ColdFusion is lying: economic illiteracy & ethics.

taxation and trade are the two major
ways that governments can raise money this raise money is used to pay back the central bank loans with interest so when governments use the central banks to bail out private banks for their risky behavior the government's are left with the debt which eventually has to be paid back by the taxpayers in the future I guess you would have to be fifteen years old or older to remember that Barack Obama announced that all of that money turned a profit that the bailout money the loans made to banks that it was paid back with interest anyone in the audience more than 15 years old anyone in the audience read the front page of the newspaper anyone in the audience know how to use Google hears bailout tracker one of the first results you're gonna get on Google yes the 700 billion dollar bailout package was paid back realizing a profit for the government United States of America of 121 billion dollars so even a statement this simple from ColdFusion even it's even this simple that when the government provides a bailout to banks that that's money being stolen from taxpayers and then to be paid back by the taxpayers even that is false and I don't think he's intentionally lying it's just mind-blowing to me that people really do generate this kind of fake news seemingly with good intentions taxation and trade are the two major ways that governments can raise money this raise money is used to pay back the central bank loans with interest so when governments use the central bank's to bail out private banks for their risky behavior the governments are left with the debt which eventually has to be paid back by the taxpayers in the future it's just mind-blowing to me that people really do generate this kind of fake news seemingly with good intentions right seemingly but what fundamentally is his intention he wants to sound important he wants to sound like an expert and I think consciously or unconsciously he's just seeking out the sources on the internet that make him feel special that make him feel like he knows something other people don't know and guess what you don't even know what's on the front page of the newspaper that those feelings didn't cost the US taxpayer a dime they actually turned a profit for the US taxpayer you know what maybe there still is a really interesting critique to offer of that kind of bail I'm the world's most cynical person about quantitative easing I formerly researched it and wrote papers about it in university I think those papers on the Internet if not I can post them on my blog now you know what I have a bias here and I'm actually very much morally opposed to and even kind of economically opposed to the choices that the US government made however my analysis is not based on a lie Elya we discussed that money printing leads to inflation so why haven't we seen it yet well we have we've seen inflation globally in housing prices and stock markets I would be the first person to admit that the terminology we use when discussing economics in English is baffling it's not part of the natural range of expression in the English language it's really confusing to people even with the best of intentions and people who are highly intelligent unfortunately coldfusion this YouTube channel is neither highly intelligent nor does he have the best of intentions I don't think he's intentionally lying to you I think he's someone who is uncritically hearing and regurgitating other people's incredibly biased false and misleading statements about economics while he has no understanding of economics of his own think about what he just said in the short clip that I just played for you Elya we discussed that money printing leads to inflation so why haven't we seen it yet his whole analysis up to this point has been claiming that there should be massive inflation in our economy because of the government policies he's been criticizing and there isn't so he then asked the question well why haven't we Dean disinflation and he says well we have but it's in the stock market and in housing prices no no no no homie what's the meaning of the word inflation again oh yeah right it's the decline in purchasing power of money in layman's terms your one dollar bill is worth less and less your one dollar bill will buy you less and less whether that be the Japanese yen or the Swiss franc or whatever currency it is right that's the meaning of the word inflation if it's context you cannot explain away the fact that your theory is blatantly empirically wrong by now claiming that the reason why we haven't seen inflation meaning the declining value of dollars when purchasing these the declining purchasing power of dollars you can't explain that whoever said oh well there is inflation in the housing market where the word inflation in that part of the sentence suddenly has a totally different what does that mean it means the price of a house is more and more expensive that's not the same meaning at all those two parts the argument don't fit together at all it's not just a logical error it's not just a reasoning error this is in numeracy this is numerical illiteracy this shows a fundamental lack of competence and that this is someone who is just clicking around the internet taking bits and pieces of information from frankly extremist sources and cobbling to get them together in a YouTube video that has an aesthetically appealing package and has appealed its appeal to