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 for the first time since the founding of the United States of America the world is going to do an experiment uh in Austrian economics and libertarian ideals without a total collapse happening first Argentina is not a completely failed economy with total collapse and Revolution because normally that's where this experiment comes from uh but the United States uh did this exp experiment and we were really the very first country that was uh founded upon uh free markets free trade libertarian ideals and what

eventually became labeled Austrian economics it didn't really exist back then but that Austrian economics is what you get if you're going with freedom and free trade it just sort of Austrian economics is what happens it's the starting point and then we developed all these other economic theories uh and and tried other stuff which fiat currency [Music] allows hi welcome to this video I've got Alan Hib with me once again Allan you've got a story for us what is it yes I do Mike uh so big news so Argentina has

devalued its peso overnight and it is cutting spending to treat a fiscal deficit addiction so this is this is big news they're Dev in their currency and they're trying to get their country and their economy back on track so the news here is that Argentina will weaken its peso over 50% over 50% it's going to get cut in half to 800 per dollar and also provide cuts to energy subsidies and different tenders of Public Works and a few other programs uh so so that's what's going on Mike yeah

okay you know one real quick comment on this is uh this is a this is what is wrong with Fiat currencies uh that can't happen with precious metals when you're using money versus currency big difference here and this is one of the things that demonstrates the difference between money and currency the government is going to transfer wealth from anybody holding pesos to people holding dollars basically it's a devaluation of the peso against the dollar and in Argentina a lot of business is conducted in dollars but a

whole lot of people get paid in pesos uh even though this is probably going to be good for the general economy over the long term because they're sort of catching up with the damage that the past government has done to the the economic damage the past government has done to the peso uh by having two Fiat currencies working in a country and then the government warping and distorting one against the economy uh and having having it in an AR artificial balance and then they're trying to relieve that

balance they've targeted though a specific amount here 50% instead of just letting the free market do it so go ahead with your story but I just want to point out that this would not be possible with money uh you can devalue a currency against money or you can revalue a currency against money but you can't devalue money gold and silver exactly right you can't say okay this ounce of gold today is going to purchase half as many goods and services as it did yesterday yeah that's the beauty of the

free the free market it's free right whereas um you know these uh centrally managed currencies are Central and they're managed right so if you're on the wrong side of a of a central policy you lose and you don't have much recourse so right yeah um so definitely so so one thing to note here is that Argentina had a fiscal deficit for 113 of the last 123 years so massive fiscal deficits keep that in mind because I want to come back to it later again only possible with a fiat currency yes exactly only if you can

print Promises at will that's the only way right otherwise if you have to pay an honest money right when you buy something you can't run a deficit it's impossible right so um yeah I mean the situation is critical there there are some like uh important quotes here but we we don't need to go through each one um one thing here is the adjustment will be painful and there's an acknowledgement that this is going to hurt in the short run but like the reason you do it is you know short-term

pain for long-term gain in theory everyone should be better in the long run so that that's sort of what's Happening Here okay so so yeah key takeaway P Argentine peso devalued 50% and there's something else that's 50% off and that's your book Mike your book is your book is 50% off I just want to remind everyone real quick it's a great gift for the holidays it's 50% off get it while you can and that's it that's all I got well I have one thing is that you know if you give this as a gift uh

whoever you give it to uh you know they can't come back later and say well why didn't you tell me when when the excrement hits the air acceler the rotary air acceleration device uh they can't say well why didn't you tell me so okay go ahead that's right that's it so get now get it now protect your loved ones okay so I want to put this in context look at a couple other stats for Argentina and then for the United States and make some comparisons so here I have the M2 money

supply or currency supply for Argentina and you can see maybe you can see uh the record low of it's about 700 million it's kind of hard to read with this interface but it's about 700 million back in 2019 so we're talking four years ago I mean this isn't a long time almost five years ago know it says 700 million in 1990 I think you're on the 10 fiveyear tab right now oh it may have uh it may have Frozen while I had all these things open yep you're right you're right you're right

