More Power To The Princes

Published on
May 22nd, 2020
101 minutes

More Power To The Princes

The Interview ·
Featuring Professor Richard Werner and Hugh Hendry

Published on: May 22nd, 2020 • Duration: 101 minutes

Professor Richard Werner joins Hugh Hendry, founder and former CIO of Eclectica Asset Management, for a deep-dive into the world of central banking. They explore the process of credit creation and examine the fundamental role it plays in inflating asset bubbles, the popping of which can wreck whole economies but can be very good for central bankers. They analyze the Bank of Japan's (BOJ) remarkable record of credit expansion, including its use of lending quotas, through the lens of Werner’' renowned book, "Princes of the Yen," which was a number one bestseller in Japan. They also look at the ongoing efforts of the Fed and the European Central Bank (ECB) to provide liquidity during this unprecedented global crisis at all costs, particularly debt monetization and quantitative easing (a term Werner himself coined), which Werner suggests could lead to a widespread bank nationalization – or a "Sovietization" of the banking sector, as he says. Werner argues that the ECB is undemocratic and that it bears a closer similarity to the Reichsbank (1876 – 1945) than it does to the Bundesbank (1957-present). Hendry and Werner conclude their lengthy discussion by looking forward: they scrutinize the current and future monarchs of the global monetary order, who are no longer princes but who may be on their way to becoming kings. Hugh Hendry can be found on Twitter at @hendry_hugh and on Instagram at hughhendryofficial. Filmed on May 15, 2020.



  • KR
    Kevin R.
    12 September 2020 @ 16:50
    Well interesting to say the least - if creating banks is all we need to create prosperity - then what the hell are we waiting for?
  • JB
    Jonathan B.
    6 August 2020 @ 16:01
    Wow, Werner is such a beautiful mind. I'd like a refund for my economics degree that I spent four years on. let's have him back on soon.
  • DO
    DIOGO O.
    17 July 2020 @ 11:45
    Regarding the subject of Economics, some points must be highlighted, in my opinion: 1) Austrian Economics (i study it ever since 2009) has many interesting points. Howeve, it is INCOMPLETE! Without Prof. Richard Werner's disagreggation of Credit points, one CANNOT fully comprehend the business cycle. For God's sake, the Austrians always talk about the excess credit generate by artificially low interest rates, BUT THEY NEVER TOUCH THE STRUCTURE OF THE CREDIT, which mean, FOR WHAT PORPOSE IS THE CREDIT BEEN USED FOR: productive investment, consumption or speculation. Without that discussion, tha Austrians will REMAIN incomplete, as has been ever since Von Misses....and will remain sideline of economic history. 2) The Austrian view on MONEY is also incomplete. They NEED to study Prof. Richard Werner urgently. And, their hiding of the deleterious effects of the Gold Standard (they only point its benefits) is MISLEADING and PERVERSE. 3) Please guys! Prof Werner HAS TO COME BACK TO R.V. No time limit! Interviewd by RAOUL or with Steve Keen, Jeff guys have to do this... and please,,,this time... keep Hugh Hendry at the beach away from the interview...LOL Great Interview Again!! The Only one I watched for the third time! Keep up the good work guys!
  • IC
    IAIN C.
    9 June 2020 @ 07:35
    It took me a while to find it, so as a public service: the new edition is available from Quantum Publishers: They have a digital version as well as paper & hardback.
    • IC
      IAIN C.
      9 June 2020 @ 07:42
      The digital version I got is a PDF, so will be pretty unreadable on most devices. there was no indication of what formats it came in until after purchase.... Asking for options; I'll update here if they come up with something better, but be warned!
    • IC
      IAIN C.
      12 June 2020 @ 10:58
      After contacting them, the publishers provided me with an epub file. it is next on my reading list. The documentary from the book is on amazon prime and youtube. Well worth watching too, and it has made me want to read the book more than ever. Thanks RV/Hugh for bringing attention to this story!
    • RD
      REMCO D.
      30 June 2020 @ 18:31
      Question: did you get that ePub? I ordered the PDF but they told me they don't have any other formats.
  • MJ
    Mark J.
    25 June 2020 @ 23:33
    Did I see you holding up the bar in Geronimos Richard?
  • MS
    Michael S.
    21 June 2020 @ 05:11
    Very insightful - will become a classic!
  • TE
    Thomas E.
    20 June 2020 @ 04:03
    When is part 2?
  • ND
    Nitul D.
    14 June 2020 @ 20:59
    RV, please we need a Jeff Snider + Richard Werner interview. Damn, that would be the equivalent and could be titled - "A Symphony Orchestra Discussion of Central Banking and the Global Monetary System". I would just pay to watch that discussion.
  • RA
    Rohit A.
    13 June 2020 @ 08:54
    Probably one of the most insightful and thought provoking interviews I have had the pleasure of watching. Well done
  • CM
    Christopher M.
    10 June 2020 @ 00:38
    Great interview, thoroughly enjoyed it. Do think it would be excellent to have Werner back to hear him expand on some of his points. Am going to look for his books! Good stuff RV enjoyed this one.
  • bk
    brian k.
    9 June 2020 @ 01:12
    Germany post-Versaille was financed by among others the Union bank owned by Prescot Bush as a bulwark against communism which the elites feared. The elites search for radical leader and group to work against communism in Europe manifested as the NAZI party. Ford among others supplied parts to both sides in WW11.. Corporations discovered that war was profit and having money unpegged to Gold would allow limitless war and profits. The FED and central banks worked with this narrative. Having money pegged to gold or BTC would in fact inhibit recessions and war by finite implication. Rome historically was the example of devaluing currency to build empire . Great interview, love the website. Thank you.
  • dk
    dorothea k.
    8 June 2020 @ 13:15
    After this interview I finally understand that QE, to the extent that it swaps commercial banks‘ holdings with excess reserves, does not create a credit growth machine. The excess reserves cannot be taken out of the Central Bank and lent out to the private sector. There is a firewall that prevents this. I did not know this before. 
  • GB
    Gold B.
    2 June 2020 @ 11:31
    Absolutely one class apart to most of the recent interviews here on RV. Mr Werner has an excellent grasp of a very complicated topic and has the data/history to back up his claims. The conclusions he reaches are sound in logic and a direct result of his analysis. Thus he does not come across as having an ideological agenda. He also manages to explain things clearly to a Hugh Hendry who seems out of his depth on occasion. So hats of to Mr Werner with true admiration and only one major question: Why does he have to pretend he was the first one to figure out that banks create the credit money we use in our fiat economy? Probably hasn't read Rothbard's "Mystery of Banking" and/or its bibliography (1983) or "What has Government Done to Our Money." (1963) No need for this false claim at all, but I guess we all make mistakes. I would also contest his claims that Austrian economists think low interest rates cause high economic growth. More importantly—and this has been picked up in some of the other comments—why does Hendry cut him off when he starts talking bout the closed circuit fiat money systems and international capital flows and IMF aid in the interest of "time" only to then keep talking for another hour? Very interesting take away for me: Politically sponsored bureaucratic and unaccountable central banks (ECB/BOJ) have an agenda to destroy commercial banks and take over through negative interest rates and a flat yield curve. Since the Fed is still privately owned and partially privately supervised, it makes sense they haven't gone down that rabbit hole as much and only focused on killing off competition in the form of smaller banks to satisfy their TBTF sponsors.
