Hello fellow Rebel Capitalists hope you're well in the news today you should be shocked but I don't think you will be shocked we've got inflation hitting a milestone we've got the supply chain disruptions shortages due to government distortions and Janet Yellen is coming out and saying the cure for all of this inflation and the cure for government distortions is more government intervention and more money printing that's right you cannot make this stuff up so let's dive into this
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Hello fellow Rebel Capitalists hope you're well in the news today you should be shocked but I don't think you will be shocked we've got inflation hitting a milestone we've got the supply chain disruptions shortages due to government distortions and Janet Yellen is coming out and saying the cure for all of this inflation and the cure for government distortions is more government intervention and more money printing that's right you cannot make this stuff up so let's dive into the first article CNBC talking about labor shortage supply constraints and inflation hold back economy trying to emerge from the Cerveza sickness so bullet points the economy in the third quarter grew just two percent the slowest pace since the 31 plunge in the second quarter of 2020 when the economy was shut down well again let's be clear Patty the and that's the author if you guys can see in the upper left hand corner here the economy was not shut down by the Cerveza sickness the economy was shut down by the politicians response to the Cerveza sickness way different next she says unique nature of the Cerveza sickness shutdown as a result let's be clear the unique nature of the government's response has resulted in a longer and now shallower than expected rebound who was expecting that who is expecting a more steep rebound but not me not anyone in the Rebel Capitals community I don't know what she's talking about maybe the talking heads at CNBC as the economy struggles to overcome supply chain disruptions, labor shortages and inflation which Patty why are we getting the supply chain disruptions labor shortages and inflation it's because the government coming in in creating all of these unintended consequences maybe they're not unintended I think a lot of you have been asking yourself that question for quite some time as the pandemic recedes it has created lingering ill effects, no, no, no, no, the government has created lingering ill effects like worker shortages inflation the stuff we were talking about earlier but could also ultimately extend the economy's recovery governments around the world spent trillions to smooth the impact just the old Keynesian playbook so they the government spend trillions of dollars and they say governments but right here in the united states we spent trillions of dollars so is it any surprise that we're seeing all of the problems she's talking about and what's staggering is that Patty and other people like her they can't connect the dots like they see the government's printing trillions of dollars and they sit there and say okay well that's what they did we have all of the this inflation and shortages yet there's no connection between the two I mean it's unbelievable how can these people be so obtuse this is right there in front of their eyes and here we get into some quotes these are always great what we're seeing is an economy with millions of individual decisions having to cope with these large changes Melon Chief Economist Vincent Reinhardt said it's a modern economy that has gotten more and more complicated it's a complicated machine to start has the economy really gotten more complicated I would say the real economy hasn't now it is true that the real economy is now just completely consumed by the financial economy and by just wild gambling as we can see in the price of Shiba Inu which I think yesterday got up to a 50 billion dollar market cap I think it's come down since but just think about that that's a joke cryptocurrency of another joke cryptocurrency that as of yesterday was worth 50 billion dollars that's the level of market hysteria we're dealing with right now so I would agree that the financial economy consuming the real economy is is complicated but at the end of the day the real economy it's not that difficult to understand that's why in that whiteboard video or my whiteboard videos I always use I take things down I take things back to the basics and I use the example of the Farmer Fred's one guy grows cows one guy grows cotton one guy grows corn so there isn't really anything different about our real economy in the modern age and that agrarian economy that we start with in my whiteboard videos it goes back to the premise and the principles that we have to produce more than we consume I don't care if we're living in 2020 or in 1720 or in BC, go back as many thousands of years as you want and it's still the same we have to produce more than we consume in order for the economy to grow in a way that's healthy and sustainable so that is not complex goes on to say stores are grappling with shortages as the ports are clogged shipping has become more expensive and is a challenge companies large and small are facing worker shortages so let's just isolate that for a moment companies large and small are facing worker shortages but yet what are the central planners doing in the face of a labor market that's at that's as tight as we have ever seen in the united states where job openings are at all-time highs so just to that really illustrates the point that they're making this CNBC