Inflation is a government scam | Saifedean Ammous and Lex Fridman
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- čas přidán 12. 05. 2022
- Lex Fridman Podcast full episode: • Saifedean Ammous: Bitc...
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Saifedean Ammous is an Austrian economist and author of The Bitcoin Standard and The Fiat Standard.
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Inflation is just another tax. And like all taxes it disproportionately hurts the poor and working classes.
It is designed to keep us enslaved: czcams.com/video/H7kW2JP9WwU/video.htmlsi=qM6niRORnKqdz49N
Inflation is the oldest scheme in the book, it's hard to believe people accept it in this day and age. The Founding Fathers understood the importance of sound money, why don't we?
Yeah I don't accept any facts
I just buy what rich politicians buy and sell what they sell. Works out great!
We do. The criminals pushing for the great reset are working against us.
Because people don't actually learn the things they need to be taught.
@@trippsmclovin It's like we're all riding a wave and you just hope that when you bail it's not because it's crashing into the reefs.
Technology and improvement should cause deflation but centralized banking steals it and gives the fruit of the labor to the upper class.
Cantillionaires be up!
True
Keynesian economics is attractive to economists because it elevates their importance and status in society.
“Government bad” is always a good place to start
@@jimmytimmy3680 TIMMY!
@JAB Initials You presume much, including about me. Seems you’re the one who may be slave to your prejudices. I’m sad for you if the government today is what you want it to be.
@@indoor_gangster TIMMEHHH
Laziness and ignorance manages to recite an adage. 🤣
Eff the government
Hayek, a friend of Keynes, said that Keynes doesn’t knew economy at all, even when all the important economy texts were in German Keynes didn’t know how to read German.
Hayek? The libertarian super star economist? Shocking that he was critical of his peer who has seen much more success than him both in their lifetime and over the years.
@@kodykendall you can be friend of a person and don’t be a clone of his or her ideology, it’s healthy, now we can ask ourselves, why Keynes, with his bad economics is more known than Hayek? Is because make the politician like a hero? Who will profit with that idea?
The hilarious thing is that Keynes was extremely succesful as an investor throughout his lifetime but he is seen as the ivory tower scholar.
I always thought printing money causes inflation because there is more money in circulation so the value reduces over time
More monetary units chasing the same amount of goods / services. Denominator of fiat is infinity. Numerator of goods / services is not.
“They’d have to work too hard to get it” that’s my mantra right there. I ain’t wasting my life chasing after stuff that isn’t ever going to make me happy. I work 3 hours a day, I eat well, spend my days outside and I’m about to head to the greatest nation on earth for 3 weeks. I think I’ll be good without earning above the average wage in exchange for 60% of my waking hours.
That's good, but personal happiness isn't the best ultimate goal. We need to advance human race. No one should work too hard, in a job that they don't like. But people should strive to do job, that they enjoy.
@@ConnoisseurOfExistence amen on that
@@ConnoisseurOfExistence Correct, we are drowning in the vastness of the cosmos, even the earth itself could destroy us, we must work to keep each other alive, but many people are becoming malicious and cancerous, selfish and evil. Many dangers are present, we must also work hard to fight evil.
Can’t think of any situation where if someone just worked a little bit harder they would be able to afford a Ferrari.
@@ConnoisseurOfExistence that statement sounds self contradicting
Absolutely agree with him, inflation is objectively bad. But what is way worse, is planned obsolescence.
I had never heard the expression "planned obsolescence" in this context, and it´s a perfect way to phrase it. And a direct consequence of the short term mentality of politicians and advisors, whose interest in a country´s economy ends up right at their mandate ending date.
@@purpleman1974 Which context you mean? I meant the actual planned obsolescence of stocks, purposely made to expire in suboptimal time.
@@ConnoisseurOfExistence Oh, OK. I thought you gave that expression a meaning of economic/political policies that aim and get short-termed "good results", as short as their mandates, at the expense of sowing the seeds of future economic breakdown.
Seems to work both ways guys.
@@SPARKYTX I think so:)
Isn’t government just a pool of influence? Of which corporations hold the lions share? Corporate influence in government is the problem. How does that sound to the sponsors?
How can you not like Saifedean!
Companies literally declared their biggest profit margins in their history, and at the same time raised the price of almost every product sold because of "inflation". This is what happens when you celebrate billionaires and glamourize greed.
“Inflation is good because it encourages spending.” What?!
