In 1969 Johnny Carson was hosting The Tonight Show and, in one particular episode, Bob Hope headlined. After Carson finished interviewing Hope he called out his next guest, George Gobel. To everyone’s surprise the person that walked out on stage was most certainly not Gobel. It was none other than the Italian Crooner himself, Dean Martin. Now, as was Martin’s style in those days, he was already two cognacs into the next day’s hangover, which made for a rocking good show. Eventually Gobel did make it out on to the set. When he finally did, he complained to Carson, ‘Having to come on last! Having to share the stage with legends!’ He turned to the cameras and asked, “Do you ever get the feeling… do you ever get the feeling that the whole world was a tuxedo, and you were a pair of brown shoes?” In this, the 28th episode of Making Sense, Jeff Snider and Brent Johnson talk fin de siècle political-economy while Emil Kalinowski holds up a pair of egregious brown brogues.
01:26 What are bank reserves? Are they money? Are they a kind of money?
05:06 What do central banks actually do?
06:51 We are taught at school that the central bank is central to the monetary planetary system
10:54 Narrative, public relations expectations management, prestidigitation and central banking
14:02 Central banks are what we see but that which is vastly larger – shadow money – we don’t
18:02 In a deflationary environment central bank actions are palliative, not stimulative
19:25 What does it mean when economic activity is non-linear?
22:29 What role does Modern Monetary Theory have or will have in our economy?
28:54 Growth miracle countries experience booms based on politically-driven investment
32:20 Did the Federal Reserve save the economy and financial system from a crash in March 2020?
34:13 Is there a common concern among Brent Johnson’s many clients? A unifying concern?
40:10 Is the future a good one? Should we be optimistic or pessimistic of what lies ahead?
OK, Bank Reserves; Let’s Do This One More Time: https://bit.ly/3hXhJ7m
Taking You, The Fed’s Bank Reserves, And Banks’ Checkable Deposits For A Quick Stroll In The Monetary Zoo: https://bit.ly/3i4du9P
A Good Time For Some Q & A: Bank Reserves, Treasury Auctions, MMT, and the Monetary Resolve: https://bit.ly/3mLPrjE
Alhambra Investments Blog: https://bit.ly/2VIC2wW
RealClear Markets Essays: https://bit.ly/38tL5a7