Chapter
Warning of Economic Bubbles and the Need to Inform the Public
32:36 - 40:42 (08:06)
The interviewee expresses concern about the current state of the economy and the danger of creating bubbles by injecting too much money into it. They stress the importance of informing the public about the impending difficulty, including the rise of interest rates and identifying a plan to overcome it.
Clips
The Federal Reserve creates liabilities to buy debt or other assets, so if they decide to burn money, they sell back their assets and the bank pays them in dollars, which are essentially put aside or burned.
32:36 - 33:50 (01:14)
Summary
The Federal Reserve creates liabilities to buy debt or other assets, so if they decide to burn money, they sell back their assets and the bank pays them in dollars, which are essentially put aside or burned. This means that the underlying issue has not been solved, only the type of debt has changed.
ChapterWarning of Economic Bubbles and the Need to Inform the Public
EpisodeJon Talks to Thomas Hoenig: Our Economy Is a Delusion
PodcastThe Problem With Jon Stewart
The banking system operates on the principle of making money by lending money.
33:50 - 37:35 (03:44)
Summary
The banking system operates on the principle of making money by lending money. However, artificially low interest rates and quantitative easing may undermine the system's fundamentals.
ChapterWarning of Economic Bubbles and the Need to Inform the Public
EpisodeJon Talks to Thomas Hoenig: Our Economy Is a Delusion
PodcastThe Problem With Jon Stewart
The injection of money into the economy may create bubbles and cause more problems in the long run, and it's important to start preparing for future difficulties and informing the public about the potential consequences of the current economic recovery plan.
37:35 - 40:42 (03:07)
Summary
The injection of money into the economy may create bubbles and cause more problems in the long run, and it's important to start preparing for future difficulties and informing the public about the potential consequences of the current economic recovery plan.