The Fed's Unwritten Mandate: Liquidity at all Costs (w/ Mark Blyth & Adam Tooze)
Vložit
- čas přidán 4. 07. 2024
- Professor Mark Blyth and Professor Adam Tooze explore how coronavirus is laying bare the hidden risks embedded within our financial systems and how central banks worldwide are scrambling to paper over those chasms of danger. To them, it seems that the Federal Reserve has rewritten its remit, and they discuss how rather than try and keep prices stable or keep unemployment low, the sole focus of the Fed right now seems to be supporting asset prices at any cost, even if that means bailing out leveraged entities who took on too much risk. They also discuss Europe and how this crisis is heightening the contradictions within the Eurozone and pushing the European banking system to the brink. Filmed on April 22, 2020.
Thanks for watching The Interview, the premier business and finance interview series in the world.
Subscribe to our channel now for more videos like this one: rvtv.io/subscribe
Do you want even more content like this? And to see this video before we release it here? Become a member of Real Vision -- get started for 30 days for only $1: rvtv.io/membership
About Real Vision™:
Real Vision™ is where you can gain an understanding of the complex world of finance, business and the global economy with real in-depth analysis from real experts.
Connect with Real Vision™ Online:
Twitter: rvtv.io/twitter
Instagram: rvtv.io/instagram
Facebook: rvtv.io/facebook
Linkedin: rvtv.io/linkedin
The Fed's Unwritten Mandate: Liquidity at all Costs (w/ Mark Blyth & Adam Tooze)
/ realvisiontelevision
For the transcript visit: rvtv.io/TheInterview
Disclaimer:
This is pretty obvious, but we should probably say it anyway so that there is absolutely no confusion…The material in REAL VISION GROUP video programs and publications {collectively referred to as “RV RELEASES”} is provided for informational purposes only and is NOT investment advice. The information in RV RELEASES has been obtained from sources believed to be reliable, but Real Vision and its contributors, distributors and/or publisher, licensors, and their respective employees, contractors , agents, suppliers and vendors { collectively, “Affiliated Parties”} make no representation or warranty as to the accuracy, timeliness or completeness of the content in RV RELEASES. Any data included in RV RELEASES are illustrative only and not for investment purposes. Any opinion or recommendation expressed in RV RELEASES is subject to change without notice. RV Releases do not recommend, explicitly nor implicitly, nor suggest or recommend any investment strategy. Real Vision Group and its Affiliated Parties disclaim all liability for any loss that may arise (whether direct indirect, consequential, incidental, punitive or otherwise) from any use of the information in RV RELEASES. Real Vision Group and its Affiliated Parties do not have regard to any individual’s, group of individuals’ or entity’s specific investment objectives, financial situation or circumstance. RV RELEASES do not express any opinion on the future value of any security, currency or other investment instrument. You should seek expert financial and other advice regarding the appropriateness of the material discussed or recommended in RV RELEASES and should note that investment values may fall, you may receive less back than originally invested and past performances is not necessarily reflective of future performances. Well that was pretty intense! We hope you got all of that - now stop reading the small print and go and enjoy Real Vision.
Want to stay on top of the news, Real Vision style? We invite you to join our newsletter for our FREE DAILY BRIEFING recently launched to keep up with the latest on coronavirus and its global impact on financial markets. You can find an email sign-up through this link here: rvtv.io/YTDailyBrief
So I am so glad to see Mark Blyth on real Vision I've listened to one of his lectures at Brown last year and was very impressed with him and I love real vision there should be a homerun thanks again guys
Can we have a conversation between Raoul Pal and Mark Blyth about bitcoin and cryptocurrencies? They both have interesting and insightful views about the matter from a macro economic sense.
M no ok k
Ml jo km on 8
I enjoyed that interview. Anthropological in the 1st person and no shilling BTC. 10/10
Real talk, 40% of families had no cash reserve and a similar number of BUSINESSES also had no reserve. Best. Economy. Ever.
Try 75%+.