  • GA
    Gabriel A.
    1 June 2020 @ 20:16
    It's not Nationalized, because the FED is private, not a part of the government.
  • JS
    Jürgen S.
    1 June 2020 @ 07:16
    Great interview. Super performance from Richard.
  • ZY
    ZHENG Y.
    24 May 2020 @ 05:49
    Anyone successful bought the new released: Princes of the Yen? I cannot make my PayPal payment go through QuantumPublishers.
    • MS
      Matt S.
      24 May 2020 @ 06:15
      which country are you in?
    • ZY
      ZHENG Y.
      24 May 2020 @ 07:18
    • LP
      Len P.
      24 May 2020 @ 10:35
      Yes, I ordered the new version of the book about a month ago from Quantum Publishers, had no issues with the payment process and the book arrived in a couple of days (I'm based in England and paid via a debit card).
    • DO
      Duncan O.
      24 May 2020 @ 18:49
      Success here, about a week ago. Am in the UK.
    • ZY
      ZHENG Y.
      29 May 2020 @ 02:28
      Ok, i purchased the book, via a UK PayPal account, shipping to Singapore.
    • DW
      Damon W.
      1 June 2020 @ 06:39
      I got a digital copy through the publisher and am downloading it now. I paid through PayPal, which was the only payment option offered.
  • CT
    Cherry T.
    31 May 2020 @ 22:41
    Hugh looking at Werner like a lover at the end of the video hahaha. You can tell the admiration.
  • MK
    Munira K.
    31 May 2020 @ 09:49
    Professor Richard is outstanding - concepts on international flows/why bank credit is not a factor in exchange rate movements is not one hears very often..differentiated content delivered by an individual with deep understanding of monetary systems. His clarity is what separates him from a guy like Hugh, who is entertaining, but a bit unclear.
  • AH
    Alexander H.
    31 May 2020 @ 08:28
    Amazing! I love what you guys at Real Vision have done here. Hugh is such a colourful character and clearly passionate while speaking with Richard (the person he has always wanted to interview). That being said, i know we could go even deeper with Raoul in the mix. No offense at all to Hugh, he is clearly a rockstar who is well deserving of high praise. However, Richard clearly had soooo much more to say and a chat with Richard & Raoul would blow our minds. Please give the people what they need RV! I beg you!!! Keep up the amazing work RV! You are giving common folks like myself a chance to see the truth via data and unbiased content. Unlike the mainstream propaganda media machine... Thank you!
  • JB
    Jamie B.
    31 May 2020 @ 08:07
    Firstly Great Interview, thoroughly enjoyed it and gained a lot from Richard. I'd like to know why Hugh (who I think is an amazing character) closed down the conversation on capital flows so vehemently (around the 45min mark, chapter 7) when Richard really wanted to talk about it and was as animated as he had been all interview??? Richard mentioned; quotes here " the fundamental rule of international banking is: there is no capital flow, money doesn't flow. So the money created by Japanese Banks is in Yen and it stays in Japan. The money created by British Banks is in Pounds Sterling and it stays in Britain. So there are NO capital flows." Regarding developing countries he mentions that they are told by the IMF & World Bank that you don't have enough savings so you can't have growth, we need investment for growth...... Oh you don't have savings we'll lend you the money. So foreign investors lend the money...... but none of this money came into these countries? Cause they lend in foreign currency it stayed abroad. Hugh's dismissive response was essentially "You can fool everyone all the time". I was really keen to hear his point of view here. I don't know why, but pushing Richard off subject when he was so keen to talk about it made me think that there was something Richard was talking about that Hugh didn't want to expose. Maybe not?
  • RO
    Richard O.
    27 May 2020 @ 01:41
    Prof. WERNER STATED THAT CAPITAL FLOW IN THE CURRENT SYSTEM IS AN ILLUSION. As an example "A loan in YEN created by the BOJ stays in Japan , as well as a loan in any other currency towards a foreign firm stays in its domestic economy etc... Therefore , when the IMF or the World bank lends dollars to third world economies it implies that the money stays abroad." May you please bring back prof Werner to develop & explain this argument in another future interview ? Thanks RV , Terrific !
    • LS
      Lemony S.
      27 May 2020 @ 19:53
      I seconded your motion and put a post in above. Great minds think alike Richard! (-:
    • KS
      K S.
      31 May 2020 @ 02:40
      I could be wrong here, but was thinking about the same thing as it relates to reserve currency (USD) which is what your question is referring to. I believe the way the system structurally works is that the loan in USD is created by the IMF, but the local central banks prints local currency against that loan, which is what goes into the actual local economy (local currency, not USD).
  • KS
    K S.
    31 May 2020 @ 02:30
    One of the best interviews ever. Would love to hear from Werner again. A technicallity that I wanted to suggest regarding the last 5 minute segment of the video. It was stated that the price of money doesn't matter and instead its all about credit creation. That may be in part true, but in defense of what I view as one of the most important market indicators, price, and specifically, the price of money, its not that it doesn't matter, its that low interest rates (low price of money) sends the signal to markets that economic growth is low and that there is excess savings in society (when in reality there is not aside from the high banking capacity to create credit BUT if there is demand for that credit from consumers and businesses - unstated part of interview). So in post 2009, in addition to many variables, the consumer balance sheet in the US was destroyed (no excess savings as low interest rates would otherwise suggest) which resulted in weak demand for bank loans for productive GDP projects. Businesses would look at low rates and I would imagine would also believe that growth is low, so why reinvest back into the business (in form of CAPEX), thereby creating a feedback loop of low GDP growth of the economy. This of course glosses over so many other variables like demographics, etc, but just wanted to see if this clarification of the price of money being a vital market signal and factor is in fact important. Thank you.
  • WS
    William S.
    31 May 2020 @ 01:55
    After viewing this interview and watching the YouTube video of Princes of the Yen, I am reminded of Martin Armstrong’s observation of Larry Summer’s comments about being an “insider”. Clearly Professor Werner chose wisely to remain an “outsider”. We are enriched by his humility. No small feat to render such powerful commentary opposite a wordsmith such as Hendry. Ausgezeichtnet!
  • WM
    Will M.
    30 May 2020 @ 18:40
    I was worried before viewing as reading the comments below I thought this was just going to be Hugh Hendry mouthing off all the time. However I found this not to be nearly as bad as implied. Yes HH did interrupt a bit too much, but I got the feeling he was trying to move the discussion along. This was a GREAT discussion and for me as an amateur trying to understand the banking system it raised more concerns about actions of the worlds central bankers. I particularly noted Richard's comments on why Bear Stearns and Lehman Bros may have been paid back by the US Treasury Secretary for past non conferment actions. Also the comments about the missing chapter from his book and the essential "blacklisting" of his work because it said things folks did not want to be put about in public. I loved the LAST 20 mins discussion on QE, "credit easing" (and the reason why US banks are in better shape than their EU counterparts), negative rates, and bank reserves That was a revelation to me as I had always thought Bernanke was worse than Greenspan. Suffice to say, yet again because of RVT, I am feeling more and more uncomfortable about the medium term future.
  • RD
    Ron D.
