8 Months of Stimulus Just Unraveled

Share
Embed
  • Be one of the 1,000 fans to your completely free trial of Skillshare Premium right now!
    πŸ‘‰ skl.sh/economicsexplained06211
    Watch my new course on Skillshare! πŸ‘‰ www.skillshare.com/classes/Ho...
    β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€
    Enjoyed the video? Comment below! πŸ’¬
    β­‘ Subscribe to Economics Explained πŸ‘‰ bit.ly/sub2ee
    β­‘ Enjoyed? Hit the like button! πŸ‘
    Q&A Streams on EEII (2nd channel) β†’ flash-player.org/CUOTg.html...
    βœ‰οΈ Business Enquiries β†’ EconomicsExplained@ibg.yt
    🎧 Listen to EE on Spotify! πŸ‘‰ anchor.fm/EconomicsExplained
    Follow EE on social media:
    Twitter 🐦 β†’ EconomicsEx
    Facebook β†’ EconomicsEx
    Instagram β†’ EconomicsEx...
    Discord β†’ discord.gg/MJGcTH6

    β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€β–€
    ECONOMICS EXPLAINED IS MADE POSSIBLE BY OUR PATREON COMMUNITY πŸ‘ŠπŸ™
    Support EE by becoming a Patron today! πŸ‘‰ www.patreon.com/EconomicsExpl...
    The video you’re watching right now would not exist without the monthly support provided by our generous Patrons:
    Morgon Goranson, Andy Potanin, Wicked Pilates, TadeΓ‘Ε‘ UrsΓ­ny, Logan, Angus Clydesdale, Michael G Harding, Hamad AL-Thani, Conrad Reuter, Tom Szuszai, Ryan Katz, Jack Doe, Igor Bazarny, Ronnie Henriksen, Irsal Mashhor, LT Marshall, Zara Armani, Bharath Chandra Sudheer, Dalton Flanagan, Andrew Harrison, Hispanidad, Michael Tan, Michael A. Dunn, Alex Gogan, Mariana Velasque, Bejomi, Sugga Daddy, Matthew Collinge, Kamar, Kekomod, Edward Flores, Brent Bohlken, Bobby Trusardi, Bryan Alvarez, EmptyMachine, Snuggle Boo Boo ThD, Christmas

Comments • 4 417

  • Economics Explained
    Economics Explained  14 days ago +202

    Be one of the first 1,000 & claim your free trial of Skillshare Premium right now!
    πŸ‘‰ skl.sh/economicsexplained06211
    Watch my new course on Skillshare! *How Not To Suck At Speaking Aussie! (Part 1)* ⬇️
    www.skillshare.com/classes/How-Not-To-Suck-At-Speaking-Aussie-Part-1/1324222190

    • Jason Ruggles
      Jason Ruggles 7 days ago

      This is honest bullshit we havent needed to worry about inflation since we moved from the gold standard. we needed more money to stimulate the economy its like a lake and money is water. if water doesn't flow the lake dies, than the fish of the lake. before we had this pandemic over half of america lived pay check to pay check. than we got a measly 3400 when most were out of work for 6 months that doesnt cover 3 months of rent in most states. hence why the rich are using their extra money they stole from under payed and not paid workers to fly to space. How about Jeff and the 2 other Billionaires carpool to space and donate the rest, never. Tax Jeff Bezos 50% and we wouldnt need to worry about the economy ever again. and thats not even mentioning the other companies that pay zero by tax loop holes. Like walmart gets tax breaks for keeping employees on foodstamps by underpaying them than gets tax breaks because employees spend it there, dont forget we are footing the bill on all of that and, Remember the greatest boom we had in the economy was during the golden age of economics when the lowest tax rate on anything over 1.5 million a year was taxed about 45%

    • Anthonyq Colosimo
      Anthonyq Colosimo 9 days ago

      What do you think will happen? Will inflation push the Fed to raise rates within the next 2 years, Or will the Fed keep rates low for a longer period of time?

    • name isn't dave
      name isn't dave 10 days ago

      @Benjamin Chen Because this dude doesn't know what he's talking about and gets dunked on over at r/badeconomics. There's a reason he makes FLash-player vids and not academic papers

    • name isn't dave
      name isn't dave 10 days ago

      This dude doesn't know what he's talking about and get dunked on over at r/badeconomics. There's a reason he makes FLash-player vids and not academic papers

    • Mark Hackett
      Mark Hackett 10 days ago +1

      @Ron Cicotte It may surprise you to know that wealth is not spending, it is utterly different, and mostly done by the wealthy.