To be fair, businesses shouldn't have cash, they should have debt. And families should have savings. That's the cycle, or at least it's supposed to be, obviously that's never been how it works though
Blyth's stuff is good
Two of my favourites right here. X
This was a real clarifying talk. Congratulations
A real, informative conversation between two insightful experts who communicate well.
Lol the title intro at 0:00 has a ventriloquist doll. Crazy kids...
more like a puppet lol
Thanks Mark, I need your sane voice !
Amazing conversation. Thank you
That sign in Marks office is great!!!
Blyth! Finally............👍🙏
Blaah. All he has, is meaningless drivel about the problems we have. Nothing about why we are here about what we should do about it. "government should do a better job", that's the extent of his analyzis.
Tenebrousable ...and when you speak publicly on such issues where do we go to find your "wisdom" on these subjects.
Tenebrousable - what are you on about. He presents various things that should be done all the time.
I really appreciate these discussions. As well as dealing with the unsustainability of markets, debt, consumption - can we also have a discussion from academics about the unsustainability of the education system, student debt, the milking of the academic institutions please.
💯 These two Professors are towering intellects.
Why does the shows intro have that Chucky doll in it?
“Everyone, deep in their hearts, is waiting for the end of the world to come.”-- Haruki Murakami'
They externalize their own impending deaths as the death of everything. For them it is.
Very true. The apocalypse comes for us all, and no one wants to face it alone
excellent video
Nicely done interview 👍😎
17:06 Adam is referring to the Fed FIMA Repo Facility. Does anyone know if the PBoC is using FIMA?
Look. I started an unemployment application today. But I haven't finished yet. There's something gutting about applying for Unemployment, when I'm more than capable of working, but there's just no jobs available. Dragging my feet right now on completing it
Unemployment doesn't mean you are unable to work, it means you are looking for work.
Nurses are modern day heroes, I salute you ❤🙏🌟
Unemployment is insurance that your employers pay for you, specifically for times when they can no longer employ you due to no fault of your own.
Take it, live frugally, and if you have extra after you’re working- donate it to a cause you care about, or a person who needs it.
Hope you get back to work soon.
Awesome chat....I wish I could follow all the info shared....I know it is extremely important!
Woweww, it was a wonderful chat, I loved this Adam Tooze
No he just actually listened properly
Big Mark Blyth fan! Adam Tooze seems to talk in circles. Like most people Mark Blyth engages with Adam Tooze only makes Mark Blyth look brighter....
Telluwide ...or maybe you weren't paying attention?
Most academics can't help themselves and add 50% too many words while not getting to any meaningful point.
Yay a Mark video
restaurants are already jam packed each night where I live. Went into a big box sports shop and just about every shelf was bought out.
Thanks from Ukraine for intresting discussion!
Huge wealth transfer going on .
We need a serious revolution, worldwide.
We need a serious revolution, within ourselves.
Start offloading the responsibilities of government into the hands of citizens then you have Revolution without a shot being fired just put them on blockchains create security and financial token systems to run these institutions, then government Falls, if Government doesn't become responsible for the activities of the citizens and the citizens pick up that responsibility they're no longer needed
Is that possible? How would people go about doing that? Sounds incredible.
Bobe Kryant We do. People have to suffer for that though. Might put them off.
8:00 Hit the nail on the head, this just in time mentality will have to change otherwise we will just get upset again when the next pandemic hits. How long we will be able to maintain this however, remains to be seen.
Doubt this will cause people to change. Corporate incentives are looking to stay the same and house holds/ small businesses have low liquidity buffers out of necessity, which is not likely to change either.
Money is imaginary. The only problem we have is giving it to all people instead of all of it to the same few people.
currency is imaginary. real money is not. we need ubi and a debt jubilee or monetary reset
@@budger4860 All currency or real money is imaginary. Everything we need grows on trees.
Your money represents time and value. There's nothing imaginary about it. Some people's time and value are worth more than others.
Currency or money or what ever name it has can be anything, a piece of paper, wood, plastic gold, virtual crypto , literally anything because it is a Value Carrier !! That is it's Only Function, carrying and representing Value. Value represents Work, Human Work in every form it is occurring. As a result of it's function it has to have 2 and only 2 properties, to be Infinitely Divisible and have a Fixed total Amount. If you understand what i have just laid out for you, you will understand economics much more than the majority of teachers, business man and economists.
