How America Doomed Its Own Economy
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- Опубліковано 20 кві 2024
- Under the Bretton Woods System, the US Dollar was backed by gold. Then it was backed by nothing. Ever since then, the world seems to be getting both more complicated, and more chaotic. Why is that, and how did we get here?
This is the story of how our politicians, bankers, and economists, lost control of the global economy in an attempt to bring stability to the world. In dong so, the American dream has become a nightmare
What do you all want next?
More of this! Unmask the "Californians" who are not defined in this one.
How would future world look like as best case scenario, from economy point of view, and steps needed to be made to achieve it.
Do you guys think rising deposits of loans slowly in order to transition from a debt based system to a savings based system would be a benefit for an economy in the long term. I know you have made a video on this before but i'm interested in knowing how such transitions could work and if it would a net positive or negative.
Tell us a story about a planet where apes were in charge and one day the apes all turned on each other and had a world war. And on this planet one group of apes who didn't get bombed ended up with all the banana farms.
This group soon learned they could control all the othr apes by using bananas as a medium of exchange and the Banana Standard was born. Soon these apes realized that they didn't even have to grow bananas, just print pictures of bananas and have all the other apes use the pictures of bananas as currency.
Now these apes got fat and lazy because they didn't do anything anymore but print pictures of bananas when they needed money and they hired a big army to make sure the other apes didn't get any bright ideas about using something else as money.
And one day, all the other apes got tired of being pushed around and told what to do so they stopped using the banana pictures and used real bananas to trade. So the fat, lazy bully apes had a real problem and all the other apes started doing 'monkey shines" at them and laughing at them.
So it goes.....
Please do a video of the mongolian economy, mabey talk about how they helped the soviets, and a smidge of what happened immediately after getting independence from chia
It turns out that favoring the rich and letting them do anything they want is not actually good for everyone. Who knew?
Almost 50% of the country still doesn’t know.
Turns out letting the government collect more taxes and bust monopolies makes them the biggest monopoly of all.
If by "favoring" you mean enabling large market players across every industry to capture the regulatory bodies, run competition out of bussiness with regulatory expenses only the largest players can afford, then cartelize and consolidate control in the hands of a uni party regime ran out of DC, then yeah... favoring
@ClyDIley don't forget lobbying for an intentionally complex tax code, full of loopholes that only large corporations that have the capital to set up shell companies and hire large legal teams can afford.
research Vienna vs the Mongols and youll be surprised
How did the IMF keep a straight face when telling Asia to get rid of corruption and nepotism!
The IMF doesn’t allow itself to feel conviction.
It is like now calling Ukraine the most corrupt country in Europe and giving/loaning them multiple billions of dollars.
What they mean is "YOU get rid of YOUR corruption and nepotism, so that WE can keep OUR corruption and nepotism!"
So the IMF were designed not to help the countries, but the help America. Yeah that gives you hope in humanity. No wonder America’s hated in many places.
Yep, the dream is dead
Yes, for some the dream is dead... but for others, it's alive and accelerating. It all depends on which side of the chasm you're on.
The dream didn't die, it was murdered
you've been watching to much hollywood garbage movies, it's been brainwashing you
But the nightmare continues On ! Enjoy.
@@eddiemalvindenial is the last stage of death!
I recognize the hardships that come with economic struggles like unemployment, job loss, inflation, housing market instability, political uncertainties, and the global impact of conflicts and wars. Making ends meet during such times can be incredibly challenging. To navigate this difficult period, considering alternative job prospects, enhancing skills through online courses, and expanding your network can heighten the chances of securing employment. Moreover, prudent budgeting, exploring available financial aid programs, and seeking assistance from community organizations can offer some relief. How are you currently tackling these challenges? Have you implemented any specific strategies to cope?
In my opinion, now is not the moment to rely on hearsay. Every individual, regardless of their level of experience as an investor OR in a financial market, requires guidance at some stage.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five aiyears now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Melissa.