    23 May 2020 @ 13:34
    Turns out that Hendry is a very talented interviewer. His unique personality allows for an unconventual discussion, which has real value in this space. Too many conversations end up being very similar, because the interviewers all direct the same narrative and follow a similar approach - Hendry couldnt be further from that. True eye opener. I ve seens people try to explain some of the issues discussed, but somehow Professor Werner really got through to me. I think everything he describes makes perfect sence. This will be a permanent re-watch for me and I hope we see more of these two.
    • WM
      Will M.
      30 May 2020 @ 14:37
      Clearly Ron your perspective of what makes a good interviewer is different from mine. This was a discussion / debate not really an interview. If you believe constant interruption merits good interviewing you must be a youngish.
  • VS
    Victor S. | Contributor
    24 May 2020 @ 21:46
    Gents please think about the total debt created ? On 9/30/20 the US will have $28 trillion in stated debt ,and in 10 years will be 65 trillion$ ..... so your 5 star answer to the central banks will kill the system in 10 years. Understand that in 10 years an average of 3% interest will be 40% of all tax revenue ? So the fed postpone. The Great Recession only to maintain the system only to kill the goose. Why don’t you two offer to work for the govt ? You can do no worse than Mnuchin .
    • BB
      Ben B.
      24 May 2020 @ 23:53
      What I always want to know is where does the interest come from? The money is created from fresh air. If I think about money as energy then what the monetary system is trying to be is a perpetual motion machine that actually creates more energy from nowhere which is the interest, this can best be described as magic. All that aside, great film, I can see why Hugh wanted to interview Richard.
    • WM
      Will M.
      30 May 2020 @ 14:25
      Well said Victor..... I have watched with horror all the goings on Greenspan "saved the world" and it has clouded my view of economic "experts" to say the least.
  • TS
    Thomas S.
    25 May 2020 @ 00:44
    Hugh is much loved by his peers and the quirkiness of his personality is entertaining. What stuck me the most about this interview, which likely will be an unpopular opinion, is Hugh's inability to either admit or grasp the easy monetary policy can do harm. In his world of hedge funds and running money for the super rich, he can't see the harm central banks have done to the middle class savers, and seniors. He stated that there are no asset bubbles currently that can do harm to the system. Really? Maybe no harm to him in Barbados. Maybe Raoul should explain to him the current state of citizens the retirement crisis, pension funds, CLO's, and what is hidden in the shadow banking system. I love the work of Richard Werner and agree with his thesis of lots of smaller community not for profit banks and forcing banks by regulation to lend for productive means. I would also like to hear hit thoughts on Glass/Stegal and if TBTF banks should be allowed access to public markets. Seemed to work much better when investment banks were partnerships where losses were not socialized but born by the partnership equity.
    • DS
      David S.
      25 May 2020 @ 04:41
      Thomas S. - Well said. The discussion on the disappearance of the small banks is on point. I would like to have Professor Werner give one or more presentations alone on individual topics. Mr. Hendry points were on spot, but a more in-depth presentations by Professor Werner would be enlightening. DLS
    • LS
      Lemony S.
      26 May 2020 @ 14:18
      As a point of notice, you can read some really solid articles at Werner's site if you are interested in his very direct analysis.
    • MJ
      Michael J.
      29 May 2020 @ 03:19
      Not to mention by keeping asset prices inflated they knock off the bottom rungs of the latter the younger generations use to start families and building wealth. Millennials cant afford homes and to start families. 65% say financial reasons are why they have less or no kids. Any wonder we have a population demographics problem. Maybe the ultimate goal of the central bank planners is to stop population growth?
  • RK
    Ron K.
    29 May 2020 @ 02:43
    This was just remarkable!
  • JF
    Jennifer F.
    29 May 2020 @ 00:57
    My gosh what a brilliant discussion. Thanks goodness Hugh stopped him and asked for more clarification. Ive watched 3 times and I think I'm understanding more all the time.
  • CC
    Charles C.
    28 May 2020 @ 23:45
    Absolutely stunning. It's like the clouds cleared and everything was apparent. Richard had a way of explaining things that make it very easy to follow. Hugh a great foil. More of these two please
  • GB
    Griffin B.
    28 May 2020 @ 23:39
    Best talk yet
  • JH
    Joel H.
    23 May 2020 @ 00:05
    Great interview, thank you guys! I'm only half way through and really enjoying. I've skipped around looking at the sub headings, but wondering if I missed it... What does Richard think of cryptos?
    • MS
      Matt S.
      24 May 2020 @ 04:40
      ADD much?
    • CT
      Crispim T.
      28 May 2020 @ 23:12
      He only likes gold. Like a Peter Schiff, but more paranoid.
  • CT
    Crispim T.
    23 May 2020 @ 01:32
    Great talk, very revealing. Banks are not the problem - Central Banks are. Curious that Bitcoin (BTC) was not mentioned, as it is a truly visionary alternative to central banking and will no doubt shape the next decade.I believe both the ECB and the Fed will lose relevance due to BTC. Read Saifedean Ammous book on this topic (Decentralized alternative to central banking)
    • CT
      Crispim T.
      28 May 2020 @ 23:10
      Found out why. Werner hates BTC. Check his twitter and look for "bitcoin" and "CIA". Conspiracy theorist, without any good arguments. Made me wonder about some of his other claims. Don't trust, verify.
  • AS
    Adnan S.
    25 May 2020 @ 15:43
    PS if Central banks now plan to wipe out all other banks + create a new de facto digital currency, what does that mean for the prospects of Bitcoin? I wish Hugh had dived deeper
    • CT
      Crispim T.
      28 May 2020 @ 23:09
      Werner hates Bitcoin. Says it was created by the CIA because they couldn't control gold well enough and needed something to replace it. This is obviously untrue (both claims).
  • CT
    Crispim T.
    28 May 2020 @ 23:06
    Too bad Werner is all into conspiracies and things Bitcoin (BTC) was created by the CIA (but doesn't really have data) to "supress gold" - he's a major gold bug. And hates Central Banks but loves banks. But good content in the talk.
  • JW
    Jason W.
    28 May 2020 @ 21:22
    This is worth the subscription alone!!!!!!
  • MR
    Michael R.
    26 May 2020 @ 01:04
    This was a good interview and Richard Werner is a treasure as he is one of the very few economists in the world who both understand the nature of money and credit creation and the Japan issues we are all experiencing because he lived them. His books and papers proving once and for all how money is created by banks making loans is crucial reading for anyone. While Hugh is clearly a brilliant and successful hedge funder living a relatively care free life in Barbados these are very serious issues that would benefit from a bit more seriousness due to how many people are affected by this worldwide. This is not a game solely for creating returns but of understanding the plague that debt based money has created and potentially how to change it. His lack of understanding of the banking system including what reserves are and how they are used undermined the material a bit and perhaps a different interviewer who sits between academia and the investment community could extract a bit more out of Dr. Werner. Please have Dr. Werner back soon as his views need to be broadcast globally if we are to get out of this debt based servitude someday.
    • KO
      Kyle O.
      28 May 2020 @ 20:34
      Not taking anything away from Hugh (who is awesome), but hard agree that a more socio-academic exploration of Dr. Werner's immense knowledge on these topics would be appreciated. If his contention that central banks are effectively a cartel taking the world economy private (by squeezing private sector commercial banks out of existence) is true, it's one of the most important topics in the world & one that must be day-lighted + properly examined while there's still time to avert catastrophe.
  • BB
    Benjamin B.
    28 May 2020 @ 17:11
    Thank you. Brilliant.
