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Hyperinflation is Already Here - You Just Haven't Realised It Yet.

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  • Published on Apr 10, 2021
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    Hyperinflation has been a doomsday scenario for modern economies throughout the last century. In all of these failed countries (Zimbabwe, Venezuela, Hungary, Yugoslavia, etc.) there have been uniform warning signs, the same signs that we are starting to see today in the U.S.
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Comments • 9 539

  • Jeffda llama
    Jeffda llama Year ago +11570

    7 year old: Why don’t we just print more money?
    Governments: Genius

    • Joan Del Rosario
      Joan Del Rosario 6 days ago

      Hahahahha

    • Black Lyfe
      Black Lyfe 3 months ago

      Lol

    • Paul Harvey
      Paul Harvey 4 months ago

      Actually, not a bad move. Watch videos with better research: ru-clip.com/video/UkClrikc1bk/video.html

  • El Nino
    El Nino Year ago +1904

    "Too Big to Fail, that's like saying too fat to diet" - Robin Williams

    • Woolf
      Woolf 26 days ago

      Hahahaha 😂😂😂😅 this made my day

    • Vallahd Sacretor
      Vallahd Sacretor 2 months ago

      ​@squidweirdo That isn't the issue, at least not the whole issue. The problem is the value of one dollar falling further and further, and that does happen when you have more money. Let me explain.
      In 1990, the average price of bread cost $0.75. If you had $10, you could buy 13 loaves of bread with some change left over for taxes.
      In 2020, the average price of bread cost $2.50. If you had $10, you can buy 4, taxes excluded.
      This means that the value of the dollar has dropped, in this singular context, to roughly 30% of the value it was in 1990. This would be horrible if wages were stagnant, but they aren't. In fact, wages and thus the amount of money in the economy has increased to match this inflation. Average salary for the US was at around $26,000 for a career job. Current day, that has jumped to $71,000 (Numbers borrowed from Google, so metrics may change based on sources). This is inflation, and it's generally good in a controlled amount. More money means that, while the individual dollar is less valuable, more money is available. But there is such a thing as too much.
      As of February 2022, we're seeing a hike of about 7.9% inflation, at the all time high, and it looks like it's going to keep going up. 2021 saw it at 7%, when they turned on the printers and walked away. If it continues to trend this way, the value will continue dropping at a rapid rate, when the average was roughly 2%, a rate that still saw the value of wages falling behind cost of living.

    • Rand West
      Rand West 5 months ago

      It's more like saying "too fat to have a heart attack"

    • Shawn Elliott
      Shawn Elliott 5 months ago +1

      It is, in fact, possible to be too fat to diet. If your insulin resistance gets bad enough, you can't just reduce your calorie intake and expect to lose weight, because as soon as your body has to start metabolizing fat into sugar, it will have to do it in such large quantities to overcome your insulin resistance that it will start poisoning itself with metabolic byproducts like acetone. And if you are fat enough for that to be a problem, trying to lose weight by increasing your physical activity instead is likely to cause such severe cardiovascular stress that you'll be at severe risk of a heart attack. For extremely fat people, the least-dangerous way to lose weight is surgery. That analogy carries-over to systemically-important financial institutions as well.

    • Jacob S
      Jacob S 6 months ago +1

      @squidweirdo have you seen the governments ability to screw up on an astronomical scale? Or their willingness?

  • StevenR
    StevenR 10 months ago +503

    I feel like one very important thing is overlooked, the fact that this is happening to every country around the whole unlike the case studies that u referred to where those events happened to one specific country.

    • Lynx Africa
      Lynx Africa 2 months ago

      @GaijinGains what do you think is going to happen with fuel at all time highs etc, thanks

    • Kroku
      Kroku 3 months ago

      @Kutuzov M Installing a militaristic government in a democratic country=farting too loud, Invading an another country=farting too loud.

    • ThaJay
      ThaJay 4 months ago

      @Loki-Of-Asgard lol governments have always controlled currencies and that's generally a good thing.

    • guatemalantomcat
      guatemalantomcat 5 months ago +1

      I suppose if everybody is poor then nobody is poor

  • ronald toala
    ronald toala 10 months ago +208

    The last part of the video is exactly what happened in my country Ecuador, we used to have our own money (Sucre) but then the stupid bankers broke our economy and we had to adopt the dollar as our official currency. Besides the lost of savings of many people and the huge migration that occurred during that time, the prices of the mortgage were so low that we ended up paying literally 10 cents monthly as a mortgage and that's why our parents could buy houses. As a kid I always wondered why you could pay a house with pocket money but I now understand the importance of having properties instead of cash

    • Miller Forester
      Miller Forester 5 months ago +3

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

    • fieldofsky
      fieldofsky 5 months ago +1

      wealth envy is a considerable force

  • ATXAdventure
    ATXAdventure 11 months ago +196

    This would explain why some major corporations are spending 200% over market to rush out and purchase large tracts of homes.

    • Austen Moore
      Austen Moore 5 months ago

      This strategy didn’t work out great for Zillow

    • Jake Ellis
      Jake Ellis 7 months ago +4

      @CoolHandLuke okay but when debt to gdp has increased by double since 2008 in most western nations you don't have to be an economist to figure out that this level of overvaluation, inflation and borrowing is unsustainable.

    • Connor Koldeway
      Connor Koldeway 8 months ago +2

      @David E. Vogel What's the fake news? What's the truth?

    • Jake Ellis
      Jake Ellis 9 months ago +4

      @Todd Pick it doesn't matter if its Canada or the US, a great recession is coming (us debt to gdp was a bit over 60% in 2008 and now its nearly 130%) and it'll be worse than 2008, the writing is on the wall, then your investments in housing will be worth pennies on the dollar. The great recession 2.0 is coming for the simple fact that the overvaluation of economies in the west has been going unchecked, even after we proved how dangerous that is, and the only solution they've come up with is borrowing more money.

    • Todd Pick
      Todd Pick 9 months ago

      @Jake Ellis I suggest you look up the difference in regulatory process Canadas housing market has vs the US in 2008.

  • Rationalific
    Rationalific Year ago +2879

    As an actual multi-billionaire, I have to agree with the sentiments expressed in this video. (I have a 100 billion Zimbabwean dollar bill.)

    • MultiLangCoder
      MultiLangCoder 2 days ago +1

      @Neville Taylor Its already worth nothing but ok. They were legally made worthless.

    • Victor McDonald
      Victor McDonald Month ago

      I mean a fellow billionaire in baby doge coin😂

    • General Granger
      General Granger 5 months ago

      I'm gonna be a TL millionaire soon I feel like

    • Joshua Kevin Serdan
      Joshua Kevin Serdan 5 months ago

      @Neilos 1714 A country literally have to change their currency in order to have a currency, so that the previous overprinted currency is still worthless and won't affect the economy they are trying to build

    • Robert Steinbach
      Robert Steinbach 5 months ago +1

      I assume you are wallpapering your house with 1 million Zimbabwean dollar bills.
      I considered recovering my floor with US pennies.

  • Kopie
    Kopie 10 months ago +177

    my irish grandpa use to say, there is no inflation when you plant potatoes and veggies and raise chickens and ducks.

    • Alexander Stollznow
      Alexander Stollznow 3 months ago

      @Tizoc Good answer!

    • Tony
      Tony 4 months ago

      I “promise” to pay the bearer on demand.

