Yanis Varoufakis on the state of Europe and the Euro


Thank you darling. Good morning ladies and gentlemen then don’t worry about pronouncing my name I’ve had worse when when I got my first job at Cambridge I remember the master of the college introduced me as like the greek with a dirty name, so Well, there is a may What a week she’s had two days before the General election [I] Got a glimpse of one of her interviews in which you she was asked by BBC journalist Why should the British voters go for her and she said because I had a plan and then I was immediately reminded of Mike Tyson His fame was saying everybody has a plan until I punched him in the nose I Don’t want to be disparaging because I had the plan when I went to brussels in January 2015 the result was not too different, but [let’s] move Beyond plans and punches that are delivered with such accuracy and venom by reality because this is what we are facing and Let’s talk about reality itself We live in a strange world remember the 1980s Ron Reagan [I] was Elected in order to bring. What was it morning in America and The way in which he was going to do it was through unfettered markets and a small state that knows its place it knows how to wither out of Sight now I have done a drum about carnage in America in his inauguration and [builds] a whole narrative of what is going to bring the United states out of its liturgy and make it great again on the basis of Precisely office of moving away from unfettered markets of Moving in some direction of some kind of Trumpian Protectionism at the same time since I spoke about there is a may recall that there is a may Also made a break from Margaret thatcher Ronald Reagan’s soulmate on the other side of the Pond She repeatedly – both of course the left irresponsibility fiscally, but also the Libertarian rights other belief in unfettered markets Meanwhile on the other side of the British Channel we have the complete collapse of the political center? You saw what happened last Sunday in France the two major political parties disappeared just completely [other] disappeared I come from a party Where almost every political party has disappeared? We have you know if abstention? Could take seats in parliament. We would have a crushing majority of Empty Seats similarly in France last Sunday. I Want to put forward the hypothesis that? all these phenomenon From trump to Europe to development in China this Nexus which binds our fates together combining development in Europe and I include [briefly] that It not don’t let’s not confuse the Eu Europe the United States or China those developments Can only be understood in the context of what I shall refer to as a major major radical coordination failure? of a planetary magnitude and Allow me to make this the point that What lies behind in my estimation the uncertainty that you face on your daily base? the political turmoil in Europe and elsewhere [is] A very simple fact and it being an economist. I can’t stop being economically deterministic, so allow me to Put forward. What is fundamentally economic hypothesis? Ladies and gentlemen do you realize that I’m sure you realize but I need to state it Just once more just to hear it because it is such a startling fact Since 1960 we have the largest saving ratio globally and the lowest Investment Ratio Well, we can all go home now. This is it This is the real cause of the turmoil the real cause of [the] trouble that we find ourselves in globally when you have a mountain of Savings and a trickle of investment funding on investment indle Physical capital any cause capital formation You realize that capitalism is not working the Tamils that we experience everywhere [is] the result of the fact that the money markets are not equilibrating savings and investment Now the question is why it is happening? What does it mean and what can can be done to fix it? well as briefly as I can This is this rober of equilibrating savings and investment has always been with us Because let’s face it the money market is not like the market for potatoes or for cars In any market for physical products of services in every micro Economic market to put it this way excess supply leads to a reduction in price which then Shrinks Supply boost demand equilibrates excess supply problem solved so when they’re unsold potatoes the price goes [down] and They get solved simultaneously production potatoes comes down, but in the money market This doesn’t happen Because when you’ve got excess supplies supply of savings what is the price of investment funding well the rate of Interest if The rate of Fitness comes down that of course reduces the costs of borrowing to invest, but that is not what investments are all about Investors do not care about money. They do not want they do not Express demand for investment funding for its own sake and like potatoes that you purchase because somebody wants [written] Money is not edible money is only useful to the extent that it can be invested into products productive processes that yield goods and services that can be solved so if you’re tossing and turning in the middle of the night Wondering whether you should invest in some new product in some