Need to get a book case.
Talking about Taleb, I think his book skin in the game answer the redundancy problem. System learns by removing not adding. Thus, I can foresee two outcomes. In terms of the big corporations, which has a back door called the state and bailout, they will continue doing what they have been doing because they need no redundancy. Their liquidity is the tax payer money. They will not learn because there is no removal.
For small business, which did get removed, I think they will begin looking into more liquidity.
By the end of the third conversation of yours I watch, I understand the first. Really catapulting my understanding of these structures.
Professor Blythe can deliver serious data overload and quantum jumps.
I am a huge fan of Blyth. What I find interesting is how he mentions taleb. I find no one in the elite or mainstream academia ever references him. Which is fascinating. I have read all his books and alot of his papers and almost everything he talks about eventually turns out to be true. It is not that he perfectly predicts the actual events unfolding, but more so how the philosophical and epistemological basis for how the global machinery runs, and the probable consequences of these structures that is so well laid out.
Blyth has written an article with Taleb
Adam Tooze is just producing wholesale English .... the man has no point ... I went thru half the vid before it hit me. His English just goes around in a circle .... WTH .... he just ate up my time before I could stop it. Thats a skill man .... aaahhhhhhhh driving me crazy now ...
he talks like a lot of women do? "talk a lot, but not say much"?
Except for the bit where he absolutely nails the UK finance systems. The man is one of the best modern day historians and has his mind wrapped around how global finance works in an extremely impressive way. He has written a number of excellent articles in the Guardian and London Review of Books analysing the crisis. He's a historian, he doesn't have to have a point. Disagree if you like but show some respect for one of the best minds of the 21st century.
The more time goes on I start to side eye tf out of real vidion
Love it
Cleptocracy doesn't even begin to describe the Criminality of the Wall Street Pirate Ship. “Come, Mark, come!' he cried. 'The game is afoot. Not a word! Into your clothes and come!'
Ten minutes later we were both in a cab and rattling through the silent streets on our way to expose Wall Street Criminality.”
― Arthur Conan Doyle, The Return of Sherlock Holmes
Intelligence squared with these two.🤔🙏😁
mark raises the question as to when restrictions are lifted do people go to shops and "shop till you drop" the answer is to be observed in Australia this weekend , go check it out yourself Highpoint West major shopping mall in Melbourne flooded with shoppers.
Through crowdfunding and blockchain and financial tokenization of certain types of institutional programs within government those Things become relatively cheap to the consumer and the responsibility is offloaded from governments their importance diminish and so does their power and control
That is not going to happen anytime soon as the government is the means by which capital exerts control over the masses. The idea that blockchain is going to do anything more than make that control even more efficient is not tenable.
Except here in Sweden where we've mostly been living our lives as usual, with the exception of the weakest and most vulnerable, both in terms of health but also in terms of economics and employment. "What were you doing during corona?" "The usual, mostly."
Changed? Ya think? My crowded booth, 27 year business manufacturing, and selling
widgets at crowded events at Disney level, is OVER. Early retirement, then early retirement when I qualify, then new skills, new gigs, enjoy life.
YES, ON MANY LEVELS, WE ARE AT A POINT OF NO RETURN!🤨🤨🤨🤨🤨
Is that jobless claims graph at the beginning. Correct? Wasn't unemployment at about 10% after the financial crisis?
So how is this gonna feed and house all the people that are unemployed. Can we do that without destroying the dollar? Why can they bailout out corporation s and not people? If they continue to create fiat are we going to have serious inflation?
Adam Tooze you move more than the technology can handle. Modern video technology send the difference between pictures and tons of movement just create to much data.
I know how we move is hard to change, but maybe just move the hand off screen (Is it natural for you to have the hand that high?) and that part really changes the picture due to the black blouse vs hand color.
Everything over 144p is basically greed.
My small company always holds at least 2 mths capital. To pay Bill's, consumables and staff. Anything else is greed/incompetence. IMO.
