Full Comment - How central bankers broke the economy

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00:00:20.740 Hello, this is Full Comment.

00:00:22.960 I'm Sabrina Meadow, and I'm guest hosting this week's podcast.

00:00:26.080 If you haven't done so already, please consider subscribing.

00:00:30.000 Everyone's talking about monetary policy and central banking these days,

00:00:33.500 which is funny because just a few years ago,

00:00:35.560 no one was talking about it outside of pretty niche policy circles.

00:00:38.840 And it's easy to understand why.

00:00:41.000 Inflation is at its highest rate in decades and shows few signs of slowing.

00:00:44.560 Interest rates are rising quickly, and entire generations are priced out of homeownership.

00:00:48.840 There's even talk of a recession.

00:00:50.900 So how did we get here?

00:00:52.560 Well, it has to do with the fact that one in five Canadian dollars didn't even exist pre-pandemic.

00:00:57.500 The Bank of Canada rapidly grew our money supply, and it was by no means distributed equally.

00:01:03.120 To shed light on exactly what happened and how radical choices by central bankers distorted the economy and society at large,

00:01:09.400 we have Christopher Leonard, a New York Times best-selling business journalist, on the podcast today.

00:01:14.200 His latest book is called The Lords of Easy Money, How the Federal Reserve Broke the American Economy,

00:01:18.900 and it's one of my favourite reads of the year.

00:01:21.700 Many of his shocking findings about the Fed and how it works are mirrored here by the Bank of Canada.

00:01:27.080 It's going to be an absolutely fascinating conversation, so let's dive in.

00:01:30.740 Chris, thank you so much for joining me today.

00:01:33.520 It's great to have you here.

00:01:35.580 You know, not everyone is an economist or follows central banking very closely,

00:01:39.720 so perhaps we could start off with you explaining the overall gist of your book

00:01:45.280 and exactly what it is that the Fed and other central banks do.

00:01:50.040 Yes, thank you.

00:01:51.100 And it's funny you say that because, I mean, even as a business journalist,

00:01:55.060 I didn't really follow the Federal Reserve or any central bank closely.

00:01:58.640 It seems like central banking is this part of the economy that's really, really complex

00:02:03.840 and really distant from our lives, and when you hear about the Fed,

00:02:07.360 you hear about interest rates and bond purchases and all this arcane stuff.

00:02:12.080 But the reason I wrote this book is because, as a business reporter,

00:02:16.640 I have the chance to get out and talk to lots of people in all different places in the economy.

00:02:23.620 And in 2016, I was interviewing somebody who's sort of like one of these financial traders

00:02:29.500 who really understands markets, and this guy explained to me

00:02:34.820 what the Federal Reserve had been doing since 2010

00:02:39.040 and explained it in kind of this like mechanical and granular way,

00:02:43.180 and it just absolutely blew my mind, and that's what led me down the path to write this book.

00:02:48.300 So the entire goal of this book is to try to explain to everyday people who don't follow the Fed

00:02:54.760 just how radical and unprecedented the last decade of central bank policy has been.

00:03:03.640 It's crazy.

00:03:04.580 To take one headline fact,

00:03:07.140 the Fed printed three times as much money between 2008 and 2014

00:03:12.600 than it had printed it in the first 95 years of its existence.

00:03:16.960 Another way to put that is that after the great financial crisis,

00:03:19.740 the Fed printed about 350 years worth of money in four and a half years.

00:03:25.300 They totally changed the landscape and the dynamics of our global economy,

00:03:30.960 and I wanted to set out to explain to people in really clear terms

00:03:35.040 what the Fed had done and why it matters so much.

00:03:39.480 Now, the second part of your book title makes quite the assertion.

00:03:43.820 It's how the Federal Reserve broke the American economy.

00:03:49.460 So how did they break the American economy?

00:03:51.680 What happened since 2010?

00:03:53.880 Yeah, not nuanced at all, huh?

00:03:56.000 And, you know, as, okay, I mean, listen, I'm a business reporter

00:04:01.640 who came up through newspapers and wire services,

00:04:04.600 and fairness is key.

00:04:08.580 Fairness and, you know, objectivity is kind of an overused word,

00:04:12.260 but being fair and rational and being like an honest broker

00:04:15.400 on behalf of the reader is really important to me.

00:04:17.580 So to have the subtitle of the book say

00:04:19.860 How the Fed Broke the American Economy,

00:04:22.920 you know, I really feel the gravity of that.

00:04:25.700 But by the time it came time to publish this book,

00:04:29.700 I really felt like that was the only description I could give that was accurate.

00:04:33.280 And let me describe in three ways how I think the Fed

00:04:36.080 broke the American economy

00:04:37.940 and the fact that this is becoming more and more evident,

00:04:40.740 and I would argue undeniable today, just undeniable.

00:04:45.060 So here's how they did it.

00:04:47.360 First of all, you got to think about the way the Fed creates new money.

00:04:52.420 The Fed doesn't just create new dollars

00:04:54.400 by making them appear in the checking accounts of ordinary people.

00:04:58.260 The Fed creates new money on Wall Street

00:05:00.180 and inside the bank accounts of 24 Wall Street banks,

00:05:05.020 the biggest of the big.

00:05:05.940 And it does it in a way that pumps up the stock market.

00:05:09.500 We can walk through all this if you want.

00:05:12.140 Yes, please do.

00:05:13.200 Over the last decade.

00:05:14.220 I will, I will.

00:05:15.100 So the Fed, the first way it broke the economy

00:05:17.460 was by dramatically widening the gap

00:05:20.160 between the very richest of the rich and everybody else.

00:05:23.440 They widened income inequality dramatically

00:05:25.560 and they knew they were doing it.

00:05:27.720 The second thing the Fed did

00:05:29.340 by creating all this new money,

00:05:31.560 by pumping up the stock market,

00:05:33.440 they laid the groundwork for financial crashes.

00:05:37.340 They created really unstable financial asset bubbles.

00:05:43.140 You know, we saw the dot-com crash of asset bubbles in 99.

00:05:47.720 We saw the crash of an asset bubble in the housing market in 2008.

00:05:52.220 And today in 2022,

00:05:53.640 we're watching these asset bubbles across the spectrum teeter.

00:05:58.840 And the Fed created this financial instability

00:06:02.240 by creating these asset bubbles.

00:06:04.240 The third way the Fed broke the American economy

00:06:07.860 was by going down this path

00:06:11.200 of truly unprecedented experimentation and money printing

00:06:15.740 and essentially creating a quagmire.

00:06:20.320 What I mean to say is

00:06:21.500 when the Fed took on these experiments in the 2010s,

00:06:25.120 it committed the central bank to easy money policies.

00:06:28.300 It created this environment whereby

00:06:30.240 the Fed had to keep interest rates at zero.

00:06:33.040 It had to keep pumping all this cash into Wall Street

00:06:35.480 or else it would create a financial crash.

00:06:37.540 So the Fed has committed itself to,

00:06:40.640 it has trapped itself in this easy money world.

00:06:43.040 So all these things are very fundamental to the economy,

00:06:48.000 widening the gap between rich and the poor,

00:06:49.640 creating these asset bubbles,

00:06:51.360 you know,

00:06:51.720 trapping the central bank in this quagmire of easy money.

00:06:55.000 And all of these things are coming to the forefront today.

00:06:58.940 Now, what we're hearing a lot about these days

00:07:01.200 is quantitative easing or QE.

00:07:03.560 Can you explain to us exactly what that is

00:07:05.920 and how it ties into the current problems

00:07:09.240 we're seeing in the economy today?

00:07:11.620 Totally.

00:07:12.500 And maybe it would be helpful to kind of,

00:07:15.520 for me to slow down and start from the beginning.

00:07:18.780 I mean, this book really is a story about people.

00:07:22.680 It's about the people that run

00:07:23.880 the most important central bank in the world.

00:07:26.800 And the first third of the book

00:07:28.580 and kind of the last third focuses on this guy

00:07:31.740 who was a senior official at the Federal Reserve back in 2010.

00:07:35.280 And his name is Tom Honig.

00:07:38.220 And he's this low-key, pretty small-c conservative guy

00:07:41.660 who'd worked at the Fed his whole career.

00:07:43.400 But in 2010,

00:07:45.440 he kind of capped his career

00:07:47.900 by becoming the dissenter, so to speak,

00:07:50.540 by voting no again and again and again

00:07:52.580 against what the Fed was doing.

00:07:54.900 And the key thing that this guy was voting against

00:07:58.800 and that he was trying to stop

00:08:00.340 is this experiment called quantitative easing.

00:08:03.460 And the words quantitative easing

00:08:05.880 barely sound like English.

00:08:07.520 It's like, what are we talking about?

00:08:10.360 When I say the Fed printed

00:08:12.080 350 years worth of money in a few years,

00:08:14.920 I'm talking about quantitative easing.

00:08:17.280 So you've really got to go back to 2010.

00:08:21.020 This was after the financial crisis was over,

00:08:25.400 the U.S. economy, the Canadian economy,

00:08:28.160 most of the global economy was kind of

00:08:29.900 having this hangover

00:08:31.760 from the financial market crash

00:08:33.920 and growth was weak,

00:08:35.900 unemployment was high.

00:08:37.780 And that's kind of the moment

00:08:38.680 when governments can step in

00:08:40.400 and do something.

00:08:41.940 You know, our government in the U.S.

00:08:43.160 did not step in in 2010.

00:08:44.660 In fact, that was when

00:08:45.800 the right-wing Tea Party

00:08:47.820 took control of the House

00:08:49.300 and basically shut down

00:08:50.460 the wheels of government.

00:08:52.300 And so the Federal Reserve

00:08:53.600 decided that it would step in.

00:08:56.120 The Fed decided that

00:08:58.040 it was going to take on

00:08:59.320 a real, actually, unprecedented role

00:09:02.380 in trying to drive economic growth.

00:09:04.900 And it was going to do it

00:09:06.060 through this program

00:09:06.860 called quantitative easing.

00:09:08.240 And QE, as they call it,

00:09:10.700 is real simple in its mechanics.

00:09:13.940 What the Fed does

00:09:15.260 is it uses its trading capacity.

00:09:19.660 Okay, the Fed literally

00:09:20.700 has a trading desk on Wall Street

00:09:22.360 at the New York Fed

00:09:23.140 that I toured in 2020.

00:09:25.980 And at this trading desk,

00:09:27.620 these people who work for the Fed

00:09:28.800 can go out to a bank,

00:09:29.980 like to J.P. Morgan,

00:09:31.440 and they can say to that bank,

00:09:32.940 hey, we want to buy

00:09:33.940 $8 billion worth

00:09:35.840 of Treasury bills from you.

00:09:37.240 So J.P. Morgan says, okay.

00:09:39.180 They sell the Treasury bills

00:09:40.580 to the Fed,

00:09:41.160 and then the Fed turns around

00:09:42.180 to J.P. Morgan and says,

00:09:43.260 hey, look inside

00:09:44.680 your special reserve account.

00:09:46.140 Boom.

00:09:47.020 $8 billion new dollars

00:09:48.660 just got created

00:09:50.020 to fund that purchase.

00:09:52.060 So in other words,

00:09:52.600 QE is the act

00:09:53.760 of the Fed

00:09:54.520 creating brand new dollars

00:09:57.000 inside Wall Street

00:09:57.960 by purchasing these bonds,

00:10:00.100 like Treasury bonds,

00:10:01.380 and doing that

00:10:02.500 over and over

00:10:03.300 and over and over again

00:10:04.660 until the Fed

00:10:05.900 printed over $3 trillion new dollars.

00:10:09.100 Again,

00:10:10.320 more than triple

00:10:11.100 the amount of money

00:10:11.800 it had created

00:10:12.360 in a century.

00:10:13.720 That's how much money

00:10:14.720 it created

00:10:15.280 through quantitative easing.

00:10:16.860 And the whole goal here

00:10:18.040 is to try to,

00:10:19.720 it's like,

00:10:21.960 the way I would describe it,

00:10:23.320 and I'll walk through it again

00:10:24.260 pretty detailed in the book,

00:10:25.620 but it's like,

00:10:26.200 the Fed is creating

00:10:27.060 a tidal wave

00:10:27.940 of new dollars,

00:10:29.440 okay,

00:10:29.700 trillions of new dollars

00:10:31.180 on Wall Street

00:10:31.780 at the very moment

00:10:32.680 when the Fed

00:10:33.900 is not giving

00:10:35.980 any incentive

00:10:36.660 to save the money

00:10:37.620 because the Fed's

00:10:38.360 keeping interest rates

00:10:39.220 at zero.

00:10:39.660 And the whole goal

00:10:40.480 is push that money,

00:10:42.260 push this tidal wave

00:10:43.160 of new dollars

00:10:43.780 out into the economy

00:10:44.840 to try to fund

00:10:46.300 borrowing,

00:10:48.140 investment,

00:10:49.280 to try to pump up

00:10:50.180 asset prices,

00:10:51.440 to try to do

00:10:52.320 anything it can

00:10:53.240 to juice economic growth.

00:10:56.980 And what's key to that,

00:10:58.160 I think,

00:10:58.580 and you detail this

00:10:59.900 in your book,

00:11:00.540 is this tidal wave

00:11:01.520 of new dollars

00:11:02.200 isn't equally distributed

00:11:03.680 amongst the economy

00:11:04.880 and amongst Americans

00:11:06.340 or Canadians

00:11:07.720 when the Canadian

00:11:08.740 central bank

00:11:09.920 engages in QE.

00:11:12.360 Asset owners

00:11:13.180 disproportionately

00:11:13.900 see the benefits

00:11:15.060 of that tidal wave

00:11:16.020 of money.

00:11:16.880 Is that correct?

00:11:18.540 That's totally correct

00:11:19.940 and thank you so much

00:11:21.160 for making that distinction.

00:11:23.120 Let's compare

00:11:24.260 quantitative easing

00:11:26.000 to another kind

00:11:27.400 of economic stimulation.

00:11:28.740 Like,

00:11:28.880 I'm sure you've heard

00:11:29.500 of the economist

00:11:30.240 Keynes.

00:11:31.760 The idea behind

00:11:32.620 Keynesianism,

00:11:33.700 if you will,

00:11:34.880 is that you put

00:11:35.620 dollars out

00:11:36.940 into the economy

00:11:37.600 to stimulate growth.

00:11:38.920 So one form

00:11:39.440 of Keynesianism

00:11:40.380 was like the New Deal

00:11:42.220 in the 1930s.

00:11:43.400 It literally

00:11:44.880 paid people

00:11:46.040 to dig ditches

00:11:47.440 and build dams.

00:11:49.140 That's not

00:11:49.680 what quantitative easing

00:11:50.620 does.

00:11:50.900 When we talk about

00:11:51.740 this tidal wave

00:11:52.580 of new dollars,

00:11:53.640 again,

00:11:54.080 we've got to remember

00:11:54.960 this is being created

00:11:56.160 on Wall Street

00:11:57.600 inside the big banks.

00:11:59.300 It's not like

00:11:59.820 checks being mailed

00:12:00.740 out to,

00:12:02.020 you know,

00:12:03.080 folks who work

00:12:03.800 at like a tar sands

00:12:05.000 oil drilling place

00:12:06.940 or,

00:12:07.620 you know,

00:12:07.920 somebody working

00:12:08.520 at a store

00:12:08.980 who's going to

00:12:09.440 turn around

00:12:09.820 and spend that money

00:12:10.560 in the real economy.

00:12:11.480 These dollars

00:12:12.820 are being created

00:12:13.340 on Wall Street

00:12:14.260 and this money

00:12:17.400 chases assets,

00:12:19.400 if you will.

00:12:20.080 You know,

00:12:20.340 the banks use it

00:12:21.240 to purchase

00:12:21.940 corporate junk debt

00:12:23.220 or to buy tech stocks

00:12:24.700 and that's why

00:12:26.340 this cash

00:12:26.920 drives up asset prices.

00:12:28.540 And I've got to

00:12:30.840 really emphasize here.

00:12:33.060 In 2010,

00:12:34.420 2011,

00:12:35.240 2012,

00:12:36.040 while the Fed

00:12:36.480 was doing this,

00:12:37.840 they knew

00:12:38.580 that the primary

00:12:40.240 mechanism

00:12:40.860 through which

00:12:42.180 this was going to work

00:12:43.020 was stoking up

00:12:44.440 asset prices

00:12:45.400 by stoking

00:12:46.260 the stock market,

00:12:47.240 by raising

00:12:48.080 stock prices.

00:12:49.940 And what the Fed

00:12:50.800 hoped

00:12:51.320 is that,

00:12:52.580 you know,

00:12:52.880 if we juice

00:12:53.520 Wall Street

00:12:54.140 and we stoke

00:12:55.900 the asset markets,

00:12:57.100 it'll create

00:12:57.860 the so-called

00:12:58.360 wealth effect

00:12:59.060 whereby everybody

00:12:59.800 sees the stock market

00:13:01.300 is rising

00:13:01.820 and maybe their

00:13:02.560 401k value

00:13:03.700 is rising

00:13:04.180 so they get

00:13:04.900 a little swagger

00:13:05.520 in their step

00:13:06.120 and feel more

00:13:07.140 comfortable to go out

00:13:07.860 and see a movie

00:13:08.480 or buy a house.

