✂ How the Saudis Control Global Inflation
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- čas přidán 26. 05. 2024
- Modern Monetary Theorist Warren Mosler explains how Saudi Arabian oil prices reverberate through the world economy in the form of inflation - and why printing more dollars doesn't tank our ability to buy foreign goods
#OilPrices #Inflation #SaudiArabia #OPEC #PriceFixing #PetroDollar #EnergyMarkets #MarketManipulation #SupplyDemandEconomics #globaltradefinance
To read more about Modern Monetary Theory and Mosler’s take on it, check out moslereconomics.com/
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As Doomberg said: The Energy IS the economy
Nice clip from the full episode. I can fill in what Warren did not have time to say, which is that when a foreign monopolist is setting price for a critical import like oil, your government can always pay the price. For government it is not ever an affordability issue unless the ppl in charge make it one (which tragically they do, since they do not understand basic monetary operations). If the ppl in charge understood then the policy response would be to one-time upwards adjust the domestic wage level, which would quickly upwards adjust all domestic prices. But it is one-time. So is not technically inflation (a continual rise in the price level). Your government can set to autopilot such policy (if they want to, and realize they could --- with an informed electorate!!). Although the less disruptive thing is to enter into _long term contracts_ with the foreign monopolist, rather than pay the spot price.
What I just laid out is called currency re-gauging. Any currency monopolist can do this. (I favour a policy of simply increasing the public servant wage, which is basically Warren's base case example. Also run a Job Guarantee and re-gauge the JG and pension wages the same). It amounts to domestic distribution policy. Fiscal policy. And you never need to mess with monetary policy (interest rates). As Mosler said, interest rate analysis is applicable only when you are promising something in scarce supply, like a fixed exchange rate, like gold, or a foreign currency that you do not issue yourself by fiat (a fixed exchange rate policy). For the issuer of a fiat currency with a floating exchange rate the currency system is a score-keeping system, and nothing more. The purpose is (or _should be_ ) to run full employment for public purpose (whatever the nation wants, and can resource in real terms, it can have).
this all sounds great until you are a banker and you realize the loans you made are worth less due to the "one time" price adjustment. Say goodbye to the bank's accounting book capital value.
Full podcast with Warren Mosler: czcams.com/video/RC2oLB4Nsw8/video.html
V deep !
0:01 (Value of 1$, Strength of Economy)
“Exporting countries have economies that are STRONGER than the U.S…
Because of the value of the dollar…
Compared to their foreign currency…”
The value of ONE nation’s currency,
Compared to another’s,
Does not ENTIRELY reflect the state of any one of those nation’s economies.
Nations can ACT to INFLUENCE the strength of their DOLLAR…
To affect the increase or decrease of imports vs. demands.
Example…
If a nation is in a state, that requires more IMPORT for their national demand,
Then it would be BENEFICIAL,
To act in a way that DECREASES your dollar, in order to INCENTIVIZE purchase for your CHEAPER DOLLAR demand.
Your’s, is WORTH less…
Then, other people’s dollars
are WORTH more.
They GO,
to YOU,
more easily.
(All of THAT 👆…visa versa.) 🤣
So if the Russians wanted to they could lift up the skirts of the Saudis to reveal the game OPEC plays. Doesn't this confirm Mosler's suggestion that they simply do not understand, or do not _want_ to understand (but why if that's the case!)? The theory they are all colluding in BRICS to keep the wool pulled over the eyes of the EU and the collective "West" is interesting, but the accompanying move to multipolarity is occurring anyway, and if they understood the monetary system that move would have been done by now, in fact decades ago, which further suggests these "power elites" truly have no clue --- except about how to continue charging rents, hand-out bs jobs, and stiffing the real workers.