    • Patrick Reynolds
      Patrick Reynolds 5 months ago

      ​@the fance Haha nice summary, had to refresh myself on the Diamond Paradox. I guess another way to look at it is the law of marginal utility. The first few eggs are very valuable, with each additional eggs having less utility until it hits zero. I'd say with certain assets, the marginal utility curve will eventually give negative utility. Unused eggs start to rot and nobody want to live with rotten eggs or clean them up. I guess I can't say eggs, the commodity as a whole are worthless, only the eggs produced/existing after exceeding the point where marginal utility = 0.

    • the fance
      the fance 5 months ago

      ​@Patrick Reynolds Let's shift the frame to the Diamond Paradox. Kopie, The Senate, and Gallo Gallas are saying
      > _Water (i.e. chickens) is useful per se because you can ingest it, regardless of its exchange-value._
      You and sexysilversurfer are saying
      > _wrong! water (i.e. chickens/oil) is worthless since the exchange-value is approximately $0._
      sexysilversurfer's comment was funny. But if we're gonna go full autism, "but what about the exchange rates!" does indeed miss the point of "autarky insulates me from floating exchange-rates and other macro-economic shenanigans".

  • Kirk Boo
    Kirk Boo 5 months ago +11

    I had a teacher in middle school explain inflation the following way. Assume you’re an overworked student and you wish for more minutes in a day, so you can study more. The sun rises and falls at the same time, but you say to yourself, “each hour is now 120 minutes, rather than 60”. You therefore have twice as many minutes in 1 day, and therefore can get twice as much accomplished! … right?

    • J L
      J L 4 months ago

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

  • J S
    J S 5 months ago +78

    Watching 7 months later, and somehow this video is turning out to be more right in its predictions than the fed and treasury secretary who are backtracking on their “it’s just transitory” claims

    • Alexander Stollznow
      Alexander Stollznow 3 months ago +2

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

    • BaoBou's Music
      BaoBou's Music 4 months ago +1

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

    • Tanveer Hasan
      Tanveer Hasan 5 months ago

      Sad

  • Alexus Harrison
    Alexus Harrison Year ago +14

    This just gets more haunting the more I see it because you can see it happening in real time. I think we still have to have deflation first which will fuel them to print even harder

    • TooLegit2Quit
      TooLegit2Quit Year ago +3

      Deflation is all around us, that’s why they print. Prior to the pandemic there were 3 major deflationary forces. 1. Globalism (over 2B people worldwide live in less than $5/day and are a massive source of endless cheap labor). 2. demographics (ie over 25% global population is baby boomers who consume less the older they get). 3. Technology (constantly makes everything cheaper). This is why the Fed has been printing since 2008 and with no CPI inflation. Then comes the pandemic and the most massive demand shock the world has ever seen=massive deflation shock. That’s why the fed sprang into action last March with infinite QE. They are battling deflation on all flanks, because if it takes hold the debt spirals out of control and the whole system unwinds. All Banks fail, institutions fail, governments fail and society starts coming apart at the seams. Check out Ray Dalio Long Term Debt Cycle Thesis and “The price Of Tomorrow “ by Jeff Booth to get up to speed.

  • AV
    AV Year ago +7170

    As an argentinian I am kinda offended you didn't use us as an example in the intro. We work hard to be on that kind of list, sir!

    • AV
      AV 5 months ago

      @neferiusnexus hahaha well, that is like calling the nazis socialists bc of the name

    • neferiusnexus
      neferiusnexus 5 months ago

      Ah but your country is still technically run through capitalist means, so it would look bad if it failed because of capitalism's inherent flaws.

    • Gaming 4 Ever
      Gaming 4 Ever 5 months ago

      Venezuela has enterd the chat

    • AV
      AV 5 months ago +1

      @hans scheltema Peak comedy right there. At least you can't call us boring hahaha

  • Hassle-Free Traders
    Hassle-Free Traders Year ago +764

    "reckless printing and borrowing, along with decreased industrial capacity"
    hey, I've seen this one before ! - American, 2021

  • Supernova
    Supernova Year ago +16

    The connection between debt and inflation was mind-blowing! I never thought of that. Great video! Thanks!

  • Gustavo Barrios
    Gustavo Barrios 6 months ago +10

    The marble example is brilliant, I remember when I was in Venezuela I took a loan of the equivalent at the moment of 2000USD, later I full paid the debt only with 100USD

    • Gustavo Barrios
      Gustavo Barrios 4 months ago

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

    • Gustavo Barrios
      Gustavo Barrios 4 months ago

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

    • Matthew Gray
      Matthew Gray 5 months ago +1

      @herrabanani yes but you still owe them the same amount of dollars you borrowed regardless of whether they refinance or not

    • herrabanani
      herrabanani 5 months ago

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

  • Brennon Brunet
    Brennon Brunet 7 months ago +1

    Interesting video, sorry I didn't come across it sooner. Quick question for you (or anyone knowledgeable in the crowd): How would hyper inflation work with cryptocurrencies? Are they more or less susceptible to hyper inflation? are they immune from it?

  • xpusostomos
    xpusostomos Year ago +5251

    I accused my wife of being a shopaholic, but she replied that she was just shorting money as a sound financial investment.

    • A Pove
      A Pove 5 months ago

      @Wassermann Berlin thank you for link

    • A Pove
      A Pove 5 months ago

      @Mathew Hiscock dude that’s perfect. That’s exactly what I noticed working at what is now Ameritrade . Used to be Scottrade and I worked in Palm Beach , Fl. S&P 500 appeared to be the only sure bet over time . It’s this info about China becoming a superpower that is making me wonder now if it will sustain.

    • A Pove
      A Pove 5 months ago

      @Mathew Hiscock this is a good point. I’d rather my child stay home 5 more years and save for down payment on home … however… I sense another crash coming. When I sensed that off my financial and economic knowledge, I RU-clip the billionaires, and they are saying same . My only question is - where are they putting theirs? China and Asia I hear. But what companies, industries? Seems the imbalance of financial power is in okay here and can’t sustain trust for the average citizen. My take anyway. Politicians maje huuuuge impacts sometimes permanently , with what they do.

    • MrEyesonthelies
      MrEyesonthelies 5 months ago

      If she is buying non perishable food, and the means to defend it, she would be right

  • Peter F-Model
    Peter F-Model 5 months ago +8

    This is one of the better videos, dare i say the best one i have seen in this channel. It should be noted the Consumer Price Index CPI in the United States reached an all time high of 276.72 points in October of 2021. The average between 1950 and 2021 was 117.64. Over the last 12 months, November/October it was 6.2%, based on the News Release from the Bureau of Labor Statistics dated October 2021. Inflation is currently back ended, which means inflation could reach +9% in the next 12 months, if not sooner. Its not hyper-inflation, but the trend is not very good.

  • Dunar Solid
    Dunar Solid 9 months ago +4

    What if most other countries have a inflation at the same time because of a global event like the pandemic, then the dollar would be only weak against the CPI but not against other currencies or economies?

  • John Davie
    John Davie 8 months ago +31

    Why not mention that in every one of the cases mentioned the hyperinflation was due to printing money to purchase foreign currency, enormous foreign denominated debt in the case of Zimbabwe and Germany, and pressing need for foreign currency with DPRK? Can you give an instance of hyperinflation where this wasn't the case?

    • michael riviello
      michael riviello 5 months ago

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

    • Daniel Kuzeff
      Daniel Kuzeff 5 months ago

      @michael riviello why?

    • Commentator541
      Commentator541 5 months ago +2

      Same was the case for Yugoslavia. They needed Deutschmarks.

  • robrobbins
    robrobbins 9 months ago +12

    This video has convinced me to YOLO my life savings into precious metals. Thanks for the financial advice!

