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 hello everyone welcome to bald guy money I am bald guy and if you haven't been paying attention to the situation in Europe at all it's a real mess first France's government collapsed at the beginning of December and just a couple weeks later on December 16th Germany's government did the same thing to add insult to injury Goldman Sachs is forecasting that Trump tariffs could pull the entire eu's GDP down by 1% wiping out $155 billion in economic production from an all already struggling economy and

this has led many financial and economic news outlets to claim that Europe's economy is doomed to collapse as these latest developments will likely deliver the death blow to an economy that is suffering from the consequences of overregulation and unchecked illegal immigration now there is so much to unpack about what's going on in Europe right now that I would probably have to start an entirely new channel just to cover it all but for the sake of this video I want to zoom in on the world's

third largest economy which is Europe's largest economy and that happens to be Germany and I want to cover exactly how bad things are in Germany right now how I think the solutions they will try to fix the situation will make things worse and impact the prices of gold and silver after that I want to reveal what I think the real problem in Germany is including a warning they got from Donald Trump and before we get into this video's viewer question on the topic of unemployment during hyperin inflation which also

includes some talk about gold and silver by the way I want to tell you all what I think needs to be done for the USA to avoid a German style depression and why it starts with getting the US dollar in order now just before we dive in and again on the backdrop of a very uncertain end of the year I want to encourage everyone who is looking to buy some gold and silver to check out channel Partners Summit medals who now ships internationally they currently have 5 ounces of silver at spot when you use the code new customer which means

you can get silver for under $30 an ounce right now and for those of you looking to get even a part of your existing Ira protected in Precious Metals in 2025 give them a call at the number on the screen they can help you do that the consultation is completely free and I will leave the links to the silver at spot deal as well as the information on their Ira program in the description below but remember that's www.summit.com for everything you need related to gold and silver wealth protection okay so I first mentioned the

political chaos happening in Germany back on December 5th when I made a post about it on X after the French government had already collapsed and I got a reply from somebody who essentially said there's no chaos here regards from Germany well 12 Days Later their government in fact collapsed and now they will have an election in February 2025 so as we get into this I just want to say for everybody out there watching that I'm not talking about a collapse in Germany because I'm trying to be Sensational or exaggerate for

clicks the reason I'm covering this is because when we compare the development of Germany's economy to its G7 peers you can see that in Q3 of 2024 so that's July August September of this year the German economy is basically at a standstill at 0.1% growth versus the last 3 months of 2019 which was just before the world's economy shut down to due to c19 so essentially what this is saying is that where other G7 countries have grown their economies post c19 after c19 despite having their own

struggles by the way the German economy has gone literally nowhere and that's even more visible when we look at their quarterly GDP development with four of the last eight quarters having negative GDP growth and considering the fact that the growing quarters do not offset the losses from the losing quarters it's no stretch of the imagination to say that this is confirmation their economy has been in real recession since 2022 which by the way is when we started to see the unemployment rate rise in Germany and it

has now been pushed up to a point where it is only 0.3 percentage points away from hitting the c19 pandemic high so almost equal to the level today as where it was when the entire economy was shut down and this has delivered a major setback to the German people when it comes to the quality of their life as GDP per capita for 2024 is set to go down for the second year in a row to $427 per person which is approaching 2017 levels indicating that within Germany no progress has been made with respect to living standards for the

people there over the last 8 years now Germany with the help of the European Central Bank is going to try to fight this downturn and how they're going to try to do that is by using the same methods all central banks seem to be using these days to fight economic downturn and that's lower interest rates and money Printing and with all those extra Euros entering the system we've already started to see inflation ticking up again in fact it's gone up two months in a row now within the Euro Zone from

1.7% year-over-year in September to 2.2% according to the latest November reading meaning no matter which direction the US dollar go goes in versus the Euro up or down I expect to see a new all-time high in the price of gold next year when measured in euros dollars too by the way as well as higher prices for silver near the end of 2025 so to all my viewers around the world watching this buckle up for that because this is coming to a neighborhood near you and the reason things will only get worse is because

money printing isn't a real solution to the problem that Germany has just like it's not a solution to any problem that any country country has it's just a way of kicking the can down the road because Germany's problems are fundamental in nature and started with the creation of the European Union along with the Euro Zone currency the Euro yes just like NAFTA was supposed to kick off a major acceleration in American manufacturing the creation of the European Union and its eurocurrency was supposed to make

