Two of my favorite people ever!!! Your collective brilliance and clarity of thought is absolutely inspiring. Thank you for sharing your thoughts and insights with the world!
When wages are going up and prices are increasing across the board, it's hard to differentiate that from monetary inflation. People expecting more money for the same thing is the dollar losing it's spending power. I would say that can be differentiated from asset inflation on things like real estate and stocks.
The best break down of the problems the financial system is facing I’ve heard. Lots to collate on; I will have to listen to this again & again. One thing I can say is I would feel a hell of lot better if you gentlemen were in charge of monetary control. Hope you guys continue the dialogue with future installments.
Thank you so much for an important whole hearted discussion about our monetary system. Hope Mike will hold more of deep dive no nonsense topics in the future!
Great conversation, but you need to do a sound check and balance the audio - Hugh is much louder than the others, perhaps by nature(!), but this time by technology.
Hugh, great point about mentioning Sovjet style capitalism/tolkenization, education is the key to success, I completely agree. The only thing I would like to point out, those companies certificates were eventually traded for bread, beans and milk.
Rapidly rising wages are expected to push Federal Reserve interest rate hikes at an even faster pace. Currently emerging inflation, still can be considered as temporary, raising minimum wage would cause permanent inflation :-) "In theory, raising the minimum wage forces business owners to raise the prices of their goods or services, thereby spurring inflation."
Interesting discussion but would have been better if they'd invited someone with more of an opposing view such as Luke Gromen or Peter Schiff. That guy Roderick was there as a token inflation guy but he was outnumbered and outgunned and didn't really have the spunk to push back against the 2 big beasts
Clearly you did not even listen to some of the Tom Rederick of effects of population demographic to political representation representation features that influences the direction of policy in redistribution of assets pertaining to UK and EU regions which Mike Green had greatly acknowledged(even on his market structure thesis to inelastic market hypothesis). amongst other points. His concerns on the inflation end(like most pro inflation arguments that are valid) are a matter of determining what are the base conditions and when is the offset(two near impossible things to forecast).
In terms of speakers, I may give you Luke Gromen. He has applied experience in trading in the asset markets, credible in arguing technical points of relationship of assets to inflation(I disagree with his conclusions to his hypothesis on those topics). Peter Schiff on the other hand just does not have hands on experience, fundamental and deep technical knowledge in relating at a deeper level structural issues of financial and monetary markets. Schiff explanation of debt as a function to business, household, bank or govt balance sheet in some respects, sees global markets in old neoclassical economics and behavioral psychology market paradigm, with some Austrian Econ sprinkles. Even Harley Bassman, a partner of Mike Green in interview with Jeff Snider, even brought better counterpoints for arguments for the inflation side. Even Russel Napier, a world class practitioner in Global FX Exchange markets had raised better arguments for inflationary side(as a future prediction) much better than Schiff despite having a deflationist stance pre 2020. Even the fundamental elements of collateral with extremely crucial features for assets and liabilities in debt and security markets in real world trading of monetary resources or non monetary financial assets at base level is severely lacking. His conversation on those areas in my eyes tends to entertain ppl who want information for consumption as an end product. These talks are aimed to attract ppl such as myself and many others whom are interested in using their skilled labor in their respective trade(IT, construction, engineering, etc) to develop experimental local solutions through trial and error; eventually with hopes of spawning great things. But that requires ppl whom have invested in their skills and be productive in their industry in long time period where they can share problems and insights of what the world is and the solutions or implementations(successful and failed).
Tom's ideas to swap out the gold or carbon credits as the world's neutral reserve asset. He would pay carbon credits to oil, origin quote Marin Katusa, green barrels of energy equivalent. We will still need to discuss the difference between imperial dollars and metric dollars.
One element not addresses (as opposed to handing out assets) which would strengthen labour vs capital; is antitrust and to break the power of monopolies in the U.S. How many businesses destroyed by consolidation -Amazon, Pharmacies etc....
Michael great point, just another fiscal policy/helicopter money drop, over here in the Netherlands a household with an average energy consumption will receive around € 565 on the energy tax in 2022.