Who’s doing the talking here, businesses, consumers, or government?”
@@CptVein inflation = good is a myth sold by those who cause inflation. Central banks have replaced the role of the treasury, and, given that they are private financial institutions, they have a desire to make money, hence rising interest rates. That interest rate creates a scenario whereby each dollar created has a hidden fee. If you tack that fee on each transaction, then it is compounded over decades. That compound interest creates the inflation, hence why money loses value. Government borrowing money is part of the problem as well. But don’t sleep on central banks controlling the money supply, etc. inflation is not good. Spending doesn’t need to be incentivized, since it wasn’t incentivized for thousands of years.
I’ve never heard anyone actually say that other than these two clowns. It’s the other way around - a small amount of inflation is a natural byproduct of a healthy and vibrant economy where people are spending. It’s not that it actually helps spending itself.
@@CG-rb4xo the central bank isn’t private, it’s a government body that is institutionally independent from the government but it is by no means a private business at all. They don’t “make money”…
@@christophersurnname9967 our central bank, “the federal reserve” is a central bank, and it is federal in name only. Please Do some research and get back to me, if you can.
It is private because of the institutions and families that actually own it.
@@christophersurnname9967 also, pre-central banks, there was no inflation at all. The value of money remained constant for literally hundreds, if not thousands, of years. Those economies were stable. Inflation only became a thing when we allowed central banks to lend money to the government and people at interest. Again, interest is why the money loses value over time. If there were no interest, there would be no inflation of money. That is why governments and central banks, such as the federal reserve and Bank of England, etc. shift the interest rate around. They are trying to control inflation. Economies need constant growth because of our debt based system of money. Because our money is fiat, it is only ever created when people borrow. Obviously, in such a System spending and debts, and borrowing will need to be encouraged. Inflation helps to accomplish this. But these tools only treat symptoms of a disease created by our own money system-a system created by central banks.
Good explanation of the silliness of Keynesian economics
Keynesian economics is an oxymoron.
The value of anything is what people are willing to pay for it.
"We need a lot of centralized management for resource allocation." ROFL, that was hilarious.
Wait... there are people who don't think it is a completely arbitrary number, to assure the ultrawealthy and multinational corporations keep making gains..?
He's right. I've never bought anything out of fear of my money being worth less. Now if you had massive inflation where people actually cared, that would happen, and the others are right on that. But small amounts of inflation has not motivated anyone.
Along with money.
2022 Inflation= Decade of Quantitative Easing, Supply Chain disruptions, decoupling from China, Boomer retirements, Ukraine war, & Monopolies with greater control of prices gouging. COVID spending made a nuanced impact. It’s complicated yet still can be figured out.
Wow thanks for the indepth breakdown.
How does quantitative easing cause inflation on balance?
MMT (+negative interest rates) is the biggest economical cancer.
Mr. Smarty Pants in the hoooouse!!
According to mason, maybe no smarty pants… lol
in Belgium benefits, salaries & pensions are by law tied to a "health index" (= consumer price index minus cigarettes & petrol) and increase when the index rises above a certain treshold. it will sometimes makes us less competitve in wage levels than neighboring country but as a citizen i'm happy it exists.
I would like to hear his take on the Free Silver movement. Much suffering from too hard money?
Corporations claim prices need to go up because of costs. Strangely they keep reporting record profits
If you watched Milton Friedman, you would have learned this decades ago.
Riiight? His lectures should be mandatory for every school lol
that's was one of the original ABBA members, right?
If you knew, you wouldn't need to know.
This is true.
@@indoor_gangster Yeah. The blonde one.
Lex have some austrian school economic professors on.. Walter Block, Hans Hermann Hoppe, guido Hullsman, Joe Salerno, Bob Murphy
Yes! I've had to watch time again his unenlightened interviewees bitch about economics. Joe Rogan needs to get one of those Austrians on as well. The time is ripe for the Austrian revolution
Well, yeah, it makes government debt worth less. Part of the reason I believe in owning property, and "essential goods" in this system.
And value adding capital
What are essential goods?
@@sethjohnson1733 twinkies and spirits... 🤣 everything else was lost in a boating accident.
Inflation is just the word they use when they are hoarding enmass. "They treat everything like it's cocaine and they want it all for themselves. So they cut what they sell, keeping the bits that they pinch on their highest shelf." Cheers.
