[Video] Inflation Doom Porn

Stacy Summary: Created by @MotherEarth. Check it out!

27 comments on “[Video] Inflation Doom Porn
  1. ispice says:

    pure comedic gold

  2. Rich says:

    Hyperinflation…..when….exactly.

  3. markval says:

    Think this leads to inflation soon? Think again.

    There is more pain to come..

  4. Richard@lattitude30N says:

    tre bien!!!

  5. Mike/Liverpool says:

    Keiser!
    The £ is hitting new highs……Euro/$ falling…….Where my “Iceland on Thames”?

    Mike

  6. Oooh. I neeed a sock or something…

  7. George says:

    giggity goo

  8. UNCHI KUN DA YO!!! says:

    wow I think I need a shower!

  9. M says:

    Nice work!

    I actually have a Zimbabwe $100 billion dollar bill at home. I have used it a couple of times to explain for my children how money works. It’s a great way of showing how fiat currencies work, or DON’T work.

    Keep up the good work!

  10. Dan says:

    That was some good porn

  11. epha says:

    Here is a great explanation of the banking crisis for those of us who are quite new to concepts like sub-prime, Collateralised Debt Obligations etc. in the London Review of Books. : http://www.lrb.co.uk/v31/n10/lanc01_.html

    here’s a quote :
    “The UK and US plans are different, as I’ve said, but at their heart they both show the governments going to tremendous, Basil Fawltyish lengths in order to avoid taking the troubled banks into public ownership. Our governments are prepared to pay for them, but not to take them over.”

  12. Phil says:

    @epha

    Thanks for that excellent article !
    One of the best I’ve read .

    Suggest people take the time to read it ALL !

    Thx once again.

  13. Photoception says:

    When in history has an asset/credit bubble ever been followed by more inflation?

    There is tremendous over-capacity folks.

  14. alister says:

    regarding Australian news for TAM:

    Govt department Tourism Victoria using ‘matchmaking’ to increase tourism to Vic

    “Feeling the man recession in Sydney”

    http://melbourne-match.com/about/video

    (the video of the ‘i’m in finance’ guy down the bottom is quite a reasonable caricature for, not to be too harsh..)

    +

    http://www.news.com.au/heraldsun/story/0,21985,25571901-2862,00.html

  15. Mep says:

    Very nice, Mother Earth!

  16. juergenwahl says:

    This video is somewhat entertaining, but also somewhat wrong-headed.

    There is simply no way that the US is going to experience hyperinflation within the next ten years, if current trends hold. Hyperinflation is defined as an aggregate price increase of 50%, or more, each month. This would equate to an annual rise in prices of 8,550%! The fiat currency would soon attain its intrinsic value of zero, and this particular financial regime would be DOA. Since the US presently holds preeminence in GDP per capita, technology, and has the world’s strongest military, such a collapse is just not in the shuffling of cards now at hand.

    Au contraire, the Baltic Dry Index of global trade is trending upwards and the financial market thermometers, the Ted Spread and LIBOR, are trending downwards. Perhaps some form of recovery is under way. Although a gloom and doom philosophy may be profitable for, and bring fame to the perpetrator, I would rather trade in the direction where changing conditions are pointing.

    All hyperinflations seem to have several constant characteristics: 1) Occurrence of war, revolution, or financial collapse leading to the devastation of the country [the US is not presently anywhere close to such a condition]; 2) A major increase in the money supply to moderate a high budget deficit, the servicing of which crowds out private borrowers from the credit markets, further destabilising the economy; 3) Existence of a weak government which is unwilling or unable to implement necessary reforms [this government is more akin to a steamroller than an invalid]; 4) Avoidance of the “inflationary tax” upon money by holders of currency leading to increased velocity (turnover) of the money supply; and 5) Prices = Money supply * Velocity / Transactions [not exactly the formula, as "deltas" are left out] – a vicious cycle of money supply increases relative to actual productive efforts in the economy plus increased velocity from fearful expectations results in higher inflation which feeds upon itself, bankrupting the middle class, transferring wealth to the elites, and producing a generalised condition of poverty, misery, and destitution.

    The above is somewhat the official viewpoint of the economic profession. However, Hjalmar Schacht, who presided over the finances of the ill-fated Weimar Republic, claimed that the “Great Inflation” was made possible by: 1) Economic devastation from the war; 2) Currency speculators conducting a massive “short” campaign against the Mark; 3) Financing by the banks made available to currency speculators to accommodate their operations; and 4) A very weak government which attempted to maintain employment levels at all costs.

    In my view, should hyperinflation eventually plague the US, it will fly in on the black wings of well-financed currency speculators who are more concerned about their own, personal gain than the welfare of nations.

