This video is an excellent introduction to Jim Brown’s book the Black Hole of Economics. When you get the book, you’ll want to watch this video again because together you’ll understand economics better than either one of the things alone.
The issue of money creation made by commercial banks for commercial loans is so radical and yet compelling that it’s astonishing.
Kudos to Jim Brown. Jim, you have made me feel that our current troubles are not a sad ending to a great run in history. but rather the beginning of a tremendous flourishing in human history.
I pledge to stay curious: treasure the past, live in the present, and stay curious about what I can do and want to do in the future.
Once again you are changing my understanding of something I thought was completely unhinged - Trump's economic policies. Now, I can see some of the reasoning behind the steps they are taking. I don't agree with elements of it, but a number of his objectives are excellent. Either way it is good to understand where they are coming from. If I understood your conclusion, though, it sounds like you still believe the investment suggestions you provided in the book are the best way to navigate the coming economic difficulties. Thank you so much for the book and this video, because I am one of the old people the government plans on stealing from. Now, I think I have steps I can take to prevent that from happening.
Hey Russell, yes, I think you have understood my current "working conclusion": despite their best efforts, it is unlikely that the Trump-Bessent strategy will work well enough to spare us from further monetary manipulation, inflation, and political turmoil. This is what leads me to my recommended investment strategy.
Although I am staunchly in favor of free markets, I recognize a distinct difference between an analyst and an advocate. In my book and podcasts, I aim to be an analyst, with the objective of understanding what is likely to happen rather than what I wish would happen. That is the only way I know to prepare for financial survival and hopefully prosperity.
The financial media is full of advocates who tell their readers what they want to hear, using language that reinforces their readers' prior emotional biases. For example, condemning policymakers for violating individual rights ("Tariffs! Taxes! Inflation!") without trying to understand their intentions, or offering a responsive investment solution, serves no one's interest.
Here is a quote I got from Doomberg (highly recommended) that should be tacked to the door of anyone who calls himself an "analyst":
“How can you tell the difference between an analyst and an advocate? It is all in the handling of data that runs counter to assertion. To an analyst, being wrong is disappointing, but it is primarily an opportunity to learn—an expected element in a feedback loop of continuous improvement. When knowledge is your only objective, there is no such thing as a bad fact, only one that you do not yet understand. Not so for the advocate. The advocate has tied their hopes (and often their livelihoods) to a specific outcome and feels compelled, whether consciously or not, to rationalize away or attack inconvenient realities. It is advocacy when every perturbation in the weather is tagged as evidence of climate change, each squiggle of unfavorable price action is declared market manipulation, and no act or utterance from a favored politician is disqualifying.”
This video is an excellent introduction to Jim Brown’s book the Black Hole of Economics. When you get the book, you’ll want to watch this video again because together you’ll understand economics better than either one of the things alone.
The issue of money creation made by commercial banks for commercial loans is so radical and yet compelling that it’s astonishing.
Kudos to Jim Brown. Jim, you have made me feel that our current troubles are not a sad ending to a great run in history. but rather the beginning of a tremendous flourishing in human history.
I pledge to stay curious: treasure the past, live in the present, and stay curious about what I can do and want to do in the future.
Thanks for that, Ilene! Curiosity is one of life's great pleasures.
Interesting, be curious, good advice.
Once again you are changing my understanding of something I thought was completely unhinged - Trump's economic policies. Now, I can see some of the reasoning behind the steps they are taking. I don't agree with elements of it, but a number of his objectives are excellent. Either way it is good to understand where they are coming from. If I understood your conclusion, though, it sounds like you still believe the investment suggestions you provided in the book are the best way to navigate the coming economic difficulties. Thank you so much for the book and this video, because I am one of the old people the government plans on stealing from. Now, I think I have steps I can take to prevent that from happening.
Hey Russell, yes, I think you have understood my current "working conclusion": despite their best efforts, it is unlikely that the Trump-Bessent strategy will work well enough to spare us from further monetary manipulation, inflation, and political turmoil. This is what leads me to my recommended investment strategy.
Although I am staunchly in favor of free markets, I recognize a distinct difference between an analyst and an advocate. In my book and podcasts, I aim to be an analyst, with the objective of understanding what is likely to happen rather than what I wish would happen. That is the only way I know to prepare for financial survival and hopefully prosperity.
The financial media is full of advocates who tell their readers what they want to hear, using language that reinforces their readers' prior emotional biases. For example, condemning policymakers for violating individual rights ("Tariffs! Taxes! Inflation!") without trying to understand their intentions, or offering a responsive investment solution, serves no one's interest.
Here is a quote I got from Doomberg (highly recommended) that should be tacked to the door of anyone who calls himself an "analyst":
“How can you tell the difference between an analyst and an advocate? It is all in the handling of data that runs counter to assertion. To an analyst, being wrong is disappointing, but it is primarily an opportunity to learn—an expected element in a feedback loop of continuous improvement. When knowledge is your only objective, there is no such thing as a bad fact, only one that you do not yet understand. Not so for the advocate. The advocate has tied their hopes (and often their livelihoods) to a specific outcome and feels compelled, whether consciously or not, to rationalize away or attack inconvenient realities. It is advocacy when every perturbation in the weather is tagged as evidence of climate change, each squiggle of unfavorable price action is declared market manipulation, and no act or utterance from a favored politician is disqualifying.”
Thanks for your interest and feedback!
First 15 minutes of this video feel like essential understanding. Timely, too, in that Moody's removed the AAA USA rating.