As a former cokehead. I agree 100%
The problem with “natural” inflation, as opposed to Keynesian inflation, is its chaotic factor. Both induce chaos into the economic system, but whereas the latter creates safeguards and preparations to the effect of minimising injuries and redirecting the economic flow towards an approximate objective, the natural inflation behave similarly to a Black Swan event. And while such an event has it merits, from the standpoint of an economic professional, it would absolutely destabilise a nation in many ways. Ammous’ notion of homo economicus only ever focuses on an extremely narrow sliver of socioeconomic reality. In the event of a natural, uninhibited inflation, the working class suffers the most. After losing their jobs, they wouldn’t just be able to resort to less spending; basic livelihood will be affected. Major displacements and immense material hardships will follow as a result of not having any means of resource accumulation. In the big picture, this can be argued to be a hiccup in the larger scheme of economic development, progress and sustainability, but once the turmoil permeating the innumerable microcosms incubate into a powerful force, it will sufficiently topple the contemporary order that no economist can account for.
Crypto is the answer
Some prices going up due to supply/demand shocks isn't inflation. Price inflation is all the prices going up, the price level. And that is neccesarily because of money supply inflation, growing money bidding up somewhat sticky supply of goods. Price inflation is demand outsripping supply.
Kenysian ideas/ideals work, when you have a superirorly weaponized army :)
Finally, word is getting out
The government determines the price level when it spends because value of the dollar is what you have to do to get it from the issuer (the government), and it’s the only currency you can use to pay US taxes-which forces some % of the population to work for it.
If the government gives the dollar away for free, then the value goes to zero. If the government says you can earn $10/hr for being a firefighter, then $10 is worth 1 hours work as a firefighter. The invisible hand determines how this exchanges to other types of work.
The government is so stupid that it builds in “inflation increases” into its budget because they think inflation isn’t within fiscal control. When in fact this practice drives inflation.
It’s not stupid. Over time inflation creates economic instability for regular people, who decide to hand over their rights to the government in exchange for “financial security”
@@thejfactor1 it’s stupid that the government causes inflation by constantly defining its currency downward by promising to always pay more next year for the same stuff
@@007SuperSoldier well yeah it’s a stupid concept in the lens of advancing humanity. It’s genius for government officials who profit from it.
Why are we tolerating a force in the market that ruthlessly ups the price of goods? Corporations and the corporate takeover of OUR government are the problem.
Corporations are incentivized to takeover the government because the government is the ultimate monopoly (see: the monopoly on the use of force). So, in order to protect their corporate power, companies want to lobby the government so that the use of force is swayed in their favor. Just look at how many corporations have offices in Washington DC. Microsoft got hit with anti-trust lawsuits from the government in the 90s and quickly learned that it is easier to play ball with the regulators, than to try and run a free-enterprise based company. That way you can crush your competition with ruthless regulation that favors big business.
Government power/regulation is essentially a cheat code for corporate profit.
People are sheep nowadays and rely on big daddy government. Just look at the last 2 years of tyranny where not only did a big part of the population supported tyranny but they demanded it
I think they are slightly conflating spending and inflation with debt fueled spending. In fiat based monetary systems you can issue more debt than you can in a gold/commodity based system which allows the pulling forward of buying power which increases spending which lead can lead to inflation or deflation depending if the spending is frivolous, or on NPV positive projects that will provide value to others and provide cashflow back to the debt issuer to pay off the debt. when the debt issuer is a government and they monetize the debt this is when countries and fiat systems can get into inflationary troubles.
There is no "monetizing the debt". Money has always, always = debt. Money is a promise/IOU which always has 2 sides, a liability side and an asset side. US dollars are liabilities of the Fed reserve and an asset to those who hold those dollars. The Federal government can issue as many debt instruments/US dollars as it wants and does so through the use of a keyboard. When taxes are paid to the Federal government, you are redeeming yourself from the Government's tax liability which extinguishes that debt at which point US dollars are destroyed.
Anyone can create money, its a question of getting people to accept your money. Disneyworld can create Disney bucks, Chucky Cheese's can create tokens, and surrounding business's could use Chucky cheese tokens as payment as long as they trust Chucky Cheeses to honor those tokens. US dollars are transferrable debt instruments, they are the Nations highest form of money because of the tax liability which makes everyone need those dollars. Taxation creates networks of buyers and sellers of goods and services who will exchange for US dollars, price their goods in USD.