  • LS
    Lemony S.
    27 May 2020 @ 19:53
    I don't like Hugh's unprofessional appearance but he does get better as the interview goes along, I am happy to see. I believe Professor Werner is the most important voice economically in the world today, and he is an absolute shining star in the realm of truth seeking. God Bless him. As for Richard O's comment below, I agree also that the most important idea that was cutoff in the interview was the capital inflow/outflow idea that he claims to be an illusion. This may be another earth shattering reality that is not understood, and I'm guessing it also has to do with Brent Johnson and Raoul Pal's position that the world will continue to be starved for US dollars. If anyone could guess where he was going, please indicate as much, but otherwise, let's get Richard Werner back for more foundational and empirical observations that allow us to see clearly! Thanks.
    • VB
      Vincent B.
      28 May 2020 @ 10:31
      As long as the content is good, I couldn't care what he was wearing ;)
  • RB
    Ricardo B.
    27 May 2020 @ 22:06
    The clarity of Richard following Central Banks actions and philosophy is amazing. In my preference, who ever hosts interviews like this, should choose simple short questions and let the answers flow... but, even though, I enjoyed the interview very much.
  • DM
    Douglas M.
    27 May 2020 @ 01:02
    Prof. Werner's comment on conspiracies at around 57min was perfect. It takes a strong person to hold on to those conclusions as the NPC's will scream "conspiracy theorist!" as loudly as they can. An many of them will have large megaphones.
    • LS
      Lemony S.
      27 May 2020 @ 19:47
      Conspiracy facts. I have been harping on RV for months about the data regarding the absolutely unnecessary and insignificant (from a medical point of view) shut down. The data has been in and for anyone paying attention, the conclusion is clear --- this has been the most disastrous policy ever perpetrated on the global population.
  • SB
    Stewart B.
    27 May 2020 @ 17:12
    If banks could only lend for productive purposes that would be great, but unfortunately it is completely impractical and every step of the way the system would be gamed. Consider if we wanted to force lending for property development but not oil drilling. Large companies can simply shuffle round debt and equity internally within their projects and infrastructure to make it look like the loan goes into the area the bank wants it to be in. Also, it would also create an environment where a company may borrow from a bank, but designate it's own equity to the project, then lend the money to another entity for an 'undesireable' purpose.
    • LS
      Lemony S.
      27 May 2020 @ 19:44
      There is a bit of a paradox in the economic gains from credit/monetary base creation, in that it can be a good thing gone too far. Werner seems quite sure it can be managed, though. Great interview, see above.
  • PK
    Philipp K.
    27 May 2020 @ 17:12
    Wish this was longer..... much longer.
  • RS
    Ravin S.
    27 May 2020 @ 09:09
    I have a question toward the idea of CB could buy unlimited bad debt from banks. I agree that CB of developed countries can do that. However in case of developing countries, can they actully bail everything out via CB?? If developing countries do that, how can local currency could survive without causing hyperinflation because of the lack of reserve fund?
  • RS
    Ravin S.
    27 May 2020 @ 08:56
    I am super interested in the subject of creating hyperinflation. Prof. Werner said German CB in that period choosed to go for hyperinflation. This point is very intrigued. Please bring him back.
  • CW
    CC W.
    27 May 2020 @ 06:21
    We need Prof. Werner to do another hour segment on what he wants to talk about. There were some points that were cut off.
  • CR
    Cory R.
    27 May 2020 @ 01:57
    Prof. Werner says he is starting banks in England. I would like to get in somehow on this project. How exciting that we have this guy Werner, a master theoretician as well as an activist businessman. So excited to see his project succeed and catch fire world wide.
  • zp
    zubin p.
    27 May 2020 @ 01:39
    Uhh I want to hear the conspiracy......
  • DM
    Derek M.
    27 May 2020 @ 00:44
    That was one of the best and most insightful economic discussions I have ever seen. Bravo, and I think its just the tip of the iceberg, its like pulling on a thread this one. Well done.
  • rb
    rui b.
    26 May 2020 @ 22:58
    really liked this interview.
    • rb
      rui b.
      26 May 2020 @ 22:59
      need a second part where Richard can answer some things which were cut short +- when Hugh first started talking about time contraints
  • SF
    Scott F.
    26 May 2020 @ 00:46
    I’m at odds here. Obviously two smart men talking in depth about a complicated topic. It was very insightful and convincing. Yet the coronavirus conspiracy angle makes me question their judgement- and then the validity of their other points.
    • AS
      Adnan S.
      26 May 2020 @ 08:29
      Whether COVID is manufactured or real I think the uber point is that under the cover of COVID we are witnessing year another multi trillion dollar heist (aka QE infinity) and the further re-distribution of wealth to the 0,01%
    • NI
      Nate I.
      26 May 2020 @ 21:17
      If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. -Milton Friedman IMO, the COVID response was based on ignorance and incompetence versus conspiracy. That's why we must be vigilant about our rights. The government usually gets things wrong and being vigilant about freedom is the best way to minimize the consequences. Markets usually know best.
  • NI
    Nate I.
    26 May 2020 @ 21:10
    That was a great interview Hugh. When you were talking about negative rates on reserves being used to encourage lending and Professor Werner said that wouldn't work, I would have liked to get to the bottom of that. Seems like it would make at least some lending more desirable although I do concede the point about hurting the banks profits.
  • MP
    Michael P.
    26 May 2020 @ 07:27
    The discussion would have been better to distinguish between required reserves and excess reserves and implication for credit creation. Why were excess reserves so high and encouraged by the Fed?
    • MR
      Michael R.
      26 May 2020 @ 19:17
      Not only were the excess reserves encouraged the big banks got paid interest on them which seems disturbingly perverse. Create the reserves and then pay the banks to keep those high reserve balances? That is a great follow up question that hopefully Dr. Werner can enlighten us on as if excess reserves are say 3T then even 10bps on that gives them 3B in free and clearn profits for taking no risk and not making loans or buying assets.
  • AH
    Ahmed H.
    26 May 2020 @ 19:14
    Can we have Richard back so he can explain why domestic credit growth doesn't affect exchange rate with out him being interrupted in the middle.
  • DK
    Dimitar K.
    22 May 2020 @ 22:28
    this should be free on youtube! i mean cmon! Everybody in europe should watch this interview! WOW! Thank you Real Vision for this Interview
    • WM
      Will M.
      26 May 2020 @ 14:36
      Not sure they would think RV had great interviewers if they watched this, not sure they would even understand it.
  • AP
    Antonio P.
    22 May 2020 @ 19:12
    too long... and, yes, Hugh interrupted too much...
    • MC
      Melvin C.
      22 May 2020 @ 19:29
      if it's too long for you, make two episodes out of it! Or listen to it during your commute (from your bedroom to your living room) I found it extremly interesting, it's the third time I listen to both Hugh and Richard (separately), and it was great to listen in on their conversation!
    • OP
      Ovi P.
      22 May 2020 @ 23:55
      Agree with Melvin. Usually I hate when clueless media people interview experts in various fileds, but this wasn't the case here IMO! It seemed to me Hugh genuinely wanted to make sure he understood where Richard was coming from and he had very good points. On a second note, how refreshing is it to see someone not really give a sh*t of what people think and really just trying to understand things? You know you've made it when you can just be like Hugh!!!wow, just wow!!!!
    • WM
      Will M.
