Top 4 Reasons For Deflation BEFORE Hyperinflation – Hidden Secrets Of Money Episode 6 (Mike Maloney)


I’m Mike Maloney, author of “Guide to Investing
in Gold and Silver”. It’s the world’s number-one best-selling book on investing
in precious metals. It’s available in eleven languages. And in my book, I said that we are
on a wild rollercoaster of a ride, and that we would first see the threat of
deflation, followed by a helicopter drop, and that would be followed by big inflation. And that has happened.
There was the 2008 crisis… We’re seeing the base money around the
planet being hyper-inflated right now while all of the credit aggregates are
collapsing, and so it’s sort of netting out to zero inflation or just slightly
positive inflation, even though base money around the planet
is just taking off like a rocket. But it would then be
followed by a real deflation and then followed by hyperinflation. So I think it sort of looks like this: we’ve got the markets going up
in the real estate bubble in 2007, and then we had the threat of deflation,
which was the 2008 market crash, and the big helicopter drop of currency,
and you are here [laughs]. And then I think that we’re
going into something like this, and it’ll be followed by the
world central banks overreacting. People, you know, some people say I’ve been calling
for hyperinflation, hyperinflation, hyperinflation… There isn’t any time that
I can find, in all of history, where a population that’s all on one
side of the boat, when you have a nation of debtors, what has to happen is that
you go into a deflation first, allowing the banks to foreclose. The public, in general, is on
the losing side of the bet. We are entering a period of financial crisis
that is the greatest the world has ever known. The wealth transfer that will
take place during this decade is the greatest wealth transfer in history. Wealth is never destroyed,
it is merely transferred; and that means that on the
opposite side of every crisis, there is an opportunity. The great news is that all you have to do to
turn this crisis into your great opportunity, is to educate yourself. I believe that the best investment that you can
make in your lifetime is your own education: education on the history of money,
education on finance, education on how the global economy works, education on how all of these guys –
the central bankers, the stock market – how they can cheat you;
how they can scam you. If you learn what is going on and
how the financial world works, you can put yourself on the
correct side of this wealth transfer. Winston Churchill once said, that
the further you look into the past, the further that you can see
into the future. This program is all about creating your own crystal
ball: being able to gaze into the future; being able to change this crisis – the
greatest crisis in the history of mankind – into your great opportunity. Well I’ve been traveling
overseas quite a bit, but I’m on my way home now to
speak at an event in California, finally. What I’ve been trying to make clear is
the fact that this rollercoaster crash that I was talking about in my book, and
that I’ve been predicting since 2005, is playing out right
before our eyes. One of the things I really like about speaking at live events is the chance to interact with people and sort of get my finger on the pulse
of what they’re thinking. And lately, it’s become pretty obvious that for a lot of people, it’s difficult
to grasp why I think deflation is coming before big inflation,
or even hyperinflation. So here, I’m going to break down four of the
biggest reasons that I see deflation coming first. The first one is simple: The overreaction to the 2008 crisis has caused
a credit / debt bubble, and all bubbles pop. So, I talked about hyper-inflating base money.
This is, this *is* hyperinflation right here. Inflation and deflation is either an expansion
or a contraction of the currency supply, and prices follow the inflation
or deflation eventually. Now, most of this currency does not circulate. It’s
sitting on banks’ balance sheets and what’s called excess reserves. You know, if you look at
the years leading up to this crisis, this red
line is reserve balances. The white line is how much of it is excess, and here we have Alan
Greenspan’s response to 9/11. Look at the scale of how big this
emergency is compared to 9/11. But what is Ben Bernanke afraid of, and
now Janet Yellen has inherited this legacy? Well, one of the things that happened
in the 2008 crisis is that banks froze up and wouldn’t lend to each other.
They were all scared to lend to each other, and our system is such a fraud, that at the end of each day, they
all have to be able to borrow digits from each other that
were created from nothing just to keep the whole smoke-and-mirrors game
going. They all have to do this interbank lending to keep things balanced. Well, if one bank won’t lend to another and they
don’t have any reserves, the whole system freezes up. Now, if you’ve got all these excess
reserves that are on their balance sheet and you pay them interest to
keep the reserves there and not use this as a basis of
fractional reserve lending, they’re going to be liquid.
This basically prevents bank runs *by* banks *on* banks.
It’s not a public bank run with the the public lining up at the doors. It’s a bank run where
