Since The GFC, The Banking System Is Dealing With Deflationary Money

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right now judging how you say it is not our best option we have to look for solutions to make the money go a little further and prepare for what lies ahead. Maybe dark times economically

With it lagging behind so much, I don't really see any chance of the current system making it back up unless there is a recession and I don't really think there is a need for depression though. If they do so, it would mean the end of QE right?

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Summary:
In this video, Task discusses the concept of deflationary money and its impact on the economy since the great financial crisis. He delves into the slowing growth rates globally, attributing it to a catastrophic shortage of collateral in the banking system. Task explains how post the financial crisis, lending was limited due to regulatory changes like the Dodd-Frank Act, leading to reduced economic output and productivity. He emphasizes the importance of money in driving economic growth and highlights the scarcity of collateral as a key factor affecting the global banking system. Task concludes by shedding light on the significant implications of this shortage on various economic metrics and the real-world effects it has on productivity and GDP growth.

Detailed Article:
Taskmaster 4450 begins the video by addressing the phenomenon of deflationary money and its consequences post the great financial crisis. Over the past 15 years, he notes a trend of slowed growth rates in both individual economies and globally, amounting to a loss of trillions of dollars in productivity. He discusses how the shortage of collateral, especially in the banking sector, has led to a decrease in unsecured loans and a heightened need for collateral. This shortage is further exacerbated by the demands of the derivative market, resulting in a global banking system that is struggling due to lack of funds.

Moreover, Task points out the impact of regulatory measures like the Dodd-Frank Act, which limited lending by increasing costs for commercial banks post the financial crisis. He criticizes the misconception around central banks printing money, clarifying that they actually print reserves, not the actual currency in circulation. Task emphasizes the crucial role money plays in economic activities such as investment, purchasing raw materials, equipment, and paying employees, highlighting the current scarcity of funds as a hindrance to economic growth.

He emphasizes that the contraction of the money supply during economic headwinds further exacerbates the situation, contrary to popular beliefs about excessive money supply. Task discusses the implications of the global tightening of money, evident in metrics like repo rates on T-bills contrasting with the Fed fund rate. He elaborates on the scarcity of collateral despite government bond printing, which has led to a push in the value of T-bills due to their high collateral value in the banking system.

Task concludes by challenging traditional economic theories taught in academia, pointing out the discrepancy between theoretical models and the actual workings of the international banking system. He stresses the critical need for collateral in creating money and illustrates the far-reaching effects of collateral scarcity on productivity, GDP growth, and recessionary forces. He ends the video by underscoring the significant impact of this shortage on traditional growth trends and the overall state of the global economy.