The Failure Of Capitalism Or Monetarism? + Bad Capitalists And Their Malinvestments

Max and Stacy discuss Ray Dalio’s claims that capitalism has failed. They wonder if monetarism has instead failed and ponder the notion that interest rates, the price of money, is the only tool with which to ‘fix’ the economy. They also discuss Saudi Arabia’s threat, to journalists at Reuters, that they could abandon the dollar. In the second half, Max continues his interview with professor and author Steve Keen about the failure of negative interest rates, the promise of a Green New Deal or a Trump infrastructure package, and about Ray Dalio’s failure of capitalism claims.

Bad Capitalists And Their Malinvestments

Max and Stacy discuss how the European Central Bank’s corporate bond buying program (the Corporate Securities Purchase Program) has led to extreme malinvestment and misallocation of capital, including the ill-timed Bayer takeover of Monsanto. In the second half, Max interviews author and professor Steve Keen of Patreon.com about the unfolding property crash in Australia from which he has just returned. They also discuss the Japan-like economic future for much of the developed world as decades of stagnation await us. At least it’s not a 2008-style crash! Right?