How Economists HIDE True Mechanics Of MONEY To Help MIC Sell Wars | Prof. L. Randall Wray
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- Опубліковано 27 вер 2024
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In today's talk, I discuss Modern Monetary Theory with Professor L. Randall Wray, and we get some quite shocking revelations about the connection between economic theories and US Forever Wars. Turns out, the way YOU think about money has a lot to do with how the Government can go about its war fighting abroad.
Professor Larry Randall Wray wrote a textbook on MMT called: “Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems.” Dr. Wray is a professor of Economics at Bard College and Senior Scholar at the Levy Economics Institute.
For gerat Econ research go to the Levy Institute: www.levyinstit...
Every paper dollar is U.S. debt -- every digital dollar is U.S. debt -- the 'Fed' is not a central bank, but a group of private individuals and banks/corps. Does this guest ever get that far into his explanations?
debt: yes.
fed: no.
Sure, but they are not _interest-bearing_ debt (zero 'coupon'), have no 'collateral', and have zero or instant maturity. The same Govt entities and agents which issue zero-coupon, zero collateral, zero maturity, at par, bearer, monetary instrument can (and sometimes do) issue positive-coupon, positive collateral, positive maturity, monetary instruments. Quite a few CBs in the world are authorized to issue bills and bonds (positive coupon and maturity) and a few Treasuries issue coins and notes (zero maturity, zero coupon).
I stopped the video at minute 39 when your guest spoke about 'inflation was lower in the USA in the late 60's and 70's than in Europe' - the inflation problem for the USA came with the OPEC oil embargo of 1973. Actually I'll remind your guest that inflation remained lower in the USA back when he mentioned it being so and lower in the USA than in Europe because - with the status of the US dollar being the reserve currency and the most widely used to settle international trade transactions, the US was basically exporting it's inflation to the rest of the world - which included Europe - big time - and that's one reason why DeGaulle said he no longer wanted to accept US dollars for trade - he wanted the equivalent in gold - at $35 per ounce. The US' reckless spending under LBJ - a real criminal in both the economic area as well as in his war against the Vietnamese people, flys under your guest's radar. The big problems for the US economy began with LBJ and the Vietnam war - and it didn't take many more years before Nixon took the US off the gold standard in 1971. Your guest seems to think there is no linkage between all these events but I can assure you his analysis is faulty when he skims over these facts and basically ignores them.
And now we have learned the 73 oil shock was engineered by the US to as you say export inflation, and control oil consumers.
bravo. i stopped at ~min 12.
The people elected Nixon resoundingly twice because he was better at debt spending than even LBJ. The Vietnam War was morally horrible and expensive, but in reality, it was a Republican driven event promoted by the anticommunist wing.
How much of the Comments is dedicated to Economic education,
How much to disinformation?
LBJ owed the Brown Bros of Houston for supporting His ascent to Power.
They were rewarded with Contracts.
The USA was still projecting the same Policy of Blowing up the World,
the cost seemed secondary.
The Bill for Nam was not paid until the Nixon Administration
promoted the Saudi deal that backed the new Fiat Dollar.
That did work for a while, 30 years.
Then the apparent support fell off for the US Dollar.
For 20 years the US Currency has been backed by military threats.
How are they doing now?
@@thomashenry1327😅
GREAT WORK PASCAL!!💪
AUSTRALIA!!🤍💙❤️💥👊
The nature of money is an important subject. Still breaks my brain when I try to think it all through.
My current stance:
1. MMT is the most accurate model to describe how the US dollar functions in reality today and provides important background knowledge regarding incentives in US national policy decisions (biggest perpetual honeypot in the world - everyone wants access)
2. Long-term outcomes for US society and the world would be better if the dollar and all national currencies were as close to a "hard currency" as possible.
3. But I don't see how this kind of hard-currency "self-limitation" could ever occur let alone remain in place for long. The genie is out of the bottle. The temptations are too great and too frequent.
What the youtube world really needs next is to honestly investigate the macro longterm implications of this monetary system and its implications for economical development, societal development, domestic policy, foreign policy, war & peace, … leading also to a normative discussion on MMT: i.e. are we happy with this system of money? Are we content we have zero say over this?
Thanks for diving into the subject!
Exactly the sort of "thoughtful conclusions" we would expect from the Cult of Lyndon LaRouche
LOL
Professor lost me at the very beginning with the claim that US dollar is a sovereign currency...Most of us know that this claim is not correct. It is a private asset and the USA is a host!
