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 even on some of the old Continental Currency it says that counterfeiting is an an offense punishable by death on it because they knew that counterfeiting is theft from everybody if you create new currency that has no work behind it to create it for it to come into existence uh then it gets its purchasing power by stealing it from all other units of currency and so the Federal Reserve is just based on fraud theft and enslavement because they're buying us treasuries which you have to work in the

future to pay the principal and the interest on they bought them by creating currency from nothing and then where they spend it and it usually gets spent into the financial system uh the people that are uh benefiting from that wealth transfer that they cause don't even realize that uh that all of this wealth was stolen from somebody [Music] else hi I want to welcome everybody to this video and I've got Alan hiber with me once again Allan how are you doing I'm great Mike thanks how are you good

so you've put together um a bunch of uh different uh tweets and some articles and so on uh about uh the economy the government show me what you got let's go over some of this yeah sure well first I want to start with a tweet from Tim Draper um he's got a section here on government math where he talks about the tax revenue the budget the debt the national debt and budget cuts and these are really big numbers it's hard to wrap your brain around it so now let's remove 8 zos and pretend it's a household

budget this is much easier so imagine an annual income of 21,000 okay income of 21,000 right let me stop you right here for just a second so because I've been presenting this in this format I think going all the way back to like 2005 where but back then you didn't remove eight zeros you removed like uh six and then a decade later it was seven now we're removing eight zeros to bring this down to where it you can comprehend it as if this was your own family can you run your own family like

this it's hilarious but but okay now go ahead start over now let's remove eight zeros and pretend it's a household budget okay all right yeah so we're remove eight zeros soon it'll be nine but anyways let's pretend it's a household budget imagine an income of 21,000 a year okay but you're spending 38,000 so you're spending significantly more so you're basically racking up debt on the credit card of $116,000 per year right with no end in sight and the outstanding balance on your credit card

is already close to $200,000 $200,000 and you're not paying down $20,000 income right $20,000 you're not paying it down you're increasing it year after year with no end in sight and you get together and you say you know what we have to spend a little bit less let's do a family budget cut of [Laughter] $385 this is just it everything is out of control uh and there's so many different factors that like we were just talking earlier uh that are coming together right now and we'll do a video

on them in the future but there are factors coming together over just the next couple of months that are going to change the trajectory of everything uh so uh um i' I've just never seen anything like this and uh so the government is out of control it's crazy we've got this inflation creation act oh that was re inflation reduction right yeah inflation reduction act uh that is supposed to reduce uh inflation by creating currency and spending it so okay let's let's move on okay next

thing next thing I wanted to show was on the same theme um this is an interview that Stanley dren Miller did where he did not speak so highly of Janet Yellen in fact quite the opposite he spoke lowly of her arguing that she might be um the the worst treasury secretary in the history of the position if I literally think if you go back to Alexander Hamilton it was the biggest blunder in the history of the treasury I have no idea why she has not been called out on this she has no right to still be

in that job yeah you know I watched that video and he is just he nailed it right on the head I highly recommend everybody you know search around for this drunken Miller video and uh and give it a watch it's only two minutes long and it's worth your time yeah definitely um and there's also you know an article that goes with this um the biggest blunder in treasury history and I wanted to pull out a couple quotes from it the first one is is this Janet Yellen I guess because political myopia or whatever was

issuing twoyear two-year um treasury bonds at 15 basis points when she could have issued 10 years at 70 basis points or 30 years at 180 basis points he said I literally think if you go back to Alexander Hamilton it is the biggest blunder in the history of the treasury I have no idea why she has not been called out on this she has no right to still be in that job uh absolutely true hi I just wanted to take a moment and thank you for subscribing and mention that if you'd like to help our Channel please

consider my company goldsilver.com the next time you buy precious metals we're one of the most trusted names in the industry our prices are Sharp delivery is fast and we have an insiders program where you find out exactly what I'm doing with my own Investments thanks for making goldsilver.com your dealer and now back to the video and you know um the two years that she was issuing back when uh the interest rates were at the lowest in like the last 90 years I mean you got to go back to the Great

