But if the Fed prints the money and the Chinese are not involved, then we get the inflation immediately because our money supply grows, the Fed has to create money to buy those bonds. But you know, when governments create money,what do they do? I mean, they don't create any purchasing power by printing money. If that was true, if you can
But the reality is that the mechanism's the same. They're producing money in order to increase the money supply , in order to then decide where it goes-- into the banking system, into corporations who then borrow it, which then goes into the stock market or other financial assets.
But there are some other things to get into here. The global money supply , I believe-- this green is from earlier on in the chart. That's physical currency there, and then you have narrow money, broad money.
you're basically diluting everyone who holds US dollars today. You're halving the money supply . And so actually in practice, we have a designed inflation rate of an average of about 2% to 3% every year.
simply because at some point, development will exceed-- or growth, the rate of growth, will exceed the rate of growth of the money supply . When that happens, this is immediately going to have a deflationary effect.
Voila, you've turned a relationship of violent inequality into a relation where the victims are running around feeling inadequate all the time, making terrible apologies for themselves falls apart where the money supply vanishes and people are trying to carry on as if they had money without money.
Will we not go bankrupt? If they can manipulate money supply or debt, why not promise more when you can?
US economy to grow, it has an impact upon the US money supply . The US money supply is the amount of cash that every year is printed by the Federal Reserve in order to meet the demand coming from the economy. So, the higher the growth of the economy, the higher will be the number of bank notes that the Federal Reserve will print. So, I went to look at the US money supply to see what was happening because,
One way would have been to let one or two extra banks collapse. There's been inflation in the money supply that has gone into inflation of financial assets.
You know that no-- so the problem with a fiat currency, again, is that the central bank can issue money on demand. And so when you create new money, you inflate the money supply . But you don't actually change the economy.
how much money there is. You have to know that the money supply is going to be a predictable increase, and then from that, you can understand how the economy is going to function. So here we can actually say this is how gold production has worked over time-- or Bitcoin production has worked over time,
done in a common good way. then there's no reason that an increase in the money supply , for example, would increase inflation.
One way would have been to let one or two extra banks collapse. So now we have $4.5 trillion in the market as money supply ?
The problem is too much easy money. The problem is that we have lost control of the money supply , that we ended the gold standard. Instead of having a real commodity whose supply is controlled by nature, we allowed
We want to put it on the cover this week. Hyperinflation is generally caused by reckless governments who let their money supply grow too fast.
The system doesn't work otherwise. You're going to end up with a crisis and no capacity to boost money supply in order to create liquidity by which to fight the insolvencies that are as a result of the crisis.
those money, of course, he will buy weapons. So, with those money, he will sustain the growth of the illegal, terror, and criminal economy -- our 1.5 trillion dollars. So, I went to look at the US money supply figure and what I noticed is that from the 1960s onwards, an increasing amount of cash, which is printed every year, left the United States, never to come back. Now, these are money that are taken out of the US in suitcases or bulk shipments or in containers. And I discover that many economists from the Federal
And if you wanted to store 660 million UNIVAC I's, you would need about the entire state of Washington just to put them somewhere in the box that the Playstation3 goes. And the amount of money you would need to buy 660 million UNIVAC I's in 1955 would be more than the entire money supply of the world today. So literally, it wouldn't have been possible to do it. So I just ran through that in.
the best way to deal with unemployment caused by AI/robotics. Because AI and robotics will produce goods and services far in excess of the increase in money supply , so there will be no inflation. Work will become optional, kind of like playing sports or a video game. You can go to the store and buy vegetables, or you can
It's not go through a deflationary spasm by reducing prices, price of money, price of labor, cheapening things that you want to increase the supply of. The only thing you could do at that point is to intervene politically through a political mechanism of effectively creating-- expanding the money supply , on the one hand, and expanding public investment on the other hand.
Of course, what we have been doing, the quantitative easing of the central banks, which began in Japan in the 1990s, then was transferred here in the United States, with Ben Bernanke responding aggressively by increasing the money supply for the purposes of what I suggested. And now, Europe always comes four years too late-- doing it in Europe now.
the United States. Now, this goes straight into the US economy, so it actually sustains the US economy. But more to the point, because it sustains the US economy, so it helps the US economy to grow, it has an impact upon the US money supply . The US money supply is the amount of cash that every year is printed by the Federal Reserve in order to meet the demand coming from the economy. So, the higher the growth
That's the way Greenspan ran the Fed every time the economy started to contract. They they intervened. They they increased money supply . They slashed interest rates. They stimulated the economy. And so we never really got a full recession. We never really got to correct the imbalances of the boom
Will we not go bankrupt? And I think this autopilot -- we already have this autopilot in monetary policy, by the way, Milton Friedman invented it, and that is, money supply should mimic the development
The US money supply is the amount of cash that every year is printed by the Federal Reserve in order to meet the demand coming from the economy. So, the higher the growth of the economy, the higher will be the number of bank notes that the Federal Reserve will print. So, I went to look at the US money supply to see what was happening because, of course, what I thought is, "If this money come in and have to be money laundered, one way or another, some of this money have to come out in order to go back to the origin."