I really don’t know why any of our allies would trust us.
They don’t get a choice America has boom
there's usually blackmail involved - they don't have much choice.... watch "House of cards", see how it works...
It is better to serve as the right hand of the Devil than to stand against him.
Because they’re just as corrupt. That’s why.
"It may be dangerous to be America's enemy, but to be America's friend is fatal."
- Dr Henry Kissinger
To blame computers wholly for the reason that the real-estate bubble went on for long is a pretty big oversight. What about rating agencies that have and still have conflicts of interest or convoluted structured credit products like CDOs?
6:26 Having Watergate occur just after the US dropped the Gold Standard seems to be a strange coincidence. Reference “Silent Coup” by Len Colodny and Robert Gettlin
Yes the rich > who the cia work for > the global rich not just American rich > took Nixon behind the wood shed
South Korea is not in South East Asia. Thailand is. Korea is in East Asia.
South Korea is not Asia. It's a US colony. LOL
FREE & UNITED KOREA!!
@@metaphosV You're thinking of Hawai'i. And Puerto Rico.
@@Drakelett when the country survival from neighbour country depends on only US military yes it is colony.
@@Drakelett S.Korean soldiers are legally obligated to obey orders from US generals. That is a colony and not an independent nation.
@@nickl5658same here in Japan. Whenever we want to make a decision about our country, we have to get permission from the US.
Outstanding Presentation! Thank you for making and sharing this. I am also commenting to help your channel with the algorithm.
People also thought that the Titanic was TOO BIG TO FAIL...!We all know what happened,at least the version they want us to know....
I was always at the edge of poverty or below until around 30 years old
My wife commented a few days ago about food stamp using immigrants are loading their groceries into a brand new $55,000 suv as they leave the store. She commented that this is an everyday occurrence.
It's the proceeds of drug dealings probably.
The Federal Reserve and the international central banking system that promotes an artificial economy backed by worthless fiat and endless government spending until they can no longer kick the can down the road and it all comes crumbling down while those at the top acquire all the real assets leaving most of us with worthless IOUs is the heart of the problem. Our “betters” have proven themselves incapable of bearing the responsibility, which is why we the people must turn to decentralized alternatives and embrace a parallel society fueled by a new economy that does not answer to the treacherous money changers.
Fiat is far from worthless, it's backed by the coercive power of the state. They are not "kicking the can down the road" because the debt is not paid for by taxes, it's paid for by simply rolling over any bonds that come due. The government rolled over 120 TRILLION dollars worth of bonds in 2021 alone. That's trillion with a T. They can do this forever because they control the currency our debt is denominated in. The idea that taxes could ever cover that amount in silly. It's not even possible for taxes to pay for anything the federal government does. The money we're using to pay taxes comes from the government in the first place, so our taxes don't give them new money, they just cancel out what they've already spent. You can test this out yourself, the next time you pay federal taxes, do it in cash at a physical IRS location. They'll literally put your tax money in a shredder.
I mean, I can imagine an alternative quite easily. But actually establishing it in the face of the extremely powerful corporate interests that exist is the hard part.
It will always fail based on greed and lust.
Chef's kiss. This was truly an excellent summary/review! Well done!
Can you do a video to make us understand why inflation exists? why they keep increasing the money supply? and how is this related to GDP.
👀 on it
@@EconomicsIsEpic 🙌👍🙌👍 Looking forward to your next video. I am learning a lot !!! This is one of the best channels I follow.
Simple infinite money printer
@@EconomicsIsEpic Isn't GDP mostly fluff?
@@EconomicsIsEpic Relatedly, I've been wondering: If/when inflation gets back "under control", what incentive will businesses (grocers, restaurants, etc.) have to finally lower their prices to previous levels again? Is it all just competition driven?
The biggest point here is so correct !!!
America is growing on hype alone. Productivity is not growing.