@@henrygustav7948 money is a claim on resources today T0. debt is a future claim on money @ T + N periods for the asset holder. debt for the issuer (liability holder) is the obligation to settle the debt via legal tender or providing money in the future. money in a fiat system is not an IOU like in a gold based or even in a Type II paper gold based system. it's really only a liability in a fiat money system in so far as it may not provide you the same purchasing power or be worth the same amount of resources when you go to exchange it. what does the US government OWE you for your dollars other than the authority/trust/military backing that the dollars can in fact be used as legal tender to settle debts both in the form of bonds but also in the instantaneous liability of services rendered i.e. commerce? the answer is nothing because its not really an IOU like in a gold based system where you can always redeem the same amount of gold for it. When the treasury issues Debt a future obligation to pay the bondholder dollars and the Federal Reserve prints dollars and buys them that is called debt monetization. But make no mistake about it those bonds the treasury issue and the federal reserve bought will still be settled at par on maturity. the question is how many goods/services will those dollars be worth on that date.
@@JohnSmith-je1dm "money in a fiat system is not an IOU like in a gold based or even in a Type II paper gold based system. it's really only a liability in a fiat money system in so far as it may not provide you the same purchasing power or be worth the same amount of resources when you go to exchange it."
Money has always been representative of debt whether its gold coins, tally sticks made of hazelwood or any other token.
"what does the US government OWE you for your dollars other than the authority/trust/military backing that the dollars can in fact be used as legal tender to settle debts"
The US Government extinguishes your tax liability when you pay your taxes and US dollars are destroyed. US dollars are transferrable debts/tax credits. When you pay your taxes you are redeeming yourself from the Governments tax liability. Look at any dollar bill, they are debt instruments which are legal tender for debts public and private. Public debt = Taxes.
"When the treasury issues Debt a future obligation to pay the bondholder dollars and the Federal Reserve prints dollars and buys them that is called debt monetization. But make no mistake about it those bonds the treasury issue and the federal reserve bought will still be settled at par on maturity. the question is how many goods/services will those dollars be worth on that date."
The Treasury can only issue Treasury bonds to those who already have dollars. You can not buy a treasury bond with anything else other than dollars. The Goods and services have already been paid for. The act of buying and selling bonds is not necessary and does not fund the Government. Does not provide the Federal government with US dollars to spend. Yes Treasuries are a future obligation to pay bondholders dollars. What did the bond holders exchange and give up to buy those bonds? They used USD. Does the Federal government have an inability to ever repay treasury bonds? of course not. To pay back a treasury, a savings account is debited with a keyboard and a checking account is credited. This is how Chinas US treasury holdings get paid off, how all treasuries get paid off when matured.
@@JohnSmith-je1dm Order of operations is Spend tax issue treasury bonds. It is not tax, issue treasury bonds, raise funds and then spend. The Federal government never has or doesn't have money, rather it creates US dollars at will for all its spending, by using a keyboard and crediting bank accounts. It always creates new US dollars for spending ALWAYS. There is no alternative option, no plethora of funding options. The Federal government spends one way and one way only and that's crediting a commercial bank account and then the commercial bank credits a recipients account. Bond sales are done after the fact in order to drain the banking system of reserves which are put there with previous Government spending. This is done in order to drive up interest rates, so sale of bonds is a monetary policy operation, not a Fiscal operation.
Funny how Lex really defends federal reserve.
I will say that most consumers consume depreciating assets and if anything inflation exacerbates this. If anything, less inflation should make it more likely someone buys electronics or a car.
Technological progress will devalue all these items but inflation further devalues them so the spending argument is garbage.
Maybe to fund innovation. Knowing your money pile will shrink so keep reinvesting, but not spending.
Anybody read Gottfried Feder? Silvio Gesell?
Just look at the world now. Government overspending is obviously bad.
How is this news?
Who is Ron Paul?
Almost everyone treats money wrong and cant handle it. The single dumbest thing you can do is to spend money on things you dont need, like most people do. People have been fooled into bying crap. Keep things simple, spend on what you need only. Save the money that is left.
If money and state were separated then government would be fiscally responsible. Central banking allows a government to do whatever it wants, including funding wars.
Been trying this experiment for over 100 years. It hasn’t worked
That is why saving is a poor choice
In the early 2010s, you were able to get a very nice house for about $100,000.
The Great Recession or what I call.....what it use to be.