  • William Senneway
    William Senneway Hour ago

    You say the money supply won't decrease, but I thought that was the whole point of the massive spike in reverse repos - to reduce the money supply, right?

  • Christopher M
    Christopher M Day ago

    IF it is accurateour government has indeed spent more money on the pandemic/recovery than both World Wars combined (adjusted for inflation), I dont even know where to begin...

  • Paul Shorey
    Paul Shorey Day ago

    This was a waste of my time

  • Mikael
    Mikael Day ago

    Whe are all F.I.Q.'ed.

  • Igor S
    Igor S Day ago

    Buy Bitcoin, save yourself.

  • Michael Arena
    Michael Arena Day ago

    The federal reserve needs to slowly and discreetly take cash out of circulation whenever COVID starts leaving the headlines.

  • Kyle Leahy
    Kyle Leahy Day ago

    You missed something, and its big. I think you assumed there is a statistical average of people holding cash. That isnt the case, at least in america. Most people are making less now than they were before the pandemic, if at all. The vast majority of the money made in the pandemic went to the 1%. So who is sitting on the money and slowing down the velocity? The 1%. See the problem?

  • Donna S. Crosby
    Donna S. Crosby Day ago +41

    Reading about people grabbing multi-figures monthly as income in investments even in this crazy market, any tips and pointers on how to make substantial progress in earning? would be appreciated

    • Felix William
      Felix William Day ago

      Started with this guru , with Β£1400 i made up to Β£5230 in just 2 weeks of trad'Ο€ with her, her patterns are mind blowing

    • Jenifer Grant
      Jenifer Grant Day ago

      @Makissera Fimidis A friend that I referred to her just received $11,050 profit after 12days days of investing.... I became jealous lol, i was a bit skeptical starting high😀

    • Makissera Fimidis
      Makissera Fimidis Day ago

      When people have the signal and the confirmation of the bull market " whenever it is " as you say , their portfolio will be already 70 % at the best ! People and traders should be try to be ahead from the market or at least react fast . Because all the indicators "rsi-macd-Ema-... " Are lagging indicators ! So why tell someone to hold all the way from 65-32 , when he could double his position by selling and buying back .And wait for confirmations in any direction ... Words like HODL and Diamond πŸ’ hands are just for inexperienced people that they think that there is no other direction other than the moon . If you ever need an experienced tradr that will show accurate TA then I will sujgest TE LE GRAM > [ Jjdonna ] < . I trade on a better exchange with lesser fees, happy to say I’m able to do that with her, Julian. N Forex trdes making multi figures.

  • Drew Cietek
    Drew Cietek Day ago

    The reverse repo operations are more about a collateral shortage than too much cash. Banks need short term paper with some interest to be able to pay out interest in their own clients. Also, the federal reserve prints assets for liability swaps with primary dealers. Only congress has the ability to "print" money through spending, but even then, much of that is funded through thr issuance of new debt. This guy doesn't know what he's talking about. Check out Jeff Snider and Steven van Metre if you actually want to understand the reverse repo crisis.

  • Star Scream
    Star Scream 2 days ago

    Futuaaaaaaaah
    Mataaaaaaaah
    Impostaaaaah
    Cultuaaaaaah
    Remembaaah
    Similaaaaaah

  • Lucas Montgomery
    Lucas Montgomery 2 days ago

    the balloon was a very good way of explaining it

  • Opal Dragon
    Opal Dragon 2 days ago

    One glaring problem I see that you forgot a factor that could change the balance of the economy, and that is "Product Availability" -- this can have the biggest impact on inflation either positively or negatively. If Product Availability matches money supply we won't see much inflation, but if there is a miss match either deflation or inflation will occur.

  • Juan Cruz Marques
    Juan Cruz Marques 2 days ago

    Ee:
    50% inflation in 2 years -->devastating
    50% inflation over 20 years -->Perfectly fine
    Me:
    Argentine with at least 20% inflation by year in the last 10 years and at least 40% inflation in the last 4 years. πŸ₯²

  • reubenvb
    reubenvb 2 days ago

    Are you saying a 50% increase in the velocity of money will necessarily lead to a 33% reduction (hypothetically) of money supply OR an increase in inflation or is that AND an increase in inflation?