      26 May 2020 @ 14:35
      Ovi, not sure that Eclectica having failed signifies you have made it? HH certainly made a lot of money though so I guess that means he "made it"?
  • IH
    Igors H.
    22 May 2020 @ 17:17
    Jeff Snider interviewing Prof. Werner would be incredible.
    • DK
      Daniel K.
      22 May 2020 @ 17:36
      I second this, great idea.
    • CR
      Christopher R.
      22 May 2020 @ 18:27
    • CL
      Charles L.
      22 May 2020 @ 21:57
      To the RVTV, Igors' suggestion would be fantastic. Please consider it. Seems pretty clear Prof. Werner may have found a place to speak up freely? Hope RV can provide that for him.
    • CL
      Chuck L.
      23 May 2020 @ 00:00
      Great idea!
    • MS
      Matt S.
      24 May 2020 @ 05:08
      no no no.. terrible idea. Richard deserves Raoul or Grant or Ed or Greene.
    • WM
      Will M.
      26 May 2020 @ 14:31
      Snider, Raoul or Mike Green would all do a great interview
  • JA
    Jonathan A.
    22 May 2020 @ 15:44
    Professor Werner is brilliant. It would be great for RV to have him back ASAP, maybe with Raoul interviewing.
    • WM
      Will M.
      26 May 2020 @ 14:28
      Raoul or Mike Green yes for sure.
  • js
    john s.
    22 May 2020 @ 13:42
    Can't wait for the transcript so see how they account for two people talking at once.... :) HH cracks me up, he gets so excited can't help himself. Would love to run into him @ St.Bart's
    • WM
      Will M.
      26 May 2020 @ 14:24
      I dont see many professionals getting that excited....
  • IP
    IDA P.
    22 May 2020 @ 13:06
    More power to listening, less power to interrupting
    • IP
      IDA P.
      22 May 2020 @ 13:10
      Maybe that was mean, but this was really frustrating.
    • SS
      Shanthi S.
      22 May 2020 @ 22:54
    • WM
      Will M.
      26 May 2020 @ 14:23
  • SS
    S S.
    22 May 2020 @ 12:41
    This is a real contender for interview of the year 2020 on Real Vision. Hugh was great, but we have to remember he is not an experienced interviewer and this was his first time. Pretty good for a first timer. Would love for Raoul to interview Richard Werner next time as I know he doesn't agree with him entirely on his findings.
    • ef
      eric f.
      22 May 2020 @ 16:31
      Or Mike Green
    • SS
      Shanthi S.
      22 May 2020 @ 22:57
      Ooh! Great idea. Mike Green would be great! They’d really get into the weeds, in a good way.
    • SB
      Stephen B.
      23 May 2020 @ 16:43
      Yes, Mike Green has an extraordinary intellectual capacity. Properly prepared (having previously read Werners books), his interview would potentially be historic.
    • WM
      Will M.
      26 May 2020 @ 14:20
      Mike Green is a superb interviewer approaching the stature of Grant Williams
  • TT
    Thomas T.
    23 May 2020 @ 15:28
    Hugh hendry is not fit to make interviews. Whenever someone is saying something interesting he cuts their reasoning. It is very annoying. He wants too much tô show himself off
    • RD
      Ruediger D.
      23 May 2020 @ 15:46
      This is exactly what I felt. The interviewer likes to hear himself talking and wants to show to the world that he's the most brilliant brain from all. Thus my most urgent question after having seen the filem remained ananswered altthough Mr. Werner asked it himself becaue the interviewer missed it. But instead he interrupted him and changed the subject. At one point he even called him a conspirancy submitting subject what made me quite ashamed.
    • DL
      Dan L.
      23 May 2020 @ 18:47
      I had no illusions that Hugh would behave like a conventional interviewer and I was not disappointed in the least. Great interview all around, especially for the fact that it’s level of enthusiasm remained undisturbed by the intrusion of conventional norms.
    • ds
      david s.
      23 May 2020 @ 21:02
      so true
    • BC
      Burton C.
      25 May 2020 @ 22:25
      I miss Grant Williams
    • TK
      Travis K.
      26 May 2020 @ 13:12
      Strongly disagree with this. Hugh's style may come off as slightly frenetic, but in the end he did a great job focusing in on some really specific issues here even when tantalizing side topics (relative value of currencies, for example) seemed tempting. He's got a more challenge-centric conversational style than most (what else would you expect from a Hedge fund manager, no less this specific one!) and seems to favor pushiness over politeness, but... well I for one simply can't get enough of it.
  • HR
    Humberto R.
    25 May 2020 @ 17:11
    Can anyone explain what has been the point of stopping the world economies for a death rate of .06% (overall world numbers and overall u.s. numbers) when the seasonal flu death world rate per year is .1%? The data and the headlines are not squaring. I know many people knew this early on. I'm relatively late to come around to this, but nonetheless I'm here now. WTF have we done? Who is benefiting from a 20% unemployment rate, massive money injections to corporates, shadow banks, hedge funds and the general population (mmt light)? What is going on here?
    • JA
      John A.
      25 May 2020 @ 22:24
      People miss the point by looking at the death rate. It is the infection's spread that is the real danger. Let's assume a 3 R0 (r naught) and a .06% death rate. If you do nothing, and this virus doubles every 3 days if left to it's own devices, it would take approx one year to run through the population of the United States. At the peak, over 18,000 people would be dying a day. Something like 1.2 million people would die in the united states over that year. That is just covid related. Not counting the secondary deaths related to people who need care but can't get it because hospitals have turned into triage centers. At its peak, you would have something like 300,000 hospitalizations a day. People who don't have covid who also need medical care would suffer too, being counted as "excess deaths" indirectly related to covid. As the hospital system becomes overwhelmed, you are going to see that .06% death rate spike because people who could normally be helped won't get the help they need. Both covid and non-covid death statistics. Play with the model yourself and see the results: And .06% of 7 billion people is still 420 million people.
    • JD
      Justin D.
      26 May 2020 @ 04:53
      0.06% of 7 billion = 7.2 million. Just thought that should be mentioned. Locked downs have definitely helped here.
    • JD
      Justin D.
      26 May 2020 @ 04:55
      4.2 million* xD
  • SS
    Sushant S.
    26 May 2020 @ 04:44
    Werner was explaining about international banking and how credit is generated in developing countries and he got interrupted for absolutely nor reason.
  • LS
    Luke S.
    26 May 2020 @ 02:34
    Just got good at the end. We need part 2!
  • ED
    Edward D.
    25 May 2020 @ 22:21
    Does anyone have access to Werner’s recent academic paper, discussing the relationship between rates and growth?
    • DT
      Don T.
      26 May 2020 @ 00:14
  • AG
    Alan G.
    25 May 2020 @ 22:59
    Great interview. Dr Werner needs another interview going through steps of argument sequentially. Nevertheless, the conversation with Hugh sweating was fantastic. I loved the idea of separating productive bank lending (building a business) from consumption based lending (buying a house). Not sure how you maintain adequate credit standards but that has always been bank cycle
  • bs
    bernard s.
    24 May 2020 @ 13:18
    Huge keeps interrupting Werner! As a result some very important points were left unexplained, very annoying! Some wasted opportunities
    • VA
      Victoria A.
      24 May 2020 @ 14:39
      Yes - unfortunately I must agree!
    • AM
      Asim M.
