Conspiracy theories like this one are so easy to believe, but there is just so much wrong with this video, I don't even know where to start.
The problem is, the answer is difficult, not because it requires you, the reader, to understand some overwhelmingly complex theory of money, but rather, every explanation of each facet of the system is only likely to lead to more questions, but if you can't keep an open mind and consider each explanation which is linked to other questions, the answer will never come into focus....
Here is a few things to think about....
Inflation does not simply happen when more money is created any more than adding water to a pool will, under every circumstance, cause it to overflow. It depends, right?. The economy has a capacity to hold a certain amount of money before inflation, just like a pool has a certain capacity to hold water before it overflows. Pools come in different sizes and so do economies. If our economy were analogous to a pool it is the pools capacity that would be analogous to the productive potential of a nation. The water would be roughly analogous to the amount of money in the economy. If the water is too low, we're not meeting our productive potential and this causes unnecessary unemployment, if it's overflowing the amount of money in the economy has exceeded the nation's productive potential.
The best pools are filled close to the top, just as the best economies have just enough money to put people and resources to work before those things run out and cause inflation.
Right now there are 24 million people out of a job that want one. There is lots of unused equipment and resources. The reality is that we could add trillions more dollars to the economy without causing inflation.
Lastly, think of the pool and a hose that adds water and a drain that lets water out. If water is analogous to money, the government can create money and spend it into the economy (the hose) and if the economy heats up it can open the drain (taxes). One of the hardest things to understand and most destructive notions in politics is that the government needs to collect taxes to spend! The idea that the drain is connected to the facet. It is not and the government does not need to collect taxes to pay for spending. I know how crazy that sounds, but I promise it's true. Taxes are necessary, but not for this reason......
The selling of bonds...We aren't borrowing Chinese or Japanese money....Bonds simply repatriate US dollars that has left our economy. The consumers have traded for real goods and services with companies overseas. Have any of you given any thought to what happens to the trillions and trillions of dollars we send out of the country in just a few years? This figure is represented by the trade deficit......If we use the pool analogy to would be like taking a 100 gallons out of a pool of several thousand gallons, year in and year out and not turning on the hose fast enough to replace it AND leaving the drain open.
I leave you with this....Hyperinflation. I hear a lot about hyperinflation in video's like this and it sounds appealing, I used to fear it.....But when you look back through history, hyperinflation is always precipitated by the same problem, a lack of productivity, NOT an increase in the amount of money created.
Think about it. If you were offered gift cards to Amazon.com the value of those cards is directly proportional to what they can buy.....
Now if Amazon started running out of things to sell, what would happen to the value of those cards? They would decrease, right? It was the lack of things to buy that precipitated the loss of value, not necessarily the over printing. The point is, in every real modern example, countries where hyperinflation took place, the devaluing of the currency always starts with a massive loss of productivity. The two most well known examples being Zimbabwe and Weimar.... In the former, the government took people's farms and gave them to others who didn't know how to run them. The stock of food in the country dropped (because decreased output from the farms) created a massive shortage of food causing the value of their dollar to drop. In the latter, Weimar, the cause was the war had destroyed factories and the winning nations demanded reparations. The government simply created money to pay, but without the ability to produce, their wasn't enough productivity to meet the demand.....
The Fed isn't perfect and like any institution serving over 300 million people it has it's flaws, but many of it's flas are magnified by a misunderstanding of how the economy actually works....
If I save one person from believing this tripe, the 15 minutes it took to write up was worth it.
Peace.