German Goods more accessible for people around the continent and supercharge innovation in the country by allowing for the free movement of people between countries meaning the best and brightest would of course seek employment in Germany to supercharge The Innovation within their economy but like NAFTA which is the North American free trade agreement for those of you who are not familiar with what that is it was shortsighted and in the years since the c19 pandemic cheers of how great the union is have been replaced by another

sound a giant sucking sound as Ross perau once put it because as with most bureaucratic organizations it seems the sole purpose of the European Union's existence has changed from making the people's lives better to passing regulations and growing its sphere of influence which means bringing in more countries which are only happy to join because of all the Investments the European Union promises to make in those countries when they join at the expense by the way of taxpayers in wealthier

countries like Germany who have funded major infrastructural improvements in in countries like Poland and Romania namely highways which have allowed them to develop their manufacturing sectors and made exporting goods from their countries much easier than it used to be with their crumbling communist infrastructures the only issue with that is when we look at the top exports by category per country there is a lot of overlap there which means Investments by the German people in the infrastructures

of Romania and Poland have had a major predictable but unintended consequence instead of lifting people up in those countries and making it easier for them to afford German exports and make it easier for them to access German Goods what it has done is driven manufacturing out of Germany along with the expert knowhow to cheaper countries like Poland and Romania and given those countries full access to German Innovation as well as their Market thanks to EU laws and amazing infrastructural Investments

making it easy for example for polish and Romanian Goods to be delivered to Germany which as you can see in this chart here is the main destination for Romanian produced automobiles I assume under the brand data which is a big Romanian car brand which has grown its sales since the 2007 entrance of Romania to the EU from about 76,000 cars per year to nearly half a million today and I'm not sure that's exactly what the people at Volkswagen had in mind when these new countries joined the European

Union back in 2007 now apart from directly funding their competition Germany has also made it extremely difficult for themselves when it comes to powering their massive manufacturing driven economy because as they phased out clean and efficient nuclear power and put heavy regulations on coal which already had technology in place to generate energy in a reasonably clean way they attempted to replace it all with green energy with only minor success UL imately becoming dependent on Russian gas something that Donald Trump

warned them about during his first presidency and here is a clip of him doing that but Germany is totally controlled by Russia because they will getting from 60 to 70% of their energy from Russia and a new Pipeline and you tell me if that's appropriate because I think it's not and I think it's a very bad thing for NATO and I don't think it should have happened so in a nutshell over the last 20 years or so Germany has failed to defend the one that made it special and arguably important on the

world stage and that is its manufacturing industry which is as you can see here in terminal decline they gave up critical energy sources that fueled it in hopes that others would follow China and India have not followed by the way all while funding direct internal competitors like Poland and Romania which have enjoyed by the way GDP growth and an improving quality of life thanks to grow growing industry and Manufacturing there so looking at what's happened in Germany and the collapse of its economy I'd say the two biggest

Lessons Learned are that the United States first needs to deregulate and secondly needs to protect the status of the US dollar as the world's Reserve currency if it wants to succeed because Germany might have had a chance against foreign competition if it had simply let the manufacturing industry do its thing the factories were already there the knowledge was already there and the infrastructure was already there and instead of taxing people to subsidize competitors they could have allowed people to keep that money and use it to

consume the Homegrown german-made products instead of having to seek cheaper foreign Alternatives something that also applies to the United States which over the past four years has seemingly wanted to tax and regulate every single successful thing it's doing out of existence while taxing the people more and more via direct taxes and infl which is the silent tax and then spending the proceeds of those taxes in other countries running up a huge debt in the process and leaving creditors wondering if the USA will be able to pay

this debt back now a small door has opened a light that can save the economy and the US dollar from the same fate that the German economy has suffered Saudi Arabia seems ready to play ball as it looks like they're ready to walk away from their bricks membership as they suggested they might be back in 2023 and India also seems Keen to cooperate with the United States as they don't exactly want to hand over the power of the world's Reserve currency over to China all that's needed to