  • KOLA
    KOLA Year ago +537

    Brazil went through periods of hyperinflation from 1989-1994 (> 1000% y/y at times). Before that, we had 50 years of high inflation (> 2 digits a year). All of our parents and grandparents have been through it. It's really hard for me to process how my parents managed to live with that kind of economy, it seems impossible that you can even survive that. Some really bizarre things happen to your daily life, like having to immediately spend everything you earn in the market and depositing all the rest in the bank so it won't lose all its value. Long queues in all markets and banks, entire rooms reserved for stocking food and supplies at home, dollar black markets.
    The main causes of hyperinflation in Brazil were the very high spending by the military government that ruled from 1964-1985 and the uncontrolled money printing after that. At one point, the minimum wage had to be readjusted every two weeks and even then it wasn't enough to keep up with inflation. Bank deposits would yield something like 40% a month, which also wasn't enough to retain all value. Many economic plans were tried in the late 80s and early 90s to solve the problem, none of which worked. Price freezes would make items vanish and new currencies would spiral into nothing in a matter of months. In 1990, the first democratically elected president after the military dictatorship literally took all the money people had in the bank, promising to return the nominal value in the next years. Of course, the nominal value was worthless after a few weeks so effectively most people lost all their savings. He was later impeached.
    The Real Plan was the one that actually saved the Brazilian economy. Economists recognized that chaotic money spending and printing, plus the psychological effects of inflation (inflation expectation generates inflation; they called it 'inertial inflation') were the causes of turmoil. The government adopted the Unit of Real Value (URV), which didn't serve as official currency initially but instead as a stable indicator of the value of things. Even though the official currency at the time (Cruzeiro) quickly inflated, the URV stayed the same. All prices had to be labeled in Cruzeiros + in URVs. This was really a psychological war against inflation, since people began noticing how prices were stable in URVs.
    Eventually, in 1994, the government announced the currency would change from Cruzeiro to Real, 1 Real being equal to 1 URV. Along with that, several measures like the prohibition of money printing to pay for public debt and laws of fiscal responsibility were adopted, so hyperinflation is structurally inhibited. From night to day, like magic, hyperinflation disappeared. We use the Real up to this day and it's a legitimate reserve of value (albeit not perfect).

    • Gabriel Valadão
      Gabriel Valadão 3 months ago

      Na real a hiperinflação aconteceu pq o Brasil fez uma dívida em dólar que não tinha como pagar. Se fosse só por goverment spending e money printing os EUA já teriam 900 milhões por cento de inflação (ciro gomeando os números)

    • ThaJay
      ThaJay 4 months ago

      @PH Please take a look at Europe from WWII until now. There is a definite correlation between welfare of the people and social policy.

  • Wedgetail Leather

    Ok, so what impact does international holdings of reserve US dollars have in regard to slowing down inflation, and then what would happen if all major international holders of those US dollars were all to dump it at the same time?

  • Axel Alexson
    Axel Alexson 9 months ago

    Would just like to add that Yugoslavias inflation problem started in the 1980s already. By 1987 inflation was 160% and kept that way because Serbia opposed combating inflation and with its votes (1 Republic 1 vote) from Vojvodina Kosovo and Montenegro (which seebia took direct controll over) it naturally overruled the concerns of the other 3 republics.
    But that was just part of why Yugoslavia fell apart.

  • Cameron Huff
    Cameron Huff Year ago

    Mind blown. So all the rich people trying to make money off of inflation are the very people stopping inflation from happening. You’re a genius. Great video!

  • Tyler M
    Tyler M 10 months ago +272

    "Millions of people out of work" while at the same time "Largest worker shortage in US history".

    • Trevor Smith
      Trevor Smith 5 months ago

      If people don't have to work to eat they won't.

    • Dark Brotherhood
      Dark Brotherhood 5 months ago

      Why harm your margins when you can mechanise Labour long term and import cheaper labour short term from the border

    • Ttheblindseer
      Ttheblindseer 5 months ago

      @Dirk Van der Merwe Yeah, it’s called living in a society. I hate paying my taxes as much as anyone else, and take every business deduction I can, but I still do it because without the meager social safety net I and every other disabled person in this country would probably at best be panhandling and at worst by institutionalized.

    • Dirk Van der Merwe
      Dirk Van der Merwe 5 months ago

      @Sean Leave and find a new job.

  • Julián Oliva
    Julián Oliva Year ago +3619

    In Argentina we were born into the inflation, molded by it. We didn't see stability until... We leave

    • The Count _
      The Count _ 6 months ago

      😂😭

    • Ivan
      Ivan Year ago

      Sounds like the Bane quote from TDKR

    • Sadrien
      Sadrien Year ago

      ​@Don Shepard The government just lies about the inflation rate with a completely manufactured and non-representative CPI (consumer Price Index) to convince you your savings in a bank still matter so they can funnel all that value right to the people who have most of their money in assets (the ultra rich who control more than 80% of all assets in the world despite being less than 0.1% of the population) by printing more money. They benefit from compound interest, you lose via compound inflation. It's reciprocal. Just last year 25% of all USD was issued (yes including digital currency)... At the same time the GDP dropped and unemployment soared. This is the definition of hyperinflation. And we will not stop printing money. The transition to solar power will be expensive in the short term and the government will finance it with more printing. Trillions of dollars of fake money per year that dilutes the value of any currency savings. Hold assets not printable currency. All printable currency suffers inflation over time and risks becoming completely value-less in the invent of a real economic emergency. Land never stops being valuable (especially if it is water shed land).

    • Isaac Planck
      Isaac Planck Year ago

      I was looking at minimum wages as a percentage of GDP per capita, and noticed that in Argentina it's 170.8% which I don't even understand how that could be a thing - is it just an attempt to stay ahead of inflation?

    • Veger
      Veger Year ago

      @Diego Pizarro Espinoza Don't cry for me America!

  • Christopher Woerz
    Christopher Woerz 8 months ago +33

    I think my favorite false choice in the video was "either the stock market is irrational or the dollar is weaker." As if it can't be both!

  • jamie Bell
    jamie Bell Year ago +2

    These are all great videos on Economics Explained channel, incisive and well presented, thank you for your content. Could I suggest a couple of subjects...
    1. Why euro is critised a lot for the constraints it puts on individual countries, whereas the dollar has underpinned the economic success of USA, this seems to be a an anomoly. How it can it be explained ?
    2. Economics of politics and politicians

  • TrebleizerQuartet
    TrebleizerQuartet 9 months ago

    With how predictable the pattern is leading up to hyper-inflation, i don't understand at all why people dismiss the possibility that people in this world could choose to deliberately cause an economic collapse. It's really not that far out of the realm of reason, especially with all the vertical monopolies formed by successful software design in modern times.

  • Andras Libal
    Andras Libal Year ago +318

    I remember my grandma had some paper money saved from the 1945 Hungarian crisis
    It said Hundred million billion pengő ... some crazy denominations. Hard to even comprehend it.

    • gergo ikid
      gergo ikid 7 months ago

      Tanar ur! :D

    • Super Dingo
      Super Dingo 11 months ago +12

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

    • Jaime
      Jaime 11 months ago

      @Jon Snow - good for a loaf of bread.

    • Jon Snow
      Jon Snow Year ago +21

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

  • Harisi
    Harisi Year ago +2658

    Now it's time to read the comments and see what the experts have to say.

    • VivAtreyu
      VivAtreyu 10 months ago

      @Arthas93
      My guess is that everyone is doing it right now and/or that people have not realized it yet. Look at the money stock in Canada. It’s going to crash soon and it will be horrible.

    • Martin Martin
      Martin Martin 10 months ago

      @Alexander M HAHA sarcasm goes brrrr

    • Alexander M
      Alexander M 10 months ago

      I can't tell if you're being sarcastic... this video wasn't done by experts, a lot of it's wrong.

