The Global Dollar Endgame Won't Play Out How You Think | Dr. Perry Mehrling
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- เผยแพร่เมื่อ 5 มิ.ย. 2024
- Dr. Perry Mehrling, Professor of International Political Economy at the Pardee School of Global Studies, Boston University, joins Forward Guidance to discuss the health of the global dollar system. Sharing ideas from his latest book, “Money and Empire: Charles P. Kindleberger and the Dollar System,” Dr. Mehrling shares insights on the extension of the dollar to the global south and globalization of shadow banking. Mehrling and Farley explore whether rumors of the dollar’s death are greatly exaggerated, and how the end of a zero-interest-rate-fueled credit cycle could be a “little rocky.”
“Money and Empire”: www.cambridge.org/us/academic...
“Money and Empire” on Amazon: www.amazon.com/Money-Empire-K...
Follow Perry Mehrling on Twitter / pmehrling
Follow Jack Farley on Twitter / jackfarley96
Follow Forward Guidance on Twitter / forwardguidance
Follow Blockworks on Twitter / blockworks_
“The New Lombard Street”:
www.amazon.com/New-Lombard-St...
Perry Mehrling, Zoltan Pozsar, Daniel Neilson, and James Sweeney, “Bagehot was a Shadow Banker: Shadow Banking, Central Banking, and the Future of Global Finance” papers.ssrn.com/sol3/papers.c...
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Timestamps:
00:00 Intro
01:02 What Is The Global Dollar System?
02:32 The Dollar Is International, Not Domestic
06:43 The Inherent Instability Of Thought
08:49 "The Fed Learned Its Lesson From 2008"
11:45 Key Features Of A Global Reserve Currency
20:36 The Fall Of The Sterling Standard After World War 1
24:02 Sterling Was The Standard, Not Gold
26:25 "The Crime Of 1971" Was Nixon's DePegging The Dollar From Gold, According to Kindleberger
27:44 Why Was There Inflation In The 1970s (Instead of Deflation)?
30:50 Next Few Years Will Be "A Little Rocky"
36:03 The Globalization Of Shadow Banking
39:06 Blockworks Research
40:05 Money Market Funds (MMFs), Comparison Between Now And Great Financial Crisis
43:44 "The Dollar System Seems To Be Holding Together"
46:45 The Four Prices Of Money
56:02 Permissionless
57:04 Kindleberger's Critique Of The Triffin Dilemma
01:06:48 The Myth Of Bretton Woods
01:12:32 What's Missing In Contemporary Understanding Of Kindleberger's School Of Thought - บันเทิง
![[TH] VCT Masters Shanghai Playoffs DAY 5 // 100T vs PRX | FUT vs TH](http://i.ytimg.com/vi/q75pv359eP4/mqdefault.jpg)
Jack bringing high level guests again. Not just fintwit
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Even with the right technique and assets some investors would still make more than others, as an investor, you should’ve known that by now, nothing beats experience and that’s final, personally I had to reach out to a stock expert for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again
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#buySilver, KISS, Keep it Simple Stupid
Great interview Jack! Forward Guidance is crushing it at the moment, such brilliant guests. Nice to hear someone other than Jeff Snider (who I'm a big fan of) talk about these critical topics such as shadow banking and the eurodollar system.
jeff snyders videos are always so depressing 20 minutes of depressing news read by an angsty man really brings you down.
Successful people don't become that way overnight. What most people see at a glance wealth, a great career, purpose is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life.....
You are right, to be a successful person in life require him or her of hard work and time
The thing about been successful is working toward it and not going the other way round
It's obvious everyone is doing this online Investment😊
@@Perla.pagoyo I totally agree with you it has been an eye-opening experience for a lot of people.
Talking about been successful. I know I am blessed if not I wouldn't have met someone is as spectacular as Stacy Garric
Great interview Jack! It was funny that Professor Mehrling seemed surprised about how much you understand the ED system. I don't think he knows how much you've talked with Jeff Snider, Brent Johnson, Mike Green, Joseph Wang, etc. Bravo!