Politics and Foreign Policy is a game of CHESS....PERIOD
1 Timothy 6:10 King James Version (KJV)
10 For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.
Locality is fractal. We will all learn this as humanity descends through those fractal layers.
Along the way, we will learn that familiarity is the strange-attractor of human society.
I advise all to understand Dunbar's number. This defines the limits of trust.
For humans, Trust is the only hedge against risk. And trust is built upon familiarity.
The tribe is our nature. Those who forget that will find themselves alone.
So far, the only AI or technological remedy that I have seen has, at its base, a human - not to be trusted beyond familiarity, and certainly not in your tribe.
This is the truth about agency: all agency acts at the behest of a "self".
For humans there are only 2 selves related in adjacent fractal layers: The individual and the tribe.
A tribe can be no more than 150 individuals - counting all adults, infants, elders, the sick and injured. That's maximum 30 breeding-pairs.
Time to get real?
(Edit: the process of familiarity requires empathy .. and more importantly: compassion.
All those who operate beyond compassion are a form of suicide. AS we are all about to learn.)
what a load of nonsense... keep it up please.... you may just be the next fed chair.
@@warpeace8891 what part was nonsense? That humans are tribal and need trust?.... Ill agree that the limit of 150 is a bit of a wild shot but beyond that i agree we just need to have a society that we feel is trustworthy (which most humans are, our leadership are just psychotic which is making the rest of us feel as though the world is untrustworthy. meanwhile people still are kind and trustworthy...)
It is so hard to understand Mr. Tooze when he is not willing to wave his hands about or make suggestive gestures at an adequate rate.
These people really think that this type of event is unusual? What is really unusual is having very long periods of peace and prosperity.
Italy staying in the eurozone is absolutely insane. They're looking at a decade or more of econimic depression if they stay in.. if they leave they become instantly super competitive compared to the rest of europe.
if there's any hint of leaving, there will be capital flight because Italy has the 3rd largest bond market in the world. Average age is 45, they don't want any immigrants coming in and expect to collect their pensions in 20years about the time the bonds become due. Prior to Italy joining the Eurozone they devalued 5x in the 90s to be competitive with Germany but they're not Germany.
hrmIwonder ...how does that work?....they currently have massive EU support, which would disappear by exiting EU.....they would have to recreate their own currency....(exchange rates would be very unstable), and the EU will punish them if they do leave....and will make any trade deals, with the EU on unfavourable terms for Italy, etc.
In my opinion, Italy doesn't have much choice....it will experience poor economic conditions no matter which option it chooses.
@@remlatzargonix1329 Recreating the currency is the whole point. Then you can control your fiscal policy and have a floating exchange rate, and you don't have to submit to the EZ economic nonsense... I'm sure the US, Canada and the UK would be happy to trade with them and China too.. Italy would also become an even bigger tourist draw since it'd be much cheaper (eventually when the pandemic stuff is over). They're the 9th largest economy in the world, not some dinky island somewhere.
@@peterkratoska3681 You'd have to re-denominate some of it. Some of it'd might get defaulted on, some might stay in euro. You'd have to make preparations... Better than submitting to Northern European enforced austerity. Italy's the 9th largest economy in the world. It can stand on its own. If they were really smart, France and Spain would leave at the same time.
I love Real Vision Finance channel, however, we in Tennessee have reopened and the first thing I did was go to a Mexican restaurant with friends. I will abide by medical rules on the plane, but I am going to travel to see friends and family around the world as soon as travel restrictions are lifted. The risk is low. I will not be taking a cruise anytime soon, however.
The risk to you yourself might be low if you are young, but the risk is extremely high to many, and you're just spreading it around by doing this. Are you OK contributing to other people dying? The people who travelled out of Wuhan weren't risking themselves, they were risking everyone else.
@@shiny_x3 Yes.
Can I just skip all of Adam Tooze's dialogue sections and only listen to Mark Blyth? Adam Tooze epitomizes the definition of the Blowhard Academic. He just loves listening to himself talk.....
Excellent point on climate change requiring collective action! Imagine global carbon distancing, outlawing coal, etc. It can be done.
