The Center of the Universe

St Croix, United States Virgin Islands

MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

Reuters Insider Videos

Posted by WARREN MOSLER on March 23rd, 2011

Warren on Reuters Insider:

Deficit Cuts Could Lead to Depression, Hedge Fund Head Says

After the Quake: Japan Avoids Currency Manipulator Status

The Fed Has It All Wrong, Hedge Fund Manager Mosler Says

30 Responses to “Reuters Insider Videos”

  1. Joe Says:

    Awesome segments, Warren. You need to be a regular guest!

    Reply

    SethM Reply:

    I 2nd that: great, interviews. Wonderful to see.

    Reply

    WARREN MOSLER Reply:

    thanks!

    Reply

    rvm Reply:

    That’s the way to go – invade mainstream media – and the more often, the better.

    Reply

    WARREN MOSLER Reply:

    thanks!

    and thanks to my brother, Seth, who lent me the jacket/shirt/tie

    Reply

    Oliver Reply:

    :-D

    I 3rd that. You came across very well & that kind of format suits you (as does your brother’s suit) because you can convince with facts and details. No shouting and bullying needed as on Fox.

    Reply

    Mario Reply:

    agreed. the more of these the better. I really enjoyed them. It seemed that the hosts really appreciate the fresh ideas too. Great segments.

    Are you’re doing more? (if so…may I recommend a new suit just so one gets suspicious. LOL).

  2. Keith Newman Says:

    Enjoyed the segments. Nice to see you getting into these programs.
    Have to say I didn’t understand why a 115 bais point spread between 10 and 30 year treasuries means a 6% implied rate on 30 year treasuries…

    Reply

    SethM Reply:

    This doesn’t exactly answer your question but Mebane Faber has a nice graphic from Gary Shilling’s book that shows the return after a 1% reduction in interest rates along the yield curve. http://www.mebanefaber.com/2011/03/23/returns-to-bonds-vs-changes-in-interest-rates/

    Reply

    WARREN MOSLER Reply:

    check out the forwards 25-30 years out of the long tsy 0′s

    the 30 year 0 touched 5.10 maybe a few weeks ago, and you can use the libor rates out there for your calculation of funding costs
    as the tsy’s are libor + and the long 0′s have serious positive convexity to adjust for as well.

    Reply

    RSG Reply:

    where do you find those on bloomberg?

    Reply

    Ed Rombach Reply:

    Those particular videos would not appear on Bloomberg because we (Thomson Reuters) compete with them.

    WARREN MOSLER Reply:

    :)

    can you tell us how many views they are getting?

  3. Matt Franko Says:

    Warren & Ed Rombach,

    Suggestion for follow-up: Perhaps see if Ret V-Chairman Kohn and Seth Carpenter would appear on your Reuters show here to pick it up where this paper left off:

    http://moslereconomics.com/2010/09/28/seth-carpenter-paper/

    That may make for some interesting follow-on programming some time…

    Resp,

    Reply

  4. LetsGetItDone Says:

    Warren, I really liked the interviews. Everything is so commonsensical. You really are Mr, Cool. We should run you against Obama. he couldn’t possibly “outcool” you

    Reply

    WARREN MOSLER Reply:

    thanks!

    bring him on!
    :)

    Reply

  5. Greg Marquez Says:

    I thought it was great. Thanks keep up the fight. I finally understood one of the points you were making.

    Reply

    WARREN MOSLER Reply:

    good to hear that, thanks!

    Reply

  6. Kristjan Says:

    It was very good Warren.:) How many viewers does It get? Does anyone know?
    They can’t ignore you Warren.

    I was just going to say It but oliver already said It:”No shouting and bullying needed as on Fox.”

    That’s the thing if you were debating with Peter Schiff there would be no point going there at all. He has those short assertive slogans that get through.

    Reply

    WARREN MOSLER Reply:

    worse, he strings about 9 of them together and you have to go back to the first and discredit each one.

    Reply

  7. wh10 Says:

    And let’s not forget… Thanks Ed and your company for giving Warren the opportunity to speak!

    Reply

    Mario Reply:

    yes thank you Ed and team!!!