Yeah, it reminds me of the bar scene in Good Will Hunting "you dropped 150 grand on an education you could have learned by paying $1.50 in late fees at the public library". Thanks TH-cam and gang.
@@laro802 only for public books and only these on first shelves
lots of knowledge is blocked by algorithm and Google censorship filter
these days it's even hard to find what you know what you look for
@@szymonbaranowski8184 It is difficult now. I have searched for articles by their exact title and they do not appear on Google or Bing, at least not on the first couple of pages. Bing is actually even more censored than Google.
When the intro plays I imagine Jack dancing to it in a really goofy manner with his serious face intact.
This is a fantastic explanation of internal bank mechanics that I am not privy to. Thank you for posting.
100%except for stagflation which was caused primarily by shortages of oil.
Please try to get him on more. Outstanding interview. Brilliant and yet common sense.
I think Michael Maloney got the definitions right gold and silver are money. The dollar, the Euro, the pound, etc are currencies. Fiat currencies. Currencies and money not the same thing.
Money is broadly the intermediate medium that retains the value of a transaction.
Currency is a form of money that can be exchanged or used in a transaction but there are many other financial instruments that could hold value as well.
"We don't have gold anymore"
Breaking news - "YES WE DO!"
This is very informative.
I am not so sold on this guy and his thoughts. The French wanted their gold back in 1970 and Nixon knew that he had to close the gold window. Paper fiat and credit expanded until we have the mess we have today.
But he's correct, the gold standard ended half a century before 1971. And the inflation of the 70s actually started in the mid 60s because of the expanding eurodollar system. Nothing to do with events in 1971, the gold standard was long gone before then.
I agree with your observations and disagree with Mehrling. If anything, Nixon saved the role of the dollar as a global key currency by suspending convertibility to gold in 1971.
I also disagree that the US was reluctant to have the dollar take up this role. They enthusiastically took it up because of the benefits to be accrued from this role.
I also disagree with his point that the global dollar system was constructed by private capital, and state involvement was limited. Bretton Woods was the state being directly involved in creating this role for the US.
So the french took those dollara and used them globally and invested in the usa and recovered and bought goods for cheap, but then were crying because they usa wasn’t paying for their goods in gold.
😂
The french are truly french to the core. De Gualle hated the USA after saving that exiled clown during ww2.
Perry refused to answer so many questions my head is spinning, but shoutout to jack for asking at the very end "what are we missing"
Yeah I felt like he gave few answers and just a bunch of history lessons. You'd expect someone with such a level of knowledge to be able to apply it to today but he just kind of defaulted to teaching. I guess that's why he's a professor.
Hey, good comment!
I also found a lot of answers were a bunch of vague bull and I'm glad to see someone else who doesn't let people get away with that kind of stuff.
I'm so happy I made productive decisions about my finances that changed my life forever,hoping to retire next year... Investment should always be on any creative man's heart for success in life.
I agree with you and believe that the secret to financial stability is having the right investment ideas to enable you earn more money, I don't know who agrees with me but either way I recommend real estate or crypto and stocks.
Yeah!! It would be more beneficial and yield more profit if you actually trade on cryptocurrency, I've been trading since the dip, I've made so much profit trading.
I am interested to know more and invest in Crypto please
trading is easier with proper guidance, especially from a professional, Newbies who are not aware of how crypto truly works and wish to make profits from it, I would advise to invest with a professional like Fergus waylen, It helps secure and minimize the possibilities of losses.
I'm honestly surprised that this name is being mentioned here, I stumbled upon one of his clients testimony last week in CNBC world news
Fantastic video!🤔
Great guest! 💯👍
A young man submitted to Kissinger to apply Triffin’s as long as they RECYLE the surpluses from trading partners. US did give up some manufacturing, but 70% of their surpluses came back to the US debt and equity market.
That young man was Paul Vocker.
you guys had a guest on recently who talked about how important credit was and how everything hinges on the creation of credit, the ease of obtaining credit, etc. anyone remember who that was/which show that was?