Quite higher commodity prices will eventually surge inflation rate for sure, right! "There are several factors that can drive inflation. Nobel Prize-winning economist Milton Friedman wrote, “Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”2 In other words, too many dollars chasing too few goods. However, if the quantity of money rises and people don’t spend it, then it might not be inflationary." Japan has a very much declining population, that just might explain low consumption, providing less spending and possibly low inflation rate :-)
Sorry, but Hugh's explanation why the dollar will be supported at the end of the conversation is seriously flawed. He talks about individual people, while currency reserves are the big elephant in the room. They are allocated by central banks which are typically not profit focussed, but have alternative motives.
taking the liberty of explaining someone else's thoughts here, but I think the point HH is making is that central banks are going to keep the status quo because there is no other option. Other countries could also have a reserve currency status, but that would require opening up their financial markets and allowing a free floating currency, which they are totally unwilling to do.
"building productive capacity" require final demand - the American consumer is tapped out - which is the reason why corporations have been buying back shares instead of investing in plant and equipment..
China can not provide deficit spending, let's talk yuan-priced oil instead of petrodollar or renminbi as the only reserve currency, the yuan's share is a mere 2.5% of official foreign exchange reserves. :-)
imagine holding the view that minimum wage hikes are a positive development. Then he calls “putting a price on carbon” a “market solution.” This is outrageously stupid. Roderick is clueless.
Two of my favorite people ever!!! Your collective brilliance and clarity of thought is absolutely inspiring. Thank you for sharing your thoughts and insights with the world!
Hugh and the prodigy Tom are fantastic
Right on HH! Price increases and inflation are NOT necessarily the same thing and what we have are increased prices that will crush the consumer!
When wages are going up and prices are increasing across the board, it's hard to differentiate that from monetary inflation. People expecting more money for the same thing is the dollar losing it's spending power. I would say that can be differentiated from asset inflation on things like real estate and stocks.
Great chat, should have millions of views
DUDES! Such a thoughtful exchange
Great stuff, thanks again!
Final statement from Hugh and conclusion from Mike is a gem 💎 Thanks guys !
The best break down of the problems the financial system is facing I’ve heard. Lots to collate on; I will have to listen to this again & again. One thing I can say is I would feel a hell of lot better if you gentlemen were in charge of monetary control. Hope you guys continue the dialogue with future installments.
This’ll be a great one. !!!! HUGH HUGH, Hugh.
Thank you so much for an important whole hearted discussion about our monetary system. Hope Mike will hold more of deep dive no nonsense topics in the future!
Really really good-worth-while content from outstanding individuals!!!
Amazing conversation as always
turned philosophical midway and really deep
Incredible conversation, full of insight.
what is flock of luke?
Great conversation, but you need to do a sound check and balance the audio - Hugh is much louder than the others, perhaps by nature(!), but this time by technology.
The volume levels are awful
"Everbody needs their face toilet paper" lmao
Hugh, great point about mentioning Sovjet style capitalism/tolkenization, education is the key to success, I completely agree. The only thing I would like to point out, those companies certificates were eventually traded for bread, beans and milk.
Amazing conversation. The blackdesperado is greatful for your perspectives.
Hugh is the “Sean Penn” of the finance world. When you do another podcast with him, it would be funny if Mike mirrors him.
Have you not heard Zoltan Posar - or, do you all disagree with him? Hey Mike, it'd be great if you could have a discussion with him, ZP!
Found this a year late…it’s epic.
Regarding the change topic, us genx folks have to step up. We raised ourselves, change is easy for us. We step up and boomers retire.
"negative balance of payment nations doesn't become Japan when their CBs create currency, they become Argentina".
- LG
36:40 HH lmfaoooo
thatchers tokenisation' of the housing market is equivalent to Americas spread out west. it's all about having assets to expand into.
Let's talk about Japanese real estate, there are many more differences between the West and Japan, right!
Rapidly rising wages are expected to push Federal Reserve interest rate hikes at an even faster pace. Currently emerging inflation, still can be considered as temporary, raising minimum wage would cause permanent inflation :-)
"In theory, raising the minimum wage forces business owners to raise the prices of their goods or services, thereby spurring inflation."
Interesting discussion but would have been better if they'd invited someone with more of an opposing view such as Luke Gromen or Peter Schiff. That guy Roderick was there as a token inflation guy but he was outnumbered and outgunned and didn't really have the spunk to push back against the 2 big beasts
Clearly you did not even listen to some of the Tom Rederick of effects of population demographic to political representation representation features that influences the direction of policy in redistribution of assets pertaining to UK and EU regions which Mike Green had greatly acknowledged(even on his market structure thesis to inelastic market hypothesis). amongst other points. His concerns on the inflation end(like most pro inflation arguments that are valid) are a matter of determining what are the base conditions and when is the offset(two near impossible things to forecast).
