Economic Clown World Goes Into Mega Hyper Turbo Overdrive
Summary
Transcript
The US government can’t go bankrupt because we can print our own money. Yeah, that makes sense, because every country can print its own money and every country can still go bankrupt. See, the reality is that nobody can print money. People can only print claims on money. The more claims you print, the less valuable those claims are relative to money, which is why gold keeps going up and up and up. The more claims on money that are printed, inevitably, the price of money in claims terms, in dollars terms, goes to infinity. If this process continues, and continue it certainly will.
Why exactly are we borrowing in a currency that we print ourselves? I’m waiting for someone to stand up and say, why do we borrow our own currency in the first place? Well, Stephanie, stop borrowing dollars and just print them and see what happens. Go for it, Stephanie. Why don’t humans live forever? Why are there limited resources in the world? Why is it that we’re not in the Garden of Eden and we can just pick fruit and run around naked all day? That’s because we’re mortal. We die. There are a limited amount of things on this planet.
There is a limited amount of time that each of us gets to enjoy. Therefore, things are finite. And if you continue to print claims on money that are backed by absolutely nothing, not even debt, those claims on money will bid for the existing amount of goods and services which are finite on the planet and raise the prices of those goods and services to infinity, because otherwise the inventor of the claims on money will be able to buy everything and then nobody else will have anything and they will all die. So hyperinflation saves people from dying and giving all of their stuff to the government.
Well, the. So the. I mean, again, some of this stuff gets. Some of the language that the Mn. Some of the language and concepts are just confusing. God, I hate doing this part, man. I never know what to say. No, no, you’re doing fine. You’re doing good. Really? Yeah. No, I’m not. The government definitely prints money, and then it lends that money by selling bonds. Is that what they do? They. What an idiot. I’m sorry. No, Jared, government doesn’t print money and then lend out money. The government sells bonds, and people buy those bonds. And if there is not enough dollars to buy the bonds, and the interest rates on the bonds go to infinity.
So in order for that not to happen, the Federal Reserve stands in and buys the bonds with money that they invent out of nothing to keep the system going. So the government does not print money. The Federal Reserve prints money and gives it to the government in exchange for bonds. The Federal Reserve then owns those bonds, and all the money that is printed is owed back to the Federal Reserve. This keeps the money supply constrained, because all of the dollars have to be ultimately paid back to the Federal Reserve. And if too many dollars are paid back to the Federal reserve, when they mature, those dollars go out of existence, and there are no more dollars to borrow, and you end up in a crash.
And so the only solution is for the government to sell more debt to the Federal Reserve so they can print more money. So you have more claims on money circulating in the economy, and prices keep going up and up and up. See, most jews are pretty good with money and finance, but not all of them. I think this one just got grandfathered in or whatever. As long as the debt can be paid, nominally, the currency still has value, but eventually the debt cannot be paid. All that gets erased and whatever is left on the Fed’s balance sheet is what money remains.
And that is the gold that remains, and the gold that remains on the balance sheet after all the debt defaults, has to compensate for all the lost value of the debt that is now gone. And that is precisely when all of the purchasing power of all the debt that currently exists in all of the treasuries, the treasuries that exist all around the world, in the US and outside of the US, have a certain nominal value, a certain amount of goods and services that they can claim. All those claims go to zero. All of the purchasing power that once existed within those bonds is transferred into gold and gold holders, and they suddenly have all of the claims on all of the goods and services on the planet.
In order to capitalize on those claims, they start bidding on them and start buying up the world’s supply of goods and services. Until the supply of gold gets homogenized to a point where you can restart a division of labor that basically functions. And hopefully you don’t have another system of central banks that print more claims on this gold into existence in exchange for debt that is owed back to them and starting this process again. But thank you for this lesson, Mister Jared Bernstein, on why conspiracy theorists are probably wrong and that there is no intelligence behind this mess.
There are only warring parties. Some of them are smarter. Some of them are dumber. Yeah, I guess I’m just. I don’t. I can’t really talk. I don’t. I don’t get it. I don’t know what they’re talking about, like. Cause it’s like, God, I hate trying to end these things. Hey, suck it. Is that okay? No, no, you’re doing good. You did. You did fine. Yeah. Okay. Clear. This one is a dumber one that doesn’t understand anything. I don’t think from this video of Jared Bernstein that we can say that anything intelligent is controlling any of this mess.
It’s all just out of control and unaware what it’s doing. If you want real money instead of claims on money, then there’s no man who can inspire you more quickly to get real money than Jared Bernstein. If you feel inspired by Jared Bernstein, chairman of the Economic Council of Economic Something or others, then you can go to Miles Franklin and check out their specials. Today we have 1oz south african silver krugerrands 2023 for only $3.10 over spot and 1oz gold australian kangaroos, while supplies last only $59 over spot. So if you like deers or kangaroos or both, and you want to see what happens if they get into a coin holder together, if there’s any fights that break out or something, you can get both of these specials, and it should do you some good.
Just call eight five five. Game end or email endgameinvestorilesfranklin.com comma. One of our guys will get in touch with you and put your order through as soon as possible before Jared Bernstein gets even higher up the economic food chain. This is Rafi with the in game investor. If you enjoyed this video, then sign up for Endgame investor at Substack. Link in the description below and you can see all the free stuff I put out there. Or you can become my patron on Patreon, where I gave a once weekly biblical lesson on money, government, and economics and what the hell is going on from a religious perspective.
And it could give you some comfort if you come from that angle of thought. Oh, wait a minute. The stage guy’s waving at me. Oh, we’re out of time. That’s what it means when he waves like that..
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