Depression to find interest rates this low and that that we had just a couple of years ago and now it's two years later and these have to be uh uh basically we've got to it's like refinancing your house you got to refinance but instead of it uh doing it when the FED funds rate is at one tenth of 1% the FED F funds rate is now uh 5.33 so how many times higher is that one tenth of 1% to 5.33 uh 53 times it's it's huge yeah and so okay yeah 50 times the bre so she has she has no

right to be in this job but you know uh trans inflation is transitory and we need two weeks to flatten the curve oh wait a minute that part was said by somebody yeah well I think it's h this word right here political I think political is the the operative word here it's not necessarily um you know prudent or or in the public good so um anyways there there is there is one thing I wanted to touch on here there's an article why Janet Yellen isn't worried about the 33 trillion dollar national

debt and okay and there's a good quote from in here she says the statistic or metric that I look at most most often to judge our fiscal course is net interest as a share of GDP okay so and then she says and even with the the rise we have seen in interest rates that remains at a very reasonable level okay so net interest as a share of GDP so let's look at those two things and see what the trajectory is like this is interest payments it's exploding it's absolutely exploding lately and I know Mike that you wanted

to pull this up on your screen so you can talk a little bit more about it yeah so uh Dan if you could share my screen um this is the uh federal government current expenditures interest payments so just the interest payments broken broken out and you can see here that it started to explode in 2021 but we actually didn't start raising the uh interest rates until it would be second quarter of 2022 when when you because it was March was the first of 2022 was the first interest rate rise and then it

really takes off and starts going vertical and we're getting up to where it's uh going to be a trillion dollars a year here of interest on the national debt but but um I wanted to look at this in a little bit more depth and she's talking about as a percentage of gross domestic products so I took the last chart divided it by GDP and this makes it look like she's right that this isn't too bad that this is manageable because look at where we were back here in the 80s but then I dug

a little bit deeper I knew we were going to be talking about this I didn't know uh you know all of the quotes and everything else I knew we were just going to be talking about interest payments as a percentage percentage of GDP that was what the topic was after watching Stanley drunken Miller uh and so why was this High uh it starts off here in Q3 of 77 is when it starts like going vertical and uh it it doesn't finish Rising until 85 but it doesn't you know it it makes this Peak from 82

to 86 actually the end of 81 so from from the end of 81 until 1996 I'm sorry and it goes back down so that's a 15year period where interest was taking a very large percentage of the economy so what was going on back then well in 77 when it started Rising the national debt was only 33% of 13d the size of the economy and then it went down to 31% by 1981 so remember that in 1981 is when we started to grow the debt quicker than the economy when this is descending we're always going deeper

into debt but what's Happening Here is the economy is growing faster than uh how the economy is growing faster than the politicians can spend it so we're still going deeper in debt but they're just not able to keep up uh their level of spending to uh make us deeper in debt as a percentage of our income and so here and I want to point out this is during the Reagan Era and uh you know the Republicans are always arguing for smaller government less taxes uh uh and here is where the expenditures of uh and then we went

after Reagan it was uh Bush senior and uh so this huge increase of you know it's it's not a party thing it's a political thing coupled with demographics age groups and so on uh and but this goes level to 1996 and then starts to fall so it's in 1996 that we start growing the economy faster than the politicians can spend it again so the economy is growing faster than the debt so let's go back to this chart and see what's happening in 77 this exploded there's one other thing

that was happening in 77 uh interest rates 1977 7677 interest rates start to go way up from under 5% to uh 19.85% here and they peak in 1980 the end of 1980 is when it Peaks and then they fall dramatically from 80 and all the way down into uh you know you'll see when I go back to that interest as a percentage of GDP it starts to rise in this area but it doesn't fall it plateaus from 81 all the way to 96 six it plateaus and then starts falling so uh and here is the graph I'm talking about so when interest

rates started to rise from 77 to Q4 of 81 I believe it was that's where interest rates peaked and this is just re so all of the debt that was refinanced during this interest rate rise and while interest rates were fairly high and then growing the amount of debt uh faster than the GDP which is what is happening right now kept us at these very high levels where interest was a huge burden all the way to 1996 where interest rates during this period of time were falling precipitously I mean it was uh it it was

huge the amount that the interest rates fell from uh 22% in 19 1980 down to 1993 and four here we're talking about 2.85% so it fell by almost 20% from 22 point something 22% so it fell 19% basically out of 22 but the the debt as a percentage of GDP haunted us for another 15 years because we were growing the national debt the the amount that we're paying on even though the interest was going down the debt was going up faster than the economy was going the politicians were figuring out a way to spend it faster