hundreds of thousands of people but it's really burdening people with quite dangerous misinformation the printed money ends up in all of these assets pushing up the prices so the few people who earn large amounts of stocks end up ridiculously wealthy while there's no growth in the real economy the rich get richer and Paul get poorer you notice how casually he throughout those two claims without a single chart or a single fact to prove them there's no real growth in the economy really I've made YouTube videos debunking that claim it's mostly people on the left-wing who claim that but sometimes right-wing people sometimes libertarians claim this to people who want to go back to the gold standard there's an emotional growth in the economy really in the last twenty years a few people watch just look around you are there new houses being built are there new skyscrapers being built in the city we live you know what I've been to some neighborhoods of Detroit where I believe there is no growth economy if you talk about the United States although as a whole if you're talking about your whole if Chuck McKenna you think there's been no growth in the economy I've already made YouTube videos debunking this you think the poor have gotten poorer but you haven't looked at you haven't presented a single statistic 1960 to 2020 you think in the United States of America the program for it is just not true it's a lie that's so easily was in a no way well and what was this meant to sort of distract us from what was the claim he was he was backing up with this totally irrelevant you know allusion to the rich getting richer the poor getting ports are these sort of left-wing bogeyman of 21st century economic what was this point in the first place the printed money ends up in all of these assets pushing up the prices so the few people here in large amounts of stocks end up ridiculously wealthy while there's no growth in the real economy all right his claim is that the value of stocks on the stock market is created by and defined by the amount of money being printed by the government okay really let's let's just let's just let's just break this down Apple Computer the people who make cell phones computers very expensive watches do you think that the value of Apple Computer on the stock market is rising and falling or is created by the American government money that is just laughably economically illiterate it's just stupid and it's being presented you hear it with a gravely serious tone by someone who claims he's unmasking the illusions of economics for your enlightenment the value of Apple Computer is based on their predicted future earnings period is Apple Computer as a stock is the value of the stock higher than it should be probably you know why advertising everyone's seen the logo people want to buy the stock because they see the logo they see the test but sure there are factors that skew that but that's why Apple is so sensitive to the slightest bad news that when the iPhone 10 came out and wasn't selling that well you could go how is it possible for such a successful company as Apple Computer to be in trouble if they put out just one new cellphone model that's not stupid it's because the value of their stock on the stock market is based on the perception of future earnings period why are people putting millions and billions of dollars into Tesla car company rightly or wrongly by the way I'm not making a prediction about the future that come in it's because they believe more and more people want to buy those cars they're gonna manufacture more and more Cup it's the perception of future it's the perception of the potential of growth do you believe that the value of Tesla cars the value of that carburetor is based on the amount of money being printed by the US government this is just a joke this is a joke from the perspective of someone who has done high school level economics remember in my Enron video how I talks about how they use financial instruments to bet on the weather these crazy classes of financial instruments is what brought down the housing market and the subsequent global economy in 2008 no it wasn't again quick Google search what caused the crash in 2008 Oh does this sound familiar to you guys or any of you guys over ten years old and you can remember the phrase subprime mortgage do you do you guys wanna what sorry what was it the cost the 2008 financial crisis again it was the housing boom followed by the housing bust which occurred in 2006 2006 and so and then so the reverberations of that that is peat there are people out there who had trillions of dollars invested in securities based upon mortgages and when people stopped paying their mortgages the value of securities vanished into thin air so you do not argue that this was a financial crisis that spilled over into the real economy you argue that it was a problem in the real economy particularly the housing mark yes that started the problem in the financial sector oh absolutely if people had kept paying their mortgages the Securities would have been good and we would have all lived happily ever after I do not believe that this youtuber ColdFusion is intentionally misleading or intentionally manipulating his audience I think he's so stupid I think he is so fundamentally economically illiterate that he is uncritically repeating things being said by a variety of crackpots and those crackpots have been intentionally lying to and manipulating their audience including cold fusion