00:13:10.360 That was the way

00:13:11.720 it was going to work

00:13:12.420 was that the Fed

00:13:12.980 was going to pump up

00:13:13.820 asset prices,

00:13:14.880 create the wealth effect

00:13:16.020 and hopefully stimulate growth.

00:13:18.000 But it's sort of,

00:13:19.760 I call it like

00:13:20.700 hyper trickle-down

00:13:21.920 economics

00:13:22.640 in the sense that

00:13:23.620 you're

00:13:25.500 dramatically

00:13:26.880 increasing the value

00:13:28.460 of assets

00:13:29.120 that are owned

00:13:29.920 by a tiny percent

00:13:31.340 of the population.

00:13:32.480 Like here in the U.S.,

00:13:33.580 the richest 1%

00:13:35.140 of all people

00:13:35.700 own like 40%

00:13:36.840 of the assets

00:13:37.560 whereas the

00:13:38.720 bottom half

00:13:39.780 of the country

00:13:40.340 in terms of wealth

00:13:41.060 owns only like

00:13:42.100 7% of the assets.

00:13:43.740 So,

00:13:44.300 this is

00:13:45.080 dramatically

00:13:46.020 enriching the rich

00:13:47.600 and driving the gap

00:13:48.540 between the rich

00:13:49.080 and everybody else

00:13:49.860 for very,

00:13:51.740 very meager gains

00:13:53.020 on the other side.

00:13:54.220 Like,

00:13:54.760 the unemployment benefits

00:13:56.140 of, you know,

00:13:56.580 real jobs getting created

00:13:57.840 were like tiny,

00:14:01.140 less than a percent

00:14:02.020 for these huge rounds

00:14:03.940 of QE

00:14:04.480 whereas the asset value

00:14:06.680 increase was enormous.

00:14:08.600 So,

00:14:09.280 it creates a wealth gap

00:14:10.520 between the richest

00:14:11.480 and the poorest

00:14:12.360 in society

00:14:13.040 but I imagine

00:14:14.020 it would also create

00:14:14.900 a generational wealth gap

00:14:16.280 because of course

00:14:17.180 older people

00:14:17.860 are more likely

00:14:18.440 to own homes

00:14:19.380 and other assets

00:14:20.360 and now a lot of

00:14:22.020 younger Americans

00:14:22.980 and Canadians

00:14:23.580 are having trouble

00:14:24.380 buying homes

00:14:25.320 and seeing the same

00:14:26.900 sort of wealth

00:14:27.920 accumulation

00:14:28.560 previous generations had.

00:14:30.300 Would you say

00:14:30.760 that's also

00:14:31.460 an effect of QE?

00:14:33.840 I absolutely would

00:14:35.820 and

00:14:36.360 again,

00:14:37.720 this is why

00:14:38.340 I wrote the book.

00:14:39.260 I think it's so fundamental

00:14:40.780 for everybody

00:14:42.260 to understand

00:14:43.380 what the central banks

00:14:45.380 have been doing

00:14:46.260 over the last decade

00:14:47.680 and how it affects us.

00:14:50.000 Let's look at the issue

00:14:51.200 of housing

00:14:51.820 which you just brought up

00:14:52.980 which is a

00:14:53.740 fundamentally important issue

00:14:56.120 when you look at

00:14:56.860 the generational wealth gap.

00:14:59.580 You know,

00:15:00.720 and please forgive me

00:15:01.540 I'm not as familiar

00:15:02.380 with Canadian data

00:15:03.500 but like here in the U.S.

00:15:05.820 homeownership

00:15:06.580 is falling

00:15:07.900 for younger Americans

00:15:09.700 and in fact

00:15:10.360 it's been pointed to

00:15:11.320 as like a key

00:15:12.560 obstacle

00:15:13.880 toward what we call

00:15:15.000 like family formation

00:15:16.460 like the ability

00:15:17.240 to like

00:15:17.600 move out of your parents' house

00:15:19.320 get married

00:15:20.520 form your own house

00:15:22.200 maybe have a family.

00:15:24.820 The unaffordability

00:15:26.420 of housing

00:15:27.100 is a major obstacle

00:15:28.760 to doing that

00:15:30.020 and

00:15:30.640 quantitative easing

00:15:32.920 and the central bank's

00:15:34.460 actions

00:15:35.320 directly feed into that

00:15:37.860 by driving up

00:15:39.180 housing prices.

00:15:41.200 And

00:15:41.380 you know

00:15:43.520 I just read

00:15:44.480 story after story

00:15:45.760 about these

00:15:46.540 property markets

00:15:47.680 in the U.S.

00:15:48.360 where prices are rising

00:15:49.700 18%

00:15:52.300 double digit

00:15:53.580 increases

00:15:54.260 people can't afford

00:15:55.240 a house.

00:15:56.180 The Fed is driving that

00:15:57.760 because again

00:15:58.920 to get back

00:15:59.620 to the core

00:16:00.240 the way

00:16:01.600 that these

00:16:02.240 money printing

00:16:03.380 programs

00:16:04.000 of the central banks

00:16:04.800 work

00:16:05.300 is to drive up

00:16:06.160 asset prices

00:16:06.940 including the prices

00:16:07.840 of housing

00:16:08.560 stocks

00:16:09.200 etc.

00:16:10.540 And that creates

00:16:11.820 real hardship

00:16:12.600 not just for the young

00:16:15.200 but basically

00:16:15.780 anybody who tries

00:16:16.700 to make a living

00:16:17.340 by earning a paycheck.

