This whole Debt Crisis in the US is a COMPLETE fabrication.  Don’t fall for this trick.

This whole Debt Crisis in the US is a COMPLETE fabrication. Don’t fall for this trick.


Hey guys.. Charles Como back with another
Political Minute. In a recent video I discussed the fact that
the FILIBUSTER was NOT designed to protect the minority party in the Senate from an overreaching
majority as people falsely believe.. the filibuster was created by MISTAKE and now it’s being
used to hold this country hostage by the minority party unless they get everything they want. With all this talk of the fiscal cliff, the
debt ceiling, our children not being able to pay off the national debt, this country
becoming the next Greece and now talk of a trillion dollar platinum coin that will save
us all.. what the hell is going on here? Has this country lost its mind?

Start the one-minute clock and let’s find out. I recently read in a Noam Chomsky tweet that
the illusion of “freedom of debate” can be created by framing the argument in such a
way as leave out important information so that people end up debating irrelevant topics. For example.. gay marriage.. claiming that
it is about saving the sanctity of marriage when it’s really about religion trying to
force its views on the public. That very same framing is happening in this
country with the so called “fiscal cliff” and the “debt ceiling.” There is NO SUCH thing as a debt ceiling in
this country.. and there is NO CHANCE EVER of this country not being able to pay back
its debt obligations. The United States uses what called a FIAT currency.. which means
that we make our own money. Because money is completely FAKE.. (it’s just
a piece of paper or a coin)… the government has to put that money into the economy for
the economy to function and grow. If the government were to take IN the same amount of money that
they PUT OUT, the net result would be NO MONEY in the economy (ZERO) and the economy and
growth would not exist. Every time the government creates a surplus,
meaning that it takes in MORE money than it puts out.. you would think that that would
be a good thing.. until you understand that because the government created that money
in the first place.. every time they take money OUT of the economy.. they are actually
HURTING the economy. There have only been 7 periods since 1776
that the country achieved fiscal balance (even surpluses) bringing in enough revenue to cover
its spending: We also experienced 6 depressions since 1776 Do you see a correlation? Every time the country
balanced its books (brought in as much money as it spent), we were sent into depressions
right afterwords.. because of the way money works. The great recession we are in right
now was also caused by this fiscal surplus created from 1998-2001, but was delayed by
the dot-com and housing bubbles for a few years. So.. as you can see.. it does not make sense
for a country that has its own currency to balance its books, because to do so sends
the country into depressions every time. But how will our children pay back the trillions
of dollars that the country now owes to the Chinese you ask? Simple… they take one number from this column
and move it over to this column. The Chinese sell so much stuff to America, they don’t
want to take the money and convert it to Chinese Currency.. they want to keep it in dollars..
so they buy treasuries as a way to keep the money in our country. When those treasuries come do, the government
again, moves one number from this column and puts it in the other column. But won’t that create inflation? Nope… inflation only occurs when things
are booming.. when the economy gets overheated.. when everyone’s buying homes and cars, etc..
and that’s not happening right now… so the government should be INJECTING more money
into the economy to help it get out of this recession.. instead of contracting. But won’t we become like Greece? Not able
to pay our bills? Nope.. never.. Greece made the mistake of giving up its own currency
to join the Euro, which makes it unable to do what the United States can do.. which is
why they are screwed and we aren’t. But what about this ridiculous Trillion Dollar
Platinum coin people are saying the government should make? On Fox News they said the amount
of platinum needed to make a trillion dollar coin would sink the Titanic they said? I would say.. are you an idiot? We use a FIAT
currency.. meaning a quarter is not made out of a quarter’s worth of metal, duh. On top of that.. printing the Trillion Dollar
coin and depositing it in the bank to pay off the debt.. is EXACTLY what the GOVERNMENT
DOES ALREADY!!! It’s NOT a stupid idea.. it’s WHAT ALREADY HAPPENS.. AND EVERYBODY’S LACK
OF KNOWLEDGE OF how money works is allowing these idiot politicians to destroy this country
just so they can stop helping others. So.. the point of this video is to demonstrate
that this whole argument of this country headed towards financial disaster is a complete and
utter fabrication by those who want to undo years of progress through austerity measures…
so that we don’t have to help the less fortunate, spend on public programs, public transportation,
education, etc.. Coming up in the next few weeks I’ll make
a couple videos clarifying how money works and how we’re all being taken for a ride by
very rich and powerful people. 
What do you guys think about this whole
debt ceiling fiasco.. let me know in the comments below.. don’t forget to subscribe and I’ll
see you all next week for another episode of the Political Minute. �

68 thoughts on “This whole Debt Crisis in the US is a COMPLETE fabrication. Don’t fall for this trick.”

