America Is Risking A Liz Truss Moment | Kevin Muir
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What's up, everybody? Right before we get into the show here, just wanna give a quick shout out for our next BlockWorks conference coming up in just over a month. Permissionless four is happening June, and it's a crypto conference all for the developers and builders in the space. We're gonna be hosting it right in the heart of Brooklyn, New York, and it's gonna be a ton of fun. There's gonna be a lot of fantastic speakers, and the whole Ford guidance crew is gonna be there. Myself, Tyler, Quinn, we're gonna be doing a live roundup. There's gonna be some wicked community events. Come meet us, h
to be with you today, Felix. Nice to meet you. Yeah.
Yeah. Likewise. This has been wildly overdue. Yeah. So okay. Let's get right into things. I I wanted to get you on the show because it feels like we were just saying off camera before we started here that there's been two buckets of people in terms of how they think about their macro frameworks and everything. And there's there's the traditional bucket which has been, okay, you know, stuff like the yield curve is inverted, so the the recession is imminent. And that bucket has been pretty provably on the wrong side for the last couple of years. But then there's this other bucket of folks like y
Actually, let's just rewind and and think about the macro environment in the mid to late twenty tens. And that time, if you remember, we came off of the GFC. We had this situation where we had quantitative easing. We had these extraordinary monetary measures. I still remember, you know, Bernanke doing these, doing the operation twist and doing the second round of quantitative easing. And there was that article in the Wall Street Journal that was signed by just a a a slew of really prominent market strategist, economists saying that this was gonna be a disaster. And back then, I would've I woul
So okay. So let's let's paint some constraints around here, and I'll I'll do so by just throwing a few propositions at you, and you can tell me on what spectrum do you sit within them. So, you know, the proposition of higher interest rates being stimulative because, you know, if you have a higher Fed funds rate, somebody that owns a T bill is gonna be getting 5% coupons on that. Where do you sit in terms of that regard of of is that actually outright stimulative, or is it just that this the way I see it is the spectrum between the inflows of of interest payments that they get from the governme
So, you know, you I I've I've seen your great interviews with Warren Mosler, and he's definitely, the godfather of this, and, far be it from me to say that he's ever incorrect. But I I lay a little bit more in the there's there's elements of truth to both systems. And where I find where I push back on a lot of MMT folks is that they seem to focus solely on the credit creation side of money being spent into existence, and they almost forget about the private credit side. They they almost say, oh, no. That doesn't matter as much. And just just kind of to back up a little bit, if we think about 1
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