SNL Tim Geithner Parody




UPDATE: March 08, 2009 11:28 PM

As some people have pointed out below, this video below has some credibility issues. I am leaving it in this entry for now because I liked the Zimbabwe dollars segment at the beginning. Also, the story struck me as believable because it meshed with what I know of the Bear Stearns bailout and the Weimar hyperinflation:

  • Geithner was the fed official who played the most active role in the Bear Stearns bailout. It is fact that he pulled all nighters to try to resolve the situation. See Geithner Explains the Bear Stearns Rescue
  • Albania was devastated by earthquakes in 1967 and 1969.
  • In Weimar Germany, some debt was revalued, as described in the in the video.



My reaction: Scary video.


About the revaluing of debt mentioned in the video: I don't worry too much about this. I will write an entry explaining why both debt revaluation and gold confiscation are unlikely later tonight.

Also, my opinion that there will be no gold confiscation only applies to physically owned gold and the few safe equivalents (ie: Allocated in gold held in Switzerland). If you own paper gold, you will likely end up with worthless paper dollars.


Another observation: This is what a well produced YouTube video looks like. It puts the production quality of my videos to shame. I have done some research, and future videos will be of better quality.

This entry was posted in Currency_Collapse, Gold, Videos. Bookmark the permalink.

19 Responses to SNL Tim Geithner Parody

  1. dashxdr says:

    How ironic.

    George4title is the fellow that made that video, I've spoken to him often via youtube and blogtv. I've been pushing him to watch your videos and read your blog.

    And here you've found his videos instead.

    In terms of credibility, yours is much higher than George's. Your videos are fine, keep them coming and just allow quality to take care of itself.

  2. Hugo says:

    Watch out with George4title. He is not a reliable source. He was advertising a swindler. I use to watch his videos (I was even subscribed).

  3. Anonymous says:

    Eric,

    Be a bit more skeptical! This is obviously so bogus as to not even be funny. Visit the forum and check out other posts. This Twisted Avatar has an agenda and is almost surely NOT a doctor, did NOT have a conversation with a Fed employee. I'd pull this video if I were you.

  4. Anonymous says:

    Yes do pull this - looks fake

  5. Bowtie says:

    Don't worry... those Zimbabwe dollars expire every once in a while. I have two 100 billion dollar bills but they expired on December 31, 2008.

  6. Bowtie says:

    Also Eric, I just wanted to make a point. I owe a good amount of money to the federal government in the form of student loans. If the hyperinflation scenario plays out(I say if because I am still on the fence only because it has not happened in the US ever and it seems so conspiracy theoryesk to me) but I 100% promise you that the federal government will not allow me to pay back my same exact debt with the hyperinflated dollars. I am somewhat new to the Austrian school, but I have become infatuated with it. Recently I have been reading up on monetary history. A few months ago I read Fiat Money Inflation in France about the monetary history associated with the French Revolution in the 1790's. Back then the government required 2,3, or even more times repayment of what you borrowed, or threatened the death penalty. Further FDR confiscated private gold but allowed people to hold 5 ounces, about $5,000 in today's dollars of gold in private. Somewhere in the back of my mind I think to myself that the American people are beyond this and it could never happen again. And I try convince myself that there is no way people will stand for confiscation of gold, burning crops, and slaughtering livestock like FDR in the 30's. But this has happened so many times in history. I just started on this book: "40 centuries of Wage and Price Controls" Yes you read that right 4,000 years. Two authors put together a history of 4,000 years and demonstrate what happens in the inflations. If the hyperinflation scenario plays out, the government abuses will be unbelievable.

  7. Numonic says:

    I feel the same as Eric. I agree with everything in this except the revaluation of debt, unless that means making a new bill that is worth 1 trillion US dollar like the Rentenmark in Germany did with it's previous currency. either way it doesn't change anything and if the new currency is gold/silver then that is good because if the govt. tries to cover the debt with gold or silver that would have to push gold/silver up over a 1000%

    I think this guy in the video is on point.

    read what i wrote in my last few reply's in the "*****China is mobilizing its dollar reserves!***** " article.

    http://www.marketskeptics.com/2009/02/china-is-mobilizing-its-dollar-reserves.html

    The govt. will have to print larger bills because they can't print $100 bills fast enough to stop this massive credit contraction. And even with the larger bills, there will still be defaults because the debt is too large, so large the amount of dollars needed to cushion the crash of credit will make Zimbabwe dollar look like gold compared to the Federal Reserve Note when it's all said and done.