00:16:18.920 I think it's been

00:16:19.400 really interesting

00:16:20.060 to watch central banks

00:16:21.540 both in America

00:16:22.900 and Canada

00:16:23.740 deal with this wave

00:16:25.060 of criticism

00:16:25.700 and public attention

00:16:26.680 they've received

00:16:27.940 over the last

00:16:28.620 months

00:16:29.240 and a year or two

00:16:30.980 and especially

00:16:32.180 in Canada

00:16:32.860 the Bank of Canada

00:16:34.420 has been

00:16:35.160 trying to fight

00:16:36.140 allegations

00:16:36.820 that it printed

00:16:37.600 money

00:16:38.020 in that

00:16:39.000 it went on

00:16:40.180 Twitter

00:16:40.500 and actually

00:16:41.340 tweeted

00:16:41.780 that

00:16:42.540 they did not

00:16:43.940 print any

00:16:44.800 cash

00:16:45.500 they pay

00:16:46.360 with settlement

00:16:46.960 balances

00:16:47.600 not cash

00:16:48.880 and they're

00:16:49.500 trying to thread

00:16:50.160 this very fine

00:16:51.420 line there

00:16:52.260 as if people

00:16:53.360 are confused

00:16:54.180 that they're

00:16:54.640 printing actual

00:16:55.500 bills

00:16:55.960 rather than

00:16:56.840 injecting money

00:16:57.860 that yes

00:16:58.320 can be lent

00:16:58.880 and spent

00:16:59.380 in the economy

00:17:00.160 like is there

00:17:01.260 any real

00:17:01.800 distinction

00:17:02.240 between printing

00:17:03.360 cash bills

00:17:04.200 or paying

00:17:04.940 with settlement

00:17:05.420 balances

00:17:05.900 in terms

00:17:06.420 of how

00:17:06.720 it affects

00:17:07.640 assets

00:17:08.300 and the

00:17:09.720 eventual

00:17:10.260 economic

00:17:10.700 outcomes

00:17:11.180 no

00:17:12.600 and

00:17:13.240 you know

00:17:14.400 I must

00:17:15.140 point out

00:17:15.580 there is a

00:17:16.060 long

00:17:16.380 proud

00:17:16.880 tradition

00:17:17.440 of being

00:17:17.880 fundamentally

00:17:18.520 dishonest

00:17:19.320 on this

00:17:19.700 point

00:17:20.040 and

00:17:20.420 the

00:17:21.140 pioneer

00:17:21.660 of that

00:17:22.300 was the

00:17:23.180 famous

00:17:23.620 US central

00:17:24.780 bank chairman

00:17:25.440 Ben Bernanke

00:17:26.300 who was

00:17:27.960 truly the

00:17:28.720 main author

00:17:29.800 of quantitative

00:17:30.600 easing

00:17:31.200 and who

00:17:32.260 pushed this

00:17:32.960 experiment

00:17:33.480 in the

00:17:33.960 United States

00:17:34.680 starting in

00:17:35.160 2010

00:17:35.760 and Bernanke

00:17:36.520 went on

00:17:37.000 TV

00:17:37.380 on a

00:17:38.700 show called

00:17:39.940 60 Minutes

00:17:40.820 and categorically

00:17:42.300 stated that the

00:17:43.100 Fed was not

00:17:43.840 printing money

00:17:44.820 totally

00:17:45.820 dishonest

00:17:46.680 of course

00:17:48.280 if you break

00:17:49.100 it down

00:17:49.760 the United

00:17:51.020 States Treasury

00:17:52.100 prints

00:17:52.820 dollar bills

00:17:53.820 and when

00:17:55.220 the Fed

00:17:55.640 creates new

00:17:56.500 dollars

00:17:57.020 inside the

00:17:57.780 reserve accounts

00:17:58.500 on Wall

00:17:59.120 Street

00:17:59.340 as it was

00:17:59.880 doing in

00:18:00.320 2010

00:18:00.700 at an

00:18:01.320 unprecedented

00:18:01.860 level

00:18:02.900 it's

00:18:04.120 creating them

00:18:04.840 on a

00:18:05.140 digital

00:18:05.520 ledger

00:18:06.140 it's also

00:18:06.660 not digital

00:18:07.280 currency

00:18:07.760 but it's

00:18:08.200 on a

00:18:08.500 digital

00:18:08.840 ledger

00:18:09.440 and so

00:18:10.880 fine

00:18:11.300 they didn't

00:18:11.760 print a

00:18:12.540 paper bill

00:18:13.400 but when

00:18:14.500 you talk

00:18:15.020 to people

00:18:15.660 about creating

00:18:17.860 new dollars

00:18:18.640 I stubbornly

00:18:20.600 insist on

00:18:21.980 calling it

00:18:22.500 printing money

00:18:23.240 because that's

00:18:24.320 how we all

00:18:24.820 understand the

00:18:25.420 creation of

00:18:26.080 new money

00:18:26.540 and

00:18:27.600 it's an

00:18:29.620 honest way

00:18:30.200 to describe

00:18:30.860 it that

00:18:31.400 people can

00:18:31.940 understand

00:18:32.600 and the

00:18:33.240 misleading

00:18:34.720 and just

00:18:36.240 fundamentally

00:18:36.900 dishonest

00:18:37.800 rhetoric

00:18:39.600 coming from

00:18:41.180 the senior

00:18:41.640 leadership of

00:18:42.380 central banks

00:18:43.060 continues

00:18:43.780 to this

00:18:45.280 day

00:18:45.680 in December

00:18:47.680 of

00:18:48.660 2020

00:18:50.100 Fed

00:18:52.340 Chairman

00:18:52.680 Jay Powell

00:18:53.260 got up

00:18:53.740 during a

00:18:54.100 press conference

00:18:54.720 and said

00:18:55.380 he did

00:18:56.020 not see

00:18:56.480 any

00:18:56.800 evidence

00:18:57.440 of

00:18:57.860 asset

00:18:58.340 inflation

00:18:58.860 going

00:18:59.200 on

00:18:59.540 which

00:19:00.120 made

00:19:01.020 bond

00:19:01.980 traders

00:19:02.560 and stock

00:19:03.200 traders

00:19:03.480 just fall

00:19:04.000 out of

00:19:04.280 their

00:19:04.440 chairs

00:19:04.860 I mean

00:19:05.240 to hear

00:19:05.860 somebody

00:19:06.220 say

00:19:06.560 something

00:19:06.900 that is

00:19:07.280 so

00:19:07.540 fundamentally

00:19:08.140 at odds

00:19:08.560 with reality

00:19:09.240 can only

00:19:09.840 be called

00:19:10.280 dishonest

00:19:10.840 I mean

00:19:11.140 Jay Powell

00:19:12.220 said that

00:19:12.660 at a

00:19:12.900 moment

00:19:13.120 when the

00:19:13.560 Fed

00:19:13.820 had like

00:19:14.260 single-handedly

00:19:15.780 juiced

00:19:17.900 stock

00:19:18.380 prices

00:19:19.060 you know

00:19:20.560 almost

00:19:22.520 doubling

00:19:22.960 them

00:19:23.160 I mean

00:19:23.460 you know

00:19:24.700 stock market

00:19:25.540 crashed

00:19:25.960 during

00:19:26.240 COVID

00:19:26.620 but the

00:19:27.880 stock market

00:19:28.400 had entirely

00:19:29.360 recovered

00:19:30.020 within a

00:19:30.600 matter of

00:19:31.020 months

00:19:31.280 and then

00:19:31.600 started

00:19:31.900 hitting

00:19:32.160 new record

00:19:32.800 prices

00:19:33.300 afterwards

00:19:33.740 when Powell

00:19:34.400 made those

00:19:34.820 comments

00:19:35.220 and it

00:19:36.100 was

00:19:36.300 obviously

00:19:36.880 driven

00:19:37.220 entirely

00:19:37.700 by what

00:19:38.160 the

00:19:38.320 Fed

00:19:38.480 was

00:19:38.660 doing

00:19:38.960 so

00:19:40.180 it's

00:19:41.960 misleading

00:19:42.400 it's

00:19:42.800 just

00:19:42.960 it's

00:19:43.360 so

00:19:43.640 misleading

00:19:44.220 like

00:19:44.520 now

00:19:46.900 the

00:19:48.980 the

00:19:49.260 Fed

00:19:49.860 particularly

00:19:50.740 works

00:19:52.780 extremely

00:19:53.500 hard

00:19:54.120 to try

00:19:55.160 to avoid

00:19:55.740 taking

00:19:56.080 responsibility

00:19:56.780 for its

00:19:57.460 own

00:19:57.640 actions

00:19:58.220 it

00:19:59.640 has

00:20:00.060 barely

00:20:00.620 acknowledged

00:20:02.220 the

00:20:03.860 extent

00:20:04.260 of what

00:20:04.620 it did

00:20:05.160 in terms

00:20:05.620 of

00:20:05.780 printing

00:20:06.140 money

00:20:06.600 in

00:20:06.800 2010s

00:20:07.920 unless

00:20:08.260 it's

00:20:08.540 trying

00:20:08.720 to claim

00:20:09.060 credit

00:20:09.340 for

00:20:09.520 economic

00:20:09.940 growth

00:20:10.360 and

00:20:11.200 again

00:20:11.600 this

00:20:12.080 is

00:20:12.220 in

00:20:12.360 the

00:20:12.460 book

00:20:12.620 you see

00:20:12.960 it

00:20:13.080 in

00:20:13.160 the

00:20:13.280 public

00:20:13.540 speeches

00:20:13.960 you see

00:20:14.380 it

00:20:14.500 in

00:20:14.600 the

00:20:14.720 internal

00:20:15.060 speeches

00:20:15.520 it's

00:20:16.200 all

00:20:16.420 on

00:20:16.580 the

00:20:16.700 record

00:20:16.960 there's

00:20:17.200 no

00:20:17.420 like

00:20:17.860 speculation

00:20:19.180 about

00:20:19.660 this

00:20:19.920 that

00:20:20.160 when

00:20:21.260 it's

00:20:21.480 convenient

00:20:22.000 leaders

00:20:23.000 like

00:20:23.360 Jay Powell

00:20:23.840 or Ben

00:20:24.180 Bernanke

00:20:24.600 will say

00:20:25.140 that

00:20:25.340 the

00:20:25.520 Fed

00:20:25.900 through

00:20:26.560 their

00:20:26.760 extraordinary

00:20:27.180 programs

00:20:27.800 have helped

00:20:28.260 stimulate

00:20:29.020 economic

00:20:29.500 growth

00:20:29.900 but when

00:20:30.840 they face

00:20:31.660 criticism

00:20:32.320 it's

00:20:33.940 astounding

00:20:34.480 how they

00:20:34.800 pivot

00:20:35.100 and say

00:20:35.680 well

00:20:36.020 QE

00:20:37.140 didn't

00:20:37.440 really

00:20:37.660 even

00:20:37.900 do

00:20:38.060 that

00:20:38.240 much

00:20:38.500 in

00:20:38.620 the

00:20:38.740 first

00:20:38.980 place

00:20:39.640 it's

00:20:40.460 this

00:20:40.580 complicated

00:20:41.100 maneuver

00:20:41.520 that

00:20:41.800 just

00:20:42.000 swaps

00:20:42.380 one

00:20:42.840 asset

00:20:43.760 liability

00:20:44.940 for

00:20:45.240 another

00:20:45.640 and

00:20:46.640 it's

00:20:48.800 a

00:20:48.960 convenient

00:20:49.620 twisting

00:20:50.860 of the

00:20:51.260 truth

00:20:51.580 we'll

00:20:52.320 be back

00:20:52.680 with more

00:20:53.020 full

00:20:53.240 comment

00:20:53.580 in

00:20:53.800 just

00:20:54.020 a

00:20:54.160 moment

00:20:54.420 did

00:20:58.220 you lock

00:20:58.520 the

00:20:58.640 front

00:20:58.800 door

00:20:59.020 check

00:20:59.400 close

00:21:00.000 the

00:21:00.180 garage

00:21:00.420 door

00:21:00.700 yep

00:21:01.180 installed

00:21:01.640 window

00:21:01.900 sensors

00:21:02.280 smoke

00:21:02.620 sensors

00:21:02.960 and HD

00:21:03.580 cameras

00:21:03.940 with night

00:21:04.240 vision

00:21:04.480 no

00:21:05.100 and you

00:21:06.020 set up

00:21:06.260 credit card

00:21:06.600 transaction

00:21:07.000 alerts

00:21:07.300 a secure

00:21:07.720 VPN

00:21:08.080 for a

00:21:08.400 private

00:21:08.620 connection

00:21:08.960 and

00:21:09.260 continuous

00:21:09.720 monitoring

00:21:10.120 for our

00:21:10.420 personal

00:21:10.640 info

00:21:10.880 on the

00:21:11.080 dark

00:21:11.240 web

00:21:11.460 uh

00:21:12.640 I'm

00:21:13.380 looking

00:21:13.700 into

00:21:14.060 it

00:21:14.340 stress

00:21:14.980 less

00:21:15.320 about

00:21:15.580 security

00:21:16.120 choose

00:21:16.640 security

00:21:17.060 solutions

00:21:17.580 from

00:21:17.780 tell us

00:21:18.180 for peace

00:21:18.600 of mind

00:21:18.920 at home

00:21:19.360 and

00:21:19.840 online

00:21:20.320 visit

00:21:20.860 tell us

00:21:21.240 dot com

00:21:21.720 slash

00:21:22.040 total

00:21:22.320 security

00:21:22.800 to learn

00:21:23.280 more

00:21:23.620 conditions

00:21:24.420 when I

00:21:25.440 found out

00:21:25.860 my friend

00:21:26.340 got a

00:21:26.680 great deal

00:21:27.280 on a

00:21:27.640 wool coat

00:21:28.040 from

00:21:28.260 winners

00:21:28.580 I

00:21:29.160 started

00:21:29.640 wondering

00:21:30.080 is

00:21:30.820 every

00:21:31.380 fabulous

00:21:31.880 item

00:21:32.160 I see

00:21:32.580 from

00:21:32.840 winners

00:21:33.180 like

00:21:33.900 that

00:21:34.180 woman

00:21:34.460 over

00:21:34.660 there

00:21:34.940 with

00:21:35.120 the

00:21:35.260 designer

00:21:35.560 jeans

00:21:36.100 are

00:21:36.520 those

00:21:36.980 from

00:21:37.220 winners

00:21:37.580 or

00:21:38.360 those

00:21:38.860 beautiful

00:21:39.200 gold

00:21:39.500 earrings

00:21:40.160 did

00:21:40.500 she

00:21:40.640 pay

00:21:40.800 full

00:21:40.960 price

00:21:41.420 or

00:21:41.840 that

00:21:41.980 leather

00:21:42.180 tote

00:21:42.560 or

00:21:42.840 that

00:21:42.980 cashmere

00:21:43.340 sweater

00:21:43.660 or

00:21:44.060 those

00:21:44.260 knee-high

00:21:44.580 boots

00:21:45.140 that

00:21:45.560 dress

00:21:46.060 that

00:21:46.340 jacket

00:21:46.740 those

00:21:47.040 shoes

00:21:47.700 is

00:21:48.080 anyone

00:21:48.680 paying

00:21:49.080 full

00:21:49.300 price

00:21:49.620 for

00:21:49.860 anything

00:21:50.400 stop

00:21:51.320 wondering

00:21:51.800 start

00:21:54.420 for

00:21:54.660 less

00:21:55.040 now

00:21:56.120 that

00:21:56.520 more

00:21:57.200 people

00:21:57.580 are

00:21:58.360 realizing

00:21:59.280 the

00:21:59.820 extent

00:22:00.160 of the

00:22:00.480 twisting

00:22:00.800 of the

00:22:01.300 truth

00:22:01.640 and how

00:22:02.120 these

00:22:02.360 decisions

00:22:02.820 impact

00:22:03.320 their

00:22:03.520 daily

00:22:03.820 lives

00:22:04.280 I

00:22:04.960 think

00:22:05.140 there

00:22:05.280 are

00:22:05.420 social

00:22:05.740 consequences

00:22:06.400 to that

00:22:07.080 we've

00:22:07.420 seen

00:22:07.880 a loss

00:22:08.700 of faith

00:22:09.060 in

00:22:09.200 institutions

00:22:09.800 people

00:22:10.500 feeling

00:22:10.860 like

00:22:11.180 the

00:22:11.360 game

00:22:11.620 is

00:22:11.780 rigged

00:22:12.100 against

00:22:12.460 them

00:22:12.860 how

00:22:14.240 does

00:22:15.700 some

00:22:15.900 of

00:22:16.020 this

00:22:16.160 social

00:22:16.520 anger

00:22:16.960 we're

00:22:17.360 seeing

00:22:17.800 and

00:22:18.500 even

00:22:18.840 economic

00:22:20.000 conspiracy

00:22:20.780 theories

00:22:21.340 about

00:22:22.200 elites

00:22:23.100 plotting

00:22:23.520 against

00:22:23.900 the

00:22:24.080 average

00:22:24.360 person

00:22:24.840 or

00:22:25.020 whether

00:22:25.220 it's

00:22:25.420 the

00:22:25.560 world

00:22:25.760 economic

00:22:26.340 forum

00:22:26.760 it

00:22:26.980 seems

00:22:27.240 like

00:22:27.420 a lot

00:22:27.680 of

00:22:27.780 people

00:22:28.040 have

00:22:28.280 realized

00:22:28.780 they're

00:22:29.000 not

00:22:29.180 doing

00:22:29.420 well

00:22:29.800 they

00:22:30.260 haven't

00:22:30.500 really

00:22:30.680 had

00:22:30.920 a

00:22:31.080 say

00:22:31.300 in

00:22:31.480 the

00:22:31.580 decisions

00:22:31.960 that

00:22:32.300 have

00:22:32.540 led

00:22:32.920 to

00:22:33.040 their

00:22:33.200 circumstances

00:22:33.740 and

00:22:34.100 they're

00:22:34.300 angry

00:22:34.680 about

00:22:35.020 it

00:22:35.240 but

00:22:35.440 they

00:22:35.580 don't

00:22:35.760 necessarily

00:22:36.320 know

00:22:36.680 who

00:22:36.860 to

00:22:37.020 blame

00:22:37.360 are

00:22:38.180 you

00:22:38.360 noticing

00:22:38.660 that

00:22:38.880 as

00:22:39.020 well

00:22:39.220 oh

00:22:40.780 yeah

00:22:41.180 I

00:22:41.520 mean

00:22:41.840 I

00:22:42.640 mean

00:22:42.800 amen

00:22:43.140 to

00:22:43.400 everything

00:22:43.680 you

00:22:43.880 just

00:22:44.100 said

00:22:44.600 and

00:22:44.880 let

00:22:45.260 me

00:22:45.340 think

00:22:45.680 about

00:22:45.920 this

00:22:54.360 explore

00:22:56.220 you know

00:22:56.780 my

00:22:57.000 journalism

00:22:57.380 I

00:22:57.640 tend

00:22:58.120 to

00:22:58.280 focus

00:22:58.540 on

00:22:58.740 big

00:22:59.000 powerful

00:22:59.340 economic

00:22:59.860 institutions

00:23:00.560 and

00:23:00.800 this

00:23:00.980 is

00:23:01.120 the

00:23:01.340 central

00:23:01.640 question

00:23:01.980 at

00:23:02.120 the

00:23:02.200 heart

00:23:02.360 of

00:23:02.480 it

00:23:02.580 is

00:23:02.740 this

00:23:03.420 feeling

00:23:03.760 that

00:23:03.940 the

00:23:04.080 economy

00:23:04.400 is

00:23:04.600 rigged

00:23:05.020 when

00:23:05.800 you

00:23:05.920 look

00:23:06.140 at

00:23:06.240 what

00:23:06.360 the

00:23:06.480 Fed

00:23:06.640 has

00:23:06.780 done

00:23:07.080 and

00:23:07.420 what

00:23:07.540 the

00:23:07.680 central

00:23:07.920 banks

00:23:08.200 have

00:23:08.360 done

00:23:08.560 over

00:23:08.720 the

00:23:08.860 last

00:23:09.100 decade

00:23:09.540 let's

00:23:10.560 just

00:23:10.740 keep

00:23:11.040 it

00:23:11.180 at

00:23:11.360 some

00:23:11.520 very

00:23:11.820 central

00:23:12.300 dynamics

00:23:12.960 between

00:23:13.820 2010

00:23:14.380 and

00:23:14.580 2020

00:23:15.060 real

00:23:16.860 wages

00:23:17.500 were

00:23:19.240 flat

00:23:19.820 or

00:23:20.140 falling

00:23:20.600 what

00:23:21.180 people

00:23:24.360 entire

00:23:24.600 decade

00:23:25.040 and

00:23:25.320 to

00:23:25.460 be

00:23:25.580 honest

00:23:25.920 decades

00:23:27.580 before

00:23:27.960 but

00:23:28.180 let's

00:23:28.340 just

00:23:28.460 look

00:23:28.640 at

00:23:28.740 this

00:23:28.900 last

00:23:29.160 decade

00:23:29.480 wages

00:23:29.820 are

00:23:30.080 flat

00:23:30.420 growth

00:23:31.180 is

00:23:31.420 weak

00:23:31.900 but

00:23:33.100 the

00:23:33.300 stock

00:23:33.640 market

00:23:34.020 doubles

00:23:34.420 the

00:23:35.300 corporate

00:23:35.680 debt

00:23:36.000 market

00:23:36.400 doubles

00:23:36.900 the

00:23:37.700 wealth

00:23:38.220 of

00:23:38.900 the

00:23:39.340 top

00:23:39.820 1%

00:23:40.460 which

00:23:40.700 has

00:23:40.800 now

00:23:40.940 become

00:23:41.240 kind

00:23:41.480 of

00:23:41.560 a

00:23:41.700 cliche

00:23:41.940 term

00:23:42.400 sky

00:23:43.220 rockets

00:23:43.780 people

00:23:46.000 notice

00:23:46.540 that

00:23:46.960 people

00:23:47.520 notice

00:23:48.080 that

00:23:48.380 of

00:23:48.640 course

00:23:48.940 there

00:23:49.140 is

00:23:49.280 this

00:23:49.480 deep

00:23:49.820 seated

00:23:50.220 growing

00:23:51.160 sense

00:23:51.800 that

00:23:53.160 the

00:23:53.400 economy

00:23:53.800 is

00:23:54.040 rigged

00:23:54.400 and

00:23:54.680 that

00:23:55.080 sense

00:23:55.400 is

00:23:55.600 accurate

00:23:56.200 let

00:23:56.420 me

00:23:56.500 describe

00:23:56.920 it

00:23:57.080 a

00:23:57.220 different

00:23:57.460 way

00:23:57.800 hundreds

00:23:59.140 of

00:23:59.500 millions

00:23:59.820 of

00:24:00.060 people

00:24:00.300 in

00:24:00.460 the

00:24:00.580 United

00:24:00.840 States

00:24:01.300 basically

00:24:01.960 ended

00:24:02.920 the

00:24:03.180 decade

00:24:03.660 at

00:24:04.420 square

00:24:04.860 one

00:24:05.340 economically

00:24:06.120 where

00:24:06.380 they'd

00:24:06.640 started

00:24:06.960 the

00:24:07.180 decade

00:24:07.480 they'd

00:24:07.780 treaded

00:24:08.060 water

00:24:08.620 for

00:24:08.880 10

00:24:09.280 years

00:24:09.860 while

00:24:11.100 the

00:24:11.520 wealth

00:24:12.060 is

00:24:12.240 captured

00:24:12.540 by a

00:24:12.840 very

00:24:12.980 tiny

00:24:13.260 group

00:24:13.500 of

00:24:13.680 people

00:24:13.880 at

00:24:14.100 the

00:24:14.220 top

00:24:14.540 so

00:24:15.120 people

00:24:15.420 feel

00:24:15.860 like

00:24:16.240 they're

00:24:16.960 not

00:24:17.160 making

00:24:17.440 forward

00:24:17.840 progress

00:24:18.600 and

00:24:19.640 that

00:24:20.060 kind

00:24:20.460 of

00:24:20.720 frustration

00:24:21.660 and

00:24:22.060 anger

00:24:22.640 it

00:24:23.660 just

00:24:24.060 manifests

00:24:24.940 in

00:24:25.300 different

00:24:25.640 ways

00:24:26.080 like

00:24:26.380 I

00:24:26.500 call

00:24:26.780 it

00:24:26.920 like

00:24:27.100 the

00:24:27.300 retail

00:24:27.700 level

00:24:28.180 of

00:24:28.400 politics

00:24:29.080 you

00:24:30.620 see

00:24:31.060 the

00:24:32.120 left

00:24:32.680 through

00:24:33.420 Occupy

00:24:33.960 Wall

00:24:34.220 Street

00:24:34.520 attacking

00:24:35.560 the

00:24:36.580 machinations

00:24:37.480 of

00:24:37.680 the

00:24:37.800 big

00:24:37.980 banks

00:24:38.340 and

00:24:38.520 the

00:24:38.640 accumulation

00:24:39.100 of

00:24:39.340 wealth

00:24:39.520 at

00:24:39.700 the

00:24:39.840 top

00:24:40.180 you

00:24:41.000 see

00:24:41.160 the

00:24:41.340 far

00:24:41.620 right

00:24:41.960 through

00:24:42.220 the

00:24:42.440 Tea

00:24:42.640 Party

00:24:42.960 attacking

00:24:43.620 the

00:24:43.960 sort

00:24:44.140 of

00:24:44.260 convergence

00:24:44.760 between

00:24:45.180 big

00:24:45.500 government

00:24:45.840 and

00:24:46.060 big

00:24:46.260 business

00:24:46.780 other

00:24:48.200 issues

00:24:48.920 but

00:24:50.040 this

00:24:50.300 deep

00:24:51.000 sense

00:24:51.480 of

00:24:52.000 frustration

00:24:52.800 and

00:24:53.320 the

00:24:53.500 sense

00:24:53.760 that

00:24:54.080 the

00:24:54.300 system

00:24:54.600 doesn't

00:24:54.920 work

00:24:55.320 is

00:24:57.260 omnipresent

00:24:58.780 and

00:24:59.660 I

00:25:00.120 think

00:25:00.420 that

00:25:00.580 the

00:25:00.740 policies

00:25:01.140 like

00:25:01.340 the

00:25:01.480 ones

00:25:01.780 I'm

00:25:02.040 describing

00:25:02.440 at

00:25:02.660 the

00:25:02.800 Fed

00:25:03.140 feed

00:25:04.340 into

00:25:04.820 it

00:25:05.000 directly

00:25:05.520 and

00:25:06.160 not

00:25:07.520 to

00:25:07.680 keep

00:25:07.820 going

00:25:08.060 on

00:25:08.220 but

00:25:08.340 the

00:25:08.500 other

00:25:08.700 thing

00:25:08.920 you're

00:25:09.080 bringing

00:25:09.280 up

00:25:09.620 is

00:25:10.600 the

00:25:10.880 rise

00:25:11.260 of

00:25:11.440 conspiracy

00:25:11.900 theory

00:25:12.480 thinking

00:25:12.960 which

00:25:14.020 is

00:25:14.380 hugely

00:25:15.300 dangerous

00:25:15.940 and

00:25:16.440 damaging

00:25:16.920 and

00:25:17.460 unhealthy

00:25:18.060 and

00:25:18.680 terrible

00:25:19.200 particularly

00:25:19.800 for a

00:25:20.420 democracy

00:25:21.020 to

00:25:22.400 have

00:25:22.880 such

00:25:23.340 a

00:25:23.620 widespread

00:25:25.200 adherence

00:25:26.500 to

00:25:26.680 these

00:25:26.880 conspiratorial

00:25:28.000 beliefs

00:25:28.640 a lot

00:25:30.700 of that

00:25:30.900 has to

00:25:31.240 do

00:25:31.420 with

00:25:31.600 the

00:25:31.740 degradation

00:25:32.040 of

00:25:32.420 our

00:25:32.620 media

00:25:33.000 and

00:25:33.600 well

00:25:36.900 the

00:25:37.740 degradation

00:25:38.120 of

00:25:38.380 our

00:25:38.500 media

00:25:38.740 let's

00:25:39.020 leave

00:25:39.180 it

00:25:39.280 at

00:25:39.420 that

00:25:39.720 but

00:25:40.600 when

00:25:40.760 you

00:25:40.860 talk

00:25:41.080 about

00:25:41.280 a

00:25:41.560 group

00:25:41.840 like

00:25:42.400 the

00:25:42.560 Federal

00:25:42.820 Reserve

00:25:43.300 and

00:25:43.680 the

00:25:43.840 banking

00:25:44.140 system

00:25:44.640 you

00:25:45.920 just

00:25:46.120 can't

00:25:46.420 escape

00:25:46.680 the

00:25:46.880 reality

00:25:47.360 that

00:25:47.980 you

00:25:48.120 are

00:25:48.320 talking

00:25:48.740 about

00:25:49.080 a

00:25:49.220 very

00:25:49.420 small

00:25:49.700 group

00:25:49.940 of

00:25:50.120 people

00:25:50.340 who

00:25:50.520 make

00:25:50.720 key

00:25:50.960 decisions

00:25:51.420 that

00:25:51.960 are

00:25:52.140 not

00:25:52.420 benefiting

00:25:52.820 everybody

00:25:53.260 else

00:25:53.540 the

00:25:53.740 Fed

00:25:54.140 is

00:25:55.400 governed

00:25:55.860 by a

00:25:56.620 committee

00:25:56.940 of

00:25:57.700 12

00:25:58.220 people

00:25:58.660 basically

00:25:59.220 you

00:26:00.420 know

00:26:00.540 you've

00:26:00.740 got

00:26:00.860 your

00:26:01.020 regional

00:26:01.300 bank

00:26:01.560 presidents

00:26:01.980 you've

00:26:02.240 got

00:26:02.360 your

00:26:02.520 Fed

00:26:02.740 board

00:26:02.960 of

00:26:03.140 governors

00:26:03.440 you've

00:26:03.700 got

00:26:03.780 your

00:26:03.940 Fed

00:26:04.140 chairman

00:26:04.520 and

00:26:05.340 this

00:26:05.520 committee

00:26:05.800 that

00:26:06.000 meets

00:26:06.200 every

00:26:06.400 six

00:26:06.640 weeks

00:26:06.880 has

00:26:07.100 12

00:26:07.580 voting

00:26:08.120 members

00:26:08.540 they are

00:26:08.900 making

00:26:09.160 decisions

00:26:09.640 these

00:26:09.860 12

00:26:10.200 voting

00:26:10.580 members

00:26:10.860 are

00:26:11.000 making

00:26:11.220 decisions

00:26:11.740 right

00:26:12.140 now

00:26:12.600 that

00:26:13.540 will

00:26:14.100 and

00:26:14.440 you know

00:26:15.140 it's

00:26:15.380 pushing

00:26:15.700 the

00:26:15.900 economy

00:26:16.200 into

00:26:16.480 a

00:26:16.680 recession

00:26:17.180 these

00:26:18.760 12

00:26:19.060 people

00:26:19.400 made

00:26:19.840 decisions

00:26:20.360 back

00:26:20.800 in

00:26:21.160 2010

00:26:21.900 through

00:26:22.200 2012

00:26:22.980 that

00:26:24.000 created

00:26:24.380 enormous

00:26:24.960 asset

00:26:25.420 bubbles

00:26:25.820 divided

00:26:26.320 the

00:26:26.640 you know

00:26:27.060 increase

00:26:27.580 the

00:26:27.780 wealth

00:26:28.020 gap

00:26:28.300 so

00:26:28.620 there's

00:26:29.940 definitely

00:26:30.280 some

00:26:32.240 that

00:26:32.780 power

00:26:33.200 is

00:26:33.480 highly

00:26:33.860 concentrated

00:26:34.860 in

00:26:35.860 our

00:26:36.000 system

00:26:36.440 today

00:26:36.900 I

00:26:38.320 mentioned

00:26:38.660 the

00:26:38.900 banks

00:26:39.360 we

00:26:39.780 all

00:26:40.020 know

00:26:40.300 that

00:26:40.500 the

00:26:40.660 banks

00:26:40.980 that

00:26:41.300 were

00:26:41.420 too

00:26:41.600 big

00:26:41.780 to

00:26:41.920 fail

00:26:42.180 in

00:26:42.340 2008

00:26:42.700 have

00:26:43.320 only

00:26:43.580 gotten

00:26:43.880 larger

00:26:44.520 and

00:26:44.920 less

00:26:45.200 able

00:26:45.480 to

00:26:45.740 fail

00:26:46.100 those

00:26:47.260 banks

00:26:47.580 were

00:26:47.740 never

00:26:48.000 like

00:26:48.360 reformed

00:26:49.240 the

00:26:49.500 leaders

00:26:49.860 were

00:26:50.140 never

00:26:50.440 punished

00:26:51.040 for

00:26:51.300 the

00:26:51.520 fraud

00:26:51.980 that

00:26:52.580 led

00:26:52.800 to

00:26:52.940 2008

00:26:53.280 so

00:26:54.000 yeah

00:26:54.300 you know

00:26:55.580 this

00:26:55.820 stuff

00:26:56.100 feeds

00:26:56.460 into

00:26:56.700 this

00:26:56.960 sense

00:26:57.300 that

00:26:57.620 there's

00:26:57.880 a

00:26:57.980 small

00:26:58.240 group

00:26:58.520 of

00:26:58.720 people

00:26:59.040 not

00:26:59.300 looking

00:26:59.580 out

00:27:02.240 as a

00:27:03.280 reporter

00:27:03.720 I

00:27:04.940 feel

00:27:05.180 like

00:27:05.320 it's

00:27:05.480 very

00:27:05.740 important

00:27:06.180 for

00:27:06.500 us

00:27:06.780 to

00:27:07.040 deal

00:27:07.580 directly

00:27:08.340 with

00:27:08.760 the

00:27:08.980 facts

00:27:09.480 to

00:27:10.460 be

00:27:11.300 dispassionate

00:27:12.060 to try

00:27:12.340 to be

00:27:12.580 fair

00:27:13.020 to try

00:27:13.420 to put

00:27:13.740 out

00:27:13.920 really

00:27:14.160 good

00:27:14.400 information

00:27:14.880 that

00:27:15.160 people

00:27:15.420 can

00:27:15.660 rely

00:27:16.020 upon

00:27:16.480 so

00:27:17.060 that

00:27:17.360 in

00:27:17.540 democracies

00:27:18.160 we can

00:27:18.480 make

00:27:18.680 good

00:27:18.880 decisions

00:27:19.320 you know

00:27:19.980 about

00:27:20.260 what

00:27:20.680 to do

00:27:20.940 going

00:27:21.180 forward

00:27:21.580 in

00:27:22.480 terms

00:27:22.740 of

00:27:22.880 the

00:27:23.000 small

00:27:23.320 group

00:27:23.580 of

00:27:23.720 people

00:27:23.940 making

00:27:24.240 these

00:27:24.500 decisions

00:27:24.920 we

00:27:25.360 have

00:27:25.540 a

00:27:25.960 similar

00:27:26.200 thing

00:27:26.440 in

00:27:26.600 Canada

00:27:26.900 the

00:27:27.100 Bank

00:27:27.320 of

00:27:27.500 Canada

00:27:27.820 has

00:27:28.120 its

00:27:28.320 governing

00:27:28.600 council

00:27:29.100 and

00:27:29.400 it's

00:27:29.600 a

00:27:29.780 handful

00:27:30.380 of

00:27:30.600 economists

00:27:31.160 who

00:27:31.700 guide

00:27:32.380 the

00:27:32.800 economy

00:27:33.140 of

00:27:33.340 the

00:27:33.460 entire

00:27:33.800 nation

00:27:34.260 looking

00:27:35.800 at

00:27:36.100 the

00:27:36.280 bios

00:27:36.660 of

00:27:36.820 both

00:27:36.960 the

00:27:37.080 governing

00:27:37.320 council

00:27:37.740 in

00:27:38.080 Canada

00:27:38.420 and

00:27:39.360 the

00:27:39.720 members

00:27:40.100 in

00:27:40.420 the

00:27:40.580 states

00:27:40.960 they're

00:27:42.340 mostly

00:27:42.640 PhD

00:27:43.160 economists

00:27:44.200 tend

00:27:45.560 to have

00:27:45.820 worked

00:27:46.000 in

00:27:46.100 higher

00:27:46.320 education

00:27:46.840 or

00:27:47.200 at

00:27:47.580 a

00:27:48.580 handful

00:27:49.000 of

00:27:49.220 financial

00:27:49.620 institutions

00:27:50.280 the

00:27:50.780 backgrounds

00:27:51.300 are

00:27:51.640 strikingly

00:27:52.380 similar

00:27:52.740 when you

00:27:53.140 start

00:27:53.340 to look

00:27:53.620 at

00:27:53.740 their

00:27:53.880 resumes

00:27:54.220 do

00:27:54.860 you

00:27:54.960 think

00:27:55.100 that

00:27:55.320 lack

00:27:55.660 of

00:27:55.980 diversity

00:27:56.800 plays

00:27:57.360 a

00:27:57.500 role

00:27:57.700 in

00:27:57.860 how

00:27:58.060 disconnected

00:27:58.780 these

00:27:59.560 central

00:27:59.840 banks

00:28:00.120 can

00:28:00.400 seem

00:28:00.660 from

00:28:00.860 what's

00:28:01.080 happening

00:28:01.340 on

00:28:01.520 the

00:28:01.620 ground

00:28:01.920 oh

00:28:03.660 without

00:28:03.940 question

00:28:04.500 it's

00:28:04.960 such

00:28:05.160 a

00:28:05.320 huge

00:28:05.760 factor

00:28:06.440 and

00:28:06.700 it's

00:28:06.920 so

00:28:07.220 difficult

00:28:08.140 for

00:28:08.620 citizens

00:28:09.060 to

00:28:09.380 kind

00:28:09.600 of

00:28:09.720 grapple

00:28:10.200 with

00:28:10.540 in

00:28:11.000 the

00:28:11.160 following

00:28:11.520 way

00:28:11.880 you've

00:28:13.320 got

00:28:13.540 two

00:28:14.120 spheres

00:28:15.460 of

00:28:15.860 people

00:28:16.160 that

00:28:16.340 pay

00:28:16.520 attention

00:28:16.840 to

00:28:17.060 central

00:28:17.340 banking

00:28:17.680 the

00:28:17.960 first

00:28:18.320 is

00:28:18.560 the

00:28:18.760 sphere

00:28:19.080 you

00:28:19.340 just

00:28:19.660 mentioned

00:28:20.520 the

00:28:20.700 people

00:28:20.860 that

00:28:21.020 run

00:28:21.220 the

00:28:21.380 central

00:28:21.620 banks

00:28:21.980 they're

00:28:22.480 almost

00:28:22.780 uniformly

00:28:23.600 PhD

00:28:24.200 economists

00:28:24.800 that

00:28:25.500 grow up

00:28:27.100 and learn

00:28:27.960 in a

00:28:28.400 frankly

00:28:28.820 extremely

00:28:30.880 insular

00:28:31.780 world

00:28:32.460 dominated

00:28:33.580 by

00:28:34.060 theory

00:28:34.900 total

00:28:37.240 I mean

00:28:37.880 computer

00:28:38.840 models

00:28:39.360 I show

00:28:39.920 how in

00:28:40.300 the book

00:28:40.760 the

00:28:41.620 internal

00:28:42.000 forecasts

00:28:42.640 used

00:28:42.920 by

00:28:43.100 the

00:28:43.280 Fed

00:28:43.540 on

00:28:43.720 key

00:28:43.940 decisions

00:28:44.440 were

00:28:44.680 completely

00:28:45.320 unreliable

00:28:46.260 and

00:28:46.520 erroneous

00:28:47.480 but

00:28:48.560 there's

00:28:48.820 this

00:28:49.080 culture

00:28:49.760 of

00:28:50.320 academia

00:28:50.980 that

00:28:51.680 prizes

00:28:52.380 these

00:28:52.940 theoretical

00:28:53.520 models

00:28:54.240 this

00:28:55.200 sort

00:28:55.420 of

00:28:55.580 insular

00:28:56.060 world

00:28:56.420 I mean

00:28:56.660 Ben

00:28:56.920 Bernanke

00:28:57.380 the

00:28:58.800 former

00:28:59.380 Fed

00:28:59.640 chair

00:28:59.820 who

00:29:00.000 drove

00:29:00.240 so

00:29:00.440 much

00:29:00.600 of

00:29:00.700 this

00:29:00.860 is

00:29:01.000 just

00:29:01.180 like

00:29:01.460 the

00:29:02.100 poster

00:29:02.520 child

00:29:03.040 for

00:29:03.840 this

00:29:04.080 world

00:29:04.580 of

00:29:05.020 economic

00:29:05.620 theorists

00:29:06.460 who

00:29:07.240 are

00:29:07.580 totally

00:29:08.800 detached

00:29:09.680 from

00:29:10.820 the

00:29:11.000 real

00:29:11.280 workings

00:29:11.960 of

00:29:12.340 the

00:29:12.500 economic

00:29:12.940 system

00:29:13.520 now

00:29:14.520 the

00:29:15.180 second

00:29:15.560 sphere

00:29:16.020 of

00:29:16.220 people

00:29:16.540 who

00:29:17.300 pay

00:29:17.780 attention

00:29:18.140 to

00:29:18.320 the

00:29:18.480 Fed

00:29:18.780 are

00:29:19.020 the

00:29:19.180 people

00:29:19.520 in

00:29:20.460 the

00:29:20.580 financial

00:29:20.940 trading

00:29:21.380 world

00:29:22.060 the

00:29:22.860 partners

00:29:24.000 who

00:29:24.280 run

00:29:24.460 private

00:29:24.820 equity

00:29:25.140 firms

00:29:25.620 the

00:29:26.360 CEOs

00:29:26.820 of

00:29:27.240 the

00:29:27.360 big

00:29:28.180 banks

00:29:28.740 the

00:29:29.360 people

00:29:29.760 that

00:29:30.020 own

00:29:30.360 and

00:29:30.560 run

00:29:30.860 hedge

00:29:31.400 funds

00:29:31.800 it's

00:29:33.060 so

00:29:33.220 fascinating

00:29:33.680 to me

00:29:34.020 as a

00:29:34.300 reporter

00:29:34.680 to get

00:29:35.060 to bounce

00:29:35.560 back

00:29:35.820 and forth

00:29:36.220 between

00:29:36.580 these

00:29:36.800 two

00:29:37.020 worlds

00:29:37.520 because

00:29:38.800 you

00:29:38.960 get

00:29:39.080 a

00:29:39.220 totally

00:29:39.540 different

00:29:39.920 picture

00:29:40.300 of

00:29:40.600 what's

00:29:41.120 going

00:29:41.340 on

00:29:41.680 I

00:29:42.440 mean

00:29:42.620 particularly

00:29:43.140 the

00:29:43.540 people

00:29:43.840 on

00:29:44.060 Wall

00:29:44.360 Street

00:29:44.700 are

00:29:46.060 totally

00:29:46.700 unsentimental

00:29:47.820 in their

00:29:48.120 evaluations

00:29:48.720 of what

00:29:49.120 the

00:29:49.260 Fed

00:29:49.420 is

00:29:49.580 doing

00:29:49.820 they're

00:29:50.060 also

00:29:50.380 on

00:29:50.900 Wall

00:29:51.160 Street

00:29:51.360 they're

00:29:51.560 not

00:29:51.800 tied

00:29:52.420 at

00:29:52.840 all

00:29:53.420 to

00:29:53.740 these

00:29:54.080 sort

00:29:54.900 of

00:29:55.040 theoretical

00:29:55.540 models

00:29:56.260 or

00:29:56.700 how

00:29:57.380 things

00:29:57.740 work

00:29:58.180 and

00:29:58.960 that's

00:29:59.200 why

00:29:59.500 you

00:30:00.480 see

00:30:02.400 these

00:30:02.640 totally

00:30:02.920 different

00:30:03.260 pictures

00:30:03.580 of the

00:30:03.860 world

00:30:04.020 I

00:30:04.120 mean

00:30:04.180 the

00:30:04.300 people

00:30:04.500 on

00:30:04.680 Wall

00:30:04.880 Street

00:30:05.040 know

00:30:05.420 what a

00:30:05.940 terrible

00:30:06.380 situation

00:30:07.440 we're

00:30:07.740 in

00:30:07.960 they

00:30:08.260 know

00:30:08.440 for a

00:30:08.760 fact

00:30:08.980 that

00:30:09.180 the

00:30:09.320 Fed

00:30:09.540 has

00:30:09.680 been

00:30:09.840 pumping

00:30:10.160 up

00:30:10.460 asset

00:30:11.160 bubbles

00:30:11.560 that

00:30:11.860 are

00:30:12.000 destabilizing

00:30:12.700 the

00:30:12.860 economy

00:30:13.120 the

00:30:13.260 Wall

00:30:13.400 Street

00:30:13.520 people

00:30:13.760 just

00:30:13.960 don't

00:30:14.140 care

00:30:14.400 because

00:30:14.820 they're

00:30:14.960 going to

00:30:15.120 make

00:30:15.280 money

00:30:15.600 regardless

00:30:16.320 basically

00:30:16.900 most

00:30:17.220 of

00:30:17.380 them

00:30:17.640 and

00:30:18.400 so

00:30:20.280 let's

00:30:21.820 look

00:30:22.000 at

00:30:22.140 I

00:30:22.320 mean

00:30:22.440 it's

00:30:22.700 it's

00:30:23.040 it's

00:30:23.340 tough

00:30:23.900 to

00:30:25.200 kind

00:30:25.860 of

00:30:25.960 drive

00:30:26.180 I

00:30:26.320 think

00:30:26.480 to

00:30:26.600 what's

00:30:26.840 the

00:30:27.060 heart

00:30:27.460 of

00:30:27.540 your

00:30:27.640 question

00:30:28.080 is

00:30:28.300 like

00:30:28.560 who

00:30:29.340 should

00:30:29.640 we

00:30:29.860 be

00:30:30.080 nominating

00:30:30.560 to run

00:30:30.980 the

00:30:31.180 Fed

00:30:31.500 like

00:30:31.880 these

00:30:32.660 economists

00:30:33.180 that

00:30:33.580 really

00:30:33.880 dominate

00:30:34.320 the

00:30:34.580 system

00:30:34.880 right

00:30:35.080 now

00:30:35.260 are

00:30:35.380 making

00:30:35.800 huge

00:30:37.160 mistakes

00:30:38.020 and

00:30:38.980 they're

00:30:39.480 too

00:30:39.860 insular

00:30:40.440 and

00:30:40.980 kind

00:30:41.860 of

00:30:42.000 divorced

00:30:42.420 from

00:30:42.640 the

00:30:42.800 real

00:30:43.000 world

00:30:43.520 but

00:30:44.280 of

00:30:44.480 course

00:30:44.760 the

00:30:45.160 people

00:30:45.460 in

00:30:45.620 the

00:30:45.720 financial

00:30:46.080 world

00:30:46.540 by the

00:30:47.540 nature

00:30:47.800 of

00:30:47.980 capitalism

00:30:48.360 are

00:30:48.620 going to

00:30:48.880 pursue

00:30:49.180 their own

00:30:49.580 self

00:30:49.820 interests

00:30:50.160 and

00:30:50.380 profits

00:30:51.040 it's

00:30:51.380 like

00:30:51.640 that's

00:30:51.880 what

00:30:52.000 capitalism

00:30:52.460 is

00:30:52.740 built

00:30:52.920 to

00:30:53.120 do

00:30:53.380 so

00:30:54.240 it's

00:30:54.600 not

00:30:54.820 necessarily

00:30:55.320 like

00:30:55.660 you'd

00:30:55.860 want

00:30:56.020 to

00:30:56.140 just

00:30:56.320 fire

00:30:56.840 every

00:30:57.940 PhD

00:30:58.360 economist

00:30:58.800 and

00:30:59.080 recruit

00:31:00.320 out of

00:31:00.840 the

00:31:00.980 boardrooms

00:31:01.520 of

00:31:01.780 private

00:31:02.180 equity

00:31:02.520 and

00:31:02.740 big

00:31:03.080 banks

00:31:03.380 to

00:31:03.580 run

00:31:03.760 the

00:31:03.920 Fed

00:31:04.200 this

00:31:05.520 drives

00:31:06.020 to

00:31:07.640 the

00:31:08.040 really

00:31:08.500 difficult

00:31:09.220 compromises

00:31:10.880 and

00:31:11.400 struggles

00:31:11.860 that

00:31:12.280 democracies

00:31:12.920 have to

00:31:13.340 confront

00:31:13.860 when

00:31:14.880 you're

00:31:15.440 building

00:31:15.740 or

00:31:15.900 running

00:31:16.080 a

00:31:16.300 central

00:31:16.600 bank

00:31:16.960 it's

00:31:17.380 obviously

00:31:17.860 not

00:31:18.180 easy

00:31:18.520 but

00:31:19.380 political

00:31:20.600 oversight

00:31:21.380 is

00:31:22.280 super

00:31:22.720 important

00:31:23.220 and

00:31:24.400 just

00:31:25.020 having

00:31:25.440 the

00:31:25.760 public

00:31:26.480 debate

00:31:27.020 about

00:31:27.340 it

00:31:27.500 just

00:31:27.820 the

00:31:28.040 public

00:31:28.620 vocabulary

00:31:31.280 and

00:31:31.620 understanding

00:31:32.180 of what

00:31:32.560 these

00:31:32.780 banks

00:31:33.120 is

00:31:33.340 doing

00:31:33.860 is

00:31:34.080 really

00:31:34.300 important

00:31:34.780 but

00:31:35.720 so

00:31:36.100 yeah

00:31:36.340 I mean

00:31:36.660 to

00:31:36.920 close

00:31:38.040 like

00:31:38.340 on

00:31:38.520 your

00:31:38.640 question

00:31:39.060 these

00:31:40.600 institutions

00:31:41.240 are run

00:31:41.900 by

00:31:42.580 PhD

00:31:43.960 economists

00:31:44.560 and

00:31:45.020 I have

00:31:45.720 having

00:31:46.400 looked

00:31:46.740 through

00:31:47.160 the

00:31:47.440 evidence

00:31:47.860 and

00:31:48.040 the

00:31:48.180 debates

00:31:48.580 I'm

00:31:48.820 just

00:31:49.000 so

00:31:49.580 disillusioned

00:31:51.760 with

00:31:52.000 how much

00:31:52.400 these

00:31:52.600 people

00:31:52.900 really

00:31:53.240 know

00:31:53.620 they

00:31:54.860 the

00:31:55.380 central

00:31:55.960 banks

00:31:56.220 are

00:31:56.440 absolutely

00:31:57.260 feeling

00:31:58.100 their way

00:31:58.600 through

00:31:58.860 a dark

00:31:59.280 room

00:31:59.680 right now

00:32:00.340 without

00:32:01.480 question

00:32:02.180 and yet

00:32:03.080 these

00:32:03.400 people

00:32:03.900 get up

00:32:04.360 and speak

00:32:04.820 as if

00:32:05.140 they know

00:32:05.420 exactly

00:32:05.760 what's

00:32:06.000 going

00:32:06.200 on

00:32:06.580 it seems

00:32:08.680 to me

00:32:08.920 whenever

00:32:09.240 the subject

00:32:09.860 of

00:32:10.280 reforming

00:32:11.520 perhaps

00:32:11.940 how our

00:32:12.340 central

00:32:12.580 banks

00:32:12.920 are run

00:32:13.340 comes

00:32:13.680 up

00:32:14.000 the

00:32:14.640 panicked

00:32:15.460 reaction

00:32:15.960 we often

00:32:16.440 hear

00:32:16.720 is that

00:32:17.060 oh

00:32:17.240 we don't

00:32:17.580 want to

00:32:17.780 lose

00:32:17.960 our

00:32:18.100 independence

00:32:18.540 or

00:32:19.260 we'll

00:32:19.460 become

00:32:19.700 too easily

00:32:20.120 swayed

00:32:20.620 by

00:32:20.760 political

00:32:21.200 whims

00:32:21.700 do you

00:32:22.400 think there

00:32:22.740 is a way

00:32:23.200 that central

00:32:23.660 banks can

00:32:24.260 become more

00:32:25.160 accountable to

00:32:26.340 the public

00:32:26.860 or democratic

00:32:27.880 without losing

00:32:29.360 that well i should

00:32:30.620 say supposed

00:32:31.180 independence

00:32:31.800 it's a great

00:32:36.360 question i mean

00:32:37.280 when you talk

00:32:38.600 about that i

00:32:39.100 will say one

00:32:39.660 thing we're not

00:32:40.380 good at doing

00:32:41.060 in america is

00:32:41.880 talking about

00:32:42.540 reforming the

00:32:43.280 fed like

00:32:44.000 they're basically

00:32:45.620 two camps

00:32:46.440 in my mind

00:32:47.520 one camp

00:32:48.260 says do

00:32:48.800 away with

00:32:49.200 the central

00:32:49.600 bank it's

00:32:50.140 a racket

00:32:50.600 it's

00:32:51.300 corrupt

00:32:51.880 whatever

00:32:52.480 and then

00:32:53.300 this other

00:32:53.860 camp says

00:32:54.860 you know

00:32:55.380 we need to

00:32:55.900 protect the

00:32:56.420 institution

00:32:57.080 um

00:32:58.040 it got to

00:32:58.620 keep

00:32:58.980 keep it

00:32:59.720 away from

00:33:00.220 grubby

00:33:00.600 dirty

00:33:00.920 politics

00:33:01.680 entirely

00:33:02.240 and the

00:33:03.720 critics are

00:33:04.440 crazy

00:33:04.880 uh you know

00:33:06.500 i don't

00:33:07.040 subscribe to

00:33:07.740 either

00:33:08.060 camp

00:33:08.660 it is

00:33:10.060 entirely

00:33:10.580 possible

00:33:11.380 to

00:33:12.500 create

00:33:14.120 more

00:33:14.540 democratic

00:33:15.260 oversight

00:33:16.200 and over

00:33:18.120 central banks

00:33:18.900 uh it's not

00:33:20.660 impossible at

00:33:21.280 all it's a

00:33:21.700 policy choice

00:33:22.400 in fact to

00:33:22.960 not do

00:33:23.460 that

00:33:23.800 and

00:33:24.460 here in

00:33:25.460 the u.s

00:33:25.980 our our

00:33:26.700 leaders have

00:33:27.400 been making

00:33:27.780 a very

00:33:28.120 conscious

00:33:28.480 choice

00:33:28.920 to kind

00:33:29.320 of like

00:33:29.640 abdicate

00:33:30.260 their

00:33:30.520 responsibility

00:33:31.180 and to

00:33:32.020 just leave

00:33:32.560 it to

00:33:32.820 the fed

00:33:33.280 that's one

00:33:34.100 of the

00:33:34.280 dynamics

00:33:34.760 i think

00:33:35.300 that's really

00:33:35.740 at the

00:33:35.960 heart of

00:33:36.240 this is

00:33:36.600 that

00:33:36.920 when the

00:33:38.320 fed

00:33:38.520 prints

00:33:39.140 money

00:33:39.540 as they

00:33:40.180 have

00:33:40.340 done

00:33:40.720 and

00:33:41.380 flood

00:33:41.920 it

00:33:42.060 into

00:33:42.280 wall

00:33:42.580 street

00:33:43.000 it

00:33:43.800 kind

00:33:44.060 of

00:33:44.220 lets

00:33:44.640 lawmakers

00:33:45.960 off the

00:33:46.480 hook

00:33:46.820 who

00:33:48.000 are in

00:33:48.680 what we

00:33:48.980 would call

00:33:49.320 like the

00:33:49.820 fiscal

00:33:50.420 authorities

00:33:51.320 not the

00:33:51.780 monetary

00:33:52.280 authorities

00:33:52.800 which is

00:33:53.220 central

00:33:53.500 banking

00:33:53.800 but the

00:33:54.180 fiscal

00:33:54.480 authorities

00:33:54.860 that

00:33:55.180 raise

00:33:55.620 taxes

00:33:56.080 or cut

00:33:56.500 taxes

00:33:56.960 that

00:33:57.900 spend

00:33:58.420 that

00:33:58.680 build

00:33:59.020 schools

00:33:59.500 that

00:33:59.700 govern

00:33:59.980 things

00:34:00.380 these

00:34:01.300 lawmakers

00:34:01.680 have

00:34:01.980 just been

00:34:02.340 sitting

00:34:02.660 on their

00:34:02.980 hands

00:34:03.300 in so

00:34:03.640 many

00:34:03.820 fundamental

00:34:04.160 ways

00:34:04.640 and

00:34:04.920 letting

00:34:05.220 the

00:34:05.460 fed

00:34:05.800 sort of

00:34:06.280 take

00:34:06.500 on

00:34:06.740 the

00:34:07.040 burden

00:34:07.340 or

00:34:07.600 the

00:34:07.760 onus

00:34:08.120 of

00:34:08.660 printing

00:34:08.960 money

00:34:09.220 to

00:34:09.400 drive

00:34:09.640 growth

00:34:09.900 it's

00:34:10.180 a

00:34:10.400 totally

00:34:10.760 failed

00:34:11.240 model

00:34:11.600 it

00:34:11.840 doesn't

00:34:12.240 work

00:34:12.580 we've

00:34:13.100 got to

00:34:13.360 move

00:34:13.500 past

00:34:13.840 it

00:34:14.040 and

00:34:14.440 frankly

00:34:14.780 the

00:34:15.020 price

00:34:15.540 tag

00:34:15.760 for

00:34:15.920 moving

00:34:16.140 past

00:34:16.480 is

00:34:16.620 going

00:34:16.740 to

00:34:16.760 be

00:34:16.860 very

00:34:17.140 high

00:34:17.440 we're

00:34:17.620 in a

00:34:17.820 terrible

00:34:18.040 position

00:34:18.540 right

00:34:18.780 now

00:34:19.140 but

00:34:19.980 democratically

00:34:22.400 controlled

00:34:24.400 institutions

00:34:25.540 can

00:34:27.740 absolutely

00:34:28.680 take

00:34:29.200 a

00:34:30.480 more

00:34:31.280 proactive

00:34:32.260 role

00:34:33.000 in

00:34:33.740 overseeing

00:34:34.760 central

00:34:35.440 banking

00:34:35.940 and

00:34:37.080 in fact

00:34:37.760 I think

00:34:38.220 they

00:34:38.600 have to

00:34:39.540 and they

00:34:39.960 also have

00:34:40.360 to do

00:34:40.660 a better

00:34:40.940 job

00:34:41.460 at doing

00:34:42.200 actual

00:34:43.120 fiscal

00:34:43.480 regulation

00:34:44.100 we're

00:34:44.860 horrible

00:34:45.200 at doing

00:34:45.620 that in

00:34:45.920 the US

00:34:46.240 we just

00:34:46.700 borrow

00:34:48.060 to

00:34:48.600 paper

00:34:49.540 over

00:34:49.860 the

00:34:50.120 tough

00:34:50.320 choices

00:34:50.720 here

00:34:51.040 right

00:34:51.400 now

00:34:51.640 so

00:34:52.300 I

00:34:55.520 have

00:34:56.280 come

00:34:56.520 to the

00:34:56.800 conclusion

00:34:57.360 like

00:34:59.000 who

00:34:59.200 cares

00:34:59.540 but

00:34:59.960 I mean

00:35:00.400 I

00:35:00.560 think

00:35:01.000 it's

00:35:01.260 like

00:35:01.640 fundamental

00:35:02.540 you

00:35:03.020 have

00:35:03.440 to

00:35:03.540 have

00:35:03.680 a

00:35:03.780 central

00:35:04.020 bank

00:35:04.420 to

00:35:04.760 create

00:35:05.180 and

00:35:05.360 manage

00:35:05.760 stable

00:35:06.160 currencies

00:35:06.660 it's

00:35:07.460 super

00:35:07.860 you can't

00:35:08.420 do

00:35:08.620 like

00:35:08.900 advanced

00:35:09.340 industrial

00:35:09.980 capitalism

00:35:10.460 without

00:35:10.780 that

00:35:11.220 so I

00:35:12.020 think

00:35:12.140 the

00:35:12.280 idea

00:35:12.560 of

00:35:12.740 throwing

00:35:13.460 the

00:35:13.720 bank

00:35:13.960 out

00:35:14.120 the

00:35:14.300 window

00:35:14.560 is

00:35:14.960 just

00:35:15.740 a

00:35:15.960 non-starter

00:35:16.680 and

00:35:18.100 in

00:35:18.260 the

00:35:18.400 US

00:35:18.860 when

00:35:19.940 we

00:35:20.080 built

00:35:20.340 the

00:35:20.560 bank

00:35:21.000 the

00:35:22.700 Fed

00:35:23.000 is

00:35:23.160 so

00:35:23.360 fascinating

00:35:23.900 it's

00:35:24.100 actually

00:35:24.340 it's

00:35:24.540 not even

00:35:24.880 a single

00:35:25.400 central bank

00:35:25.980 it's a

00:35:26.320 network

00:35:26.700 of 12

00:35:27.560 banks

00:35:28.100 12

00:35:29.720 regional

00:35:30.220 banks

00:35:30.740 and they

00:35:31.160 each put

00:35:31.660 someone on

00:35:32.140 this leadership

00:35:32.640 council

00:35:33.040 called the

00:35:33.400 FOMC

00:35:33.980 I'm sorry

00:35:34.380 leadership

00:35:34.760 committee

00:35:35.260 and we

00:35:36.520 tried to

00:35:37.020 decentralize

00:35:37.860 power

00:35:38.300 in the

00:35:38.740 US

00:35:39.180 but we've

00:35:40.080 let it

00:35:40.560 really

00:35:41.420 really

00:35:41.760 drift

00:35:42.240 so

00:35:42.740 I guess

00:35:44.160 my answer

00:35:44.680 to you

00:35:45.120 is that

00:35:45.960 democratic

00:35:47.520 politicians

00:35:49.420 that are

00:35:49.780 elected

00:35:50.020 by the

00:35:50.340 people

00:35:50.700 there's

00:35:51.820 so much

00:35:52.380 that they

00:35:52.680 could

00:35:52.840 do

00:35:53.280 to

00:35:54.460 have

00:35:55.240 more

00:35:55.600 oversight

00:35:56.400 of the

00:35:57.020 Fed

00:35:57.420 and to

00:35:58.220 even

00:35:58.480 just

00:35:58.740 debate

00:35:59.100 its

00:35:59.280 policies

00:35:59.740 and they

00:36:00.060 do

00:36:00.220 now

00:36:00.520 it's

00:36:00.780 not

00:36:00.940 like

00:36:01.120 they

00:36:01.240 just

00:36:01.480 need

00:36:01.720 to

00:36:01.900 take

00:36:02.200 over

00:36:02.440 the

00:36:02.640 Fed

00:36:02.940 you

00:36:03.720 touched

00:36:04.000 briefly

00:36:04.340 on

00:36:04.680 how

00:36:05.140 we

00:36:05.340 get

00:36:05.500 out

00:36:05.680 of

00:36:05.800 this

00:36:05.980 QE

00:36:06.360 mess

00:36:06.760 both

00:36:07.360 the

00:36:07.520 Fed

00:36:07.800 and

00:36:07.940 the

00:36:08.040 Bank

00:36:08.200 of

00:36:08.360 Canada

00:36:08.660 are

00:36:08.980 currently

00:36:09.420 doing

00:36:09.960 QT

00:36:10.620 now

00:36:10.920 quantitative

00:36:11.460 tightening

00:36:12.020 can you

00:36:12.900 tell us

00:36:13.320 exactly

00:36:13.960 what

00:36:14.220 that

00:36:14.540 is

00:36:14.880 and

00:36:15.320 is

00:36:15.620 this

00:36:15.740 something

00:36:16.000 that's

00:36:16.300 going

00:36:16.440 to be

00:36:16.780 easy

00:36:17.160 to

00:36:17.400 unravel

00:36:17.780 oh

00:36:19.640 this

00:36:19.900 is

00:36:20.180 going

00:36:21.020 to

00:36:21.120 be

00:36:21.360 incredibly

00:36:21.860 difficult

00:36:22.360 and

00:36:22.680 incredibly

00:36:23.420 painful

00:36:23.900 to

00:36:24.200 unravel

00:36:24.700 and

00:36:25.680 the

00:36:26.880 Fed

00:36:27.200 has

00:36:27.460 been

00:36:27.800 digging

00:36:28.260 the

00:36:28.480 hole

00:36:28.680 deeper

00:36:29.120 and

00:36:29.420 deeper

00:36:29.680 for

00:36:30.100 years

00:36:30.580 and

00:36:31.220 avoiding

00:36:31.740 the

00:36:32.360 hard

00:36:32.580 choices

00:36:32.960 it

00:36:33.280 has

00:36:33.540 had

00:36:33.780 to

00:36:33.980 make

00:36:34.220 to

00:36:34.460 do

00:36:34.840 what

00:36:35.860 you

00:36:36.180 call

00:36:37.000 the

00:36:37.460 thing

00:36:38.000 you

00:36:38.120 just

00:36:38.300 mentioned

00:36:38.580 of

00:36:38.780 quantitative

00:36:39.300 tightening

00:36:39.980 we're

00:36:43.400 in a

00:36:43.740 very

00:36:44.140 very

00:36:44.560 bad

00:36:45.600 place

00:36:46.100 right

00:36:46.380 now

00:36:46.760 because

00:36:47.720 of

00:36:48.000 what

00:36:48.100 the

00:36:48.240 Fed's

00:36:48.520 done

00:36:48.760 over

00:36:48.960 the

00:36:49.120 last

00:36:49.400 decade

00:36:50.020 so

00:36:50.620 the

00:36:51.800 Fed

00:36:53.020 did

00:36:53.280 two

00:36:53.740 critically

00:36:54.360 important

00:36:54.780 things

00:36:55.220 in the

00:36:55.840 2010s

00:36:56.620 first of

00:36:57.360 all

00:36:57.500 it

00:36:57.820 dropped

00:36:58.500 interest

00:36:59.060 rates

00:36:59.520 to

00:36:59.900 zero

00:37:00.540 in

00:37:01.200 2009

00:37:02.200 and

00:37:03.740 then

00:37:04.020 it

00:37:04.320 kept

00:37:04.740 interest

00:37:05.140 rates

00:37:05.440 at

00:37:05.600 zero

00:37:05.920 for

00:37:06.280 over

00:37:06.520 seven

00:37:07.000 years

00:37:07.440 and

00:37:07.880 that

00:37:08.100 is

00:37:08.260 extraordinary

00:37:08.900 it

00:37:10.380 had

00:37:10.520 never

00:37:10.720 done

00:37:10.920 that

00:37:11.100 before

00:37:11.480 so

00:37:12.240 while

00:37:12.480 the

00:37:12.680 rates

00:37:12.960 are

00:37:13.080 kept

00:37:13.420 at

00:37:13.540 a

00:37:13.640 floor

00:37:13.860 of

00:37:14.040 zero

00:37:14.320 for

00:37:14.580 seven

00:37:14.840 years

00:37:15.300 it's

00:37:16.140 then

00:37:16.420 printing

00:37:16.840 all

00:37:17.020 this

00:37:17.180 money

00:37:17.400 through

00:37:17.620 quantitative

00:37:18.120 easing

00:37:18.560 which

00:37:18.760 it

00:37:18.900 had

00:37:19.040 also

00:37:19.400 never

00:37:19.660 done

00:37:19.900 before

00:37:20.300 so

00:37:21.400 now

00:37:21.560 here

00:37:21.740 we

00:37:21.880 are

00:37:22.020 in

00:37:22.160 2022

00:37:23.020 and

00:37:24.400 the

00:37:24.600 Fed

00:37:24.940 needs

00:37:25.440 to

00:37:25.760 what

00:37:25.980 they

00:37:26.140 call

00:37:26.400 tighten

00:37:26.980 the

00:37:27.420 money

00:37:27.640 supply

00:37:28.280 to

00:37:29.560 fight

00:37:29.960 inflation

00:37:30.720 I

00:37:32.760 kind

00:37:32.980 of

00:37:33.060 walk

00:37:33.240 through

00:37:33.400 this

00:37:33.560 in

00:37:33.660 the

00:37:33.780 book

00:37:33.960 a

00:37:34.080 little

00:37:34.220 bit

00:37:34.380 we

00:37:34.520 had

00:37:34.640 this

00:37:34.840 huge

00:37:35.180 rampant

00:37:35.800 double

00:37:36.300 digit

00:37:36.640 inflation

00:37:37.180 in

00:37:37.440 the

00:37:37.560 1970s

00:37:38.580 the

00:37:39.420 only

00:37:39.760 way

00:37:40.060 we

00:37:40.240 were

00:37:40.400 able

00:37:40.660 to

00:37:40.960 really

00:37:41.240 kill

00:37:41.560 that

00:37:41.780 inflation

00:37:42.180 was

00:37:42.440 by

00:37:42.640 tightening

00:37:43.060 the

00:37:43.360 money

00:37:43.520 supply

00:37:43.980 which

00:37:44.240 back

00:37:44.480 then

00:37:44.740 meant

00:37:45.040 raising

00:37:45.460 rates

00:37:45.860 today

00:37:46.740 it

00:37:47.000 means

00:37:47.320 doing

00:37:47.580 two

00:37:47.820 things

00:37:48.120 it

00:37:48.280 means

00:37:48.500 raising

00:37:49.080 rates

00:37:49.640 and

00:37:50.580 then

00:37:50.740 also

00:37:51.420 quantitative

00:37:53.720 tightening

00:37:54.280 which

00:37:54.600 is

00:37:54.860 basically

00:37:56.180 retracting

00:37:57.280 that

00:37:57.460 tidal

00:37:57.740 wave

00:37:57.980 of

00:37:58.120 new

00:37:58.260 money

00:37:58.520 I

00:37:58.760 think

00:37:58.900 that's

00:37:59.080 the

00:37:59.200 best

00:37:59.360 way

00:37:59.500 to

00:37:59.640 think

00:37:59.840 about

00:38:00.080 it

00:38:00.200 like

00:38:00.360 the

00:38:00.520 Fed

00:38:00.680 pushed

00:38:01.000 all

00:38:01.120 these

00:38:01.260 new

00:38:01.440 dollars

00:38:01.700 into

00:38:01.920 Wall

00:38:02.160 Street

00:38:02.400 now

00:38:03.280 the

00:38:03.460 Fed

00:38:03.640 needs

00:38:03.880 to

00:38:04.060 suck

00:38:04.400 that

00:38:04.640 money

00:38:04.900 out

00:38:05.460 in

00:38:05.900 order

00:38:06.140 to

00:38:06.440 tighten

00:38:06.660 the

00:38:06.800 money

00:38:06.940 supply

00:38:07.320 to

00:38:07.540 fight

00:38:07.740 inflation

00:38:08.260 to

00:38:10.160 me

00:38:10.320 the

00:38:10.500 most

00:38:10.680 fascinating

00:38:11.200 little

00:38:11.520 time

00:38:11.860 period

00:38:12.340 I

00:38:13.160 wrote

00:38:13.420 about

00:38:13.620 in

00:38:13.720 the

00:38:13.820 book

00:38:14.040 was

00:38:14.220 the

00:38:14.360 time

00:38:14.580 period

00:38:14.960 in

00:38:15.480 2018

00:38:16.580 and

00:38:17.240 2019

00:38:18.300 which

00:38:19.640 was

00:38:19.780 the

00:38:19.940 last

00:38:20.140 time

00:38:20.320 the

00:38:20.480 Fed

00:38:20.660 tried

00:38:21.000 to

00:38:21.200 tighten

00:38:21.500 and

00:38:22.920 the

00:38:23.800 effects

00:38:24.420 were

00:38:24.740 catastrophic

00:38:25.400 and

00:38:26.240 I

00:38:26.560 need

00:38:26.760 to

00:38:26.900 emphasize

00:38:27.280 the

00:38:27.600 effects

00:38:27.880 were

00:38:28.060 catastrophic

00:38:30.520 was

00:38:30.820 growing

00:38:31.260 when

00:38:31.920 unemployment

00:38:32.400 was

00:38:32.880 low

00:38:33.320 when

00:38:33.880 we

00:38:34.020 weren't

00:38:34.300 facing

00:38:34.700 inflation

00:38:35.360 even

00:38:36.320 back

00:38:36.680 then

00:38:37.140 the

00:38:37.880 Fed

00:38:38.060 was

00:38:38.220 not

00:38:38.380 able

00:38:38.560 to

00:38:38.760 raise

00:38:39.000 rates

00:38:39.420 nor

00:38:40.440 suck

00:38:41.440 the

00:38:41.620 money

00:38:41.800 out

00:38:42.020 through

00:38:42.160 quantitative

00:38:42.560 tightening

00:38:43.000 without

00:38:43.280 creating

00:38:43.820 these

00:38:44.080 very

00:38:45.240 strong

00:38:45.700 and

00:38:45.860 wrenching

00:38:46.320 downturns

00:38:46.960 in the

00:38:47.200 market

00:38:47.540 since

00:38:49.240 that

00:38:49.480 time

00:38:50.080 the

00:38:51.200 Fed

00:38:51.540 has

00:38:52.100 more

00:38:54.100 than

00:38:54.320 doubled

00:38:54.740 the

00:38:55.740 amount

00:38:56.040 of

00:38:56.220 money

00:38:56.520 in

00:38:57.100 Wall

00:38:57.340 Street

00:38:57.520 through

00:38:57.720 quantitative

00:38:58.140 tightening

00:38:58.580 what I

00:38:59.040 mean

00:38:59.160 to

00:38:59.300 say

00:38:59.460 is

00:38:59.600 like

00:38:59.840 the

00:39:00.640 Fed's

00:39:00.980 balance

00:39:01.400 sheet

00:39:01.720 which

00:39:02.000 reflects

00:39:02.360 how much

00:39:02.720 money

00:39:02.920 it

00:39:03.080 creates

00:39:03.460 the

00:39:04.060 Fed's

00:39:04.380 balance

00:39:04.720 sheet

00:39:04.980 was

00:39:05.160 under

00:39:05.360 four

00:39:05.660 trillion

00:39:06.000 dollars

00:39:06.520 in

00:39:07.700 2019

00:39:08.280 that's

00:39:08.840 nine

00:39:09.400 trillion

00:39:09.780 today

00:39:10.160 that's

00:39:10.600 a lot

00:39:11.140 of

00:39:11.340 money

00:39:11.500 out

00:39:11.700 there

00:39:11.820 that

00:39:11.980 the

00:39:12.120 Fed

00:39:12.280 needs

00:39:12.540 to

00:39:12.700 try

00:39:12.880 to

00:39:13.020 pull

00:39:13.260 back

00:39:13.640 and

00:39:14.880 the

00:39:15.680 Fed

00:39:15.880 is

00:39:16.020 trying

00:39:16.240 to

00:39:16.360 also

00:39:16.600 hike

00:39:16.880 rates

00:39:17.220 up

00:39:17.500 again

00:39:18.500 from

00:39:18.820 zero

00:39:19.220 so

00:39:21.260 what

00:39:21.460 we're

00:39:21.620 going

00:39:21.740 to

00:39:21.880 see

00:39:22.340 is

00:39:23.540 that

00:39:23.940 the

00:39:24.300 consequences

00:39:25.000 in

00:39:25.280 price

00:39:25.660 tag

00:39:26.180 that

00:39:26.460 the

00:39:26.640 Fed

00:39:26.960 has

00:39:27.240 been

00:39:27.640 delaying

00:39:28.420 and

00:39:28.620 delaying

00:39:29.080 and

00:39:29.220 delaying

00:39:29.580 it's

00:39:29.740 all

00:39:29.880 going

00:39:30.000 to

00:39:30.080 come

00:39:30.240 home

00:39:30.420 to

00:39:30.620 roost

00:39:30.980 now

00:39:31.540 quite

00:39:32.800 unfortunately

00:39:33.540 you know

00:39:36.520 I think

00:39:37.500 stock prices

00:39:38.300 are still

00:39:38.840 very very

00:39:39.520 very high

00:39:40.420 even though

00:39:41.860 they're down

00:39:42.220 25%

00:39:43.220 and

00:39:44.660 when you

00:39:45.700 really read

00:39:46.540 the financial

00:39:47.200 press

00:39:47.820 about what's

00:39:48.500 going on

00:39:48.860 in the

00:39:49.040 so-called

00:39:49.400 bond

00:39:49.960 market

00:39:50.500 it's

00:39:51.840 wild

00:39:52.280 it's

00:39:52.600 very bad

00:39:53.360 and

00:39:54.420 when I

00:39:55.620 say

00:39:55.800 very

00:39:56.060 bad

00:39:56.540 well

00:39:57.920 what I

00:39:59.300 mean to

00:39:59.560 say is

00:39:59.800 that

00:39:59.960 the

00:40:00.360 market

00:40:01.760 is

00:40:02.020 crashing

00:40:02.880 that's

00:40:03.420 the best

00:40:03.920 way to

00:40:04.180 put it

00:40:04.480 prices

00:40:05.320 are going

00:40:05.740 down

00:40:05.980 interest

00:40:06.320 rates

00:40:06.580 are going

00:40:06.960 up

00:40:07.280 that's

00:40:08.340 just

00:40:08.460 going

00:40:08.640 to

00:40:08.740 have

00:40:08.980 huge

00:40:09.500 huge

00:40:10.100 huge

00:40:11.100 ripple

00:40:11.560 effects

00:40:12.060 across

00:40:12.480 the

00:40:12.700 global

00:40:13.000 economy

00:40:13.520 and

00:40:15.000 that's

00:40:15.380 not

00:40:15.720 just

00:40:16.080 me

00:40:16.420 talking

00:40:16.900 that's

00:40:17.440 the

00:40:17.660 IMF

00:40:18.220 talking

00:40:18.780 that's

00:40:19.440 Janet

00:40:19.720 Yellen

00:40:20.060 the US

00:40:20.460 Treasury

00:40:20.780 Secretary

00:40:21.220 talking

00:40:21.920 we're

00:40:24.600 in a

00:40:24.980 very

00:40:25.460 very

00:40:25.720 fragile

00:40:26.100 position

00:40:26.620 as

00:40:27.500 the

00:40:27.680 Fed

00:40:27.940 is

00:40:28.760 forced

00:40:29.240 to

00:40:29.640 tighten

00:40:29.960 to

00:40:30.200 fight

00:40:30.440 inflation

00:40:31.020 considering

00:40:33.080 no

00:40:33.680 central

00:40:34.020 bank

00:40:34.320 has

00:40:34.520 been

00:40:34.700 able

00:40:35.080 to

00:40:35.960 tighten

00:40:36.340 successfully

00:40:38.140 for a

00:40:38.580 long

00:40:38.740 period

00:40:39.040 of

00:40:39.200 time

00:40:39.460 once

00:40:39.740 they've

00:40:40.020 started

00:40:40.300 QE

00:40:40.840 do you

00:40:41.580 think

00:40:41.740 QE

00:40:42.000 is

00:40:42.160 essentially

00:40:42.640 addictive

00:40:43.740 for

00:40:44.440 the

00:40:44.700 economy

00:40:45.020 do you

00:40:45.300 think

00:40:45.440 we'll

00:40:45.680 be

00:40:45.940 able

00:40:46.180 to

00:40:46.540 really

00:40:47.180 taper

00:40:47.540 off

00:40:47.840 long

00:40:48.120 term

00:40:48.380 and

00:40:48.600 withstand

00:40:48.980 the

00:40:49.320 hangover

00:40:49.680 that

00:40:49.880 comes

00:40:50.100 with

00:40:50.300 that

00:40:50.580 addiction

00:40:52.420 is a

00:40:53.100 metaphor

00:40:53.340 people

00:40:53.760 use

00:40:54.140 all

00:40:54.320 the

00:40:54.480 time

00:40:54.800 and

00:40:54.960 I

00:40:55.100 think

00:40:55.260 it's

00:40:55.440 very

00:40:55.640 helpful

00:40:56.100 here's

00:40:58.800 one way

00:40:59.880 that it

00:41:00.340 was put

00:41:00.720 really

00:41:01.120 well

00:41:01.440 to me

00:41:01.880 I

00:41:02.640 mentioned

00:41:03.100 earlier

00:41:03.920 this

00:41:04.360 character

00:41:04.820 in the

00:41:05.120 book

00:41:05.280 named

00:41:05.500 Thomas

00:41:05.900 Honig

00:41:06.360 he

00:41:06.800 was

00:41:06.980 the

00:41:07.120 guy

00:41:07.280 that

00:41:07.460 voted

00:41:07.700 against

00:41:08.140 quantitative

00:41:08.640 easing

00:41:09.180 and

00:41:09.840 then

00:41:10.080 after

00:41:10.600 that

00:41:10.900 he

00:41:11.060 became

00:41:11.420 actually

00:41:11.720 a

00:41:11.920 bank

00:41:12.140 regulator

00:41:12.640 which

00:41:12.900 was

00:41:13.100 interesting

00:41:13.540 and

00:41:13.920 I

00:41:15.020 interviewed

00:41:15.340 him

00:41:15.860 in

00:41:16.540 about

00:41:16.880 2016

00:41:17.660 or

00:41:17.920 2017

00:41:18.440 and

00:41:19.880 at

00:41:20.020 that

00:41:20.280 point

00:41:20.680 interest

00:41:21.240 rates

00:41:21.600 had

00:41:21.800 been

00:41:21.960 at

00:41:22.180 zero

00:41:22.580 for

00:41:23.180 over

00:41:23.500 seven

00:41:23.800 years

00:41:24.220 and

00:41:25.500 there

00:41:26.700 was

00:41:26.960 you

00:41:27.120 know

00:41:27.240 trillions

00:41:27.660 of dollars

00:41:28.020 in

00:41:28.220 quantitative

00:41:28.580 easing

00:41:28.960 cash

00:41:29.400 and

00:41:29.820 I

00:41:31.480 remember

00:41:31.740 Tom

00:41:32.020 saying

00:41:32.340 to

00:41:32.500 me

00:41:32.740 he's

00:41:33.720 like

00:41:33.980 when

00:41:34.420 interest

00:41:34.800 rates

00:41:35.040 are

00:41:35.140 at

00:41:35.260 zero

00:41:35.420 for

00:41:35.620 seven

00:41:35.920 years

00:41:36.320 you

00:41:37.140 have

00:41:37.300 a

00:41:37.400 whole

00:41:37.680 global

00:41:38.160 economic

00:41:38.620 system

00:41:39.040 that

00:41:39.220 begins

00:41:39.560 to

00:41:39.820 orient

00:41:40.260 itself

00:41:40.760 around

00:41:41.040 that

00:41:41.220 zero

00:41:41.540 rate

00:41:41.880 you've

00:41:42.320 got

00:41:42.560 assets

00:41:43.000 getting

00:41:43.280 sold

00:41:43.680 you've

00:41:43.940 got

00:41:44.120 contracts

00:41:44.660 getting

00:41:44.940 signed

00:41:45.600 all

00:41:46.320 of

00:41:46.460 these

00:41:46.620 things

00:41:46.840 are

00:41:47.000 built

00:41:47.320 in

00:41:47.620 a

00:41:47.780 zero

00:41:48.020 percent

00:41:48.300 world

00:41:48.760 when

00:41:49.860 you

00:41:50.000 raise

00:41:50.260 rates

00:41:50.660 to

00:41:51.300 two

00:41:51.560 and a

00:41:51.800 half

00:41:52.080 three

00:41:52.660 four

00:41:53.300 percent

00:41:53.800 the

00:41:54.600 world

00:41:54.860 changes

00:41:55.520 you know

00:41:56.300 stuff

00:41:56.920 you did

00:41:57.280 in a

00:41:57.520 zero

00:41:57.720 percent

00:41:58.000 world

00:41:58.380 doesn't

00:41:58.760 make

00:41:58.960 any

00:41:59.220 sense

00:41:59.620 in a

00:42:00.220 four

00:42:00.420 percent

00:42:00.700 world

00:42:01.060 the

00:42:01.840 same

00:42:02.220 is

00:42:02.400 exactly

00:42:02.800 true

00:42:03.260 for

00:42:03.520 quantitative

00:42:04.000 easing

00:42:04.560 you know

00:42:05.060 the

00:42:06.040 deals

00:42:06.440 that were

00:42:06.720 made

00:42:07.280 the

00:42:07.580 asset

00:42:07.900 prices

00:42:08.320 that

00:42:08.760 were

00:42:08.980 priced

00:42:09.640 when

00:42:10.500 the

00:42:10.700 Fed

00:42:10.980 was

00:42:11.200 pumping

00:42:11.500 all

00:42:11.700 this

00:42:11.880 money

00:42:12.120 into

00:42:12.360 the

00:42:12.600 system

00:42:13.020 those

00:42:14.560 prices

00:42:15.120 contracts

00:42:16.240 won't

00:42:16.620 make

00:42:16.860 sense

00:42:17.380 when

00:42:17.920 the

00:42:18.080 Fed

00:42:18.260 tries

00:42:18.680 to

00:42:18.920 tighten

00:42:19.320 so

00:42:20.280 when

00:42:20.460 we

00:42:20.580 talk

00:42:20.800 about

00:42:21.020 addiction

00:42:21.500 what

00:42:22.520 we

00:42:22.680 mean

00:42:22.880 to

00:42:23.040 say

00:42:23.380 is

00:42:23.660 that

00:42:23.800 the

00:42:23.960 Fed

00:42:24.220 reorients

00:42:24.860 the

00:42:25.060 world

00:42:25.320 when

00:42:25.500 it

00:42:25.660 prints

00:42:26.020 all

00:42:26.180 this

00:42:26.340 money

00:42:26.760 but

00:42:27.400 then

00:42:27.580 when

00:42:27.780 it

00:42:27.920 tries

00:42:28.180 to

00:42:28.380 withdraw

00:42:28.880 that

00:42:29.240 money

00:42:29.580 the

00:42:30.320 markets

00:42:30.680 are

00:42:30.840 going

00:42:30.980 to

00:42:31.100 react

00:42:31.460 very

00:42:31.800 very

00:42:32.080 negatively

00:42:32.800 in

00:42:33.820 our

00:42:33.960 addiction

00:42:34.300 metaphor

00:42:34.640 you

00:42:34.920 could

00:42:35.080 call

00:42:35.320 that

00:42:35.540 like

00:42:35.780 the

00:42:35.960 withdrawal

00:42:36.540 or

00:42:36.900 the

00:42:37.080 sickness

00:42:41.700 done

00:42:42.160 is

00:42:43.300 not

00:42:43.520 just

00:42:43.760 delayed

00:42:44.400 the

00:42:45.140 withdrawal

00:42:45.760 but

00:42:46.720 we've

00:42:47.200 intensified

00:42:48.680 how bad

00:42:49.180 it's

00:42:49.380 going

00:42:49.500 to

00:42:49.580 be

00:42:49.740 by

00:42:49.960 continuing

00:42:50.420 to

00:42:50.960 double

00:42:51.460 triple

00:42:52.080 quintuple

00:42:52.720 down

00:42:53.160 on

00:42:53.860 QE

00:42:54.320 that's

00:42:55.680 why

00:42:56.000 today

00:42:56.620 we're

00:42:57.520 in

00:42:57.840 a

00:42:58.540 very

00:42:58.940 very

00:42:59.380 fragile

00:42:59.940 position

00:43:00.500 because

00:43:00.900 there's

00:43:01.380 you know

00:43:01.700 nine

00:43:02.140 trillion

00:43:02.780 dollars

00:43:03.300 that

00:43:03.500 we've

00:43:03.720 got

00:43:03.860 to

00:43:04.000 deal

00:43:05.360 with

00:43:05.600 here

00:43:05.880 and

00:43:06.460 by

00:43:06.640 say

00:43:06.880 try

00:43:07.140 to

00:43:07.320 deal

00:43:07.520 with

00:43:07.700 I

00:43:07.840 mean

00:43:08.120 gosh

00:43:09.540 let me

00:43:10.620 rewind

00:43:11.700 back

00:43:12.020 to

00:43:12.160 2010

00:43:12.660 even

00:43:13.800 back

00:43:14.140 then

00:43:14.500 they

00:43:16.020 were

00:43:16.140 talking

00:43:16.480 you know

00:43:16.920 the

00:43:17.080 balance

00:43:17.480 sheet

00:43:17.820 was

00:43:18.600 like

00:43:18.900 two

00:43:19.200 trillion

00:43:19.560 dollars

00:43:20.060 and

00:43:21.000 they

00:43:21.320 thought

00:43:21.540 they

00:43:21.660 were

00:43:21.740 going

00:43:21.860 to

00:43:21.920 get

00:43:22.060 the

00:43:22.200 balance

00:43:22.540 sheet

00:43:22.780 back

00:43:23.180 to

00:43:23.380 quote

00:43:23.580 unquote

00:43:23.820 normal

00:43:24.300 levels

00:43:24.640 by

00:43:24.840 2015

00:43:25.540 we're

00:43:28.160 so

00:43:28.420 far

00:43:29.080 from

00:43:29.420 that

00:43:29.660 like

00:43:29.880 we're

00:43:30.060 so

00:43:30.440 far

00:43:30.960 from

00:43:31.240 normal

00:43:31.680 right

00:43:32.020 now

00:43:32.400 in

00:43:33.000 terms

00:43:33.260 of

00:43:33.420 the

00:43:33.600 central

00:43:33.900 bank

00:43:34.140 balance

00:43:34.540 sheet

00:43:34.860 or

00:43:35.100 doing

00:43:35.760 any

00:43:36.400 kind

00:43:36.840 of

00:43:37.080 quantitative

00:43:37.560 tightening

00:43:38.120 that

00:43:39.240 the

00:43:41.160 job

00:43:42.000 ahead

00:43:42.240 of

00:43:42.400 us

00:43:42.580 is

00:43:42.820 enormous

00:43:43.380 so

00:43:43.940 yes

00:43:45.500 the

00:43:46.760 system

00:43:47.160 is

00:43:47.560 very

00:43:47.860 addicted

00:43:48.220 to

00:43:48.480 quantitative

00:43:48.880 easing

00:43:49.340 it

00:43:49.460 will

00:43:49.560 be

00:43:49.700 very

00:43:49.920 difficult

00:43:50.320 to

00:43:50.620 get

00:43:50.860 out

00:43:51.300 and

00:43:52.440 I

00:43:52.940 think

00:43:53.320 the

00:43:53.480 other

00:43:53.660 way

00:43:53.860 I'd

00:43:54.080 phrase

00:43:54.340 it

00:43:54.520 is

00:43:54.760 the

00:43:54.940 Fed

00:43:55.160 is

00:43:55.300 absolutely

00:43:55.920 in

00:43:56.220 a

00:43:56.440 deep

00:43:56.820 quagmire

00:43:58.600 of

00:43:59.100 its

00:43:59.280 own

00:43:59.500 making

00:43:59.900 it's

00:44:00.260 not

00:44:00.620 going

00:44:00.740 to

00:44:00.820 be

00:44:00.960 able

00:44:01.280 to

00:44:01.800 unwind

00:44:02.420 this

00:44:02.760 stuff

00:44:03.020 without

00:44:03.240 creating

00:44:03.700 a lot

00:44:04.620 of

00:44:05.000 volatility

00:44:05.480 and

00:44:05.940 pain

00:44:06.260 I've

00:44:07.220 long

00:44:07.440 been

00:44:07.620 a

00:44:07.760 public

00:44:08.020 proponent

00:44:08.560 of

00:44:08.980 the

00:44:09.180 need

00:44:09.360 to

00:44:09.500 tighten

00:44:09.780 to

00:44:10.200 raise

00:44:10.460 interest

00:44:10.880 rates

00:44:11.220 again

00:44:11.540 and

00:44:12.020 the

00:44:12.240 feedback

00:44:12.700 you'll

00:44:13.180 often

00:44:13.460 hear

00:44:13.780 is

00:44:14.020 oh

00:44:14.260 what

00:44:14.560 do

00:44:14.740 you

00:44:14.840 want

00:44:15.000 a

00:44:15.120 big

00:44:15.280 recession

00:44:15.720 you

00:44:16.160 want

00:44:16.380 people

00:44:16.660 to

00:44:16.820 be

00:44:16.980 in

00:44:17.140 pain

00:44:17.440 and

00:44:18.160 of

00:44:18.480 course

00:44:18.760 no

00:44:19.060 no

00:44:19.320 one

00:44:19.500 wants

00:44:20.180 a

00:44:20.420 recession

00:44:20.880 but

00:44:21.740 there's

00:44:22.080 this

00:44:22.320 interesting

00:44:22.740 psychology

00:44:23.420 out

00:44:23.760 there

00:44:23.960 in

00:44:24.120 some

00:44:24.360 groups

00:44:24.720 that

00:44:25.140 somehow

00:44:26.140 we

00:44:26.460 can

00:44:26.620 just

00:44:26.880 indefinitely

00:44:27.520 avoid

00:44:28.460 any

00:44:28.740 sort

00:44:29.000 of

00:44:29.120 correction

00:44:29.480 that

00:44:29.700 these

00:44:29.920 bubbles

00:44:30.240 can

00:44:30.480 continue

00:44:30.840 to

00:44:31.060 blow

00:44:31.300 bigger

00:44:31.720 and

00:44:31.980 bigger

00:44:32.220 and

00:44:32.440 bigger

00:44:32.740 presumably

00:44:33.540 forever

00:44:34.480 don't

00:44:36.020 bubbles

00:44:36.340 eventually

00:44:36.760 have

00:44:37.020 to

00:44:37.120 pop

00:44:37.400 you

00:44:38.520 know

00:44:38.800 the

00:44:40.600 way

00:44:40.980 if

00:44:42.620 bubbles

00:44:43.020 didn't

00:44:43.400 have

00:44:43.680 to

00:44:43.880 pop

00:44:44.360 the

00:44:45.420 world

00:44:45.740 would

00:44:45.940 be

00:44:46.080 so

00:44:46.360 easy

00:44:46.780 life

00:44:47.120 would

00:44:47.260 be

00:44:47.400 so

00:44:47.640 good

00:44:48.040 there

00:44:48.640 would

00:44:48.800 never

00:44:49.000 be

00:44:49.220 a

00:44:49.360 problem

00:44:49.740 tulips

00:44:50.260 would

00:44:50.460 still

00:44:50.700 be

00:44:50.880 selling

00:44:51.300 for

00:44:51.580 thousands

00:44:52.020 of

00:44:52.260 dollars

00:44:52.620 and

00:44:52.840 dot-com

00:44:53.320 stocks

00:44:53.760 would

00:44:54.080 still

00:44:54.320 be

00:44:54.500 selling

00:44:54.800 at

00:44:55.000 sky

00:44:55.240 high

00:44:55.460 levels

00:44:55.800 and

00:44:56.060 we

00:44:56.520 would

00:44:56.700 just

00:44:56.880 be

00:44:57.080 free

00:44:57.420 from

00:44:57.680 pain

00:44:58.060 and

00:44:58.720 also

00:44:59.220 if

00:45:00.220 a

00:45:00.380 nation

00:45:00.680 could

00:45:00.960 simply

00:45:01.340 drive

00:45:02.040 economic

00:45:02.820 prosperity

00:45:03.540 and

00:45:03.800 growth

00:45:04.140 by

00:45:04.660 printing

00:45:05.040 more

00:45:05.300 money

00:45:05.700 we

00:45:06.340 also

00:45:06.600 wouldn't

00:45:06.840 have

00:45:07.020 any

00:45:07.200 problems

00:45:07.640 every

00:45:07.880 central

00:45:08.180 bank

00:45:08.480 could

00:45:08.720 just

00:45:09.020 print

00:45:09.860 indefinite

00:45:11.140 levels

00:45:11.740 it

00:45:12.500 could

00:45:12.680 print

00:45:13.220 infinite

00:45:14.780 levels

00:45:15.240 of money

00:45:15.560 indefinitely

00:45:16.140 unfortunately

00:45:17.980 gravity

00:45:20.460 reasserts

00:45:21.200 itself

00:45:21.660 or when

00:45:22.020 you talk

00:45:22.400 about

00:45:22.640 asset

00:45:23.060 markets

00:45:23.600 the

00:45:24.840 price

00:45:25.380 of an

00:45:25.740 asset

00:45:26.220 inevitably

00:45:26.880 converges

00:45:27.620 with its

00:45:28.040 value

00:45:28.480 it's

00:45:30.260 unavoidable

00:45:31.380 so yes

00:45:31.940 these

00:45:32.180 bubbles

00:45:32.580 always

00:45:33.620 crash

00:45:34.180 and

00:45:35.580 I've

00:45:36.300 heard a

00:45:36.600 lot of

00:45:36.820 the

00:45:36.940 criticism

00:45:37.420 you've

00:45:38.680 heard as

00:45:39.000 well

00:45:39.500 in the

00:45:40.800 sense

00:45:41.080 of

00:45:41.280 like

00:45:41.700 what's

00:45:43.340 the

00:45:43.460 deal

00:45:43.700 do

00:45:43.920 you

00:45:44.060 hate

00:45:44.260 working

00:45:44.540 people

00:45:44.900 do

00:45:45.060 you

00:45:45.160 hate

00:45:45.340 poor

00:45:45.560 people

00:45:45.860 you

00:45:46.020 want

00:45:46.220 to

00:45:46.320 raise

00:45:46.560 rates

00:45:46.840 and

00:45:47.020 punish

00:45:47.240 people

00:45:47.520 for

00:45:47.700 no

00:45:47.880 reason

00:45:48.260 you

00:45:49.200 want

00:45:49.480 to

00:45:49.620 have

00:45:49.980 a

00:45:50.120 recession

00:45:50.500 for

00:45:50.760 the

00:45:50.940 fun

00:45:51.120 of

00:45:51.280 it

00:45:51.460 and

00:45:52.540 I'm

00:45:53.400 mystified

00:45:54.000 totally

00:45:54.820 mystified

00:45:55.460 by that

00:45:55.880 line

00:45:56.260 of

00:45:56.540 criticism

00:45:57.780 for two

00:45:58.380 reasons

00:45:58.860 first

00:46:00.200 look at

00:46:01.300 the decade

00:46:01.700 of 2010

00:46:02.340 to 2020

00:46:03.140 this stuff

00:46:04.760 this money

00:46:05.200 printing

00:46:05.500 this QE

00:46:06.120 the 0%

00:46:06.720 interest rates

00:46:07.420 did not

00:46:08.260 benefit

00:46:09.180 working people

00:46:10.300 I mean

00:46:11.500 the benefit

00:46:12.300 it provided

00:46:12.900 was tiny

00:46:14.060 and marginal

00:46:15.140 compared

00:46:16.120 compared

00:46:16.140 to the

00:46:16.480 benefit

00:46:16.820 that

00:46:17.180 it

00:46:17.320 provided

00:46:17.720 for the

00:46:18.500 richest

00:46:18.900 of the

00:46:19.280 rich

00:46:19.460 people

00:46:19.800 and the

00:46:20.180 biggest

00:46:20.480 of the

00:46:20.800 big

00:46:21.000 banks

00:46:21.360 you know

00:46:22.180 the big

00:46:23.400 banks

00:46:23.660 got

00:46:23.860 quantitative

00:46:24.420 easing

00:46:24.820 and all

00:46:25.240 we got

00:46:25.560 was this

00:46:25.920 crummy

00:46:26.200 t-shirt

00:46:26.680 kind of

00:46:27.240 thing

00:46:27.500 like

00:46:27.860 it did

00:46:28.600 not

00:46:28.800 benefit

00:46:29.120 people

00:46:29.480 and it

00:46:29.760 created

00:46:30.040 huge

00:46:30.600 fragility

00:46:31.480 in our

00:46:31.860 system

00:46:32.200 but

00:46:33.420 secondly

00:46:33.980 listen

00:46:36.620 I'm not

00:46:37.020 trying to

00:46:37.260 be glib

00:46:37.640 I'm like

00:46:38.060 mystified

00:46:38.840 by this

00:46:39.320 notion

00:46:39.880 that in

00:46:40.840 2022

00:46:41.400 there's an

00:46:42.940 idea that

00:46:43.320 we quote

00:46:43.820 should raise

00:46:44.620 rates

00:46:45.020 it's not

00:46:46.840 like

00:46:47.220 it's not

00:46:49.500 like there's

00:46:49.960 a should

00:46:50.600 or there's

00:46:51.740 some big

00:46:52.300 you know

00:46:53.300 the Fed

00:46:54.020 isn't

00:46:54.340 raising rates

00:46:54.980 for fun

00:46:55.700 and it's

00:46:56.620 not raising

00:46:57.160 rates because

00:46:58.100 it wants

00:46:59.560 to prove

00:47:00.000 a point

00:47:00.620 or have

00:47:01.120 some kind

00:47:01.580 of like

00:47:01.920 moral

00:47:02.640 strengthening

00:47:03.340 of the

00:47:04.000 dollar

00:47:04.380 if there's

00:47:06.220 a better

00:47:06.620 way to

00:47:07.280 fight

00:47:07.900 8%

00:47:10.020 inflation

00:47:10.660 we've

00:47:11.620 never

00:47:11.940 found it

00:47:12.580 we've

00:47:13.060 never

00:47:13.340 found it

00:47:13.920 inflation

00:47:14.440 is very

00:47:15.000 serious

00:47:15.680 inflation

00:47:16.880 is not

00:47:17.280 bad

00:47:17.840 on like

00:47:18.940 moral

00:47:19.440 grounds

00:47:20.100 or because

00:47:20.460 you know

00:47:20.800 like gosh

00:47:21.200 darn it

00:47:21.580 we want

00:47:21.940 a strong

00:47:22.380 dollar

00:47:22.760 kind of

00:47:23.140 thing

00:47:23.440 inflation

00:47:24.940 when it

00:47:25.460 becomes

00:47:26.260 embedded

00:47:26.680 in a

00:47:27.260 system

00:47:27.660 and

00:47:28.260 reaches

00:47:28.860 like

00:47:29.160 double

00:47:29.440 digits

00:47:29.780 which

00:47:30.140 we're

00:47:30.440 heading

00:47:31.040 toward

00:47:31.660 if we

00:47:32.120 don't

00:47:32.260 do

00:47:32.440 something

00:47:32.740 it's

00:47:33.800 highly

00:47:34.480 destabilizing

00:47:35.380 for

00:47:35.620 societies

00:47:36.240 I've

00:47:37.920 read

00:47:38.140 some

00:47:38.400 of

00:47:38.540 the

00:47:38.680 history

00:47:39.100 of

00:47:39.800 inflation

00:47:41.080 and

00:47:41.500 it's

00:47:41.820 not

00:47:42.600 fun

00:47:43.020 ruins

00:47:43.960 a

00:47:44.160 weekend

00:47:44.560 bad

00:47:45.340 stuff

00:47:45.880 hair

00:47:46.340 raising

00:47:46.780 out

00:47:47.720 of

00:47:47.880 control

00:47:48.260 inflation

00:47:48.820 is

00:47:50.520 highly

00:47:50.860 destabilizing

00:47:51.900 and I

00:47:52.420 think

00:47:52.660 that

00:47:52.940 the

00:47:53.400 central

00:47:53.740 banks

00:47:54.220 are

00:47:55.220 forced

00:47:55.780 to

00:47:56.620 fight

00:47:56.880 it

00:47:57.100 so

00:47:58.340 it's

00:47:58.580 not

00:47:58.760 I

00:47:59.120 just

00:47:59.500 I

00:47:59.660 don't

00:47:59.760 even

00:47:59.940 see

00:48:00.160 the

00:48:00.320 like

00:48:00.620 the

00:48:01.540 critique

00:48:01.900 of

00:48:02.100 what

00:48:02.260 do

00:48:02.340 you

00:48:02.380 want

00:48:02.540 to

00:48:02.640 raise

00:48:02.860 rates

00:48:03.260 show

00:48:04.540 me

00:48:04.700 the

00:48:04.980 alternative

00:48:05.560 like

00:48:07.080 is

00:48:08.720 the

00:48:08.880 fed

00:48:09.040 supposed

00:48:09.280 to

00:48:09.500 sit

00:48:09.680 back

00:48:10.020 and

00:48:10.160 let

00:48:10.300 inflation

00:48:10.820 hit

00:48:11.300 12%

00:48:12.900 because

00:48:13.180 when

00:48:13.400 that

00:48:13.600 happens

00:48:14.160 it's

00:48:15.160 going

00:48:15.280 to

00:48:15.900 almost

00:48:16.260 certainly

00:48:16.620 really

00:48:16.880 quickly

00:48:17.220 jump

00:48:17.660 again

00:48:18.680 from

00:48:19.400 12

00:48:19.760 to

00:48:19.940 16

00:48:20.360 16

00:48:20.740 to

00:48:20.940 20

00:48:21.300 and

00:48:22.300 this

00:48:22.680 is

00:48:22.840 like

00:48:23.040 no

00:48:23.500 this

00:48:23.760 isn't

00:48:24.000 me

00:48:24.180 talking

00:48:24.500 it's

00:48:24.900 it's

00:48:25.340 because

00:48:25.580 inflation

00:48:26.120 creates

00:48:26.900 these

00:48:27.540 things

00:48:27.780 called

00:48:28.040 inflation

00:48:28.540 expectations

00:48:29.300 whereby

00:48:29.660 people

00:48:30.080 and

00:48:30.220 businesses

00:48:30.580 know

00:48:31.080 that

00:48:31.340 inflation

00:48:31.700 is

00:48:31.880 happening

00:48:32.100 so

00:48:32.300 they

00:48:32.440 do

00:48:32.600 things

00:48:32.860 that

00:48:33.020 drive

00:48:33.260 it

00:48:33.420 further

00:48:33.720 it's

00:48:33.980 a

00:48:34.140 spiral

00:48:34.680 I'm

00:48:35.900 going

00:48:36.000 to

00:48:36.100 leave

00:48:36.280 you

00:48:36.420 with

00:48:36.700 a

00:48:37.180 final

00:48:37.620 question

00:48:38.120 we

00:48:38.360 keep

00:48:38.600 hearing

00:48:39.000 about

00:48:39.420 the

00:48:39.620 potential

00:48:40.000 that

00:48:40.320 central

00:48:40.620 banks

00:48:40.960 might

00:48:41.300 pivot

00:48:41.720 do

00:48:42.620 you

00:48:42.760 see

00:48:42.940 a

00:48:43.080 pivot

00:48:43.260 coming

00:48:43.620 well

00:48:45.040 the

00:48:45.600 reason

00:48:46.000 people

00:48:46.400 think

00:48:46.920 the

00:48:47.580 fed

00:48:48.100 and

00:48:49.080 other

00:48:49.280 central

00:48:49.580 banks

00:48:49.860 will

00:48:50.060 pivot

00:48:50.400 is

00:48:51.360 because

00:48:51.600 the

00:48:51.820 fed

00:48:52.080 has

00:48:52.300 reliably

00:48:53.000 and

00:48:53.400 consistently

00:48:54.120 pivoted

00:48:54.840 at

00:48:54.980 almost

00:48:55.300 every

00:48:55.720 turn

00:48:56.140 going

00:48:56.460 back

00:48:56.760 in

00:48:56.960 history

00:48:57.620 you

00:48:59.260 know

00:48:59.360 I

00:48:59.460 mentioned

00:48:59.720 that

00:48:59.940 little

00:49:00.140 time

00:49:00.440 period

00:49:00.780 in

00:49:01.000 2018

00:49:01.480 2019

00:49:03.020 to

00:49:03.260 tighten

00:49:03.580 and

00:49:04.660 the

00:49:05.320 current

00:49:05.640 chairman

00:49:06.120 of the

00:49:06.340 fed

00:49:06.500 jay

00:49:06.760 powell

00:49:06.960 pivoted

00:49:07.540 dramatically

00:49:08.840 in

00:49:09.220 early

00:49:09.760 2019

00:49:10.460 in

00:49:11.940 late

00:49:12.460 2018

00:49:12.980 jay

00:49:13.380 powell

00:49:13.640 gave

00:49:13.860 this

00:49:14.100 stern

00:49:14.600 speech

00:49:15.100 where

00:49:15.300 he

00:49:15.460 said

00:49:15.760 that

00:49:15.960 tightening

00:49:16.440 was

00:49:16.720 on

00:49:16.880 so-called

00:49:17.340 automatic

00:49:17.860 pilot

00:49:18.380 it

00:49:19.820 caused

00:49:20.160 the

00:49:20.320 markets

00:49:20.620 to

00:49:20.860 continue

00:49:21.220 to

00:49:21.480 fall

00:49:21.840 and

00:49:22.080 in

00:49:22.260 January

00:49:22.640 he

00:49:23.020 literally

00:49:23.580 said

00:49:24.300 sorry

00:49:24.960 I

00:49:25.300 don't

00:49:25.800 we

00:49:26.040 don't

00:49:26.220 mean

00:49:26.380 that

00:49:26.540 not

00:49:26.740 literally

00:49:27.040 I'm

00:49:27.240 sorry

00:49:27.460 the

00:49:28.600 quotes

00:49:29.000 are

00:49:29.160 in

00:49:29.280 the

00:49:29.400 book

00:49:29.600 he

00:49:29.780 pivoted

00:49:30.260 he

00:49:30.440 turned

00:49:31.260 his

00:49:33.020 markets

00:49:33.640 were

00:49:33.800 falling

00:49:34.120 there

00:49:36.420 is a

00:49:36.740 very

00:49:37.000 good

00:49:37.460 you

00:49:38.240 know

00:49:38.380 if

00:49:38.540 you're

00:49:38.740 if

00:49:39.080 you're

00:49:39.280 placing

00:49:39.700 wagers

00:49:40.240 on

00:49:40.500 wall

00:49:40.800 street

00:49:41.040 right

00:49:41.320 now

00:49:41.600 the

00:49:42.580 money

00:49:42.920 that

00:49:43.200 is

00:49:43.360 currently

00:49:43.740 today

00:49:44.340 betting

00:49:44.900 that

00:49:45.220 the

00:49:45.380 fed

00:49:45.520 is

00:49:45.660 going

00:49:45.800 to

00:49:45.940 pivot

00:49:46.220 is

00:49:48.160 not

00:49:48.420 dumb

00:49:48.760 money

00:49:49.140 and

00:49:49.820 when

00:49:50.200 we

00:49:50.380 say

00:49:50.580 pivot

00:49:50.900 what

00:49:51.120 we

00:49:51.300 mean

00:49:51.500 is

00:49:51.620 that

00:49:51.740 the

00:49:51.880 fed

00:49:52.160 will

00:49:52.500 see

00:49:52.920 that

00:49:53.140 stock

00:49:53.420 market

00:49:53.840 prices

00:49:54.620 are

00:49:54.840 falling

00:49:55.120 corporate

00:49:55.480 bond

00:49:55.820 market

00:49:56.120 prices

00:49:56.480 are

00:49:56.720 falling

00:49:57.040 they

00:49:58.160 face

00:49:58.420 political

00:49:58.880 pressure

00:49:59.400 and

00:50:00.680 they

00:50:00.940 stop

00:50:01.720 raising

00:50:02.020 rates

00:50:02.400 and

00:50:02.780 they

00:50:03.020 could

00:50:04.100 start

00:50:05.280 to

00:50:05.500 pump

00:50:05.720 more

00:50:05.900 money

00:50:06.140 in

00:50:06.320 through

00:50:06.440 quantitative

00:50:06.840 easing

00:50:07.300 well

00:50:08.300 thank

00:50:08.520 you

00:50:08.680 Chris

00:50:08.940 I

00:50:09.080 really

00:50:09.280 appreciate

00:50:09.680 you

00:50:09.940 joining

00:50:10.220 me

00:50:10.440 today

00:50:10.740 and

00:50:11.160 you've

00:50:11.420 given

00:50:11.580 us

00:50:11.880 a lot

00:50:12.420 to

00:50:12.640 think

00:50:12.840 about

00:50:13.140 so

00:50:13.540 thank

00:50:13.780 you

00:50:13.900 again

00:50:14.200 thanks

00:50:15.640 thanks

00:50:15.860 for

00:50:16.040 the

00:50:16.140 time

00:50:16.400 I

00:50:16.540 appreciate

00:50:16.860 it

00:50:17.260 full

00:50:17.520 comment

00:50:17.840 is

00:50:18.040 a

00:50:18.160 post

00:50:18.360 media

00:50:18.640 podcast

00:50:19.240 I'm

00:50:19.680 Sabrina

00:50:20.000 Meadow

00:50:20.340 this

00:50:21.080 episode

00:50:21.460 was

00:50:21.660 produced

00:50:22.000 by

00:50:22.200 Andre

00:50:22.540 Pru

00:50:22.840 with

00:50:23.140 theme

00:50:23.340 music

00:50:23.600 by

00:50:23.800 Bryce

00:50:24.060 Hall

00:50:24.280 Kevin

00:50:25.040 Libin

00:50:25.320 is

00:50:25.460 the

00:50:25.600 executive

00:50:25.940 producer

00:50:26.360 you

00:50:27.060 can

00:50:27.200 subscribe

00:50:27.540 to

00:50:27.760 full

00:50:27.920 comment

00:50:28.180 on

00:50:28.380 Apple

00:50:28.600 podcast

00:50:29.100 Google

00:50:29.440 and

00:50:29.720 Spotify

00:50:30.120 or

00:50:30.780 through

00:50:30.980 Amazon

00:50:31.260 music

00:50:31.620 where

00:50:31.860 you

00:50:31.960 can

00:50:32.100 listen

00:50:32.280 through

00:50:32.480 the

00:50:32.640 app

00:50:32.860 or

00:50:33.080 Alexa

00:50:33.420 enabled

00:50:33.840 devices

00:50:34.320 and

00:50:35.200 you

00:50:35.280 can

00:50:35.420 help

00:50:35.620 us

00:50:35.880 by

00:50:36.080 giving

00:50:36.300 us

00:50:36.480 a

00:50:36.600 rating

00:50:36.840 or

00:50:37.140 a

00:50:37.340 review

00:50:37.600 and

00:50:38.120 by

00:50:38.260 telling

00:50:38.460 your

00:50:38.620 friends

00:50:38.840 about

00:50:39.060 full

00:50:39.300 comment

00:50:39.700 thanks

00:50:40.480 for

00:50:40.660 listening

Full Comment - October 24, 2022

How central bankers broke the economy

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