    • michael lee
      michael lee 10 months ago

      Meh, as long as OPEC only accepts US dollars for oil, other countries will always have a need for US dollars. And all the other countries printed money during covid and some still are. Covid has been getting worse in 2021 around the world. Most countries have vaccine shortage and people are tired of staying home so transmission rate has been going up in other countries and will continue to do so for quite some time.

  • Tim Frudenberg
    Tim Frudenberg 7 months ago

    Great video, very well explained, thanks 👌

  • August Von Mackensen
    August Von Mackensen 7 months ago +3

    We used to love using Cheques during hyperinflation, by the time they cleared ( back then it would take up to a month ), they would be worth nothing. Prices used to double every couple of days.

  • Faheem Sardar
    Faheem Sardar Year ago +1

    You could have said that the US exports its deficits (managed by printing more money), which is probably the largest export of the US.
    In simple words, the excess supply of fresh printed money that revs up the US economy is held by other countries which insulates from direct inflation.

  • Borborygmus
    Borborygmus 7 months ago

    "Checks in the mail" was a campaigning slogan for both parties, as if it were a good thing. People even criticized the one candidate who was going to send smaller checks.

  • Johnny Schmegma
    Johnny Schmegma 10 months ago +2

    You don't think dropping the interest rate from 2% to 0% had anything to do with the inflation of the most heavily financed assets in the US? Consumable goods stayed cheap because you cant use them as collateral on a loan! It's not the money printing it's the interest rate.

  • George Cowsert
    George Cowsert 10 months ago +5

    I have a feeling that all the big economists and business people are working together to lessen how people perceive our situation, as hyper inflation typically only goes south when a large enough collective panics and tries to fight against it.
    After all, if nobody raises the prices to match how hyper inflated the currency is, then nobody will feel the impacts of hyper inflation.
    It's a very delicate balance, but it gives the economy time to properly adjust so the inevitable crash won't be as disastrous

  • Dwight Turner
    Dwight Turner 9 months ago +18

    If you know what hyperinflation is, then you can't say it's already here in America.

    • Mike Davey
      Mike Davey 5 months ago

      @Tyeler Brown It's click bait.

    • Tyeler Brown
      Tyeler Brown 6 months ago

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

  • abcdefghijklmno29753
    abcdefghijklmno29753 Year ago +38

    What bothers me most is that financially responsible people get forked in this scenario. I paid off my mortgage and loans at age 34, have sound savings and, apart from a cheap, but fancy car, live a simple, scroogy life. If this scenario turns out to be true, I'd have lived my entire life wrong.

    • 11hunter22
      11hunter22 10 months ago +1

      @citation Sloth yet gold hasn't lost its value for 6000 years

    • citation Sloth
      citation Sloth Year ago

      @Patrick Welles
      The use of gold and silver is overstated by to many
      Gold is use in layers atoms thick
      Silver will soon see a boom with solar panels use
      Pretty much what I'm saying is the current value of both gold and silver is significantly higher then the production value of them
      Although silver is gonna get big real fast
      But again the only real currency is energy
      And production.
      And of those only energy actually inherently has a value

    • Patrick Welles
      Patrick Welles Year ago +1

      @citation Sloth I work in precious metals remediation. I can tell you with absolute certainty that electronic components are reliant on precious metals supplies. They are not fiat but rather commodities, and they are the circuitry of all computers.

  • swaa
    swaa Year ago +1931

    Oct 2020 - Is Hyperinflation Coming?
    April 2021 - Hyperinflation is Already Here
    Can't wait for the third act in this blockbuster trilogy

    • Alex C
      Alex C 4 months ago

      @Pedro Chorão Cryptocurrency is a ridiculous bubble, that's how

    • DarkPa1adin
      DarkPa1adin Year ago

      economy burst

    • tgdelta
      tgdelta Year ago

      Hyperinflation is over, why you missed it

    • G. Williams
      G. Williams Year ago

      @Jericho Paita Fourth part. Economic system needs to collapse first

  • Tropics
    Tropics 5 months ago

    Wow ! Well done explaining in layman terms. Like a child can understand 👏👏 the entire world is doing this. Asset prices must eventually fall as no one is left to buy them and the money runs out ? Yes ? Hopefully slowly ? Bring all the high flyers back to the level of all us plodders ?

  • Caio Fehr
    Caio Fehr Year ago

    The explanation about how the government strategy to solve it should be was a bit lacking, but all the other parts were awesome as always

  • Robert Parker
    Robert Parker 4 months ago

    An interesting example of inflation is what has happened in most countries. 1 British pound in 1900 is worth over 110 pounds in 2022. The 1970s the pound value reduced its value by 4 times. This type of inflation is what you should worry about, not the crazy inflation of Venezuela.

  • AlexanderZero
    AlexanderZero 9 months ago +7

    Price increases of commodities and goods can be directly linked to supply chain disruptions due to COVID. It's way too early to proclaim hyperinflation.

  • César Rodrigues de Oliveira

    Americans: "Hyperinflation is on the horizon"
    Me, a brazilian: "So, first time?"

    • VIDEOS CLASSICOS MELHORADOS
      VIDEOS CLASSICOS MELHORADOS  Year ago +2

      @Joseph Davidson your typical American response, this thought "my home's security system is better off the street, and I will never be stolen, even if all my neighbors have been stolen"
      this is arrogance, and all arrogance will be punished
      the time the FED raises rates ... you will become a Mexico with branded clothing.

    • Chris Heller
      Chris Heller Year ago +1

      No, 2nd time for the US. The first hyperinflation period here was during the US Civil War.

    • rockstarofredondo
      rockstarofredondo Year ago

      @César Rodrigues de Oliveira I know a Brazilian whose shoe factory was confiscated during that time. They just came in one day and kicked everyone out and put padlocks on the doors and basically said “this is now property of the Brazilian govt.” They suffered several years of economic hardship and eventually came to the US to find work.

    • RoninFelon
      RoninFelon Year ago +2

      @Upside down Peon Oh for sure.I totally agree there is a ridiculous level of partisan b/s that is being pushed through every corner of conversation. Very prominently in exactly what you described. When the GOP shovel out dollars to the capital class, DNC lose their freakin minds. Then DNC take office and turn right around and shovel out more cash to the capital class, followed by the GOP then taking up the mantle of freakin out about deficits lol . This is insane. Oh side note since leaving my original comment I have kinda badgered and forced my neighborhood into some serious discussions lol. That said, I live in Georgia and I also agree that companies are begging people to come work. Where my wife works they dont even have 40 applications on the bench in the whole district . Being their starting rate is $8 an hr and even their 45+ hr week salaried positions are not much higher than poverty rates I cant say it shocks either of us lol. So I would say the slow coming back to work is not due to fear of the virus or being able to be lazy on the tax payers dime but rather the fact that people finally were kinda forced into a moment that let them evaluate their life. From talking privately with many I can say they are pissed lol and rightfully so in most cases. Many are seeing how they have been burning through their time on this earth , sacrificing time with their kids and loved ones etc for not much more than scraps. Now I find that was not the kicker. What pushed it all over the edge was realizing just how much of the .1%'s failures have been shifted into externalities in which we all have been forced to be responsible for and forced to maintain their insane standard of living, all while taking responsibility for basically every cost that comes with just living life. So while I agree that we have a significant problem domestically, I also would say directly or indirectly there is usually a correlation between foreign and domestic. Even if only for the insane amount of money that is allocated to be wasted on immoral military charades and conquests.