This is clearly seen on the stock exchange where company values are based on inflated marketing hype rather than REAL value. In the past, companies that go bust on the stock exchange, the government could step in and recoup some of the loss by selling that companies plant and equipment or technology which lessened the loss, but more importantly kept companies grounded. Nowadays stock prices have no real value, people are buying promises only, and worst, those promises are made with short term profits in mind. People keep investing because the stock market keeps rising hence the term bull market. The stock market is like a balloon, if the balloon was filled with water, at least you get water when it pops. Unfortunately this balloon is filled with promises only.
productivity is literally growing at 3% which is pretty unheard of
Productivity being “stagnant” is rich oligarch ruling class propaganda to justify ever harsher austerity policies, cutting wages and cracking down hard on any union organizing activity. It’s bulls**t. The oligarchy will say anything to blame anyone but themselves, while claiming their businesses aren’t profitable, which is an immense falsehood!
The mania over productivity is typical capitalist ideological propaganda that amounts to nothing more than the monocled boss in his top hat yelling across the shop floor … “Get back to work you lazy bum; you’ll be wanting to take 15 minutes to eat every eight hours I suppose now too, huh? Well, ok. But that comes off your hours! Remember your kid starts in here next week! Tuesday and Thursday 4 to 10pm straight no breaks and every Saturday 8am til 4pm. Yeah … half your hourly after first 90 days! Great deal for him at 14 years old, huh? $4.25 per hour until then!”
Many analysts agree that productivity is increasing at a healthy rate. For example go check out “Gary’s Economics” channel here on UA-cam; he maintains there’s growing productivity, and he’s no idiot.
Boring finance, which loans money to people who will use it as an investment to do worthwhile things with real long-term benefits, is useful, even essential. When finance becomes a way to profit without contributing to the production of anything worthwhile, it is no longer productive, and becomes extractive, speculative, and inflationary. Where actual production is concerned, it must be marketing to real end users, not speculators.
this is one of the best videos i have seen in a while
Great video. Subscribed!
Welcome!
Untethering from gold seems practical given the volume of trade exceeding the bounds of gold itself.
This is a fantastic documentary--thank you for sharing! Subscribed!
Welcome 👊🏽
Love the new style of video - they say imitation is the sincerest form of flattery, so Adam Curtis must be blushing right now.
This was so brilliant I HAD to listen again
I have a silly rule: best channels on UA-cam are the ones with subscribers between 50k~500k.
This video proves me right once more😊
Such an eye opener!
The last line “we all feel like helpless cogs in a global system controlled by …” is revelatory.
When you realise that you can’t name the unnameable.
Will we be cogs in a Unipolar feudal system - or will leaders arrange a 1933-like Bankruptcy Reorganization, which will freeze and firewall out $2 thousand trillion of gambled up claims {like Derivatives}, throughout especially the Dollar-Pound-Euro-Yen system? Then, repurposed banks could make credit available for real economies, in concordance with the BRICS process!
controlled by federal banks who are ran by a small minority of rich ''bankers'' there is a reason why Germany had the best economy in the world when they arrested them and put them in..
"saving every penny for a down payment on a home." The good old days when people could buy
Great little doco! I do love some financial history.
Also, clear inspiration from Adam Curtis. Not a critism, Curtis is one of the great documentarians.
Keep up the good work!
Big fan, please try to stabilize your audio volume
Lol when that '90s electronic music hit I was like GYATT
Cringe @@hersheytate8304
Yep, another old timer here. I am also hard of hearing
This is such a good video and your channel is so underrated
Thanks mate!
Geography for Westerners since you guys regularly make mistakes
*East* *Asia* : Japan China North & South Korea Taiwan Hong-Kong Macau
*South* - *East* *Asia* : The Philippines , Thailand , Laos , Vietnam, Indonesia, Brunei , Malaysia, Myanmar, Singapore, Timore- Leste, Cambodia
*South* *Asia* : India Pakistan Bangladesh Bhutan Maldives Sri Lanka Nepal
One of the best explained videos about financial system I've seen....very good
Fantastic video, thank you
Great presentation
I love this episode! Thanks!