It was a correction from the madness, stretching costs beyond what people could actually afford.
We needed another correction last year, it will come and the longer it takes, the more it will hurt.
But those with means will be able to buy their first house, something that can't be done in today's climate.
“The people” are not the only players. You have companies who need to spend to supply goods. Also there are investors. It’s not just consumers.
Is anyone else unable to stop seeing Chris Cornell
Fractional reserve banking is an even bigger scam.
Corruption is the egg and inflation is the chicken. Eggs came eons before chickens.
Eggs came from debasement. Remove debasement ability, and funding corruption becomes much much much harder. Because corruption isn't profitable for the customers that fund your corruption. Guy can pay his idiot nephew wages for doing nothing. That would be an example of corruption. But that corp would be using money badly and it's merchandise would be more expensive than the corp without that corruption. Wouldn't you agree?
I would spend without inflation, in fact i probably go into saving mode with inflation, only spending on necessities
Nothing is free in life, someone is going to pay for it
Corporations bro. Gov allows.
Who is benefitting from these high prices?
No government has ever produced anything of value but takes large amounts from the people they allegedly serve in the form of labor (actual intrinsic value if products or services are performed by labor). The fact is the USA was formed on real money (gold and silver and not bills of credit (notes). The purpose of any Banker is lend and no lender has a monopoly like the Federal Reserve, whose sole purpose is loan the biggest borrower in the world (the federal government). Why did they pass an income tax law 3 years after passing the Federal Reserve act? You cannot base financial reality on fiat (no intrinsic value) currency. Gold and silver have intrinsic value because you can make more of it without mining it and smelting and coining it and that has a cost, whereas printing paper has almost no intrinsic value and most of the "money" today is not even in Fed notes but on a computer. Inflation is directly related to increasing the supply of fiat currency.
Its easy to understand, picture your family and see if you can borrow your way out of debt, EVER by having to pay interest and principal back you will find out your F***ed if you do.
The fiat money supply has to constantly increase because you have x fiat currency you loan fiat currency and where is the interest going to come from? It has to be created or it can never be paid. Its no coincidence that the Vaticans church banned interest for centuries as charging interest is evil.
This guy is like an exotic Michael Knowles. Iykyk
Inflation is bad on goods price but good on liberties and abilities to use resources. A trade market will survive on its own without power and control overlords. Everyone in the market regulates it.
These sound money people are the hucksters smh.
Money is just a way to control people and you know it better, Lex!
Without money, how do you think the phone your using would come about?
@@chrisboshers the phone i am using is under 24h surveillance, so it is all about control !
@@SMT_2024 my point is that the corruption of money is not the purpose of money. Without money, you would have nothing and still be control
@@chrisboshers the corruption of money was not my point, in any circumstances money is just a mean of control, control thru ego and the size of it, of course anyone has a different level of ego and a different reason for witch they found themselfs in some situation related to money... we are different, the major porpouse of money is to gain power and control over others
@@SMT_2024 that isnt the major purpose of money though. People who dont know how to manage money just say that to make themselves feel better. Either you can manage it, or you can't. Money is freedom! Not tyranny,Not a way to control people. People without money say people with money "control" them, when in reality they cant control themselves.
Whoa there. The question was about the value of low levels of inflation and Mr. Ammous jumps to runaway inflation. The theory of inflation encouraging spending is not at the consumer level - it's at the corporate level. And it's not about spending on Ferraris, it's about capital investment and economic growth. If a corporation makes profit then what should it do with that profit? Pay all to shareholders? Keep all in retained earnings and sit on it for 25 years? Pay all as bonuses to upper management? Reinvest in capital projects to expand or diversify? Small levels of inflation encourage investment in capital projects and also fuels some risk taking with currency that can lose value.
What would Mr. Ammous suggest as an alternative? Never increase the money supply? Also what would be his take on money lending and the interest on that lending? No borrowing? When you have a fixed money supply you create poverty and interest rates on borrowing will go sky high. So it is a balance, always.
Definitely should stop money lending and any type of usry. Only way is through our lord and savior Jesus Christ.
Hucksters
This dude's like a sexy michael knowles. We need the two in the same room like steve uriel and stefan.
Our current inflation has more to do with corporate monopolies and our government’s inability to regulate Wall Street speculation (ie, Goldman Sachs and others buying single family neighborhoods) than anything.
You get it. Most don't. Our political economy is hopelessly rigged against working Americans and that is almost entirely the GOP's doing.