    Reply

  8. Peter D Says:

    Warren steps into the lion’s den!
    See this thread at Mises.org. Looks like it is still going on…

    Reply

    Keith Newman Reply:

    I read the Mises thread last night. Warren showed remarkable patience. I think he is trying to attain sainthood.

    Nonetheless I must admit that MMT ideas are difficult to grasp if you have a mainstream economics degree and probably more difficult if you’re invested in fringe views like the Austrian crew. I have a mainstream degree from 25 years ago. My biggest hurdle was to free my mind from insidious false preconceptions. Poor Marc Lavoie, whom I did a couple of courses with last year, demonstrated remarkable patience in going through monetary operations and their consequences with me, repeatedly.

    Many of the ideas are simple as Warren points out – simply a monopoly issuer of currency. BUT so much is jarring in the extreme. Money as points on a sports match scoreboard? People lie, cheat, steal and kill to get money. So much of our lives revolves around it… And yet operationally it’s only points in a football game? What? ETC. ETC. It takes a while to sink in.

    And the US monetary system is quite opaque what with reserve requirements and the vast web of the treasury tax and loan accounts. I learned about the Canadian system which is functionally the same but is quite simple- zero reserve requirements, only a handful of banks involved in operations. Most of how the system works is explained on the Bank of Canada website.

    Reply

    WARREN MOSLER Reply:

    one of the posted started supporting me and after a few more comments it’s all gone completely silent.

    there shouldn’t be any conflict between mmt and any of the actual schools of economics, whatever that might mean.

    the conflicts should be with each other, as they are on this website.

    Reply

    Art Reply:

    Keith, two words: Barry Bonds. There are many others of course. Plenty of people have lied, cheated, and stolen for mere points.

    Hell, they’ve even killed if any of those stories about high school sports in Texas are true. :)

    Reply

  9. Art Says:

    Will be sharing this on Paul Ryan’s Facebook page early and often!!!

    Who’s that mysterious insider at Reuters??? :)

    Reply

    Art Reply:

    Wow — FB actually allowed me to post it on his page rather than leave it as a comment — not sure whether that’s a FB snafu or if the Congressman has an “open wall” policy. :) Here’s what it says, just in case it’s taken down soon:

    Warren Mosler on deficit/debt hysteria/nonsense:

    http://tinyurl.com/reuters-mosler-01

    http://tinyurl.com/reuters-mosler-02

    FYI, Mosler’s early research was funded by the same circle that Jack Kemp ran with. Time to exorcise those Bob Rubin demons and rediscover your inner supply sider, Congressman!!!

    Reply

  10. Art Says:

    [First attempt didn't take, sorry if this ends up a duplicate.] Somehow FB actually let me post on Ryan’s page – oops! It didn’t stay up long, and I didn’t think to grab a screen shot, damn it. Here’s what it said:

    Warren Mosler on deficit/debt hysteria/nonsense:

    http://tinyurl.com/reuters-mosler-01

    http://tinyurl.com/reuters-mosler-02

    FYI, some of Mosler’s early research was funded by the same circle that Jack Kemp ran with. Time to exorcise those Bob Rubin demons and rediscover your inner supply sider, Congressman!!!

    Reply

  11. Ivan Says:

    I was thinking about the debt service issue. As debt service is nothing other than another government expenditure, there are no operational impediments to meeting debt service at any level. Obviously, we’ve put in place voluntary restrictions such as a debt ceiling but that’s only politics. However, let’s assume potential GDP is $14 trillion and aggregate private sector demand ex debt service is $12 trillion. If debt service is $2.5 trillion, then the government must run a surplus in everything else or aggregate demand will far exceed potential GDP. The potential problem would be runaway inflation and the limited ability of the government to do much of anything.

    In this situation, the government would have to stop issuing Treasury securities and instead pay some small rate on reserves at the Fed. In all likelihood, this would trigger significant selling of dollars….which would also be inflationary. Currently, the output gap is so large that debt service isn’t an issue. However, 10 years down the road of $1 trillion deficits, this could become a problem.

    I’d love to hear your thoughts on this. Maybe (hopefully) I’m missing something.

    Reply

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>