all have is the timing, a gold bug during the 08 crisis who bought at the peak would have lost. Gold is an investable asset and even if the world doesn’t end commodities are probably going to have a decade long bull run as globalization brakes down
@@ter8330 Gold is like insurance, it’s for when everything else breaks you still have purchasing power. Silver is the same, but can be used for far smaller transactions. If used as insurance it should be held physically in your own possession.
I think if we talk about money and wealth we should pay closer attention to how God wants us to live. Psalm 15 verses 1&5 O Lord, who shall sojourn in thy tent? Who shall dwell on thy holy hill? 5 who does not put out his money at interest, and does not take a bribe against the innocent. He who does these things shall never be moved.
Interesting discussion. Inflation has many different faces to it. Over the past centuries each wave of inflation took place for various reasons. There is not one set formula for inflation. The inflation we are experiencing today is brought on by supply and production issues. Be it oil, wheat, lumber, meat, cars or tech we are in short supply of these things. Now there is not one reason that we can point to as a single cause to this, but when you mix Covid shut downs with government over restricting oil production, and war between two countries that are responsible for a good chunk of the world’s food production you have the formula for potentially very high inflation. This should have been the basis of the discussion.
The zeitgeist of our culture is changing definitions for everything. There is no such thing as food inflation or gas inflation. Inflation is an expansion of the money supply. The money has increased which means there is inflation, the fact that there is deflation in certain commodities doesn't negate this. I don't mean to be rude but I don't think either one of them have a deep understanding of economics. We will reap what we sow because God is just.
David Bahnsen is a billionaire hedge fund manager with offices in Newport Beach, New York and Nashville. He understands economics. That doesn’t mean he’s right about what he’s saying here, though.
@@jasonmartin1712 David Bahnsen sells stocks and other investments for a living. He has to believe in them to do that well, so he has a lot of blind spots. It's plainly unchristian and immoral to invest in American stocks at this point, unless you think that creating Amazon wage slaves is somehow Godly work, so you have to a lot of lying to yourself to sleep at night.
Buying gold should be looked at as holding actual money. Holding dollars when your govt is printing them into oblivion is not wise. If you decide to save money instead of being in debt then you should get rid of dollars and put them into something that hedges against ungodly tyrannical govt Fed. Not everyone’s blessed to own own business. Some people must work for employer.
Good conversation as far as it went. But how does the poo-pooing of Uncle Wyatt’s “hard money” mindset align with the biblical condemnation of unequal weights and measures? It seems that “true” (biblical) _money_ has always been some sort of commodity, and it has _never_ been created by debt slavery. Anyone care to help me understand this (apparent) contradiction?
Sure. David is a salesman, and he sells financial instruments, so he has to tell himself a lot of lies to keep his conscience clean. Simple as. Nothing about our system is Christian, nor can it be Christianized in any way. There is no Christian way of investing in companies like Amazon, Google, Ford, Wal Mart, etc, as they are all predicated on the idea of devaluing labor, enslaving populations, and destroying Christian civilization.
Price controls are a socialist policy. Interest rates are a price of money. If you are in favor of the government controlling the interest rates, you are in favor of socialism at the worst level.
May the Lord return quickly!! Amen. God is merciful. He always forgives. Never be ashamed to take your failures to him. He is for you, not against you! God is with you in the storm. He knows your troubles, he hears you! He is for you, on your side, always! It may feel silent at times, but he’s holding you close! May the Lord return soon! We are drawing closer. He is coming! Believe and trust in the Lord, you will be saved. Period. May the Lord bless you all! Hang in there family. Stay strong. It is not easy following the Lord. We are scoffed at. We give up our earthly dreams, our fleshly desires. What the enemy offers is short lived, but heaven is forever! Life may seem or be unfair, but God is with you! Always remember that. Things may get better or worse for you, but a kingdom awaits you! Finish the race! Repent daily and carry your cross. This world is fading fast. Your troubles are temporary! New channel here, I’d appreciate any kind of support. Don’t give up! God loves you so much! So do I. The Lord bless you!
On earth as it is in heaven. That's our JOB while we are here. Don't use Jesus coming back as an excuse to hide from your responsibility of stewardship. God created this earth for us so that we would in turn have fellowship with Him. Endtimesers, sheesh.
ONLY 3 THINGS? WHAT? The fed funds rate is ground floor of the risk free rate of return. FF rate is arbitrary and heavily subsidized. That's an a priori input to something like say how CALPERs (pension fund) is allocated. Investment banking is subsidized, its reallocating like mad through the ESG credit system. Great explanation otherwise! Love you both.
@@harbinger6753 I wouldn’t say that. I think he was trying to (over) simplify a bit. I know DB is seeing the ESG inflation based on some of his public picks. I’m 100% with him on the deflationist camp. Liquidity crisis’s are deflationary… In the end it’s that tension that makes for good hedging and wise risk management. TLT is the move here.
What about people who have precious metals who are disabled? Or poorer or..? There are a host of reasons WHY some people own them. I guess I missed something there.
Can't agree about the Uncle analogy. People who save are not bad people and stifling others growth. Generational wealth is not a sin. This went off the rails at the end.
@@Cinnamonbuns13 is it righteous to invest in American corporations that ship manufacturing overseas, promote the worst forms of degeneracy, drive down the cost of labor, and buy up the public square and ban us from it? What should Christians invest in? What is Bahnsen's portfolio invested in? Is working to constantly grow the economy really the Christian thing to do? The idea of a retirement funded not with children and small family farms and businesses, but with dividends and stock sales and forced labor in the form of social security taxes cannot be seriously seen as a Christian goal. Uncle Wyatt is laying up for winter, and winter is coming. Just because the financial tricksters have so far been able to delay the inevitable doesn't mean that God will be mocked.
@@Cinnamonbuns13 help me out, because the most charitable spin I can put on it is that they mean people should just build their own twitter or wal mart, which is insane. I any this as someone with a small family food business, and it would be madness to invest heavily in trying to make it into anything beyond that at this point. It's clear that the big players can destroy the little guy at will now, and then just buy up the assets for pennies on the dollar. The system is totally fraudulent, top to bottom. I would appreciate you clarifying what you think they meant, because I hope I have an uncle Wyatt somewhere hoarding gold so he can invest in my business when this thing finally comes hurtling down.
When you invent a breakthrough technology it can kick the can down the road. Industrial revolution. Improvements in shipping and transport. Manufacturing efficiencies after World war II. The transistor. The internet the computer and cell phone. We just need a break through technology.. pray for the idea of an epic invention.
Silicon valley gurus have gotten to such a point of success that they actually do have cabins with gold coins in the form of million dollar bunkers and hard assets( land, farms, etc) But, the cart wasn't before the horse. It was more of a benefit from thier productivity rather than an alternative to it.
Was amazon "productive" when they lost money for decades but were constantly provided with funding because the people buying it knew eventually they would be successful in destroying their competitors by undercutting their prices and subsidizing their shipping with the USPS? Is that what passes for productivity now? Or Twitter and Facebook doing essentially the same thing, just with the intent of monetizing the details of tour life for advertisers? Christians who invested in these companies and sold out their children for this hellish nightmare have some repenting to do. I wonder how much Facebook, Amazon, and Google stock David has in his clients' portfolios.
A lot of the smaller tech companies while not actively lobbying for the types of cronyism laws the big tech companies are they still are actively benefiting from those laws. One example is anti-discrimination and other woke laws that conservatives can't coexist with.
Here is the problem. It's a both and. Not and either or. I'm 29 I see what is coming I prep the homestead, I build the herds of animals and strive to be energy independent on-site. Building community with believers at aims to be secure if and when the time comes. All while operating a business with alot of interest toward it that is in growth mode. I don't subscribe to rapture stuff at all.
Increase in prices driven my a reduction in supply and/or an increase in demand. But people often use the word inflation as a synonym for currency debasement which is what drives most cost increases. And this conversation is no exception, most of their references to inflation are actually referring to currency debasement (leading to hyper inflation).
I don't believe it's an inconsistency to build while being a pre millinialist. I'm no longer of that persuasion, though I'm not post mill neither, I believe we are in the millinial kingdom, I also believe it's not just spiritual as well. But the scriptures teach us it's imminent and also, that only the Father knows. That we should be working until He comes again in Glory. So it's not inconsistent. I believe those who are of the belief, and just shrink back, are the ones being inconsistent with scripture, and really should read the word of God more.
