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Lessons - How Excessive Money Printing Can Backfire | David Morgan - Founder of the Morgan Report · Success Story with Scott Clary

• 0:00
  Everything's going up in price like I so if you look at the major city
• 0:03
  So I'm originally from Toronto I'm Canadian I'm from Toronto and you can't buy it attached home for less than two million dollars
• 0:11
  And there's other there's other issues that are are stopping that but I mean the the average
• 0:16
  I think I think to live in Toronto you have to make about 200 K to be considered middle class
• 0:21
  $200,000 a year to be considered middle class and the salaries are not just the people are not just handing out
• 0:26
  $200,000 salaries and that carries over into everything
• 0:30
  So now you see now we're starting to see defects and made in major urban areas for sure
• 0:34
  Maybe maybe less so in like smaller in smaller cities where life seems more affordable
• 0:41
  But it obviously impacts everybody so what's so what's the fix for this like you know we try and we print money right
• 0:46
  We print money to
• 0:48
  You know to to help the economy when COVID happens to keep up with you know foreign entities that are also
• 0:55
  Printing money and to and to maintain that pace. So what's the alternative to this?
• 0:59
  Well, let me speak at that. You can re ask the question. I just listened to
• 1:07
  Mr. Ackerman Rick Ackerman from
• 1:10
  That's I think he's still in the Bay Area. I met him through a mutual friend a long time ago
• 1:14
  The guy that I introduced me was a
• 1:17
  actual
• 1:18
  day trader for a firm
• 1:21
  Anyway, he just did this interview and talked about CB Myers in the bookcase behind me in the middle part of there
• 1:28
  Probably have almost every book ever written by Mr. Myers. He wrote he's long deceased lived in Spokane by the way at one time
• 1:34
  Was Canadian
• 1:36
  moved to Spokane
• 1:38
  And wrote several books and he wrote probably the preeminent newsletter remember I told you I was a newsletter junkie back from my 20s
• 1:47
  He wrote Myers finance and energy and from my perspective it stood out there a few
• 1:53
  Writers that really stood out he was one of them
• 1:56
  And what he talked about was and this is from Rick's interview that was just very recent but all debts are paid
• 2:03
  Which means that you loan the money and you lose because you made a bad loan
• 2:09
  So your million dollar loan on that house that the mortgage holder could not pay
• 2:14
  In that case you get the house back. So that's not a really good example
• 2:18
  So you make a million dollar loan based on a signature saying it's God. I trust you. I'll pay you back
• 2:24
  You can't
• 2:25
  So the person or entity that loan that million dollars just paid for it. It's gone. It evaporates into monetary heaven is
• 2:33
  Jim dine she's to say
• 2:35
  Or on another loan of a million dollars someone takes Linda and Linda pays back the loan
• 2:42
  But the money that's involved is as we know from finance or accounting double entry book
• 2:47
  Keep one asset is a liability of somebody else, but the money exists
• 2:54
  So when the money is produced or the currency is produced by the loan
• 3:00
  In a free market if you make a bad loan you have to pay the price
• 3:04
  So you lose
• 3:05
  Hey, I saved up $10,000. I'm going to loan it to the government. I'm going to buy this bond
• 3:11
  And then the government says those bonds are invalid now. I'm not talking about the US although it could be
• 3:17
  But I'm not I'm going to use like bonds of the civil war for example
• 3:22
  You put up the cash and I'll who who paid
• 3:27
  Well the cash buyer of the bond paid for the bond and it was
• 3:33
  worthless
• 3:34
  So that money is gone
• 3:37
  For that person, but that money did go to the person that issued the bond and what do they do they bought munitions with it or whatever
• 3:46
  So anyway, I'll probably be laboring the point
• 3:49
  But the idea is that there could be as I said earlier
• 3:54
  A lot of deflation when these
• 3:57
  Housing prices come down because the market usually meets the conditions at hand
• 4:02
  Which means if the average person in Toronto is making I'll make up a number 80,000 a year and 200,000 required to buy a house
• 4:11
  Well the housing prices will probably come down or salaries go up
• 4:15
  I don't think the sellers will go up this time as Rick pointed out in his interview
• 4:19
  Back in the late 70s and 80s. It's called cost push inflation. I think that's a term. It's already remember
• 4:26
  But wages kept increasing. I remember when I started my aircraft job my first check
• 4:32
  I got I was a little uptight because it was greater than the contract I'd signed
• 4:39
  And so I was you know
• 4:42
  It's kind of
• 4:43
  kind of scared in a big corporation. I asked one of the
• 4:47
  People to dinner or was it I don't get it. This is actually oh, I don't worry about that. That's cola
• 4:54
  What's cola is that something you drink
• 4:56
  That's a cost of living adjustment
• 4:59
  Every so often
• 5:01
  And there'll be a cost of living adjustment your wages will go up based on the inflation rate
• 5:06
  So I just happen to be in that sweet spot with a cola contract
• 5:10
  demanded that we got an increase. Well, that's not happening this time
• 5:14
  So you're not going to see the wages go you might in a few cases here and there, but you're not going to see the enacted like it was
• 5:22
  When I was young I really really got that so you've got
• 5:26
  Static wages or lower wages
• 5:29
  with an increasing
• 5:31
  Cost of things that are needed like food and energy
• 5:35
  So you got a real squeeze in what's called stagflation really everything that you need cost more and wages are static are going down
• 5:42
  So really puts the hurt on the middle class pretty much eliminates the middle class over time
• 5:48
  I mean look, I don't know what you make. I'm not interested. I'm interested in you as a person not as
• 5:53
  You don't want to be happy healthy and wide and free yet
• 5:57
  You know your income level is and it's important to me. It is to you
• 6:01
  That the type of person you are and whether or not you're being treated in a manner by society
• 6:07
  That's cognizant with the ability that you have and it's not
• 6:11
  You already stated and I want to put words in your mascot and you can retract anything I'm saying
• 6:15
  But you know, we're in an unjust system
• 6:18
  That is skewed to a few at the expense of the many