I guess that what he meant: Souverän for the US
Umm, no. It's CONTROLLED by private interests, sure, but mechanically it's a nation's currency.
Thank you very much for the very informative talk. But still I was waiting for reflection on the recent developments, I really would loved to hear something about the effect of de-dollarizition due to BRICS and other developments. Doesn’t that mean that the American bond market will collapse ? And than what happens to the ever raising debts? And how are the chances for a more peaceful world and MMT ?
Question is what does the US do to stop dedollarisation? And thats why I think we live in uncertain times. But I guess it cant be stopped any longer. The worlds tired of US dominance and hypocracy.
One thing though in case you meant it: you cannot apply MMT. MMT just explains how things are (or at least tries)
But its not like doing capitalism or communism. Its not a system...
There was no mention of the expectation inbuilt in "interest" on money lent and borrowed. Privately owned profit seeking banks (some of which are too big to be allowed to fail) expect more money to be paid back from their borrowers than the amount they lend to them. This is an essentially crazy yet an accepted and legally enforced expectation.
Can we have another one please, on if and what happens when people don’t want to buy US bonds any more….
The Nations who now appear to desire a return to Physical Currency,
that retains value for more than 5 minutes, is apparently growing.
@@danielhutchinson6604What are the necessary and sufficient conditions for any asset, physical/real or merely financial, to "retain" its exchange-value? What determines the exchange value of a "physical (sic) currency"?
"Involuntary default is impossible"
And that's where hyperinflation comes in.
That's only happened with massive foreign currency debts. Point me to one that didn't involve forex debt.
Involuntary, exogenous, default is impossible for those whose obligations are denominated in an unpegged fiat currency which it exclusively issues and net supplies.
Hyperinflation has nothing to do with an apodeictically true statement.
@@stavroskarageorgis4804 Hyperinflation is just another way to default. The end result is pretty much the same. When a govt prints money for spending it cannot afford it steals the purchasing power of your bonds instead of refusing to pay them up. End result, you can use the dollars for an extravagant wallpaper.
There is no profit in peace
Cant run out of money sure. Pretty superficially stupid. It can, will, and is running out of value. Say no to MMT.
Nothing wrong with MMT, but the application is as problematic as any other economic theory. It was used to bail out the system with QE - a system that had failed without MMT, claimed MMT did not work and now needed to be rescued using MMT. The problem is it wasn't even used to do anything for the average person as had always been advocated.
It can run out of value. Nobody disagreed on that. But its external factors that lead to it. Not the fact that sovereign countries "create their own currency" and can therefore pay any debt they want and need if politically there are majorities for it
You're not getting it. MMT never claimed to be a money glitch. But if something is available for sale in your currency, the nation can buy it
@golanheights9000 MMT doesnt say u should print endless money, only that u could.. its up to politicians to decide how much and for what!
Why do you even bother to comment? To check your understanfing of MMT's argument, try to work out what MMT claims _guarantees_ the exchange-value of otherwise intrinsically valueless unpegged fiat currencies. If you cannot, or you think it's merely the issuer's "fiat", you have not understood the argument and you ought not be commenting on it.
MMT= Magic Money Tree
Big Rock Candy Mountain for those at the levers of the printing press.
That ones old
No. Why are you like this?
Incorrect. Again, name-calling and dismissing do not amount to rational discourse. One wonders whether you understand Pascal's actual model of neutrality, given your comment about MMT. You seem to skip the logical. syllogism and evaluate arguments based on whether you find their conclusions (not) to your liking.
@@BanzoUnchainedWhat "printing press"? You did not listen to L. Randall Wray, did you?
For 40% of US history, the US had no central bank.
next year the fed will have some very large refundings on top of major new issuance. the carry trade has gone away and several large traditional buyers of our bonds have backed off. if we cant sell the new bonds they end up on the fed s balance sheet and into m2. this is in essence a debaement of the dollar, a decline in its intrinsic value which spells more inflation.
think he left that out. btw much of those extra dollars end up in the stock mkt, leading to stock inflation.
Not just that but most countries in the world are trying to get us our dollars back. If Saudi, China, Germany, and Japan started sending dollars back the amount of dallars in the world is much more than in the US. We wpuld have to 5x wages and set the fed funds rate at 35%
@@golanheights9000 bingo. they have started sending back by selling bonds.
Money is only the "grease".