one bank is trying to get their currency out of
another or won’t lend to another, and so this keeps things liquid.
Right now, what this has done though, the banks get to use this
stuff in the middle of the day. And so, you see the use of margin in
the stock market going to record levels. You see the stock market going to record
levels. Things like – I follow collector cars – they’ve been going astronomical. The number
of 10-million-dollar cars out there now is just absolutely insane. And there are
cars now selling for *30* million dollars. Wine collections, art – it’s all
going ballistic at this point. And all bubbles pop. This is the average price of a new home divided
by the median annual household income. Normally, 3, 4 times your income is about
what you can afford with a house. When you drop interest rates, the affordability
goes up, so people pay more for a house. But interest rates don’t stay in one spot forever;
they *have* to revert some time or another, and all these people are going to be
trapped. Every bubble pops; that’s a bubble. We are in for something big again, and this
time it’s going to be more horrific than the crash of 2008, simply because the response
to 2008 created a lot of stored energy. And then when the market crashes, that energy is released in the opposite direction. That previous chart of the hyperinflation of base money, well,
we’re going to get a reaction from all of this. Whatever bubble you’re in, the
opposite happens of what is of greatest benefit
to the most people. Right now, if we went into
big inflation or hyperinflation, the average Joe Six-pack would
get rewarded for mass stupidity. They’re all out on credit; we’re in a
credit boom, we’re in a bond bubble; those bubbles have to pop. And the
popping of a credit bubble is deflationary. It’s deflationary… and history’s crystal-
clear on that. A lot of the gold bugs say, you know, the Federal Reserve and central banks,
they’re creating money, which they are, unprecedented; but, they’re actually inflating to fight the deflation
that started to set in the late 2008, early 2009. And if you look back at history,
as you say, every major debt and financial asset bubble in history – the
railroad bubble of the early 1870s that peaked, followed by deflation; you know, the auto and farm bubble and
tractor bubble – that’s actually a tractor bubble that caused the Great Depression.
It was farms failing and it was smaller local banks failing that caused
the Great Depression and high unemployment. Deflation. Because the
deflation has to root out the massive debt, and the financial assets
that get over-inflated. And it’s good if we bring down the cost of living, if we
restructure debt, if we bring financial assets down; it actually improves our standard of living
long-term. But it is painful when it happens. People don’t – people think that the Federal Reserve can prevent deflation; that they control the money supply. Most people don’t realize that the Federal
Reserve controls *base* money only; and it’s an incredibly small
portion of – it’s so tiny! – right, and all they do is influence the rest of the economy
with interest rates and reserve balances and such. Well, you know, some people say the strategy didn’t work. Well no, it did work:
we would have been in a depression, just like the early ’30s. We were going there: banks
were melting down, financial institutions; *major* Fortune 100 companies
were failing, like AIG. We would have imploded because
once you have that much debt and leverage and things go wrong, it just
builds the other way. Like you say, you get a bubble on one end, you get a crash.
Bubbles don’t crack; they burst. So we were going into that, but
governments said no, we will do whatever it takes: Mario Draghi,
you know, Ben Bernanke… and they created trillions
of dollars to fill the hole. Well, all that does, it’s like taking more drugs to keep from coming down. I mean a drug addict
can keep taking more drugs until it kills them. Or until they just fall down and get dragged
into detox. It’s [the] exact same thing. Debt, especially when it’s extreme,
is a financial enhancing drug: it gives you more than you deserve,
makes you feel better in the short-term. And, but when it’s over, you have to go
through a detox, as they would call it: a debt detox. And that’s where you get deflation. This is the demographics of the
United States back in the year 1940, and it’s broken into five-year age groups. And what I’m going to show you here is
the baby boom and one of the reasons that we’re going into this
deflationary scenario, and we’re also in this swing from
individualism to collectivism. This is a pendulum, a cycle that just
goes back and forth throughout time. And this is the greatest threat to your well-being
and the well-being of the economy – and, freedom. We’re going through a period
where this demographic is going to cause some
huge problems. So, here we are in 1950 and you can see the
beginning of that baby boom taking
off: 1960, 1970, and this wave – now, the reason I’ve got this broken up
into these different colors – children are the ultimate consumers: they consume
everything, they produce nothing – except a quality of life for their parents;
you know, a big reward as far as seeing them grow up and so on. But economically, children are an economic