  • Siddharth Joshi
    Siddharth Joshi 2 days ago

    Where is my pile of Money?

  • Martin RehΓ‘k
    Martin RehΓ‘k 2 days ago

    Czech economy explained

  • Justin _
    Justin _ 2 days ago

    so many annoying sound effects at the start. why.

  • Tamuren
    Tamuren 2 days ago

    RRP hit 1 trilly yesterday, very scary

  • ilFaus
    ilFaus 3 days ago

    In Argentina, everyone born after the year 2002 haven't lived one single day of their lives without inflation.
    I don't think a modern hyperinflation is possible in the US or the world, if it haven't happened in Argentina yet having the Central Bank sitting on a debt equivalent to twice the monetary base I don't believe the US will have a rough patch. This doesn't mean there won't be any consequences for money emission, the dollar will probably fall and there will be a surge in average prices in the US, but eventually things will go back to "normal".

  • ggzh a Argue With Everyone

    What i don't understand is: Why do they give away the money they printed?
    Wouldn't it be smarter to buy assets with the newly created money to boost the economy and, in case inflation happens latter, they can sell this assets again and "destroy" the previously created money.
    Isn't that how most central banks do it?

  • Herp Derpingson
    Herp Derpingson 3 days ago

    Repo agreements are like pawning stuff, but corporate.

  • Tinsae Tsegaye
    Tinsae Tsegaye 3 days ago

    Why not just implement a resource-based economy than creating all this complications?
    Anyone?

  • Yanick
    Yanick 3 days ago

    Delete the dutch video

  • Mishaal Mohammed
    Mishaal Mohammed 3 days ago

    Economists on the internet.
    Tell this loudly to all the keyboard warriors in the comment section

  • Pat Collins
    Pat Collins 3 days ago

    So.. From what i've gathered here is that even rich people have pawn shops.

  • DNB
    DNB 3 days ago

    dont trust economists, or people on the internet... least of all economists on the internet.

  • Shawn Page
    Shawn Page 3 days ago

    As soon as you brought up money velocity I stopped watching. Another Keynesian, Monetarist/Fisher excuse hidden by "scientific math" and "empirical rigour" justifications. Theory and how the data is gathered is more important than "math". Money velocity is a residual, it is impossible to measure. Garbage in, garbage out.

  • Nicole Rose
    Nicole Rose 3 days ago

    That’s the dumbest course I’ve ever heard of in my entire life !!!!! Sad grab for money !!!!

  • Milky
    Milky 4 days ago

    New High Score Today!!! 1,039,394B!! 1 trillion buckeroos!!!

  • Jeff Doe
    Jeff Doe 4 days ago +3

    Let’s just hire more MBA’s. That fixes everything.

  • Jeff Doe
    Jeff Doe 4 days ago

    God giveth and God takes away

  • Aaron Levenstein
    Aaron Levenstein 4 days ago

    If credit cards use is down can't banks just lower interest rates on them to make them more appealing?

  • bachelor lifestyle
    bachelor lifestyle 4 days ago

    I think you are extremely wrong I don't think the average consumer has in your own words piles of cash I think most people are unfortunately broke but you don't take that into effect

  • Bob Riemersma
    Bob Riemersma 4 days ago

    You can only rob the ants to keep the grasshoppers in the style to which they've become accustomed for so long. After a certain point the ants find ways to dig in or they die and the system collapses even harder.

  • Kevin Roscom
    Kevin Roscom 4 days ago

    I mean what if we reduce the money supply by taking it from billionaires and destroying it? Then it doesn't have to be recirculated and the money everyone else saved is more valuable. We could just let them go to space and never let them come back, meanwhile destroying all of their money and making everybody else in America that much wealthier

  • nonshatter7
    nonshatter7 4 days ago

    I subbed after this. Good explanations and illustrations.

  • Enayat R
    Enayat R 4 days ago

    Eventhough my university degree was not economics I enjoyed it. Thanks a lot

  • Foggy Shores
    Foggy Shores 4 days ago

    50% inflation in a year?! Prices of all goods and services will increase by 50%?! If that is what you are proposing then that is F'n hilarious and this video is pure entertainment. I do like your videos, but 50% inflation in a year is nonsense.