new production Lines and your service of course you care about the cost of borrowing of course you care about the cost of labor But this is not what? Determines your decision to invest what the terms your decision to invest is some optimism that at the end of the [production] line When your new good or service is produced [there’s] going to be demand for it But that depends on what others like you tossing and turning in the middle of the night also decide Because what you need in order sufficient aggregate demand is sufficient aggregate [divine] investment, [so] it is a genuine coordination problem I always [tried] before I got into politics I would try to explain this to [to] my students MBA students graduate [fitness] [on] phone in Economics um by means of a very simple Little trick I would say to them now For the next assignment. I have to tell you that I really can’t be bothered to market [it] [is] truly There is nothing worse than marking scripts. It’s even worse than sitting in [eurogroup] meetings So let me just give you a grade now Take out a piece of paper write your student your name and your student number and I want an integer between one and nine including one and I and Your grade [will] be determined by a very simple formula. We’ll pick up all those pieces of [paper] I will choose the number the integer that is the minimum the minimum integer chosen amongst You that would be a common factor follow all of you I will multiply it by 11 That’s common [for] [all] of you minimum times 11 and from that common factor I shall subtract subtract your choice, and that’s your percentage So if everybody chooses the maximum number which is [nine] the minimum is nine nine times in 1199. Mine is yours Which is nine ninety percent everybody gets 90 percent everybody gets an a-Plus everybody passes everybody goes home right now But of course you say where everybody chooses a two they get 80%? Take Choose [4] To get 40% [110] percent now here the beauty of this little example. Is that this is not a free riding Opportunity it is not a prisoner’s dilemma You do not have an incentive to choose a low number while others are choosing a high number You do not have an incentive to cheat It’s a coordination [problem]. Everybody would love everybody else to choose a high [number] Just like investors every investor would love everybody to invest So they invest so everybody makes money and they make money And if you think that others are going to invest it is not in your interest not to invest [yourself]. You’ll be left behind similarly in this example with the little Grading game as I call it if you think others will choose mine. What’s your point? What why would you choose one if you choose one the minimum is one you fail the others fail, but you fail, too so The Optimal strategy in this grading game is to choose the number that you think will be the minimum amongst everybody else similarly not the same But similarly in investment everybody would like to imagine what others would be investing The extent to which others would be investing and they will invest more or less the same But not more so pessimism Reproduces and reconfirms itself because if enough people believe that enough people will be [pessimistic] and therefore will invest very little Then everybody has an incentive to invest very little and then you know what Lo and Behold Investment is low as I said you see we were right but not because the equilibrium the right [answer] is low investment if They were all optimistic or enough of them were optimistic that we thing are Investing will be high so let’s invest it with all invest and then we say outlook we were right Investment is high so we were right to invest, so This is the conundrum that we find ourselves in I imagine We’re in the middle of the night, and you are tossing and turning in bed, and you are wondering shall I invest or not high investment low investment strategies and You can’t sleep so you switch on your smart phone, and you hear that janet yellen is thinking Against all odds of reversing her interest rate policy and actually reducing interest [rate] the United States today or indulging in more qe You think what do you think oh great? The costs of investing are going to be reduced because the rate of interest coming down old is it more likely that you think oh? No For janet Yellen to be reducing interest [rate] things must be bad You see this is a tragedy with money markets when things are bad and savings are high investment is low the price of money comes down and instead of Having a calibration we have this equilibration so tax cuts interest rate reductions in the middle of a crisis may reduce the costs of production or the cost of investment they may Allow those with greater savings to keep more of it rather than to pay to the taxman [a] woman But they do not create more investment. They can actually have the the opposite effect now if you combine this with the most buying difficulty and incongruity since the beginnings of Capitalism which [is] the fact that we have two contradictory Forces Two contradictory tendencies since the inception of capitalism on the one hand to create a common currency To