Politics determines how wealth is distributed within a country, while wars and diplomacy determine how wealth is distributed between countries.
US citizens are enjoying these long-term benefits of US government policies: Economic inequality, inflation, stagnant real wages for the last fifty years, costly healthcare, an expensive education system, student loan debt totaling $1.7 trillion with an average balance of $38,000, poor public transportation systems, racial inequality, mass incarceration, the militarization of police, deteriorating infrastructure, housing affordability, homelessness, the opioid epidemic, and gun violence. Instead of prioritizing the welfare of their people, they meddle in other countries to spread their version of democracy.
Anywhere in the world, if there is a border dispute, it is usually the result of a line drawn by an Englishman; if it is an internal dispute, it is usually the US fueling it. Difference in implementation of divide and conquer strategy.
Brilliant video thank you for this. What sources do you use for the reasons on abandonment of bretton woods? It's a topic i am interested to read further up on as it effectively created the forex market.
watched this 3 times its soooo good, if you guys make content like this damn, we up to a million
Excellently presented! Keep up the good work
Computers predictably made businesses and government more efficient, but that only whet the appetite for greater and greater government spending. It was the accumulations of government deficits which has given us 34 TRILLION in debt. And now the national debt grows at 1 TRILLION every 100 days. Since it now costs roughly 1 Trillion a year to Finance this astronomic debt you might grasp how impossible the current economic situation has become. Inflation was and is the inevitable consequence. And additional spending will merely raise the level of inflation. Why this process is not taught in high school or college suggest that governments want this destruction. Either that, or governments are hopelessly incompetent. What do you think?
Central banks skimming the skim.
America is definitely way better off with a central bank lol. 6 bank panics in the 19th century alone after the second bank shut down in 1836
@@rooftoparugula5679 purchasing power of the USD, declining middle class and wealth consolidation says otherwise
@@TheGringoSalado All of these are definitely problems, but the Fed is not responsible for all of these issues. Congress is ultimately in control
@@rooftoparugula5679 somewhat analogous to saying a drug addict is in control. Yes? No?
@@TheGringoSalado purchasing power of the USD has not declined, inflaiton adjusted wages are up. Wealth concentration can only be addressed with acts of congress to increase taxes on wealth. How is the US a drug addict? Because it supports the private sector with deficits?
Very bold video, an attempt to summarize the post Bretton Woods financial order. I think it has some minor flaws of edition and ideas, also, it wasn't made for beginners on economics to understand. But good job!
I think by this point I'm history with flow of information, and the economic pain everyone in the country/world is feeling, none of us are "beginners" were all tired of this one tiered system created by elites
So the title is clickbait, but that's fine. The channel needs people other than subscribers to click so you end up with titles like this. The biggest issue with this video is that it shouldn't be one video. This should be like a 4 part series to elaborate on everything. Agree or disagree, we just covered decades of economic policy and the many influencing factors in less time then it takes some pizza to get delivered.
I enjoy learning about lots of economic topics and this seems fascinating even when it's not always provable. People yell "conspiracy theory" but like....a bunch of wealthy powerful people manipulate markets/media/governments to enrich themselves, entrench their power, and screw over others? I feel like I can pick people from many age ranges and back grounds who would nod and go "yeah I might not understand exactly HOW but that does sound familiar"
Without any explanations or evidence on its many claims
Based
If you think this thumbnail is clickbait, compare other expert analysis to the same topic and see how 1-in-the-same they are. Now not sure where you were going with your second paragraph, but if you were suggesting somehow the points hit in this production was "conspiracy theories " then you my friend have been living under a rock
@Rags2Riches762 final paragraph was actually pretty much what you're saying. People try and wave things off as conspiracy but I think most people in all walks of life can agree the overarching idea is pretty realistic and what we all witness
Great video!
Back when cash for a house down payment could fit into a checkbook.