  8. Bowtie says:

    Numonic:

    If the fed moves to a gold/silver standard would that push gold/silver down in dollar terms as people gain confidence in a currency backed by metal?

  9. Numonic says:

    I don't think we are moving to a gold/silver backed paper currency and I think if the govt. tried to issue it, it would not be accepted by the people. I think people are going to only be accepting hard assets, physical gold/silver NOT gold/silver certificates. Trust in debt will be lost and only tangible assets will have value. This is why you want to hold the cold hard physical silver/gold in your own hands yourself. This is evident by the backwardation in the silver/gold market and the stock market loosing value everyday. Debt is loosing value and real things are gaining value. The govt. will not be in control of the money, the free market and people will as it always has been. The government is not trying to inflate the value of things, it's trying to inflate the value of debt with all these bailouts because when debt looses value, real things gain value. that is why the govt. is printing money like mad. They do not want the debt to default because that will be the end of debt. Credit is contracting because debt moves faster than the creation and movement of paper. The paper dollar was stretched to thin with all the lending and it can't stretch any more and thus is contracting and loosing value. If it crashes it's value will be 0 and that will be the end of debt and the value of tangible things will skyrocket. This is why the govt. does NOT want the market to crash or anyone to fail. Because the lie is that good debt would take over and the truth is there is no such thing as good debt. All debt is bad and the economy and banks are just playing a weird game of musical chairs with the Federal Reserve Notes in this Fractional Reserve System only the people are increasing instead of decreasing while the chairs are decreasing. The govt. is trying to supply more chairs but they can't do it as fast as the amount of people are increasing. So allot of people will not get chairs and our economy runs on people sitting on their asses doing nothing.

    Wow that analogy worked out nicely.

  10. Anonymous says:

    Hyperinflation is not a virgin phenomena. Just go review the "case studies" to see what is possible and what is not...

  11. Anonymous says:

    Nobody is pointing out that major currencies like the dollar are valued relative to other freely exchangeable foreign currencies, for example the Euro or the British Pound. These currencies are traded at a rate of approximately 4 trillion dollars per day. This is a major factor which makes the US dollar hyperinflation scenario different from, say, Zimbabwe's or the Weimar Republic's.

    If the dollar were to hyperinflate - would other major world currencies rapidly become more valuable? Or would the other currencies restrict the US inflation rate? Perhaps the Forex markets would need to be "unplugged" for awhile by a presidential executive order.

    This is all purely speculation.

  12. Troy says:

    One question about inflation and hyperinflation that has been bugging me. One fundamental assumption is that wage inflation keeps up. What are the mechanisms that 'ensure' wages somehow keep pace with inflation at least on a daily basis. Understand that folks in zim. basically have to spend all their money each day because by the time they wake up money has lost value. How would wages either hourly or salaried workers keep up. I am a department of defense employee. I am quite worried that the gov't machine will not keep up with keeping our wages properly inflated and we'll be screwed.

  13. Bowtie says:

    At least you aren't worrying about losing your job.

  14. Troy says:

    This is true...at least until Barney 'can't keep his mouth shut frank' gets his 25% military cut. But lets assume for a second that my job is safe. Is it going to be worth anything if I am working day in and day out at my fixed salary when prices are being adjusted monthly, weekly, daily, hourly? Every argument about hyperinflation assumes that wages grow. What happens if this isn't true?

  15. Numonic says:

    In hyperinflation wages can't keep up with rising prices because hyperinflation is brought on by enormous debt that causes borrowing and production costs to rise too high for companies to survive. If companies don't have the money to stay in business, they sure as hell don't have the money to raise the wages of it's employees.

    You can't expect to get a raise when unemployment is rapidly rising.

    If anything wages will be decreasing for those lucky enough to find or keep a job.

    That is unless you are getting paid in gold/silver and you can only get paid in gold/silver if who you're working for has gold/silver.

    But this is the positive thing about what is happening. Since people will need to get paid in gold/silver to survive and being that there is only so much gold/silver out there, people will be working/producing more to get that gold/silver. People will have to in order to afford the things they need. And the gold/silver will be spent wisely as it will be rare. So the gold and silver will go to those who do jobs that are worth the gold/silver.