    • Upside down Peon
      Upside down Peon Year ago +1

      @RoninFelon though non of it was really because of foreign policy as much as it was domestic, I live in eastern US where warehouses and factory's almost beg you to stay, instead people are quitting for unemployment cause it's more pay than their 40-50 hour work weeks. when a country prints trillions of dollars of stimulus then the new administration wants to print 2 trillion dollars for their first year and gets hailed as a heroic deed while the previous administrations print 200 billion and got destroyed for being wasteful and spending to much money. Something isn't right.

  • Ben Heslop
    Ben Heslop 11 months ago +13

    Production (supply) has to decline precipitously. That's not happening to a great extent in basic goods, but is in discretionary goods, such as electronics and cars. Therefore people will still respond to price increases by decreasing demand. It's entirely different with price inelastic goods such as food and housing.

    • Ben Heslop
      Ben Heslop 7 months ago

      @Harry Seaton money printing is keeping things from collapsing. Look up the great depression...

    • Ben Heslop
      Ben Heslop 7 months ago +1

      @Harry Seaton true but if you reduce the wealth of the rich, it will free up resources currently used to service their needs

    • Harry Seaton
      Harry Seaton 7 months ago +1

      @Ben Heslop raising wages for the poor would help the poor slightly, but it would lead to higher cost of living in itself, and it wont immediately fix labour shortages, that I think will be driving wage growth, but to a larger extent inflation. Dosent matter if you pay the poor 60k a year instead of 40k, if inflation moves the cost of living to above 60k before wages go up.

  • MOJOJONO
    MOJOJONO Year ago +3

    The classic hyperinflation scenarios of Weimar, Zimbabwe, etc are different from the US. It ties back to what was mentioned, being the world reserve currency with many contracts, services, commodities, etc indexed or paid in USD. That is the biggest difference with the US and the big unknown of where things will go. As well, the US is generally self contained with vast mineral and agricultural resources so they do not necessarily need to completely rely on foreign suppliers.
    The closest peer is the British Empire when they essentially had the world reserve currency, but they lost that status due World War 2. I do not know if the British experienced hyperinflation and how orderly the transition was (minus the World War and their debts repaid by 2006), but there was the Bretton Woods conference of 1945.

  • James Smith
    James Smith 10 months ago +4

    To me it sounds like the traditional approach of investing in solid things with tangible value is better for the economy than trying to short it

  • Rink101MI
    Rink101MI Year ago +80

    12:15 There have been very large increases in the prices of firearms and especially ammunition. Common calibers like 9mm and 5.56mm have at least tripled in the past year. It's likely due to greatly increased demand, but the reasons for that demand make it somewhat more ominous.

    • barebare
      barebare 6 months ago

      @Tizoc Yes, because we got so rich, people put the money into real estate.

    • Tizoc
      Tizoc 6 months ago +1

      @barebare nah, prices went up. purchasing power for consumer goods went up but for homes and higher education , they went drastically down.

    • barebare
      barebare 6 months ago

      @Tizoc purchasing power of the median American household has increased 40% since the 70’s, not exactly starving.

    • Tizoc
      Tizoc 6 months ago

      @GlacialImpala More like decreased National Will power/ Morale. You can't expect people to do something they dont want to do when the cost of living far exceeds the cost of their labour to the point all their only incentive to produce is to still owe. At some point the REAL estate industry has be taken into account. Land Speculation is out of control and there is no regulation.. But that's fine all hail the coming Neo Feudal state. Production is burnt out and material sourcing is getting harder as others want what we want.

  • Ultra Screens
    Ultra Screens 7 months ago +2

    1:05 Amazing how governments have to go through ‘private banks’ 😂 It shows who really runs the world.

  • Jessica Morgani
    Jessica Morgani 7 months ago

    "Had no choice but" is something that should never be said about the economy.

  • Stan Johnson
    Stan Johnson 4 days ago

    I've seen this video before, but it's even more telling, now that we're almost halfway into 2022, with an "official" US inflation rate that's over 8%, and seems to still be on its way up.
    Clearly, the US is *not* too good for inflation. I'm hoping and praying we don't get into hyperinflation. I mean... you can only blame Putin for so much before people figure out it wasn't really his fault. (Oh, wait... we've already figured that out.)

  • A MAN
    A MAN 8 months ago

    Here’s what I’d like to see a case study on:
    what will happen to inflation & money value when currency goes digital?
    please do a piece on it, I just can’t seem to get my head around it, I think it might end currency fluctuations

  • Smile
    Smile Year ago +1600

    Just withdrew my life saving and exchanged all my US dollars into the very stable Zambian currency while also buying real estate in the property rights protecting Argentina.

    • Oscar Bear
      Oscar Bear 11 months ago

      I'm buying up land in Venezuela for when the economy flips and Venezuela is the super power

    • Desmond Joyner
      Desmond Joyner Year ago

      Yeah right

    • Andrew Heffel
      Andrew Heffel Year ago +2

      @New Imperials Exactly right, but with most people living in a big city it's impossible for 90% of us. I am well off and live in beautiful South Orange County, CA, 20 minutes from Laguna Beach. If SHTF, I will probably be among the first to die. I have the money to do it, but I am not buying 10 acres and a cabin in rural Montana and growing potatoes. I refuse to hide out and wait.

    • David Murphy
      David Murphy Year ago +1

      @Default78334 My gun already doubled in value. Buy more.

    • New Imperials
      New Imperials Year ago +1

      @Socucius Ergalla That’s why you should have at least 3 years worth of stored food, and that’s if you’re not self-sufficient. People should buy into gold and sliver, and buy a large property and make that property self-sufficient and off the grid. Buy guns and ammunition. You might be called a hoarder, but buy everything you think you need, because you’ll probably need it.

  • ivan55599
    ivan55599 7 months ago +6

    "Hyperinflation is already here" is pretty strongly said, if you claim at the same time that this is full of speculation.

  • MaJieMao
    MaJieMao Year ago +24

    Hyperinflation is mute when the entire world is seeing a rise in costs due to Covid, because a rising tide lifts all boats, same for the receding tide, it will be a great restrictive factor on possible inflation.

    • Todd Pick
      Todd Pick 10 months ago +4

      @SoapBoxHero Except hes wrong because wages arent growing exponentially to rate of inflation are they. So ask someone who is making $25/hour right now and saw the average price of everything go up 30%+ if it matters or not.

    • Todd Pick
      Todd Pick 10 months ago

      The entire world isnt necessarily seeing as much of it and not every country has an innate ability to pay debt down.

    • SoapBoxHero
      SoapBoxHero 10 months ago +5

      @Z C What he's saying is that since everyone is printing money, the consequences of inflation are massively reduced, while the benefits are increased.

    • Z C
      Z C 11 months ago +5

      A rise in cost due to covid? Do you hear that? It’s the sound of the fed running their money printer buying $120 billion dollars a month in assets. But yeah, let’s go with the supply and demand theory and how Covid caused this 😂😂😂

    • Steven C Highley
      Steven C Highley Year ago +8

      Moot, not mute.

  • Agustin Barrachina
    Agustin Barrachina Month ago +3

    One year after this video and indeed, politicians are now becoming worried about hyperinflation. Too bad that u where right.

  • yan-Deriction
    yan-Deriction Year ago

    Re: the last part about taking out a loan to buy an asset and hedge. People love to hate RH but its crazy how they offer margin at 2.5% interest (5% pre covid) with basically no screening. Just an incredible amount of liquidity

  • John Smith
    John Smith Year ago +456

    I lost my job in the construction industry during corona, and recently I was looking to do some renovations, then I saw the price of materials basically doubled across the board.