capitalize on this is for the incoming Administration to walk through the door to walk towards the light and as things stand today I'm hopeful for the United States but ultimately pessimistic because as much as the relationships can be repaired and I think the incoming Administration Will Repair those Rel relationships what worries me most is the country's ability to reduce its massive spending especially when I'm hearing crazy ideas like spending a trillion dollars the country doesn't

have buying Greenland and it's precisely why I won't be giving up my gold and silver for US Dollars anytime soon so with that covered it's now time to move on to this video's viewer question and remember if you have a question on anything I've covered in this video please leave it in the comments section below and I just may select it to appear in my next video and this week's question comes from Thomas Kaiser the Kaiser and Thomas wants to know what happens to a person's employment status

during hyperinflation and he goes on to say that people will not want to exchange their valuable labor for worthless paper very true and wants to know if this causes higher unemployment via temporary layoffs and I'll add on to what Thomas asked there and say even the possibility of company shutdowns as a result of hyperinflation now of course of course this greatly depends on how the economy is structured and how skilled the labor force is but because the majority of my viewers are in the USA Canada and UK I

think it makes sense to look at another developed economy that has gone through this exact situation over the last few years and that is one of my favorite examples to look at my regular viewers viewers will know that which is turkey and why I like to look at Turkey is because I've done business there many times I know the country very well it has a robust Manufacturing and industrial economy of course apart from its large tourist base economy and as you can see in the chart here they have experienced extremely high levels of

inflation for years with the situation clearly taking a turn for the worst in late 2021 and early 2022 as inflation went up as high as 85% year-over-year in October 2022 and has remained elevated since with readings as high as 76% year over-year in May 2024 and 47% in the latest November reading inflation in turkey has been bad it remains bad and it's precisely why when I went there back in August most Merchants wanted either US Dollars British pounds or Euros in exchange for their goods and

services because as much as we like to trash those currencies for being toilet paper I even did it on X a couple days ago they are the cleanest shirts in a very very dirty collection of soiled laundry and I'll cover what they're doing with that money to protect it in a moment but to answer the first part of Thomas's question on how this real situation of hyperinflation at least according to my definition of hyperinflation has impacted employment in the country the reality is the opposite of what Thomas expected because

as you can see here the unemployment rate in Turkey is lower today after massive waves of inflation than it was pre c19 when inflation levels were lower in comparison to where they are now and although I take this data with a grain of salt because economic conditions have forced some Turks to seek employment in other countries there is no doubt that as the L has become less valuable going from $1 us equaling 2.66 Turkish l in January 2015 to1 Us doll now equaling more than 35 Turkish L today it has made

traveling there cheaper and has made their exports cheaper and you can really see the impact of that on this chart here with how their exports valued in US Dollars increased significantly as inflation ravaged the country but if hyperinflation doesn't necessarily result in Rising unemployment what happens because clearly the people of turkey are working and they are being given something in exchange for their labor well the answer to that question is they are still receiving Turkish L they're just receiving more of them and

that is what happens in such a situation with the only caveat being as I spoke about in last week's video where I talked about the great taking the fact that despite official statistics suggesting that people are making more money today the reality in Turkey is the same reality as in the USA where real wages are not keeping Pace with inflation and household income per capita according to neutral data source cic shows a significant Decline and even though the official minimum wage measured in Turkish L has gone up

significantly and I think this is just another slice of proof that reveals the bias that exists in official government statistics that said people are fighting back against this and apart from keeping money saved in Euros or US Dollars many Turks are protecting the purchasing power of the currency they're earning in gold and silver and you can see here that gold is up nearly 3,300 over the last 10 years when measured in Turkish L and silver is up more than 2,700 when measured in Turkish L showing

us that over the past 10 years both have adequately protected Turks against inflation giving them an an alternative to the inflating US dollar as a safe haven so Thomas I hope that answers your question with that said that's it for this video I'm wishing you all a very happy week ahead if you're celebrating the New Year please remember to keep it safe be responsible and if you enjoy enjoyed this content please remember to leave a like and share this with people who you think need to hear this message

as I end all of my videos I want to say to you all to remember to take care of yourselves and take care of each other wishing you all a fantastic New Year a happy New Year goodbye and see you in the next video