article we're saying that companies have to fire if they have over 100 employees they have to fire let's say 10 to 15 percent of their staff for the mandates and you guys know what I'm talking about so that's in a perfect example of the government coming out and just knowing there's a problem knowing there's a labor shortage but exacerbating the problem which they know is going to have long lasting negative ramifications on the economy just to extend their narrative or just to pander to their constituents or just to do the bidding maybe the global elite depending on your view so this really illustrates why when the government gets involved and distorts the economy it 99 of the time it's going to make things far worse I saw another example there surging commodity prices okay why are commodity prices surging such as coal such as uranium such as natural gas because what we've done is we've constricted the amount of money going in to create more supply because we want to create clean air great you want clean air good for you but if we rely on strictly solar and strictly wind there's not enough of it to go around so you've got a couple options there number one you just live with a lot less electricity power and therefore the standard of living plummets or you look around you say oh my gosh we need to do something but then you try to find coal you try to find natural gas and you're like oh shoot yeah I forgot we haven't invested any money in that for the last five years but yet we need it because we're not willing to allow our standard of living to go down so what happens with the price it absolutely skyrockets again this is a distortion that was caused by government intervention so here is US gross domestic product now I want to point out this is in real terms this is adjusted for the rate of inflation but think about what GDP would be if we actually had a correct CPI print so let's just say that this 2.0 number was using a CPI of four percent well if the real CPI number is 10 then you've got to reduce that by another another six percent so instead of two percent now we're down to negative four so this is why I've argued for quite some time that I believe we have been in a depression negative real growth in GDP since the GFC because we just haven't been measuring inflation correctly and the metric used the number the deflator is what they call it used to bring down nominal GDP to real GDP needs to be significantly larger and if you used a correct deflator that represented actual prices in the real economy then again we would have negative real growth I think going back to the GFC and that would explain a lot of the wealth disparity it would explain a lot of what we see all around us that just doesn't really add up when you look at the numbers of consistent GDP growth we should be getting richer when we're actually getting poorer so now let's switch over to Janet Yellen's solution to all of these problems so treasury secretary Yellen says spending bills will be anti-inflationary could you just can't read that without laughing that the fact that the treasury secretary can say this with a straight face really tells you everything you need to know about the world we live in today it has nothing to do with facts it has nothing to do with reality it has nothing to do with intellectual integrity at all it just has everything to do with manipulation and spinning the facts and spinning reality to cater to a narrative they the central planners are trying to push bullet points treasury secretary Yellen told CNBC on Friday the administration's infrastructure spending proposal will lower inflation at a time when it's increasing rapidly so we've got a problem with too many currency units chasing too few goods so we're going to solve that by creating more currency units that makes sense speaking from Rome holy cow look at her my goodness gracious well that is Rome I guess I don't know she looks a lot different there doesn't she I guess the outfit's the same anyway I'm not going to give her a hard time based on her appearance I know it's windy and that's not what this is all about we got to think about her ideas that's what's most important here so speaking from Rome she insisted that what this package will do is lower some of the most important costs what we pay for health care child care it's anti-inflationary oh my gosh that's her rationale okay so let's think about this owner equivalent rents or housing costs are I don't know the exact about 20 to 30 percent of the overall CPI metric and that makes sense because that's the largest component of most people's expenses their housing costs the other large components energy food so help me understand how let's just assume for a moment that the government's spending money will actually bring down the cost of health care child care which I would argue it will not it will increase the cost I mean when is the last time you saw government get involved with the economy by spending more money and that brought down the price it worked tremendously well with college tuition didn't it I remember that when the government got involved with college tuition to make it more quote unquote affordable what happened to college tuition it skyrocketed it did the exact opposite which is what any of you rebel capitalists watching this video right now could have predicted why because we're increasing the amount of currency units chasing the same amount of goods and services it ain't rocket science at the end of the day and the government's way of solving or health care is just the exact same it's just throwing more