yeah click Max whoa okay that was 700 million yes in January of 1990 so s 700 million and now we're now we're up to almost 22 million million well in 1990 I think uh um $77,000 would have been about the average car in 1990 maybe a mid-range car and so it's gone from 7,000 so add another zero to the current figure yes exactly so that would be roughly 218 million yes that that same car that was what price it would have been in the United States uh if they were using dollars which inflated also I mean it

would be interesting to do this against this exercise against gold and see how many you know so go ahead I'm sorry I sidetracked you there no no the inflation of the currency Supply is just huge and this is how they were able to do the deficit spending so yes and it's it's totally out of control so to your point going from 7,000 to 218 million would be the cost of something that's nuts I also did want to look at the CPI um so F first the inflation rate um on a year-over-year basis you can see that I

mean Argentina like typically has 20 30 40% inflation which is very high lately it's up over 140% I mean that's absolutely massive and if we see what that looks like the cumulative effect on that on prices the CPI so with it compounding yeah compounding it's absolutely massive because that previous chart we were looking at is is just periodic it's not compounding this one is and uh it's indexed here to 100 and it's all the way up to 2500 so this is just in seven years prices have gone up

25x 25x in seven years it just amazes me that the public actually puts up with all of this crap and they don't protect themselves more against the government stealing all of that purchasing power this is theft uh you know the prices went up because the government created currency from nothing it was empty currency it stole purchasing power from the units of currency in circulation causing this that's the that is a measurement of the amount of theft that the government did from its own people yep exactly if if you used gold

or silver it handcuffs the government the government cannot perpetrate this fraud theft and enslavement because it's all done through issuing uh debt that uh is paid for out of future taxes it's it's it's amazing and it is a an absolutely evil monetary system and our monetary system works the same way it's just that uh the people uh you know the the masters of the monetary Universe have showed a little bit of constraint in uh in uh the amount of enslavement I think because people get fed up

eventually and consider abandoning the system yeah which is what's going on in Argentina right yes exactly exactly so to your point about constraint I mean I guess it's all relative right which is kind of what we're what we're discussing here it's like do you steal a little or do you steal a lot I mean you know right it's not like one's really better than the other um but yeah um so just to put the in perspective you know if if inflation is 10% a year 10% a year if that runs over seven years prices double

right 2x if like if the inflation rate is what it is in Argentina prices are 25x not 2x 25x so the inflation is way above 10% a year it's absolutely massive and to your point Mike is like people aren't putting up with it anymore that's why they elected this sort of Outsider a Libertarian candidate sort of a quote unquote weirdo right but the weird thing about him is he he wants fiscal discipline so we've kind of come full circle right so and he's one of the only ones on the planet that seems to want

this I I'm I'm grateful for this experiment in libertarianism and Austrian economics yeah so uh let's move on then so this is the uh the inflation rate uh compounded so cumulative inflation over this time period it's amazing since 2019 that's uh no 2017 2017 yeah we've got seven years here but I actually wanted to go back even further this is on the Federal Reserve website but it's still the CPI for Argentina and if you just look at it at a glance it doesn't look that bad it

doesn't look parabolic it doesn't look very extreme and by the way this only goes to 2014 we don't have the most recent roughly 10 years but but the funny thing is we do have the long history and look at this so we're up around 100 this CPI around 100 recently but what was it going back this gets hilarious look at these numbers fra 0.009 and then we go all the way back here we're in scientific notation this is amazing it takes scientific notation to I don't remember seeing this on the

