More Power To The Princes

Published on
May 22nd, 2020
Duration
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’s 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.

Comments

Transcript

  • 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.
  • 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 !
  • zp
    zubin p.
    27 May 2020 @ 01:39
    Uhh I want to hear the conspiracy......
  • 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.
  • 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
      ABSOLUTELY!!!!!!
    • 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....
  • II
    IDA I.
    22 May 2020 @ 13:06
    More power to listening, less power to interrupting
    • II
      IDA I.
      22 May 2020 @ 13:10
      Maybe that was mean, but this was really frustrating.
    • SS
      Shanthi S.
      22 May 2020 @ 22:54
      Agreed.
    • WM
      Will M.
      26 May 2020 @ 14:23
      Agreed
  • SS
    Steve 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
  • 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.
  • 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: https://gabgoh.github.io/COVID/index.html 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!
  • 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.
  • 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
      https://reader.elsevier.com/reader/sd/pii/S0921800916307510?token=F52102E5AEA9262005795E353AF1F208FCC5B7D97C5B2E0321D7C2EBF75EC44B02C2D630C9E7A9E59A211E8520518AE0
  • 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.
    • JK
      John 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
    JEVGENI S.
    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
      Marc4 I.
      25 May 2020 @ 02:28
      Or Danielle DiMartino Booth (with Professor Werner)
    • DF
      David F.
      25 May 2020 @ 18:35
      or Rauol.
  • TT
    Tokyo T.
    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.
  • 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
  • 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.
  • 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.
  • 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
      Steve 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.
  • AM
    Artur M.
    22 May 2020 @ 09:42
    Please join Richard Werner and Jeff Snider. Perfect match!
    • TT
      Tokyo T.
      22 May 2020 @ 11:10
      wow, that would be a classic.
    • DN
      D N.
      22 May 2020 @ 11:38
      Would round out the picture. Snider would fill in the gaps on how unproductive lending occurs through the wholesale financing channel.
    • SS
      Shanthi S.
      22 May 2020 @ 11:59
      Yes, was thinking the same.
    • PU
      Peter U.
      22 May 2020 @ 12:34
      the Thrilla in Manila would be Werver vs Lacy Hunt
    • JL
      James L.
      22 May 2020 @ 17:29
      This would be a far better conversation.
    • JE
      Jon E.
      24 May 2020 @ 20:22
      I think if Raoul & RV were to add the upvotes for Jeff Snider + Werner from multiple comment suggestions, there are well over 300. Please do this!
  • DG
    Dave G.
    24 May 2020 @ 20:20
    Just having a look to buy the second edition book. Its definitely not easy to find or buy. Maybe there is a conspiracy with trying not to enlighten the masses by keeping this book out of our hands. Anyway my take still is the fed reserve is evil and the only people who support what they are doing must be part of the 1% club. Wealth inequality has flourished under the fed.
  • TW
    Tim W.
    24 May 2020 @ 20:03
    More from professor werner please, I think he is up there with Michael Hudson and Steve Keen as one of the greatest economists of our time and one of the very few who understand the impact of credit on economic growth
  • AB
    Alex B.
    24 May 2020 @ 04:03
    What is wrong with hugh hendry? It looks like he just woke up after getting out of a sauna
    • JE
      Jon E.
      24 May 2020 @ 19:33
      I love this.. Hendry brings personality and a mind, who cares about the rest.
  • MO
    Marcin O.
    24 May 2020 @ 19:27
    What's the problem with 5G, in a sentence or two? Werner seems to not like it and I don't know why.
  • NH
    N H.
    24 May 2020 @ 17:55
    Does anyone know where to get the new hardcover version of the book that Richard showed at the beginning? I tried to find online but couldn't find it, and the old version is so expensive. Thanks!
    • MP
      Martin P.
      24 May 2020 @ 18:57
      try his website under "publications"...https://professorwerner.org/
  • 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
      Singapore
    • 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.
  • CW
    C W.