That movie Limitless has no basis in scientific fact but it has one of my favorite quotes in it: "Against aggressive overexpansion? There aren't because there are no safeguards in human nature. We're wired to overreach."
Whether it's confidence in an algorithm with undeniable logic or faith in a government that can just borrow and print it's way out of any problem, the human element cannot be removed from the equation and the math will always be a tick off from the equation. I try to take solace in it.
only economists and madmen believe in Infinite Growth on a finite planet (unless SPaceX rockets or a Space Elevator open up the door to the resources of the Solar System).
Humans are wired to be destructive then cry about the consequences.
the government doesn't "borrow" it's own currency. That wouldn't make sense
Why was the Glass-Steagall act removed?
Because it was an obstacle in the benefits of the bourgeoisie, what else?
You went from President Ford, 1976 to President Clinton and skipped Carter, Reagan and Bush. WTF -?
I think you had a lot of good points but you fail to point out that America, likes most countries wants long term prosperity but hasn’t figured out the formula yet……
Marx spelled out the formula.
The few White men in the White House ignored it LOL.
@@metaphosV Yeah those Marxist policies really work out well for those who try it.
17:26 "we can't fix it because then we'd have to admit it's broken."
The financialisation of the world is the problem. It is guys with PhDs and fancy sounding titles but it is gambling. Gambling on whether this wheat harvest will be good or bad. The issue is not that hedging and options exist but that "wealth" is created not by actual economic activities but rather just speculating on the real economy.
Absolutely agree!
@@johnpalmovis6256 The Dollar-Pound-Euro-Yen-IMF system has $2 thousand trillion of gambled-up claims, where $5 trillion changes hands every day - in speculations like Derivatives. This will become a reverse-leveraged blowout, unless a 1933-like Bankruptcy Reorganization is organized. Then, credit could be made available for physical economies!
Are Americans OK with their government doing a coup in Indonesia? And other countries?
Btw how come buying US bond is controlling US? Weird
7:40 Come on, Greenspan was just a miserable catastrophy to humanity! The 2008 financial crash was the ultimate result of his incompetent-stupid policies!
WOW...., that was a great informative video, thankyou. Not sure what to think. Lust and greed stand out.
Excellent documentary 👏
Fantastic video
Economy doing great, while we all work 2 jobs, can't afford health insurance, houses quickly becoming out of reach, and everyone is either depressed or suffering from anxiety
Im active duty in the military and I even got a second job
@@Vhvjdow0ajsbcdhcuei3o22-om4sm when I was in we made 600 every 2 weeks, we had money for beer, cigarettes, and dip. I used to throw tools into the ocean in a quiet protest
The Bretton Wood meeting is "designed to promote trade in the post-war world and to create a foundation for lasting peace. "
It never happened. The US is at war continuously globally until today. They even abolished the gold standard attached to the US currency. The rest is history.
Only about 5% work 2 jobs and almost zero% have a full time job AND a second job
@@Homer-OJ-Simpson dude you're out of touch with reality
The American dream today is getting away from homeless nation USA
This is one of the greatest videos I have ever seen, I literally think every US citizen needs to watch it
Yes, such rescues are self serving but the banks, brokers, and investment funds are "The System". What fills the financial holes created if they fail? What supports future investment if existing capital is wiped out? The System's losses are indeed redistributed unfairly but how is a complete systemic failure a better result?
Have you not heard, or learned anything from the past? The idea is NOT to let things get as bad as it does with irresponsible speculating, and investments. Administration, after administration had sound economic analysts but never wanted to head warnings. That's the arrogant, thinking that got us where we are today. And that's why this video is not CLIKBAIT. That same kind of thinking, and constantly repeating HISTORY!
Yes, prevention is better but that's a human endeavor as well so using a less awful is likely to remain in the tool kit.
"What fills the financial holes created if they fail?". Others.
"What supports future investment if existing capital is wiped out?" Other capital.