Federal Reserve website 7 * 10 the -10th I mean we go all the way back here time 10 the1 back in 1960 so from 1960 to so what was this this was 2.8 so going to about 28 so here from 1991 okay okay so 30 years 31 years 30 years so that's like a long generation 30 years prices went up by a factor of a trillion wow 12 12 orders of magnitude you would think that this would not surprise me I've presented stuff like this but in different form ATS than this uh I mean there was one where I showed the Russian

inflation back in at a uh a precious metals conference in Vancouver Canada uh going back to um uh Peter the Great and uh uh it's it it's the same story over and over and over again a trillion times uh uh devaluation of their currency like this is a theft of basically you know over that how many years was this that's a theft of like the entire uh the value of the entire currency Supply at any given moment over and over and over and over again from the population to the government and

people keep on voting for all of these things because a politician says vote for me and I'm gonna give you this for free I'm going to give you that and it's for only free yeah it's it's amazing it is the same story over and over um yeah got to get everybody on sound money hopefully we get there sooner rather than later yeah um so just just want to put the um the exchange rates into perspective this is um this is actually measuring the strength of the US dollar measured in Argentinian Pesos so the dollar is is

getting stronger exponentially compared to the peso yeah what does that start out at back in the 90s yeah 199 92 it's a absolutely astounding yep and then just for people who want to see what happened to the peso measured in the dollar this is sort of the inverse um but it looks a little different because of these stairstep um devaluations right well we are the this is a linear not a logarithmic chart correct all of these exactly yeah they were both linear so they don't they don't look it's not like the exact same

flipped upside down because they're linear right and so by looking at it this way you get to see the devaluation that the government has done in the past again only possible with the fiat currency yeah they they printed and printed and printed uh from 1990 uh 92 or whenever that first evaluation was uh they kept yeah 91 and they kept on Printing and printing and printing and then in uh 2001 so you know we're we're talking about 10 years of printing and then they have to do and they artificially

manipulated the exchange rates and tried to Peg it and hold it somewhere and until they couldn't any longer because a black market develops uh of exchange rates and uh and the difference between the Arbitrage between the black market and the official exchange rate uh means it means that anybody getting paid in pesos by the year uh 2000 was getting absolutely screwed uh and uh then the government has to acknowledge reality finally and when Once the the market forces them to acknowledge reality

that's when they have to um reverse the theft that they have done from one group and go ahead and steal from another group again yeah it's comical yeah I mean you can uh you can laugh or you can cry and so what might as well laugh you know might as well laugh right well yes it is you're right to point out that this is also very very sad what a government is able to perpetrate against its own population yeah well okay so I just want to keep keep moving here and and look at the Argentina government how how is their

budget um and here's a chart going back to 1999 I think or two 2000 um and when the bars are below zero they're spending more than they make and when the bars are above zero they're actually somewhat disciplined somewhat somewhat living within their means and uh this is basically what almost every government looks like pretty much running deficits every year yeah globally right every government on Earth uh now what's amazing to me is I I don't know what was going on between this is a very

socialistic government has been for many many decades I don't know what was going on from 2004 to 2008 to where they could actually show a budget surplus but somehow they were able to take in more tax revenues to take more from the people than the government was supposedly spending on the people but you know when you look at the number the the uh percentage of the population employed by the government and the government workers never have and until this guy Javier M uh until him they never had to worry about their pay about

their uh getting fired from their job uh you know it was the only secure job that you could get in Argentina was something working for the government which is where you're being paid your your payroll your check is coming from the government pointing a gun at somebody and stealing from them so it's it's all yeah it's it's part of a racket yeah like uh it was in uh one of my videos about the 1929 stock market crash Al Capone quote a quote from Al Capone those stock market guys are

crooked well that's the government anyway let's move on yeah so so this is Argentina it is the most surprising thing about this chart isn't the deficits it's actually the surpluses but anyways um yeah the United States looks pretty similar but even bigger deficits and uh as we mentioned you know I've I've shown many times that those blue bars at the beginning of the graph are just an accounting lie it was it's Creative Accounting and all you have to do is take a look at the na the change in

