Thanks for watching! A quick reminder: all my videos have subtitles if you want to read along. If you enjoyed the video, please like, comment, and share with your friends so more people can learn. Don’t forget to subscribe for more content! I’d also love to hear your thoughts, ideas, and suggestions! Feel free to share them here! Thanks once more for your support!
Let me get this straight, fiat money was invented because when economic crisises ever happened, gold was hard to provide liquity in terms of emergency, which was apart of the negative effects of the great depression, also fiat money and its value is determined by the supply chain, inflation, and interest rates(through monetary policy)
Almost correct. Fiat money's value is reliant on the use of the money as a currency, particularly, when exchanging goods and services. The more money in circulation, the stronger the value of the money becomes. Let's throw an example out there. A Pepsi is $2.78 in the convenience store close to where I'm located at this present minute (I just purchased one). If the Pepsi was, instead, $1.00, then our currency would be "strong", or we would have more money in circulation, and less required to print due to moderate demand and high usage. If the Pepsi was $5.00, then our currency would be "weak", or we would have less money in circulation, and more required to print due to high demand, but low usage. In essence, a lot of "how to fix the economy" stems back to the whole "We should start taxing the wealthy". *The more money that stays stagnated, the more we're required to print to make up from the money that is no longer in circulation -- this money, that is then losing it's value to the Reserve, is also increasing it's value due to Interest.* Now let's talk quickly about how you can gain wealth from interest rates. It's actually simple: If you're the owner of capital (large quantities of wealth), you can earn money when you simply have purchased money, or valued item, for a cost equal to low -- and hold onto item (money or otherwise) for it to be hit with natural inflation (2%) and abnormal inflation (greater). If you're wealthy, you don't want "deflation", as it devalues your asset (money) and makes it worth less than you acquired for it. By the exact inverse -- deflation increases the value of the currency, and thus denotes the following: The Pepsi, above, went from $2.78 to $1. Allowing me to have $1.78 in my pocket. This allows me to obtain 2 Pepsi's, for the typical cost of one, and still have 78 cents left over. I want to end with the caste system. One part that people get wrong so, so many times is not realizing how much "money hoarding" harms them. The idea of "taxation on the wealthy" isn't to give some chick who never worked with 8 kids stamps. It's because the only reason she has 8 kids and requires stamps is due to the cost of various amenities in our society, including education, being exponential due to the past 50 years of neoliberalism that allowed "billionaires" to exist. Consider that the wealthiest person when we created the fiat currency, could have only accurately obtained 100 million USD. There was once a "limit" to wealth. That doesn't exist now. Neoliberalism, known as "conservative fiscal policies" today (hilariously), are why this exists. What did we learn here: - Inflation is good for the wealthy and increases the wealth, sometimes exponentially (due to lack of education within the US), but it's incredibly harmful for the poverty, low, middle, and upper working class. - Deflation is good for the poverty, low, middle and upper 'working' class; But it's bad for capital wealth owners with millions, to billions, of USD in assets. - Currency Stagnation, or "weakening of value", is due to large quantities of money in circulation, due to printing more than it's being traded for (internally and externally), primarily due to hoarding or holding wealth without use (ala wealth class, billionaires, multi-millionaires, etc). - A "stronger" currency makes it easier, and better, for everyone to live, including the wealthy. - A "weaker" currency only creates a pseudo caste system, one where the 'working' class (non wealth class) is the lesser class, and the wealthy have an easier, and better, method of living. (The rich get richer, the working class become poorer). - Neoliberalism is the reason why inflation in the US occurs at the rate it does, and at the extent it impacts you, but not someone actually wealthy. (The wealthy benefit, the working class get punished).
@@itsJoshW Are you saying that instead of relying on precious metals such as gold or silver, fiat money is based off of consumer confidence and the exchange of services and the production of goods. Also, having a strong currency can vary, exports become more expensive for different countries, unless if you are making a sale of a high valued asset, while a weaker currency makes transactions more favorable for foreign buyers. Fiat money was created because everyone knew that there would not be enough gold to back every dollar, and governments had big projects to fund.
Bro is teaching you about economy and history because your a damn dumb ahh that doesn't want to search up this kind of thing on your browser for whoever reads this. (Except for me because I alone, am the "Honored One")
I think this needs to be adjusted a bit to more properly address modern day. It's not monopolies that we have to care about, when it comes to like "microsoft" (which is what everyone hilariously focuses on). It's telecom monopolies. It's your utilities. It's the concept that no "public" option exists for legitimately important products or services that, ultimately, are due to privatizing originally public constructs. That being said, monopolies are bad. We need to focus the concept onto what type of monopolies...because we can all say "Microsoft is a monopoly", but so is Walmart or Save-A-Lot, if you realize that a monopoly can exist by simply removing competition in a certain area, rather than the idea of "company being big". Note: Using Microsoft as an example of 'bad faith arguments' regarding monopolies. Most focus on useless topics, and don't realize that they are forced into one ISP, one Electrical company, one Natural Gas company, they aren't capable of getting an EV due to lack of charging stations, they aren't able to find affordable (15% of your monthly income) housing, etc, etc.
Fiat Money → Digital Money Like UPI in India to avoid counterfeit money and money laundering etc Or Decentralised Money like Bitcoin will be the future money.
Bitcoin is useful for purchasing an otherwise worthless program (that use to be mined on something as easy as a quad GTX 980) and suckering idiots to purchase it, then resell it as the value is high (after lots of people purchase it, thus the demand increases) so you can obtain large quantities of money from the otherwise worthless product. It's sort of like if you were to take dirt, claim "It's actually the next big thing" to a group of idiots, and as people are trading it, you then sell your over-abundant of, once worthless, dirt as the value is high, making money on something that was otherwise valueless.
When inflation gets too high, the Central Bank increases the interest rate, so the ''fee'' you have to pay to lend money. Therefore less people will take on more debt, because new money is more expensive now, which decreases inflation. Though the prices will never be back to normal, because inflation will always be more than 0, because Central Banks aim for an inflation rate of about 2%, therefore prices will rise forever under our current fiat system.
ok, so a) there is no proof that barter was ever a thing in society but perhaps during communal stage, money as a concept is far older than you think b) money does not have to be valuable as actually you said. c) the value of gold also came from trust, not the ore. The reason to use it was for authentication. d) gold does NOT help against inflation. In summary, money needs to be trusted by all, available to all, flexible to be used by the government, authentic, otherwise you have no money.
the value of gold came from trust, but they only trusted it because gold is scarce, fiat money is not scarce. And yes Gold DOES help against inflation, because the government cant just print more gold, but they can just print more fiat money. Gold isnt perfect tho, Bitcoin is the better alternative.
all currency is fiat money. and cypto will never become a currency for exchanging goods. it will just stay as some kind of Virtual Trading game that has money involve.
Gold, silver and whatever metals or commodities are also based on faith. People accept gold as money because they believe gold is valuable. Gold by itself does nothing and has no value.
@@ttschannel875 That's a problem in and of itself. A currency need to be able to be infinitely divisible as productivity increase and prices decrease. Gold can't do that. Imagine buying a loaf of bread with 0.1g of gold. That's like carrying a spec of gold dust in your wallet.
@@ttschannel875 its not about having more gold. You can't grow gold indefinitely so you need to divide but it gets to a point where its impractical to divide further. How do you pay with 0.01g of gold?
well then the video will be lower quality because there is no effort unlike real voice, which make the video high quality because there is an effort put in the video, just my opinion sorry for bad English
Appreciate the detailed breakdown! Just a quick off-topic question: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?
Thanks for watching!
A quick reminder: all my videos have subtitles if you want to read along. If you enjoyed the video, please like, comment, and share with your friends so more people can learn. Don’t forget to subscribe for more content!
I’d also love to hear your thoughts, ideas, and suggestions! Feel free to share them here!
Thanks once more for your support!
Bro hearted his own comment
Hey man, loved your content..more love from india❤❤🎉
i like how each slide and each character of the slide has there own unique dialog
Thank you, I'm glad you like it 😊
Let me get this straight, fiat money was invented because when economic crisises ever happened, gold was hard to provide liquity in terms of emergency, which was apart of the negative effects of the great depression, also fiat money and its value is determined by the supply chain, inflation, and interest rates(through monetary policy)
W ninja for telling me the opps secrets of money
Almost correct.
Fiat money's value is reliant on the use of the money as a currency, particularly, when exchanging goods and services. The more money in circulation, the stronger the value of the money becomes.
Let's throw an example out there.
A Pepsi is $2.78 in the convenience store close to where I'm located at this present minute (I just purchased one).
If the Pepsi was, instead, $1.00, then our currency would be "strong", or we would have more money in circulation, and less required to print due to moderate demand and high usage.
If the Pepsi was $5.00, then our currency would be "weak", or we would have less money in circulation, and more required to print due to high demand, but low usage.
In essence, a lot of "how to fix the economy" stems back to the whole "We should start taxing the wealthy". *The more money that stays stagnated, the more we're required to print to make up from the money that is no longer in circulation -- this money, that is then losing it's value to the Reserve, is also increasing it's value due to Interest.*
Now let's talk quickly about how you can gain wealth from interest rates. It's actually simple: If you're the owner of capital (large quantities of wealth), you can earn money when you simply have purchased money, or valued item, for a cost equal to low -- and hold onto item (money or otherwise) for it to be hit with natural inflation (2%) and abnormal inflation (greater). If you're wealthy, you don't want "deflation", as it devalues your asset (money) and makes it worth less than you acquired for it.
By the exact inverse -- deflation increases the value of the currency, and thus denotes the following:
The Pepsi, above, went from $2.78 to $1. Allowing me to have $1.78 in my pocket. This allows me to obtain 2 Pepsi's, for the typical cost of one, and still have 78 cents left over.
I want to end with the caste system. One part that people get wrong so, so many times is not realizing how much "money hoarding" harms them. The idea of "taxation on the wealthy" isn't to give some chick who never worked with 8 kids stamps. It's because the only reason she has 8 kids and requires stamps is due to the cost of various amenities in our society, including education, being exponential due to the past 50 years of neoliberalism that allowed "billionaires" to exist.
Consider that the wealthiest person when we created the fiat currency, could have only accurately obtained 100 million USD. There was once a "limit" to wealth. That doesn't exist now. Neoliberalism, known as "conservative fiscal policies" today (hilariously), are why this exists.
What did we learn here:
- Inflation is good for the wealthy and increases the wealth, sometimes exponentially (due to lack of education within the US), but it's incredibly harmful for the poverty, low, middle, and upper working class.
- Deflation is good for the poverty, low, middle and upper 'working' class; But it's bad for capital wealth owners with millions, to billions, of USD in assets.
- Currency Stagnation, or "weakening of value", is due to large quantities of money in circulation, due to printing more than it's being traded for (internally and externally), primarily due to hoarding or holding wealth without use (ala wealth class, billionaires, multi-millionaires, etc).
- A "stronger" currency makes it easier, and better, for everyone to live, including the wealthy.
- A "weaker" currency only creates a pseudo caste system, one where the 'working' class (non wealth class) is the lesser class, and the wealthy have an easier, and better, method of living. (The rich get richer, the working class become poorer).
- Neoliberalism is the reason why inflation in the US occurs at the rate it does, and at the extent it impacts you, but not someone actually wealthy. (The wealthy benefit, the working class get punished).
@@itsJoshW Are you saying that instead of relying on precious metals such as gold or silver, fiat money is based off of consumer confidence and the exchange of services and the production of goods. Also, having a strong currency can vary, exports become more expensive for different countries, unless if you are making a sale of a high valued asset, while a weaker currency makes transactions more favorable for foreign buyers. Fiat money was created because everyone knew that there would not be enough gold to back every dollar, and governments had big projects to fund.
