The people that benefit from a weaker dollar are investors. People that pay the price of inflation are middle class and poor people. Inflation is great for real estate investors because house prices get more expensive and the value of debt relative to the asset goes down.
In my masters level economics class one of the questions on a quiz was “who benefits from inflation” and the answer was “the borrowers as Inflation allows borrowers to pay lenders back with money worth less than when it was originally borrowed” this must be the logic our government is using 😅
@@jonrulz5771 it was just a module review of macro, kind of like a refresher as most graduate programs start with. a very small part of an entire class
@@myscreen2urs Dissipation isn't destruction. When energy dissipates via entropy, it's transformed into a different state. If I may borrow from another page: _"The law of conservation of energy states that the total energy of an isolated system remains constant; it is said to be conserved over time. In the case of a closed system the principle says that the total amount of energy within the system can only be changed through energy entering or leaving the system. Energy can neither be created nor destroyed; rather, it can only be transformed or transferred from one form to another."_
That’s because a strong dollar makes imports cheaper. A weak dollar makes exports cheaper and is good for domestic manufacturing (this is why China has been devaluing its currency for years). Reagan’s handlers were preparing the U.S. for offshoring of U.S. domestic manufacturing and becoming a nation of cheap imports
You can't have both a strong dollar or jobs coming back. A strong dollar has always been more favorable because the US leverages against the Countries they outsource jobs to and also cheaper imports.
beautiful video Andrei, have you considered expanding this one into a short documentary? Maybe combine a few of your videos into a feature length documentary. The production quality and content are up to documentary standards.
@@ShadyD365 Yeah, but it was only propped up partly from the carry trades, and the other part for high interest rates, anyways. If and when the interest rates go down, the dollar will depreciate against other currencies.
lol at the plebs who don’t see the data or what’s going on. Nations have been stacking gold at the highest rates in years. The US lost its petrodollar status. News just broke today that the Yuan does 2.5% more trades in oil than the dollar. BRICS is about to announce a gold backed currency in October.
That's a very good point. They aren't a cure all, but they work in hundreds of ways every day in the US. I live in an area with a lot of family owned dairy farms. If it wasn't for price controls I would imagine all of them would have been forced to sell off on any one of the dozens of times there has been a disruption in the market over my lifetime. I'd wager that hundreds of thousands if not millions of US citizens lives have been directly and positively impacted by price controls.
If you ever learned microeconomics, you know price ceiling is a bad idea for society as a whole. Unless you only want to "help" specific groups of people, you can prove your idea is good using "ceteris paribus"
Yes. But, for example, properties are less likely to depreciate as cash does, so if he would need cash and the dollar weakens, he would get a lot amount of cash with small property.
FYI, In addition to holding cash itself, the folowing are also considered a cash position. Highly liquid assets, such as certificates of deposit, short-term government debt, and other cash equivalents.
Always love your vids Andrei but price gouging prevention laws are already in place in same states in the event of a disaster. Look at Texas Business & Commerce Code Section 17.46(b)(27). I believe this prevents individuals from being exploited and afaik gas prices do not spike significantly in Texas during times like hurricane season.
Price controls on a free market work about as well as a laissez faire system does in a command economy. All it does is create a secondary speculator/scalper market that drives up prices for no good reason.
The price of oil went from $20/barrel in 2002 to $140 a barrel in mid-2008. Wow, that must mean that 16 years later in 2024 a barrel of oil is super expensive. Oh wait, it's under $80. Oh no, gold went up to $1,900/oz in 2011. And if you bought at $1,900/oz in 2011, you wouldn't have broken even on your purchase until mid-2020. Yes, if you just hold cash your purchasing power will erode over time, but if you buy stuff with that cash today it doesn't mean the price of that stuff will automatically go up in the future. The real theft is that I was fed this garbage video and didn't even get a magic trick out of it.
The point is to be on the train not be angry that you've been sidelined. nothings worse than holding depreciating assets watching everything else go up
To begin understanding the fall of the US dollar, one only needs to refer to the fall of the Roman Empire or the decimation of the Mongol Empire. They came and left, but the world goes on living as if these glorious empires never existed.
Andrew, Buffet said many times the asserts are 2x overvalued and he holds majority in cash now not in assets cause we are in recession and the markets need to pup!
