Insights For Money & Inflation
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Insights For Money & Inflation as PDF for free.
More details
- Words: 993
- Pages: 68
Fiat Money & Inflation
Yuexin Zhu 2008.10
Today’s talk
What is Money Fiat money and hard money Money US money history
What is Inflation Hyperinflation What’s happening now
Inflation
Today’s talk
What is Money Fiat money and hard money US money history What is Inflation Hyperinflation What’s happening now
Money
What is Money
Money has three characteristics Store
of value Medium of exchange Unit of count
But Ultimately, we would say… Money is a claim of Human Labor
Today’s talk
What is Money Fiat money and hard money US money history
What is Inflation Hyperinflation What’s happening now
Money categorization
Mone y
Fiat Money
Hard Money
Money categorization Fiat Money
Hard Money
Has been used to back up fiat money until
Old US Dollar in 1930s
Current US Dollar
Today’s talk
What is Money Fiat money and hard money US money history What is Inflation Hyperinflation What’s happening now
Before 1933:
US dollar is as valuable as hard money. Every US citizen can exchange 25 dollars with 1 ounce of Gold at any time.
In 1933: Roosevelt confiscated all privately held gold. US dollar can no longer be exchanged with gold by US citizens. Gold standard is partially removed.
Bretton Woods Agreement, 1944
Fixed exchange rate
$35 = 1 ounce of
In 1971, Nixon closed the Gold Exchange Window
In 1971: Bretton Woods Agreement collapsed. US dollar is completely decoupled with gold.
After 1971 till now
We are living in a world that Us dollar is backed by Debt, instead of by Gold, which means:
US Fed can issue any amount of dollar as much as they like out of of thin air
US Money History
1933: Gold standard partially
1971: Gold standard completely destroyed
Today’s talk
What is Money Fiat money and hard money US money history
What is Inflation Hyperinflation What’s happening now
Inflation
Most people think of Inflation as “rising prices”, but that’s not quite right Inflation is always a monetary phenomenon “rising prices” is only a symptom of inflation. The real cause is the devaluation of fiat money.
Inflation In most cases, inflation cannot be simply explained by “demand and supply inbalance” for goods and services.
Inflation is everywhere and always a monetary phenomenan
US price levels 1665 to estimated 2008
US price levels 1665 to estimated 2008
US price levels 1665 to estimated 2008
Revolutiona ry War 1776 - 1783
US price levels 1665 to estimated 2008
Revolutiona ry War 1776 - 1783
US price levels 1665 to estimated 2008
War of 1812 1812 1814
US price levels 1665 to estimated 2008
War of 1812 1812 1814
US price levels 1665 to estimated 2008
200 years, Price level has virtually no change
US price levels 1665 to estimated 2008
US price levels 1665 to estimated 2008
Civil War 1861 1866
US price levels 1665 to estimated 2008
US price levels 1665 to estimated 2008
250 years, Price is still on the same level…
US price levels 1665 to estimated 2008
World War I 1914 1918
World War II 1941 1945
US price levels 1665 to estimated 2008
Vietnam War 1965 - 1975
US price levels 1665 to estimated 2008 Vietnam War 1965 - 1975 World War II 1941 - 1945 World War I 1916 - 1918 Civil War 1861 - 1865 War of 1812 1812 - 1814 Revolutionary war 1776 - 1783
US price levels from 1665 to 1975
US price levels 1665 to estimated 2008
Gold removed as monetary reserve 1971 1933
Today’s talk
What is Money Fiat money and hard money US money history
What is Inflation Hyperinflation What’s happening now
Hyperinflation
Hyperinflation is inflation that is "out of control", a condition in which prices increase rapidly as a currency loses its value. Reason: Defeat of War Economic depression.
People lost confidence on the government and its fiat money.
1923, Germany
1945 1946 Hungary
Hyperinflation in Zimbabwe, 2008 CPI is…
231 000 000%
Today’s talk
What is Money Fiat money and hard money US money history
What is Inflation Hyperinflation What’s happening now
What’s happening now in our world? Are we living better than people of Zimbabwe? We are living a time of deceit. Gov./Bankers can deprive us of our wealther by “invisible tax”Inflation. Remember: Fiat money is not money, they are paper. Maybe after one night, you will lose
“Paper money eventually returns to its intrinsic value... zero.” -Voltaire (1694 -1778)
No matter how politicians plead that they are protecting dollar…
Dollar has been constantly losing purchasing power
“ by a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.” —— John Maynard
Print, Print, Print…
US National Debt
US National Debt 4.5 months for the latest trillion
300 years for the 1st trillion debts
Credit injection from Central banks
US’s 700 billion “bailout plan”
Not include 85 billion for bailing out AIG…. Freddie Mac & Fannie Mae…
South Korea has given out $100 billion Russia has spent $120 billion. Germany has earmarked $65 billion. United Kingdom has pledged $50 billion so far. Sweden just injected $200 billion to
With so many “credit” injected into market, what would you expect to happen in future?
Reference
“Crash Course” ， by Dr. Chris Martenson
“Currency War” （《货币战争》 ) ，
http://www.chrismartenson.com/ By Hongbing Song ，宋鸿兵
http://www.dollarcollapse.com/ Wikipedia ： keyword: Hyperinflation Movie: “America: from freedom to fascism” by Aaron Russo.
