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8 Months of Stimulus Just Unraveled 

Economics Explained
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Jul 19, 2021

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Economics Explained
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John Wilharm
John Wilharm 8 hours ago
Stopped watching at 35sec. No, I do not want to listen to your morbid speculation or watch this fear-mongering negativity parade. I have been hearing this for decades. It gets tiring. Goodbye.
Jcewazhere
Jcewazhere 13 hours ago
Oh, and as others have pointed out that equation would mean a 50% increase to inflation, not 50% inflation. From 2% to 3%, not from 2% to 52%. This whole video reeks of fearmongering for clicks/views. Playing off people's fear of inflation to get money for yourself and advertise your skillshare video. I like your content, this one feels like a miss though.
Andrew Wootton
Andrew Wootton 14 hours ago
If you aren't sure if you are ready for the skillshare course you can also check out how to speak Australians here :ustotal.info/both/video/qn2ziI2IrmBsr64.html
Jcewazhere
Jcewazhere 15 hours ago
@EE Why does almost no one talk about how the repo markets were going crazy before covid? "In mid-September 2019, overnight money market rates spiked and exhibited significant volatility, amid a large drop in reserves due to the corporate tax date and increases in net Treasury issuance. Although some upward pressure on money market rates due to these seasonal factors was expected, the extent of the increase in both the level and volatility of rates in secured and unsecured markets was surprising. In this note, we review the money market events of September 2019 and discuss the factors that may have contributed to the sharp rate movements in the repo market and the associated pressures in the fed funds market." --Federal Reserve dot gov I remember the Hill had on Richard Wolff to talk about it and they warned of an upcoming crash before the first pangolin/bat/lab worker even got the sniffles. Bloomberg and a few other outlets talked about the repo weirdness too. It seems like this crash was coming, covid or no, and that not only did covid make it worse but Trump and his cronies were doing everything they could to push it till after the election, which also made things worse. The graph you flashed at 6:55 also shows this, that final hump goes all the way back to ~2016 and the high point looks to be ~2018/19.
Chris L
Chris L 17 hours ago
@Benjamin Chen I haven't bothered to watch the video yet, but it looks like an method is being missed. Rather than repoing the money back, it could be taxed from the wealthiest people. In America, the wealthy don't generally pay the taxes they owe and they have so much money that even if they did tax back the money that we've been spending, they'd still be ridiculously wealthy. Bezos alone could afford to solve homelessness in America and still be worth over a hundred billion dollars.
JV -
JV - 3 hours ago
Isnt inflation a consequense of unnecessary consumption? And nobody hoards cheese and sausage to their fridges even if they can, so it only applies to premium+ markets? A.k.a irrelevant items? Someone enlighten me.
Ian Peric
Ian Peric 4 hours ago
The bailout went to the largest upward wealth inequality change in American history.
Andrew S
Andrew S 4 hours ago
People aren't spending money cuz everything is expensive now
Resurrected Again
Resurrected Again 4 hours ago
8 months of stimulus? Where?
Chris K
Chris K 4 hours ago
nice explaination... but I disagee that 50% inflation is fine... It makes EVERYONE 50% poorer
Mericles
Mericles 4 hours ago
Minty?
Sluggo Jones
Sluggo Jones 4 hours ago
I'd rather learn how to speak with an Irish accent.
Chimerawizard
Chimerawizard 4 hours ago
people are hoarding USD? do they expect the USD to be worth more in time? I've been looking at buying property and until then have been investing it as much as I can.
Meta Morphis
Meta Morphis 5 hours ago
I called it before the first check, pre planned and orchestrated financial collapse, just in time for the 'Great Reset.'
SkySong6161
SkySong6161 5 hours ago
I find it interesting how he kinda ignores the elephant in the room even though he shows it on screen: for the United States at least, the velocity of money had been trending steadily downward for over 20 years (since 2000) and only really tanked during 2020. Why was the velocity of money depressing like that? That's hypothetical, we know the answer: the buck stops with the 1%.
Finch Bevdale
Finch Bevdale 5 hours ago
Have you never heard of taxes? That's how you control inflation and that's what will be done. Textbook macroeconomics is literally useless. MMT teaches us how the system works. Money by itself doesn't create inflation; resource constraints do. And that's all that's ever caused it in a country with It's own currency. We have severe underutilization right now. There's no danger of inflation.