    • Foggy Shores
      Foggy Shores 2 days ago

      @Csaba Szasz, haha you think our economy is comparable to Argentina? Get out of here, haha πŸ˜‚

    • Csaba Szasz
      Csaba Szasz 2 days ago

      Argentine would like to have a word with you..

  • michaelrose93
    michaelrose93 4 days ago

    Thanks for the video mate, I'll slip an extra shrimp on the barbie for you.

  • Me Here
    Me Here 4 days ago

    By jeez, by jingo, by krikey, you may be right mate!

  • Argen
    Argen 4 days ago

    I suspect the doom and gloom economists are wrong, they saw 4% annual inflation after 0% annual inflation last year, and not being able to think about more than 1 quarter at a time, 1 fiscal year if they've eaten a healthy breakfast with plenty of fresh cocaine, and they freaked out.
    The problem is that doom and gloom economists are in charge of the economy, and tend to make self-fulfilling prophesies, and they get golden parachutes while regular people suffer.

  • Josh Peck
    Josh Peck 4 days ago

    I don’t get any of this. Maybe my eyes glazed over lol

  • john tucker
    john tucker 4 days ago

    thanks, really really helpful .....

  • Matt Branham
    Matt Branham 4 days ago

    Assume they will make it worse. Govt is fantastic at making it worse.

  • Weeb Destroyah
    Weeb Destroyah 4 days ago

    Feds are gonna have to whip out the negative rates

  • Weeb Destroyah
    Weeb Destroyah 4 days ago

    Let's not forget what happened in Japan when this happened to them

  • Adam Hixon
    Adam Hixon 5 days ago

    FLash-player recommends this video after almost every video I watch. It's almost like they really want to pound something into my head. I watched this ages ago.

  • AkuTenshiiZero
    AkuTenshiiZero 5 days ago

    Money lending used to be outlawed, until a certain group of people managed to gain enough influence to change that, and civilization has never recovered.

  • Mario Mackerelwain
    Mario Mackerelwain 5 days ago

    People under 28 are certainly *mentally* unable to cope with inflation and necessarily higher interest rates, because they've never lived with them before.

  • quartytypo
    quartytypo 5 days ago

    The reward for getting vaxxed is you are now going to be evicted.

  • Brian Hacker
    Brian Hacker 5 days ago

    Be Afraid , Be VERY AFRAID

  • Jeremy C
    Jeremy C 5 days ago

    Only FLash-player economists and Fox News cranks could turn improving consumer spending and rising real GDP into a scary DOOMSDAY scenario

  • Matthias GΓΆrgens
    Matthias GΓΆrgens 5 days ago

    Infation rate?

  • Richard Everingham
    Richard Everingham 5 days ago

    I think it's interesting that everyone assumes that if there is runaway inflation then naturally they will make that % more in wages. Also that their fixed mortgage will be a huge hedge against it. Lets consider a thought exsorsize. You have your nice $1,000/m mortgage payment on your 200k house (sake of argument) making $25/hr wage. Inflation skyrockets to 50%/year. Well that means the price of everything goes up 50% , except of course your cherry fixed rate mortgage. But wait .... your employer didn't see fit to give you a 50% raise. Now everything you have to spend money on went up 50% , but your income didn't raise to match it. You are effectively poorer. Maybe even can't afford after ya know ... eating food , gas etc to pay that mortgage. Or worse , your employer having been forced to raise prices due to input costs skyrocketing is suddenly not selling as many widgets as they used to forcing them to lay people off.... maybe even you.
    Point is , there are no winners in a runaway inflation environment. It's a fundamental breakdown of a fiat money system. So what is more likely to happen is the Fed will act to prevent that runaway inflation by skyrocketing interest rates. We are a debt serviced economy, guess what happens when people / businesses can't afford to get loans. The economy grinds to a halt, which is part of the point. That causes a major recession / depression which brings inflation back under control. Those who had fixed rate mortgages say "ya! my rate is so much better then the prevailing 15% interest rate" , but wait .... the house values collapse because suddenly no one can afford to buy houses at 15% without a massive price collapse. All that equity you had in your house evaporates and your suddenly underwater. Your net worth just took a nose dive. It's 2009 all over again for a different and worse reason. Now your paying twice as much with your fixed rate loan effectively then your house is worth even with your cherry interest rate. You can't unload the house because thats a short sell, and without some tax grace luv from the government that would be counted as income which in the deflated environment would be even harder to pay back the IRS.
    Again , there is no happy ending for anyone if the fiat money system goes off the rails. To think your fixed rate mortgage is a hedge against inflation is to ignore the very real negatives of both a runaway inflation environment and the flip side of the Fed acting to prevent it. Everyone better just pray Papa Powell is right about this 'average inflation target' strategy , and a year from now we are still happily humming along at near 2-3% inflation.