loss. They consume economic energy. What you’re seeing here
is this wave coming into working-age. The green area
is sort of a break-even area; that’s when people are getting a job and it might be a
minimum-wage job or something like that, and uh, might be sharing an
apartment with a few other people. And then, as you get into the yellow
area you start to become a net positive for society. You’re paying income tax,
you’re producing more than you consume, and then you get into what’s called
the maximum spending demographic. The maximum spending
demographic is ages 45 to 54. And this group lives in the largest houses of their
lifetimes; they’re driving the most cars of their lifetimes; they’re sending their kids off to
college; they’re spending A LOT. Then, the kids – then they become empty-nesters;
that’s the maximum saving demographic. Once the kids are gone, off to college, they
go, “holy moly, we didn’t save anything! We want to retire in five years or ten years!”
And so they start saving. And then, you get to the point
where they retire and they become maximum social burden
demographic, I call it, simply because they’re liquidating assets; they’re pulling –
they’ve got their stocks and their savings and each year they’re going to liquidate
some of those to live. And the only driver that in – the economic driver is the medical industry; they drive the
medical industry. So economically, the maximum social burden
group is a net loss for the prosperity of society, the
prosperity of an economy. And so, I’m going to go back again and you can see that that maximum social
burden group almost didn’t exist in 1940. And there’s a lot of people of that working
age and maximum spending age supporting the few people that were of
the maximum social burden category. And then we get the baby boom
sweeping through and in the ’80s and that stock market boom
of the ’90s and all the way up to 2000, that yellow area that
really drives the economy was growing every year. Now, we have an economy where it’s
supposed to grow at about 3% or it’s going to stall; we have, we inflate the currency supply at
about that rate and… but now, after the year
2000, we’ve got 2010, the peak of the maximum
spending demographic, and from now on it’s sort of downhill. Maximum savers, they do
help drive the stock market, but look at that maximum social burden
category and look at what happens next. So we are going into this
time period right now. Now, the reason there’s no children
on there is they haven’t been born yet. But if you look at… you know, when I first
presented this a couple of years ago, birth rates have been falling for
quite a while now, and they’ve been falling at an even greater
speed since the crash of ’08. And if you look at the data from the Great
Depression, birth rates just fell off a cliff in the Great Depression. And
so you have less people, less people of the younger age coming into this demographic to
support the people that are retiring. They didn’t have the pill
during the Great Depression. Contraception was something that
was not within most people’s reach. So here it is automated, and you can see
that big wave sweeping through there. And if you could imagine
data for the children, it would be a much lower rate. And if
we do have a big economic pullback, you’re going to see that really reduce. So we’re in, most likely, some very serious
trouble here. Because all of our social programs and the way the economy
and the society is set up, everybody is expecting to be able to retire
at a certain age and live fairly comfortably off of the rest of us,
off of the government. Any comments on this, these different age groups:
maximum spending demographic, maximum savings – you’ve
got the same model we do. What is unique at this time in history – and it’s the main topic of my most recent book
– that’s why I call it the Demographic Cliff. This is the first time in most wealthy countries – there’s a few exceptions; let’s call it Sweden,
Switzerland, and Australia, countries like that – that have a larger millennial or echo
boom; but almost every other country has an echo boom that only comes up near the same heights or is much smaller
[like Germany and Japan] – oh, okay, so this echo boom here is
what you’re talking about – so my question to people is,
what – like you say, it is a pyramid. Each generation has been larger and more wealthy to help pay off the debts or the accumulation
from an aging generation before them. What happens when the millennial is having to
support a generation that’s actually larger than them? And what happens when there’s
not enough for them to drive house prices back? I’ve got a
model now for housing that says, people spend the most on housing
at age 41, but then when they die, at age 79 or 80 on average,
they become sellers. So I have to subtract the dyers from
the buyers, and when I do that, baby boomers are going to be dying at
higher rates than the millennials are going to be buying. At some point there’s going
to be net negative demand for housing. Everybody thinks, oh, we’re going to
need more housing for them. No – not when a smaller generation follows a
larger. So, for entitlements, that’s huge; There is no way this next generation in the US, nevertheless in
Japan or Europe where they’re much smaller, can even hope to pay the entitlements [that have]