    • oldsjunkie1
      oldsjunkie1 Year ago

      Look into the new rubber "shortage". Need IC chips? Nope. Bogging us down until it all stops dead...

    • ask the Etruscans
      ask the Etruscans Year ago +2

      @jnicholsonjr The price of labor has doubled in Michigan. Had to suspend paving operations for lack of workers. Help wanted signs EVERYWHERE, while everyone sits at home and collects unemployment.

    • Kael M
      Kael M Year ago

      @Pedrito Dio That's already happening

    • ℛɛᴛʀᴏ ℛɛᴅ
      ℛɛᴛʀᴏ ℛɛᴅ Year ago +1

      Best indicator of inflation is a McDonald's menu. In 2019, a spicy Mcchicken was $1.10. It's now $1.99.

    • jnicholsonjr
      jnicholsonjr Year ago

      If you need work in the construction industry, the price of trade labor in greater Philly has gone up drastically. Major blue collar labor shortage there. People sometimes cant even get contractors to show up to quote a price.

  • Lorn De
    Lorn De 10 months ago +15

    My six figures of student loan debt insures me against hyperinflation.

  • Jimmy Hwang
    Jimmy Hwang 3 months ago +2

    raising interest rate to lower the bond value. raising the inflation rate to lower the dollar value. pay off the value less bond with value less dollars. get us out of the debts that we owe to other countries. what a smart move

  • Kendon Grace
    Kendon Grace 10 months ago +21

    "Economists have predicted 11 of the last 7 recessions."

  • Richard Coppin
    Richard Coppin 5 months ago +2

    One thing that wasn't explained in the video: is that in each of the examples, each central bank printed money to stimulate their economy which led to hyper-inflation. The question is, what should/could they have done instead?

  • Bradley Boyer
    Bradley Boyer Year ago +697

    Years ago, I had a guy once ask why we couldn't just give more money to everyone. I laughed at the time. Who knew he was ahead of his time?

    • Michael Scottland
      Michael Scottland 6 months ago

      Probably he was secretly working for the Federal reserve 🤑🤑.

    • Hector Vega
      Hector Vega Year ago +1

      What I learn from this comment section is nobody knows about Socialism.

    • Normie
      Normie Year ago

      @the western rising sun corporate jobs require someone with skills/knowledge. So it’s not welfare

    • ozlicious
      ozlicious Year ago

      No need to worry, the government didn't give it to everyone. They skipped the poor and bailed out the wealthy corporations. Trickle down economics anyone? I'm sure that works well with all the unemployed and corporate tax avoidance. Just got to shift all that extra money to the Cayman Islands. Can't cause inflation if it ain't in circulation.

    • Red Redmon
      Red Redmon Year ago +2

      Wow that is super nihilistic. Life is useless because of the economy? Your priorities in life are backwards.

  • THE FAT YOU EAT IS THE FAT YOU WEAR

    Currency Devaluation
    Typically, currency devaluation is always at the heart of a rising gold price. This has been taking place in all of the major fiat currencies, resulting in an average annual price increase in gold of over 10% since 2000.

  • Ser Garlan Tyrell
    Ser Garlan Tyrell 8 months ago +13

    I genuinely met a university-educated adult the other week who thought they had solved the world's economic problem with the idea of 'just print lots more money'.
    I'm pretty sure their degree wasn't in the history of 1920's Germany...

  • WhiteZombie10
    WhiteZombie10 5 months ago

    For the strategy you talked about, just wait until banks rise the debts basing on the value of the money

  • Dark Brotherhood
    Dark Brotherhood 5 months ago +1

    Shorting S&P is tough. There’s 2 sayings around a this. First “just because something is inevitable does not make it imminent”. Second, “ the market can stay irrational longer than you can stay solvent”.

  • saxlaxdm10
    saxlaxdm10 Year ago +1703

    So glad my medical school debt will be worthless when I graduate!

    • saxlaxdm10
      saxlaxdm10 Year ago

      @Aussie God ****being a medic in

    • saxlaxdm10
      saxlaxdm10 Year ago

      @Matt McG ooooooo sppooookkyyyyy

    • Halt die Klappe
      Halt die Klappe Year ago +1

      Uni is free in the uk unless you’re earning a certain amount

  • M J
    M J 8 months ago

    Low or no debt is always helpful personally. Having marketable skills are also helpful. Remember when interest rates went into the 20% range? That cooled a lot of hot living.

  • tj_yt
    tj_yt Year ago +5

    When the US prints this amount of money out of thin air, shouldn’t other currencies become stronger against US dollars?

    • Mike KoolDude
      Mike KoolDude 10 months ago

      Stronger currencies hurt importers but are a boon to exporters.
      Most nations rn are importers, so....

    • Adam Conner
      Adam Conner Year ago +5

      Something to consider here too is that the majority of nations in the world have been printing money just as recklessly as the US has. In such instances you won't necessarily see a significant change on the forex markets.

    • D l
      D l Year ago

      Liviu Velichi woah 😦

    • Liviu Velichi
      Liviu Velichi Year ago +3

      They do. For example the currency of my country (Romanian leu) used to have the exchange rate of 4.5 RON for 1 USD in early 2020. Today 1 USD is worth 4 RON

  • Har Leyd
    Har Leyd Year ago

    As the US prints money (Sells Bonds) it lends it to others and some of them see it as a hedge against weakness in their own balance sheets. But doesn’t this increase risk to the US I hear you say? Yes. Because the economy won’t run by itself, the US has Fannie Mae and Freddie Mac who lend the excess money to Americans on easy credit terms, then converts the debt risk to equity by securitising it. But the risk hasn’t gone away, hence the US government de-listing and bailing them out during the GFC. So the risk is squarely back on the US economy again.

  • logspiral
    logspiral Year ago

    very good! thanks for posting this explanation

  • Alistair
    Alistair Year ago +182

    The housing market here in Canada is going crazy with prices up 30% - 50% on most places. I think we will see things get a lot worse before they get better.

    • S G
      S G Year ago +1

      @RustyPitchforkStudio
      And they buying with CASH OFFERS.

    • Falling Pictures Productions
      Falling Pictures Productions Year ago

      They won't get better. Nothing ever gets better, it only gets worse.

    • the western rising sun
      the western rising sun Year ago

      @Tropical Breeze2000 i meant you as in your nation, Canada. former president trump did mention buying Greenland. also buying another nation would be very much the height of American imperialism. why invade when you can purchase, like with the Louisiana purchase?

    • nonthoughtslinky
      nonthoughtslinky Year ago

      @X 7 perhaps it's time for the lower socio economic classes to bring out the guillotines again

    • the western rising sun
      the western rising sun Year ago +1

      @Tropical Breeze2000 at this point the u.s couldn't buy you because we are too busy buying back stocks to make Jeff bezos corporate dictator of the world. as for why, 🤷‍♂️

  • Akiva Potok
    Akiva Potok 5 months ago +7

    On the other hand Israel had hyper inflation in the 1980's, to the point where tourists wouldn't convert their money to the local Shekel currency until they day they planned to use the cash. But Israel then renamed its currency (Shekels became New Shekels), lobbed off a bunch of decimals, changed its central banking practices, negotiated with organized labor (to keep them from locking their pay to the inflation rate), paid down state debts, and pulled down their inflation rate to below 20% over the course of 2 years. Israel's inflation rate now is now below 2%. So it is not a one way journey or a fait accompli at all.

  • Larry Lentini
    Larry Lentini 7 months ago +2

    All those times he said they had no choice to print money... There's always a choice.

