Steve just dropped an absolute BANGER on the AI bubble and it's honestly mind-blowing 🧠💥 This isn't your typical "AI is great/terrible" take. Steve breaks down: ✅ Why OpenAI might actually FOLD (yes, really) ✅ How robotics will eliminate the jobs capitalism depends on ✅ Why tech bros who HATE government will be FORCED to embrace universal basic income ✅ The 2 radically different futures we're headed toward (and it's either amazing or terrifying) This is classic Schumpeterian cycle analysis meets real-world automation crisis. If you've been feeling like something major is shifting in the economy, this video will make it all click. 👀 Steve's bringing the same energy he uses in the Ravel© models but explaining why the income distribution system that's held capitalism together for 200+ years is about to break. 30+ minutes of pure economic truth bombs. Trust me, you want to watch this one. 💣 Drop your thoughts after watching! What future do you think we're headed toward? Watch here: https://www.youtube.com/watch?v=IPcVosG8Mng&views

There are a few people I greatly respect for their wisdom in economics and the monetary system who are fans of MMT, and they have tried to explain to me what MMT is and how it works. The major MMT premise from what I can gather is something like this: "The Government issues money to spend first, and receives tax revenue and bond sales revenue later, so tax and bond sales revenue do not fund government spending and deficits don’t matter because the Gov can always issue new money to pay off the bonds." MMT as a whole can be summarized from what I have read primarily by some version of the 11 arguments below: 1. Gov tax receipts and bond sales revenue do not fund Gov spending. 2. The Gov issues new money to pay Gov bills. 3. The Fed issues new money for the Gov to spend by crediting the account of the Gov at the Fed. 4. The Bank of England issues new money for the Gov to spend by crediting the reserve accounts of the banks of Gov payees, paying Gov bills on the Government’s behalf. 5. Gov deficit spending causes negative Gov equity and positive public equity by the Gov printing more money to cover deficit spending. 6. The Gov sells bonds to reduce the supply of reserves and influence interest rates. 7. The Gov cannot go bankrupt and Gov deficits and debt aren’t a problem because the Gov can always print more money to pay off Gov debt. 8. What matters when the Gov runs a deficit is whether there is excess capacity in the real economy to put the money to use, and we should increase Gov deficit spending until inflation starts, which only happens when there is not any more capacity absorb new money, so new money at that point just starts to increase prices. 9. Interest rates should be 2% (or lower) to maximize output in the real economy, and deliver economic opportunity to the most amount of people, ideally everyone. 10. Gov deficits should not be feared and should be run to achieve full employment, otherwise we are wasting the opportunity to deliver full production, and build the largest economic pie for the everyone to share.

When the Fed undertakes Quantitative Easing QE , they expand their Balance Sheet BS when they buy High Quality Liquid Assets HQLA (+A) from banks, and increase their Liabilities (+L) when they issue new reserve account credits in the reserve account of the selling bank, which increases the total supply of reserves. Fed BS: +Assets (+HQLA) +Liabilities (+reserves) This is sometimes mocked by memes showing Powell using the Fed’s ‘money gun,’ and is generally seen as “printing money.” However, the bank is completing an Asset Swap, selling High Quality Liquid Assets HQLA (-Assets), and receiving new reserve account credits, aka ‘reserves’ (+Assets). This means there is not an increase in Assets for banks, no new assets in the banking system, only an increase in the liquidity of bank Assets. Banks do not need reserves to make loans, so this increased liquidity results in no increase in loans or economic activity. And since the Fed sets rates using Interest On Reserve Balances IORB, the increase in bank liquidity has no effect on interest rates, although ample Ressrves can reduce the overnight rate that banks lend excess reserves to each other. So QE doesn’t seem to do much for banks in the current environment.. For the Treasury, they still have to pay Principal & Interest on the bond P&I regardless of who owns it. An interesting reality emerges when we look closely at bond repayment for bonds owned by the Fed. When the Fed receives payment from the Treasury bonds they have purchased, they often or normally ‘reinvest’ the maturing principal by swapping out expiring bonds for new bonds, sometimes called ‘swapping paper.’ However, in some circumstances the Treasury has to complete payment to the Fed, so they sell new bonds and transfer those reserves to When the Fed receives payment from the Treasury for bonds the Fed owns, this contracts the Fed’s BS. Fed BS: -Assets (-bonds) -Liabilities (-reserves) So the Fed owns $4T in UST bonds, but if they do nothing, the Treasury will pay $4T to the Fed and those reserves will be de-issued, and disappear forever.

He breaks down the Minsky financial model and why “stability” can be the most dangerous phase of the cycle. “A decade of despair: The great depression” Top Economist Explains - YouTube

To me, this is the most iconic article on money ever written, and left us is with this:: “Lending creates deposits” That’s the beginning of the end for traditional neocon models…or maybe just the end! It was so powerful I extrapolated it into a 300+ page book with 40 charts: https://a.co/d/4nRyMJs What have you read by a central bank that you thought was insightful? Please post links or papers, feel free to share commentary…