Great job
Fantastic content as always!
What most people don't understand is the entire rails are already laid the whole back end of the financial system supposed to be flipped. The concept of these symptoms of been in development theoretically probably for multiple decades.
Good interview. A blessed and not illogical reprieve from the Doom Porn. 🎉
Doom porn? How about the nothing bad will ever happen ever porn? Haha just kidding but makes it really difficult to actually be prepared for something that routinely happens in history to a genocidal degree when half the family is spanking it to that channel.
Gold is money everything else is credit, JP Mirgan
Under the gold standard you also have credit that can expand, but the final payment is always in gold. The credit can be in the form of real bills that spontaneously circulate as money --- because they mature into gold
Good point
Yeah exactly. A ledger was used by banks for book keeping of transactions. If you're a bank in the US you could still do transactions with ledgers across countries (eg. UK) with a bank you trust (to also keep a true ledger). Then you're basically using IOU's as a way to transact with Gold or Silver as the collateral. This is basically creating credit while still being within a gold standard. Why would you send Gold to do cross country trade with each other if your balance of trade was the same? You could swap 10oz worth of gold goods to each other with pen entries and not physical gold. And if you were a UK bank doing transactions to a US bank and you're running a trade surplus you could use the excess to invest in US companies. Its still IOU's (credit) on a gold standard. Cash being transactable for Gold is the people's version of this too.
Nah, ultimately every medium used as currency no matter if it's fiat or intrinsic always depends ultimately on the same requirements... trust, faith, stability, reliability and acceptance. Then there are secondary issues like the utility. No one wants to actually transport a medium physically from one place to another so you have financial instruments that represent the underlying currency medium.
But that brief talk about credit in the video is a bit vague. I suspect he wasn't really talking about credit as an accounting term but as a financial instrument representing the gold or whatever else is supposed to be the actual medium used as a currency.
I have been watching Dr. Perry Mehrling for quite some time. I really respect his original thesis about the eurodollar market. However, in this interview, he seems to be a bit dithering in this conviction around the stability of the system. He has floated the binary of core and periphery to uphold his thesis. He acknowledges the problem at the periphery but does not do the same at the core level. Secondly, he is undermining the geopolitics of the game. Anyhow, his dithering also carries a message if one can read it.
I think I follow, but could you elaborate on what message Mehrling's dithering might be carrying. I will appreciate your perspectives on this.
Great guest, no doom and gloom.
For the time being all convertible currencies are just somewhat volatile different denominations of „Dollar“. Thus the Dollar still is THE currency and then the anchor of all these currencies, which are just Dollars in disguise. But of course the question remains: what is the anchor of the Dollar? The actual answer is: the anchor of the Dollar is the military and economic power of the US. But this answer - albeit correct for now - suffers from the unpredictability of how these powers will develop or if they will even last.
After some back and forth there is only one predictable and historically confirmed anchor of the anchor of (most of) all currencies, namely gold, for the very simple reason that it is rather invariable and in particular not significantly multipliable. This relation between gold and any potential world reserve currency holds for the Dollar and would hold for any currency which in the future ever may or not may dethrone the Dollar
There is no such thing as "lender of last resort" when you're "lending" the air.
Fiat currencies always fail as a store of value, one of the requirements to be called money.
Try taking your gold pebbles to the corner store and pay for a wad of chewing gum.
Now, hand over a dollar bill and see if you can't get in and out of that store a lot faster.
good interview being a bit conspiratorial by nature i find it hard to believe in the organic origins of the dollar system
Kindleburger has done some Spook work.
Jack, you have to bring Jeff Snider on to eloquently explain the Euro Dollar System.
You don’t see it professor? What’s your opinion on BRICS
Perry is the best.