    24 May 2020 @ 13:19
    Great and stimulating conversation which leaves me with much to mull over. I am still skeptical about some of Prof. Werner's claims. For instance the discussion about reserves and whether it helps bank create credit. Yes I agree banks cannot lend out the reserves directly and do not control the total amount of reserves in the banking system. But as I understand it, reserves form a significant part of a typical bank's HQLA holding which is used to satisfy the liquidity coverage requirements imposed. If a bank does not have enough of these HQLA, they are unable to lend. So while an abundance of reserves does not directly push banks to lend, a lack of reserves will certainly cripple lending. I remember during last Sep's repo madness, I read that the uneven distribution of reserves was one of the reason causing some usual providers of liquidity to the repo market to hold back because they do not have the reserve to satisfy LCR requirement. The Fed's solution was to flood the market with reserves so that even with uneven distribution, lenders have the ability to lend. I am not sure how big a factor this is, or even of it is one. I will need to think about this more. And even if I end up remaining skeptical about some of his assertions (while agreeing with most), I appreciate the chance to hear different points of view from such a learned person. Thanks, RV
    • CP
      Curt P.
      24 May 2020 @ 14:55
      Many countries have Reserve Requirements of 0%. It's the Equity Capital Ratio that is the true regulatory bottleneck of lending - and in many case regulators will unofficially waive that.
    • DO
      Duncan O.
      24 May 2020 @ 18:47
      Richard Werner actually took out a loan and with the permission of the bank watched their accounting https://www.sciencedirect.com/science/article/pii/S1057521914001070 Its an amazing subject eh. Cheers D
  • LS
    LEON S.
    24 May 2020 @ 18:01
    Dear God, the best breakdown of the economic wheel of time ever
  • DM
    DAVID M.
    24 May 2020 @ 17:13
    Great discussion, among the best RV interviews. Looking forward to part II. ;)
  • NR
    Nelson R.
    24 May 2020 @ 16:20
    This will go down as the best RV interview/exchange of all time.
  • HB
    Hugo B.
    24 May 2020 @ 16:02
    Mind: blown. Please do this again. Great job you two.
  • TW
    Thomas W.
    24 May 2020 @ 15:28
    The best interview ever! Two very smart guys who talk in language we can understand.
  • AO
    Alex O.
    24 May 2020 @ 13:45
    Please do more of this pairing! This was top notch. Since Hugh brought up the princess of the yen book and documentary it is very fitting that he was able to interview. I actually really like Hugh’s style and read some of the other comments and I’m glad we are diverse enough to have differing opinions on this.
  • RM
    Robert M.
    24 May 2020 @ 13:35
    Hugh, I felt the same about Bernanke and the central bank as you until I heard Jerry Tuma of Cornerstone explain what you and Richard did in your last segment. Thank you for the depth and detail. And, I agree with the post (Peter J) that this video would help so many understand how important US central bank actions were to prevent severe economic conditions following the financial crisis of 2008 (depression ?).
  • RM
    Robert M.
    24 May 2020 @ 13:35
    Hugh, I felt the same about Bernanke and the central bank as you until I heard Jerry Tuma of Cornerstone explain what you and Richard did in your last segment. Thank you for the depth and detail. And, I agree with the post (Peter J) that this video would help so many understand how important US central bank actions were to prevent severe economic conditions following the financial crisis of 2008 (depression ?).
  • PJ
    Peter J.
    24 May 2020 @ 12:48
    If there is one video that RVTV should Make publicly available then its this one.
  • LH
    Luis H.
    24 May 2020 @ 11:52
    This is clearly one of my top 10 Real Vision pieces. This could go easily for five hours if Richard Werner could talk a bit more about all the interesting things that surfaced in this interview. He has deep knowledge about the things he talks and is a true professor, ie someone that knows how to pass the message. Thanks Hugh, thanks RV.
  • DO
    DIOGO O.
    24 May 2020 @ 11:24
    Professor Werner needs to come back! World changin ideias! AMAZING!
  • DT
    David T.
    24 May 2020 @ 10:37
    Richard Werner could be a great FED president. Few people understand insights of CBs and policy implications as he does. Hugh is not the best interviewer but, he did the job. Bring Richard Werner more times please.
