This is why USA will crash and burn.

[IAM]

https://www.youtube.com/watch?v=iP9H5fADC0E

It is a house of cards and when it crashes it will be much worse than the Great Depression. It will make the Soviet Union break up look like tea time.

 

[Goodfella]

Oh great, another ambiguous OP with nothing but a youtube video.

 

[Verbose]

I actually found the comments on the video more useful than the video. That's a bit of a rarity on YouTube, but should say something about the video itself.

 

[Darkflight]

But... but... it's on the internet so it must be true?!?!?

 

[amadeus]

I didn't watch the video with sound because I'm in a room with other people, so I can only guess what the video said.

Things that came into my mind were:

(1.) Even when the U.S. was on the gold standard, it was still not full-reserve banking so the same thing (an initial deposit being loaned out and redeposited but being added to the bank's books) was still happening.

(2.) Even if the U.S. readopted a gold standard, it would still be this way and the government would still be able to set the price of gold, so if they set it at $1,000/oz today and decide they need more money, they can just revalue gold to $1,500/oz.

(3.) Since people weren't allowed to own gold personally anyway and it was only used for international exchanges, it wouldn't make a difference to the individual interested in protecting the value of their money.

And despite my not liking the system, they haven't done a terrible job (in recent years) of managing inflation.

 

[Cutlass]

48 seconds in, the vid is clearly wrong on what the Fed does and how. The next minute goes on a bad explanation of the basic money multiplier that everyone who has an education has known since highschool. But then completely fails to understand what they just said and claims that there will be massive inflation because of it. Now keep in mind that this has been going on for 600 years. You'd think all that massive inflation would have shown up by now.

In short, the 1% spreads this propaganda and gets the stupidest part of the 99% to do their work for them in the hope that, if the majority of the 99% can be made to believe this, they will destroy themselves and the 1% truly will enslave us all.

 

[amadeus]

In short, the 1% spreads this propaganda and gets the stupidest part of the 99% to do their work for them in the hope that, if the majority of the 99% can be made to believe this, they will destroy themselves and the 1% truly will enslave us all.

The 1%... spread anti-Federal Reserve propaganda?

 

[Glassfan]

48 seconds in, the vid is clearly wrong on what the Fed does and how. The next minute goes on a bad explanation of the basic money multiplier that everyone who has an education has known since highschool. But then completely fails to understand what they just said and claims that there will be massive inflation because of it. Now keep in mind that this has been going on for 600 years. You'd think all that massive inflation would have shown up by now.

In short, the 1% spreads this propaganda and gets the stupidest part of the 99% to do their work for them in the hope that, if the majority of the 99% can be made to believe this, they will destroy themselves and the 1% truly will enslave us all.

Agree. The vid is full of mistakes, and misrepresentations.

 

[Cutlass]

The 1%... spread anti-Federal Reserve propaganda?

Some of them do. People who are primarily bondholders and earn interest income rather than stockholders, those people know that the higher interest rates that they would receive if the Fed were gone, or at least reined in enough so that it only worked for 0% inflation, or even accepted deflation, those people would get a vast unearned windfall of profits.

Hard money takes from people who work, and gives to people who own. Why wouldn't the 1% want that?

 

[Tahuti]

Hard money takes from people who work, and gives to people who own. Why wouldn't the 1% want that?

Actually, it gives to the people who own MONEY. If I'd own a lot of production capital, I should dread the deflation hard money generates because now I would have to reduce the prices of my produce. No billionaire has any significant part of their net worth in money, but in shares of companies - often drenched in debt, though that isn't their problem until the company tanks.

However, since money lenders have come to expect inflation, they will suffer too, because their interest rates and risk projections were based on inflation, even though they are supposed to profit from it.

 

[potatokiosk]

The maker of the video doesn't seem to know that all of the Fed's profits go to the Treasury. It's impossible for the country to become "enslaved by debt" to the Fed. Also, as Cutlass pointed out the conclusions he draws from what he knows about the money multiplier are completely wrong.

 

[El_Machinae]

The 1%... spread anti-Federal Reserve propaganda?

Rarely do I agree with amadeus, but I'd say that this is more of a "10, 9, 8, 7, 6, 5, 4, 3, 2%" issue than otherwise. It's not a scheme to keep the rich, rich. Just general ignorance coupled with entitlement.

 

[Cutlass]

Actually, it gives to the people who own MONEY. If I'd own a lot of production capital, I should dread the deflation hard money generates because now I would have to reduce the prices of my produce. No billionaire has any significant part of their net worth in money, but in shares of companies - often drenched in debt, though that isn't their problem until the company tanks.

However, since money lenders have come to expect inflation, they will suffer too, because their interest rates and risk projections were based on inflation, even though they are supposed to profit from it.

The US bond market is $35trillion. Who do you think owns all that, and collects the interest on it?

 

[El_Machinae]

Baby-boomers. The 1% get rich selling them those bonds.