been promised the baby boomers; it’s a fairy tale. And, housing will never be the same. We saw the Bob Hope generation come out of World War II, the first
middle-class generation in history, where the average person could
buy a house on a mortgage. That was not the case in the Roaring
Twenties, even; only the [affluent?] could do that. That so that was a big boon for housing; and
housing went up, the Depression went away. Then the baby boom comes;
unprecedented numbers. All of our lifetimes, housing’s gone up
with a few exceptions here and there. Housing is going to do well to go sideways for the coming decades, nevertheless go up much again, because of this generational shift.
We’ve never seen this in history. So now that we’ve covered three of the
major components for deflation, I wanted to show you one
of the real biggies here. And this one is the convergence of cycles. There’s a whole bunch of cycles. The
first one is the wealth distribution cycle, and I want to use my own family as part
of a demonstration of this. This is my father. He’s right here, he’s about the age
where he enlisted in the army to fight in World War II. He fought
in the Battle of the Bulge; he was among the troops
that liberated Dachau. Here he is in the mid ’50s; he was manager of an auto parts store
that sold high-performance equipment. And here’s his tax return from 1955; this would have been, he would have been filing
this about a month and a half after I was born. And so, what you see here, is that he’s
a store manager in Salem, Oregon, and his income was about 9600 bucks, and he paid about 1160 bucks in tax, for an effective tax rate
of about twelve percent. And you say, well, he only paid 12% because he didn’t make
very much, so he’s in a really low tax bracket. But wait! This is median home values, this is US Census
Bureau data, and here we have 1950 and 1960, so we’re going to Oregon, 1950… a
median price single-family home was 6800 bucks, and in
1960 it was $10,500. So, I’m going to say probably 8500
dollars as a happy medium there. Today, in Los Angeles where I live, a single-
family median price home is 360,000. Now, he was making enough – making 9600
bucks he was making 1100 bucks more than the cost of the average
home in Salem, Oregon. So, a auto-parts store manager
would have to be making 360- to maybe 420,000 dollars, and then paying only 12% tax on it, to equate
to the same amount. And it’s part of this wealth distribution cycle. This is the amount
of national income that the top 1% earns, and back in the ’20s, the
end of the roaring ’20s, it was above 20%, of the national income,
was going to the top 1% of the income earners. There’s a trough here in the ’70s where
it got down to just 9%, but it’s back up to 20%. And so, you know, in this area,
the middle class was doing better, but – and paying less taxes – but, on the
trip there, was the Great Depression, right here. So, getting back to that is going to be
a very deflationary, painful thing. This, we’ve already seen the baby boom demographic, but I just need to show you one thing here. You recall that the maximum spending
demographic drives the economy. The maximum social burden puts
deflationary pressure on the economy; they sell their stocks, bonds, and
real estate to survive, and they don’t produce anything. But what I want to point out is that there’s about 6 times more people driving
the economy here in 1940 than there are putting deflationary
pressure on it. And when you watch
this wave go through, the drivers are always more until
just the last couple of decades here, and now the people putting
deflationary pressure on the economy exceed the number of people
driving the economy. So if you could chart this out, with time on that axis and the energy
going into the economy on this axis, the curve would probably
look something like this. And I believe that we are right
about here, right about now. And now for the next cycle in this big
convergence, the stock market cycle. This is the S&P 500 P/E ratios. A P/E ratio is the price of a stock per share, divided by the annual earnings
of that company per share. And if you’re paying somewhere
between 10 to 14 times annual earnings, that’s fair value. Anything
under 10 is undervalued, 14 to 20 is overvalued, and
anything over 20 is bubble territory. And here comes the data –
and what is important here is that when the stock
market goes into a bubble, without exception, it has to visit undervalued
before a new bull market can begin. Except for this time, the bubble, biggest
bubble in history in the year 2000. And when it popped, we went down to fair
value and bounced back up into a bubble. Do you really think that a new bull market can
begin from here? That we’re not going to visit extreme under-valuations? I don’t
think so, I think that we *have* to visit extreme under-valuations before
a new, solid bull market can begin. And now for probably the biggest
factor in this convergence of cycles: This is Nikolai Kondratiev. He’s a Russian economist that Lenin commissioned
to prove that capitalism wouldn’t work. He went away for a couple of years to do his
studies and came back with his findings, that capitalism was the superior system
and would work marvelously well, but it would always suffer from these
long-wave, boom-bust cycles – to which he gave the names of seasons –