currency units at the problem and expecting that prices to somehow go down so this makes absolutely no sense whatsoever but especially when you look at it through the lens of how the CPI is measured so we talked about the majority of it being housing energy food and I know you can swipe it away but let's just use a number that's realistic for what most people actually purchase on a daily basis giving them the benefit of the doubt assuming they can bring down the cost of health care and child care is that really going to move the needle when housing costs energy costs and enter in um food costs are skyrocketing no it's not it's still let's just say you're spending 10 percent of your income on health care and that goes down by one percent but you're spending 50 of your income on housing energy and food that goes up by 20 are you better off or are you worse off obviously you're a lot worse off and this is exactly what we're going to see with any additional government spending that's being monetized by the fed which this most likely will have to be because they want to try to keep down interest rates so if all these bonds issued went directly into the private sector you would most likely see the 10-year 30-year go up fed can't have that to a significant degree so that's why the majority of these bonds go into the balance sheet so when Janet Yellen spends these dollars back out into the real economy as you guys know from watching my videos on net balance that's going to increase the amount of dollars that are on the balance sheets of the non-bank entities in the real economy that are out there chasing these goods and services which oh by the way because of the labor shortages we are now producing less of so this is just a recipe for far more inflation not less inflation her remarks come with slowing with growth slowing and inflation rising both due in large part of major supply chain issues that she expects to be resolved how Janet how you see that's what they always say the talking heads and the PhD Economists though I say well I expect this to pass I expect this to blow over how show me the game plan that gets us from where we are now to actually solving the supply chain disruptions and the answer would generally be well George the cure for high prices are high prices I get it I agree but that's only if you allow the free market to do what it does well create more supply and use those price signals to allocate resources efficiently but if what we're doing is creating more and more government intrusion especially the same type of distortions coming from the government and the central planners that created the problem in the first place how can you expect the problem to be resolved when we're just doing more and more and more of what created the problem in the first place see it this makes absolutely no sense whatsoever oh good she was there with the g20 conference of global leaders Yellen renewed her push for white house spending plans that are unpopular with several factions of government and yet to be approved listen Janet Yellen is simply a mouthpiece for Biden and that's obvious I think that especially if Powell's out and Brainerd's in it's going to be more the same where you're just going to have this narrative coming from the Biden administration that's going to be pushed by Yellen and that in turn will be pushed by Brainerd and they'll all be on the same page which pretty much equals MMT I think longer term and where's Biden getting his narrative I think that's the true question and for that like you've got to look at my interview I did last night with Whitney Webb part one is on the George Gammon channel part two on odyssey the rebel capitals channel there and that gives you some indication that it's not really the narrative coming down from the Biden administration it's probably the narrative coming down from the global elite there are no certainties only probabilities but I think the probability of that is quite high jeez this next statement is so ridiculous it's even hard for me to comment on I will do my best, I don't this is Janet Yellen talking I don't think that these investments investments well will drive up inflation at all okay so in order for this to be true these quote-unquote investments would have to produce an equal amount of goods and services relative to the increase in money supply or the increase in dollars that it was creating so they would have to gr they would have to increase at the same rate I think that's the best way to say it so it is true that you could increase the money supply by a hundred trillion dollars and if goods and services expanded at the same rate then you would not see consumer price inflation the problem with that is that the government spending reduces the amount of goods and services that our economy creates it doesn't increase it so although this sounds good in reality like so many government programs the result is the actual opposite of their intentions all right oh we got a super chat here thank you George do you have any contacts to help buy property in Bogota no I don't really know anyone in Bogota just in Medellin the one thing I can tell you if you're a gringo you're gonna have to go there and do some boots on the ground research because just by using a website or someone off the internet and just going there for two weeks and expecting you can buy a property nine times out of ten you're gonna lose a lot of money so if you don't have the time to go down there for two or three months and really do a lot of boots on the ground research I would think twice about that