Tiger Tiger
Tiger Tiger 5 hours ago
The comments section : (1) Boo this sucks (2) Boo that sucks (3) Argentina
Matt Schiman
Matt Schiman 5 hours ago
So…A solution to inflation only needs to be just complicated enough that the dumbest of economists and traders don’t understand it? And if you don’t literally spell it out word by word, you can just do whatever you want as a government? I guess I can see why America likes to keep their test scores low πŸ‘€
Dutch Resistance
Dutch Resistance 5 hours ago
Name a credible source that isn’t β€œon” the internet, economist or otherwise. The jab at someone being discredited because they’re on the internet is a bit hypocritical for anyone to say.
Nott Environmental
Nott Environmental 5 hours ago
Royal commission in Australia showed dead people being charged, less fortunate targeted w products they don't need, money laundering millions of times, inefficient, highly risky yet still lacking most recommend actions. Good description thanks, just don't imply the risky behaviour by banks relates to normal budget risk taking.
Troy Carr
Troy Carr 6 hours ago
*suddenly discovers everything he thought he knew about speaking Australian is a lie* 🀯
NegatingSilence
NegatingSilence 6 hours ago
You never came back around to talking about reverse repos.
Bernadette Sandoval
The Corona virus didn't cost anything. It was the ridiculous lockdowns and their predictable consequences that have been so costly, in addition to the government overreaction to a non-crisis virus
noobjetz
noobjetz 6 hours ago
all apologies, but the only acceptable response to this video is Crikey !
K R
K R 6 hours ago
Video idea: What would happen to the global economy if the richest 0.1/0.01/0.001% of people all suddenly died?
Vito Giove
Vito Giove 6 hours ago
both wars combined? Have you considered the population growth since the wars?
Frozen North
Frozen North 6 hours ago
Mexifornia extorting the insurance companies. Again
Sean Marban
Sean Marban 6 hours ago
no hate but if the government did nothing people would complain, I guess at the very least they actually did something
Hunter Holden
Hunter Holden 7 hours ago
I’m a socialist so this just sounds like capitalist propaganda.
Frozen North
Frozen North 6 hours ago
And what do "socialist" believe? If you have any idea.
gulf city nicholas danca
Yep this caused Labor shortage already and the costs of food is sky rocketing
Zahir khan
Zahir khan 7 hours ago
This was not a good episode. I didn't understand anything.
AAron.
AAron. 7 hours ago
Maybe inflation wouldn’t be spiking if we just... didn’t waste money handing it to rich companies and rich people ... who maybe injected 10% of the money into the economy! Maybe if we just invested in consumers who could then stimulate business by continuing to make purchases.... that would have been enough without requiring so much stimulus
Bernadette Sandoval
Or maybe not force businesses to close up and lay off workers for no apparent reason.....
AW80
AW80 7 hours ago
50% inflation over 20 years is fine?! That sounds like our buying power will decrease a ton in 20 years.
Omry Yadan
Omry Yadan 8 hours ago
One thing I don't get: The government gave someone $1400 and he keeps it in the bank, just in case. The bank goes and reverse repo the money, reducing the money supply, right? But that dude still have the $1400. The banks can't take money people got. The only way this happens is through inflation.
xxuncexx
xxuncexx 8 hours ago
So Delta variant was created by the Federal Reserve to keep the bubble cool and stop cash flow whilst they back pedaled on all the money printing?? *Genius*
xxuncexx
xxuncexx 8 hours ago
11:07 You can see the window the JFK was assassinated from close to the middle of the screen. I remember visiting :D
Hunter Thornton
Hunter Thornton 8 hours ago
Forgot to mention money isn't changing hands when most businesses were and still are closed in some parts of the US
Jonathan Knutsen
Jonathan Knutsen 8 hours ago
Good stuff Mate!
Colton R. Dean
Colton R. Dean 8 hours ago
Good video. Basically a fourteen minute video explaining supply and demand with cash in the economy. Of course the β€œreverse repo” method sounds like a roundabout way of burning non-physical cash.
Mustang Things
Mustang Things 8 hours ago
Don’t have to worry about getting kicked out of an Australian BBQ if nobody is allowed to travel there.
Joseph DESTAUBIN
Joseph DESTAUBIN 8 hours ago
You know all of this reminds me of the thermal nuclear tests on Bikini Atoll, when some of the best minds alive at the time exploded the H-bomb with 3 times greater power than what they had calculated.. Economists have told us for years that direct payments would be the most effective form of monetary stimulus. But what they failed to realize was just how potent such an act would be. In retrospect this should have surprised no one, as economists, disciplined and even keeled as they are, cannot empathize or predict the frenetic behavior of the common man being handed a pile of cash.