  1. It's not going to happen because more people don't understand how fiat money works and it's too easy to ridicule. But in all honesty, it's exactly how monetary policy works it's just a gimmick to show how it actually works.

  2. yeah, what's that mean gold is a fiat currency? Maybe you mean something like: when used as a currency it's demand changes so it's value as a commodity fluctuates with the economy that uses it, combined with the fact that still more of it can be produced by digging it up from the ground so more currency supply can be created, ie: it's not a super stable currency with a fixed value as some people feel. I thought a fiat currency meant it had no other value that being declared by fiat. ??

  3. Yep.. apart from it having good qualities for electronic connections.. it's only value is that it is rare and people put a price on it.. thus a fiat currency.

  4. I think I need to clarify that comment… When GOLD is used as a currency, it's basically a fiat currency as it's value is really what someone says it's worth.. tying the Dollar to the value of GOLD makes the dollar no longer a "fiat" currency.

  5. Why not use Horse shit? There is plenty out there! Remember, Money only has value if it can be exchanged for Goods or Services. Fiat Currencies always become worthless as, they are usually backed by nothing more than Bullshit; meanwhile, the 'elite' will buy Land,Silver and Gold just before the Shit fails, then when the next Fiat Currency is created, they are rich. Thus the cycle continues. Most Folks are too dumb to know this. I often use 'cashless' transactions! Works for me…….Abe

  6. Oh, well then, obviously everything is OK now, but if there ever is a crises, we can jusr whip out and watch these YT vids to find out what to do next. Whew! I was worried there for a uh, minute.

  7. There is no crisis. We are in a recession, which we can get ourselves out of by injecting money into the economy. That is done in 2 ways.. either creating jobs with government created jobs.. like building roads, high speed trains, etc… or lowering interest rates (which are close to zero right now, so that choice is off the table) Taxes should also be lowered (which is where Obama is wrong). This "crisis" is being used by both parties to scare people into giving them what they want.

  8. what type of cashless transactions are you doing that protect you from a currency becoming worthless? aren't your accounts generally denominated in some countries fiat currency? anyhow horse shit as the currency would certainly drive people to horse shit denominated cashless transactions rather than actual horse shit. and give new meaning to the term "dirty money". 😀

  9. I liked the format of this video a bit more than your other ones. I say throw away the one minute clock more often! Taking 4-5 minutes to explain these topics can certainly provide a deeper understanding of complex topics like these. You can only squeeze so much information into one minute.

  10. True for very unstable countries… but not for the United States. Even minting a trillion dollar coin would have no effect. Interest rates are so low right now because people are willing to put their money into dollars for basically no return.. which means they trust it more than other currencies.

  11. Love this channel, thanks for finally cutting through the bullshit which seems to pervade today's economic climate. There seems to be far too many people with far too many misconceptions trying to make choices these days (including the Senate of course). Anyway, you're all awesome and keep up the damn good work.

  12. You don't understand why the us can print money. Look it up. We are the worlds currency. If you don't think math works on all levels your fooling yourself. You cannot continue to spend without it sooner or later having to be paid. As it is, Russia and China are now trading between themselves without using US dollars which means our days of freely printing money are coming to an end? You have a lot to understand before you can say that 1+1+2=1 that is nuts. I have math on my side, you have what?

  13. Every dollar that exists in the economy was created out of thin air by the US government, so, no, you are wrong, these dollars do not have to be paid back. The act of "paying back" those dollars, as you like to put it, would result in the US taxing the hell out of everyone and removing every single dollar from circulation. The only time the US should remove money from the economy (contract) is to intentionally slow down an overheated economy (thus limiting inflation) not during a recession!