  • Op
    Oren p.
    24 May 2020 @ 10:31
    I had to listen to this a few times to get the richness of insight but that’s also because Hugh made it very painful to follow. There is a technique to encourage, probe and make flow a discussion and it’s missing. Plus when complex topics are covered it would help the audience if we had more summaries and recaps to make sure key messages are extrapolated.
  • GM
    Gary M.
    24 May 2020 @ 10:12
    An excellent interview. I find Richard’s grasp of the banking system incredibly insightful and instructive. Thank you so much. Hugh, also a great effort, curious and unbiased. Love it. Keep it coming guys & girls. Gary M
  • SF
    Stephen F.
    24 May 2020 @ 09:30
    What was the name of that plan to restructure boj
  • SM
    Stefan M.
    22 May 2020 @ 07:09
    Great interview and I enjoyed it...even the special comments are listeners seem to be confused. No problem...this makes us being humans. There was one thing l think logic of Werner starts breaking down when looking into the future. He is so fixated about a large web of banks that are between the central banks and retail, institutions, corporates. In the new world that is getting formed, central banks will have their own cryptographic tokens but then the web of banks will be replaced by an even more diverse web of non-Bank companies (different banking licenses), Fintec (different licensed or none) and smart contracts (using the newly available blockchain technology)...way better and more crisis-resistant than the many banks still out there doing more of the same of the past. Would be interesting to hear Werners view...we shall forget today’s banks. They are pretty much all gone already.
    • MS
      Matt S.
      24 May 2020 @ 06:09
      Stefan Molyneux?!
  • BC
    Benjamin C.
    22 May 2020 @ 07:21
    Guys search on YT for Werner being interviewed on RT with other guest David Buik - absolutely incredible. This was a little more ragged and messy. He was able to convey his ideas far more clearly elsewhere - and that makes this interview less frustrating to follow! I get that there is no dress code in the modern world but put a fking t shirt on geez. This looks like a zoom call with your rehab doctor for a new prescription.
    • ML
      Michele L.
      22 May 2020 @ 08:19
      Totally agree. I'm normally irritated by comments on people's looks or clothing choices but in this case a comb and shower would not have gone amiss, if only out of basic respect to the interviewee. I get that being weird is part of HH's ethos but as the interviewer, it's very distracting so I switched to the audio for this one to better focus on the content and not the visuals.
    • TT
      Tokyo T.
      22 May 2020 @ 10:35
      I live on a tropical Island too. Nobody is going to dress up in a suit for a skype interview. Hugh is being Hugh. Good on him for being true to himself.
    • RA
      RAMI A.
      22 May 2020 @ 10:40
      Content over appearance any day of the week and Hugh has plenty of that. Also, Rockstars wear whatever they want ;)
    • TN
      Tim N.
      22 May 2020 @ 22:07
      Fascinating insights. https://www.youtube.com/watch?v=c8sN_hPHjgY Basically the City of London is a state within a state controlled by the large banks, which has its own unelected lobbyist in parliament (remembrancer). Even the Queen needs permission to enter the square mile. Werner's view is that banks' credit creation needs to be regulated (so called window guidance) so that they lend to productive enterprise, otherwise they are incentivised to lend to non-productive asset speculation which is beneficial for bank profits/political power but detrimental for society principally by creating asset bubbles and inequality.
    • MS
      Matt S.
      24 May 2020 @ 06:07
      Tokyo - shower, dry, clean linen shirt, hair combed back... not too much to ask, as a show of respect. (and fewer goats walking through the shot)
  • DB
    David B.
    22 May 2020 @ 09:17
    Everyone has to decide for themselves whether this is spreading conspiracy theory thinking or not. What he calls suppression could merely be academic peer review in social science,
    • DB
      David B.
      22 May 2020 @ 10:05
      Example of confirmation bias and even fact twisting: we are supposed to believe Lehman and Bear were punished by a grudge holding Fed for not contributing to the LTCM bailout. Reductionistic extreme. Also how is a book that sells 150k copies in a country with 126M people a “bestseller”? Too many stretches of truth here to regard the overall argument as credible.