national debt because um the how much you owe if if you're in debt if you make more than you spend the following year your debt will be less if you spend more than you make the following year your debt will be greater and uh there is no year during those blue bars where our debt contracted it always expanded and so it's it's it's an accounting line and uh it's smoking mirrors and you know I had a um back in I think 2013 or 2014 I had one of my researchers uh go back and uh he could only go back to like 1960 but

you get the budget surplus or deficit and then compare it to the change in national debt and it was a 7 trillion doll lie back when it was 50% of whatever the uh if you add up all of their supposed deficits and surpluses they only cover 50% of the national debt so it was a 50% lie it was amazing s trillion out of 13 trillion I think the uh the uh national debt was 13 trillion back then wow yeah yeah well there's there's two two things I want to finish up with here the first one is you know

what do the balance of trade between Argentina and the US look like because there are some some concerns here or questions that like a poor you know set of economic decisions in one country could affect another and of course that's true ah okay actually I want to let everybody know that this is one that when I found out this was about Argentina I asked you put these in here simply because for the first time since the founding of the United States of America the world is going to do an experiment

uh in Austrian economics and libertarian ideals without a total collapse happening first Argentina is not a completely failed economy with total collapse and Revolution because normally that's where this experiment comes from uh but the United States uh did this experiment and we were really the very first country that was uh founded upon uh free market markets free trade libertarian ideals and what eventually became labeled Austrian economics it didn't really exist back then but that Austrian economics is what you get if

you're going with freedom and free trade it just sort of Austrian economics is what happens it's the starting point and then we developed all these other economic theories uh and and tried other stuff which fiia currency allows but what is the actual cost I I think um so you have this is um the US's uh trade with Argentina and we export 10 billion to them and we import five billion from them uh and uh so what is it actually going to cost us what is the difference uh if this if if this experiment goes

bad and we don't we're no longer able to sell anything to Argentina because they're too poor to buy anything and they don't make anything anymore uh because their economy collapses and so we can't buy anything for them from them what is it going to cost us uh in the United States to allow some place in the world to conduct this Grand experiment that hasn't been conducted you know there are people that as soon as they saw who melee was oh he's a nut he's crazy they can't elect him so there's

people in the United States that just absolutely hate and want to stop this experiment I am grateful for it because I think I see this as an opportunity to see what would happen if we tried this without without us actually trying it and so what is the cost to the United States have you yeah well yeah to your point there's there's two ways we can look at this so if the the economy of Argentina collapses and they can't buy our stuff anymore there's 10 billion worth of EXP ports that we can't sell so

is that a large number is that a small number well let's put in perspective so 10 billion out of 1.6 trillion okay so this is 58s of 1% less than 1% that's a rounding air right so right so if the Argentinian we we would not notice there's no possible way that the US would feel this there would be a couple of uh uh companies that are importing Argentina wine or something like that that that would uh feel it if they're specializing in uh goods from Argentina or actually this is exports to Argentina

so if if they're specializing in something Well there's almost nobody that would be making something in the US that uh would be specializing in only selling to Argentina so yeah so we as far as exports there's no possible way that anybody in the US could even feel this this experiment should it go south yeah so that's exports it's about 58 of 1% it's kind of a rounding error people wouldn't notice it and in terms of imports okay we import about five billion from Argentina yeah maybe some

of it is wine uh so five billion um but you know so what if their economy collapses and we can't buy their stuff anymore well we import we import two and a half trillion two and a half trillion from around around the world compared to five billion from Argentina that's even less even less than the export percentage um that's I probably shouldn't do this in my head but that's 20% of 1% I mean it's less less than a quarter of a percent 20 basis points is what you're talking about then which is

uh uh uh 20 100ths of 1% impossible to feel yeah uh and and much much much less than even a rounding error one of the things that strikes me here is uh the you know we're we're approaching a trillion dollar annual uh Trade Surplus um you know we're at 900 billion in uh annual so and this compounds right pardon yeah this this this compounds this is the balance of trade with the rest of the world gold uh if we were still using gold yes uh International settlement uh when when one country Imports too much like we are