fix exchange [rate] I heard the introduction You’re particularly worried and concerned that the pound is going up So it down this. I’m still stacking you in 2015 territory and So the party’s coming down the here is going up the dollar is going up and down Volatility you’re concerned about that’s quite natural So there is a tendency to try to create political mechanism by which to dampen these this volatility to fix exchange rates to To reduce the volatility in the fluctuations of exchange rate It’s kind of quite natural but they’re not if you think about it. The natural limit of this is the Gold Standard Bretton Woods the [Euro] the Us dollar Mexican peso peg the Chinese peg this is the natural conclusion of this limit the moment you peg Currencies together of surplus and deficit regions of the [world] what you are doing effectively in the interests of Doing away with volatility and uncertainty You are causing a massive tsunami of capital that will flow with probability one from the surplus from from the banks of the Central region to the deficit regions why is this because whenever you have a chronic current let me give you a Random exact example take Germany [and] Greece totally randomly every Mercedes-Benz that gets sold or Volkswagen That gets sold in greece means that there’s a wad of money going from a Greek bank Through the [Target] [so] to system of the European Central bank to a bank in front cars go one way money comes the other way so that immediately creates a glut of money in Frankfurt and the shortage of liquidity in a place like this that immediately means that the real rate of interest in a place like Frankfurt is going to be dampened and the real rate of interest in place I greece is going to go up [immediately] the bankers of Frankfurt have a cause have an incentive to Shift very large parts of that Lake of Liquidity from Frankfurt to a place like Greece by which to extract the higher rate of Interest now this causes a period of Exuberant Growth both in Greece, and in Germany remember the 2000s. This is what happened after the creation of the year? Greece was growing at 55.5% 8% in nominal GDP terms, [we] where the miracle of Europe. Do you remember that no? you don’t remember that because lots of things have [happened] since that, but we where Greece and Ireland had the highest growth rates between 1998 and 2008 This is why German Bankers and French bankers even celia were rushing to greece to [lend] as if there was no tomorrow? Yeah, the greek debt did not happen repetitiously there was a Mechanism and an Act dynamic behind okay, so this is what happens. It’s not just greece in Germany think of us and Mexico [u.s.] And Argentina during the peg, Era 1920s the gold Exchange standard, Era, and it happened they European exchange rate mechanism period That ill-fated awful design still had that effect it happens every time that you try to Respond to the investors and to the business persons Demand for less volatility in in exchange rates by means of fixing exchange rate. This is what you get and of course Upon the skin it’s like me going into a car dealer and saying [I’ll] I want your card and I want the money to buy it with So [its] vendor financing Which is exponential? This kind of growth [can] only continue when debt private that that? Public that doesn’t really matter these people say I look at [Ireland] and greece. They’re very different They’re not different. The only difference was that in Ireland. It was the private sector that became hugely invested and Indebted in greece it was the public sector the result was exactly the same bankruptcy of the state in both case either directly as in greece or indirectly through Anglo, Irish and so on in Ireland and then of course the bubble bursts because [this] is what happens when you build pyramids and Clueless politicians who couldn’t see this coming even though it happens every time [try] to fix it and how [do] they try to fix it? With [a] extremely short term agenda so in the case of greece in the games of Spain Violent of italy as they dealt with it as if this was a greek problem or an Irish problem or an Italian problem? Never did the European union sit down and treat a systemic crisis systematically Similarly think of latin America and Central America by the time Brady bonds came to clear up the mess a whole [generation] had been depleted Think of Argentina were still mopping up after that disaster so there is On the one hand the tendency to fix exchange rate is on the other hand reality punching your plan in the nose and causing Massive social deprivation as a result of politicians who are in power when the bubbles burst? firstly Analytically incapable of understanding what happened and secondly morally and politically not strong enough in order to say you know what we cannot deal with this problem by means of a combination of more loans and Austerity which saps the incomes of those in deficit and in debt Call me Greece so what really happened in 2008 Between the 1970s and 2008 we had a very interesting Global flow of capital and commodities think about the Bretton woods system Which had fixed exchange rates was predicated on the iDea that? the