How To Finance the Next American Century
Richard Duncan: How to Finance the Next American Century
Palisades Gold Radio: 5-14-2022
Tom welcomes back Richard Duncan to the show. Richard is a macroeconomist and the author of four books on the global economic crisis including his most recent "The Money Revolution".
He started writing his new book at the beginning of 2018 and it was nearly complete but then the pandemic started. Global events necessitated a pause in writing the book to see how things would play out.
In total Richard took four years to write it. The book discusses the history of money and credit and the lessons that can be learned from the history of the Federal Reserve.
Everyone must understand how the Fed functions because it's likely the most important corporation in the world. It determines globally what happens to markets and economies.
The book discusses the total credit of the United States which includes all debt by all entities. In 1974 that was one trillion by 2008 we were at 50 trillion. Today we're over 90 trillion dollars and this has fundamentally changed the nature of our economic system.
Our economic system today should be called creditism because the system today no longer utilizes capital savings. We are addicted to credit growth. Whenever credit contracts we enter a recession or depression economically.
The book discusses the causes of inflation and deflation. It reveals that in recent decades changes in the money supply haven't impacted inflation that much. The key has been globalization which has been highly deflationary. Inflation is not just a monetary phenomenon as it is often affected by surprise supply shocks like Russia's invasion of Ukraine.
He dives deeply into explaining a possible way out of our current economic quagmire. By leveraging growth via funding improvements in technology, research, and manufacturing.
Talking Points From This Episode
- Overview of his latest book.
- Departing the gold standard and the rise of creditism. - Why inflation is not always a monetary phenomenon.
- Fixing the future by researching and improving technology.
Time Stamp References:
0:00 - Introduction
1:00 - Book Overview
9:00 - Credit-ism
10:53 - Solutions
12:00 - Globalization & Deflation
24:00 - Fixing The Future
27:33 - Dollar Scenarios
30:00 - Growth & Innovation
31:20 - Investment Programs
38:00 - Government Action?
41:30 - Incentivizing
45:40 - Energy & Environment
48:40 - Manufacturing & Tech.
51:20 - His Book & Macrowatch
55:55 - Wrap Up