It's the resources and strategic locations on the map, that the powerful wish control over.
Pascal, great guest!!! Maybe next shd be Prof Wolff, and Prof Sachs???
I'd like to see Wolff and Wray discuss these topics together
This is quite infuriating listening to this tripe.
Money represents buying power and as anyone can see the dollar has lost 97%+ of it's value since the federal reserve came about.
How long does it take for intelligent people to recognize this and start getting rid of the 'currency' fairly quickly. Gold is sitting around $2660 right now which leads me to believe that people are already figuring this out.
Bitcoin welcomes all
Precious metals as well 🤓
imaginary crypto wealth
you do know bitcoin came from NSA dont you
Bitcoin sucks - like all crypto - who created Bitcoin? Satoshi Nakamoto? 🙄🙄how about it was created by international bankers - the likes of Rothschild's, Rockefellers, soros etc. Bitcoin is a ponzi scheme - and if you stay in it long enough, your're gonna get burned and burned badly.
@@peterwright7025 NSA? my strong feeling is that it came from the big international bankers - the same ones who start and luv funding all wars for the past 200 years.
Instead of arming Ukraine, Israel and Taiwan; US tax payer money should be spent on infrastructure, healthcare, education, homelessness...
Actually the war being treated as a business venture goes back even further. Even a decorated military man General Butler has been saying this since the 1930's, "War is a racket."
Maj-Gen. Butler spoke from experience. It's not that it's run like a business, but it serves the interests of buisness directly - he spoke of "making Nicaragua safe" for the Banana Trust and other countries "safe" for Banksters and such. He was speking not of "business" but of mafia practices. He literally compares the Marines to mafia or gang enforcers who use violence to intimidate those it exploits.
Why are private banks necessary to provide checking and savings accounts to citizens? Why not have those accouns directly at the FED? Why not have loans /private debt provided/serviced by the FED? Wouldn't that eliminate excessive interest rates (credit card, arbitrary fees), speculation?
As an option? Sure. A state bank is obvious. Self custody is also an option we are being kept from.
Decentralization of credit and power. You do not want a monobank like the Soviet Union.
That's exactly from the Communist Party program since 1848 LOL
The Fed would expand it's client pool from the U.S. sovereign client to individuals? Doesn't the question answer itself?
Because thats where the big international bankers get all their power and they're not about to give up that power to us, if you think about it slavery was never really abolished it was made international and made everyone a slave!
You confused money and currency they are very different
you call yourself a professor in economics and know nothing about the BIS? The bank of banks? Come on!
Wray says it was understood by the founding fathers that it was good for the government to be in debt to the private sector. Why?
Interesting discussion . Quite difficult to get my head around some of the concepts . I clearly need more knowledge to really understand it .
Get revenue->spend income is a inherent economic balance mechanism.
Yes you could print money (or create it digitally) but then you would be spending money that has no basis. In turn this dilutes the value of the money aka inflation.
The USA has a special ability due to its reserve currency status (which was backed up by a concrete monopoly in oil payments, aka petrodollar and the monopoly of the financial system aka SWIFT). This allows it to send a large part of its inflation to those who use its us dollars by expanding the base of the pyramid
You can see this by thinking about the USA national debt. If the population of the USA suddenly included the rest of the world, the USA debt is divided by 7 billion instead of 330 million (USA population)
This is the kicker. What if oil payments no longer is monopolized by the USD? What if SWIFT is no longer the only system in town for interbank payments across border?
Then the USA debt is no longer divided by 7 billion but divided by 400+ million (USA population + countries that use the USD as their national currency)
This has a inflation backlash and not just normal inflation but hyper inflation. This is also why MMT people never talk about the day after when they keep talking about how they cannot default on the debt because they will just print money. This is because the day after = hyper inflation
Nope. Because all you focus on is debt. But global debt is zero because ones asset is the other ones liability. Says the guy avove, says MMT, says my neighbour the booky, says logic.
The points you mentioned are true. Just they dont matter ciz debt is the most natural thing.
Its just unevenly distributed mainly because of US hegemony. That seems to be changing now and MMTwill deliver the explanation, and not the debt clowns
@@rli8594 Sure sure, everything is true but doesn't matter. Beautifully classic "trust me bro". Enjoy your hyperinflation
great insights
I was hoping you guys will get into how the BRICS is undermining dollar interest which is why the US is dead set in suppressing China's rise.