I cant seem to grasp or picture how or what do central banks do to maintain par 🤔🤔
29:30 The international monetary system seems very stable today
Famous last words
30:00 granted no new huge FED printing... Hanke predicted inflation height nearly perfectly
There are some points which were not mentioned but highly relevant. Gold is a traditional store of wealth and when nixon took the USD off the gold standard, they struck a deal with the saudis to anchor the USD with the oil of which they were the biggest suppliers. So, a gold back dollar was replaced by the petro dollar. The way the US govt has been printing or generating dollars at full speed, it is but natural to assume that the fiat currency is not worth what it is claimed to be. China has tried to bring saudis and iran to the negotiating table so that the saudis wont need protection from the US and hence can decouple the USD from oil i.e the petro dollar will not exist. Then the core of the hierarchy will break down.
I am not sure what the replacement will be, but it will land the US in the same situation when george soros broke the bank of england in 1980. Ray dalio has said something similar -but for reasons different from what I have written above.
Simple and believable theory. Well done 👶
I regret dislike count is disabled by youtube
it is morally wrong
@@Houthiandtheblowfishwait huh? Disabling the dislike count is wrong? Or enabling the dislike count to be seen by the public is wrong?
@@ClyDIley yep in evolutionary terms you are hiding truth to judge you
Jack...next book/ author for you Martin Daunton The economic Government of the world...TH-cam Gresham lectures for outline
6:00 All banking is a swap of IOUs
Unless the bank is safeguarding actual money (i.e. precious coinage) in which case it's an IOU swapped not for another IOU but for something real
Great course on Coursera !
What countries are ok with the US being the lender of last resort?
There are always outside and unseen influences and surprises (and black swans) at play in every area of life. Theoretically, the professor may be right, but wise people prepare to be surprised. Diversify.
Raising interest rates today in an international economy damaged all small countries
One smart kid, who develoos an algorithm linked to independently fluctuating figures and total of global assets values, can replace the USD as intl trade currency standard with a block chain driven swallow currency.
Block Chain can't do multiple transactions simultaneously to satisfy demand, so at present it is a non-starter!?!
Spoken like a true Cantillonaire.
As if other countries can’t grow a system or currency like dollar.
They could... But wouldn't be competitive unless they could present at least a case for using the alternative instead of the Dollar.
And that's the rub for countries like Russia, China or even a consortium of countries like BRIX. Anyone can choose to settle their transaction using anything including something other than the Dollar but when it then come to using their pile of alternative to buy from someone else, that alternative might be refused. Only the Dollar has recognition and acceptance even in the far reaches of undeveloped countries where even the native currency might not hold value.
Dr Perry is handsome
Doesn't whole world pension ( 401 k) system want 5 percent Treasury..
BRICS? Belt & Road? Global commodities shift?
And only 3r curruncys 4 are close to the value of the doller
So many experts. So little consensus.
I think "experts" must always be quarantined in quotation marks!😊
@@tinashenyamunda8388 truth.
Great to hear other views. Good interview jack. Completely disagree (well, 90% anyway) with the Dr.
It’s amazing how he calls the BRICS “the periphery” with every major civilizational turn the periphery is what takes over. At one time Western Europe was considered the periphery. Academic cluelessness… this is a textbook example
Anyone can cherry pick a point in history. Like a broken clock that is right twice a day, some day the Dollar won't dominate global finances but if you don't set a date when that will happen, no one can fairly evaluate your suggestion.
No BRICS country is stable enough to handle the reserve World currency, and as a group would be unlikely to agree to a better system than the US and say Europe, it's a non starter, all the BRICS countries have high levels of corruption!?!
IMO there is a lot of misinformation or at least avoidance in this talk with Dr. Perry Mehrling.
The stuff he does probably get right are the broad strokes and fundamentals of the use and how and why currency is generally valued which although he doesn't list should include such things as trust, reliability, stability, utility and acceptance of the currency which are all present in the global default Dollar but are rarely found for long in any other currency.