Love Mark Blyth please more of him!!!
The hockey stick is fake.
Now do one
I hear the baseball bat is as well.
Yeah there is a lot of question I would like to ask those two. There is much you seem to expect the viewers to take for granted. Like but about "you sound like a neoliberal" and the mad max capitalist. I wonder what kind of circle you have to hang out where these reference mean something so clear that you both agree without the need to explain further what you really mean
After 40 years of neoliberalism, and the issues most of the population have being down to the effects of such, it would say a lot if people still didn’t know what it was causing their issues.
Neo-Liberalism is a woo-word by woo-people. I just saw a comment on Amazon regarding one of Blyth books, and he referred to Blyth himself as a Neo-liberalist. He's not, but it just goes to show how fluid these descriptions are.
TheGreatIndoors1979 - there’s nothing fluid about the word. People may misuse it however. Neoliberalism and right wing ideology have a lot in common. Both favour wealthy interests, which is why we have it.
John McCain was the (thankfully) doomed GOP candidate in 2008.
The idea that anyone who gets hurt or sick is automatically bankrupt is a fact of life that Americans have learned to live most of just think of it as you can't get blood out of turnip. The problem is for people who don't have gold plated insurance policy it takes away from generational wealth if the hospital or nursing home gets everything you have accumulated over a life before Medicaid kicks in.
If the banks and corporations are bailed and the people are not, it will lead to public unrest perhaps revolution
How do you guys have your haircut at this time?
its not fear of corona but lack of money that makes reopening an overhyped non solution. (*america)
@ 18:00 he describes the system perfectly. I don't know how he can understand the system and simultaneously say @14:04 that the deficits "don't really mean that much" and "its a show of strength".
There is unnatural demand for dollars because of the vestiges of "strength" that are left over from a time when the US was legitimately an economic powerhouse. Trade deficits naturally want to balance out and in a truly free market that would happen through the exchange rates given enough time. Since the mid 1970's orchestrated demand for dollars has become systemic demand for dollars. The need for oil necessitated the continued use of SWIFT, which is a system that has enjoyed the competitive advantage of economies of scale making all transactions cheaper than alternative systems. Because SWIFT is the de-facto system for settling international trade, it is prudent to have some savings in dollars. Because the FED has a 2% inflation target you better get some kind of yield from your dollar savings. You want to preserve purchasing power not speculate, so you convert your dollar savings into cash equivalent investments (typically treasuries). That cash goes back to the US government to squander non-productively and places downward pressure on treasury rates which are the benchmark by which all other investments are evaluated. Treasuries have been in a 40 year bull market, and thus, US assets have enjoyed a huge expansion in valuation bringing yields down to historic lows.This whole set up has 2 conspicuous vulnerabilities. Oil priced in dollars is the lynch pin of the system; if oil broadly begins to be traded in something other than dollars the system starts to come apart. The other vulnerability is the government reported inflation number. Huge amounts of conspicuous inflation provides an incentive for foreigners to forgo their dollar savings for savings in some other form. Either way our trade deficits have fed into our federal deficits and we've built up a tremendous amount of economic potential energy that is just waiting to be released.
Exorbitant privilege?, Bilateral trade deficits harmless? It's all a wash multilaterally? If theses are strongly held positions I'm disappointed.
More like exorbitant burden. Exported employment. You guys need to check on with Michael Pettis and his new book Trade Wars are Class Wars. He is a very very deeply read financial historian. As well as a seasoned sovereign debt trader, academic and author.
I didn't know there's an aunty lockdown
Not much room for redundancy with 8 billion people on the planet.
Democracies have to prop up asset prices for many reasons. Most obviously, both public and private retirement accounts/pensions are all deep into bonds and equities, and little else. Old people vote. Savers/investors vote. Both at much higher rates than those on the dole or living hand to mouth.
Exactly, well said.
"We optimized everything."
I strongly disagree with these statements. We cut corners, we don't optimize anymore. This is in the name of this sociopathic economic/social policy we adopted since the 1970's. Calling it "Libertarian" when it isn't.