United States was a surplus country that would be recycling in surpluses to equilibrate and coordinate these problems between Surpluses and deficits that’s what the marshall plan was that was what American policy visible? Opening its markets to Japan was it was a hegemonic attempt to politically manage the flow of goods and of capital in a global regime of fixed exchange rates that died in 1971 with an excellent show why did he die because America lost his services and then we had a second period Between the MiD-1970s let’s say and 2008 During Which the Global financial flows and good flows and trade flows were effectively managed by America’s twin deficits the American deficits operated like a huge vacuum cleaner that fact into the territory of the United states the net exports of giant of Germany of the Netherlands of Japan Later China, and closing the circle by sucking in towards 370 percent of global profits so [that] was recycling but 2008 With the Meltdown of the financial sector even though the financial sector was reflate at a year later by the actions of A Central Banks the Fed primarily But not just the fed and be china that inflated its current credit bubble in order to give Western Capitalism The Europeans and the Americans an opportunity to get their act together even though it was inflated it never managed to play again the role of closing the loop and Using America’s deficits or anybody’s deficits in order to provide the requisite demand to german-dutch? Chinese and Japanese factories so as to maintain The level of aggregate investment where it was so if we have failed to provide to produce coordination after 2008 if this crisis is continuing if Macron managed to win not just the presidency, but the National assembly elections at the Expense of the main parties if breaks will prevail if Donald trump is coming This is all underpinned by the punch of reality which has to do It’s a kind of nemesis following the Hubris of us collectively Failing to come to terms with a major coordination failures part of by 2008 which we have never managed to deal with even to discuss sensibly so populist Xenophobes racists and tumult in general is the price we pay globally For our failure politically to come to terms with our economic reality. Thank you very much That’s it Great. Thanks for your comments Be honest [you] managed to explain the euro crisis and the trump trade all in one being framework, and it’s one I’m sympathetic to the idea that we have this global, but as savings are not enough investment [I] Want to start off by talking about that actually so when I talk to policymakers about investing more particularly in this country And say it will drive GDP growth the response I get a few cares about GDP growth you’re such an anglo-Saxon [we] have a high [standard] of living and low unemployment So why should we care and I understand you’re saying as a coordination problem But what would your answer to them? Beyond that why should they care in Japan or in germany where unemployment is really low standard of living is really high Well since we’re in German you might as well pay respect to this nation and address Germany Well Germany has what is it? What was the last? Figure eight point seven percent [kind] [of] come suppose something like that moving up yeah now What does this mean it means that the [hard-working] germans have to send their savings to [the] spendthrift? That’s what it means This is not something that hard-working Germans like to do But this is what they have to do because if you have a chronic current account surplus then If you have constantly saving more than we invest Saving more than you spend you’re going to have to take this your savings since you cannot lend them to anyone in this country because there isn’t enough demand for it you’re going to have to give it to the Greeks and If not to the greeks you have to give it to somebody that you mistrust so the hard-working German Investors are forced to effectively hand over their future [to] jurisdictions and To companies and to peoples that they have no control over [I] don’t think the hard-working German like that And it is not confused to equilibrium in the long term dynamic equilibrium. Let’s face it What is keeping Germany [going]? It’s China It’s really very simple [and] what is keeping China in a position to perform this role for Germany a credit bubble [do] the Germans really want to have their future rely on a credit bubble? [I] do not believe that You know knowing having many many friends in this country that they can go to sleep at night? safe in the thoughts that their future nest egg depends on a credit bubble and welcome so it was very clear [she] said quite recently that he disparages the very low interest rates of the European central bank because they are the ones that are [feed] feeding the monster of Xenophobia at the NDI today this country and she’s right now of course he’s shooting the messenger Do you think the German investors will have a long enough time for him to think about what might happen when that credit bubble bursts? Or they’re just going for [this] they probably don’t and this is a tragedy that we all face