now if you want to go into Medellin then obviously I've got a lot of contacts there you could talk to Angie Joaquin they run my operations my real estate operations down there and they could help you or at least point you in the right direction but you're either gonna have to use a team that has a ton of experience that you can trust it's very hard to find or like I said you're going to have to do the research yourself and you can't do that on the internet you got to be there face to face in person do you think is inflation is on on-ramp to Fedcoin I actually think the opposite so if we have deflation that would increase the probabilities of us getting fed coin because the government needs inflation to be bailed out let's go back to the 1970s debt to GDP my memory serves me right was roughly 70ish I think percent going into the 1970s at the end of the 1970s about 30 percent so the debt to GDP of the government went down significantly why because we saw inflation so they're able to reduce their debt load by paying the debt back with cheaper dollars so GDP nominal GDP goes up and their even if their expenses increase at the same rate their debt to GDP is actually going to go down so that that's what their objective is now that's the way they want to be bailed out so what would get in the way of that is if we have deflation especially in asset prices when I say d fish I'm not really talking about consumer goods I think there's a very low probability of prices there going down but I think there is a good substantial probability that in nominal terms the stock market crashes again or over time housing prices may go down I think it's probably more realistic in real terms but this would prompt the fed in my opinion and the central planners to come in and implement that fed coin a lot faster because this would be a way for them to inject more dollars directly into the economy without having to rely on the politicians or the commercial banking system so I think it's a great question but I kind of see it the opposite I see it as the probability increasing if we get deflation now I think we'll still get there even if we have inflation but I think it'll take a little longer great stuff question do you think enough people will wake up before it's too late will we be on right side of history well I can tell you we're on the right side of history my friend because just go back and whenever you look at societies the united states is a fantastic example that the people that value freedom more than safety I'm not to say that safety isn't important it's just you got to prioritize here people that prioritize freedom and individualism more just more specifically over safety they're always on the right side of history and then you go back and think about the people in today's society and back throughout history that were very that were the authoritarianism or the authoritarian the group of people that believed in authoritarianism I think that's what I'm trying to say they were the ones that wanted to censor they wanted to only give you the information that they wanted you to see so they were the ones that were burning the books and in today's society they're the ones that are demanding that we have more censorship not less censorship you've got to ask yourself when have they been the good guys the answer is never so most of you rebel capitalists watching this video right now I think it's safe to say that you value freedom that's your priority above safety and you also are against censorship I'm not here to say that businesses should be you can't do what they want that's a whole different discussion but just in constant principle you are pro freedom of speech even if that entity or individual is saying something that you don't like so I think that when we look back in 40 or 50 years or the history books talks about this time frame in 100 years and 200 years those people are going to look back and they're gonna say you know what those individuals that stood up for freedom liberty free market capitalism those individuals that stood up for free speech they were correct George go on Rogan and Russell Brand podcast that would be awesome reach more people that don't already know you yeah mike I'd be happy to go on Rogan's podcast or Russell brand I'm a big fan of both those guys um Rogan was nice enough to retweet the tweet I sent out the other day talking about this channel being taken down that was I believe Wednesday, Thursday you guys know the whole drama with that if you if you don't know that drama I did a video on it I think yesterday just kind of what happened with them taking down the channel and then reinstating it I think one of the main reasons it got reinstated is because Rogan was nice enough to tweet about it and so I don't know if he's just standing up for against kind of the big tech or if he actually watches the videos um I don't know but I'm gonna keep doing what I'm doing and hopefully we can grow the channel and and open up people's eyes to the extent that we get an invite from one of those two gentlemen if not both because I would love to go on their show and I'd love to interview them so hopefully that'll happen in the future political system is falling apart maybe Janet Yellen needs to oh come on okay all right we'll make a note of that Randall thank you I gotta keep it kid friendly here all right anything else all righty guys enjoy the rest of your afternoon make sure you're always standing up fighting for freedom, liberty, free market capitalism. See you on the next video
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