Jim Bakker Show - The Dangers of Debt and Inflation - Dr. William and Robin Forstchen
Aired: 2017-01-20
Duration: 02:08


=== Inflation's Stealthy Grip (02:07) ===

[00:00:01]  Fiscal responsibility for $20 trillion in debt.
[00:00:06]  Wow.
[00:00:06]  With a T. Trillion.
[00:00:09]  And it just so happens that I'm married to somebody who has worked in accounting for 20 years.
[00:00:14]  So that's a lot of money.
[00:00:16]  You know, I hear a lot of people talk about leaving their children with that debt.
[00:00:22]  That's not how this is going to play out.
[00:00:26]  This is what happens time and time again in history.
[00:00:28]  Countries get themselves out of that kind of debt with inflation, period.
[00:00:34]  It's the only politically feasible way to do it.
[00:00:36]  They can't tax themselves out of it.
[00:00:38]  The taxes would be so harsh on people.
[00:00:41]  They would be voted out of office.
[00:00:43]  They can't stop the entitlements.
[00:00:45]  They would be voted out of office.
[00:00:47]  They can inflate the money and nobody knows.
[00:00:50]  They don't connect the inflation with the politicians.
[00:00:54]  And inflation eats away, just as it was in 1980, eats away at productivity.
[00:01:00]  At first, it makes things look better, and then everything gets more and more difficult to afford.
[00:01:07]  Your rent goes up.
[00:01:08]  Your food goes up.
[00:01:09]  Your salary seems to stay the same.
[00:01:12]  You can't go on vacation this year like you did last year.
[00:01:14]  You can't have a big Christmas like you did two years ago.
[00:01:17]  It eats it away slowly until the point sometimes inflation gets so bad, you have a Venezuela, you have a Zimbabwe, where people know that inflation is bad and they start spending more money trying to stock up and it starts a ball rolling downhill till eventually you're buying loaves of bread with wheelbarrows of money.
[00:01:39]  It's happening in Venezuela right now.
[00:01:43]  We had this problem in 1980 and Volcker, the federal chairman back then, raised the interest rates to a point that got the inflation under control.
[00:01:54]  We can't do that now.
[00:01:56]  If we raise interest rates, the interest on our debt is going to crush us.
[00:02:01]  We wouldn't be able to pay it.
[00:02:02]  We can't get out of this problem like Reagan and Volcker got us out back then.