and this is not a criticism of German investors is a criticism of All over [netting] you know we are we are like the grasshopper not the end Globally we are thinking of today We’re not thinking of the future you cannot continue along the path We cannot continue along the path that we are yeah, it’s simply not sustainable So to talk a little bit about the future in Europe Your experience going from athens to brussels [it] was a big shock a big change things are done [differently] in brussels I think everyone can agree actually I’m no no oh, well. They’re mostly Competence and brussels it is you know so Olympic gold star, but in terms of processes [to] tell us. How you really feel yes In terms of processes though things are done a little bit differently So knowing what you know now about processes and negotiating style What would you have done differently and what would you tell Teresa may to do? Given that she’s in theory going to have to go to brussels and try to negotiate breakfast I remember in a discussion had larry summers um Sometime in April when I was still [minister]. He said to me young [is] he made a very big mistake me He didn’t say mate. I’m adding that Gladys assad used the word mate. He said you made a very big mistake. I thought oh my God. [I’m] latin So what was my mistake like said you won the election So the thing that I greatest mistake, but no look The greatest mistake was to trust That our team had an agreement amongst ourselves that we would stick to because between between you and I don’t tell anyone ah [things] were really very simple at the beginning of 2015 yes. We were a part of the hard left But what we went to brussels with was not a leftist agenda You remember as megan it was a very simple agenda It was indeed when I when I put it to several friends of mine, the United States Finances they said to me well that is the poly that that is what the wall street? Bankruptcy lawyer would have come up with this set of proposals. We we said with one Yeah, [a] debtor structure that will allow us to have a and a modest But the reachable primary service Target, so that we could reduce Tax rates for business V18 and so on in order to stimulate the economy have an investment bank to create some kind of homegrown Investment and a bad [bank] to deal with NPL now How left-wing is that but it took a hard left finance minister to come up with what would be a bankruptcy lawyers Proposals so this is I don’t regret going to them with this what I do regret doing was I I I regret trusting that Reason would prevail in the eurogroup at some point they would see that this would be in their own benefit that they would get more of their money back if we Went down this Road? Rather than the road that they followed in the end so that wasn’t Yeah, maybe I was maybe this and I was [naive] [in] believing that my own team my primary study in particular and I would stick together through Hell or high water and say no to more [loan] tranches that add to our unsustainable debt on conditions of shrinking our incomes And I so what would have done differently I would have brought on a crack a clash with the troika of Lenders Within the first month I would not have waited [until] June so you see I’m just Beyond Salvation Okay, and put on that basis. What’s your advice [to] Theresa may who now has to go in and arguably the Europeans Don’t don’t understand what the risks are for them of brexit Well, let me just say that The narrative not has changed completely as a result of the hung parliament by the way I think that this hunk parliament is the best thing that could have happened for Britain and for the European union it Is an amazingly good outcome? Because now it may. Be there is a possibility that some sense is going to be knocked into Mrs.. Mays head and That we are now going to go for what is the only possible long-term? Sustainable solution which is six year period Let’s say five six years of an interim Norway Style European economic area agreement, so what you do is you say, you can’t say to the british people You vote for brexit. We are going to ignore it. We’re democrats we have to respect it, but at the same time let’s remember that the Referendum is a binary choice The [choice] [breaks] but they didn’t choose. What kind of breaks and What was a big and what was the strongest argument in favor of brexit from a political philosophy? Liberal Perspective burke in perspective to restore Sovereignty to the house of Commons well looks for it let the house of commons beside what? long-term future The United Kingdom wants with a you but that takes five years to decide the two-year period of supposed Negotiations is not going to give them any such answer there will be no negotiations. So there’s only one year now exactly sighs so my Advice to her even written [Op] [eds] about this [is] very very simple don’t negotiate Because you cannot negotiate you spend you will waste the next year negotiating for the high to negotiate which is not going to be granted and In the end the only thing that Mr.. Burhan, Mr.. Juncker [it] is merkel fear the most is a mutually advantageous agreement Coming out of negotiations. They do not want a