I'm not sure where these two gentlemen have been over the last 20+ years. Gold has performed splendidly while the cost of living for the common man has increased markedly. The USD's place in the world has slowly ebbed too. Most recently, the USD's reserve currency status took a huge hit when the Biden Administration imposed sanctions on Russia. This showed that currency reserves accumulated by central banks can be easily taken away. Yes, fiat money is doomed. See Ludwig von Mises.
Completely out of touch. "Inflation is a perfectly legal way to pay debts. You can't pay someone 50cents when you owe them a dollar. You can pay them a dollar worth only 50 cents" "LEGAL" Doesn't God hate unjust weights and measures? That's what my bible says. Telling that Doug mentioned William F Buckley at the start of this video.
Seems to me that despite enormous government regulations, debt, and other foolish economic practices, capitalism works so well that the terrible consequences are mitigated.
@John Paul Tell that to a person who is making $18.00 an hour!’ That’s what I was just offered to be a Metadata Analyst. Yeepie hurray for Capitalism!!
@@jarredpetroff6659 The Capitalist system works well when we allow the markets to do what markets do. Capitalism does not work well when markets are rigged or in other words when losers get bailed out. The idea of Capitalism is that it’s a circle. What goes around comes around. In capitalism there are always winners and losers, but if the system is hijacked so that winners stay winners all the time, andddddd wealth is accumulated for those winners then they will do anything to stay winners. Example Koch brothers. Just one example.
These idiots apparently have no idea what is coming. Just because the financial lords of our civilization have been able to postpone the inevitable so far doesn't mean they will be able to forever. God is not mocked, but Doug Wilson and David Bahnsen will be.
Our economic structure which still has corporate & stock market deregulations in place from Reaganomics (1981) creates the ability to ignore demand or more specifically the lack of. Demand & the need for empowered consumers has always been the check & balance on wages & centralized wealth not flowing back into the system. Every sustainable economic system (every economy) must b self sustaining. Meaning it must b a figure 8 or a circle O……otherwise, the result is a snake eating its own tale. To keep this short I have one basic analogy but remember its the basic principle that Im pointing to. When Ford (the car manufacturer) reported record gains & became a massive influence within the national economy, when he became very wealthy, almost every driver in the world was driving a Model T. Elon Musk has been supposedly transforming the electric car landscape for a decade now, has earned billions, is now the second wealthiest man in the world & yet in average communities across America, we still do not see Tesla cars dominating the consumer landscape. The ability to access stock buy backs, the ability for corporations to have unlimited amount of companies sheltered under one umbrella which then can either A/buy up the competition or B/ starve out the competition by taking a loss in one market while sustaining on profits from another, both (as well as other ways i am probably ignorant of) provide market manipulation that can ignore the traditional basic economic principles that have always guided our system prior to 1981. U dont need a lot of empowered consumers if u can charge more to fewer consumers because u have no competition. U dont need to increase wages if u dont need consumers to create profit/gains, such as using stock buy backs. The modern corporate player is taking less risk (by avoiding expansion that could fail) & increasing gains faster with less over head (no marketing costs, no labor costs associated with customer service, etc) & r making more money faster while the middle class shrinks. What does that tell u?? But we cant blame the corporate greed. It has always been an essential part of economics, what we need to face is that these economic results r not mysterious. They r what they always r: a reaction to an action. We must demand that economic regulations b put back into place as they were prior to Reaganomics. Middle out economics with those regulations in place will absolutely put us back on track & create a slow but steady & consistent march back to the 1950’s & 60’s era economic landscape.
To ask "where did all the inflation go?" in this environment of 8-14% inflation betrays either a signifanct simplicity of thinking, or unwillingness to think things through at a deep level. All one needs to do is look at the devaluation of the dollar since 1913, which is at 97% as of Sept 2022. To conclude that because the dollar hasn't yet hyperinflated therefore it's not going to betrays an evident inability to apply the laws of logic, a severe historical ignorance of the economic history of large empires, and significant misunderstanding of the nature of fiat currency. It is mind boggling that Wilson could claim to be an intellectual and not have looked into this, nor what Bitcoin is about such that he dismisses it with a waive of the hand. It is also mind-boggling that he could claim to be a libertarian and at the same time miss at every point the completely libertarian nature of BTC. It is like somebody threw him a girly, slow softball pitch and he not only missed it, he got distracted by the ice cream man by the bleachers. The information age is truly separating the men from the boys. I don't think Bahnsen was the best choice to interview as an authority on this either. He's a super smart guy and a heavyweight within the current model of financial services, but also has regular time slots with the legacy left-wing media that I expect he doesn't want to lose. Therefore the incentive structure to say that hyperinflation is ultimately inevitable or that Bitcoin is an alternative to the destruction fiat has caused simply doesn't exist for him. If he said that he'd lose his time slots, just like if he'd have said there was voter fraud in the 2020 election. He adamantly denied there was any. There are deeper, more independent thinkers Wilson could have interviewed, like Robert Breedlove or Robert Malone. However, this would force a shift out of what I gather is Wilson's current way of thinking and the model in which it appears he lives, and it doesnt look like he has any incentive to make that change. After this interview he seems less like a thoughtful disciplined intellectual and more like a surface level pundit. He does deserve credit in that he started a great classical Christian school movement, but given his attitude and what the information age is doing for us, his time appears to be coming to a close.
As I recall... in the parable Jesus told, the servant who buried his coin under a rock was chastised by his master. Maybe Uncle Wyatt should re-read Matthew 25.
Yeah he should have bought Amazon stock instead so Jeff Bwzos, who hates Christ and His people, could buy more slaves and destroy more Christian owned small businesses.
In this episode of Making Sense of Madness with Sean Morgan, Matt Ehret and Josh Reid were invited to discuss the question of China and Russia's role in the Great Reset, and the emerging fight over multipolar systems of win-win cooperation vs unipolar systems of Anglo-American hegemony Follow Making Sense of Madness on MSOM main Rumble channel: @t
@@LawlessNate The banks are able to own and control the metals market and the price like a Criminal cartel the markets are centralized. The actual held supplies are unknowable and get rehypothicated to high heaven beyond the actual supply. Likewise they are all subject to constant supply inflation (unlike bitcoin). I could give 10 more reasons but those are a few problems that bitcoin solves that metals cant. But atleast we agree on the nature of the solution. Keep learning and you will eventually agree.
@@LawlessNate Maybe a simplified response would be: metals and metal markets are dishonest, centralized, government controlled and confiscatable. BTC is honest, decentralized, non-controlled, trustless, freedom promoting, non-confiscatable, productivity promoting goodness (with a learning curve).
@@JP_21M If you don't understand that the banks ALSO control the price of Bitcoin through futures markets in the exact same way they manipulate the precious metals markets you're not paying attention. Canada proved that if you can keep people from exchanging their BTC for fiat currency you make it effectively worthless because there are next to no companies willing to accept BTC directly as payment and even if there were they're under the same government obligation to refuse service to blacklisted addresses.
@@KevinVanGelder I do understand that the futures market influences the short term price. And obviously those with the most capital will have a large influnence on price but in the case of gold the price is not "influenced" it appears to be completely controlled and there is no way to validate the actual supply as opposed to BTC. My main argument there is that the metals market is dishonest and more prone to lies and corruption than an immutable open public ledger like BTC but yes there can be bad actors in both markets. Your second point is mostly true but silly and irrelevant. Canadians Truckers had no way to use their banks or precious metals while they could freely trade BTC and their only constraint was retailers acvepting it. Thats like saying the internet will never be a thing because your dial up connection prevents you from using your home phone. In the same way your concern about usability will become irrelevant.
Since the days of the protestant work ethic and the rise of Capitalism humanity's ambition has given us the potential for creating paradise on earth without God. Genetics has given us the means to change what has messed up in the womb and we might even be able to extend life! We have the potential to create a society and a technological world where no one has need, where there is no sickness or pain. We were promised that we will be like gods and here we are. And it is all thanks to a monetary system. Could it be possible that because of the fall we are supposed to recreate our godlike state that we lost. It is out punishment. That is why we need a biblical work ethic to so that we can utilize our drive and ambition to recreate the conditions that Adam and Eve lost. Just a thought.