    It will take allot of hard back breaking work but the economy will be better for it.

    Those who get the silver/gold now as it is cheap will not have as hard of a time surviving as those who get it later, after the hyperinflationary prices have set in.

  16. Numonic says:

    Let me make one thing clear. Hyperinflation does not depend on whether or not the paper currency is accepted, hyperinflation depends on the amount of debt there is on that paper currency. Even if every American stayed holding dollars, all that will happen is that they will watch their savings get wiped out. A loss of confidence in the paper currency is part of hyperinflation but that loss of confidence is a miniscule factor(more an effect) compared to the size of the debt of that paper currency. A rush to gold/silver isn't what causes the paper currency to fail. The paper currency failing is what causes a rush to gold/silver. If we were a planet of idiots, we would watch the dollar fail and see our savings get wiped out through rising prices and do nothing about it and gold/silver wouldn't rise any more than other things would but being that we are not idiots we run to safety(gold and silver). So the rise in price of gold and silver above everything else is not the cause, it is the effect. Silver and Gold becoming a medium of exchange is caused by the rise in price of everything else in relation to the dollar and the rise in price of everything else in relation to the dollar is caused by the enormous debt on the dollar and the enormous debt on the dollar is caused by practicing Fractional Reserve Banking(Borrowing + Lending) with the dollar. So more than a loss of confidence, the size of the debt is the root cause of hyperinflation. Especially since there are only so many people/things on earth. Once everyone has run away from the dollar whatever happens next depends on the supply of dollars/debt. It is not possible for the people or things on earth to meet the supply of debt that is spread out all over the globe. This is why I say the debt is a larger factor in hyperinflation than a loss of confidence is. It's even funny to say a loss of confidence is the cause of hyperinflation because that's as if you're saying people refused to trade hundreds of trillions of dollars worth of their belongings for the paper currency when the truth is no one on earth owns anywhere near that much wealth. So you see debt is the main factor not a loss of confidence. A loss of confidence would be suggesting that people actually had that amount of wealth to give when in fact they don't. It's the enormous debt, not a loss of confidence that causes hyperinflation. This is proof we are experiencing hyperinflation because there is not $1 quadrillion worth of things on earth which is the size of the debt.

  17. Martijn says:

    @Numonic

    I see where you're going and you are generally correct. However what you really mean is that if you total up all dollars currently held en match them at current prices to the worlds material posessions there is a mismatch. Therefore a downward correction of the value of the dollar is necessary in order to match all dollars against a hard asset.
    That might be correct, but you should not forget that our dollar world also reflects the future. A debt is an obligation to pay something over time, and not now. So what is still to come in real life is already issued in dollars today.

  18. Geithner boosts NASA funds to probe cosmos for bail-out cash

    By Scott Ott
    Examiner Columnist | 3/13/09 5:21 AM

    News fairly unbalanced. We report. You decipher

    Just a day after U.S. Treasury Secretary Timothy Geithner proposed increasing U.S. contributions to his former employer, the International Monetary Fund (IMF) by $100 billion, he offered another plan to increase funding for NASA space probes to search for life, and sources of bail-out cash, on other planets.

    "Let's face it," said an unnamed Treasury source, "Earth is too big to fail. We can all boost funding to the IMF, but at some point that's like scooping water out of a bucket to fill the same bucket. The fundamental problem is that Earth is a closed economic system. To rescue the global economy we need help that's literally out of this world."

    Under the terms of the so-called Geithner Intergalactic Plan, NASA would launch dozens of unmanned space probes each month to "the four corners of the cosmos", each one bearing a kind of universal ATM device. When a probe lands on a planet, and is discovered by its inhabitants, a pictograph etched on the casing will give instructions on how to swipe a credit card, insert local money for automatic conversion, or simply click a PayPal button.

    "Not only do Geithner and President Barack Obama believe that there must be life on other planets," said the anonymous source, "but if you do the math on how much government spending it will take to rescue the global economy, you quickly realize that the only solution lies in the hope that among the billions and billions of galaxies at least a few thousand inhabited planets have developed monetary systems that don't rely on credit to fund supply to feed demand that depends on credit."

    Wall Street responded to the latest Obama administration plan by shorting so-called 'future futures' on fears that the U.S. government would, in the words of one trader, "louse up every other economy in the universe as well."

