Odd Lots8 Heinä 2024

MMT's Godfather Says the US Government Is Spending Like a Drunken Sailor

Modern Monetary Theory has gained prominence over the last several years by offering an alternative view on the constraints to fiscal policy. The basic gist is that the size of the deficit is not per se problematic. What matters are real resource constraints, and that if government spending gets too high — or is spent in unproductive ways — then inflation can materialize as too much money collides with insufficient supply. Another argument that some MMT adherents make is that the conventional path to fighting inflation (higher interest rates by the Federal Reserve) can actually be inflationary, because the coupon payments made by the government to Treasury holders constitute a form of government spending or fiscal expansion. In this episode of the Odd Lots podcast, we speak with Warren Mosler, the intellectual godfather of MMT, to explain the mechanisms at play and assess the current macro environment. Perhaps surprisingly, Mosler is concerned with the combination of high government debt loads, high deficits (which he characterizes as spending like a drunken sailor), and the orthodox approach the Fed is taking to fighting inflation. With debt as high as it is, the annual interest payments due to these rate hikes has gone up significantly, creating a situation that mainstream economists might call Fiscal Dominance. He explains how this environment is a recipe for consistently higher and sustained inflation in the years ahead.

See omnystudio.com/listener for privacy information.

Kokeile Premiumia

Nauti 14 päivää ilmaiseksi

Tilaa Premium

Jaksot(1185)

Tyler Cowen on Why AI Hasn't Changed the World Yet

In many respects, AI technology is already mind-blowing, and can perform many tasks far better than the average person. And yet by and large, its impact has been hard to detect. We haven't seen some h...

20 Marras 202551min

The Politics of AI Are About to Explode

AI wasn't much of a topic in the 2024 election. But it will almost certainly be big in 2028, and probably even the 2026 midterms. There are concerns about all the money being spent and whether a feder...

19 Marras 202545min

Jeffrey Gundlach Says Almost All Financial Assets Are Now Overvalued

Stocks are overpriced. Bonds are overpriced. And private assets are a powder keg. This is the view of Jeffrey Gundlach, the founder and CEO of DoubleLine Capital. As part of our 10-year anniversary ce...

17 Marras 202559min

Citi's Dirk Willer on How You Know When the Bubble Is Over

According to Dirk Willer, the Global Head of Macro Strategy at Citigroup, we are definitely in bubble territory. Per his research, the stock market has been in a bubble since May. Unlike many people, ...

15 Marras 202539min

Why Paul Kedrosky Says AI Is Like Every Bubble All Rolled Into One

In recent weeks, there's been renewed anxiety about the sustainability of the AI boom. This is partly due to comments from OpenAI CFO Sarah Friar about a possible role for a government backstop in the...

14 Marras 202547min

Cliff Asness on How Markets Got Dumber in the Last 10 Years

The Odd Lots podcast has been around for 10 years. Unfortunately, markets have gotten less rational over the same time frame. At least this is the contention of Cliff Asness, the co-founder and CEO of...

13 Marras 202557min

Jerry Neumann on the Problem With Investing in AI Right Now

AI has made a lot of people fabulously wealthy. But sorry, it's probably not going to be the thing that makes you rich. And if history is any guide, we don't even know who the real AI winners are goin...

12 Marras 202548min

How Chinese Real Estate Became the Biggest Bubble in History

Land is a weird asset. We need it to be affordable because everyone needs somewhere to live. But for many people, real estate is also their biggest store of wealth — a kind of national piggybank that ...

10 Marras 202547min

Kaikki yhdessä sovelluksessa

Kuuntele kaikki suosikkipodcastisi ja -äänikirjasi yhdessä paikassa.

Sinulle valikoitua sisältöä

Podme-sovelluksessa kokoat suosikkisi helposti omaan kirjastoosi. Saat meiltä myös kuuntelusuosituksia!

Jatka kuuntelua koska tahansa

Voit jatkaa siitä mihin jäit, myös offline-tilassa.

Premium

9,99 €/kk

Kaikki premium-podcastit
Ei mainoksia
Ei sitoutumista, peruuta koska tahansa

Aloita 14 päivän kokeilu

Premium

13,99 €/kk

Kaikki premium-podcastit
Ei mainoksia
Ei sitoutumista, peruuta koska tahansa
Yksi lisäkäyttäjä

Kokeile 14 päivää maksutta

Suosittua kategoriassa Liike-elämä ja talous

Tarinat ja äänet, joita rakastat kuunnella

Kuuntele kaikki suosikkipodcastisi ja -äänikirjasi

Lue lisää