Nope, current inflation has nothing to do with Wall Street speculation. It has everything to do with disrupted/broken supply chains, and the intense monetary stimulus enacted during covid (and also prior).
Said in the Talmud 1500 years ago ; The more materialism , the more worries .
Here’s my question, if the we all know the federal reserve is a private company and not a government organization, how can we hope to have anything better than a bad, decent, or good government? We can’t even have all good companies, how can we have a 100% good government?
Why should the system evolve? Why should people evolve? Can the system evolve if people are not evolving?
Let's go back on the gold standard
Lex desperately trying to retain the Democrat portion of his viewers.
Or just playing devil advocate
The monetary system is more collectively agreed upon than religion, and people can't identify a good, or a bad system.
“We don’t need to be motivated to consume” - Please see Edward Bernays; René Girard
Thank you for this conversation. It is why i like small governement…conservative. However people’s expectstion of medical access is huge and i would not know how to deal with that aspect without some outside governing body. Also it seems these days politicians like war another issue for a governing body
Giant corporations are the ones profiting from inflation. Pandemic disruptions to the supply chain combined with corporate greed are why we have rampant inflation, not government stimulus
exactly
It sure is a scam!
The "Gold" Standard leaves an economy to a net limit of gold. Greed needs away around this. Squeeze the turnip. No "print" the same turnip, endless more profit as long as we have ink. People dying that is real. Money is not. I love how "Until death do us part" is also about the consumers relationship to inflation. Great health to all.
Said this for years now how can this work when they print millions a day and I mean millions
People? Nothing these days they jus do wat the next person dose baffling really is
If there is so much oil in our grounds why don't they extract it? I am sure the oil extractors are still there in texas. Why doesn't Saudi Arabia release more oil since they are the largest source of oil? Is everyone scared to say that we can not keep up with the exponential oil demand, that oil is running dry? We better hurry and go nuclear power and roll out more electric 🚗. 😤
Lex would vote for Trickle Down economics and then argue that you're not considering it in good faith 🙄🙄🙄🙄🙄🙄
"Government bad"
Depends what government we have, what's the difference between no government and a government owned by corporations?
Why do corporations seek to own the government?
@@tanner9072 because if the government is left to represent the people it could oppose the power of corporations
@@lukasmolcic5143 what power do corporations have that doesn't stem from government regulation in the market?
@@tanner9072 You don't see why corporations would seek to own the people in charge of regulation?
@@Sofian375 I do see that. I'm asking the question to get others to rationalize that government is the source of corporate power. If there is no government to pervert, then corporations have to simply provide the best product or service and compete for benefit of the consumer in order to grow their profits. As opposed to competing for the benefit of politicians in order to grow their profits.
Inflation is the result of massive profit taking in the fourth quarter of 2021 by the major ore & concentrate suppliers. This filtered up the supply chain impacting engineered materials and finished components and sub-assemblies. The government is just another corporation with a ladle in the stream.
isn’t inflation caused by the dollar losing it’s value?!
There are many ways it can lose its value. One of the main ways is if you constantly print more of it.
Good Day Out there and to all of you viewers or listeners. If you were not subscribed, it'd be great if you would hit the subscribe button as this man is right around the corner from one million. And I'm quite sure there are a lot of you who enjoy his content but are not subscribed. It's free for you and helps this man out a lot. Everybody have a great day.
"Everybody"? no i think you are talking about people who are specifically focussed on bolstering their self esteem and sense of worth by money and posessions.. the point has to be made that .. that is indeed NOT "everybody" .. its a specific amount of people in society.. that continuously fall for narratives given to them by those who wish to exploit them the most .. ie, monopoly corporations and governments which allow them to function as such ..
Balance of centralization/decentralization in a system of gov would be optimal at the moment. The experts must be the policymakers, the monetary system must be on the blockchain, and less focus on protecting our country with more focus on assisting other countries. This is the way to free ourselves from a corrupt gov and get the money back in the hands of the people! ✊
Couldn't people live in economically self sustaining communities by now that don't have to be living as far in the past as the Amish?
Not "could" Lex, is. He's right. The whole fiat thing is a con.
Fiat currency is the reason why the technological age began. It's not a con
Correct me if I’m wrong but isn’t it pretty much accepted that having a currency tied to the production of gold is ridiculous.