"The System's losses are indeed redistributed unfairly but how is a complete systemic failure a better result?" Because it allows for new growth, growth that should note the failures before them and avoid the same mistakes.
Take the financial crash of 2008. Did the banks learn from their mistakes? Did many banks fail to get replaced with new banks, with an adapted model?
No, they learned they are powerful enough to redirect government funds to prop themselves up and that taking future risks, even more riskier than the last bunch is just fine because if it all goes upside down... they are too big to fail.
This is the real problem. In our modern false capitalism, you don't need to be the most productive or most efficient to survive, (i.e. you don't need to build a better mouse trap).... you need to have levers on the power of government. So there is no actual improvement in future growth to avoid past mistakes, there is only the push to further merge government and big corporate interests.
Simply put it is just the elites taking care of the elites, when it all works out well, the elites benefit... when it doesn't... the average tax payer foots the bill.
That was great thank you
The US is on the same path as GB
History repeats itself, and that's just how it goes
If we cut government spending now, would that lessen the demand for money, goods, services, etc, and that would allow inflation to cool and interest rates to drop back to 5.3-6.3%. This would allow homes to be purchased and savers to get some return. The Buffet Factor stands at 193% which is not a safe time to put anything into the market. Home prices are at about 125%-300% of value depending on where in the country. Interest rates are not going to fix the immense problem like San Jose, Austin, Miami where 300% factors need correction.
This is epic!
What you want next?
There is an alternate take. We gave up our industry and our ability to produce and let Vulture capitalists destroy innovation. Our military industrial complex understands keynesianism. The problem is that bombs only give you a short-term gain and in the long run they are toxic. All the United States need to do to stay on top was to be a little bit nicer to other countries. Most of the world loved us especially after the second world war. When the Soviet Union agreed to give up its control we had a golden opportunity, but instead we double cross them. When the twin towers fell we had a golden opportunity to turn the other cheek get the entire world on her side. Instead we let the vulture capitalist, the military industrial complex and the CIA take over. That is our downfall.
This is an incredible way to learn, through stories. I’m shocked how negative people in the comments are because you didn’t give them the basic cookie cutter videos they expected
We simply try to capture economic history through a more ‘epic’ lens
But our fans feedback, positive and negative is always welcomed!
The United States' economy has been plagued by a combination of factors, including crippling national debt, outsourcing of manufacturing jobs, and a widening wealth gap. Decades of short-sighted political decisions, prioritizing corporate interests over worker protections, and a culture of consumerism have contributed to the country's economic woes. The decline of industrial production, stagnant wages, and a reliance on service-oriented jobs have further eroded the nation's economic foundation. To revive its economic prosperity, America must address these underlying issues, invest in sustainable industries, and prioritize the well-being of its citizens over corporate profits.
So, politicians, what are you going to do? Protect the world economy or the American economy?
Politicians: Neither, I choose MY power!
Not even their power the only ones that benefited were the financial centers that infiltrated the government
I don't have to watch the video to know the answer. The federal government embraced Keynesian economics with abandon. We've spent ourselves in to a hole we can't get out of. Both parties justified deficit spending. And now interest on the debt (& Social Security & Medicare) is crowding out other spending.
Missed the whole point of finance. Relativity. Weimar German economic output busted a hole in all of the crap. Inflation Sm'mation, Debt, Schmet. They were still able to build a unparalleled war machine, because finance is about Relativity. We could use Puka Shell necklaces for a trade standard, an economic system. Shift 'em around, on a beach, to make pretty designs. If it's considered worth digging them up, a few coconuts or a wife to warm your bed? In the end, value, debt are arbitrary. You're a smart guy. Concentrate on attempts to turn us into a SHARE CROPPER ECONOMY. LOL. 'The, Government.' They're as terrified of the Corporations as the rest of us. So much so, no one can say legal, Price Gouging without fear of being called a Communist or Socialist. Their profits have soared for two decades yet they raise prices on housing and everything else still. 'The, government.' That's the funniest thing I've heard today.