"Nature never optimizes"
In nature, if there is an empty niche, something will evolve to fill that niche. Something else will then evolve to exploit what the previous living thing is doing while filling their niche, and so on and so forth. Nothing really gets wasted.
That’s what he saying we cut corners to optimize profit under normal circumstances. Nature optimizes to be sustainable and resilient. He is saying we optimized for a context that no longer exists. And the question he’s bringing up is will we go back to optimizing profit or will behaviorial changes shift things where we optimize for resiliency.
nothing is wasted doesn't equal everything is optimized, look at photosynthesis the energy gained is 1%. We do a lot better with pv now at 20% etc. But his point is, we've moved everything off-shore including pharmaceutical and ppe and pretty much most manufacturing to save money. The concept of just in time delivery works great when you have a smooth running system but falls apart at times like this - some pharma and other manufacturing is stopped or slowed down because of some tiny part (ie plastic bottles) made in China etc. Ditto for the oil storage system. Or hospitals and ICU's
vgernyc .....Liberalism, simply refers to laissez faire rules on regulation and control/use of money (including cross boarder money flows).
Essentially; leave business alone to make money in whatever manner they so choose and let them do what they will with their proceeds.
In that way is also VERY libertarian.
Tooze needs to keep it pithy.
Too much inflation if you ask me.
Where? Im still looking for it
Is the fear mainly middle class angst? The working class have been going to work unless their jobs have been closed down by government edict. I've been working on traffick management on a u.k. waste plant. Slow moving tail backs allow me to have conversations with multiple drivers, most furloughed, who want to go back to work NOW. They understand the inherent risks but they also see the various sections of society that the virus is most dangerous too. Most have analysed the risk factor to themselves and still want to go to work. It is plain working class common sense at work
Yeah, playing Russian Roulette with a novel virus which we actually know very little about, especially how long immunity lasts. Belgian mink farmers getting infected from their animals with Covid-19 proves thus virus is going nowhere as it can host in both animals and humans, and be transmitted from them both. So... Watch this space.
@@BigHenFor russian roulette? We know, generally , which areas of society the virus impacts hardest on. Diabetics, terminal patients, the old. The impact on children and healthy people is minimal, in fact to the vast majority of the nation the virus really no threat at all. 28,000 people died of flu in 2012, did we close down the nation for that? Our final death toll could be around 100,000. Given the real number of deaths is probably 60,000 the worse case scenario of 40,000 more is still no reason to continue with these hard restrictions. Social distancing should still remain. A more concentrated effort to protect the vunerable should be put in place so to should tests to prove if you've had the virus should be prioritised but for everyone else, go back to work because the destruction of our economy is not a price worth paying neither is the long term social effects massive unemployment brings
Adam, I know you are a historian, not a fortune teller. Still, you should post a vid explaining what you mean by (23:17) "Are these the morbid symptoms of a system in some sort of transition to invoke the over-invoked Gramsci's phrase? You could claim that. I am really much more of the sort of build your boat at sea, ramshackle, sort of whatever it is, Mad Max build your crazy highly mobile dangerous CONTRACTION of capitalism, both at the national and global level as you go along. In a sense, what else do we expect?"
Everyone knows there is a TITANIC boatload of Socialism for primary dealers and big corporations in place, thanks to the Fed and other large Central Banks, coupled with 96-0 votes in the US Senate, torrid McConnell - Pelosi straight affairs, and Ted Cruz-Chuck Shumer romantic engagement. Still, isn't their purpose to practice trickle-down-socialism AS LITTLE AS POSSIBLE and to keep just-in-time, zero-redundancy capitalism for the rest of us?
Interesting comment, what would you do differently if you were running the world?
To answer yours.... You partly answered it yourself..... There is no one in control. Most political systems simply don't facilitate a cohesive plan to do anything. Furthermore the most influential forces are the biggest economic ones akin to rudderless gigantic ships. Collisions are inevitable. You, me and everyone else are all part of the problem and solution. What are you prepared to do?
@@warpeace8891 It will take education of the American People as to how much the government guarantees private profits at the expense of tax payers. Just 3 examples.