JotaEme
JotaEme 8 hours ago
Clicked the video as soon as the federal bank was mentioned as the issue.
Michael Satva
Michael Satva 9 hours ago
so help me understand.... if people dont spend their money its good? wouldnt spending more money boost the economy and help distribute wealth? if theres 5 trillion dollars but jeff bezos has it all then everyone else is homeless. what im saying is if regular people spend all their money on consumerism how could that create inflation since it just means the money is actually having velocity
Mike Breler
Mike Breler 9 hours ago
The forth stimulus checks (survival money) that should be going to low income single citizens, is going to provide every benefit under the sun to illegals. They bus and fly them to US cities and pay for their housing, food, medical and everything they might need, while single citizens that have paid taxes for decades have to scrape and scrounge and suffer through this inflationary depression.
Skrewewe Toob
Skrewewe Toob 9 hours ago
I love an Australian kiss! It's just like a French kiss, except it's down under...!
Daniel Chap
Daniel Chap 9 hours ago
You know what's really funny, the economy is basically run on a POS system like at a restaurant, and can be unplugged or code scewered how ever anyone with the keys want .its as simple as rewriting code on a program and all ur financial jargon means nothing.
Brandon King
Brandon King 9 hours ago
This whole past year has proven Yang and Bernie right. How much less devastating would the pandemic have been if we had Universal Healthcare and Universal Basic Income?
RL Real Estate
RL Real Estate 9 hours ago
People are all saving up money to buy houses, and that’s heating up the housing market
J K
J K 9 hours ago
Hellcats for every one!
John Richard
John Richard 9 hours ago
A big thank to Dr Kpudu I just confirm am completely cure free form hsv1 with the help of his wonderful herbs medicine may God bless you and your wonderful herbs thanks so much dr kpudu anyone looking for any herbs medicine should kindly contact dr kpudu to place your order for his lovely herbal medicine
Peter Lyov
Peter Lyov 10 hours ago
Crapitalism
Chino
Chino 10 hours ago
this must be 100% true, its on the internet after all
robert hamill
robert hamill 10 hours ago
This guy is wrong about 2 things #1 GDP has nothing to do with the Velocity of Money as GDP is the amount of Goods and Services that are made in the Nation .. #2 50% Inflation in 20 years is NOT OK !! .. That's Huge Theft !! .. and the Fed 2% Inflation Target is Big Theft as 2% Inflation in 10 Years is 30% of Your Wealth Gone .. Prices should come down every year as we become Productive and this makes everyone Richer as they can buy more ... The Fed and the Government are Thieves !!!
Jackson Ayres
Jackson Ayres 10 hours ago
People aren't sitting on their 'piles of money', they don't have enough money in the first place and are struggling to simply cover needs like rent and food. The people who ARE sitting on piles of money are corporations and wealthy people. The velocity of money is so low because so little of it is actually in the hands of the people, and that is why they can't afford to spend money. Redistribute wealth from the billionaires and corporations who made a killing during the pandemic and watch the velocity of money increase drastically once people can afford to spend it.
Real Name
Real Name 10 hours ago
YOU DIDN'T FACTOR IN ONE THING!! Since a huge % of purchases are made digitaly now.. I'd wager that people using cash alot are more likely to hold on to the cash and until the "digital" money is out. The theory used to find the speed of money transfers needs modifications to bring it up to date. Could be 2x faster than they think..
logan fehn
logan fehn 11 hours ago
May have glossed over something rather important. Now that everyone is saving the money that the government has sent them, our government does not have to borrow as much from foreign countries, due to the fact that the Federal Reserve is holding that money and can simply loan it back to our government..
The Unlearned Mind
The Unlearned Mind 11 hours ago
Never apologize for math.
Yer Dah
Yer Dah 11 hours ago
Yeah long story short , this is all to do with GME, shorts didnt cover and its melting down the economy as this is going to cause untold problems as nothing like this has ever happened before and thats why they are trying to crash everything with the "covid" bullshit, shutting down the world ecnomoy for a flu like disease with 99.7% survival chance.... Yeah that makes total sense, no agenda at hand here at all, if you believe that I have a bridge to sell ya real cheap.