I am perplexed by the statement, "If you want to understand real inflation, look at the bond market". No my friend, if you want to understand real inflation, look at the grocery store. I fear this video is not aware of the extreme pain that is beginning to be felt by the common man to absorb increasing food, fuel, energy and health care costs. I live in Africa, and the cost of corn and cooking oil have doubled in the last few months, and those trying to survive day to day on day labor are to the point of not being able to afford cooking oil, and are now trying to survive on boiled corn mash. Much of this part of the continent survives on 'Chapati', an oily flatbread sold by street vendors. Vendors tried to increase Chapati prices, but market could not bear the price increase, so vendors were forced to start making the bread half the size. Now those who were barely surviving have had their calories cut in half. Frustration levels are reaching a boiling point, and seems things are teetering on disruption as people simply are no longer able to feed themselves. Perhaps it is not as apparent in the West yet, as there are still some elasticity in the system, but I fear it will show up soon enough. I am not part of some apocalyptic world view, but I am living it and seeing it day by day where I live.
Thank you, brother Paul. Everyone read this comment.
Exactly. Economic catastrophe is not the same as end of the world thinking. It's just looking at the past and seeing the same mistakes. Grocery prices have been creeping up for a long time in America. A lot of it has been hidden by decreasing product sizes.
I think they answered this, didn't they?
@@WinterSoldier-dy2qc not if we teach them how to farm and if someone stops their conflicts. they have beautiful, rich land but not all of it is being used well to feed their people.
Look at the bond market IS correct. As far as inflation, a better way perhaps is here in the U.S. the dollar's value is falling. We are entering stagflation/dragflation.. That's how I look at it.
I want to buy this book, but because of inflation, I can no longer afford it.
Lol!
I really appreciatesd Mr. Bahnsen showing respect to Pastor Wilson by referring to him as Pastor throughout the interview. That says a lot about Mr. Bahnsen's character.
This was very informative and enlightening. I hope that there will be more.
But I have to ask Pastor Wilson why I cannot be an obedient Kypreian and be Pre-millennial? Just because I need to be prepared for His imminent return does not preclude His commandment to be fruitful. Otherwise, we would fall into the same nutty arguments about why should we evangelize if God has already predestined those who will be His. Why? Because He commanded us to AND it all fits into His plan to which we either obediently and lovingly submit or submit unwillingly in sin.
God bless and keep you both!
Maranatha!
You know who was raised a Presbyterian? Chris Hedges....his father was a minister. Does Calvinist Philosophy produce atheists or humanists?
Chris Hedges wrote the book: "American Fascists: The Christian Right and the War on America" When I saw he wrote a book and that he was raised a ministers son, I knew he was raised Presbyterian. It creates such hateful people towards Christians once they understand the theology, don't you think.
Hedges, who grew up in rural parishes in upstate New York where his father was a Presbyterian pastor, attacks the movement as someone steeped in the Bible and Christian tradition. He points to the hundreds of senators and members of Congress who have earned between 80 and 100 percent approval ratings from the three most influential Christian Right advocacy groups as one of many signs that the movement is burrowing deep inside the American government to subvert it. The movement's call to dismantle the wall between church and state and the intolerance it preaches against all who do not conform to its warped vision of a Christian America are pumped into tens of millions of American homes through Christian television and radio stations, as well as reinforced through the curriculum in Christian schools. The movement's yearning for apocalyptic violence and its assault on dispassionate, intellectual inquiry are laying the foundation for a new, frightening America.
Why are Calvinist such wimps and given over to woke culture so easily?
This was exceptional. Great discussion.
We have a problem of definitions with inflation. Inflation is really an expansion of money supply, not rising prices. Rising prices can result from money supply expansion, but don’t have to. Often times rising productivity would otherwise cause LOWER prices, but inflation (money supply expansion) maintains price levels. So productivity and technology growth can mask the damage being done for quite a while. Additionally that expansion of money supply transfers wealth around (usually to those in control of its expansion).
It’s unequal weights and measures on a massive scale.
What happened to my reply for 10 minutes ago? --I came here to write the same thing about inflation, but you beat me to the punch. Inflation is an increase in the money supply.
I bounce between many camps on this and it's just so complicated. The point about the bond market for example, the fed has been buying up government bonds when the market hasn't stepped in at the right price thus keeping interest rates artificially low.
At the same time, because we have trade deficits we are exporting American dollars overseas in the hundreds of billions each year and that has a deflationary effect. This has been limited by supply chain issues.
How will all.these factors play out? I have no clue but I am working to grow my business, make smart investments and build a stockpile of wisdom for the generations after me in my family.
Great interview! This is so informative and prescient, thank you.
This did make a difference in the way I've been thinking and making decisions.
There’s a big difference between Japan and the US, principally that the US Dollar is a reserve currency, so when the money supply is expanded it has global effects of inflation well beyond its borders. This allows the inflation to be spread out so we are partly insulated from its effects.
Eastern countries are wise to this, they are in positions to start doing something about it. It will still take years, but the position of the US dollar as THE world reserve currency is loosing its foothold. And the nations that hold large reserves of the US dollar are starting to go outside the dollar for trade and will be looking for a place to unload their dollars.
They will likely unload those dollars back in the USA by purchasing real estate or buying up whatever small amount of industry is left here. This doesn’t happen overnight, it’s simply too big, but unless something akin to the wise moves made during the Nixon admin’s in 74 to broker a deal with the Saudi’s to only sell oil in US dollars is done, our dollar is in serious trouble over the course of the next couple decades. I don’t see our politicians making the unpopular moves to stabilize the dollar, so it will continue to loose its footing. There will be a point at which this is broadly observed and that will accelerate this process well beyond the means of the government to shore up whatever is left.
Only moves I can see for the general public are not to take on debt.
It's hard to imagine that this guy is that clueless about the difference between America nd Japan, but portfolio managers tend to have a way of thinking about things that lets them keep buying and selling stocks on behalf of their clients while still sleeping at night and thinking they are good Christians.
Very well put! The dollar is in trouble and we don’t have any industry because we exported it all to the 3rd world countries that now are turning their backs on us.
American was the one the refined oil and made the Gulf Countries filthy rich. They did the same thing with technology and manufacturing, they exported it all to China! Pretty much gutted the whole America and it’s innovation and industry! It’s a bumpy road ahead and God have a mercy!
My issue with the comparison is that fundamental cultural differences between Americans and the Japanese. The bank of Japan tried to spur inflation but was largely unsuccessful because the population and corporations were stubborn savers and wouldn’t spend the yen into the economy. Americans for the most part don’t have that problem
@@tredegar4163 great point. We are far more j*daized than any culture in the history of the world
This was fascinating; I didn’t expect to enjoy this as much as I did.
So glad this book is on its way to my home. Thanks you guys!!!
I wonder how they would respond to the idea that inflation isn’t an increase in prices but an increase in the money supply. My understanding is that rising prices is a symptom of inflation not inflation itself.
There is 2 types of inflation. Monetary inflation and price inflation. Monetary inflation can lead to price inflation but the real crime is fractional reserve banking,
@@diamond_dad23 Fractional reserve banking is technically monetary inflation.
@@daltonbrasier5491 I agree. I think it’s the worst part of monetary inflation is the reality of fraction reserve lending and no one talks about it, or even know it happens.
INFLATION IS ALWAYS ALWAYS A MONETARY PHENOMENON !!!!
Precisely.
EXCELLENT CONVERSATION
This is teh video I understood the lesat form anUncle Doug conversation !
My experience can't be a textbook. But my experience can't be discounted. They print money, prices of things that I need go up, but my wages don't go up. When you ask for a raise you get some story about how times are tough right now and material prices are through the roof. When you do freelance work on the side you might be able to get away with charging a little more, but since my customers are facing higher prices at the pump, grocery store, etc, too, it's easy to go ahead and price myself out of getting any side work to speak of. Maybe this doesn't mean "give up and go home," but surely it also doesn't mean "trust the grown ups, the printers are supposed to be running round the clock."