  • Matt Russell
    Matt Russell 11 months ago +52

    The price of everything has been going up over time, I am almost 55 years old, rent, drive a Prius and the cost of new cars and home are unaffordable for me. Both my neighbors are over 70 years old and still working.

    • Matt
      Matt 10 months ago +3

      @Randy Husband
      "In what fantasy world are the "real" price of automobiles the same as 20 years ago?"
      fred.stlouisfed.org/series/CUUR0000SETA01
      "Also your bringing up durable goods was not relevant to HIS post which spoke of two specific categories (rent and automobiles)."
      "The price of everything has been going up over time,"
      Sorry reading is hard for you.

    • Randy Husband
      Randy Husband 10 months ago +9

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

    • Matt
      Matt 10 months ago

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

    • Matt
      Matt 10 months ago +1

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

  • Bzo Ned
    Bzo Ned Month ago +2

    how to be an economist in US 2010: Its over, money printing & hyperinflation is coming. 2011: Its over, money printing & hyperinflation is coming. 2012: Its over, money printing & hyperinflation is coming. 2022: Its over... mone.... 2222: Its ov...

  • Carl Sagan
    Carl Sagan Year ago +2164

    This episode of why life is meaningless and society will collapse within the next decade, has been brought to you by skillshare™

    • Luke Ulibarri
      Luke Ulibarri 9 months ago

      @_____ He speaks to us through the Bible. I think you have a misleadingly skewed view of the Bible. Have you even read it? God gave us free will to choose good or evil. If God were to intervene in human affairs in every case he may as well have never given us free will. He would be a dictator. God will reward and punish people based on their actions on earth. You cannot have free will without the possibility of evil. Evil is a consequence of sin. Good and bad deeds will not go unrewarded or unpunished respectively. If you had studied theology you would have your simple questions answered. But misinformation abounds and everyone is now an armchair theologian making assumptions of that they don't know or understand. I find it interesting how you say that the most "faithful" Christians would kill each other in the past. My simple answer is that it is unreasonably naive to fault an ideology for the failure of some of its followers to live up to its own principles. That is the fault of the individual not the ideology. For example when God says thou shall not kill and someone kills supposedly in the name of God, do you really think that is the fault of Christianity? This is an important distinction.

    • _____
      _____ 9 months ago

      @Luke Ulibarri Ok Luke, you believe what you want. All i know is that god never told me anything, never saw or knew of "him" talking to anyone- not really, just anecdotes, some very old books, and a complete abscence from the guy ever since. Kids being raped or killed, entire populations being burned, his churches destroyed... whatever the situation he never shows up. Also for someone who apparently intended for his message to be heard and understood he always sent cryptic messages and never freaking once came in to clarify on the interpretations, not even when his most faithful followers were killing each other in broad daylight (happened many times throughout history, christians vs christians over slight different interpretations).
      Yet from the so so praised about god- he never shows up. Theres no lack of people saying he spoke to then, always in some inner country area, without ever saying anything practical or rarely helping people who often barely needed help (instead of, you know, villages being raided and such). Curious.
      Yet you go online like you know it all, you know what he meant and what he in fact said, and that he says things, and that scripture is somehow more true then all other scriptures from other gods and beliefs.
      You do you but sorry mate, i dont buy it. I tried to in the past and led me nowhere. The moment i tried to make any sense of it or compare it to anything else, nothing gave me any *real* reason to stick to the whole "blinding following old book despite all reason and proof to the contrary" thing
      I wont be replying anymore. I like debating and sharing ideas (or arguments) over the internet, but when someone is just preaching (btw, what is utter nonsense imho) thats just a no. I know where is the nearest church if i want preaching (btw in my country all churchs are basically supporting the guy who is sinking my country and left people to die, while boasting). Now more then ever im convinced you folk arent just out of touch but outright doing the world more bad then good. Im sure that, if there is a god, he wouldnt be saying or supporting half of what you folk say and the kinds of people you support.

    • Luke Ulibarri
      Luke Ulibarri 9 months ago

      @_____ God made us to share in his glory. We were made to share in his happiness. In heaven God made us to share in his love and happiness. In scripture, God said that human beings would be like "gods." We were made for greatness by greatness that is God. The reason why there are so many christian denominations is that there are different interpretations of the scriptures. There is much confusion and misinformation when documents are translated through many different languages over a long period of time. As a result cultural and semantic context can be lost. That's why the original documents were studied in the original languages.

    • Checkered
      Checkered Year ago

      life isn't meaningless, it's give you knowledge. You are more knowledgeable and wiser everyday, there is a reason for that.

    • _____
      _____ Year ago +1

      ​@Havila Medeiros Do you know? Does anyone? arent gods toughts, intentions, plans and whatever meaning/purpose for us, life, planets and everything his 'misterious ways'? Have the bible ever pointed out clearly why he made us, our purpose or meaning?
      I dont want to discuss beliefs and religion here(altought i love the subject)- but im tired of priests and people at random sayig they know things for sure when not even the bible answers lots of things. In my time within the church i got tired of how many different answers i heard from lots of believers who 'know' what god wants. I dont even see that as ill intent, at least not for half of people i hope, but how everyone is so eager to believe they figured out, they know, and their version is correct. At one point i did too and it was different then most, until i figured it was pointless and extremely presumptious of me, or anyone, to assume they know
      christianity cant agree within itself- just by looking at how many variants and interpretations exist even within one variant- expecting everyone and non christians to agree with yours is short sighted and fruitless. Believe me, at one point i was like that.
      I made my peace with the tought that whatever exists beyond, whatever gods intent is, i will find out later (hopefully). I just live a good life- everything besides that and preaching our assumptions as truth isnt the way, and heck, could even risk damnation according to some

  • Andrew Duddy
    Andrew Duddy 10 months ago +2

    This is easily one of the most valuable channels on RU-clip. One can get a Masters level understanding in Economics for free. Amazing job!

  • As a _______ commenter

    Whenever I watch an Aussie show and something costs 1.5 million AUD, I figured I had enough loose change in my center console or couch cushions to cover it. After 2021 I’m not so sure...

  • Justice Perhay
    Justice Perhay 9 months ago +10

    Marco and Money pretty much debunked all the fear mongering of inflation in a response video. Worth a watch.

  • Lyrai Celestine
    Lyrai Celestine 10 months ago

    This is still too much for me to wrap my head around... It is that "one thing leads to another" that seemed like a rabbit hole of things I have to learn in Economics to even begin to grasp how to be smart in spending money.

  • ervinmiracle
    ervinmiracle Year ago +58

    It would be great to see a video on the CPI and the various ways it can be manipulated to reach 'target inflation'.

    • ABBZ
      ABBZ Year ago +1

      @Tha Trilla too much is bad but a small amount is good

    • Tha Trilla
      Tha Trilla Year ago

      Inflation is not something you want

  • Mojrim ibn Harb
    Mojrim ibn Harb 11 months ago +1

    I love your work but you kinda missed the elephant in the room: all the hyperinflation cases you reference were (a) under economic attack by powerful states, (b) required to pay external creditors under duress, or (c) both. Zimbabwe, for example, would have done just fine had it ever been permitted to develop a domestic fertilizer and auto parts industry.

  • J Dingle
    J Dingle Month ago +2

    About every 50 years, they like to change the definition of what money is.
    Bretton Woods 3 is here. It's happening underneath you as we speak. Commodity based currency, not debt based currency is emerging. It's going to be interesting.

  • Will Jack
    Will Jack Year ago

    One of your best and scariest videos yet. Loved it thank you.

  • Charles L Cary
    Charles L Cary 9 months ago +1

    Hyper inflation IS when you realize it. Then you spend your wages as fast as you can before the money buys less and less.