1.The Fed and FDIC exist to backstop systemic risk and make sure primary dealers never go under. The Fed even subsidizes primary dealers via IOER (and ON-RRP to many non-primary dealers), all on behalf of monetary policy, meaning to put a floor on Fed Fund Rates to prevent negative interest rates, which would be deleterious for bankers. Wall St LOVES government debt, not so much for the meager income it can collect from interest payments, but because it can use it as the SAFEST COLLATERAL (i.e. the most liquid) in the wholesale funding markets, especially in the repo market.
2.What to say about Fannie, Freddie, and especially Ginnie Mae? They exist to guarantee investors in the mortgage security markets do not lose money. The claim is that it helps with lower interest rates. That might have been a viable claim 10-20 years ago. Interest rates are the lowest EVER (ever heard of Bill Gross' New Normal?).
3.Big Pharma mega profits stem from government funding of basic research that precedes even the most pedestrian Phase 1 of clinical trials. Big Pharma companies are unlikely to invest in basic research, because the uncertainty is too high and the time frame to profitability is usually too long. Would suggest to read the books written by Mariana Mazzucatto (and watch her vids in CZcams).
There is WAY more than 1-2-3.
@@warpeace8891 Unlike many of its critics, I am NOT in favor of "ending the Fed". My question to those critics is why the US should relinquish to have the most powerful Central Bank in the World and its role as supplier of the top trade / forex / reserve currency in the World? That would create a vacuum that would be immediately occupied by some other large central bank, whether ECB-BOJ-SNB or worst the PBoC? That would be suicidal for the US. How in the World would any American support that type of claim held by the likes of Peter Schiff and Ron Paul (not sure about his son Rand)? Do we live in the 2nd half of the 19th century?
What I am proposing is sharing the benefits of government policies that favor exclusively big bankers and financial institutions (especially primary dealers, many among those are not even American banks, including the perennially insolvent Deutsche Bank) with the rest of US, by offering debt relief / cancellation and by taxation (YES, pro-capitalism TAXATION) of practices that rely on government policies to
-remain insolvent and avoid bankruptcy / orderly liquidation
-generate massive profits and direct benefits via frontrunning the Fed in the markets, not just bonds, but also stock, commodities, and forex
-using treasuries as SAFEST COLLATERAL in the wholesale funding markets to obtain the liquidity necessary to keep insolvent hedge funds afloat
-using Fed-engineered ultra-low interest rates to go into massive piles of corporate debt that allows share buybacks, paying dividends, exercise stock warrants, and pay bonuses, and then having to be bailed out when a rainy day comes in the form of pandemic or other emergency.
Pro-capitalism TAXATION should also apply to firms that
-benefit from government-funded basic research (and that applies not just to pharma and biotech, but also to many companies in the new technologies of mobile communications and artificial intelligence),
-engage in any form of (quasi)monopolistic practices.
Then the government should use those funds collected via pro-capitalism TAXATION to support many priorities like
-debt relief / cancellation of student debt,
-cancel medical bills of patients who have already paid in interest more than the initial amount they had borrowed,
-subsidize affordable housing, and
-provide material and mental support to people suffering from addiction to opioids.
Having more money to spend on goods and services will increase marginal propensity to consume. That will help reactivate the REAL ECONOMY instead of support bubbles of paper assets.
I should give it a try and become the first Hispanic Chancellor and Under-Treasurer of Her Majesty's Exchequer. All I need to do is disagree in public with her Majesty and Boris, get in the frontpage of The Times, The Sunday Times and The Sun as a result, and agree in private with the City of London - not even my wife will learn what's going on !
Correction: These furloughs and layoffs started 2 months ago. The fed had better rain cash down and taper throughout next 12 months. Or depression 1929+ is upon us.
You can't taper a Ponzi scheme.
not sure who this discussion was for, my level of financial understanding stopped at, 'when a nation suddenly needs to print big money, it's in big trouble.'
"I'm a climate change guy" - Without being ironic.
Climate change is ultimately doomed.