      24 May 2020 @ 21:27
      I agree. Hugh should have stayed more silent
    • PF
      Pedro F.
      25 May 2020 @ 22:01
      I don't agree; Hugh Hendry's "interruptions" were all perfectly fitting and justified, making the conversation lively; they were both (RW and HH) stellar. This said, Prof. Werner should get back to RV, for other interviews. These will be different and interesting and even important, but they won't be better.
  • BC
    Burton C.
    25 May 2020 @ 21:56
    Was this an interview of Richard or just a running dialog of Hughs random thoughts while using Richard as the prop?
  • jg
    john g.
    25 May 2020 @ 16:55
    A thought from somebody who has no business complaining because this content is free. I find Hugh distracting. First I think he is too interested in self-promotion. Second, his comments seem surface level and designed to be "outrageous" (let's also consider he's a lot deeper than I am and I'm floating on the surface). And third, this could have been a more valuable interview with Werner with another moderator.
    • BC
      Burton C.
      25 May 2020 @ 21:52
      You nailed it!
  • MB
    Matthias B.
    25 May 2020 @ 20:19
    Mr Werner is a very candid and brilliant independent thinker. Pls get him back and I would suggest a different interview partner for him - Dr. Lacy Hunt.
    • BC
      Burton C.
      25 May 2020 @ 21:44
      Right Hugh just had to keep interrupting him. I like Hugh but he is not a very good interviewer. Grant Williams could have done a great job
  • EB
    Erik B.
    25 May 2020 @ 20:51
    Let us hear Richard again without the surfer-guy
  • AS
    Adnan S.
    25 May 2020 @ 15:38
    It was insightful but Hugh didn't allow Richard to espouse his views on how the Fed has followed the BOJ / Central Bank playbook in creating yet another bubble but will the Fed now deviate from the playbook / historical ideology and actually allow this bubble to expand and if so WHY? If the Fed is developing a new ideology what is it, for what purpose and who benefits? Richard has the answers, please get him back and lets hear him out.
    • MT
      Michael T.
      25 May 2020 @ 20:17
      Yeah, also kind of annoyed especially when Werner got cut off as he was about to talk about FX market. Hugh is great though, we need a part 2 and 3 definitely.
  • EH
    Eric H.
    25 May 2020 @ 19:56
    Agree with him or not, but anybody that doesn’t love Hugh doesn’t get it.
  • RP
    Raoul P. | Founder
    23 May 2020 @ 21:35
    Bravo! The fascinating thing for me was the discussion around Digital Central Bank Currencies creating an outcome where perhaps banks are not needed as they can not create this money. Im not sure this holds true because of the derivatives markets. However, its something that might be attractive to central banks in Japan and EU who have to nationalise their banking system. Something I need to think about further. Maybe nationalising the banks create the ability to target lend and that helps create a solution. But without a new currency system, it would just lead to currency collapse in the end. Hmmm... I LOVED the free form conversation that wasn't an interview in the traditional sense but a real conversation with lightbulb comments, emotions, disagreements etc. Truly immersive and engaging... Real Vision Magic. Thank you gentleman. This was special and I didn't agree with huge chunks of it but it broadened my thinking...
    • MS
      Matt S.
      24 May 2020 @ 03:41
      "who have to nationalise their banking system" - it's not "attractive" to central banks... it's their entire hidden purpose from their inception! I honestly think the 'hidden hand' is so well hidden that even the chairmen of the Fed don't understand the true agenda at work here... this all goes waaaaaaaaaaaaaaaaaaay beyond basic national economics.
    • HK
      Hyosoong K.
      24 May 2020 @ 07:09
      Please have Prof Werner on for more future interviews. His views are quite unique yet make logical sense
    • JA
      Jonathan A.
      24 May 2020 @ 12:29
      Raoul you need to interview Richard Werner again where you can pose your own thoughts to him.
    • CB
      Carlos B.
      24 May 2020 @ 20:03
      It is not in central banks interest to get rid of the financial system. Central banks can not replace private sector credit analysis and efficient allocation. CBDC holdings with central banks would be penalized to desincentivise them.
    • CB
      Carlos B.
      24 May 2020 @ 20:03
      CBDC holdings above certain threshold will be possibly penalized
    • DL
      David L.
      24 May 2020 @ 20:51
      Then why not interview Dr. Werner yourself and expand on the areas that might be contentious? I'm sure the exchange would be fascinating.
    • MS
      Michiel S.
      24 May 2020 @ 23:49
      Broadening my thinking also and indeed as having to have my bank account with the ECB honestly never crossed my mind!
    • DF
      David F.
      25 May 2020 @ 18:40
      Raoul: given you are the thought leader here it would be helpful to know what you didn't agree with and why. Perhaps in one of your "ask me anything" sessions? Please put it on the agenda.
  • JS
    24 May 2020 @ 21:55
    As an introductory interview of Richard Werner, it wasn't too bad, all things considered... But I'd strongly suggest that Roger Hirst would do the part 2 with Mr. Werner.
    • MI
      Marc I.
      25 May 2020 @ 02:28
      Or Danielle DiMartino Booth (with Professor Werner)
    • DF
      David F.
      25 May 2020 @ 18:35
      or Rauol.
  • NP
    Nick P.
    25 May 2020 @ 11:36
    I don't get all the hate on Hugh. Hugh promoted Prof Werner and got him onto RV. This first interview is round 1 of many interviews. Prof Werner is going to be known globally very soon. Great Job Hugh, your work is appreciated.
    • DF
      David F.
      25 May 2020 @ 18:32
      It is not what he knows that is in question. It is his style.
  • IM
    Ilias M.
    25 May 2020 @ 13:09
    Please bring Dr Werner back and let him expand on his thoughts without interruptions even if it ends up being a 4hr interview!
    • DF
      David F.
      25 May 2020 @ 18:29
      I agree! I found this frustrating. I have read " The Princes of the Yen" and was shocked by it. For days I was numb thinking --" what if this is true." There are people on this earth who are so arrogant that they can create crises like The Great Recession of 2008. OMG. I very much wanted to hear from Dr. Werner. But, the interview wasn't structured to learn what Dr. Werner thinks but was complicated by Mr. Hendry throwing in his own arguments and bias. Many interruptions. So, yes, I too would like a do-over to learn what Mr. Werner knows and thinks.
  • JD
    John D.
    25 May 2020 @ 15:17
    While I enjoyed the entire conversation, I found the last 20 minutes fascinating. Great piece.
  • IH
    Iain H.
    25 May 2020 @ 14:01
    That was a marvelous interview, Hugh's push back and scaly wag character really added to the entertainment while Richard gave me a lesson in banking that was fun.
  • AG
    Austin G.
    25 May 2020 @ 13:54
    This is amazing.
  • DV
    Dimitri V.
    25 May 2020 @ 13:27
    wow this was amazing great piece
  • EB
    Emmanuel B.
    25 May 2020 @ 12:02
    i learned so much during this interview, thank you both Hugh and Werner!
  • MP
    Michael P.
    25 May 2020 @ 11:20
    I like Hugh, but Real Vision, please have bring Richard back on again with another interviewer that will just let Richard talk. Hugh kept cutting him off and trying to sound smart explaining everything (which he is) but just let the man talk and finish his train of thought. He obviously has a lot more to say and Central Bank agenda is right up Real Vision viewers alley, so please have Grant or a professional interviewer interview him (or no interviewer visible to us like lots of your interviews which are great). Cheers, Michael
  • PC
    Paul C.