of spring, summer, autumn, and winter. We’ll come back to this in some
other episode and really dig into it. But for now what you need to know, is that the winter is the deflationary season;
the last winter was the Great Depression. And they used to call this the 50-year cycle, but
lately it’s gotten stretched out and takes longer. Now, I believe, that it’s got to be the
length of a human lifetime. And the reason is that the winter is deflationary, and the people that were old enough to be
of working age and have young families, that lost the house, lost
their job, lost the family farm; they become very emotionally scarred. And they
become very risk-averse, and very very frugal; and in order to make all the same stupid
mistakes that we made in the Roaring Twenties that led to the Great Depression,
that generation has to die off. Well, they *have* died off, and we *have*
made all the same stupid mistakes. So this is very deflationary, should it happen.
And here’s the supporting evidence: this is interest rates, and what you see here
is that they go right along with the cycle. This is wholesale prices in the US, and
again, they go right along with the cycle. Until the point the Federal Reserve decides
that what we really need is constant inflation. This is one of the biggest cycles of all. It’s hard
for people to see, though; this East-West cycle takes about 500 years for the pendulum to
swing each direction, and 500 years back. It’s innovation and prosperity, swinging from
Asia, to Europe and North America, and back. And in the Dark Ages, China
was developing gunpowder. Then, China stagnated while we had the
Renaissance and Industrial Revolution. So, ingenuity and prosperity does
flow back and forth; and right now, you should be able to feel that the Western economies are
stagnating and have sort of stalled, while the growth in the Asian economies over
the last 20 years has been mind-boggling. And so this is very deflationary for the West. And here is probably one of the
most deflationary cycles of all: this is household debt as a
percentage of disposable income. And alarm bells should
really be going off when people owe more than their disposable
income: anytime this exceeds 100%. But I believe that this is also a cycle; and that
if we had data, if we could go back further, it would probably look like this. And what’s interesting is that this reflects
the seasons of the Kondratieff wave, of spring, summer, autumn, winter;
spring, summer, autumn, winter; And we’re going into a winter
and that’s very deflationary. The next cycle you’ve seen before; we learned
about this in episode 2. But it’s the shift in world monetary systems: the classical
gold standard, the gold exchange standard, the Bretton Woods system,
the US dollar standard, and there’s something that’s coming next;
these usually coincide with major wars. But whatever this next shift
is, it’s going to be chaotic, and it’s probably going to be a little
painful; it’s not going to be pretty. Right now, and we learned in Episode 3 how countries are abandoning the US
dollar standard at a blazing rate right now; it’s developing stress cracks,
and it’s going to implode. And here’s the thing, is that
that is going to be happening with the convergence
of all of these cycles. We have the East-West cycle; we
have the baby boom demographic; we have the wealth distribution cycle; household
debt as a percentage of disposable income; the stock market cycle; the Kondratieff wave;
and the shift in world monetary systems. And the thing about all these
cycles is that they have all peaked, and they’re starting to descend, which is deflationary. Deflation, deflation, deflation, deflation, deflation – and that is all happening at the time
when the world monetary system is developing stress cracks.
It’s about to implode – and it’s going to be extremely chaotic. These things are all going to
make it even more chaotic. So that’s the convergence of cycles
and all of these things are the reason that I am expecting deflation
before big inflation or hyperinflation. But just as I said in my book, any deflation
is probably going to be short-lived. This is the nightmare scenario
for every central banker, and all of the world’s central
bankers are Keynesians. They believe that they can
print their way to prosperity, even though they have proved
that you can’t, time after time; all it does is cause a wealth transfer.
When all of the world’s central banks start printing their currencies
into oblivion simultaneously, what you will see is a wealth transfer
where the vast majority becomes very poor and just a few people become very
rich. It’s horrible for the economy. But Japan is the prime example
that it does not work. You can’t print your way to prosperity. And here’s what you can do: educate
others. Protect yourself from what is coming. And please, share these videos
with everybody that you can. And until the next episode, thank
you very much for watching. You can do stuff now to be ahead of this, and be positioned right,
when this happens – cause this is inevitable. This *is* going to be the first time that we have
an economic event of this scale that is global – a small percentage of people are going
to make a fortune and do very well and most people are just
going to not know what hit ’em.