  • Rodrigo Silveira
    Rodrigo Silveira Year ago +106

    Brazil recovered from hyper inflation with a mix of 3 measures:
    -Fiscal responsability
    -New currency anchored in the dollar
    -Market opening

    • Blues Clues
      Blues Clues Year ago

      @Fredinno You guys are using capitalist economic paradigms- the strength of a nation is tied to how advanced it's property social relations are and it's productive capacity, china is a workers (albeit deformed) state that has the largest productive capacity in the world. The reason why brazil f*Cked up so hard was because it was not an industrial nation and relied on foreign exports, it also had to desperately keep it's backward neo-feudal capitalist social property relations in tact at the expense of proper economic planning. Also western fertility rates when you don't count
      immigrants are even lower than far-eastern ones and they have no political will to deal with the looming demographic crisis other than inflating asset prices (houses) and yields (rent) that belong to baby boomers at the expense of their own children.
      What you have to realize beyon the propaganda-and there is propaganda on both sides- is that China is leading the way in all economic spheres of human life when it comes to r and d- whereas most western projects are mired in corporate corruption, for instance the james webb space telescope is pretty much a cash cow for northrop grumann and it will probably never be completed. In contrast only last year china were boycotted by tsmc and they've pretty much already caught up in chip engineering. They're pretty much the leader in quantum computing, catching up in ai, catching up in metallurgy (still not able to produce a relaible military grade jet engine -but they will soon), catching up in robotics, leading in automation, drawing in drone technology.

    • Rodrigo Silveira
      Rodrigo Silveira Year ago

      @MrKeyframes As long as I know the dollar was once anchored to gold and once to oil. But I don't think is going to be necessary. All this money printing and borrowing was made to avoid the big shock of the covid crisis. Everyone will pay that price, the world just delayed and distributed it over time so we could avoid bigger problems during the crisis and the market doesn't collapse at once. The ones who will face a problem are the countries that refuse to pay and start printing money and borrowing in the hopes to never have to face the consequences.

    • Rodrigo Silveira
      Rodrigo Silveira Year ago

      @Leonardo Franzin Ribeiro Openning the market was necessary especially due to the residual inflation. People trusted so little the goverment after so many of it's plans failing and they interveening in prices and peoples savings that they would just raise the prices nevertheless. I understand that openning the market that fast again would cause even more companys to bankrupt this time, but I still think we should open it with or without inflation, in a slow and constant pace.

    • Rodrigo Silveira
      Rodrigo Silveira Year ago

      @unholyrevenger72 It would happen relative with the product prices. But hyper inflation, as the video stated, demands to continually print money and be fiscally irresponsable. I think america shall have a significant devaluation of the dollar and then come back to normal unless they can't accept this and keep printing and borrowing to avoid seeing the effects.

    • Fredinno
      Fredinno Year ago

      @SVTDI Yes, in the sense you also can never really become a global currency. Nobody wants to put a bet on currency they can’t even take out of the country. It shows even the *country* doesn’t have faith in its own currency, which is a massive red flag.
      It also limits foreign investment and financial services, basically isolating your economy from everyone else. Great if you want to go to war, bad if you care about long-term economic growth.
      Hence, nobody does. The currency reserve holdings for the Yuan are in the single digits. They’re not the US post WW2. Their economy is a balloon that will deflate the moment the CCP opens up the currency value or all their boomers retire and stop saving (their fertility rate is likely around 1).
      The US Dollar actually has increased its % of global currency reserve holdings since ‘08.
      And it has survived the 70s-80s stagflation before. Which seems a likely comparison- there is a middle ground between hyperinflation and no inflation, you know.

  • Rolf Dahlström
    Rolf Dahlström 6 months ago +1

    Hello in the big world. Thank you so much for the really cool program. I had a funny thought the other day. The United States owes a lot of money. If they decide to "create inflation" If the dollar becomes useless, all debts are gone with the wind. Then it is said: we must start again with a new currency. Or is it just one of those crazy things you can do every now and then? Anyway. thanks for interesting viewing. soft as well. I like.

  • Zentosi
    Zentosi 11 months ago +2

    the only hyper inflation i see in the U.S is the the over valued stock prices that corporations keep buying to over value their price,hyper inflation is most seen in the stock market and that's when it spills into the actual economy

    • Mike KoolDude
      Mike KoolDude 10 months ago +1

      Food is already more expensive.
      As is lumber and building materials.
      Inflation is already here.

  • John Hunt
    John Hunt 6 months ago

    Seems like FUD to me. Last time the US had a high inflation rate was 1980s, and that was about 3 times as bad as it is now. Our economy was a boom.

  • Count Smarald
    Count Smarald 10 months ago

    I would love to see a video on the possibility of a deflation tax to combat inflation where a government makes a tax that money is collected is destroyed to create deflation.

    • TheBandFiles
      TheBandFiles 5 months ago

      That's how most American Colonies dealt with inflation: the notes collected in taxes were *burned.*

    • wigglebot23
      wigglebot23 10 months ago

      That's called a budget surplus

  • Alex1456788 apalm54
    Alex1456788 apalm54 Year ago +2280

    Economics Explained: “weird maple money”
    Me a Canadian: *angry beaver noises*

    • Rick Cutshall
      Rick Cutshall 8 months ago

      I just want to tell everyone in this thread how much I appreciate the tongue in cheek friendly banter going on.
      I stumbled in to the wholesome side of youtube and I kinda like it.
      Also, I've learned many new terms for Canadians.

    • As a _______ commenter
      As a _______ commenter Year ago

      How many Alanis Morristette CD’s and beaver pelts is weird maple money worth?

    • Ecard Ecardian
      Ecard Ecardian Year ago

      @Martin Hold on a sek, what are you on about?

    • ribbonsofnight
      ribbonsofnight Year ago

      It's funny because clearly, as an Australian, he believes that US dollars are the weird physical currency.

    • Ryan98063
      Ryan98063 Year ago +1

      Angry Drunken Newfoundlander cacophony

  • guamae
    guamae 11 months ago

    The last bit is even more troubling in light of the fact that Permeant Capital is buying up all the real estate, so it's impossible for normal people to buy homes...
    Another big difference between the scenarios at the start of the video, and the current situation, is that all the 'system shocks' at the beginning were just to that one country. The Pandemic wrecked the economies of the entire world, and if all currencies are inflating by the same amount, are any inflating?
    Except for rich investors buying up all the property, at least....

  • VariableVision
    VariableVision 7 months ago

    Well, the penny just dropped (pun intended). Big increases in energy prices and Jack Dorsey just tweeted that the USA (and soon the rest of the world) is experiencing hyperinflation.
    Thanks statists!

  • xox1592009
    xox1592009 6 months ago

    “Hyperinflation occurs when prices have risen by more than 50% per month over a period of time. “
    It’s been 7 months, why am I not a trillionare yet?

  • G2 Precision
    G2 Precision 9 months ago +9

    When discussing fiat currency, it's important to understand that it's value is measured against other currencies. If all of the other countries and unions that issue fiat currency are also printing and distributing at a similar pace, then their values will remain on par with each other.
    It's interesting to see China make trinkets, sell them to the US, then turn around and use their budget surplus of US currency to purchase our government and corporate debt, along with stocks and real estate assets. I don't see how this ends well...

  • CJ Tymczak
    CJ Tymczak 5 months ago

    One thing to also consider is that a lot of products have a lot of fluff in there prices, but yet, it’s starting to happen. Good thing is they stopped printing money like no tomorrow. Hopefully it will all stabilize.

  • Jan Knoblich
    Jan Knoblich 10 months ago +5

    I would love to have your sources on this one