How the US will Inflate its Debt Away (and you can too)

TIMECODES
0:00 Video Overview
1:48 Debt to GDP
5:42 Massive Deleveraging
11:27 This Changes the Rules of Investing

Important Links:

Affiliates & Partners:

Socials @HeresyFinancial

I am not a CPA, attorney, or licensed financial advisor and the information in these videos shall not be construed as tax, legal, or financial advice from a qualified perspective. Linked items may create a financial benefit for Heresy Financial.

[christycollins]

Okay- as someone who has been in SALES for nearly 30 years, I can say that he’s dead wrong on EVERYTHING he just said on sales. DO NOT quit your day job and jump into a sales position. 99% of people are absolutely NOT cut out for sales or commission based jobs. You have to have an entrepreneurial mindset to get into sales & be willing to spend years building your base & skills depending on what type of sales you’re in. It’s a brutal, cut throat industry & the uncertainty just isn’t for everyone. I love it. I’ve had companies competing to hire me since I was 18, & I would still caution against it. We’ve seen EVERY industry cut their spending by 1/2 this year. That cuts your paycheck by 1/2, too. It eliminates younger reps who can’t ride it out. It is NOT a get rich quick scheme & anyone who has done it for decades will tell you that. This guy is just spewing advice on something he is theorizing about, which is extremely irresponsible.

[SKBottom]

You can't have 300 Million salespeople. Somebody has to do the work.

[douglaseuritt]

In 1945 there wasn't a competitor waiting in the wings to challenge the dollar (BRICS) and most of our wealth generation came from manufacturing instead of moving various forms of paper around. Comparing today to the circumstances of the mid 1940s is a seriously flawed perspective.

[tomdrummy]

You can’t inflate the debt away when you continually overspend in insane amounts.

[jeffreymarshall]

Not gonna happen the way it did in post WW2. After WW2, the USA had a virtual global monopoly of world industrial output for several decades. That made it much easier to grow our way out of the problem. That’s just not where the country is today. Sure, high inflation will be part of the current formula just it will be stagflation. Ugly times ahead.

[mr.g]

Adding $1 trillion every 100 calendar days. This is going to end badly.

[laurelharper]

Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. <It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.

[dmonty]

The problem with this theory is that the US no longer produces and has shrinking GDP.

[AdventureIndiana]

To say “we’ve been here before” does not mean we are not in real trouble. Look at who is in government now vs then. We are in trouble, real trouble.

[philmarsh]

It's thermodynamically impossible to get out of debt without having someone pay. Inflation is a tax. The worst form of taxation because it disrupts market pricing.

[delbomb]

"go into sales" I'd rather die...

[edwardvahlin]

Sales only happens if there are customers.

[elmateo]

Don't go into sales. Learn a trade that provides something people consider vital, then you can name your price and as inflation increases your price can just go up. People may be able to put off buying a new car if the economy is bad, but when their toilet is backed up and flooding the house they'll find a way to pay somebody to fix it.

[captainyesterday]

I don't understand any of this. But a thought crawls in my mind that we are all slaves to the worthless money.

[Bleachdemon]

The difference though is that all of our manufacturing and jobs were here in the 1940s. That’s not the case anymore, this could turn out that the rich hyper elite don’t want to spend the money and we get stuck. Not saying that’s what will happened but we’ve also seen that companies don’t care about their workers

[GrantDWilliams]

Keynesians are famous for seeing deflation for all of the Great Depression and concluding that deflation is bad, but they're not so famous for seeing all of the inflation in the Post-War Era that you talk about here, and concluding that inflation is good.

The late-1940's, 1950's, and 1960's was a prosperous time in the United States, despite the government inflating the debt away. How? It wasn't because the government inflated the debt away (Keynesians think that the prevented another Great Depression-style debt implosion). It was because America was (and at the time deserved to be) the global reserve currency. The Dollar was backed by (promises of) gold redemption, so a lot lot of those Dollars went overseas. This allowed the average Joe to get ahead in life anyway. Consumer prices stayed affordable. The only price that rose was interest rates, but there wasn't a lot of corporate nor consumer debt back then, so that didn't really matter much either.

All of this to say that yes: the Keynesians who run everything now absolutely will turn to inflation to try to fix today's debt problem. They've been "taught" by the 1940's that that's the solution - and they're completely oblivious to the fact that unlike back then, today foreigners aren't going to absorb all of our inflation for us.

[FennaVa]

Inflation hits people a lot harder than a crashing stock as it directly affects people's cost of living. Everybody immediately feels the impact. It's not surprising negative market sentiment is so high now.

[SeanTalkoff]

Inflation! Recession! Crash! It’s getting depressing. I have about $100k in emergency fund and I have been seeing good news about the stock market and would like to gain from that since I can’t let my savings be corroded by inflation. What stocks should I into as a newbie to safely grow my money.

[anthonycarbone]

The worst part of inflation is the fact that the tax or cost is not spread equally. Some occupations and industries have the ability to demand higher prices; thus rendering higher income and or profits. Other occupations and industries have just enough pricing power to at least equal the inflation; while the vast majority lose purchasing power each and every year. Usually this is when the rich get richer and the poor get poorer. For this to happen when the top 1% already own 90% of the wealth in this country, means massive social unrest on an unheard of scale is on the horizon. Now this will either translate into major beneficial changes or the most likely; meaning much greater and intensive Government Suppression.

[familygene]

Those idiots holding 129 trillion in US and corporate bonds paying 3% all the while inflation is raging at 20% are the real losers.