Simple and straightforward, love this channel
Thank you! I'm glad that you understood it easily
This channel is a goldmine
Thank you, fellow gold miner 😆
Bro is teaching economies and history at the same time
Bro is ultimate teacher 😅
Bro is teaching you about economy and history because your a damn dumb ahh that doesn't want to search up this kind of thing on your browser for whoever reads this. (Except for me because I alone, am the "Honored One")
Thank you 😊
@Ja97 bro is teaching y'all dumb people about shit
Thanks bro, you deserved more subscribers.
Watched your other video on money yesterday and was wondering what is Fiat money and here you are .
Yep, 1 promise done, now 6 more to go 😅
Best teacher on internet
Thank you 😊
I understood everything in this video. And I wasn't even seeing the content but just hearing it like a podcast
I'm surprised that you could even understand it from hearing it only, well Explains 101 to Spotify? 😂
Your content and slides are amazing ❤❤
So simple to understand, amazing work!
Thank you 😊
Wow i now no need to call fiat money paper money
This guy is goooood
Hope u grow in subscribers and popularity
The uwu at the end😂😂😂
please do a video on purchasing power parity, your explanations are very simple to understand.
Do you want a specific PPP video or just include it in GDP video?
Plz make a video on "How do monopolies affect consumers and innovation?"
I think this needs to be adjusted a bit to more properly address modern day. It's not monopolies that we have to care about, when it comes to like "microsoft" (which is what everyone hilariously focuses on). It's telecom monopolies. It's your utilities. It's the concept that no "public" option exists for legitimately important products or services that, ultimately, are due to privatizing originally public constructs.
That being said, monopolies are bad. We need to focus the concept onto what type of monopolies...because we can all say "Microsoft is a monopoly", but so is Walmart or Save-A-Lot, if you realize that a monopoly can exist by simply removing competition in a certain area, rather than the idea of "company being big".
Note: Using Microsoft as an example of 'bad faith arguments' regarding monopolies. Most focus on useless topics, and don't realize that they are forced into one ISP, one Electrical company, one Natural Gas company, they aren't capable of getting an EV due to lack of charging stations, they aren't able to find affordable (15% of your monthly income) housing, etc, etc.
Amazing content as usual
One big fan from Ghana (Africa) .. amazing video 👍
Hello Brother
(from, you know THE country) A certain Giant 🌚
Hello, thanks for watching, warm regards to Ghanaian fans 🇬🇭
Your content is amazing!
Could you please do video about the 2008 Financial Crisis?
You really make a great videos I like them much.Keep it going.
Fiat Money → Digital Money
Like UPI in India to avoid counterfeit money and money laundering etc
Or Decentralised Money like Bitcoin will be the future money.
Bitcoin is useful for purchasing an otherwise worthless program (that use to be mined on something as easy as a quad GTX 980) and suckering idiots to purchase it, then resell it as the value is high (after lots of people purchase it, thus the demand increases) so you can obtain large quantities of money from the otherwise worthless product.
It's sort of like if you were to take dirt, claim "It's actually the next big thing" to a group of idiots, and as people are trading it, you then sell your over-abundant of, once worthless, dirt as the value is high, making money on something that was otherwise valueless.
I love this video
Amazing video as always! Please make a video on Natural, Neutral and Monetary Interest Rates 😊
Can u make videos about real estate or something about retirements?
Do you have any specific topics? Like FIRE movement or 1031 Exchange real estate?
@@Explains101just explain everything man
You should probably discuss how Social Security started, and why it is no longer "Social" Security.
Big fan I watch your all videos 😮
Great video
Imagine is people say “Sorry but bread is worth more than paper”
Going back to barter? 😅
"The Great Parasite" great book to read, reveling how the stat and super power work. :)
Money is pointless if you don't or can't use it
Like your videos 🎉
Great explanations as always but what happened to the audio quality? It sounds worse this time.