    • MH
      Michael H.
      22 May 2020 @ 10:30
      They clearly stated that it was conspiracy-thinking. However, "Bestseller" books are determined by a variety of factors, including: 1. Periodical editors' choice and sponsorship considerations 2. Segment in which they sell in 3. Period in which they sell in Any book that sells six figures in a foreign country (in a translated language) may be extrapolated to have sold additional six figures in additional countries, including US sales. One could assume a royalty on a book that probably retailed for $50 could have netted the author millions of dollars.
    • MS
      Matt S.
      24 May 2020 @ 06:00
      You only need to sell over 10K books to get on the NY Times bestsellers list - why? Because no one in America reads books anymore.
  • PJ
    Peter J.
    22 May 2020 @ 10:02
    Really great discussion. Still amazes me how the world does not know how to manage “money” which is arguably the most important system in the world. As an engineer I find this hard to comprehend. RV please ask these guys back on a regular basis.
    • MS
      Matt S.
      24 May 2020 @ 05:56
      The CBs know EXACTLY what they are doing. Or rather... the hidden hand that controls all central banks does.
  • JL
    Joseph L.
    22 May 2020 @ 11:22
    Superlative interview: The best discussion on Real Vision yet. You could have allowed Hugh and Richard go on for 3-4 hours, or have them back regularly, and it would not be too much. Other recommended exchanges: 1) Richard Werner and Steve Keen 2) Richard Werner and Lacy Hunt 3) Richard Werner and Perry Mehrling (discussion of how this fits with the Eurodollar debt problems) Or better yet, just let Richard Werner lecture for a whole week. Make it a new Real Vision Special.
    • JL
      Joseph L.
      22 May 2020 @ 12:04
      Another potential pairing that would be interesting: Richard Werner and Michael Pettis -- debating/discussing the central banks strategies in shifting from production to consumption as part of a nation's economic evolution/development while being integrated into a global economy that requires constant adjustment with other national and regional economic powers. I'm not sure if Werner and Pettis agree/disagree about the role of central banks and the effectiveness of the policies, but I know they're touching on similar territory. It would be interesting to be a fly on the wall just to listen as they compare views.
    • JL
      Joseph L.
      22 May 2020 @ 12:12
      Another question for Werner: Is there perhaps an overarching theory behind the trend toward banking consolidation and an emphasis on financial assets vs. real production and real gdp growth. Is the theory perhaps that the world truly does face limits to growth (resource constraints) and that if we attempted to stimulate productive real/tangible economic activities and services on a global scale, we'd soon bump up against those resource constraints in terms of productive soil, drinking water, high EROEI oil, etc (and a lack of places to store the waste products). So the longer term goal is to de-emphasize the production of physical things and energy-dependent services and shift to investment in existing assets (swapping houses, swapping stocks, swapping bonds) -- in other words, relatively virtual less energy intensive activities.
    • PU
      Peter U.
      22 May 2020 @ 14:03
      You are on to something big there Joseph. Agree!
    • KS
      Ken S.
      23 May 2020 @ 20:05
      +1 for a Richard Werner lecture series
    • SC
      Sam C.
      23 May 2020 @ 21:53
      +1 keen
    • MS
      Matt S.
      24 May 2020 @ 05:52
      I think Joesph, the solution is far darker than that; this Covid nonsense is the proof. Look how very, very keen they are to keep pushing for us all to be vaxxed, despite the overwhelming evidence now that Covid is no more harmful than a flu. Who is pushing and funding the hardest? Gates. What's his lifelong goal? Population reduction. First stop production. Then remove the source of resource destruction.
  • GB
    Gary B.
    22 May 2020 @ 13:26
    Thank you Hugh for introducing RV to Richard Werner. Incredible discussion
    • MS
      Matt S.
      24 May 2020 @ 05:31
      I emailed RV about Richard 2 years ago... guess it takes clout to get it done!
  • JW
    Joseph W.
    22 May 2020 @ 14:28
    As a central banker, I confirm that his man understands banking. Hope we get him back frequently.
    • SR
      Scott R.
      22 May 2020 @ 18:37