    25 May 2020 @ 11:07
    It’s like watching two men having a chat over a few beers, sat in the corner of the pub. I find Hugh and his style both irritating and wonderful. He cuts is quite a lot, and yes that can be frustrating when Richard is half way through explaining his point. The upside to that though is he questions points as they occur. I find that quite refreshing. I can understand why others find him a bit marmite. RW has forgotten more than i will EVER know. Love his knowledge. Un-paralleled? Awesome interview.
  • RK
    Roger K.
    25 May 2020 @ 10:29
    Guest's knowledge is on another level, Wish If we could continuously listen to him for hours! - Thanks!
  • IM
    Ilias M.
    25 May 2020 @ 09:42
    The only interview i gave thumbs even before pushing the play button!
  • TT
    Thomas T.
    24 May 2020 @ 02:19
    I think Hugh hendry is bonkers. I cannot imagine him running a hedge fund. No Wonder he is isolated in an Island. Good riddance
    • MS
      Matt S.
      24 May 2020 @ 03:30
      It's a paradise island and you will never be able to afford to live there most likely... heh.
    • sm
      stuart m.
      24 May 2020 @ 09:58
      In, or on an island?
    • HC
      Hakan C.
      24 May 2020 @ 10:29
      So what? Does finance need another guy in suit who is polished up? We need independent thinkers like Hendry in RV who calls it out like he sees it. Judge him on the originality of his thoughts, not how he looks
    • JB
      James B.
      25 May 2020 @ 07:37
      I bet you're fun at parties...
  • GS
    Gregorius S.
    24 May 2020 @ 04:27
    If I have this right, Richard Werner thinks that U.S. QE was relatively more successful because this took the bad assets from the banks and cleaned their balance sheets. Isn't this idea very similar to Richard Koo's work of balance sheet recessions where if balance sheets aren't clean credit creation can't occur?
    • DS
      David S.
      25 May 2020 @ 06:39
      In Japan Mr. Koo recognized that the companies were paying down loan obligations instead of investing in GDP- producing investments. Mr. Koo's research is in corporation debt reduction not QE to bail out banks and hedge funds. Professor Werner is expanding the number of corporate uses of funds that do not increase the GDP. A good example of this is the stock buybacks to increase the price of the stock and the wealth of the executives of the corporation. This is a simple form of financial engineering. A GDP productive investment would be building a dam, manufacturing washing machines, etc. It would be nice to have Professor Werner back to discuss a list of corporate capital being use that do not increase national GDP. He further believes that restrictions could be put on QE to stop non-GDP uses of funds like stock buybacks. Anything would help, but big banks and hedge fund types will get around it somehow. In like manner to the corporations getting small business bailout funds instead of small business. The cards are stacked. DLS
  • CS
    Chetan S.
    25 May 2020 @ 06:39
    This interview though digs deep into the heart of credit creation and how it has been sold to the public across the world via narratives. Undoubtedly, one of the most fascinating (and probably the best) conversation in the history of RV.
  • AC
    Andrew C.
    25 May 2020 @ 04:46
    @Professor Richard Werner I watched Princes of the Yen; I thought that either there or here Professor Werner could have expanded on what happened when Malaysia refused to bow down to the IMF in the late-90s. This act of defiance was mentioned in passing, but there must be some lessons there, as the experiment of compliance (Thailand) versus non-compliance (Malaysia) has actually played out for more than 20years now.
  • DS
    David S.
    25 May 2020 @ 04:30
    I wish there were a way to force more productive investment with all the QE. Even before the Coronavirus, there were not a lot GDP productive investments. The banks are in trouble with the zero bound Fed rates, so they lend to hedge funds for 100 time leveraging. I hope the banks have plenty of security on these loans in case the market tanks. I do not know if there is any way around all the financial engineering without a market collapse. DLS
  • CH
    Corey H.
    25 May 2020 @ 03:46
    excellent interview, would be great to have him back.
  • CM
    Chris M.
    25 May 2020 @ 00:22
    This is one of the best interviews I've seen on RV. Going to read this book - but it's not so easy to find! Would love a part 2.
  • RL
    Ryan L.
    24 May 2020 @ 23:36
    One of the best!!! Mind-blowing.
  • SR
    Siddharth R.
    24 May 2020 @ 23:30
    What a fabulous interview! This is exactly what I come here for. I wouldn't have minded a longer interview, please do a follow up if possible.
  • BC
    Barry C.
    22 May 2020 @ 07:50
    The most important point made in this video comes in the last 5 minutes when Richard Werner says there is no empirical proof lower interest rates increase economic growth or higher rates dampen economic growth...Werner's studies suggest interest rates and growth are positively correlated....causality runs from growth to interest rates, not the other way around. Banks need a positive yield curve to be healthy, long term interest rates need to be higher than short term interest rates. It is not the price of money that matters but the quantity of credit creation. As in many things in life, reality is counter-intuitive.
    • SS
      Shanthi S.
      22 May 2020 @ 09:00
      Yes! Thank you for typing it out!! This was the most valuable point. Have I heard Brent Johnson make this very point on rates also?
    • DD
      Dmitry D.
      22 May 2020 @ 09:14
      Yes, Richard has a number of papers on this, highly recommended (e.g. "Reconsidering Monetary Policy"). I would disagree that it is "counter-intuitive" though because "intuition" in this case is based on the "classical" economics models taught at universities rather than some sort of innate logic. If you think about the assumptions (i.e. amount of credit is supply-constrained, rather than demand driven - after all, lending at 0.1% or even 1% is not such an enticing prospect for the lender) carefully and also consider that higher interest rates are inherently supportive of productive lending (unless there are no consequences for default, borrowers would think carefully about being able to service the debt) and hurt unproductive lending (which consumption clearly becomes after a certain point), it is the low interest rate mechanism that becomes counter-intuitive. As Richard points out in his paper, this was actually observed by Milton Friedman in the 60s, but dogmas can be particularly powerful in the academia - it takes an extremely strong personality to admit that one has been deeply wrong about something they are supposedly an expert in for most of their career/life.
    • LK
      Lauri K.
      22 May 2020 @ 12:04
      Absolutely. The theories totally omit the time-value of money. That's why the premise of deflation being bad is also partly wrong. When you approach the situation from the micro or behavioural perspective, it is logical that there is no causation from interest rate policy to economical growth.
    • PB
      Paul B.
      24 May 2020 @ 22:24
      Basically no growth, no growth in rates.
  • SZ
    SALEH Z.
    22 May 2020 @ 06:53
    This should have been better... Hugh was the wrong person for this discussion. Werner did a podcast with Bloomberg where he spoke for about 90% of the time. This discussion was 50-50 at best. And while constantly interrupting him, HH is talking about nonsensical hypotheticals like "what if BOJ kept the taps on in 1990". And just as Werner is explaining his capital flow forex model for the Yen in the 90s he gets interrupted. Incredibly irritating. Still a thumbs up but missed opportunity. HH was the wrong person for this. And his persistence on referring to Werner as conspiracy theorist was just bizarre. Frankly I dont know whats up with HH these days...sounding very erratic. There is no flow or logic to his thought process - irrational exuberance at best.
    • JO
      Jayden O.