And yes hyper inflation is the down side of MMT
Yup. I knew it.
Good get
Poor Larry.
Why does Governemnt have to issue bonds at all? Why not just create the money?
we cann issue as much debt as we want as long as there is someone to buy it but no buyers, look out..
If you can get someone else to pay for the printing ink and paper, why not take advantage and exploit that savings.
Perhaps to make the magic look legit to the average man?
32:15 pretty good explanation?
@@siamcharm7904but theres always a buyer because as mentioned its the safest asset in the world
"Gold goes up, goes down"
It mostly goes up, never down. Have fun with govt bonds paying 5% when inflation is in double digits.
Government can prohibit private individuals to own gold, aka "make owning gold illegal".
It happened in the USA during the 1930s. Back then, citizens were forced to sell their privately owned gold for a fixed price.
LOL When the Euros were waging war on China in order to establish their "right" to peddle Opium in those lands, their reason for doing so was the fact that there was a trade imbalance due to the fact that the Europeons had nothing to trade of any worth to the Chinese except *silver* - not "gold" - silver.
LOL OH and you might want to check your "facts" against the inconvenient fact that gold dropped in price in 2013 in a very significant way.
@@ralphbernhard1757 Yeah, but the main gold hoarders are central banks. Have fun stopping those. Yellen tried to threaten the Chinese, they sent her to go pound sand in a very polite manner. The global majority ain't gonna eat the inflation the US is generating for much longer.
@@Polit_Burro Oh really. Gold was 27 usd when the gold standard was abolished. Now it's 2.7k. But if it isn't rising in a straight line it doesn't count...
If everything is working just as intended, why is the middle class shrinking every year? It’s also well known that it’s an indicator of the prosperity of a country. We’ve been baffled by BS, long enough. If this is an intended result the majority of Western people clearly would benefit from from a new system. Then we can all prosper instead of a very small minority.
Because this guy is deflecting away from the real issue which was the workaround and eventual repeal of Glass Steagall.
The takeover of the investment class.
Who says we should be governed by a middle class majority? The plan is to be governed by few. And that IS working perfectly fine
@@rli8594 For whom. By the people for the people?
seems to be clickbait , i am skimming this video to find this and i dont see it
"How Economists HIDE True Mechanics Of MONEY To Help MIC Sell Wars"
💯
MMT seems to be just explaining the governments overspending and how it helicopters freshly printed money in through social security and aid packages.
But if only those at the levers of the printing press did so in your interest!
As a financial economist, its hard to take guys like him seriously.
Why?
As a layman, I get very little out of comments like this.
Could you at least point to some errors or something?
@@zbynekcodykolacek his ideas could lead to hyperinflation if no buyers for our debt can be found.
Of course it is, your salary depends on not understanding it
@@ZappyOh i would love to but theres too much to unpack - almost every sentence is loaded. for ex. im at 12:06 now (him talking about the BOE). He states the "reserve" notes, fails to mention what they're anchored to. Money has six features, currency has three. He didnt mention any of that yet, i wont watch any more because if it hasnt been mentioned from the start this guy has no clue what he's on about. I dont even know where to start.
The real question should be is why international bankers are in charge of our money supply and why do they take interest on money they create from nothing, imagine we use that interest for the benefit of an actual nation instead of the 0.0001 percent!!
"Put a smile on your face.
Don't bring everybody down like this.
Look at me: I'm happy!"
MMT is quackery. You’re only confusing yourself by trying to learn economics through the lens of MMT.
I disagree.
Our monetary system is quackery.
MMT helps make sense of it.
@@BanzoUnchained our monetary system is quackery yes. MMT is bad theory though. It gets a lot right which hoodwinks non-economists. :(
@@BanzoUnchained If the Wealthy decide how the MMT is distributed,
what difference will it make in the current economic situation?
How so? Mind explaining why?
@@rli8594 Who decides how the MMT Buck is distributed?
That should answer the question......
"Over time whoever controls the money system controls the nation." Stephen Zarlenga
43:30 Always liked the Bancor idea.
Sounds like BRICS might be working towards (finally) implenenting something like Bancor for international settlements.
36:25 Thomas Jefferson be like 🙄
Worst interview you ever did. The source of international relation troubles start with the abuse of the monetary system.
Why is Milei shipping Argentina's gold reserves to London?
Is it because it's not Aurentina?