Here goes an idea, "margin control". Price is allowed to go up and down with the COGS, but the company isn't allowed to increase their margin without prior authorization or else pay a penalty tax that is no less than the increase in margin.
@@SuperTruthful They do but they have reserve assets like gold, silver, oil etc etc. Merica had the unfair advantage of printing money out of nowhere for many years and now it's about to end. Forever
I’ve been preparing for about a year and a half. I’m jacked up to the tits in cash. Basically a war chest ready to buy up cheap assets cause this boat is about to smash into the wall HARD!!!
Isn't she saying price gouging, not price controls though? Why is everyone conflating those two concepts. We already have some price gouging laws on the books in some states like Texas and Florida. Why can't we do that on a national level?
Can you link current situation with future taxes , they are saying taxes will be raised and retirement age will also increase, how will people with credit card debt will survive ?
Great video. Also during The Great Depression in the 1930s, according to the book Bitcoin Standard by Saifedean Ammous, the US government have tried to control the price as well which led to disaster
You can't have both a strong dollar or jobs coming back. A strong dollar has always been more favorable because the US leverages against the Countries they outsource jobs to and also cheaper imports.
😂😂😂 you still believe in the propaganda hahahaha even when you are suspicious of it you still revert back to it. The usa is master of propaganda of its own citizens.
Since 2021 it's 30% or more. 30% loss of the value of currency. That's in Canada anyway. It doesn't account for there being a carbon tax added to our burden. It doesn't consider how goods and services have to be ordered from the USA directly which costs a lot more. Canada is really in a bad state.
In a nutshell, diversification is the way forward. That shouldn't be misinterpreted as "China-Russia led BRICS is the way forward". I spent a decade doing business in Asia, dropping China in 2021 as a market because they are not a viable alternative.
Who benefits from a weaker dollar, theoretically it’s the borrowers who borrowed prior to the weakening. If I borrowed when the dollar was strong but then it weakened, I repay that original loan with my higher income now. However this is a fallacy, wages barely go up over time. The real winners are owners of assets, like real estate. If you buy a house at 250K with a loan, then the dollar gets weaker and home values double, now your house is worth 500k, and magically have 250k worth of equity.
😂 CNBC changed the title now it’s “how a stronger dollar could backfire on the U.S economy “ … I guess they chose to use fear instead of hope
Either way you are being manipulated!
Andrei talks a little bit more like a bitcoiner each day
Good... he owns some and Bitcoiners have been proven right over and over.
“Not a crypto channel btw”
A Bitcoiner = someone who converts depreciating assets into appreciating ones.
@@HomeandYachtuseless ones.
I mean, he only quoted Saylor like three times in this one. 🪙
As a physics dude, that intro about money being energy in another form is pretty dope.
He stole that idea from michael Saylor who said this about bitcoin like 15 years ago.
You may want to read , Softwar: A Novel Theory on Power Projection and the National Strategic Significance of Bitcoin
Then you’ll love Bitcoin… that uses energy to secure the network
Everything is nothing more than energy/vibration.
Everybody knows that a physics dude have narrow mind...
The people that benefit from a weaker dollar are investors. People that pay the price of inflation are middle class and poor people. Inflation is great for real estate investors because house prices get more expensive and the value of debt relative to the asset goes down.
Home owners might have to pay more taxes...
In my masters level economics class one of the questions on a quiz was “who benefits from inflation” and the answer was “the borrowers as Inflation allows borrowers to pay lenders back with money worth less than when it was originally borrowed” this must be the logic our government is using 😅
The problem is the economy is so bad the wages aren't keeping up to make it a benefit
@@ayliniemi you’d need a 5% yearly salary increase to keep up with inflation since 2020
Funny how such a simple concept is in a masters economics class
@@jonrulz5771 yea, learnt that in high school lol
@@jonrulz5771 it was just a module review of macro, kind of like a refresher as most graduate programs start with. a very small part of an entire class
Energy can neither be created nor destroyed, but only transformed from one form to another
Tell that to entropy🙄
@@myscreen2urs Dissipation isn't destruction. When energy dissipates via entropy, it's transformed into a different state. If I may borrow from another page:
_"The law of conservation of energy states that the total energy of an isolated system remains constant; it is said to be conserved over time. In the case of a closed system the principle says that the total amount of energy within the system can only be changed through energy entering or leaving the system. Energy can neither be created nor destroyed; rather, it can only be transformed or transferred from one form to another."_
Cannot be created by you….