ANTHONY V
ANTHONY V 11 hours ago
Nice video. Is it just me or does he sound a little like Forrest Gump?
DarlaJean
DarlaJean 11 hours ago
They need to hit up a few or more PEOPLE in the Deep State like Gates, Fauci, Zuckaburg, Elon Musk, and more of these very successful INVESTORS and movers and shakers who got all those HUGE loans from the US Governements confers; meaning TAXPAYERS MONEY.. WE Want our money back..
Jason Murray
Jason Murray 11 hours ago
This is not the only thing at play, but literally 40% of American consumers panic every time a Democrat is elected because they have been brainwashed to believe that anyone with a D behind their name is bad for the economy and will instantly/overnight cause a crash. Their behavior of course has a tendency to do exactly that (or at least exacerbate issues left behind by the last Republican boom-and-bust deregulator). Ask yourself what finally popped the bubble that had existed just fine right until just after Obama took office. It's the effect of culture and economic illiteracy.
James Thomas
James Thomas 11 hours ago
........whatever kiwi....... ;)!
Hurtn Albertn
Hurtn Albertn 11 hours ago
we need to have a trial for the heads of the federal reserve. Preferably one in Nuremberg.
BARBARA west
BARBARA west 11 hours ago
I no longer go through pains of having herpes disease after I was able to get rid of it with Dr IGUDIA on UStotal herbal medication.
Hovemにゃん
That balloon analogy was genius, I understood the math but the analogy 100% helped to understand it better. Thanks!
Sonny Cabel
Sonny Cabel 11 hours ago
Worse still was the financial market becoming the dog while productive US industry became the tail on the dog. A complete reversal caused by the investment banking industry devising ever more ways to create risky financial instruments that have blown up in their face & will do again. Right now it’s the FED massive money injections that have stalled the coming issues. I’m certain the US government will help out WallSt not regular folks with mortgages yet again.
John Keller
John Keller 11 hours ago
The people controlling our economic policies don't care about any of this, because they are all so incredibly old that they will be long dead by the time any of it becomes relevant.
Cristian Winkler
Cristian Winkler 11 hours ago
Taking cash out of circulation? Argentinian politicians cant understand that lol
Cedrick Narsiso
Cedrick Narsiso 12 hours ago
End The FED
Francis Rauth
Francis Rauth 12 hours ago
Are you being overly pessimistic? Yes...
BP23
BP23 12 hours ago
First statement about to both world wars combined costing less than the pandemic funding.... please proved evidence or #'s.
robobrain10000
robobrain10000 12 hours ago
Inflation lets go bby.
esteban collazo
esteban collazo 12 hours ago
The calculating reindeer dewailly fool because ethernet shortly produce besides a previous alphabet. nosy, equal may
David Sparling
David Sparling 12 hours ago
I said it from the start. We should never had given out stimulus
Pandoran Bias
Pandoran Bias 12 hours ago
What happened to you? All your vids now are misinformation and disaster preaching.
Chris Jones
Chris Jones 12 hours ago
Don't worry Joe Biden wants to print four trillion new dollars and he says that will help tamp down on inflation
Heavy in the Game
Heavy in the Game 12 hours ago
ziggy d?
master ninja
master ninja 12 hours ago
This is, unfortunately, the plan. To devastate the economy, send the world asunder, and then take over without hiding. The way they’ve been planning it for at least a few hundred years.
J C
J C 12 hours ago
Great videos, really enjoying the channel. How about a video on the economics of the Olympics sometime soon? Just so I can start to get my head around what 2032 is going to cost us up here in Qld.
David Montgomery
David Montgomery 12 hours ago
This isn't an accident, it's intentional. "You'll be happy owning nothing."
Micheal Davis
Micheal Davis 9 hours ago
Oh yeah, that summit led by the worst marketing ever is definetly leading this incident. Nope, it was just governments trying look good to win elections. Both businesses and common people are going to be hurt by that inflation, politicians just don't understand economics.
Vince A
Vince A 12 hours ago
The WEF / UN plan to turn us all into hamsters & expendables
Vince A
Vince A 12 hours ago
3 questions: 1. Banks lend $100 into the system. Where does the payback interest of $1 originate? (Answer: Unsustainable Ponzi scheme) 2. Was it necessary to splash extreme fiat cash for a β€œCovid Stimulus” considering herd immunity was the ultimate outcome needed? (Answer: No. Governments over reacted for political purposes) 3. What is the inevitable result of too much fiat money that cannot be absorbed by the hidden tax of inflation? (Answer: Survival of the smartest / most prepared + uncontrollable crime) Can you comment on these 3 questions?