than the economy could grow and so um that is you know now we're doing these rate increases this is you know basically say call that if you if you say this is 120% and this is 30% that's one it used to be one quarter it's four times larger now the debt to GDP is four times larger and we're going through these rate Rises the rate Rises you know in 77 through 81 was with the debt to GDP down here as practically nothing the economy was big the politicians uh hadn't been able to

keep up their spending with the growth of the economy but you look at what is happening now and we just passed this uh inflation creation act and uh and and now when the next Crisis happens which I feel is just right around the corner we're going to make a video on this in the future because of all the factors that are converging to become the trigger this should happen early next year to mid next year we should see a crisis unfold and uh it's going to start from these levels and then the government is going

to there you can see that what the government and the federal deserve does to save us they create currency they drop rates to zero they start buying up uh all of our future taxation uh buying up us treasuries and our future mortgage payments buying up Mor mortgage back Securities uh and the federal government comes up with all these emergency spending Maneuvers and sends out checks to everybody and uh uh all of that so uh I believe that you can't um fix this through the methods that we know that the Federal

Reserve and the government are going to do they we know what their act is we know uh what their modus operand is and so I'm going to turn this back over to you now uh so yeah I I I want to pick up with the chart you were just showing and I have a couple more quick quotes one from Dr Miller and one from yell uh and so if we just look at this chart of interest payments to GDP uh we're about three and a half percent right now so keep that in mind three and a half percent so when was the last time that

was updated that was probably the Q2 what does it say Q3 Q3 of this year so actually just pretty recent yeah so three and a half% so Dr and Miller in that in that interview he said when the debt rolls over by 2030 3 so 10 years from now interest expense is going to be 4 and a half% of GDP if rates are where they are now by 2043 so 20 years it sounds like a long time but it's really not this is that 15year delay that I'm talking about where uh if you keep on spending into this we end up with this

as a burden for years and years and years to come so go ahead I'm sorry yeah exactly so so in 20 years which really isn't that long it's it's one generation interest expense as a percentage of GDP will be 7% so hang on 7% if we look at this chart the the the top of it here is 5 percent we we've never been at 7% before only 5% and this chart only goes back to about 1947 but I'm pretty sure may maybe during uh World War II maybe for like a year or two but it's if it happened it

certainly wasn't for a long period of time um so yeah this is this is going to be record breaking by a lot and again with no end in sight and that 7% of GDP is over 100% of of discretionary spending 144% of all discretionary spending so we we can't afford that right yeah I think in that um that video uh he did say that uh that they're telling us that there won't be any um uh budget cuts for the uh the mandatory the the social programs that are part of the mandatory spending and which is pretty

much and he says they're lying to you it's impossible 144% doesn't if if you've got mandatory spending uh that 44% has to come out of the mandatory they've got they've got to uh yeah so bud cut so far back to the first tweet $385 when you're you know 200 Grand in the hole and and growing at 16 Grand a year you can't you can't cut $400 and expect that to make a difference yet that's where we are that's what we're doing and just and that's where we're going to

continue doing I mean yeah okay yeah exactly so um I I do want to present a couple quotes from Janny yell and she did sort of address this um but first just one more um voice of reason maybe some critics have gone a step further in their warnings about the potential impact of an increasingly indebted US Government Mark SP spitznagle founder of the hedge fund un universa Investments told fortune in August that we're living through the greatest credit bubble in human history we've heard people call it

this before it's it's really hard to say that that's wrong it is absolutely the greatest credit bubble in human history and he said we've never seen anything like this level of total debt and leverage in the system it's an experiment you know it's the first time it's happened we do know that credit bubbles have to pop we don't know when but we know that they have to so he's saying he's saying it's a mathematical certainty we know it has to pop it's

only a matter of time we can't predict when but we know the future gets here eventually the future gets here eventually we can't hide from it however we get people we get people in charge people running the show that seem to be oblivious of the future they only focus on the present moment and we've got two quotes from Janet Yellen that summarize that Yellen did admit on Monday that moving forward the federal government will need to quote unquote make sure to keep deficits under control otherwise

the national debt that could become an issue maybe someday eventually I mean this is absurd and and she said something very similar um she added uh uh certainly greater deficit reduction is possible the president has proposed a series of measures that would reduce our deficits over time while investing in the economy and this is something we need to do going forward this is such a this is such a non-answer it's like oh someone else and this case it's the President right but no matter who gives