It came from somewhere to begin with
On the next episode of dragon ball z: why freezing the price of the dollar will stop the weakening of the dollar.
And another Episode with the same content
It's not very effective🙃
Every time I open youtube, I see Andrei video on dollar collapsing, bitcoin collapsing, economic collapsing🤣🤣🤣. Fear monger
that's because he must have a boatload of crypto or gold
No in his previous video he emphasized that the USD will decline, but at a very slow rate.
@@Dragon_Rider777so why make another video don’t be gullible lol
Gets clicks
Not really, vote for Kamala and all of this will happen
Reagan always reminded us of the IMPORTANCE of a strong Dollar.
That’s because a strong dollar makes imports cheaper. A weak dollar makes exports cheaper and is good for domestic manufacturing (this is why China has been devaluing its currency for years). Reagan’s handlers were preparing the U.S. for offshoring of U.S. domestic manufacturing and becoming a nation of cheap imports
Reagan did that while holding japan over a barrel to get a weaker dollar ...
@@pumasheenI never seen it that way. Makes sense
You can't have both a strong dollar or jobs coming back. A strong dollar has always been more favorable because the US leverages against the Countries they outsource jobs to and also cheaper imports.
Reagan also destroyed the middle class and education 😂
I love these video series!!! Your channel has consistently gotten more intelligent content. However you still break it down in simple bites. ❤
Thanks bro!! 👊
This must be one of the best economics channel on UA-cam
lol
Lololol
This guy is a clown
🤣🤣🤣🤣🤣
It is…
beautiful video Andrei, have you considered expanding this one into a short documentary? Maybe combine a few of your videos into a feature length documentary. The production quality and content are up to documentary standards.
I think the only people who thought he knows what he is talking about are people who don't know how the economy works
@@Synoopy2 What's that got to do with the quality of the video production and story telling?
clicked for macroeconomics, now I have masters degree in physics, chemistry, and philosophy
The dollar isn’t going anywhere guys. It gets views on UA-cam though!
He's taking notes from the doom and gloom videos that Graham Stephan makes...
@@ShadyD365it's all relative though.
This andrie guy is a flim flam crypto geek
@@ShadyD365 Yeah, but it was only propped up partly from the carry trades, and the other part for high interest rates, anyways. If and when the interest rates go down, the dollar will depreciate against other currencies.
lol at the plebs who don’t see the data or what’s going on. Nations have been stacking gold at the highest rates in years. The US lost its petrodollar status. News just broke today that the Yuan does 2.5% more trades in oil than the dollar. BRICS is about to announce a gold backed currency in October.
I really appreciate these videos, very informative, non biased and data driven. Thank you!!!!
This video was whack.
The edits in this video were sick ❤🔥
Price controls do work when companies are charging overly inflated prices. That’s why gas stations aren’t allowed to overcharge during emergencies
That's a very good point. They aren't a cure all, but they work in hundreds of ways every day in the US. I live in an area with a lot of family owned dairy farms. If it wasn't for price controls I would imagine all of them would have been forced to sell off on any one of the dozens of times there has been a disruption in the market over my lifetime. I'd wager that hundreds of thousands if not millions of US citizens lives have been directly and positively impacted by price controls.
Wouldn’t the same effects andrei listed happen when theres an emergency? Stations run out of gas, sell less, etc…
If you ever learned microeconomics, you know price ceiling is a bad idea for society as a whole. Unless you only want to "help" specific groups of people, you can prove your idea is good using "ceteris paribus"
Andrei been watching "what is money" podcast ? 👍🏽
My eyes were opened after I watched this. Thanks, man.
Price controls are the most idiotic thing ever, sensible only to those who do not understand supply-demand 101.
Hello Andrei, this is your best video. I lived price freeze in Brazil on 1990 (plano Cruzado). Prices blown up and ended with a 90% inflation.
I wondered if you would do this video. Thanks for always being on top of it. 😊
Very end you said Buffett is holding mostly assets and a little bit of cash. Isn’t he holding a record amount of cash(equivalent) right now?
Yes he is, this guy's just making it up as he goes along.