doing right now and you have to pay for it with a fixed currency Supply anything that you can't create out of thin air gold flow would be flowing out of the United States uh to the rest of the world causing the rest of the world's economy to heat up while the United States goes into a deflation and the economy slows down right we buy stuff too much stuff from them there's less currency in the currency Supply we experience deflation our economy slows down but as we go into too much if this

doesn't reverse after a while uh our stuff stuff becomes very cheap for the rest of the world then they started and so under the gold standard the globe would experience these little bubbles happening on different countries around the world but tiny little bubbles that would then reverse and automatically rebalance with the other economies and this is something that we can't get under fiat currency systems um and you know the since because of Euro dollars and because of uh also uh cash a lot of

us cash about half of the dollars that exist exist outside the United States so when Argentina inflates they're inflating almost exclusively internally we saw this huge inflation in the financial markets but people all over the world invest in the US Financial Market not just people in the United States uh we saw you know with low interest rates huge inflation in housing but we didn't see a bunch of inflation in even though they were creating all of this currency uh ever since 2008 we didn't experience major retail inflation

in the United States and uh a large part of that is because when we inflate the the sectors that we were inflating were inflating globally not uh something in the United States but then we sent checks out directly to people that got which created a increasing currency in circulation uh in our own cities and now we've seen massive inflation from it and a h change in velocity uh and uh it's not done yet and the only thing that I mean we can either slow down the economy through a uh big crisis which I think is coming or prices

still have to go up further but we haven't accounted for the immense amount of currency created during Co yeah exactly I totally agree well there's there's just one thing I want to end with um and it it's just kind of like a reminder of you know how did how did we get here how did Argentina get here and it came from a long period of essentially no fiscal discipline running fiscal deficits over and over and over and you know they're not alone we mentioned that the United States is very

similar and most countries around the world have a very similar policy and a similar Trend and the US uh is basically running trillion doll deficits as far as the eye can see yeah this this is a projection looking forward the next 10 years from the OM the Office of Management and budget in the United States and uh this is absolutely horrible yes it is horrifying and so the official government projection is uh that this is horrifying and this is the type of stuff that eventually leads to a collapse of the the currency you know

you look throughout history and you know we're still in the early stages of uh the collapse of the currency but this is what causes it and uh notice also that uh these wild swings start in uh 1971 when we went off of the gold standard it's one of the things that allows the recklessness of all of our Pro politicians and you know we have to blame ourselves as well because we vote for this stuff where you know they present all of these programs and things and we vote for the destruction of our

own currency and our own country uh by by uh doing this we're being sold a bill of goods however uh again I had a researcher back in 2013 or 14 um uh go back and because you there there is an official budget that is uh post posted every year and it's got the deficit uh in it and so they're all available online and you can go back and get them and I think we went back to 1960 and we calculated the difference of the projected budget deficit so these projections all of the dark colored bars

on there that the government is officially projecting out into the future and then we went and got the actual the actual results of what happened so if you go back uh to 19 uh uh 60s projected deficit and then look at the actual deficit and then you compound all of those you can take those bars and you can pretty much calculate that you can extend them by about 50% more than what they are because the budget they always project on the rosy side and here's the problem The Rosy side of the government projections is

horrifying it's projecting a collapse is what it's projecting uh these things eventually need to balance and the only way that this can come back to the that what this does is this is a tax that is either done directly or through inflation but either way it slows down the economy and it hurts uh the average person yeah exactly and you mentioned that this all happened in 1971 when we went off the gold standard and I just want to remind everyone if your country or your government goes off the gold

standard you can still keep yourself and your family on a gold standard so do that and uh study up and that's all I got thanks this was a great video I want to thank everybody for watching and please like And subscribe and hit that notification Bell we'll see you next time hi I just wanted to tell you about gold Silver's 111 oce silver giveaway where you can win win win 111 one 1 oz silver bar one 10 oz silver bar and one 100 oz silver bar so enter today and win