I think this video was hit and miss as it went from point to point. Monetary inflation is NOT market pricing. Stop conflating these terms. This is part of the game that is played to dismiss the damage done to savings and future economic growth. Inflation does of course have an effect, but it is not the only contributing factor. Pricing is affected by all the forces of the free market plus interference in the market (such as intefering with free choice through threat of force, ie. any government action). This means that while the dollar supply is inflating (increased total supply of currency), some items will be cheaper to buy and some will be more expensive (market prices still go up and down). Some things having a lower price does not mean that your dollars are a stable store of value across time or make it ok that the dollar supply can be increased effortlessly. The natural result of a growing economy is to continually produce more goods more cheaply. If the currency value was stable, then prices would generally decrease across the board due to the bounty of the growing economy and the increased production efficiencies.
Inflation is both caused by debt and also strongly incentivices indebtedness. The dollar is a debt note, fractional reserve banking, inflating away debt, etc. And here's a math question for you: if the money supply is increased by 5% per year, how many years will it take for the money supply to double? (the answer is not 20 btw).
I do not expect to see hyper inflation of the US dollar, since even devestating levels of infaltion rarely are as bad as hyperinflation(defined as 50% month over month). Unfortunately the waters get muddied by people not using standard defintions. Somone who says hyperinflation might be refering to an annual 20% increase for example. Regardless, I'm still going to work dilegently to reduce the harm being done by high inflation. I agree that a catastrophic Wiemar Republic inflationary situation is not happening here. But it's not unusual for third world countries to suffer devastation from high inflation, Venezuela recently for example.
This video failed big time when it set out to discuss inflation and did not mention the performance of the currency as a store of value over time. You can't increase the supply of dollars in circulation without decreasing the value of each dollar.
He mentioned government subsidies in 3 areas and then didn't mention how the federeral reserve has basically been backstopping the bond market. If they weren't buying bonds in a roundabout way, then interest rates on bonds would be higher. So pointing to the low bond rates as a sign of the stability of the value of the dollar is a careless analysis. Also factor in things like how bonds are bought by pension plans that have requirements to hold a certain percentage in bonds and you see another example of the bond market being manipulated. Pointing out how healthcare, college tuition, and housing are being manipulated and then failing to note how the bond market is manipulated is bizzare.
There were things I agree with though. They indicated some people are looking for an excuse to not go create something and be productive. Bang on. Inflation of the money supply being a horrible policy does not mean you don't have a responsibility to be productive. I believe the bible says we will be accountable for how we use what the Lord has given. As such, I also agree that sitting on a hoard of gold like a dragon is not in obedience to God. But there are nuances, and generational savings in some form are a part of wise money management. Saving up large amounts of capital is what made the huge economic developments of the 19th century possible. Keynesian economists are bone headed about this and hate savings. Foolishness. Savings result in less spending short term of course, but lead to far higher spending (increased GDP) long term. Unless of course your savings are being eaten, not by moths, but by the creation of additional dollars. Creating wealth without effort, as the dollar creators do for themselves, is a barbaric evil that materially harms many, including those of us who are obedient stewards. That is a problem I hope Doug will directly address, since he is speaking and writing on this topic. I will close by saying that while material harm and government manipulation of markets and currency is something that the wise seek to understand, you can't take it with you, and salvation is more important than money.
Portfolio managers always have huge blind spots because they make their living off of convincing people to buy stocks, and therefore they have to believe the market will continue to go up over time. You can't just pretend to believe, people can tell. David is a successful financial salesman, not an honest broker here. There are simply some things he literally can't allow himself to see, or he will have to quit what he's doing.
Hyperinflation may or may not happen, but the dollar isn't in a good place. It's value isn't tied to American productivity - that's not a thing, America just financializes things now, rather than producing them - but rather to its status as reserve currency. It looks like we're going to have to get in yet another shooting war to protect that status though, as Russia and China are making all kinds of deals to buy and sell oil and gas in rubles and yuan. It's too bad Doug and David didn't have time to discuss that.
For now, it seems to me that the best investments are skills, relationships, tools, land, and livestock, in that order. Having some precious metals for liquidity purposes is good too. It's difficult to make a Christian case for having anything whatsoever to do with the stock market.
"He mentioned government subsidies in 3 areas and then didn't mention how the federeral reserve has basically been backstopping the bond market. If they weren't buying bonds in a roundabout way, then interest rates on bonds would be higher. So pointing to the low bond rates as a sign of the stability of the value of the dollar is a careless analysis. Also factor in things like how bonds are bought by pension plans that have requirements to hold a certain percentage in bonds and you see another example of the bond market being manipulated." Great point. Highlighting this, hopefully we can get a response.
Thank you for the depth of your response, specifically about bonds, and second about the need to be productive ourselves. Re: bonds, I haven't been able to explain the low bond interest rates--even negative real interest rates--for years now, but knew there was manipulation and something was amiss, and that it was not a real indicator of a healthy economy. Smoke and mirrors.
Defining terms and remaining comsistent in their use is super important, definitely.
Great comment
Perhaps I’ll overlook Mr. Bahnsen’s love for our hideous Senator, Lindsey Graham, in order to check out the book. It will be difficult to be sure.
No kidding
And don't forget about his adoration of Liz Cheney.
@@bama97i double yikes. Graham is a snake of the highest order and Cheney, well, the name itself should tell ya all you need to know, but she’s cut out her own reasons for opposing her.
Say no more.
Inflation is an expansion of the money supply, not a rise in prices, as explained by economists of the Austrian tradition. Inflation is indisputably occurring if you define your terms correctly.
in your definition, inflation only MATTERS if production doesnt follow the money supply and prices increase for goods relative to wages
@@paulhagen1002 It's not his definition, that's the correct definition of the economics term.
@@paulhagen1002 I think i disagree with you there, in that if the money supply is stable and the economy is growing, then the price of goods should be decreasing relative to wages. So yes, even if the prices and wages are maintaining a stable ratio, inflation is causing a rise in prices because they would naturally be decreasing not staying at the same price.
@@paulhagen1002 Not my definition, but besides that, it matters for many reasons. The first and most important reason is because counterfeiting money is a sin. Isaiah 1:22 "Your silver has become dross, your best wine mixed with water." Artificially creating money debases the value of what already exists (whether by coin clipping, mixing silver with tin, printing paper notes without anything to back them, or just created on a balance sheet). It is theft, independent of whether actual prices are seen to go up or down--it is possible for people to be so innovative that they outpace inflation with their productivity and prices still go down. But it is still theft, and it matters.
Inflation is not one number. A House in the suburbs, A Harvard Education, A New York City Flat, A movie collection, A Dominos pizza. It all needs to be tracked over time individually. Then you can get a large picture. The quality of food has deteriorated under a FIAT standard no question.
Great book
I would recommend listening to some podcasts by George Gammon, Lynette Zang, Mark Moss, Peter Schiff and a few others. Would also recommend reading The Fourth Turning. And research the Malthusian depopulation agenda of The World Economic Forum.
And Heresy Financial. I saw Mark Moss and Joe Brown update their strategy based on what they are seeing. They weren’t“Uncle Wyatt” types early on. There’s more to it than being abundance minded vs scarcity minded
Every time I listen to those yahoos, I buy more silver😐😁🤣
This is a conversation between two people that have no idea what they're talking about. I'm not being hyperbolic when I say that. It's like two people talking about calculus who don't understand addition.
Inflation isn't rising prices. Inflation is an increase in the supply of fiat currency. It's the "printing" of currency. Rising prices are a result of inflation, not inflation itself. Inflation is plainly the fault of the issuer of the fiat currency; in the United States that's the Federal Reserve. Inflation is a wealth transfer mechanism from people who hold already existing fiat currency units to those who 'print' new fiat currency units and then spend it. Basically, governments 'print' fiat currency into existence and spend it, and the purchasing power they gained from doing so was stolen from everyone who already owned that fiat currency which is then devalued by the increase of its supply.
When everything is going up in price all at the same time it's not that everything is collectively becoming more expensive, although it can be that in addition to the following, its that the fiat currency unit of measurement you're measuring the price of things in is itself losing value. Imagine trying to measure the length of something if the length of an inch became shorter and shorter; that's like trying to measure the price of something in a fiat currency.
To deny the existence of inflation right now is lunacy. To suggest we haven't been experiencing inflation every year for the past century or so is a rejection of reality. It all stems from thinking inflation is rising prices instead of what it truly is, the increase in the supply of fiat currency.
Mike Maloney correctly pointed out that from 12/15/21 to 2/1/22 the national debt went from $29T to $30T, an extrapolated annual inflation rate of 25%, also known as hyperinflation.