In terms of speakers, I may give you Luke Gromen. He has applied experience in trading in the asset markets, credible in arguing technical points of relationship of assets to inflation(I disagree with his conclusions to his hypothesis on those topics). Peter Schiff on the other hand just does not have hands on experience, fundamental and deep technical knowledge in relating at a deeper level structural issues of financial and monetary markets. Schiff explanation of debt as a function to business, household, bank or govt balance sheet in some respects, sees global markets in old neoclassical economics and behavioral psychology market paradigm, with some Austrian Econ sprinkles. Even Harley Bassman, a partner of Mike Green in interview with Jeff Snider, even brought better counterpoints for arguments for the inflation side. Even Russel Napier, a world class practitioner in Global FX Exchange markets had raised better arguments for inflationary side(as a future prediction) much better than Schiff despite having a deflationist stance pre 2020.
Even the fundamental elements of collateral with extremely crucial features for assets and liabilities in debt and security markets in real world trading of monetary resources or non monetary financial assets at base level is severely lacking. His conversation on those areas in my eyes tends to entertain ppl who want information for consumption as an end product. These talks are aimed to attract ppl such as myself and many others whom are interested in using their skilled labor in their respective trade(IT, construction, engineering, etc) to develop experimental local solutions through trial and error; eventually with hopes of spawning great things. But that requires ppl whom have invested in their skills and be productive in their industry in long time period where they can share problems and insights of what the world is and the solutions or implementations(successful and failed).
Tom's ideas to swap out the gold or carbon credits as the world's neutral reserve asset. He would pay carbon credits to oil, origin quote Marin Katusa, green barrels of energy equivalent. We will still need to discuss the difference between imperial dollars and metric dollars.
One element not addresses (as opposed to handing out assets) which would strengthen labour vs capital; is antitrust and to break the power of monopolies in the U.S. How many businesses destroyed by consolidation -Amazon, Pharmacies etc....
Hugh, what assets should be provided to poor people, I assume the FED coin in combination with credit status :-)
Michael great point, just another fiscal policy/helicopter money drop, over here in the Netherlands a household with an average energy consumption will receive around € 565 on the energy tax in 2022.
The End of History and the Last Man :-)
there is no saying that says all roads come from Rome is a great quip
I’m only 2/3 through so far, but at no point have they brought up the unmanageable worldwide debt
Quite higher commodity prices will eventually surge inflation rate for sure, right!
"There are several factors that can drive inflation. Nobel Prize-winning economist Milton Friedman wrote, “Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”2 In other words, too many dollars chasing too few goods. However, if the quantity of money rises and people don’t spend it, then it might not be inflationary."
Japan has a very much declining population, that just might explain low consumption, providing less spending and possibly low inflation rate :-)
Sorry, but Hugh's explanation why the dollar will be supported at the end of the conversation is seriously flawed. He talks about individual people, while currency reserves are the big elephant in the room. They are allocated by central banks which are typically not profit focussed, but have alternative motives.
taking the liberty of explaining someone else's thoughts here, but I think the point HH is making is that central banks are going to keep the status quo because there is no other option. Other countries could also have a reserve currency status, but that would require opening up their financial markets and allowing a free floating currency, which they are totally unwilling to do.
there is someone here who doesn’t get what Hugh was saying, and it’s not Hugh.
"building productive capacity" require final demand - the American consumer is tapped out - which is the reason why corporations have been buying back shares instead of investing in plant and equipment..
Not even wrong.
China can not provide deficit spending, let's talk yuan-priced oil instead of petrodollar or renminbi as the only reserve currency, the yuan's share is a mere 2.5% of official foreign exchange reserves. :-)
ray dalio says today its like the 1970s...
Michael and Hugh should swap backgrounds!
Fund thorium energy
Hugh your audio is a real pain almost makes me wanna switch off
Bringing jobs back to the West, means far more inflationary pressures to the economy, right!
Mr. Green & Hedge Ledge. ⚠️⚠️ Critical Warning ⚠️ 🚨 🚨 macro emergency siren 🚨s 🚨
very disappointing to hear Hugh gushing about the European carbon credit scheme. it’s back-door socialism.
imagine holding the view that minimum wage hikes are a positive development. Then he calls “putting a price on carbon” a “market solution.” This is outrageously stupid. Roderick is clueless.
Study some MMT
Hugh Hendry is unwatchable.