Thanks for attending! If you are more interested in the talk, please visit my blog at http://blog.sina.com.cn/wor dteller
Yuexin Zhu 2008.10
Today’s talk
What is Money Fiat money and hard money Money US money history
What is Inflation Hyperinflation What’s happening now
Inflation
Today’s talk
What is Money Fiat money and hard money US money history What is Inflation Hyperinflation What’s happening now
Money
What is Money
Money has three characteristics Store
of value Medium of exchange Unit of count
But Ultimately, we would say… Money is a claim of Human Labor
Today’s talk
What is Money Fiat money and hard money US money history
What is Inflation Hyperinflation What’s happening now
Money categorization
Mone y
Fiat Money
Hard Money
Money categorization Fiat Money
Hard Money
Has been used to back up fiat money until
Old US Dollar in 1930s
Current US Dollar
Today’s talk
What is Money Fiat money and hard money US money history What is Inflation Hyperinflation What’s happening now
Before 1933:
US dollar is as valuable as hard money. Every US citizen can exchange 25 dollars with 1 ounce of Gold at any time.
In 1933: Roosevelt confiscated all privately held gold. US dollar can no longer be exchanged with gold by US citizens. Gold standard is partially removed.
Bretton Woods Agreement, 1944
Fixed exchange rate
$35 = 1 ounce of
In 1971, Nixon closed the Gold Exchange Window
In 1971: Bretton Woods Agreement collapsed. US dollar is completely decoupled with gold.
After 1971 till now
We are living in a world that Us dollar is backed by Debt, instead of by Gold, which means:
US Fed can issue any amount of dollar as much as they like out of of thin air
US Money History
1933: Gold standard partially
1971: Gold standard completely destroyed
Today’s talk
What is Money Fiat money and hard money US money history
What is Inflation Hyperinflation What’s happening now
Inflation
Most people think of Inflation as “rising prices”, but that’s not quite right Inflation is always a monetary phenomenon “rising prices” is only a symptom of inflation. The real cause is the devaluation of fiat money.
Inflation In most cases, inflation cannot be simply explained by “demand and supply inbalance” for goods and services.
Inflation is everywhere and always a monetary phenomenan
US price levels 1665 to estimated 2008
US price levels 1665 to estimated 2008
US price levels 1665 to estimated 2008
Revolutiona ry War 1776 - 1783
US price levels 1665 to estimated 2008
Revolutiona ry War 1776 - 1783
US price levels 1665 to estimated 2008
War of 1812 1812 1814
US price levels 1665 to estimated 2008
War of 1812 1812 1814
US price levels 1665 to estimated 2008
200 years, Price level has virtually no change
US price levels 1665 to estimated 2008
US price levels 1665 to estimated 2008
Civil War 1861 1866
US price levels 1665 to estimated 2008
US price levels 1665 to estimated 2008
250 years, Price is still on the same level…
US price levels 1665 to estimated 2008
World War I 1914 1918
World War II 1941 1945
US price levels 1665 to estimated 2008
Vietnam War 1965 - 1975
US price levels 1665 to estimated 2008 Vietnam War 1965 - 1975 World War II 1941 - 1945 World War I 1916 - 1918 Civil War 1861 - 1865 War of 1812 1812 - 1814 Revolutionary war 1776 - 1783
US price levels from 1665 to 1975
US price levels 1665 to estimated 2008
Gold removed as monetary reserve 1971 1933
Today’s talk
What is Money Fiat money and hard money US money history
What is Inflation Hyperinflation What’s happening now
Hyperinflation
Hyperinflation is inflation that is "out of control", a condition in which prices increase rapidly as a currency loses its value. Reason: Defeat of War Economic depression.
People lost confidence on the government and its fiat money.
1923, Germany
1945 1946 Hungary
Hyperinflation in Zimbabwe, 2008 CPI is…
231 000 000%
Today’s talk
What is Money Fiat money and hard money US money history
What is Inflation Hyperinflation What’s happening now
What’s happening now in our world? Are we living better than people of Zimbabwe? We are living a time of deceit. Gov./Bankers can deprive us of our wealther by “invisible tax”Inflation. Remember: Fiat money is not money, they are paper. Maybe after one night, you will lose
“Paper money eventually returns to its intrinsic value... zero.” -Voltaire (1694 -1778)
No matter how politicians plead that they are protecting dollar…
Dollar has been constantly losing purchasing power
“ by a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.” —— John Maynard
Print, Print, Print…
US National Debt
US National Debt 4.5 months for the latest trillion
300 years for the 1st trillion debts
Credit injection from Central banks
US’s 700 billion “bailout plan”
Not include 85 billion for bailing out AIG…. Freddie Mac & Fannie Mae…
South Korea has given out $100 billion Russia has spent $120 billion. Germany has earmarked $65 billion. United Kingdom has pledged $50 billion so far. Sweden just injected $200 billion to
With so many “credit” injected into market, what would you expect to happen in future?
Reference
“Crash Course” ， by Dr. Chris Martenson
“Currency War” （《货币战争》 ) ，
http://www.chrismartenson.com/ By Hongbing Song ，宋鸿兵
http://www.dollarcollapse.com/ Wikipedia ： keyword: Hyperinflation Movie: “America: from freedom to fascism” by Aaron Russo.
Thanks for attending! If you are more interested in the talk, please visit my blog at http://blog.sina.com.cn/wor dteller
Related Documents
Insights For Money & Inflation
April 2020 6
Money Inflation
December 2019 5
Money Supply And Inflation
July 2020 11
Accounting For Inflation & Changing Prices
May 2020 6
Chapter 5 Money And Inflation
July 2020 6
Inflation
November 2019 43More Documents from "rimmi"
Insights For Money & Inflation
April 2020 6
Laporan 7
May 2020 17
Laporan 2 Zuli
April 2020 15
Laporan 2
May 2020 29
Laporan Pratikum_router Dasar
May 2020 19