    Examiner columnist Scott Ott is editor-in-chief of ScrappleFace.com, the family-friendly news satire site, and anchor of ScrappleFace Network News (SNN), seen on YouTube.
    Geithner boosts NASA funds to probe cosmos for bail-out cash By Scott Ott Examiner Columnist | 3/13/09 5:21 AM News fairly unbalanced. We report. You decipher Just a day after U.S. Treasury Secretary Timothy Geithner proposed increasing U.S. contributions to his former employer, the International Monetary Fund (IMF) by $100 billion, he offered another plan to increase funding for NASA space probes to search for life, and sources of bail-out cash, on other planets. "Let's face it," said an unnamed Treasury source, "Earth is too big to fail. We can all boost funding to the IMF, but at some point that's like scooping water out of a bucket to fill the same bucket. The fundamental problem is that Earth is a closed economic system. To rescue the global economy we need help that's literally out of this world." Under the terms of the so-called Geithner Intergalactic Plan, NASA would launch dozens of unmanned space probes each month to "the four corners of the cosmos", each one bearing a kind of universal ATM device. When a probe lands on a planet, and is discovered by its inhabitants, a pictograph etched on the casing will give instructions on how to swipe a credit card, insert local money for automatic conversion, or simply click a PayPal button. "Not only do Geithner and President Barack Obama believe that there must be life on other planets," said the anonymous source, "but if you do the math on how much government spending it will take to rescue the global economy, you quickly realize that the only solution lies in the hope that among the billions and billions of galaxies at least a few thousand inhabited planets have developed monetary systems that don't rely on credit to fund supply to feed demand that depends on credit." Wall Street responded to the latest Obama administration plan by shorting so-called 'future futures' on fears that the U.S. government would, in the words of one trader, "louse up every other economy in the universe as well."

    Examiner columnist Scott Ott is editor-in-chief of ScrappleFace.com, the family-friendly news satire site, and anchor of ScrappleFace Network News (SNN), seen on YouTube.
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  19. Numonic says:

    "@Numonic

    I see where you're going and you are generally correct. However what you really mean is that if you total up all dollars currently held en match them at current prices to the worlds material posessions there is a mismatch. Therefore a downward correction of the value of the dollar is necessary in order to match all dollars against a hard asset.
    That might be correct, but you should not forget that our dollar world also reflects the future. A debt is an obligation to pay something over time, and not now. So what is still to come in real life is already issued in dollars today.
    "

    In the banking system we use where demand deposits are lent out, we do indeed pay the debt "now" and not over time. And when the debt expands too large this becomes apparent as banks default because they don't have capital to supply depositors.

    See you have to understand this isn't an issue of "toxic debt" this is an issue of "too much debt". It's not an issue of people taking out loans they couldn't pay back, it's an issue of loans not being able to be rolled over. People who took out loans were able to survive using their home as an ATM because the banks loaned out more money for mortgages and more and more houses were bought, increasing the price of the homes allowing more money to be taken out of the home. That ended when the banks could not loan any more money, not because they weren't getting money from the loans. It ended because it wasn't getting enough newly printed Fed Notes to lend out. If the creation & movement of Fed Notes were able to keep up with the expansion of credit this Fractional Reserve System would never end and we would not have to worry about defaults but because credit grows faster than paper, and paper is needed for credit, paper could not keep up and we have a credit crunch. This is because the banks were moving around the existing Fed Notes at alarmingly fast rates curteousy of the Federal Funds Rate being too low. Anyway it was a bubble and bubbles always move faster than the creation/movement of paper. So it's inevitable that the pace of movement of credit would slow down because the credit was backed by a tangible "although easy to produce" asset: paper. But the debt(bubble) grew so large that even the easily produced tangible asset(paper) could not keep up. It's akin to what happened during the great depression except gold is allot harder to produce than paper which is why it was a great depression and why the Fractional Reserve proponents removed us from the gold standard and why we have been able to avoid another great depression since then. BUT an this is the big BUT people need to realize, today paper is acting as gold did during the Great Depression, the paper dollars are slowing the money supply and it's not because paper is hard to produce(becvause it isn't) but because the debt has grown so large in relation to the paper(especially with a $100 bill cap) that it has become hard to produce paper to stop defaults and this is why credit is contracting, stock market falling, quantitative easing running and banks failing.

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