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 i am getting prepared for a freezing of the global economy in which case there will be a period of time where credit cards don't work they're going to be scrambling trying to figure out what to do in the last video we saw that a collapse in real estate might be the event that brings about the next great global financial crisis in this video we'll explore whether or not the severity of the crash will be enough to bring down the world monetary system so buckle up uh it's time to prepare and get ready the best we can

like i keep on saying you can only play the hand that you're dealt and so all i'm doing is trying to inform everybody and protect as many people as possible so in this first article here u.s small businesses face mass closures without more pandemic aid and what this article is talking about is that for most businesses the uh paycheck protection plan has already been exhausted so the uh bailout the loans that they got from the government uh for the the under the cares act the aid that's

already run out and now these businesses are facing do they have to close or not and it also talks about how all of the consumers have cut back on their spending so a lot of businesses are down by one-third or more and having to do further layoffs then we move on to this bloomberg opinion article think real yields can't go lower think again forget about tapering the economy may need another 12 trillion of asset purchases just to keep it ticking over so just to keep it ticking over says we've got an economy on life

support this is in critical condition in the hospital on life support and it may need another 12 trillion of asset purchases and i just every time i read this about asset purchases the federal reserve gave counterfeiting a fancy name the way they do it they counterfeit trillions of dollars into existence and they buy something with it to get it into circulation that's the asset purchases and so even this author thinks that it's okay for the federal reserve to counterfeit 12 trillion dollars into

existence and fraudulently uh purchase 12 trillion dollars worth of stuff that's from the private sector you know they're purchasing uh bonds and mortgage-backed securities and stuff that uh private investors or brokerage houses are holding and that gets it into the economy uh but the morality of this this is a crime these people should be going to jail for this but anyway going further down into the article we see that there is a tool on the fed the cleveland fed's website where you

can plug in a bunch of different factors and get different projections for inflation unemployment and see what various monetary policy rules would spit out for future interest rates and with unemployment high and inflation low it says that the results are grim even public pre even the public projections of the fed's own governors so the federal reserve board of governors imply that an effective fed's fund rate of minus five percent is what's needed to keep the economy going minus five percent now the fed funds

rate this is the inter-bank lending rate basically when you're talking about federal reserve funds rate and so this is the rate at the end of the day all of the banks have to lend and borrow to each other to stay in business that's just the way banking is and what we're talking about here is one bank saying to another loan me a billion dollars and i'll only charge you five percent for loaning it to me i'll only charge you five percent for taking the risk that i might not be able

to pay you the billion back you know that that i might have a problem on my balance sheet and uh we might go uh you know into default in practice there is no way nominal interest rates will be set that low set that low as being set that low by the federal reserve and the likelihood is instead that we will receive ever larger doses of quantitative easing that's currency printing that's asset purchases that's counterfeiting quantitative easing is another fancy term for expanding the currency

supply by counterfeiting currency into existence and buying stuff further math from the economist reveals that each 100 billion dollars in qe is equivalent to a rate cut of about three basis points now a basis point is one one hundredth of a percent so uh three basis points uh on a a hundred uh if if you take a trillion dollars that would be thirty basis points or about a third of a percent so that yields a ballpark estimate that another 12 trillion well actually to reach 5 would take about 15 trillion

in asset purchases will be needed just to keep the economy ticking over until somehow the break imposed by the pandemic can be lifted so this will get us through the crisis another 12 or 15 trillion dollars of currency creation and theft by the world's central banks by the federal reserve this is 12 trillion by the fed is what they're talking about to keep the u.s economy ticking over to keep it on that life support without dying massive inflation may be coming because the u.s government has cornered

itself into a fiscal end game years of deficit spending has made monetary policy a slave to fiscal policy now uh monetary policy is what the federal reserve says those are the decisions the federal reserve makes on how much currency to create what interest rates will be fiscal policy is what the government is government does the government decides that they're going to spend an extra trillion dollars like they they're uh you know they're deciding either right now or they've already decided i haven't followed it

uh lately but there was another trillion dollars spending package coming and uh when that happens the fed's balance sheet over the next couple months will go from the 7 trillion to 8 trillion in the next couple of months but then we've got that extra 12 trillion on top of it making a total of 20 trillion and what's interesting is deutsche bank last week projected that over the next couple of years the fed's balance sheet will go to 20 trillion so monetary policy is now a slave to fiscal

policy so whatever the government decides the uh federal reserve has to supply that's what that is saying and if we go further down into this article at the very end of it it says since the invention of money this has happened to all of the world's super economies and many of the minor ones rome spain germany the united states and next the u.s in every case the outcome was the same the country's currency became less attractive as a reserve currency and the country's economic prominence faded

in every case the fault traces to a single source the inability of politicians to constrain government and that's really where all of this comes from is is politicians promising more than they can deliver and they never save for a rainy day they dug us the all the politicians dug us into a pit so deep that when uh the pandemic came a crisis like that they don't save for a rainy day so they can't survive a rainy day we're in this pit the rain causes the earth to become unstable and turn to mud

and everything collapses in on top of us uh the great ludwig von mises said there is no means of avoiding the financial collapse of a boom brought about by credit expansion the alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved and this is where we're headed the total catastrophe of the currency system involved i am getting prepared for a freezing of the global economy in which

case there will be a period of time where credit cards don't work they're going to be scrambling trying to figure out what to do massive currency creation is the only thing they can do and the massive currency creation eventually ends in hyperinflation and i've got a couple of analogies that i came up with here and sayings uh one is that the value of the dollar will be moving away from us so fast that it will actually become red-shifted now not everybody is going to get that but when something when a galaxy is

traveling away from us very very fast it becomes red shifted and the other is the only thing faster than a speed of light is the loss of purchasing power of a fiat currency at the end of a hyperinflation i want to thank you very much for listening we'll see you next time