In particular, the first surprising statement I heard was that Perry Mehrling stated that others and in particular someone or country in Europe can "create EuroDollars." After hearing that, I waited for an explanation how this can be accomplished and by whom but never heard a clear answer. I seriously doubt that there is any way anyone other than the US Treasury can create Dollars out of thin air and that includes any use of the Dollar including Eurodollars and Petrodollars. In fact, I could call it one of those assumed "givens" that no one but the country of origin should have any legal right to create new currency. That said, this American right to print Dollars is not exercised much because a country is always restrained by the perception that simply printing currency to have more of it rather than by earning is considered reckless and irresponsible, likely leading to loss of faith, trust and resulting in instability. This is why despite complaints of "American privilege owning the Dollar, the US is very careful how the Dollar is handled fully understanding the consequences if anyone across the world lost faith and trust in it.
This also leads to the video's discussion about a "Lender of Last Resort." I'm not even sure why such a thing has any importance because except for those misfits that comprise BRICS and their trading partners that don't know how to manage their economies, there should never be a need to identify a "Lender of Last Resort." All healthy economies that can faithfully fulfill their debt obligations never need to identify any "Lender of Last Resort.."
Although I didn't notice the video's discussion go heavily into management of economies, it should be noted that if indeed Dr Perry Mehrling formalized his ideas and wrote his book by 2018, economic management practices have radically changed with the practical introduction of MMT by Fed Chairman Jerome Powell starting in Oct 2019 as a solution to resolving the crashing Trump economy and the misguided Tax Reform of 2016 which was supposed to bring back enough businesses and work that went offshore to the US. As many economists predicted, there was some stimulus initially but by 2019 the effects had worn off and tax revenue shortfall was so bad the Fed had to institute "Extraordinary Measures" which included suspending payments to the Federal Employee Benefits funds. For those who think that sounds familiar, they're right... It had to be done again this year (2023) but is in large part due to weaning the US economy off the stimulus Congress authorized to bridge the US economy across the Pandemic slowdown and that worked out pretty well. The US economy has exited the Pandemic slowdown rip roaring to go at pre-Pandemic levels compared to the total collapse of the Chinese economy. For anyone who complains about the US Federal Debt and Deficit, I say just look at what is happening in China and be glad we didn't have to go through that which is re-experiencing the Financial Meltdown of 2008 and its 8 year recovery but on a much bigger scale all over again.
I'd rate this discussion a "meh."
There's some useful stuff if people hadn't heard before like the fact every country and transaction can voluntarily choose to settle in the currency of their choice. At least today,, unless the country is sanctioned, there usually aren't restrictions on what currency to use. But IMO the discussion doesn''t get into the details of for instance why Saudi Arabia is willing to settle some oil transactions in yuan but most will have to remain in Dollars.
How is “who wants to take that responsibility” not a continuation of Kipling’s “White Man’s Burden?” 20:25
"The system is holding together" . Yeah OK - not much credibility here when he confuses inflation with prices vs the supply of money
I've listened to enough shows before to know to skip the ones with "Dr.s" and "Professors."
This dude is an expert in cargo cult economics
The infrastructure of the new back of the systems in front of everyones faces lol.....
Excellent, next step back to Jeff Snider.
haha. He would disagree with a lot of what's been said.
It is a pity the weaponisation of the dollar system was brought up in the discussion. In a way, it is as if the USA were forcing some (many) countries who do not want to abide by the US rules, to invent an alternative system, which is all the more logical as the USA do not have any longer the economic and political clout they had in the 70's.
The weaponization of the Dollar is mainly as a tool to enforce sanctions and punish those who violate International law, like invading other countries for the purpose of conquest and annexation or threats to kill and maim for selfish reasons that violate law. The Dollar is not weaponized for whimsical reasons like to disrespect by itself.
That's not true an English official proposed something equitable but the USA wanted this extraordinary privilege.
7:00 All banking systems require a lender of last resort
Except full reserve deposits with maturity-matched lending, which is to say non-fraudulent banking
Quick send the Fed more chewing gum and duck tape
The US dollar isn't going to be replaced any time soon by any other Fiat currency, but the law of accelerating issuance and depreciation might well destroy it's value much faster than we expect. Alternative Fiats are not the solution because no economy is large enough to guarantee trust and liquidity and guarantees open markets as a prerequisite for a reserve currency. We're gonna have to go back to precious metals or the block chain.