They didn't say a word about usury, or the petrodollar, or the financialization of the economy. This video was on par with Doug's "analysis" of the Ukraine situation in its intellectual and moral bankruptcy.
This guy is literally just trying to convince people that what is making him richer is actually great for everybody.
@@daltonbrasier5491 yep.
Best definition of inflation !!
I would recommend folks look into austrian business cycle theory and Ludwig von Mises' work on inflation. His book, "Human Action" is a great starting point. Murray Rothbard has good work on the topic as well.
Outstanding recommendations! Also Basic Economics, by Thomas Sowell
@@rooftop.voter542 still remember reading that my first year of graduate school. Sowell is fantastic
agree. Von Mises’ work was the best.
Or Gary north if you want a Christian perspective
Yeah, make sure to get your economic theory from anti-Christs who have to conceal their identities by referring to themselves as 'Austrian.'
As a stay at home mom living pay check to pay check in America, surrounded by others in the same boat, I find it hard to believe that commodity prices are not up. Our budgets are being destroyed. We can get much less for our budgets than we could a few months ago and it's getting worse. Some of us buy the same things every week and so the change is very apparent and alarming. It isn't new over the last 4 weeks either. This has been a trend. Also, where I live, IF you can go out to eat the wait is ridiculous and half of the tables are empty because they are so low staff. If the unemployment is low where are all the workers we had before?
Doug and Dave don't live in the same world that you do. Food is not a significant part of their budgets compared to you. The government also constantly rearranges the basket of goods they use to track inflation to make it seem better than it is, and they're still saying like 8 or 10 per cent.
Sadly, Doug has revealed himself to be a total fool with this video.
Commodity prices are being affected by the Russian sanctions and the war in Ukraine. That's why gas prices are soaring.
Not all groceries are commodities. Cheers! :)
@@zapazap what are?
@@ksierra4444 Arguably coffee. But usually commodity trade in coffee is is in bulk. Cheers!
He missed stocks and assets (Wall Street and banks). Those are bailed out via Gov subsidies in conjunction with zero interest rate loans. David needs to add a 4th category to his list of 3. Stock growth has matched monetary expansion (Gov control) over the last 50 years. After adjusting for monetary expansion (money printing) the total market growth over the last 50 years is only 8%. Otherwise I agree with his points (he is just omitting the obvious solution/resolution to this: BTC)
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Ludwig von mises disagrees.
What is said about government subsidy causing inflation around the 18 minute mark is demonstrably true, and also now applicable to the telecommunications market. Every year my internet service provider raises my rate 20-40%. I call them up and say that if the price is going to increase, I will be moving to another provider who is offering service at or below my previous rate. They relent annually and decrease my rate to a level that is near the previous year. This year I received an unprecedented 50% rate increase. When I called my provider, they refused to do anything substantial about the rate hike. I discovered that this is due to an increase in the number of people who qualify for a $30 per month credit from the emergency broadband benefit, a federal subsidy. The subsidy disincentivized competition by guaranteeing internet providers a baseline of $30 per month, leading to an increase in the price of services and the profits of the telecommunications giants that lobbied for the subsidy.
I agree with some things, like that our inflation is likely to become deflationary long term, just wait until they really raise interest rates, but I think much of this is off base. People have these attitudes because of actual physical forces at work. I am getting destroyed by inflation right now and have been watching effective prices in things like food for up for years. Just because the government plays accounting games to hide inflationary forces doesn't mean they aren't there. The fact is that there isn't a safe place for money, so the bond market is a as good as any. Look at all these normies putting money in crypto. This is people increasingly for years realizing there's a problem and scrambling to find some solution, even if it's another bad one. And yes, the government does squash little business. Just look what they do to startups like parler... Not everything is as equally controlled by the government, but most things are heavily impacted. The underlying issue, like on all the other stuff, has to be a God brought revival. Unless the church changes, and culture changes and politics changes, then we aren't going to get anywhere long term. So we should be acting, but we need morality and sanity, and hard money is still part of that sanity.
How can you get "hard Money" from a fiat currency that is owned by a non-governmental
agency/private central bank that charges interest on money that was supposed to be
under the control of we the people thru congress and minted and put into circulation at ZERO interest, because who would ever charge interest to themselves? needlessly.
End the Fed Res and you change the game completely. They stole it in 1913 unconstitutionally anyway. And we just keep playing their game by their invented rules.
@@2drsdan I would agree the Fee has to go.
Anyone who suggests deflation has no idea what they're talking about.
1: Inflation is an increase in the supply of fiat currency. Our supplies of fiat currency not only aren't going down but literally cannot stop going up dramatically without the whole system collapsing.
2: Interest rates can't go up in any meaningful way without collapsing the whole system. There is so much debt in the system that if the 10y treasury yeild, which is the basis for pretty much every other yield in the entire economy, went up in any meaningful way then the US government and the majority of US companies would default from being unable to pay the interest on their absolutely massive debts.
Not only can't interest rates go up without collapsing the system, but the system can't refrain from collapsing without massive amounts of inflation and the rising prices that come as a result of inflation. There is so much debt in the system that it's inflate or die.
3: There is a safe place for your purchasing power: precious metals. Every other financial asset that isn't a precious metal is just someone else's promise. Only precious metals are wealth and payment in it of themselves.
@@LawlessNate Agreed, raising rates will collapse the system, but they are having to choose between two poisons at this point. They can choose a deflationary path, but it will be painful.
Precious metals aren't secure because people don't trust the government to let them act in competition with the government in such a case. It wouldn't even be the first time our own government made them illegal. In the long run, hard money is necessary for a healthy system, but in the short term, it may not be an effective asset. Personally, I think the best one can do at the moment is go for putting wealth in long term valuable items which can be used or stored. Kind of like the Medici option to financial security.
@@LawlessNate actually there is both and supply and demand side to inflation. Inflation is the rate of change at which money exchanges for goods and services (too many chasing too few). 10x more money, 1000x more services (netflix), its still deflationary. That's what hes getting at with the velocity argument. Inflation as we normally experience is primarily the result of the fractional reserve banking system. Lately, the shocks have come via supply shortages of goods. This will continue. Yes, there is a ton of fiat out there. Yes, we are seeing a much higher risk-off beta to precious metals relative to treasuries (historically). We shall see what happens in big liquidity event. Agree with you on 2&3.
3 important areas of life as well. Referring to housing, education, and health care.
This was a helpful framing of the conversation, although I do think on the topic of government interference they missed some of the key developments in the last 2 years (maybe the book covers this... I'll have to buy a copy). I have been feeling the tension in my own life of wanting to build a business, specifically in food service / coffee, but also feeling the threat of declining consumer demand should true stag-flation set in paired with living in Michigan, which has shown itself to be more than willing to shut down free operation of businesses for the cause of "safety." God is my provider, so I recognize that this fear in me is not particularly appropriate, but the thought of "going for it" only to have a new lockdown announced for a farcical crisis that crushes my investment and destroys the financial position of my family is something I think about more than I would like to admit.
All that said, Caleb saw the giants and believed that they would overcome, so I too must have faith so I can have the promise.
I don't want to be someone who speaks of faith and hope, but lives in fear and self-protection.
Thanks for the thought provoking discussion, Doug and David!
We in MI were only shut down for what, 2 months?
@Bezalel Jaeger 308 sure but what else would you want given we had a CHINESE BIOWEAPON (lol) on our hands. Seems reasonable to me.
@Bezalel Jaeger 308 yeah I think shutting down for like…2 months….wasn’t that extreme and was common sense in the face a Chinese bioweapon (lol) was warranted.
He stated MI had too heavy of restrictions. They weren’t. Wasn’t bad at all.
@@DM-dk7js I'm not sure where you're getting the 2 month shutdown from? Here in Wayne County we had gyms and many food services businesses closed or at reduced capacity limits for over 6 months. Michigan was among the most extreme states in the nation, which is why the Unlock Michigan petition was created and passed in record time to remove the unlimited emergency powers from the governor.
Once we lose the Petro $ due to 30+t in debt you'll then understand inflation. Be ready.
How they don’t factor in that our entire monetary house is built upon the sand is amazing. You can’t reason well or accurately predict anything if you believe the fake system that underlying it all is immortal.
Also, it seems to me that all this talk is about nationwide economic theory and how to deal on a national level. What is needed is INDIVIDUAL creation of wealth and the heart/mind renewal to keep it. That’s what makes some individuals rich while so many others are not.