Is Milei trading his gold reserves for silver reserves for his country‘s namesake? 🤔
Fiat is debased and the bible is the word of YAH. #isawthetribulation
Good stuff! Keep em coming ❤
As long as listeners pay attention to the premises, and follow the logic along carefully, the neochartalist argument is irrefragable.
45:28 So de Gaulle forced the US to start debasing its own dollar holdings by threatening to exchange its dollar holdings into gold?
Why would he do that?
(According to ChatGPT France's US dollar holdings around 1970 were approx. $25 billion)
MMT: Modern Modern Theory
or
Big Rock Candy Mountain for those in charge of the printing press.
50:47 Blockchain does not imply privacy.
"trust the central bank to get in there" proves zero understanding of this topic.
Besides: you think we have better reason *now* to trust the central bank to not get "in there"?
MMT is based on the assumption that there will always be demand for the research currency in question, a false presupposition
41:19 "The only way you can win on a gold standard is if you are an exporter."
Interesting.
Could this be related to Russia recently hoarding gold?
There is a decline in the popularity of US Govt Bonds - that’s clear - buyers are not liking 10 year bonds - but short term bonds are still popular - so long term debt is currently been supported with short term….if short term US bonds lose popularity - then there will be a default.
Charles de Gaulle 1965:
"The dollar is not a currency. It is a promise."
Original:
"Le dollar n'est pas une monnaie, c'est une promesse."
36:07 What a bizarre thing to say.
Followed by "except on a gold standard".
The US operated on some form of a gold (and silver) standard through the majority of its history.
"governments never behaved that way." 🤔
--
Edit:
they go into the gold standard in more detail at 40:02
Why do all MMT people have so many blinders on?
Many of their points clearly are very helpful to understand current reality, but it's always mixed up with gaslighting, suggestivity, political ideology and shrugging off some very important considerations as irrelevant.
Annoying af.
The decline of the two Roman Empires at different times (and of the Empire created by Charlemagne at a later time as well) was accelerated because clever and scoundrel rulers imagined that they could solve economic problems by minting more coins with the same value designation and lower precious metal content, thus creating cycles of inflation and demoralization of money. Something similar happens in the USA, but Americans believe that they live in a modern country predestined to create its own reality with the power to rewrite the basic foundations of the economic phenomenon. Poor things...
EVEN A 15 YEAR OLD KNOWS THAT GOVT CAN PRINT CURRENCY TO SPEND IF NEEDED, THIS ELECTRONIC DEPOSIT IS MERELY ANOTHER FORM OF MOVING THE MONEY..ONLY AN ECONOMIST CAN MAKE IT SOUND AS IF IT IS E = M C-squared LIKE DISCOVERY.
I found this interview very frustrating and not the quality I expect from this channel. The guest takes his time to go over very obvious things again and again, and skim right through where detailed explanation is needed. And there are many questionable points left unexplained. Eg, he says that countries can’t involuntarily default. This might apply to the US, but surely other countries will default if they can’t repay their debt denominated in foreign currency? Sure US can print more money to pay its debt, but what happens when foreigners no longer willing to lend to the US? I guess it will be hyperinflation, but would appreciate the analysis from a real expert.
The Eurodollar market out of London is an elephant in the room of this conversation. As is the Fed being a _private_ institution, owned by the big US banks, in turn owned by the unholy trifecta.
Never been good at maths or economics, but I appreciate Pascal looking at these issues (specially in this time of the proposed alternate financial system offered by Brics). However, I think I understand enough to say there surely must be a concrete basis -gdp? a solid foundation underlying money transactions, as security for paper or digital transactions. Not putting it clearly, but what happens when a government collapses, what happened in the 30's Depression, and in the more recent banking losses and failures of the 1980's?
Utter nonsense.
Title sucks
✊🔻🕊️🇵🇸🇱🇧
支持🎉赞👍👏💪❤️💐💋
Everyone should watch this. Excellent. Thank you for having Prof. Wray on your program, Pascal.
Used car salesman. 😂
name-calling indicates you don't have a counter-argument
Fascinating discussion for sure thanks for having this very important topic on the channel, the historic background to it and for touching CBDCs in the end, even if you didnt dive too deep there. Much more of this would be very much appreciated! Cheers
Government bonds doesn't work like this .... Maybe if they r US bonds but all others can bust lol.... Government or not.... People did lose big on government bonds. And unlike gold , they cant help u save your head in a times of war. Lets hope none of u experience tthat kind of thing.