  14. I believe you're mistaken as to what fiat currency means. By the various definitions I found in dictionaries it is legal tender declared by a government and issued by central banks. gold is neither issued by central banks or is it legal tender declared by governments (not any governments I know of anyway, maybe some small country somewhere)
    just cause most of it market price comes from subjective value doesn't means it's fiat, all currencies since the times we used salt have that characteristic

  15. Every dollar that exists in the economy was created out of thin air by the federal reserve bank. definitive difference. the Fed is a private institution with the least amount of accountability and transparency to it's government of all central banks. IE it can lend (create) money to any financial institution or foreign government without having the obligation to disclose that info. That is MASSIVE. they basically can create money and give it to whomever they want without having to say they did.

  16. excuse me I have now researched and found that a bill H.R. 459 has been passed in 25 july 2012 which finally allows the FED to be properly audited on the matters that I specified in the previous comment. although I am not clear if this is a one time audit or not. there is also S 202 which is in progress. which is similar. don't know more for now. but would be useful to know who where the 98 congressmen that voted against it. If anyone know more on this would be helpfull

  17. update: H.R. 459 is a one time thing, bill passed and it audit must be made within a year of pass date (25July2012) and reported to congress within 3 months after completion. S 202 has been referred to the committee and also seems a one time audit, seems just to repeat the same again at a later date. So now we await the first comprehensive audit of the FED since it creation 100 years ago. we'll know for the first time how much money was lend and at what rates to whom.

  18. I agree things have gotten out of hand with the whole banking deregulations where banks were suddenly able to do things beyond what they where originally designed to do… loan money and maintain a certain level of reserves. Once banks were able to get into the investment banking business and repackage loans and resell them as complex derivatives that ultimately failed you ended up with this whole financial fiasco.

  19. So true. The debt crisis is a scare to keep voters from acting in our own interest. Another way to look at it: $16 trillion SOUNDS like a scary number, but it's only about 7x our GDP. A typical middle class homeowner allows himself a mortgage that is 5x or 6x his annual income. Wealthier people go higher, beyond 7x their income. So our "national mortgage" is not an unusual amount. And the sum of everything we own as a nation is much more than that, right? Gotta leverage our assets, as they say.

  20. Well, I do a job for someone else , then they will do a job for me! Sound simple? It is . Yes I do use a Fiat Currency, however, I keep this info away from the Tax Man( state thief), that way me & my associates keep more of the wealth( labour value/ reward), that 'we' have created. I am taking as much control of my life as I can, I no longer care what anybody thinks. I am making my own regulations……….Abe

  21. You are correct if a country prints too much money. The operative is word is TOO MUCH. The US yearly GDP is $15 trillion+ and interest rates are near zero – people are putting their money into the dollar at practically no interest rate of return, meaning they consider the dollar the safest investment. So… your point is valid, but it just doesn't apply to the US right now. If our gov't injects more money into our economy our GDP will increase.. otherwise we remain in a recession.

  22. I don't understand what you mean by governments creating money in the first place. The government doesn't create money–it can mint it, put it into coins and paper, etc. But it's the central bank that "creates" it. When the Fed buys up all these long term government bonds (Operation Twist), what's going to happen when interest rates rise and all these uber-leveraged banks fail and the government has no buyers?

  23. If you want to get into semantics.. yes the Fed creates the money that is out there, but the Fed was created by our government (even though it's a separate entity) to act as a conduit between it and the banks and the Gov't declares that the dollar that is created is legal tender. As for the Fed replacing short term securities with long term ones. When the short terms run out, it will just buy more LT ones.. so the end of the world will not happen.

  24. Agreed, but if they had their own currency they could have paid off their debt obligations with drachmas… the value of the drachma would have gone down in relation to other currencies (they are a small country), but then tourism would have risen (as it would be so cheap to visit Greece) and then the value would rise again because their economy would be pick up. Instead, by not being able to control their money, they are stuck in debtor's hell with no exit in sight.

  25. Yeah.. I think the point I was trying to make was that gold's intrinsic value is a perceived one as well (since it doesn't have a "natural" value, you can't eat it, run your car on it, etc.) so if used as a currency by itself (not backing a currency, but as it's own currency), it would be a fiat currency as well. Kind of a stupid discussion for me to bring up as it simply confuses the issue that I was trying to address in that all of this stuff is basically just perceived value, not actual.