Wow that gut was very informative thank you sir
Hey Doug and David, I have heard this term in several of your talks and I am less educated or ignorant of the term Kiperian or Kiprian. When I looked it up it gave me some guy named Boris. Can anyone give me a definition? Also, I love the simple equations you gave and the Uncle Wyatt example. I agree that we need to create a good economy not hoard one!
They’re talking about Abraham Kuyper, a Dutch theologian and the country’s former prime minister. He was a Calvinist known for his views on the interaction between Christianity and culture.
So commodity prices at what we're looking at and NOT consumer good prices?
This was interesting but way above my pay grade or the complexity level I want in my life.
Y’all should have Joel Salatin on Man Rampant.
How about public schooling k-12 as a major sector that the government has interfered with? That has to be a huge number that is a waste of money. Especially considering the product that we're getting for it.
Might be a dumb statement but doesn’t the Fed buy bonds manipulating the system. What if people buying bonds knew the govt would always be there to buy them back in a economy downfall. Like the govt does in bail outs.
You're exactly right, as many are pointing out in the comments here. He also doesn't mention the insane price inflation of stocks, e.g. Tesla and Google and Amazon. This is the worst video since the one on Ukraine.
The problem with buying bonds today is that you have to look at what that money is going to be worth 10 years from now. When you buy a bond, you're giving up the opportunity to buy something with your money today in order to lend it to somebody else. Ideally, this would work because the borrower would be paying you for the service of loaning him that money. But we have inflation right now. Inflation eats away your purchasing power over time which means you want to charge a higher rate of interest to compensate for that loss.
The problem is that the Fed is continually manipulating the bond market to lower interest rates.
The Fed buys tens of billions of bonds every month in order to reduce interest rates. The idea is that lower interest rates encourage people and companies to spend more money, adding to demand for goods and services and stimulating production and employment.
The problem today is that the U.S. economy is currently operating far below capacity. There are millions of unemployed workers right now, plus millions more who are working part-time but want full-time jobs. Due these conditions, employers are having to increase wages and hiring bonuses. However, those come at costs which will be covered by increases in prices which consumers will pay for whatever those companies produce.
Hence we are in "stagflation" crisis.
Inflation is defined as an increase in the supply of circulating currency. Based on that definition, we absolutely have inflation. We can't always relate the increase of circulating financial media to a general increase in the level of prices, but inflation is till present.
Inflation is never defined as rising prices, because rising prices can be caused by all kinds of things, inflation being one of them. Inflation is always defined in terms of the financial media in circulation.
Whether we go with a bang or with a whimper is largely based on the response of our money masters. If they inflate like there's no tomorrow, it will be with a bang. A lot depends on what they actually do. I don't think the signs are all that encouraging, frankly. Hope for the best, but prepare for the worst.
I do have to give him the benefit of the doubt, however. I had a hunch that he was related to Greg Bahnsen, and I was right. Maybe he does deserve a wider hearing.
Wealth is material goods. It is tangible. All the constructs of man (corporations, financials, banknotes, credit, fractional reserve, inflation, deflation, etc) are based on sin and false foundations. Commodities have value. Items backed 100% by commodities have value. Labor has value. That's it. And so, while many get filthy rich off of the financial games they have set up and the schemes to defraud their fellow man, these things have no lawful business in a Kingdom view. Equal weights and just measures, commanded. Just Shekel, commanded. Usery, prohibited. Debt, to be cancelled. Slavery, prohibited or for a limited term. Labor, promptly compensated. Borrowing, a mark of a fool. Private property and land, inalienable. Stolen goods, restored manifold. You see, if the church honored the Father's instruction instead of "nailing it to the cross" for the better half of the last 2 centuries, we would not be seeing the circling of the drain that has been this post-modern America.
Amen, brother.
The only problem with the inflation statement that I see is the fact that the government subsidizes far more than just the 3 listed. Example agriculture, automobiles, oil, “green” energy, water, big business, small business, foreign countries, farming exports, imports and exports, education at all levels and every American in the form of government hand outs/ Covid stay home, don’t work checks. So by what David Bahnsen said all will be affected by inflation. Am I wrong?
Wow. This is a great episode!
Waiting patiently for my book to come in 😞
I'll have to scratch my head and think about this. It's too different from my assumptions for me to give it a knee jerk reaction. Well done interview. Thanks!
Same. I don’t know what to think about it.
I would add a 4th sector of gov subsidiaries... farming.
Absolutely. Government protection (at taxpayer's expense) on a grand scale. Very few private businesses enjoy this type of protection.
Why do you think being of a dispensational view precludes someone from being about kingdom work?
Been listening to the book on Canon+ and I’m in agreement with a lot of what is being said. Also he’s completely right that the doomsayers have been wrong for decades.
However he says we’re going to be going though Japanification and look to the bond market. The bond market has been a bloodbath for the first quarter, you lost more in bonds then stocks. Then the Japanese Yen has fallen off a cliff in value due to direct yield control, so with the timing of the release I wonder if the book is going to age like warm milk or not
I have finished the book, and I agree wealth creation and entrepreneurship is paramount. My major criticisms are these: 1. There is a time when you have to be out of the market, and considering that valuations and debts are to the moon that time is probably now. 2. Yes debt is deflationary to we mere mortals that have to pay it off, but the government and the Fed has other options. Yes if nature took its course a recession would create deflation but does anyone think the Fed will sit back and do nothing? The Fed will do more QE and control yields to save the economy, with more besides like directly buying equities. 3. The author simultaneously says systems are complex but we’re going to be just like Japan, as if the US with the global currency and high savings Japan will be the same way. Besides right now the yen is cratering, which is inflation, as Japan is now forced to directly control the yield by buying unlimited bonds. 4. The history of all historical fiat currencies is eventually they go to zero, the problem we all have is the timing, a gold bug during the 08 crisis who bought at the peak would have lost. Gold is an investable asset and even if the world doesn’t end commodities are probably going to have a decade long bull run as globalization brakes down
So should anyone ever own silver, palladium or gold or???
@@ter8330 Gold is like insurance, it’s for when everything else breaks you still have purchasing power. Silver is the same, but can be used for far smaller transactions. If used as insurance it should be held physically in your own possession.
@@tredegar4163 Thanks!! Much appreciated! I guess I was hearing them both say, basically don't own any...
The stock markets have proven that they're not rational, so never ever look to the bond market to indicate inflation.
They are completely manipulated by government involvement. The Fed is buying bonds like crazy, and to not think that will affect it is crazy.
I recommend reading Barren Metal by Dr. E Michael Jones
I think if we talk about money and wealth we should pay closer attention to how God wants us to live.
Psalm 15 verses 1&5
O Lord, who shall sojourn in thy tent?
Who shall dwell on thy holy hill?
5 who does not put out his money at interest,
and does not take a bribe against the innocent.
He who does these things shall never be moved.
Don’t forget Agricultural subsidies in your list of the largest government subsidy schemes.
I hope there is a chapter on Bitcoin. That might change the Japan thesis somewhat...
Doug do you own bitcoin?
Interesting discussion. Inflation has many different faces to it. Over the past centuries each wave of inflation took place for various reasons. There is not one set formula for inflation. The inflation we are experiencing today is brought on by supply and production issues. Be it oil, wheat, lumber, meat, cars or tech we are in short supply of these things. Now there is not one reason that we can point to as a single cause to this, but when you mix Covid shut downs with government over restricting oil production, and war between two countries that are responsible for a good chunk of the world’s food production you have the formula for potentially very high inflation. This should have been the basis of the discussion.
I'm at the 18 minute mark. Did they ever define inflation (since not everyone defines it the same). If they did, I missed it.
Isn't government involved in subsidizing farming?
Printing money does cause inflation but its impact is different on every single asset, commodity house prices, art, bitcoin, etc. It's not one number.
I'll admit I don't know much about this, but it seems reasonable that if the government prints more IOUs, the value?of my IOUs go down.
The zeitgeist of our culture is changing definitions for everything. There is no such thing as food inflation or gas inflation. Inflation is an expansion of the money supply. The money has increased which means there is inflation, the fact that there is deflation in certain commodities doesn't negate this. I don't mean to be rude but I don't think either one of them have a deep understanding of economics. We will reap what we sow because God is just.