@@chieftain5571 When you said "you are a smart guy", perhaps you what you meant is that I'm an educated guy, specifically Finance (Securities) and Economics. Your comment about Price Gouging indicates that you are not educated in economics. Price Gouging is nothing more than rapid upward movement of prices based on sudden increases in demand or sudden decreases in supply. Its just economics in extreme market conditions. When you say "their profits have soared...", who are you referring to? There are literally tens of thousand of corporations & LLCs in America across a broad range of industries and markets. They say that ignorance is bliss. If that's true, you must exist in a state of complete happiness.
And eventually the interest on the debt will crowd out Social Security and Medicare even as private debt payments will be crowding out consumer and perhaps corporate spending. Qui bono? Certainly not the Jews. 🤔
They actually moved away from keynsian economics in the 80's in favor of the monetarist teaching of friedman. We haven't "spent ourselves into a hole". Our national debt is perfectly sustainable since the fed has full control of interest rates. We could set rates below the growth rate at any time, or even stop selling bonds all together
@@grimaffiliations3671 you are clearly a Democrat
Very articulately written
Yo EE this was one hell of a video. So on that note.....Make sure your house hold economy is A- one ⏭️⏭️⏭️⏭️⏭️ the #MidwestGoldClub.
Thank you for this, I learned so much. Well Done, You also gave me a missing piece of the history puzzle BEFORE they took the dollar off the gold standard.
1971, then the Floating Rate of Exchange by 1973!
How America hurt itself
Now, we have another buzz word, AI.
lol that recording never gets old.
Economists want to sit there and make this complex narrative about how all complicated all these crashes were, but what it boils down to the three oldest sins in the world: pride and greed and lust 😢😢😢
I would agree with the initial statement but laugh in the face of your second. Pride and greed are cop outs. There are several perfectly logical reasons for what makes markets crash and they're glowingly apparent when you look at the complete historical record, instead of only the cherry picked narratives the masses are fed by the political ideologues that write the governments K-12 curriculum.
The only instances that market exuberance/animal spirits can be blamed for market crashes, also has a different element that just so happens to be the ONLY common element among every instant of markets failures ever observed... incompetence, and/or corruption by state officials intervening amd meddling in free and voluntary private markets.....
Market failures are most generally caused by central bank managers misleading markets with mispriced interest rates for an extend period of time, while concurrently monetizing the debt of the state treasury, which in turn enables the government to embark down and quickly pass the point of no return on an unsustainable fiscal and monetary policy pathway long before the numbers in government data releases will no longer be able to be massaged well enough to hide the true reflection of the underlying market conditions the fiscal and/or monetary authorities have been incompetently or lying out their ass.
Market crashes are the snap back reactions of individual, market entities as data releases or news breaks that reveals the current underlying situation of the market is in fact markedly different from the assumption they used to allocate current positions in the market.
To put it simply, everybody realizes all at once that assets are widely mispriced and that the return they're expecting at the current price is widely lower in reality, resulting in a whole shit ton of players bolting for the door, and rightfully so, bc they're only their on the false assumptions and guidance from the monetary and fiscal authorities who have been misleading the markets, regardless of whether it was out of incompetence, altruistic deception, or outrighr corruption, bc the thousands of economist at the central bank and the ruling government institutions thought it was a good idea to arrogant meddle in markets, ultimately causing a massive and wasteful misallocation of finite resources.
Interesting video! Here in the UK, the Conservatives have been doing this for ages: "Privatising Profits and Socialising Losses" for the British Public to support their cronies. I did not realise that the US did this in Southeast Asia and Russia as well, but it makes total sense!
And here in the US we have TWO Conservative Parties 🫤
@@user-uo7fw5bo1oThe Democrats are Woke Socialists Try Again
@@user-uo7fw5bo1o Dems aren't conservative
Funny how people see only one side doing things that both sides do.
For example, I don't recall conservatives pumping billions of government loans into green energy companies that ended up going bankrupt. Or pumping trillions into student loans to make the universities extremely wealthy, just to "forgive" those loans later.
