World economy crisis (again?)

The video reminds me of the banana currency we had during Japanese occupation times in Malaysia. Anyway, it's a simple way of explaining the speculated and looming debt crisis we see now at Uncle Sam's.

Thanks to Venissa for sharing this video.
The summary is as below.

Inflation happens either when a country prints more currency making the currency value shrink or food/commodity (food, metal, oil est) price goes up versus consumer's income.

Higher cost in Uncle Sam causes manufactuerers to go to other cheaper counties usually in Asia such as Vietnam, Malaysia,Thailand, China and etc. so that they can pay less for the same product to get manufactured.

This contributes to recession where more peoples in UncleSam losses their jobs.In effect, there is less contributions to tax and more people collecting government benefits meaning less money for UncleSam who is already in huge debt.

Here is something new i learn from this :)

Stagflation = Inflation + recession

The last portion of the world economy collapse is interesting.

Here is another clip on debt crisis centered around European countries.


Quite fascinating for the not so economy-savvy me :p

But I digress,how would educating one another help in this? Do we spend less using credit cards or do the opposite? Don't keep savings in banks but go the classic buy-gold way like those in the 70s/80s? Prepare/stock or whatever people do and brace for a possibility of worldwide economy tsunami?

Illustrations from:
http://www.youtube.com/watch?feature=player_embedded&v=Jjv-MtGpj2U#at=107