David Bahnsen is a billionaire hedge fund manager with offices in Newport Beach, New York and Nashville. He understands economics.
That doesn’t mean he’s right about what he’s saying here, though.
@@jasonmartin1712 David Bahnsen sells stocks and other investments for a living. He has to believe in them to do that well, so he has a lot of blind spots. It's plainly unchristian and immoral to invest in American stocks at this point, unless you think that creating Amazon wage slaves is somehow Godly work, so you have to a lot of lying to yourself to sleep at night.
Inflation is a monetary phenomenon. You can print more money, but you can't print, gold, silver, wheat, beans, bread, etc.
I love when Doug just drops a book out of nowhere
Buying gold should be looked at as holding actual money. Holding dollars when your govt is printing them into oblivion is not wise. If you decide to save money instead of being in debt then you should get rid of dollars and put them into something that hedges against ungodly tyrannical govt Fed. Not everyone’s blessed to own own business. Some people must work for employer.
Good conversation as far as it went. But how does the poo-pooing of Uncle Wyatt’s “hard money” mindset align with the biblical condemnation of unequal weights and measures? It seems that “true” (biblical) _money_ has always been some sort of commodity, and it has _never_ been created by debt slavery.
Anyone care to help me understand this (apparent) contradiction?
Sure. David is a salesman, and he sells financial instruments, so he has to tell himself a lot of lies to keep his conscience clean. Simple as.
Nothing about our system is Christian, nor can it be Christianized in any way. There is no Christian way of investing in companies like Amazon, Google, Ford, Wal Mart, etc, as they are all predicated on the idea of devaluing labor, enslaving populations, and destroying Christian civilization.
Go from the presence of a foolish man, when thou perceivest not in him the lips of knowledge.
Price controls are a socialist policy. Interest rates are a price of money. If you are in favor of the government controlling the interest rates, you are in favor of socialism at the worst level.
Inflation is always always a monetary phenomenon. It’s all that money that Powell printed.
Keeping the rates to zero at one point.
May the Lord return quickly!! Amen. God is merciful. He always forgives. Never be ashamed to take your failures to him. He is for you, not against you! God is with you in the storm. He knows your troubles, he hears you! He is for you, on your side, always! It may feel silent at times, but he’s holding you close! May the Lord return soon! We are drawing closer. He is coming! Believe and trust in the Lord, you will be saved. Period. May the Lord bless you all! Hang in there family. Stay strong. It is not easy following the Lord. We are scoffed at. We give up our earthly dreams, our fleshly desires. What the enemy offers is short lived, but heaven is forever! Life may seem or be unfair, but God is with you! Always remember that. Things may get better or worse for you, but a kingdom awaits you! Finish the race! Repent daily and carry your cross. This world is fading fast. Your troubles are temporary! New channel here, I’d appreciate any kind of support. Don’t give up! God loves you so much! So do I. The Lord bless you!
On earth as it is in heaven. That's our JOB while we are here. Don't use Jesus coming back
as an excuse to hide from your responsibility of stewardship. God created this earth for us
so that we would in turn have fellowship with Him. Endtimesers, sheesh.
ONLY 3 THINGS? WHAT? The fed funds rate is ground floor of the risk free rate of return. FF rate is arbitrary and heavily subsidized. That's an a priori input to something like say how CALPERs (pension fund) is allocated. Investment banking is subsidized, its reallocating like mad through the ESG credit system. Great explanation otherwise! Love you both.
Their whole argument collapses with the point you just made, so how can the rest of it be good lol
@@harbinger6753 I wouldn’t say that. I think he was trying to (over) simplify a bit. I know DB is seeing the ESG inflation based on some of his public picks. I’m 100% with him on the deflationist camp. Liquidity crisis’s are deflationary… In the end it’s that tension that makes for good hedging and wise risk management. TLT is the move here.
What about people who have precious metals who are disabled? Or poorer or..? There are a host of reasons WHY some people own them. I guess I missed something there.
Can't agree about the Uncle analogy. People who save are not bad people and stifling others growth. Generational wealth is not a sin. This went off the rails at the end.
The whole thing was off the rails.
They never insinuated generational wealth is a sin. They were specifically talking about the burying of your talents as sinful.
@@Cinnamonbuns13 is it righteous to invest in American corporations that ship manufacturing overseas, promote the worst forms of degeneracy, drive down the cost of labor, and buy up the public square and ban us from it?
What should Christians invest in? What is Bahnsen's portfolio invested in? Is working to constantly grow the economy really the Christian thing to do?
The idea of a retirement funded not with children and small family farms and businesses, but with dividends and stock sales and forced labor in the form of social security taxes cannot be seriously seen as a Christian goal.
Uncle Wyatt is laying up for winter, and winter is coming. Just because the financial tricksters have so far been able to delay the inevitable doesn't mean that God will be mocked.
@@harbinger6753 I don't disagree with anything you said, but they didn't say what was insinuated.
@@Cinnamonbuns13 help me out, because the most charitable spin I can put on it is that they mean people should just build their own twitter or wal mart, which is insane.
I any this as someone with a small family food business, and it would be madness to invest heavily in trying to make it into anything beyond that at this point. It's clear that the big players can destroy the little guy at will now, and then just buy up the assets for pennies on the dollar. The system is totally fraudulent, top to bottom.
I would appreciate you clarifying what you think they meant, because I hope I have an uncle Wyatt somewhere hoarding gold so he can invest in my business when this thing finally comes hurtling down.
When you invent a breakthrough technology it can kick the can down the road. Industrial revolution. Improvements in shipping and transport. Manufacturing efficiencies after World war II. The transistor. The internet the computer and cell phone. We just need a break through technology.. pray for the idea of an epic invention.
Silicon valley gurus have gotten to such a point of success that they actually do have cabins with gold coins in the form of million dollar bunkers and hard assets( land, farms, etc) But, the cart wasn't before the horse. It was more of a benefit from thier productivity rather than an alternative to it.
Was amazon "productive" when they lost money for decades but were constantly provided with funding because the people buying it knew eventually they would be successful in destroying their competitors by undercutting their prices and subsidizing their shipping with the USPS? Is that what passes for productivity now? Or Twitter and Facebook doing essentially the same thing, just with the intent of monetizing the details of tour life for advertisers? Christians who invested in these companies and sold out their children for this hellish nightmare have some repenting to do. I wonder how much Facebook, Amazon, and Google stock David has in his clients' portfolios.
Inflation in food is not seen in the prices but the quality of food!
Or in how much is portioned.
@@samuelgray4696 Yes that too
A lot of the smaller tech companies while not actively lobbying for the types of cronyism laws the big tech companies are they still are actively benefiting from those laws. One example is anti-discrimination and other woke laws that conservatives can't coexist with.
Here is the problem. It's a both and. Not and either or.
I'm 29 I see what is coming I prep the homestead, I build the herds of animals and strive to be energy independent on-site. Building community with believers at aims to be secure if and when the time comes.
All while operating a business with alot of interest toward it that is in growth mode.
I don't subscribe to rapture stuff at all.
Inflation is hidden in the declining quality of the average products.
This video does not present good analysis.
Define inflation please
Increase in prices driven my a reduction in supply and/or an increase in demand. But people often use the word inflation as a synonym for currency debasement which is what drives most cost increases. And this conversation is no exception, most of their references to inflation are actually referring to currency debasement (leading to hyper inflation).
I don't believe it's an inconsistency to build while being a pre millinialist. I'm no longer of that persuasion, though I'm not post mill neither, I believe we are in the millinial kingdom, I also believe it's not just spiritual as well. But the scriptures teach us it's imminent and also, that only the Father knows. That we should be working until He comes again in Glory. So it's not inconsistent. I believe those who are of the belief, and just shrink back, are the ones being inconsistent with scripture, and really should read the word of God more.
I'm not sure where these two gentlemen have been over the last 20+ years. Gold has performed splendidly while the cost of living for the common man has increased markedly. The USD's place in the world has slowly ebbed too.
Most recently, the USD's reserve currency status took a huge hit when the Biden Administration imposed sanctions on Russia. This showed that currency reserves accumulated by central banks can be easily taken away. Yes, fiat money is doomed. See Ludwig von Mises.
Completely out of touch.
"Inflation is a perfectly legal way to pay debts. You can't pay someone 50cents when you owe them a dollar. You can pay them a dollar worth only 50 cents"
"LEGAL"
Doesn't God hate unjust weights and measures? That's what my bible says.