Look at what bricks is doing and DLT companies that are partnered with the BIS the IMF etc are doing they're creating an intermediary so that there would be a even playing field even playing field so that the president of Kenya said they can complete trade with Djibouti using each native currencies and don't need US dollars. There won't be any nation's currency as the dominating currency. The dollars days in that order our way closer to being over then I think most of you really realize. The Yuan Will never be The reserve currency because the Chinese wanted to be the reserve currency even less than we do it would create a capital flight out of their country amongst their billionaire millionaire classes. Infrastructure is laid out trade finance remittances etc all the. All the companies fenestra every one of them's all set up the whole rails or laid
Every time I listen to guys like this I have to listen to Peter Schiff and others like him to get opposing opinions. In the end I am not sure who is right but it's better to be safe than sorry.
I’ll take the man with the number one fund in the world over a guy who looks like a classic case of career tenur
Monetary not financial 🎉🎉🎉🎉🎉
Academia gets it wrong again. The current reserve system absolutely will not hold or stay. No reserve currency lasts forever as history has shown. The migration process has started and eventually the dollar will NOT be the reserve currency. This is incredibly obvious.
XRP :) EPAC, Japan,Mexico. EUR & USD tested right now through other countries with currencies pegged 1:1 to them both. All those countries and Central Bankers already connected to Ripple Net. XRP was chosen asset by them and Ripple replace FED as lender of last resort for XRP escrow they hold. XRP and USD has a lot of similar characteristics in that manner. They are both networks and XRP Ledger network is replacing country after country USD Network
Great interview recruit,...Jack. PM is the best!
He has managed to write a book on a subject while fundamentally misunderstanding the system and misrepresented history. If that’s your idea of ‘the best’ I’d be intrigued to hear what your opinion of ‘the worst’ is…
@@villhelm expand your thought and we can talk,...and the worst is Jeff Snider's Eurodollar University.
3:30 International dollars are the liabilities of private entities around the world, not liabilities of the US central bank
Uh, no. The foreign banks can't issue dollars and are not obligated to redeem dollars for anything in particular unlike the Fed (12USC411)
The dollar-denominated debts are liabilities of private entities, but they are paid in the liabilities of the Fed
IMO untrue. The Dollar is manageable by the US government only within the borders and jurisdiction of the US. The Dollars that wind up used by others beyond the jurisdiction of the US do so voluntarily and on their own free will, and cannot be directly affected by the US government. At best, the US might have an interest in the transaction if the transaction passes through an institution the US has an interest in like Swift, but that again is entirely voluntary and not a requirement of the transaction partners.
@@tonysu8860 how does that contradict what I said?
@@anonymousAJ I see now that you were quoting the questionable remark in the video and is not your own thought.
Central Bankers MOSTLY UNDERSTAND?? Growing money Supply and shrinking it is totally insane!! EXPLAIN HOW THEW MOSTLY UNDERSTAND?
Actually nothing I noticed in this video mentioned money supply management. It could even be said that this person doesn't understand MMT and his ideas are based on previous monetary and economic theories.
@@tonysu8860 My question as well... MOSTLY UNDERSTAND?? I would think they SHOULD always understand?
Sorry, but I won't hold dollars long term and be debased at the will of a small committee of people. Gold and bitcoin are much better.
Cash is trash. Load up on crypto, gold and silver and love off the grid
70´was not a good time to be alive ! Why?
Jack’s got a gift for really good questions and the best interviews. Bravo.
Professors teach other people's works, and if your doing that, than you have no works of your own.
This guest seems to underestimate the effects of other nations not just "worrying" and watching withbminimal action and actually conspiring amongst each other to bring a US failure. If everything was normal or maybe 25 yrs ago maybe this would be true.
24:00 The world was on a sterling (i.e. British currency) standard, not a true gold standard
This was briefly true before the sterling collapse, just as it was briefly true of Bretton Woods before the dollar collapse. And before these brief periods money meant metal coins, period. Paper notes were valued only so far as they could be exchanged for metal coins
19:30 I don't see any alternative to the US dollar as a global reserve currency
Gold?