💛💚💙🧡 When the Fed says Liquidity what they mean is "Liquid Diarrhea in the mouths of the middle-class"
Protect yourself against the FIAT de-valuation and buy some Bitcoin (or Gold if you're a Boomer)
Otherwise come back to this comment in December 2021 (today's price is $9,500) and regret it
💛💚💙🧡
Not a scoobie between them
Maybe you should educate them.
Lol I think it’s time to learn mandarin
Dood! Educate yourself about the climate hockey stick hoax! Seriously, it's embarrassing.
Oh, you must be on the wrong channel. This one is for thinking, rational people.
@@maxrobespierre9176 How much time have you spent listening to skeptics? Which is exactly what logical, thinking people do...
Also, attacking a stranger's intelligence makes you appear to have a weak position. Which you do have btw.
Gee DoubleU Pahleez! There are no skeptics. Only crackpots. The facts speak for themselves and do not need interpretation. If not for the aerosol masking effect being so pronounced, there would be place for skeptics to have even a modicum off cover for their crackpot ideas.
It's the aggregate of evidence that tells the story. Evidence. As collected in published, peer reviewed research results resulting from disciplined application of the scientific method practiced by literally thousands of dedicated climate scientists around the world. Climate scientists who have spent years doing a deep dive into the way the natural world actually works. Read the abstracts of a wide selection of relevant papers published in recognized scientific journals and you will see for yourself. These are the best sources of climate knowledge that humanity has to offer. You will find that our global climate is now rapidly degrading and we humans are guilty as charged.
Gee DoubleU I disagree vehemently. There is no such thing as a climate change skeptic in my opinion (yes, it all boils down to how you process the information). Only contrarians much like the flat earther crowd deny the human contributing factors. Civilization is a heat engine which dooms modern society to just a very few years left with the world we know. I’ve been following this closely since about 2009 and wanted it all to be wrong. Otherwise there is no viable future for our children and grandchildren. But the science is very compelling and to date, I have not seen any better explanation.
Meh ...
Waffle and theory.
No practical solutions.
Highlight problems but that's the easy part.
What do you expect from 2 academics on Real Vision
The problem is, most morons like you don't even understand the problem, and then give garbage solutions that simply make things worse. So shut up and learn.
Stewiehleba if you only have a hammer, everything looks like a nail.
He’s studied the LONG history of climate change since 1945. Yeah.....pass. He needs some Randall Carlson realness
Yea, let's let 98.7% of climate scientists determine the consensus
I live in Michigan. The land here is still tilting upward as a rebound effect from when the glaciers melted thousands of years ago.
lol - Randall Carlson, Deepak Chopra for people who watch Ancient Aliens
Par for the course for 2 professors...plenty of bloviating but not much in the way of real vision.
if you believe in the climate change fairy, im not sure i can take anything else you say seriously
@@stevepacker7737 Move fast packman. Q to Ian Cassie - Any idea why Trump wants to buy Greenland? Trump Iglu Tower in Nuuk? Golf courses on ice?
If he believes in agw he is suspect on everything
Taking the "climate change" (previously "global warming") at face value cost the upvote. It was an interesting conversation thought.
That 40% $400 dollar talking point is not absolutely true. I like this guy but that is some major BS
Christopher G
oh?
Based on what evidence?
JGM Editing
That number comes from a survey which was done by the US federal reserve. How the question was asked in the survey is extremely significant. Would you like me to get you a link?
If your view as a macro guy is based on the fictitious hockey stick plot you don’t know anything
" I'm a climate change guy "
Me , changes the channel .
He lost me at climate change.
@John Smith they want all sports to be robotic hockey.
Stopped watching when I heard he is a „big climate change guy“. Sorry cant take these people seriously.
Because that's the healthiest way to live your life. Ignore real problems, because they don't work well with your fantasy about he world.
Stewiehleba a 0.1C temperature rise in 100 years is a “real” problem?
I was listening until he admitted being a member of the climate change religion
I found Mr Tooze genuinely offensive on more than one occasion.
Lost me at climate change. The climate has always changed.
instead of pushing climate change propaganda, learn about weather modification. there are currently ten technologies to modify weather, there are climate changers at work. educate yourself because climate change is very anti-human.