A rebuttal to "Why the US Dollar Will Collapse" with Mike Maloney interviewed by Stefan Molyneux on Freedomain Radio. Mike and Stef cover various economic issues from a classical/Austrian viewpoint of economics which all draw the same conclusion: the US dollar is going to collapse SOON.
Dylan Moore of the Volitional Science Network and Nima Mahjour of economicsjunkie.com provide evidence to rebut many of the points brought up in the video:
1. Why the Federal Reserve is NOT a private bank 2. Why the Fed DOES NOT "print money" 3. Why interest rates are not a useful metric for predicting economic stability 4. Why the Fed can only "push" interest rates UP, not down 5. The myth of fractional reserve banking 6. The myth of the barter theory of money 7. Why the Fed is not causing inflation 8. Why the evidence points to US dollar NOT CRASHING
Dylan and I discuss various theories about the reasons for inflation. It's not just the money supply and it's not just the invisible hand. In fact, money supply seems to have very little to do with it.
Dylan Moore of the Volitional Science Network and Nima Mahdjour of EconomicsJunkie.com welcome WARREN MOSLER to the Volitional Science Network. Warren is the founder of Modern Monetary Theory and the foremost expert on the subject. Warren weighs on the several subjects we have covered up until this point, as well as dropping several bombshells about the functioning of the economy and the utter incompetence driving most economic problems. We cover:
-Why MMT is so distasteful to conservatives (and everyone else) -How US bonds don't fund the government -How interest rates ACTUALLY affect the economy -What quantitative easing does to the economy (virtually nothing), and why everyone freaks out about it (and why they shouldn't) -What actually happened during the banking bailouts of 2008 (it's nothing like we've been told) -Basics of the banking sector -How the US is utterly overtaxed and the damaging economic effects of transactional taxes (sales tax, VAT, etc.) -Proposing an idea: wiping out ALL federal taxes and replacing it with a base 5% property tax. No more IRS.
About halfway through the video we experience some minor connection problems. We decided to cut our videos to improve the connection.
Part 1 - Intro: Gold isn't money and the national debt is great d.tube/#!/v/economicsjunkie/4rvnq1z7
Dylan Moore of the Volitional Science Network and Nima Mahjour of EconomicsJunkie.com go over the basics of MMT: what you've never been told about the economy.
-The concept of Credit Money and the Statist origins of money -Sectoral Balances: how foreign trade can affect money supply and economic conditions -Floating vs. Fixed Currency Systems: the arbitrariness of the gold standard -Why do governments sell bonds? Do they actually fund spending? No. They are essentially risk-free assets for rich people. -What do federal reserve interest rates do? Nothing. -If interest rates do nothing, why does the Fed control them? -What does Quantitative Easing do? Turns out it's nothing to worry about. -The basics of the private banking system
Gold isn't money. The national debt is great. Federal surpluses crash the economy. Taxes don't fund spending. ...what is this nonsense? Trust us! It makes sense once you understand the pieces. Dylan and Nima discuss MMT basics from a conservative standpoint.
Dylan and I discuss why modern nations need national decifits through the lens of Modern Monetary Theory (MMT), and what function it performs in society.
I break down specific examples in history, explaining how hyperinflation in nations is always always due to political factors, not economic ones. I analyze the Weimar Republic, Zimbabwe, Venezuela, and Greece.
We also discuss the political-economic situation of the Eurozone, and some of the reasons why the euro has been such a disaster. Specifically, we look at why the euro has crippled economies like Greece and bolstered economies like Germany.
My friend Dylan from the Volitional Science Network interviews me to discuss Modern Money Theory and why it is so dangerous to "balance the federal budget".
It is typical for conservative administrations to attempt to practice "sound economics" by balancing the budget. However, the rules for economy function differently with the federal government than they do for the rest of us. I use MMT to describe what's going on in the current economy.