He talks about us going back to it if you listened.
Xrp
5:30 You don't know what institutional structures you're going to need until you build something and it breaks here and you go "oh, I guess that wasn't as stable as I thought"
Or you could listen to the Austrian school economists who were telling you exactly how it was going to break years in advance, because they understood the inherent instability of fractional reserves, fiat currency, and central bank manipulation of interest rates
Excellent guest Jack! Nice to see that there are some academics who understand the Eurodollar market, shadow banking, swap lines, etc. You don't hear this from most mainstream economists who act as the experts on Bloomberg and CNBC. My only disagreement with Professor Mehrling is his confidence that the "center will hold", as I'm concerned that political instability in the U.S. given the growing chasm between the two political parties may lead to mistakes that shake confidence in the dollar and treasuries, such as the upcoming debt limit negotiations. I guess only time will tell how well the center holds. (Also majored in political economy as an undergrad during '75-'79, but went to Law School after that. So this podcast brings back memories of college, particularly Kindleberger, who several of my professors had us read.)
The BIS is 'purely technical'? Good grief, how disingenuous
One of the best yt finance channels. Good info.. less fud
All I hear is complete BS! Currency has never produced wealth, nor will it! Currency allows governments, politicians, and central banks to rob wealth from those who produce it, full stop! Money stores the value of the productivity produced and allows it to be used easily in exchange for other goods and services. I love listening to PHDs as so many are full of BS, this guy is no different. Fundamentals of economics do not change when discussing macro or micro, they are bound by the same laws. As the old saying goes, BS baffles brains!
The accusation of China's debt based economy is that China has built the world's second largest collection of today's wealth by borrowing against the future. Ordinarily, this might not be such a bad thing but China's published data is inaccurate, unreliable and opaque. No one really knows the full extent of China's debt burden and when parts of it come due.
There is little argument that for example China's national productivity in the goods it manufactures and its value is nowhere close to what the US and maybe even the EU produces so there is deep suspicion that China's wealth (liquid cash available to be used any way it wants) is not the product of hard work making valuable products but the result of financial manipulation that will collapse.
@Tony Su The Global Economy is a house of cards. It will all collapse, and he, with the Gold, will lead! You can analyze this 6 ways to Sunday; in the end, the only thing that matters is real wealth; all else is fake and means nothing!
We don't need debt based currencies if we can tokenize hard assets like gold, silver, copper and energy. We can trade these assets on open decentralised global ledgers.
Stupid Idea, each of those assets can be expanded arbitrary especially energy.
@@TheReferrer72 You can dig for more gold and oil, but not "arbitrarily"
"" Credit/fiat is good because it's elastic, gold is bad money because it's not ""* .... ??
He says money when he should say currency. Gold is great money because it holds value and doesn't expand. Currency has the potential to be a great economic tool because it expands, it's a worse version of money.
😱✌️🙏🙏🙏🙏🙏🙏🙏🙏🙏🤞
👍👍👍🇧🇷🇷🇺🇮🇳🇨🇳🇿🇦👏👏👏
This guy don't understand what he is talking about
He sure thinks he does though.
Like many economists, he lives in a world of theories and equations.
Ads, ads, ads...
pay then...
when you understand he's speaking about history, it makes sense. Thanks Jack
Another American telling the world why dollarization is inevitable and that it is good for the world need to accept American fiat currency in trade for tangible goods. May be the guy is right, but rooting for the home team is hardly unbiased.....aren't there any independent commentators to interview?
The majority of worlds leading financial economics share his view...Hysterical anti Americanism wont change facts.. 90% of 80 trillion dollars burried in offshore tax heavens are in dollars. No other currency can replace it...
so tell me about the jap yen.why is gold so high in Yen?
Bitcoin and crypto is an alternative.
Just bitcoin, ETH has several critical flaws and rest have no network effects.
This guy's facts are likely wrong
My guess this little school marm has lost his ass in Bitcoin ponzi schemes
This guy... typical