the no matter which politician gives these quotes they're always saying oh someone else is going to do this someone else in the future maybe someday look I I don't know I don't know about you but I'm not too optimistic that this is going to end well I don't have a lot of faith in our leadership regardless of political party that's just my take right right uh you know uh whenever you take uh when when they do deficit spending or when they do direct taxation and there's a great video from uh Milton

fredman on this that will cover some other time uh but basically you end up paying for it you either if they do deficit spending and they print the currency to cover it uh then uh you either pay for it through borrowing or inflation one or the other it's got to be paid back everybody pays for this and so they're taking that out of the economy they're running it through the system of all of these blood sucking bureaucrats that do not produce anything that you would right want to you'd have

to be insane out of your mind to uh choose the thing I mean next time you are sitting in traffic going nowhere and you're late for something think about the service you're buying from the US government because that's what you're doing you're paying them for this service uh and it's it's they it's very very inefficient so taking any currency out of the real economy and you do that whether you're actually doing doing it through taxation or deficit spending or borrowing it all ends up coming out of

the real economy that entrepreneurs business owners are uh creating uh and so uh it the government spending can't be an answer or the USSR would have worked yes exactly and uh so when I think about you you know what's going on here it's it's tempting to think oh that's a problem for the government to deal with I'm just going to run my own person life and and they can deal with their own problem but the reality is the government problem is our problem like you and I and every taxpayer we're the

ones who are going to pay for that like you said either through taxes or through inflation and of course it'll be our children and grandchildren and so on so right and it's not only pay the the inefficient service that they provide but it's also in between that inefficient service and you there's a whole bunch of people that have to get paid in government that once they take it from you they think it's theirs and they get to uh decide that they're going to send some of it to this country for

for Aid or for arms or that they're going to uh give it to this group of people because they're not as well off as you are well the people that are well off most of them did it through a bunch of hard work uh and the uh the people that are you know I live in a uh uh a touristy area of Puerto Rico but there are uh there's government housing just a couple miles down the street and you know I go to the grocery store and I see people buying $2 $300 worth of groceries they slide a card through and which is a

snap card and then they give the uh the uh girl at the checkout counter uh a $5 bill and get change back for the items that snap doesn't cover and so they're living in Free Housing uh and then they have a cash job on the side all these people do something for cash on the side that uh here it's it's very popular to get coupons they call it which is the same thing as food stamps or the snap program and then you get whatever you can out of the government and they think that it's the government

giving it to them because that's the way the politicians always sound so magnanimous vote for me I'm going to give you this I'm going to give you that the politic has to hold a gun to somebody else's head and extract that wealth out of him and that person was uh creating a product or service efficiently and then selling it directly to the public without the chain of bureaucracy in the middle yeah well I definitely want to end with something in the spirit of uh being generous not just

being generous with other people's money but being generous with with what we ourselves can give to other people it is a meme of the day these kids think they're getting candy tonight when I'm really passing out 15 hours of Ron Paul explaining why we need to audit the FED yeah except that should say End the Fed yes you know Ron Paul also wants to End the Fed I it is a um you know in when the United States started uh even on some of the old Continental Currency it says that counterfeiting is an an

offense punishable by Death MH on it because they knew that counterfeiting is theft from everybody if you create new currency that has no work behind it to create it for it to come into existence uh then it gets its purchasing power by stealing it from all other units of currency and so the Federal Reserve is just based on fraud theft and enslavement because they're buying us treasuries which you have to work in the future to pay the principal and the interest on they bought them by creating

currency from nothing and then where they spend it and it usually gets spent into the financial system uh the people that are uh benefiting from that wealth transfer that they cause don't even realize that uh that all of this wealth was stolen from somebody else and so we we live under this very evil corrupt uh Financial system and I do want to encourage if if people want to understand this part of it better go to G GSR 21 and read chapter four of the book alen and I put a lot of work into trying to explain how all of this works

and where all of the actual purchasing power comes from it comes from stealing it from you whether it's the government stealing it from you directly or whether it's the banking system or the Federal Reserve creating new currency that didn't exist before you're the one footing the bill so anything else you wanted to cover alen or is that it that's that's it Mike okay I want to thank everybody for watching thank you Alan and we'll see you all next time smash that like And subscribe see you

later thanks for watching but this is by no means the whole story if you want the full story including my free online only chapters and companion videos there's a wealth of information at gsr2 thanks