It's still only a minor portion of BRK's Portfolio
It is at 50% right now
Yes. But, for example, properties are less likely to depreciate as cash does, so if he would need cash and the dollar weakens, he would get a lot amount of cash with small property.
CNBC just posted a video titled “ How a strong dollar can backfire into the us economy “ 😂
Yep they changed the title of it
Gold & Silver to the 🌕 baby 100% private transactions ONLY 👌🏽
The edit of the video is phenomenal! Also the content always so informative! Keep it up Andrei !
Always insights offered in your videos, Andrei, keep them up as I am sure you will. It would be great to snag you for a Masters of the Market chat.
2:41 works properly, in India there's something called MRP, maximum retail price.
FYI, In addition to holding cash itself, the folowing are also considered a cash position. Highly liquid assets, such as certificates of deposit, short-term government debt, and other cash equivalents.
Always love your vids Andrei but price gouging prevention laws are already in place in same states in the event of a disaster. Look at Texas Business & Commerce Code Section 17.46(b)(27). I believe this prevents individuals from being exploited and afaik gas prices do not spike significantly in Texas during times like hurricane season.
I agree. You should be able to buy and sell your product to anyone at any price.
Resistance is consistent but flow is always on the go
thank you. i came across your channel and your content is a spot on. still not clear how funds longevity is higher than the dollar.
That was such a cool intro 🤘🏾👍🏼👍🏼
Another quality video, thank you Andrei. It would be awesome to meet you one day and chat about investing, and cars!
Low interest inflate currencies. if the fed was able to set rates to 20% the value of the usd would skyrocket.
Gas lines, and no mention of the oil embargo happening at that time. Just price fixing.
Interesting.
The pace of words you did in this video is very good, keep it going !!!😊
Price controls on a free market work about as well as a laissez faire system does in a command economy. All it does is create a secondary speculator/scalper market that drives up prices for no good reason.
You are just getting better and better. No dull moment in your presentation. 😊
Thanks for creating awareness
The price of oil went from $20/barrel in 2002 to $140 a barrel in mid-2008. Wow, that must mean that 16 years later in 2024 a barrel of oil is super expensive. Oh wait, it's under $80. Oh no, gold went up to $1,900/oz in 2011. And if you bought at $1,900/oz in 2011, you wouldn't have broken even on your purchase until mid-2020. Yes, if you just hold cash your purchasing power will erode over time, but if you buy stuff with that cash today it doesn't mean the price of that stuff will automatically go up in the future. The real theft is that I was fed this garbage video and didn't even get a magic trick out of it.
The point is to be on the train not be angry that you've been sidelined. nothings worse than holding depreciating assets watching everything else go up
To begin understanding the fall of the US dollar, one only needs to refer to the fall of the Roman Empire or the decimation of the Mongol Empire. They came and left, but the world goes on living as if these glorious empires never existed.
So do you dump your index funds snd put money into a savings account?
Andrew, Buffet said many times the asserts are 2x overvalued and he holds majority in cash now not in assets cause we are in recession and the markets need to pup!
Such an awesome explanation man! You really do make economics easy to understand. Thank you for sharing. 🙏
You are an amazing teacher Andrei! I enjoy your first principle thinking. Going to share this with my friends and family.
If Harris gets in there, we are lost. Things will get worse. Watch and pray my friends 🙏. I’m preparing by staying close to Jesus in these last days.
How to show you know nothing about politics and economics without saying it directly.
The US Treasury only hold $650B in gold at current spot price, if they actually have that gold and haven't already squandered it.
Suspiciously low 1.8% margin on $35T of OpEx public debt
Anyone who believes it isn't already squandered is really a "glass is 10% full" type or person. Slimmest of hope optimism
Typical enthusiastic 2ND year Macro Economics 1st lecture, amazing
The more the dollar weakens the more the global economies purchase dollars.
Here goes an idea, "margin control". Price is allowed to go up and down with the COGS, but the company isn't allowed to increase their margin without prior authorization or else pay a penalty tax that is no less than the increase in margin.
What I can say is that in many economic systems, the interests of investors and the wealthy are often prioritized over those of the common people
If the dollar was economic energy it would be a black hole haha, the FED can't just keep printing with no repercussions
other countries don't print money?
