Richard Duncan: America Doesn't Have to be a Declining Superpower

Tom welcomes back Richard Duncan, economist and author of 'The Money Revolution.' The discussion revolves around the implications of Duncan's latest work, which challenges conventional economic theories, particularly those rooted in Austrian economics. Their last conversation was over two years ago.

Duncan begins by recapping the ideas presented in his book, including how the unexpected response to the 2008 financial crisis, characterized by trillions of dollars in fiscal stimulus and monetary expansion, did not result in high inflation despite concerns from Austrian economists. He also highlights the shift away from a gold standard and its consequences, such as altered constraints on money creation, government borrowing, and trade deficits.

Furthermore, Duncan discusses the impact of these changes, including increasing income inequality and implications for inflation and wealth growth. The conversation also touches upon the economic environment shaped by the pandemic and its unprecedented fiscal and monetary stimulus measures, which led to high inflation rates.

Despite concerns about high inflation, the economic recovery led to significant wealth growth, enough to pay off the national debt with some money left over.

They discuss the implications of the stimulus and the lingering effects it continues to have on the economy. Richard is a proponent of establishing a sovereign wealth fund for the United States to finance investments in new industries and technologies, such as artificial intelligence, nanotech, biotech, fusion, quantum computing, and genetic engineering. The U.S. currently invests half as much in research and development compared to decades ago, leading to a slowdown in productivity and economic growth.

Additionally, Richard raises concerns about potential market vulnerability from lower interest rates due to the unwinding of the yen carry trade and inflated asset prices in the U.S. He emphasizes the significance of establishing a sovereign wealth fund for the United States and encourages listeners to visit his website, Richard Dunkin Economics dot com, for more information on economic events and their potential market impacts.

Time Stamp References:
0:00 - Introduction
1:02 - Fed & US Money Creation
12:40 - The Pandemic Inflation
17:33 - Growth & Technology
22:05 - Pandemic Choice & Wealth
32:01 - Recent Inflation Causes
42:14 - Sovereign Wealth Funds
53:28 - Buyers of U.S. Debt?
1:03:35 - Dollar Reserve Status
1:08:24 - Fed Rate Cut Decision
1:12:35 - Yen Carry Trade
1:16:09 - Wealth/Income Ratio
1:19:18 - Wrap Up

Guest Links:
Website: https://www.richardduncaneconomics.com/
Twitter: https://x.com/papermoneyecon

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Richard Duncan is a renowned economist and author of four books analyzing the causes and effects of economic crises. His work, including "The Dollar Crisis" (2003, updated 2005) and "The New Depression" (2012), accurately predicted global economic disasters and were international bestsellers. His latest book, "The Money Revolution: How to Finance the Next American Century" (2022), discusses the transformation of the economy from Capitalism to Creditism and offers opportunities for growth. Duncan has a diverse background, having worked as an equities analyst in Hong Kong, global head of investment strategy at ABN AMRO Asset Management, financial sector specialist for the World Bank, and headed equity research departments for various firms. He currently publishes Macro Watch and has appeared on major news channels. His books have been taught at Harvard and Columbia, and he's spoken at prestigious events like The World Economic Forum East Asia Economic Summit. Duncan studied literature and economics at Vanderbilt University and international finance at Babson College.