Bradley Botanel
Bradley Botanel 13 hours ago
The 830 dislikes are from people who actually studied economics at university.
Micheal Jenkins
Micheal Jenkins 10 hours ago
Very astute. When you have been indoctrinated by a controlled educational culture, you cannot help but have a bias towards what you have been taught. But look at where the last 30-40 years of conventional β€˜thought leadership’ in economics has brought us.
Renegade 3211
Renegade 3211 12 hours ago
It because economics majors think they know it all.
Maximus
Maximus 13 hours ago
Buy silver
nc4tn
nc4tn 13 hours ago
β€œThe problem is”; You can’t get blood out of a turnip. A d sooner or later the turnip either gets eaten or lays on the ground and rots. β€˜Nuff said.
Lxx 0000
Lxx 0000 13 hours ago
I hoard cash because I fear that the USA will break up during the coming decade, and that our planet is on the brink of WW3. I live 15000km from Washington DC. I get a bit of Social Security and am confident that that will continue. If Argmageddon strikes, it may be impossible for my wife to apply for SS when she turns 66. I also fear that the ability to move my retirement savings to where I live, may vanish.
TheCoolCarhd
TheCoolCarhd 13 hours ago
Thats what you get,For rigging an election
Alfonso Alfonso
Alfonso Alfonso 13 hours ago
Just a mechanism to make more work and produce nothing. So the person making money can purchase stuff. Our current society with its money produce very little food, clothing or shelter, and less expensive health care. Present society produces Space joyrides, weapons and jobs to move paper around !
DERIC 4 REAL
DERIC 4 REAL 13 hours ago
Perfect example of NOTHING in life is free
DERIC 4 REAL
DERIC 4 REAL 13 hours ago
Perfect example of NOTHING in life is free
CK Norris
CK Norris 13 hours ago
Besides inflation we also have a weird phenomenon of people taking advantage. Prices of everything are up right now but its hard to tell if its caused by inflation, greed or both.
Clay Spence
Clay Spence 13 hours ago
yeah we're boned.
Allied Atheist Alliance
Bailing out rich corporations has to be the dumbest thing in history, especially with companies who dodge taxes or are registered in foreign nations to avoid taxes. It only makes sense when you realize that 99.99% of the politicians are corrupted by the same corporations and recieve hundreds of thousands of dollars to give them millions of dollars. Great deal if you can afford the outlay.
Susan Ray
Susan Ray 13 hours ago
The repo problems arose 6 to 8 months before we had even heard of C19.
Christophe
Christophe 13 hours ago
May your chooks turn to emus and kick down your dunny… -I speak McQuarry’s.
Armentum Hominum
Armentum Hominum 13 hours ago
But hey, at least they're talking about trans rights 24/7, boy am I glad they are focusing on that issue.
CanAmRydr
CanAmRydr 6 hours ago
Boy? Did you just assume my gender? πŸ˜‘πŸ˜‘πŸ˜‚πŸ˜‚πŸ˜‚
Alex thomson
Alex thomson 13 hours ago
This is why we buy Bitcoin
My Leg Hurts
My Leg Hurts 14 hours ago
US Dollar also has different rules than any other currency on the planet
Norse
Norse 14 hours ago
'Am I being overly pessimistic here?'.. No, you're being overly simplistic and disingenuous with your infantile modelling.
pdlsuper7 Lanck
pdlsuper7 Lanck 14 hours ago
Some of us have been screaming this for a decade or more, but it falls on deaf ears bc our education system teaches us that Keynesian economics is the right economic theory when it always leads to destruction. Inflation has skyrocketed and will continue ever since Nixon took us off the gold standard completely and stated, " we're all Keynesians now." The FEDERAL RESERVE is RESPONSIBLE. They are a quasi-government-PRIVATE entity. It's socializing the costs onto us while privatizing profits to the private banks. It's disgusting and President Ford even stated, "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." The only reason there hasn't is bc our media is controlled by them as well, so people are indoctrinated with their lies on why we need them. Economics Explained doesn't talk about this in the video bc they would be de-monetized and the algorithm would prevent the views they want but they might also believe in Keynesian economics bc that's what they learned in school.
tlb
tlb 14 hours ago
You really went from explaining inflation with math to with thermodynamics