mutually advantageous agreement They want one that teaches any other [recalcitrant] in Europe that if you challenge brussels you get a bloody nose even if the peoples of Europe end up suffering as well So the only way of not negotiating is either you you pick up something you leave which it would be catastrophic or you table for an off-the-shelf a Table you table request for an off-the-shelf agreements We switch them like or [norway’s] style now if she had won a landslide victory She could not have gone that way because he’s already proclaimed that she wants a [heartbreak] suit Why would you want to say this? I don’t know but anyway um Well now with the bloody nose permanently featuring on her face She get an opportunity to escape the trap [that] [she] set up [for] yourself. Yeah interesting [I’m] and though it could go horribly horribly wrong if But with a hand philemon, there’s a better chance that won’t go horribly wrong Small [atcha] small chance, but we had the zero jump before that right yeah And what about the rest of Europe because you spent a lot of time traveling around Europe talking to policymakers? We have any president in France who looks like he’s going to have an absolute majority in Parliament We’ve got the german elections coming up. Do you think do you see anything shifting of the basis of this new leadership? Well the the developments in France are major because [this] fake [France] is the battleground [foody] you you’ve written on both sides on my car. You’ve written to support him and entered a napkin so well Allow me to explain this firstly. I consider him to be a friend We have a very good personal relationship I personally like the guy. I think he’s a very he’s a splendid chap And he and he understands the problems the architectural problems of the eurozone However, I disagree with his policies, and I disagree with how [he’s] trying to get to what I think is right Aim The right destination, so we agree on what needs to be done, but I disagree severely with the way He’s [thinking] of achieving His views very simply and nothing you know that we haven’t had a chance to discuss it before but I think we know the same Story his view is [that] okay for about in a year? He is going to pass through the French national assembly Legislation especially for the labor markets that germany passed 15 years ago the hard sphere reforms the shredder Agenda and So on Which is too late to do in [Germany] [in] [Germany] in France now these kinds of micro economic reforms work only? during a period of rising investment if Investment is falling and you give companies the [opportunity] to fire and uber eyes workers you are not going to create more jobs during periods of increasing investment if you give more opportunities [to] large companies [to] To have more control over whom they [file] and whom we hire they will create good jobs, but because investment is rising so he’s going to Expand his political capital and popularity took to pass through parliament Measures that will not work in a direction that he wants so as to go to Berlin Welcome to Berlin. I should say and say to American in a Year’s time look I’ve [germanized] France now. We have a german france Yield on federation We want a common budget. We want comment on climate insurance who are the proper banking union all the things that we really need You know what she’s going to say to him Nope, not doing it And then where is McCrum going to be he will have expanded his political capital And he will not get a meaningful federation a macro economically significant federation Why do you say that she’ll say [no] so she will have no reason to say yes? So institutional change for Europe is reckoning I? have I hold Angela merkel in the highest regard I’m actually quite this terrible, but I’m quite. Happy that she’s going to be reelected because I distrust Martin Schultz and esther day immensely I dealt with them They were my comrades They [talked] to me as if we were friends we were going to have evolution together and then five minutes later They were worse than cycling. I preferred soy blend any day this place [Espa] the kind of policy you know languages. Just appalled some glad Americans and especially given her Splendid and Outstanding model leadership on the refugee [issue] Which of course then was snuffed out by her party, but nevertheless. I hold it in the highest esteem, but I think she’s Mr. Chance her chance of leading Europe down the path of federation was 2010 2010 2011 She had to do it. It would have been fantastic for Germany to do it it You know would have been a different place now, but now I think she’s winning her last term in office Already her control over the tadeo has diminished I Can’t she deliver that which Micron is asking No, I don’t think she can even if she wants to anymore, and she can certainly not deliver anything. Which is something more than cosmetic Okay, and that uplifting thought [and] sadly we’ve run out of time, but I will point out [that]. There’s a session later But with [yanis] that all of you can fire Rapid-fire questions at him during so let’s all give him. Thanks again. If you have Megan Sorry about the community Go down

