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Has purchasing power declined due to money printing?

The facts may surprise you. Here are the numbers

Mike Norman considers the following as important:

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The facts may surprise you.

Here are the numbers
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.


  1. I heard the reason America went off the gold standard was because the Vietnam war was causing a giant deficit and the French president Charles De Gaul called them out.

  2. Why doesn't the government just spend 50 Trillion in a year then, and juice the market 500%?

  3. I think the Dollar will end with a revolt.

  4. bravo, Mike. Most interesting perspective.

    But how about explaining Gold price?! inflation? purchasing power decline?

  5. Der printin’ munnie!!!!

    From 8min on Brilliant Mike!!!!

  6. Yup! Even on the gold standard, the value of the gold is at least the cost in labour and energy of mining it. And if the price of gold falls below that, people stop mining it until the price rises enough to make mining it profitable, or the mining cost drops enough to make mining it profitable. Until then? No new gold.

    Trouble is that the mining cost rises over time as the easier plays get mined out. So that means the price of gold will rise to match the mining cost. And consequently a dollar has to be worth fewer and fewer grammes of gold if you want the dollar value to remain constant.

  7. The major cause of recent inflation was greedflation and higher interest rates

  8. If we ever went back on a Gold Standard taxes would go right up because then taxes and fees would have to pay for spending.

  9. It's interesting there is so much propaganda supporting a metal monetary standard. What do they hope to gain? Cornering the market? They are just in to ceding monetary sovereignty to a greater power they control? Qui bono?

  10. Thanks for doing this video Mike. I get what you said. So – does this mean that the limit on "gvt spending" is just "the market's appetite" for US Treasuries? As long as some are willing to hold US paper, there is no limit or detriment to boosting gvt spending? And does the quality of that spending matter? There was a time gvt spending got us the Hoover dam. Now gvt spending boosts google share price and bitcoin price? Not sure if thats about some multiplier but seems that current gvt spending just winds up in a few oligarch pockets? Just thinking out loud, not really a good question yet. I am not on the "debt creates inflation" track… i am on the "will US treasuries ever recover value" track and the "should i be expecting a us housing crash?" Track… best wishes!

  11. @financeeconomics1057

    the best example for me is housing affordability. It takes multiple income earners to be able to afford a home (including new & pre existing). a few decades ago, a single income earner could afford a home, car and provide for a family.

    • In Canada, a shortage of housing has sent rents/prices soaring over the last 1-2 years. Thanks to government incompetence.

  12. @financeeconomics1057

    true financialization of residential real estate especially has been a negative, raising prices/rents. higher prices are a drag on the general economy.

  13. 5 years financing to buy a mattress? the american family is overburdened with debt. the shadow banking industry running a muck again just like 2008.
    Back at that time 13% of all loans shadow banks, now 60%. All unregulated and the experts weigh in no one knows the systemic risk. Dodd Frank calls for 2 to 1 max leverage but no oversight, its worse than 2008 and long term capitol. How it ends who knows. Debt is the killer for americans due to fact inflated prices force people to borrow. God forbid they live within their means.

  14. Interesting points on inflation. I am interested. If you exclude the 20 pct highest incomes, how does the same numbers look?

    • Also, dont you need to deduct the taxes, if they rose or fell in the period. My sakary as a dishwasher when i was 13, could buy more gold, than my salary can today, and i am a chemist.

  15. Individual stocks are whatever they are, they overall all market is where the nearly risk free play is 🙂
    Born rich is little Tucker Carlson sucking off Putin 🤣
    The standard of living has never been higher, forget inflation.
    The problem is the better things get the more the masses want and feel deprive if others have it.

  16. Nice one, Mike. You didn't even mention the disruption to global supply chains, and sanctions, which have significantly contributed to rising prices since the pandemic.

  17. YouTube's algorithm is lame for not promoting this channel. Best economical channel on the site.

  18. People didn’t make very much money back then when movies cost a nickel. In 1920 the minimum wage was raised to $.33. From $.28.


    "Just when the caterpillar thought the world was ending, he turned into a butterfly." _Proverb

  20. Love you Mike but your logic is flawed here. The average wage you’re using is skewed by the ridiculous concentration of wealth and not what the “average person is making”. Richest 1% bag nearly twice as much wealth as the rest of the world put together over the past two years, how’s that not a loss of purchasing power. Your dad’s generation pribabky couldnt start their cars, but back in the day one income was enough to provide for a comfortable middle class life. Where as now your wife and cats probably need to work to make ends meet. The financialization you talked about is sucking the wealth of the world upwards into financial assets that are held by a fewer people. The government and the central banks are here to only facilitate that transfer of wealth upwards.

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