  • Enigma chan
    Enigma chan 5 days ago

    Considering how y'all consider all aspect and factors that most of people forgot to add or include with their research and stuffs, I would rather listen to a guy in FLash-player talking about Economic things than a university lectures, ofc there might be some that university would explain that could make it more easier to understand

  • Ludwig
    Ludwig 5 days ago

    I’m betting against hyper inflation for the USA and U.K. the markets look deflationary.

  • Dr. Ronald Cutburth
    Dr. Ronald Cutburth 5 days ago

    Very well reported. I also liked traveling around with the background.

  • Graham Davis
    Graham Davis 5 days ago

    Warren Buffett would say you're an idiot. Believing spending and debt are good, while savings and investment are bad

  • Joe D
    Joe D 5 days ago

    this sucks. for Canadians. Our systems are more open. with no hidden closets of cash

  • HP
    HP 5 days ago

    Wait wait wait, so what you're saying is Orange Man GOOD!!?? I'm just shocked, absolutely shocked. The media told me otherwise!

  • Willow Petersen
    Willow Petersen 5 days ago

    You should do an episode on Mauritius

  • ChopsTwo
    ChopsTwo 5 days ago

    I think you didn't do enough (or much at all) to explain why your analogy applies in this situation. You seem to be implying that the answer to that question about the equation is that inflation is the most likely outcome of velocity of money increasing - the balloon analogy is good for showing how that would work if that was the answer, but you didn't really explain _why_ that's the most likely.
    Unless I've missed something?

  • Eleth
    Eleth 5 days ago

    Dude, this guy sounds exactly like @Keegan J what the heck lol! I came here from KJ's channel because someone commented that they think he's this guy lol I can see why!!

  • Jason Koplin
    Jason Koplin 5 days ago

    Why are you making math plural?

    • Poke fun at idiots
      Poke fun at idiots 5 days ago

      Math as an autonomous term for mathematics came first to the United States, in 1890. Another bastardisation of English

  • Matt Crouch
    Matt Crouch 6 days ago

    i keep trying to watch this video and my youtube closes itself ...

  • sync232
    sync232 6 days ago

    I love being alarmed and scared.

  • Emily Nashif
    Emily Nashif 6 days ago

    Are other countries that gave higher amounts of direct stimulus to their populations even more worried about this or is the US somehow in the biggest danger? Are economists worried about this in the same way for other countries? More worried? Less? How does it compare?
    I'd like to better understand how even though the US chose (and still chooses) to give so little direct stimulus (e.g. income supplement and housing/rent related protection) compared to other countries, it sounds like the US is extra worried about inflation and the "balloon" breaking? Or am I misunderstanding? Are economists worried about other countries in the same way or is the focus on the US because of the US's role in the global economy or something?
    (I am still learning and have lots of knowledge gaps. Please everyone be kind to me if you choose to reply to me. Thanks.)

  • Aaron Gomez
    Aaron Gomez 6 days ago

    brilliant video that could be explained much faster though

  • nommindymple
    nommindymple 6 days ago +1

    And? Unless I missed something, you just left us hanging (and I've watched this 3 times now trying to figure it out). So, the Fed's doing a reverse repo and paying banks a rate of something like 0.05% and banks have put something like $1Trillion into it. What does that mean to us? Are my beer and donuts going to be cheaper? Non-existent? Cost what a house currently costs? It looks to me that the Fed is taking cash out of the system on the very short term (overnight?). But, so what? Maybe that'll also slow down the velocity of money. But, since these are overnight(?) RRs, again, what does that mean to us mere mortals? Also, at 12:04, you put an equation up relating Real GDP to Money Supply, Velocity of Money and Inflation Rate. You show that to balance a 50% increase in the velocity of money, there'll have to be a 50% increase in the inflation rate (all else being equal). But, then you talk about an absolute 50% inflation rate instead of a 50% INCREASE in inflation (i.e., something like 8.1%). Why?