@@SuperTruthful They do but they have reserve assets like gold, silver, oil etc etc. Merica had the unfair advantage of printing money out of nowhere for many years and now it's about to end. Forever
@@jimijumjum86 The US has assets like gold,silver and oil too. other countries print money also
@@jimijumjum86 i agree the over printing of dollar was bad
I'm all in on BTC, f*ck it
Andrei posts, I watch
What about looking at XRP? Ethgate? Ripple vs SEC?
Exactly
Must be a reason they choose to ignore it. Continue to watch what happens in the dark
Love the introduction! Fantastic job!! … as always:)
If I remember correctly the rise in Gasoline was were NOT due to prices freezes but due to an oil embargo.
I’ve been preparing for about a year and a half. I’m jacked up to the tits in cash. Basically a war chest ready to buy up cheap assets cause this boat is about to smash into the wall HARD!!!
When you post a video, I automagically watch it
Isn't she saying price gouging, not price controls though? Why is everyone conflating those two concepts. We already have some price gouging laws on the books in some states like Texas and Florida. Why can't we do that on a national level?
proof of work and why it matters next vid. Bring this full circle!
Can you link current situation with future taxes , they are saying taxes will be raised and retirement age will also increase, how will people with credit card debt will survive ?
Great video. Also during The Great Depression in the 1930s, according to the book Bitcoin Standard by Saifedean Ammous, the US government have tried to control the price as well which led to disaster
Please review your Bitcoin ETFs - thank you
It's all motion, vibration, frequency
You can't have both a strong dollar or jobs coming back. A strong dollar has always been more favorable because the US leverages against the Countries they outsource jobs to and also cheaper imports.
Bitcoin is not a "commodity".
It's a property, the apex property
Why you are so good ? Thank you for putting alot work on your videos❤
Glad you like them! Thank you :D
Are index funds considered an asset?
Thank you. You have a special gift in making complex subjects seem simple to understand.
All videos excellent 👍
Money = Notes = Vibration = Energy = Power
Content quality ❤
Classical pump and dump video?
You won a prize for the most unrelated introduction
The fifth factor is politics. The sixth factor is national pride.
why's the under reporting of job losses not a bigger story? thats the sort of thing you'd expect from a country like china or russia, not the USA
Because we have Marxists in control of the media and the levers of power
😂😂😂 you still believe in the propaganda hahahaha even when you are suspicious of it you still revert back to it. The usa is master of propaganda of its own citizens.
Many believe the USD will be the last Reserve Currency based on any nation. It will be replaced by blockchain.
Genius. Thank you
Mass is itself energy. Dollar has less energy than nickel.
currently holding 10kg of gold
Andrei literally just explained Marx Labor Theory of Value in like 30 seconds
Well done comrade
Since 2021 it's 30% or more.
30% loss of the value of currency.
That's in Canada anyway.
It doesn't account for there being a carbon tax added to our burden.
It doesn't consider how goods and services have to be ordered from the USA directly which costs a lot more.
Canada is really in a bad state.
From what I learned, energy isn't lost it changes forms. Cold has energy.
I know what you mean. MTG said that Carbon is good for people.
Andrei, another brilliant content from you. TY Sir 👌
End the Federal Reserve
End government deficit spending.
If your assets are functioned against USD, likely it wont have a good outcome either.
Kamala isn't advocating a price freeze. Just stopping price gouging
Stack sats and relax 😊
Start out with pres candidates price control policy and end the video reminding people to have an emergency fund. Yikes.
great dollar dxy graf down to 100point meanwhile gold rocketsky 2500
ALPP Apple
What sectors do best when interest rates fall?
In a nutshell, diversification is the way forward. That shouldn't be misinterpreted as "China-Russia led BRICS is the way forward".
I spent a decade doing business in Asia, dropping China in 2021 as a market because they are not a viable alternative.
Who benefits from a weaker dollar, theoretically it’s the borrowers who borrowed prior to the weakening. If I borrowed when the dollar was strong but then it weakened, I repay that original loan with my higher income now. However this is a fallacy, wages barely go up over time.
The real winners are owners of assets, like real estate. If you buy a house at 250K with a loan, then the dollar gets weaker and home values double, now your house is worth 500k, and magically have 250k worth of equity.
Andrei is the best! Always solid content. Keep up the great work my friend!