  17. Mother Earth says:

    Thanks all for the positive feedback, it was nice to (in the process) discover some of the possibilities of freeware like audacity (sound) and virtualdub (video), I hope I don’t get slapped for copyright infringement! ;-)

    @juergenwahl

    If a builder recieved 500.000 USD for building a house (say in 2006), and that house now only extracts 300.000 USD out of the market, the money supply has effectively increased by 200.000 USD. Isn’t that inflation? If Bernanke buys back stuff from the market with newly created dollars, thus directly injecting them into the ‘economy’ , isn’t that the definition of inflation.

    You hint at an interesting point (imho), namely the ubiguitous method of shorting to depress prices to then buy at a lower price. If a government is coopted by corporations, it may start to short its currency above and beyond its primary purpose (paying for necessary projects to the benefit of the population), and by that method strive to gain posession of every last bit of sovereign captial. The so called Cleptocracy. This is what is happening today through the government-banker-corporate cooperation, another guarantee for massive inflation.

    This is what Mugabe did, and it lasted for years until recently the currency was delared dead and payments where made with gold dust. You could almost conclude Zimbabwe has been a laboratory to test human tolerance of wildy abusive regimes.

  18. paul carlander says:

    stacy… shhhhhhhh.

  19. Mini US says:

    That was Great ME.
    It was a fine example of the Max Keiser crescendo, hehe! But seems he wasn’t alone?!?!?!?!

  20. alister says:

    FOr Tuth about markets NZ:

    After bankrupting her state (QLD-credit rating agencies have been beginning to bang on the door etc etc) the leader decides to sell a bunch of state assets in the middle of a global depression … nice idea!

    http://www.news.com.au/couriermail/story/0,23739,25572606-3102,00.html

  21. Plan A) to fight The man…

    Move your money out of the big banks and into small community banks and credit unions…

    http://solari.com/archive/banks/

    Now about Plan B…

  22. If this isn’t a contrarian indicator for the second deflationary wave of credit contraction, I don’t know what is!

    Having said that, Marc Faber is careful not to specify the exact time frame for an eventual hyper-inflation, and his argument is conditional on the continuation of the status quo, aka. “Zimbabwe School of Monetary Policy.” But, as Bob Hoye likes to point out, this credit contraction is likely to be so severe, it will even drive policy makers SANE!

  23. Also, not to rule out hyper-inflation altogether, but the relative size and importance of the US Bond market is an important difference between the US today and Weimar Germany, Argentina or Zimbabwe. I guess time will tell whether the Bond Vigilantes are able to invoke “Nemesis,” the Greek Goddess of Retributive Justice!

    Anyway, great show ;-)

  24. Steve says:

    @Photoception – I have been in the deflation camp but am being heavily swayed by the hyperinflation camp. Check out the following. Assignats sound scarily like CDOs or CDSs. History tends to repeat itself.

    @Max K – I’d be interested to hear your thoughts in comparing modern financial derivatives with assignats.

    The following info is from wikipedia:

    ASSIGNATS

    Assignats were paper money issued by the National Constituent Assembly in France during the French Revolution. The assignats were issued after the confiscation of church properties in 1790 because the government was bankrupt. The government thought that the financial problems could be solved by printing certificates representing the value of church properties. These church lands became known as biens nationaux. Assignats were used to successfully retire a significant portion of the national debt as they were accepted as legitimate payment by domestic and international creditors. Certain precautions not taken concerning their excessive reissue and comingling with general currency in circulation caused hyperinflation.

    Originally meant as bonds, they evolved into a currency used as legal tender. As there was no control over the amount to be printed, the value of the assignats exceeded that of the confiscated properties. This caused massive hyperinflation. In the beginning of 1792, they had lost most of their nominal value.

    This hyperinflation was stirred up by repeated food shortages. Instead of solving the financial problems, the assignats became a catalyst for (food) riots. Instability continued after the abolition of the monarchy, exacerbated by the wars France faced. This situation impeded the implementation of good financial policies that would reduce debts. Bills such as the Maximum Price Act of 1793 aimed to regulate inflation.

    When the Directoire came into power in 1795 the Maximum Price Act was lifted. Hyperinflation reemerged and in the next four years Paris was the stage of yet more riots.

    The inflation was finally solved by Napoleon in 1803 by introducing the franc as the new currency. By this time, the assignats were basically worthless.

  25. Andre G says:

    Great video! I only wish the sound bites weren’t repeated so often. Then it’d be perfect. Love all that gold.

  26. theslavetrader says:

    max your website is a joke; your great though. im sorry bgut this website is bland and is lacking umph. you need mre videos and…it just sucks and i think you know it, better picture maybe

Watch the latest Keiser Reports:

Watch our Google Hangouts: