This was a great episode Demetri with a great topic and guest tackling one of the more important ?'s for US citizens looking ahead the next few decades
As others are saying: BRILLIANT. Well articulated attempt at deep analysis, rooted in history, that I have not heard. Host outstanding, too. Hello, Argentina!
Great content But about the end about not accepting advertisers, there were A LOT of commercials in this. Might need to check your account settings or something
With the US government debt, there is no hard limit, it’s about flows. The US can spend too much and blow out the market, but just like Japan the debt can keep growing for a long time if the rate is accepted. Keep in mind the demand set for mercantilist countries- the elite can gather US dollar wealth by under-paying their citizens to make cheap exports. If the top slowly gains from the system while the rest are getting nowhere, conditions can persist to ridiculous proportions. Look at debt/gdp of countries like Italy as other examples… mercantilist Germany would underpay their labor to dominate exports and gather wealth throughout the Eurozone. The lender is often more at fault than the borrower when debt climbs like this. The lender often has considerable political influence after all.
Underpay. Do you know the average hourly wage rate of German manufacturing workers as compared with, say, UAW organised workers in the big 3/4 of American car makers in blue states not newly established plants in red States. 😊
Both Gromen & this guy despise federally funded public goods that reduce household reliance on bank loans. They also have no idea what “government chartered banks” mean - lol. They’re both dopes
Yeah but he also acts like these foreign countries have a chance in hell in having a say about it and he acts like some magic gold-backed currency is at all likely.
@Del_987 it's not so much that Luke believes a gold-backed currency is likely; indeed, he thinks that the US dollar will continue to dominate as a MEANS OF EXCHANGE. The controversy is over the question of the extent to which foreigners will continue to store their wealth in US Treasuries. Luke thinks that, while the dollar will continue to dominate in COMMERCE, the dollar's role as a RESERVE ASSET is likely to diminish. Almost everyone equates these two issues; Luke is one of the few who attempts to draw a distinction between them.
By my limited knowledge, there is an optimal inflation that maximizes seignories? If the inflation is too high, money printed * goods purchased will decline rather than increase. It does not make sense for the Gov to go for a 50% inflation rate.
I thought that Banks in US are required to hold at least 10pc in reserves and that exemption for zero reserves was only during covid and has since been revoked?
Professor Calomiris overlooks the warping effect of neo liberal ideological thinking and political machinations that could thwart rational steps to deal with the unsustainable debt path the nation is on. Economic religion, not reason and logic define America.
This was the least rigorous guest I listened to in this show. Evaluating US fiscal situation just like how one would evaluate that of Albania doesn’t make sense.
Corporations dictate policy to Government, who can't pass legislation without big donors. Regulation gets weaker to nonexistent. Our economy is completely financializsd, with no investment in anything that benefits citizens. Capitalism is inherently unstable, with boom and bust cycles regularly occuring. I don't think we'll recover from the 2008 mortgage crisis and the huge inventory of commercial RE unoccupied.
as always he is struggling to prove his thesis learned from dead economists. inflation reduction and real interest rate reductions during the last 25 years were due to globalization and free capital flows. the real issue that he and others of same view will NOT talk about is the income inequalities that cause the public debt to increase, it's baked into the cake via institutional tax law etc. two income imbalances are unsustainable: 1 foreign - current account deficits and 2. domestic - returns to labor vs capital. fix these and public deficits will go away. this is political thus the difficulty in change until crisis. until then we will see larger public deficits and a divergence between goods & services inflation (gdp) and asset inflation (stocks up, home prices up) and homeless will grow.
Brilliant, thankU.
I feel like ive actually learnt something of importance. Explained with clarity, well hosted. Bravo 👏🏼
The explanation of QE and fiscal/budget was phenomenal by the guests!
This was a great episode Demetri with a great topic and guest tackling one of the more important ?'s for US citizens looking ahead the next few decades
As others are saying: BRILLIANT. Well articulated attempt at deep analysis, rooted in history, that I have not heard. Host outstanding, too. Hello, Argentina!
Great content
But about the end about not accepting advertisers, there were A LOT of commercials in this. Might need to check your account settings or something
With the US government debt, there is no hard limit, it’s about flows.
The US can spend too much and blow out the market, but just like Japan the debt can keep growing for a long time if the rate is accepted.
Keep in mind the demand set for mercantilist countries- the elite can gather US dollar wealth by under-paying their citizens to make cheap exports. If the top slowly gains from the system while the rest are getting nowhere, conditions can persist to ridiculous proportions.
Look at debt/gdp of countries like Italy as other examples… mercantilist Germany would underpay their labor to dominate exports and gather wealth throughout the Eurozone.
The lender is often more at fault than the borrower when debt climbs like this. The lender often has considerable political influence after all.
Underpay. Do you know the average hourly wage rate of German manufacturing workers as compared with, say, UAW organised workers in the big 3/4 of American car makers in blue states not newly established plants in red States. 😊
Holy hell this is so good
Russell Napier has been sayimg this for the last 2 years that I know of 😊
Technically he’s been saying they’re going to make your 401k hold the bonds, probably by having to sell some equities to make room for the bonds
C'mon, there are ads in the 1st hour. Your content is awesome, I'll live through it. Thanks again.
or pay for youtube
Great content, thx a lot!
There are too many adverts for me. Great content, but I feel abused.
Luke Gromen has been shouting this from the rooftops
Both Gromen & this guy despise federally funded public goods that reduce household reliance on bank loans.
They also have no idea what “government chartered banks” mean - lol.
They’re both dopes
Yeah but he also acts like these foreign countries have a chance in hell in having a say about it and he acts like some magic gold-backed currency is at all likely.
@Del_987 it's not so much that Luke believes a gold-backed currency is likely; indeed, he thinks that the US dollar will continue to dominate as a MEANS OF EXCHANGE. The controversy is over the question of the extent to which foreigners will continue to store their wealth in US Treasuries. Luke thinks that, while the dollar will continue to dominate in COMMERCE, the dollar's role as a RESERVE ASSET is likely to diminish. Almost everyone equates these two issues; Luke is one of the few who attempts to draw a distinction between them.
By my limited knowledge, there is an optimal inflation that maximizes seignories? If the inflation is too high, money printed * goods purchased will decline rather than increase. It does not make sense for the Gov to go for a 50% inflation rate.
Also, I have a question why currency is the only tax base not M2?
I thought that Banks in US are required to hold at least 10pc in reserves and that exemption for zero reserves was only during covid and has since been revoked?
It's permanent
BTC is essentially an M2 reservoir. By that I mean, I love investing in a speculative asset of unknown origin.
Please explain, sounds intresting?
More ads please sir
Zero Risk Weight on Sovereign Debt (BIS) does that all ready, no?
The history before the Bretton Woods (71), such as the fiscal policy of the civil war, is irrelevant to today's system.
@14:20 Fundamental Change
This means TABULA RASA, boys & girls! With a clean slate.
Checks and balances in the same institution, government. They don't count as anything but a nod to the establishment.
The absurd amounts of ads ruins continuity and makes this seem less professional - i stopped listening. But good information
If you understand MMT, what is the being discussed here is nothing new.
Too many adverts. Unwatchable.
How is going to put money in banks if they are cheated
@26:40 Forty Percent
Hence, it's not simply nickel & dime embezzlement, it's armed robbery, isn't it?
If they do that, J6 will look like a picnic.
@18:00 At what moment?
When you realize that the Treasury Bonds are nothing more than Confederate Bonds.
Professor Calomiris overlooks the warping effect of neo liberal ideological thinking and political machinations that could thwart rational steps to deal with the unsustainable debt path the nation is on. Economic religion, not reason and logic define America.
why is this guy not running for president?..his got our majority vote..we need him for a reform..and being back our country feom corporate hold...
This was the least rigorous guest I listened to in this show. Evaluating US fiscal situation just like how one would evaluate that of Albania doesn’t make sense.
Corporations dictate policy to Government, who can't pass legislation without big donors. Regulation gets weaker to nonexistent.
Our economy is completely financializsd, with no investment in anything that benefits citizens.
Capitalism is inherently unstable, with boom and bust cycles regularly occuring. I don't think we'll recover from the 2008 mortgage crisis and the huge inventory of commercial RE unoccupied.
Despite this number of ads… greedy. Will be switching off if it continues.
Is this Bill Maher's lost twin?
as always he is struggling to prove his thesis learned from dead economists. inflation reduction and real interest rate reductions during the last 25 years were due to globalization and free capital flows. the real issue that he and others of same view will NOT talk about is the income inequalities that cause the public debt to increase, it's baked into the cake via institutional tax law etc. two income imbalances are unsustainable: 1 foreign - current account deficits and 2. domestic - returns to labor vs capital. fix these and public deficits will go away. this is political thus the difficulty in change until crisis. until then we will see larger public deficits and a divergence between goods & services inflation (gdp) and asset inflation (stocks up, home prices up) and homeless will grow.