Telling that Doug mentioned William F Buckley at the start of this video.
Seems to me that despite enormous government regulations, debt, and other foolish economic practices, capitalism works so well that the terrible consequences are mitigated.
@John Paul Tell that to a person who is making $18.00 an hour!’
That’s what I was just offered to be a Metadata Analyst. Yeepie hurray for Capitalism!!
Did you go to college NEMO? Honest question
@@jarredpetroff6659 The Capitalist system works well when we allow the markets to do what markets do.
Capitalism does not work well when markets are rigged or in other words when losers get bailed out.
The idea of Capitalism is that it’s a circle.
What goes around comes around.
In capitalism there are always winners and losers, but if the system is hijacked so that winners stay winners all the time, andddddd wealth is accumulated for those winners then they will do anything to stay winners.
Example
Koch brothers.
Just one example.
Not gonna lie, I have no idea what just happened.
Here is everything you need to know:
th-cam.com/video/nWEl4rUwDt0/w-d-xo.html
I wonder if people can hear the overall message whilst $5/lb hamburger is staring them in the face.
Why don't you give us "the truth about the future" before it happens?
DW👍
Russian gas in Rubles.
These idiots apparently have no idea what is coming. Just because the financial lords of our civilization have been able to postpone the inevitable so far doesn't mean they will be able to forever. God is not mocked, but Doug Wilson and David Bahnsen will be.
Our economic structure which still has corporate & stock market deregulations in place from Reaganomics (1981) creates the ability to ignore demand or more specifically the lack of. Demand & the need for empowered consumers has always been the check & balance on wages & centralized wealth not flowing back into the system. Every sustainable economic system (every economy) must b self sustaining. Meaning it must b a figure 8 or a circle O……otherwise, the result is a snake eating its own tale. To keep this short I have one basic analogy but remember its the basic principle that Im pointing to. When Ford (the car manufacturer) reported record gains & became a massive influence within the national economy, when he became very wealthy, almost every driver in the world was driving a Model T. Elon Musk has been supposedly transforming the electric car landscape for a decade now, has earned billions, is now the second wealthiest man in the world & yet in average communities across America, we still do not see Tesla cars dominating the consumer landscape. The ability to access stock buy backs, the ability for corporations to have unlimited amount of companies sheltered under one umbrella which then can either A/buy up the competition or B/ starve out the competition by taking a loss in one market while sustaining on profits from another, both (as well as other ways i am probably ignorant of) provide market manipulation that can ignore the traditional basic economic principles that have always guided our system prior to 1981. U dont need a lot of empowered consumers if u can charge more to fewer consumers because u have no competition. U dont need to increase wages if u dont need consumers to create profit/gains, such as using stock buy backs. The modern corporate player is taking less risk (by avoiding expansion that could fail) & increasing gains faster with less over head (no marketing costs, no labor costs associated with customer service, etc) & r making more money faster while the middle class shrinks. What does that tell u?? But we cant blame the corporate greed. It has always been an essential part of economics, what we need to face is that these economic results r not mysterious. They r what they always r: a reaction to an action.
We must demand that economic regulations b put back into place as they were prior to Reaganomics. Middle out economics with those regulations in place will absolutely put us back on track & create a slow but steady & consistent march back to the 1950’s & 60’s era economic landscape.
To ask "where did all the inflation go?" in this environment of 8-14% inflation betrays either a signifanct simplicity of thinking, or unwillingness to think things through at a deep level. All one needs to do is look at the devaluation of the dollar since 1913, which is at 97% as of Sept 2022. To conclude that because the dollar hasn't yet hyperinflated therefore it's not going to betrays an evident inability to apply the laws of logic, a severe historical ignorance of the economic history of large empires, and significant misunderstanding of the nature of fiat currency.
It is mind boggling that Wilson could claim to be an intellectual and not have looked into this, nor what Bitcoin is about such that he dismisses it with a waive of the hand. It is also mind-boggling that he could claim to be a libertarian and at the same time miss at every point the completely libertarian nature of BTC. It is like somebody threw him a girly, slow softball pitch and he not only missed it, he got distracted by the ice cream man by the bleachers. The information age is truly separating the men from the boys.
I don't think Bahnsen was the best choice to interview as an authority on this either. He's a super smart guy and a heavyweight within the current model of financial services, but also has regular time slots with the legacy left-wing media that I expect he doesn't want to lose. Therefore the incentive structure to say that hyperinflation is ultimately inevitable or that Bitcoin is an alternative to the destruction fiat has caused simply doesn't exist for him. If he said that he'd lose his time slots, just like if he'd have said there was voter fraud in the 2020 election. He adamantly denied there was any.
There are deeper, more independent thinkers Wilson could have interviewed, like Robert Breedlove or Robert Malone. However, this would force a shift out of what I gather is Wilson's current way of thinking and the model in which it appears he lives, and it doesnt look like he has any incentive to make that change. After this interview he seems less like a thoughtful disciplined intellectual and more like a surface level pundit. He does deserve credit in that he started a great classical Christian school movement, but given his attitude and what the information age is doing for us, his time appears to be coming to a close.
As I recall... in the parable Jesus told, the servant who buried his coin under a rock was chastised by his master. Maybe Uncle Wyatt should re-read Matthew 25.
Yeah he should have bought Amazon stock instead so Jeff Bwzos, who hates Christ and His people, could buy more slaves and destroy more Christian owned small businesses.
In this episode of Making Sense of Madness with Sean Morgan, Matt Ehret and Josh Reid were invited to discuss the question of China and Russia's role in the Great Reset, and the emerging fight over multipolar systems of win-win cooperation vs unipolar systems of Anglo-American hegemony
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@t
Bitcoin fixes this.
No, precious metals fixes this.
@@LawlessNate The banks are able to own and control the metals market and the price like a Criminal cartel the markets are centralized. The actual held supplies are unknowable and get rehypothicated to high heaven beyond the actual supply. Likewise they are all subject to constant supply inflation (unlike bitcoin). I could give 10 more reasons but those are a few problems that bitcoin solves that metals cant. But atleast we agree on the nature of the solution. Keep learning and you will eventually agree.
@@LawlessNate Maybe a simplified response would be: metals and metal markets are dishonest, centralized, government controlled and confiscatable. BTC is honest, decentralized, non-controlled, trustless, freedom promoting, non-confiscatable, productivity promoting goodness (with a learning curve).
@@JP_21M If you don't understand that the banks ALSO control the price of Bitcoin through futures markets in the exact same way they manipulate the precious metals markets you're not paying attention. Canada proved that if you can keep people from exchanging their BTC for fiat currency you make it effectively worthless because there are next to no companies willing to accept BTC directly as payment and even if there were they're under the same government obligation to refuse service to blacklisted addresses.
@@KevinVanGelder I do understand that the futures market influences the short term price. And obviously those with the most capital will have a large influnence on price but in the case of gold the price is not "influenced" it appears to be completely controlled and there is no way to validate the actual supply as opposed to BTC. My main argument there is that the metals market is dishonest and more prone to lies and corruption than an immutable open public ledger like BTC but yes there can be bad actors in both markets. Your second point is mostly true but silly and irrelevant. Canadians Truckers had no way to use their banks or precious metals while they could freely trade BTC and their only constraint was retailers acvepting it. Thats like saying the internet will never be a thing because your dial up connection prevents you from using your home phone. In the same way your concern about usability will become irrelevant.
Of the fourth kind...
Bill is fourth.
Second
First
Third
6th
Thomas your 5th, not 4th
Can it, Pants.
Doug just desperate to justify his new MacBook Pro in a monetised video, while everyone else is losing out. Pyramid scheme occurring live.
Since the days of the protestant work ethic and the rise of Capitalism humanity's ambition has given us the potential for creating paradise on earth without God. Genetics has given us the means to change what has messed up in the womb and we might even be able to extend life! We have the potential to create a society and a technological world where no one has need, where there is no sickness or pain. We were promised that we will be like gods and here we are. And it is all thanks to a monetary system.
Could it be possible that because of the fall we are supposed to recreate our godlike state that we lost. It is out punishment. That is why we need a biblical work ethic to so that we can utilize our drive and ambition to recreate the conditions that Adam and Eve lost. Just a thought.
Great book