      22 May 2020 @ 07:20
      Completely agree. Was so frustrated with those interruptions. I learned a lot from this still, but will be even more if Werner had more chance talking. Will lookup Werner's recent interviews from other sources later...
    • DG
      Dobri G.
      22 May 2020 @ 08:34
      Completely agreed! Hugh should have left the professor explain to the fullest his research. I think in such sessions 70-80% talking time should be given to the interviewee. Ed would've done a better job with this interview
    • TN
      Tim N.
      22 May 2020 @ 09:32
      Disagree- I think HH challenging helped me make sense of the the situation. The Americans who have military bases in Japan were getting concerned about Japan's success in manufacturing and subsequent trade imbalance affecting US manufacturers. The Japanese politicians and the BoJ wanted to create a consumer economy in Japan to redress balance of trade. They thought the wealth effect ie pumping up asset prices would achieve this aim. But then they chickened out when they realised they had gone too far. This caused the crash. The Germans are now facing the same scenario with the ECB.
    • DC
      David C.
      22 May 2020 @ 10:56
      Disagree - Richard had lots to share in a wide range of topics, Hugh Henry sort of played the balancer role to pull him back, so that his views were clear.
    • SS
      S S.
      22 May 2020 @ 11:29
      Interviewing is a skill. Its not easy. I think Hugh did a great job considering this was one of his first.
    • ss
      steven s.
      22 May 2020 @ 15:20
      I think we can all agree to bring Werner back for more please.
    • NH
      Nikhil H.
      22 May 2020 @ 17:44
      Rather than bashing Hugh, we must be grateful that it was his keen interest in the book and his obvious excitement about getting to speak with Werner on these topics, that brought Werner on the RV show. This introduction to Werner that Hugh has given us should provide a platform for a more formal interviews with Werner going forward with the rest of the RV team. Thanks HH
    • NN
      Nikhil N.
      22 May 2020 @ 18:11
      I think it would be very interesting to see Richard give a consolidated version of his university lectures on RV covering in depth some of the topics discussed here. The goal being for the viewer to be able to turn on their computer and to see the world in the same light Richard sees it. Some topics could include: 1. Diving into the difference between the different parts of the monetary base (currency in circulation vs total reserve balances maintained). I think this was the question HH was trying to ask Richard (14:10 remaining) but the answer was caught short. 2. Breaking down time series of credit volumes both in aggregate and individually from the Federal Reserve H8 release vs growth, rates, inflation, fx, etc... 3. He stated that he follows 30 some central banks. How does he measure them? What is he looking for? 4. As he stated he has started many community banks which implies (at least in my opinion) he knows a thing or two about how banks work and bank accounting. Perhaps he could crack open a few bank financial statements which contain information that is not intuitive and explain what he sees. Overall, this was a great philosophical introduction to many ideas, and (at least in my opinion) content diving deeper into those ideas would be truly amazing. Thank you Raoul, HH, Richard, and the RV team for putting this together.
    • TM
      Tom M.
      23 May 2020 @ 06:07
      He is a conspiracy theorist. Look at Werner's Twitter, he's a hardcore antivaxxer.
    • MS
      Matt S.
      24 May 2020 @ 06:13
      Tom M - RV is no place for simpletons who use the phrase "conspiracy theorist". There is a LOT of evidence that modern vaccines have 100% caused autism in children. Wakey wakey!
    • mB
      marc B.
      24 May 2020 @ 21:39
      I liked how hugh challenged certain thoughts and added from his thought. His pushback is something that enhances the conversation & Werner delivered on the pushback. You could tell there were two passionate professionals having a conversation. I like the 70/30 dialogue. Remember rv interviewers have a vast range of wisdom where the guest is a specialist in one realm. That’s the brilliance of the conversation. The cognitive dissonance was fun to watch. And hh was rehashing a lot of the points. Great for us listeners to hear key points 2/3 times. Lastly, I do like hearing conspiracies. These guest are specialist. If they have a theory it’s more likely right. Governments are sneaky. & proven wrong historically. Werner was amazing. Hh is awesome.
    • PB
      Paul B.
      24 May 2020 @ 22:21
      So basically you wanted a monolog. Hugh Hendry studied Japan and knew Werner's work. Also can you really capture all of someone's knowledge in one interview on a topic complex as central banking. Read the book instead.
  • SN
    Sean N.
    24 May 2020 @ 22:09
    This conversation definitely struck a chord with viewers.. so many comments!. I loved the energy in this conversation and Hugh’s vibrant inquisitiveness... would also love to have another round with Werner and get more structured overview of his key insights on central banks and their implications for the future
  • PR
    Preben R.
    24 May 2020 @ 20:22
    Great interview. Can anyone (RV?) point us in the direction of where the paper RW discusses the causality/correlation between interest rates and growth can be found? (Locked into a vault somewhere never to be seen again by the sound of it ;-) )
    • FB
      Frank B.
      24 May 2020 @ 22:08
      Direct link is in his pinned tweet.
  • ea
    edwin a.
    24 May 2020 @ 21:47
    A really interesting discussion -- sometimes with the two talking past each other -- but it eventually gets at an interesting issue that Raoul has mentioned: in a financial world where CBs are taking over more and more, and entire asset classes have become increasingly untethered from economic fundamentals (equities for some time, and now treasuries as yields go to zero) there is a place for economic thinking focused more on early stage, generative aspects of the economy, including creation of small businesses along with more small banks, as well as focusing lending toward real economic activity rather than simply asset purchases.
    • ea
      edwin a.
      24 May 2020 @ 22:04
      a lot of overlap also with Jeff Snider's focus / ideas...
  • FB
    Frank B.
    24 May 2020 @ 22:02
    I wanna read everything Richard Werner has written.
  • PB
    Paul B.
    24 May 2020 @ 16:16
    39:00 in the video, mentions banks and hedge funds using Central Bank money creation to buy assets, instead of existing money, which has happened the last 12 years with funds like Blackrock etc buying residential housing.
    • PB
      Paul B.
      24 May 2020 @ 21:59
      Sorry correction to my statement, Fed broker dealers which are banks are buying stocks, which forced hedge funds into assets like corporate bonds and real estate, to try to outperform.
  • DS
    David S.
    24 May 2020 @ 21:54
    Net, net we are all in trouble and no one can put the money-printing genie back in the bottle. The Fed is one step ahead of Euroland in that they only deal with one legislature, one nation. It is apparent from this video that there are no political/economic solutions - even difficult ones. Only Monday night quarterbacking. Both brilliant, but no solutions that are workable. Without a reasonable hurdle rate capitalism cannot function. The zero bound interest rates policy is barren. Stay liquid, buy hard assets cheap and Gold. DLS
  • MG
    Malcolm G.
    24 May 2020 @ 20:59
    Wow, so many thoughts "going off in my head right now" - to steal from Hugh Hendry. I need a long walk.... I hope to post some thoughts once processed, BUT a huge thanks to both Richard and Hugh, both entertaining and intellectually challenging!
  • MJ
    Michael J.
    24 May 2020 @ 20:34
    I wouldn’t have minded the interview being longer. It would be great if RV can have a follow up interview with Richard. One topic of interest may be to have him expand further on the different scenarios he expects for the future.
  • PB
    Paolo B.
    24 May 2020 @ 20:23
    Fascinating! I would definitely love a part II with higher focus on possible future outcomes.