100 thoughts on “Top 4 Reasons For Deflation BEFORE Hyperinflation – Hidden Secrets Of Money Episode 6 (Mike Maloney)

  1. Two & half years ago I started purchasing small amounts of silver – in the pursuing weeks & by the end of may 2018 I had all but sold the silver. A lesson learned. How do I go about putting myself on the right side of the wealth transfer coming soon?

  2. Collectivism is a part of human nature and completely normal. You guys need to stop freaking out about it. Just like the military operates in units, so too is it efficient for humans to operate in the same manner. Free money is necessary to keep the working class afloat, as most wealth has been transferred to the 1%. The wealth hasn't disappeared, it's just being hoarded and concentrated because we failed to raise taxes at the proper rates to ensure that wealth gets redistributed to society.

  3. For these individualistic, hedonistic generationswith no feeling of communality it is good that the population decreases.

  4. Mike, Thank you so much. You explain the economy so well. I wish I had you as my economics teacher when I was in school ha ha ha. Great work.

  5. And when you add Airbnb, there is no need to buy a house.
    When millinials can Uber or Lyft a ride, there is no need to buy a car, ins, gas, maintenance, etc.

  6. It's now been 3 years since this video. Economy is still booming. Sure all things must come to an end. But if we had listened to this advice, we would have missed out on A LOT of currency exchange. Yes we should listen, but only in moderation.

  7. with all the wealth saved but when govt opens martial law it doesn't matter that much. share so everyone can turn the system down before dark age comes.

  8. Mike, you keep saying that we can protect ourselves now, over and over and over again… But you never tell us what exactly we need to do to protect ourselves. Can you tell us what we need to do?

  9. That chart at 21:03 compare that against a chart of the percentage of Americans are immigrants. Immigration lowers wages on the working and middle class and increases profits on the upper class.

    https://cis.org/sites/default/files/2017-10/camarota-pop-f1.png
    https://imgur.com/Xgs1WZn

  10. How the hell deflation, when for first 5 episodes we were hearing about massive money printing add how paper money will be worthless. And the price of gold will skyrocket??

  11. Its wrong that you said birth rates are falling and less people are coming to support… The population is growing like never before… 2030 will see close to 9 billion population… asia is growing like crazy … its not gold… its food production, the much necessity thing … gold is just a showcase and only create greed

  12. From listening to harry dent talk one would still beg the question, if debt restructuring maybe great in the long term but painful for all but the select few in the beginning who prepared for it, how do we keep p.o.s. like the Fed and such from causing the issue of restructuring in the first place.

  13. It compelled everyone– small and great alike, rich and poor, slave and citizen—to be branded on the right hand or on the forehead, and made it illegal for anyone to buy or sell anything unless he had been branded with the name of the beast or with the number of its name. rev 13:16,17

  14. 2018 : The median price of homes currently listed in California is $539,000 while the median price of homes that sold is $486,300. numbers from zillow

  15. If This is all true then we’re screwed with the long night cause if you think we’re going to have a boom of children any time in the future without complete demographic and cultural replacement you’d be wrong. Birth rates are most affected by women’s rights. Just google how to solve overpopulation and you’ll get endless studies on giving women rights will lower population. And would anyone realistically take women’s rights? Definitely not so prepare for the long night.

  16. It's 2018, December. Gold is $1,250 per ounce, silver $14 per ounce. It's time to buy buy buy. And remember to HOLD, do NOT sell unless you are STARVING. Greatest wealth transfer in history will happen in next decade or two. Buy buy buy!

  17. His birthdate graph forecast for 2030 is screwed up. It is really high because he didn’t adjust for deaths coming in from the age categories coming in from the left at all. You can see in 2000, 1990, etc that mortality rate is somewhat consistent then all of a sudden people stop dying in 2020 and 2030?!! Your forecast is wrong. Is this the type of logic that you are basing all the rest of your theories on? This is really not a difficult error to catch either. How many other of your forecasts are out of whack?