Nooooo! Please don’t start adding clips to your main channel, it ruins your subscribers’ subscription feeds (which is the whole point of subscribing). You can make a separate “Clips” channel to put recycled content.
we tried that but it didn't get people linked up with the main channel
@@DemystifySci_Podcast sorry to hear that but I don’t think the solution is to flood your loyal subscriber’s feed with recycled content (not that you’ve done that yet, this is just how it starts). I heavily rely on my subscription feed for *new* content and it becomes frustrating/unusable when it’s flooded, so I unsubscribe when channels start adding clips. I like your channel and selfishly don’t want to unsubscribe but I also think it’s better in the long run not to flood with clips. I usually get around to watching the videos I would have watched even when unsubscribed, but atleast for me, I’m much less likely to engage in the comments as the conversation in the comments has come and gone if you aren’t there right when a video comes out. Why are the clips necessary? Ultimately you are doing it for growth to hopefully cover some small portion of all the effort and time you put into the show. I would much rather see you take on outside advertising to make money and get rid of the clips bc I would stay subscribed and see the content immediately. And you’d probably make more money. I really hope you succeed with whatever you choose bc I really enjoy a lot of your content and I think you are great interviewers and am super impressed with how prepared you are for interviews that span such a huge range of topics. You two make a great team!
@@timjohnson3913 does it help if the title starts with "Clip" so that you can screen them easily, or is it just having them show up, period?
@@DemystifySci_Podcastfor me, it’s just having them show up because you have to scroll past them and I think it’s also a mental thing because the expectation is you are looking for new content and then you see one of your favorite “podcasts” and then it’s totally deflating to see what to a loyal subscriber is just a disappointing advertisement. And then to protect yourself, you stop getting excited for anything popping up from that channel because you now expect it to be an advertisement. So I just circumvent that whole experience by unsubbing and the algorithm will bring me some piece of the content eventually or I’ll remember to check the channel from time to time for any new content that I missed.
@@DemystifySci_Podcast fyi - shorts don’t flood the main part of the subscription feed, so that’s totally fine for recycled content in my view (I typically expect shorts to be recycled content). But I’m guessing shorts can’t be as long as you are aiming for with the clips
This is the problem with constant expansion politics. If a country strive to have a 2% increase in GNP every year, it creates a demand for energy. If you have immigration or more then 2.1 child per woman you will also have a growing economy and energy need.
If you couple that with lower exports then imports of products you are setting you country up for a crisis eventually with inflating away wealth.
USA:s solution has always been to counter expansion with wars.
This increase exports and decrease population growth.
This maintain the rich people's wealth and even increase it, but make poor people poorer or dead by a shot to the head.
There is only one solution to this problem and it's toll on foreign products and local production. This is why Russia has benefited greatly because of the sanctions.
I said already 2014 that these sanction are the best thing that could ever happen to Russia and people thought I was an idiot!
They were also on the way to be runned over by "cheap" foreign products.
The perfect way to run a country is no taxation on anything, only tolls that pay for government expenses. Privatization of everything except energy production and decentralisation. Maintain a stable population by making it a individual choice to save or insure your future.
Many will fail, bringing down life longevity and emigration of lazy people. Lowering life expectancy.
Hand out free land to everybody who are willing to work it. It will crush the the prices of homes and end the banking scam of loans.
It's anarchism. But it's good, not bad as the capitalist has brainwashed you to think!
i think everyone should just be appalled by this backwards logic. "Many will fail"..... how noble of you to summarize the demise of possibly billions of souls into such a casual sentence... as long as you can maintain your antequated stance of social anarchism. nice coping... i guess going backwards is also a way forward. i wonder if you are a religious man... maybe you should try THINKING HARDER in general
@@ehici514 Religion is evil" More people die in conflicts between faiths in horrible ways, then implementing a system with my ideas, where as you have your own choice to live your life as you see fit. If you are a person with Downs syndrome, that in general never grow old, then why should you pay for a social system? In my country Sweden the government steals all such money. Income earned is not payed back to relatives of the persons that died young, but are given away to a cause the government see fit. You can not even leave the country and retire outside European union. If you do, the government steals your pension!
The same government that now funds the war in Ukraine for geopolitical reasons that don't benefit Swedes but make them targets!
We could care less about a conflict between western Ukrainian Catholics(backed by NATO) and Eastern Orthodox slavs!
You are welcome to move to Sweden with you humane ethics and work and pay large taxes and dye poor in solidarity with the other wage slaves here.
""""Oikos""""