  26. So you're saying that it will just keep buying up the government's debt, that the government basically has a never ending source of money. So if we're, let's say, quintillion dollars in debt–that's fine? Why don't we just give every citizen a million dollars to "stimulate" the economy?

  27. Yes, the gov't has a never ending supply of money. The problem w/ giving everyone a million dollars is that they will go crazy spending it, prices would go up with massive demand exceeding supply resulting in rapid inflation. So it's doable, but not smart. The better approach is to cut taxes (gov't doesn't need tax money to run) and inject money into the economy to get us out of this recession.. then pull back at the first sign of it overheating, thus controlling inflation.

  28. How would Greece have paid for its expenses (in other words, how could they continue to buy what they import) had they moved to drachma? Sounds impossible to me – I'd very much like an answer/opinion on that

  29. Liked the video. Do the algorithms that run the economy have the same understanding of this concept as to not "fat finger" us? Seems like a "pretend" crash and a "real" crash have the exact same reality.

  30. The only reason why a "crash" will happen is if people let these politicians shut down the gov't in the name of cutting the deficit… which would be the ONLY reason why we'd have financial chaos. Even after doing all that.. the US would still have to inject money into the economy to get us out of an even bigger recession.

  31. The price of gold is inversely related to the value of the dollar in relation to other currencies…. the problem is, the dollar over the last x years fell in relation to other currencies.. but now those other currencies are falling in relation to the dollar. If that happens, an investment in gold could be catastrophic (since most people buy commodities on leverage.) As for end of world scenarios, you can't do much with gold and silver when the world collapses.

  32. Why does anyone feel that a politician controls economies- be it fiat or not? Politicians have very little actual control over monetary/economic situations. No matter what level of politics they have no jurisdiction whatsoever over the dollar. The Fed has complete autonomy over the economy of the United States.Politicians put on an embarrassing dog n pony show. If it wants a crash. It will raise interest rates. You will have as much voting power on this as a penguin in the south pole.

  33. Actually, being that nothing backs the dollar other than oil producing countries/companies, if another source of effective energy arose that wasn't owned by an OPEC company the dollar would fall at the same rate of that energy becoming available/infrastructure.( if someone created a cheap way to produce salinity gradient power – we'd be in trouble ) Or, if OPEC countries chose to use another currency for stability. Black Swan it may be, but very possible in our lifetime.

  34. If people choose to buy paper assets with paper money, I agree. Now, even if it makes no rational sense, I people keep buying up physical reserves of gold and especially silver – the price rises. Only 1% growth rate on PM per year. (Silver is a production metal. ) they a leveraged at least 100X via paper contracts. Even then the price is suppressed. Is your argument really that we can, or should, keep producing deficit exponentially by exploiting all other markets.

  35. You are assuming that the gov't needs to pay the debt off with taxes. It doesn't. It is supposed to use taxes as a way of slowing a booming economy. We are in a recession. The only way out is to inject $ not pull it out of the economy. The debt will be paid down in no time in a booming economy.

  36. here in canada, we had a surplus economy for about a decade (starting in the mid 90s). we had eliminated the deficit and then some. but over those years, we still didn't come close to reducing our federal debt. we didn't even reduce it by 20%. which begs the question, what do you mean by "no time"? give me an example of a nation that has paid off their national debt.

  37. Money is NOT 'created by the government.' in the US today, money is created by a private bank, the Federal Reserve. Reserve notes are IOU's. The more there are in circulation, the less each individually is worth.

    Furthermore, the US Government does NOT exist to help people. It was created and exists SOLELY to protect the rights of its citizens through the military protection of the states and promotion of interstate trade.

    For more info on what the US gov is for, READ THE CONSTITUTION!

  38. Your economic history is a great example of what Chomsky was talking about. You state that all of these periods had a 'balanced budget,' but this is misleading. only under Jackson was the deficit eliminated, and the economy boomed. [note the 1837 crisis was a direct result from the specie circular, not the gov't budget.] The real cause of all the crises was the assumption of value to those things with no real value, such as stocks in 1929, loans in the last decade and the congress today.

  39. I'm talking about governments in general.. in order for people to be able to live together as a society governing bodies were created so that people could all agree on what people are allowed to do to each other, what to do about land, rights, food, etc. What those governments have ultimately turned into is a whole other matter.