  18. The wealth distribution cycle graph at 21:30 clearly shows something happened in about 1980 that resulted in the rich getting much wealthier and the poor getting much poorer. This was Reaganomics: destruction of unions, increased globalism, lower taxes on the rich and deregulation of industry. The result is what we have now – a smaller middle class, an oligarchy poised for turmoil and another depression on the way.

  19. There is one other thing. Our Constitution tells us money is silver and gold but in the 30 Roosevelt stole the peoples gold. Whether paper is money or silver is money is to be seen.

  20. 0:29 The QE of 2008, and all of the QE's for that matter had NO effect on inflation in the economy because the QE dollars was issued directly to the companies that were faltering or about to go under and that money was placed, essentially, in stagnant accounts at those companies. Those QE dollars DID NOT make it into the general economy like M1 and "Money in Circulation" (both of which are incidentally increasing each year at rates of roughly 6 and 9 percent per annum, respectively) The QE money, as I mentioned Does NOT go into the general economy but is issued to buy the toxic assets (bonds) of the companies (that would have otherwise gone under) and placed in stagnant (think purgatory) accounts. There those QE dollars remain until the bonds are retired and the QE dollars are returned to the government/treasury or Fed. So, to say that this sudden spike in monetary base is even more urgent reason to buy gold and silver is a little misleading because ,while yes, technically the QE money did increase the monetary base, that portion of the monetary base which was increased by QE is sitting in stagnant accounts and not participating in inflation in the general economy. Someone tell me and explain if this is wrong but I am confident it is all accurate and correct.

  21. Sydney R/E is down about 5% fr 2018. This is good for renters I guess and first home buyers. Big cause is probably withdrawal of hot Chinese yuan. However the Chinese gov , like USA, seems to have plenty for military and foreign aid.

  22. I'd like the collective to absorb my debt. Residents of nursing homes probably a big expense. Wh just had a Royal Commission into corrupt banking practices and now appear to be having a Royal Commission into aged care.

  23. Supposed to be oversupply of housing now in Sydney also driving down realty prices. Immigration maybe going down too as many think Australia is too crowded.
    Sydney water is going to come from a desalination plant which will cost more. A drop in construction may lead to unemployment for architects, construction workers, R/E agents et al.
    Apparently the London City square mile is full of building cranes. Crash in the making?

  24. I really love this presentation. I follow Harry Dent too and appreciate his work, but I don't follow where he says, "A tractor bubble caused the Great Depression."

  25. I didn’t understand when he said if we go into hyperinflation the housing prices will drop, wouldn’t they go up instead of down? He said we would go into foreclosure, but if the price will rise on your house isn’t that a good thing?

  26. I am interested in seeing the world burn as the thought of money and currency dies. I have a cow to trade so I will be ok. you find your cow to trade. you go leard a trade skill or two.

  27. As Australia's vast amount's of natural resources are raped by the 'World Zionist Government' .Voting is rigged fools !Generational Australians who built Australia and fought in two world wars fighting and dying for the freedoms of other peoples countries, by sacrificing hundreds of thousands of our beautiful Australian 'Men'.  Now those Australian families are being exterminated generationally and replaced by mainly foreign third world moronic breeders . Who better fit the world zionist corporates plans for better Modern Pavlovian Helotism.! What makes the best slave ? The one who thinks they are free !

  28. I guess if you take a look in what happened in the Greek economy in the years since the euro implementation till today you will see that someone is clearly performing a deflation/hyperinflation controlled experiment…. you can see to some extent the future you are predicting

  29. I Really do love these videos, and I believe the U.S. was hoping for another baby boom with the Iraq / Afghanistan "Wars" (undeclared) … the wrench in the cog is exactly how I'm able to receive your videos… technology … the whole world is now connected, so how does that change these cycles? Does it stretch even farther, or will enough people come together and realize it's all bullshit?

  30. I enjoyed the series. However, you can live your entire life without knowing any of this and still thrive. People need to live within their means and invest while keeping consumer debt in check. Life is simple.

  31. So, what do you do when they try to forfeit your house illegally, and try to justify it, when you make over 10,000% profit on it?

  32. Great videos! Though, I think maybe a bigger crisis in the history of mankind (3:00) was when Homo Sapiens was reduced to around 10,000 individuals around 200,000 years ago. As bad as this thing get I don't think it will get that bad.

