https://www.youtube.com/watch?v=TaBYOp6ACJ0&ab_channel=GeorgeGammon

3:01
Jeff gunlock actually explaining his
3:04
view in more detail
3:07
when the recession comes you're going to
3:10
see the dollar really perform badly
3:12
because the budget deficit is going to
3:13
go to 20 percent of GDP and it's going
3:16
to be really ugly I think here's here's
3:19
the big picture I think the dollar
3:21
weakens tremendously in the next
3:23
recession I think it's because the
3:25
response to the next recession is going
3:27
to be a complete disaster relative to
3:29
our fiscal position and that's going to
3:32
be the wake-up call where we realize the
3:34
United States is bankrupt that we cannot
3:36
honor our liabilities the United States
3:39
has nearly 200 trillion dollars of
3:41
unfunded liabilities that's almost eight
3:43
times GDP for us to pay that in today's
3:45
purchasing power we would have to pay 10
3:47
percent of our GDP for 80 years we have
3:50
to have four generations of depression
3:52
we're not going to do that what we're
3:54
going to do therefore is go to a
3:56
complete abandonment of uh you know the
4:00
dollar and we're going to see a
4:02
restructuring of the U.S financial
4:04
system
4:05
so basically what he's saying is the
4:07
United States has all these unfunded
4:09
liabilities like Social Security these
4:11
liabilities are off balance sheet and
4:14
therefore the budget deficit is going to
4:16
get bigger and bigger and bigger this is
4:19
going to make the debt to GDP ratio
4:21
explode remember back in the 1940s we
4:24
were right around 120 percent debt to
4:26
GDP and we got close to that number
4:28
during the cerveza sickness but a lot of
4:31
people would argue that that was just
4:32
temporary but what gunlock is saying is
4:35
no that is now permanent that is the new
4:38
normal and it's going to go from 120
4:40
percent 250 percent to 200 percent and
4:44
the next thing you know we're going to
4:45
be very close to Japan where debt to GDP
4:47
is at 250 percent and there's no end in
4:50
sight we are still running bigger and
4:52
bigger deficits every single year
4:54
especially if we go into an economic
4:57
recession where tax receipts plummet so
5:01
let's think about this for a moment if
5:02
the deficits are going to continue to
5:04
explode this means the United States
5:07
Treasury Janet Yellen is going to have
5:09
to issue more and more debt