Love the video because it's summarizes a bunch of history I don't know. But I do know CDOs, CDS's and the financial bubble since I lived it. Algorithms only caused the flash crash which was you could even say after the recession. The recession was caused by deregulation and incentivizing companies to issue loans to less qualified borrowers. Because while that increased risk isn't a problem in itself, the bubble you mentioned is all it took for property to be devalued just enough that all those people defaulted. Real estate has gone through larger devaluations since then but has not resulted in a recession that has spread to the rest of the economy. In fairness, like the big short talks about, even back then, it may not have spread to the rest of the economy had the banks not colluded with credit agencies to offload all that bad debt before publicizing how bad it really was.
One small thing. China didnt decide to buy us Bonds.
If a nationstate owns dollar they are only allowed to buy US Bonds with it. They dont have a choise.
That was the smart thing the US did when they left the breton woods.
What? No, that is patently false. Foreign central banks hold dollars for a myriad of reasons, mostly for exchanging them with the local currency from private entities who need dollars to pay for imports that are priced in dollars on the world market.
@@ClyDIley exactly. They are not allowed to buy anything with them. Otherwise China would have bought upp the stock market in the US
There's no citizenship requirement for holding US stocks. Norway's wealth fund is heavily invested in US stocks. They can also use their dollar reserves to buy up their own currency to support their exchange rate, as Japan is currently doing
@@grimaffiliations3671 its only dollars that are gained from trade. And yes you can sell dollar to other countries but you cant buy other that USDEBT.
To show my point, US is not angry that China is buying us debt, US is angry that they dont. Look at done graphs on Who is buying debt and who has stopped buying debt.
@@Tom-vx7xm Are you trying to say US bonds can only be bought with US dollars? If so, i agree. That's how things work. But they are allowed to buy whatever they want with their US dollar reserves
Its true. But the government became too big. Too big ,especially by the mid 1970's, and spending was getting out of control. During those years it was possible to get America's spending under control. But no serious controls were ever implemented. Now it's too late. Not only for America but for virtually all nations. All nations use a fiat currency. So no fiscal restraint was in place. Governments didn't want constraints, and so the eventual collapse is being put off by massive debt creation. This will continue until governments collapse under debt. By the way, Nixon did not create this mess. If you study the Lyndon B. Johnson Administration and his extremely expensive "Great Society" and Johnson's Vietnam costs, you'll see the greater culprit. Nixon got America out of Vietnam and began unwinding that disaster during his Administration. I was in the army under his Administration.
The US defaulted on its bretton wood agreement to exchange 1 ounce of gold for 33 dollars. So the US dollar should have been rejected then, but i guess better late than never.
Wait, love or hate him, how do you skip Regan?
Wow!!
It has a Power of Nightmares feel about it.
We've actually been living in the isreali states of america
Got an Adam Curtis sense to it without the "don't look behind the curtain" feel. I mean that as a compliment.
Since you asked, dream up an idealized system. Explain why this fits your criteria and how it would work.
Kinda like a century spaceship.
Electronic computers were first developed in England, not in the bloodthirsty USA.
America had so much potential.. sad to see what they’ve done to themselves 😢
American dream died in 1969. Today most people can't afford to raise a fish.
And we we have the biggest consumer base in the world....
Whatever the latest cheap, plastic junk from China or wherever... you can bet that Americans will buy more of it than anyone... and then complain that they have no money.
This better get good quick if I'm sticking around to hear you address the title of the video
Great doco. Joint is cooked
My guy at 12:39 slyly checking out a woman only for it to be recorded for all eternity
This would explain one reason why the U.S. is not liked very much.
And why we need to reclaim the human and knowledge capital we sold off.
I'll call this a deep dive!
27:35 found the bag holder... those eyes are wild 😲
Well done
The most important lesson about money is that it isnt about money...its about Gold..
They say Gold is rare..xD