You are 100% correct
tied to the production of gold, sure. The gold standard was the dollar being pegged to the amount gold we have. 1971 we completely and fully went off the gold standard so the dollar is pegged to absolutely nothing. When the govt has the printing machine and just keeps printing and printing, the value of the dollar continues decrease. There is no limited supply, just print more =inflation. The govt loves this because they want more money for this program or this govt agency they can print more. The saying goes, the dollar in your pocket is worth more than the dollar printed tomorrow.
Side note, the reason the dollar has held any ‘value’ for many decades is we said for example to Saudi Arabia - We will buy the majority or X (large amount) of oil from you; but in return we request that you sell your oil to other countries in only US dollars.
Yeah, having your currency tied to the production of paper and ink is a lot better.
The federal govt should be in control of the military and the infrastructure and law enforcement. That’s it. Govt spending should be about 20% of GDP max. Lower really but you get the point.
Lex, I’m not emotionally attached to Keynesian economics but this is a really poor representation of the theory and your guest’s knowledge on the topic of macro economics is reflected in the language used during his explanation. He never mentions the “velocity” of money, which is the key differentiator between the Monetarist and Keynesian theories and I believe the understanding of this would greatly impact his argument and answer a lot of what he called “idiotic” observations from the 1930s
libertarian crypto bro grifting his grift
If you don’t have some form of inflation, then you’ve failed to account for additional value created via technological advancements.
Exactly. It's the "capital" in capitalism
Not only that but money naturally gets accumulated at the top. Without inflation aka more money rolling into the system, the rich, given enough time, will end up with most of the money and the poor with ever smaller fractions of it.
@@AceDelta101 wrong, inflation hurts poor people the most, the rich and well connected know how to benefit from it
@@RIP-fiat Ah its wrong just because you say its wrong. Ok. Makes sense.
@@AceDelta101 if you actually believe that inflation helps the poor, you have way more explaining to do. Meanwhile, Cantillon has run circles around you. He's made you look like a total bozo, even though he's been in the grave for 300 years and does not have the same advantage of foresight that you do. Bozo economics needs you more than ever. You should explain yourself now so that we can be educated by your wisdom, bozo.
I eat ferraris every now and again.
Humans don't need money to know how to work together, in fact I think it has the opposite effect.
Government is not bad; its the system that is corrupt.
here come all the one book readers to tell us how inflation works and how we need it, lol
"Everybody wants a big screen" - Shawn Mullins / Light You Up Ukraine
yeah saifedain is definitely not the person to go to to understand the economy or concepts like these. he’s just the bitcoin guy. get a real austrian economist on your show like per bylund or jorg hulsmann
What are these twos macroeconomic systems qualifications again? Just because some are knowledgeable in one field doesn't mean they know jack about other fields...It actually usually means not just that they do not, but they are arrogant enough to believe they know more than they do.
poor people spend money rich people spend their interests
I love how Lex starts this clip, and few others his "counter-arguments". Mr. Saifedean had just gone over like 10 minutes of monologue of explaining the different reasons why Keynes is a ducking idiot and a scammer, Lex comes back with "just becase it's in the interest...". No you duck, there's dozens and dozens of reasons, and you were just told many of them.
Yeah lex came off especially dumb in the end but we don't have the full context.
@@Alfa4 Watched the entire interview. He repeats that intellectual laziness atleast a few time. More context don't help. "let's give Keynesians a chance, we don't know". F off. We have given them 100 years. We do know. The results are in. He keeps his mind so open that his brain falls out every other minute.
The idea about open mind is to look at the thing untill you can make an informed opinion. It's like he entirely misses that opinion and conclusion forming facilities.
He just looks at everything for ever and claims his mind is open because he never is able to form an opinion. Dumb.
lex is big time establishment, don't be fooled
Lex is obviously trying to play devils advocate here. He claims he is ignorant on the topic many times. He doesn't want you to take his advice.
@@GurbyTheGreatT To claim that's obvious, you'd have to have seen him integrating the opposite view even with few syllables. He has not. He's fucking clueless. His only opinion is that he's got none.
#pulsechain solve this
Planned obsolescence bad.
A government has yet to act in the interest of the people it governs. Ever. Why would anyone assume that’s suddenly changed?
Not sure about this one… There’s been studies done on smaller countries who had deflation and experienced very negative effects due to it. The standard is low and steady inflation and it does a great job of promoting growth throughout the economy.
Name them
japan
fluff