22 Replies to “Yanis Varoufakis on the state of Europe and the Euro

  1. Why no one is admitting a simple fact? Loans based on interest rate are actually scam and immoral. Sure a lender should take some fixed rate to cover operational costs plus a fixed interest rate but only when that pumped in money starts to bring profit. Interest rates are creating money out of thin air and driving borrower into cycle of never ending lending when the first loan is not creating profit.

  2. He has the look of a man who realized that most of the "economics" he learned most of his life or how the world really worked was a joke and we live in a circus.

  3. Things have gotten so bad because of economists and financiers. When the discussion is about "China closing a circle that the US has started, which it can't" one can see everyone is out of his place. The surpluses and deficits are one own's personal business, not of the states. The hidden picture is financiers trying to manipulate everyone through the state figures. That's why to everyone is so important a reasoning of the kind what's creating investment and what to do with savings. While in fact is not a business neither for the state nor for economists. For each one his own problem. In other words who tries to bring german money to create investment in Greece to buy Mercedeses – the entire reasoning is wrong. One should not be concerned neither whether germans have money, nor what do they do with them, nor with a world investments/savings tables and statistics but whether he can create something himself or not. Otherwise one ends up in a totally imaginery world where the state creates business to level up people, which is communism. And that is why EU is moving on the same path and to the same end.

  4. Economics is a pseudoscience based on a mixture of conjecture, opinion, bias, politics and dodgy statistics with a dash of impressive looking but meaningless mathematical formulae thrown in. An economist can be likened to an accountant as an alchemist to a chemist or an astrologer to an astronomer. In short you might as well read a sheep's entrails as listen to an economist's projection. When was the last time you heard of an economist's prediction coming true? Worst still, when have they ever predicted a major recession that has happened?

  5. This guy was involved in Greece's financial downfall and persuaded Greece to agree to the EU's looting of Greece's finances. I believe he is pro Eu and always right.

  6. yf is right in saying corbyn might be a good pm, if he can reshape labour. big if. but yf is wrong in vital area, he never says the magic words: we must transfer power from politicians to the electorate, aka, genuine democracy. money comes from power comes from money. until the plebs rule, they will never be anything but exploited and or discarded. he is mired in the general myth, that democracy is better done by specialists, 'for the people', and 'by the people' is quite unnecessary. in no human
    society has the elite failed to exploit the plebs, there is endless demonstration of this fact. until yf says so, he's just another scam artist.

  7. I'd like to know what he thinks about Trump and reduction in tax rates and whether the people who have gained will invest or take their money elsewhere?

  8. Circular Economy in Finance

    Sometimes the circularities may come from an unexpected place and it is difficult to find.
    The Cycling of [NEED TO PAY] transactions can be used to create a Financial Clearing/Settlement system more egalitarian and become a real driving force for the economy.
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  9. Fracking hell… does anyone still take this lying hypocrite that constantly contradicts himself seriously?!?!?! just look at the results of Varoufucknukle's "policies" and "predictions" – and why do you think he was dropped kicked out of government by hid "communist" comrades who were initially selling him as a "rock star politician"?!!!! Don't fall for his duplicitous bullshit and delusions of adequacy… he is little more than slimy, treacherous little stooge and US/IMF/Soros puppet and – to quote the moron himself – "a comedy of errors wrapped up in harmless waffle" which sums the pathetic, treacherous clown perfectly…

  10. No liberal democracy in EU banking OR UK BANKING,no fair interest rates for citizens,a socialist liberal EU BANKING SYSTEM SEEMS LIKE IT,S STILL A CAPITALIST SYSTEM,BANKERS CAN HAVE THEIR CAKE AND EAT IT,where is our fair liberal democracy fair  banking practice interest rates,we have a right to reap the benefits of high interest rates to,it,s the same money,HOW COME we were losers on interest rates,in capitalist times and now in liberal democracy times like now,why do the bankers always win whats going on,this is incorrect,liberal democracy and capitalist democracy,are the same for bankers and still they have us over a barrel..

  11. The system has A ROLLE for Hime Ready as he s Play the Role ..afte r rollwhos gonna replace Chomsky in the leftists intelectual Rolle as Minister in Greece was Auful , and SYRIZA is the worst Goverment it pass in Greece ..Also EXTREMLY Promoted [SYRIZA ]like Varoufakis

  12. So many great economists , and still the global economy goes to hell. That means they are useless, and their purpose is to fill our heads with shit.

  13. In a Democracy “the people in their collective capacity is Sovereign (it is the people who make the laws)”.

    Democracy is a populist form of Government. Which exposes the motives of those who decry “popularism” .

  14. This guy is a joke! Everything he talks about relates to governments manipulating, intervening, in the economy. It has nothing to do with free-market capitalism. Free markets don't create bubbles because it's not able to manipulate interest rates nor create money out of thin air. Governments create the bubbles and the instability in the economy, not markets. I'm not sure who his instructors/teachers were but he needs to set fire to his "credentials."

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