  40. What I meant was as soon as an economy starts to grow too quickly, the government will start contracting the money supply.. pulling money out of the economy.. the net result is that the debt starts shrinking.. but I agree… it shouldn't be paid off completely if a country makes its own money… it could send the country into a recession or depression.

  41. If you fell that way, then don't help the economy.. take as much money out of the economy as you can by paying off the debt, get rid of all programs that took decades to create, fire as many government workers as you can & tax the hell out of everyone so that you can pay off the debt. The economy will be destroyed after all that. Or you can stop worrying about the debt, as it's not really an issue, inject more $ into the economy and things will work out. This is NOT the time to contract.

  42. I'm going to make some more videos showing that the "debt" is not really a debt that has to be paid back.. it's all perceived incorrectly by most people.. which is why we're all being taken for a ride!

  43. 1- Currency became 'fiat' only after 1971. Before that, the dollar was redeemable in gold.
    2- The only reason that the US has been able to carry off its debt is because the dollar is the only currency that OPEC countries would take in exchange for oil. Without this monopoly, the dollar is a currency like any other. If it was so, the dollar would've deflated proportionately to the debt taken by the US govt.

  44. A currency is only as good as its issuer. If currency users lose confidence in the issuing authority (i.e. the fed) then they'd transfer their USD to the next most trustworthy option. Since there isn't one atm, the dollar is still the world's reserve currency. It's a choice between bad and worse for most investors.

  45. The govt is NOT taking on debt and spending it on something that will grow the country's yearly turnover in goods&services. Instead, it's spending money on maintaining the status quo; i.e. failing auto industries, banks etc. Contractions are necessary if the economy is to restructure.. and restructuring WILL happen, whether by the consent of the US or otherwise.

  46. Good videos. We need much more of this kind of snappy information. The gold bugs are out in force, co-opting End Times rhetoric to scare people into going on the gold standard so they can get even richer. Ron Paul is the vector for a lot of this crap. Maybe he has a lot of gold somewhere. The internet is flooded with lurid, but catchy conspiracy rubbish. The left tends to produce diagram "lessons", talks by brilliant people who turn out to be inarticulate or boring, and panel discussions that are way too academic. 

    t's not surprising that many young people, or ill informed people, fall for the slick propaganda of conspiracy,and fear when they see on their google page 90% of the stuff is like that. 

    Many young people think radicalism is believing that 9/11 was an inside job, that the Jews run the world, and that and that all mainstream information is part of the plot. 

  47. Gold is fiat currency btw….. nice try. Please read Fiat paper money book. You might learn the difference between money and currency!

  48. If this is true then why does the government tax? Why wouldn't the government let us keep all our money and invest it into the economy. Then when they need to buy anything they can just print money to pay their bills… if debt doesn't mean anything for a government.

  49. I like this video…. I used to think the government should balance its books by slowing its spending… I now know that the way money is created makes it deflationary to slow government spending (or have a surplus). It is not how much they spend that matters, but what it is spent on.  Debt ceiling is ridiculous. And the trade deficit or surplus is much more important.

  50. What absolute rubbish. When the USD is no longer the Petro-dollar and the de facto global reserve, the US will no longer be able to export the inflation it's money supply expansion creates. It will no longer be able to hold interest rates at near zero. Fiat currency is not money, it's an IOU, one that allows central banks to steal capital value at a couple percentage points a year, with dolts like you providing cover. Money, to act as a medium of exchange, must be backed by real value, not simply the power to tax or inflate. All fiat currency schemes end in collapse, as all Ponzi schemes must.

  51. Wow, I had no idea that the government simply has to print more money to balance our budget and solve our debt problems. If printing limitless amounts of money doesn't cause inflation, why then don't we print enough money to give every American $1 million? Should be simple enough. However, MP J in his/her comments below is correct. Money is not fake. It's an IOU that must be backed by either hard currency like gold, or by the production of goods and services. Take the recent lesson of Venezuela of what happens when production declines, spending increases, debts rise, and money is printed to cover the costs. You are doing your viewers a disservice because they will be seriously unprepared for when (not if) the global economy begins to lose confidence in the U.S. dollar. When that happens, we will indeed be in the same position as Greece.

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