I have a question that I want you to make a video about
If printing money makes the currency worth less why not just burn the money? (Not all of it)
Well they sure ain't gonna burn MY money. Most is in my bank account anyways, plus I'm allergic to smoke...
Ask a question how to turn inflation or hyper inflation back to normal?
When inflation gets too high, the Central Bank increases the interest rate, so the ''fee'' you have to pay to lend money. Therefore less people will take on more debt, because new money is more expensive now, which decreases inflation. Though the prices will never be back to normal, because inflation will always be more than 0, because Central Banks aim for an inflation rate of about 2%, therefore prices will rise forever under our current fiat system.
Gona be a good day thank for this video
Thank you so much🤧🤧🤧
Hi big fan from india
what ai voice over are you using please?
I think thats his real voice but modified
Very good video you just take to long to post new videos
What would happen in the future when people will no longer have faith in the Ameican govt, and trade will be done using currencies other than usd?
That not in the future. That already happened. People already start abandoned American coupon
love to watch your videos, but I still like the old voice
ok, so a) there is no proof that barter was ever a thing in society but perhaps during communal stage, money as a concept is far older than you think b) money does not have to be valuable as actually you said. c) the value of gold also came from trust, not the ore. The reason to use it was for authentication. d) gold does NOT help against inflation. In summary, money needs to be trusted by all, available to all, flexible to be used by the government, authentic, otherwise you have no money.
the value of gold came from trust, but they only trusted it because gold is scarce, fiat money is not scarce. And yes Gold DOES help against inflation, because the government cant just print more gold, but they can just print more fiat money. Gold isnt perfect tho, Bitcoin is the better alternative.
W weeweeland gouvernement 😂
I wonder if we will use gold or silver for exchanges in the future
Edit : edit :]
Not gonna happen. Bitcoin has more chance.
All money is fiat money really
Bitcoin fix this 🧡
Love this video😊
Gold and silver are money. All else is credit.
love watching your videos, but i still like the old AI voice
ขอบคุณที่ทำวิดิโอดีๆออกมาครับ
My dumbest reading fiat money flat money because of how flat paper is
gold backed
Joma tech Collab please????
Love from bharat (india)🇮🇳🇮🇳🇮🇳❤❤❤
Bitcoin will fix that
i want the old ai voice back
all currency is fiat money. and cypto will never become a currency for exchanging goods. it will just stay as some kind of Virtual Trading game that has money involve.
The Future will be Bitcoin, not Crypto. Bitcoin is the only cryptocurrency thats truely decentralized.
Not first
Bro change the voice
bitcoin is the answer.
Bro can't you add some jokes in middle of class so that it doesn't look like a class lecture
Bring back the AI voice
And skibidi
Plz bring back the original voice i hate this audio
this is a real person voice, it's so much better
Was about to type this fr, the previous way better
Ai voice may seem better but it lack of expression or feeling in my opinion
Gold, silver and whatever metals or commodities are also based on faith. People accept gold as money because they believe gold is valuable. Gold by itself does nothing and has no value.
its hard to get smart that why its valuable
Gold volume cannot be control by America
But American coupon can be control.
@@ttschannel875 That's a problem in and of itself. A currency need to be able to be infinitely divisible as productivity increase and prices decrease. Gold can't do that. Imagine buying a loaf of bread with 0.1g of gold. That's like carrying a spec of gold dust in your wallet.
@@dusttoh8927 if America can't afford that many gold. Then America didn't fit to be global reserve.
@@ttschannel875 its not about having more gold. You can't grow gold indefinitely so you need to divide but it gets to a point where its impractical to divide further. How do you pay with 0.01g of gold?
First
Please use the AI voice again!!!!
well then the video will be lower quality because there is no effort unlike real voice, which make the video high quality because there is an effort put in the video, just my opinion
sorry for bad English
Appreciate the detailed breakdown! Just a quick off-topic question: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?