  33. 17:30 Think about what he is saying about housing when every western country is having mass immigration shoved down their throats…..Replacement consumers to an aging population?

  34. Thankfully there is now an alternative Monetary system available to the masses – https://affiliate.kcbank.io/?s=one2one

  35. Mr Deflation! Sir Harry Dent… read your Demographic Cliff and read your Zero Hour…. basically a rehash of the 1st book. Interesting demographic trends that make sense. Where Harry is wrong is his timing. He makes bold prediction of deflation from 2014 to 2020. Getting his books in the public Library means I can look, measure and see how his predictions have preformed in that 2014 to 2020 window. He is 9 months away from being very wrong on gold and interest rates which he states will be 400 USD per oz and super low rates-to a point where he suggests buying 30 year bonds.

    He's wrong on his deflation predictions (unless something happens in 9 mos), but you have to admit that Harry has balls and sticks his neck out for what he believes in.

  36. The best investment is to save gold not money . Because , money will always lose value . But , gold will maintains its value

  37. The main reason for Deflation is malinvestment, investment in wrong areas, this is what printing money creates, the demographic situation only exacerbates the problem, the reason of why the stock market will fall is malinvestment. In the end of the business cycle this is what you get.

  38. I really love listening to these videos over and over again. It is a great way to remain focused within crazy times.

  39. Ur great sir iam from India iam Ur fan I would like to learn more from I have just started watching Ur series hidden secrets of money

  40. I'm not being a very good participant in the "Max Spending" demographic. And I predict that I will be a terrible participant in the "Max Saving" demographic.
    But now I know why Immigrants are being imported. As well as how the UN Agenda 2030 will fail which will bring about the One World Order and greatest transfer of private institutions and Private Property to the State religion.

  41. Good sir I beg of you to reply! I accept you are not a financial advisor!!! I am in a weird situation torn between building up my fake currency and building up my real money… I need fake to get real but it’s hard to tell for sure when we pop… so idk if I should focus more on fake to buy more real or if I should take what I got and go real out rite… is there a way today to actually use real money in place of fake??

  42. I'm going to have to watch this series probably 10 – 20 times to absorb and be come fluent in understanding.

  43. Money invest in wet lands dry lands ,orphans ,temples ,churches ,real estate ,savings , fixed deposits , flight charges , stock market , mutuval funds all these are my savings and expinndutres . For these billion amount in not sufficient .this is my savings at my present position.

  44. 17:57 yes I agree housing will not be in short supply in the future due to a slower population growth. But have you factor in the influx of new citizens? Those so call " new citizens " might just be able to slow down or even stop the devaluation of houses.

  45. Would love to watch your viseos on LBRY (Library) https://api.lbry.com/user/refer?r=HZFuio65srzmMAPH4GLS3Ypp8z2616Kk

  46. The deception is all from banks that causes wars to hide their money grab every war is a distraction for hiding the banksters sick lies!

  47. Rats wrong you talking about bullshit. New era means new solution you dosent have it we watching you rats how you building something what dosent have fundament

  48. What will happen to house prices , simple , they will import people and create slum lords, cause they just need more poor people on mass to prop up land values, lol, ponzi much ?

  49. Dept detox ???? God ALMIGHTY will pay back those that put the drugs to our bodies mind and souls for sure !!! Yes to their faces for sure cause if we knew what we were getting into none of us would have ever taken they're DRUGS !!!

  50. Mike please make more of these series. You are one of the only Youtubers that go in this deep and it helps people that are truly needing to get informed. Thank you and God bless.

  51. If you have deflation prior to inflation, you MUST have some CA$H on hand to make it thru the deflationary period. If you don't, you will be $elling your PM at a loss. 🙁

  52. Mike you are blessed to have in this world that dominated by corrupt Globalist. I am really thankful that I found your video.

  53. Mike, one thing your keeping out of the data is that the Great Depression was by design and was set up by the Bankers Morgans, Rockafellers Rothchilds… Just as was the 2008 these guys are robbing the people by design. Great data, Thanks

  54. 17:50 sec in – and this is why the EU is bringing in any and all 'refugees' they can. More people of working age who need housing, and so keeping the housing market afloat – if they can, because the banks can't allow housing to go down in price through lack of demand.

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