The Disconnection of Our Monetary System

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We are basing a financial and economic system on interest that we get from the hydrological flows of the sun. We're depleting 10 million times faster than they were trickle charged by daily photosynthesis in the form of coal, oil, natural gas,. copper, other things. So how do you see that disconnect of our monetary system is treating these non renewable resources kind of as if they were interest when they're really drawing down capital? Yeah, that's the point that my old boss Jeremy Grantham at GMO often makes.

On this episode, financial historian Edward Chancellor joins Nate to give a meta-history of interest rates and human societies. With recent news of global financial turmoil in response to rising interest rates, taking a look at our history could help us interpret our present and plan for the future. How deeply entangled is this financial predicament that we’ve gotten ourselves into? Can we learn from the past to reshape a more stable monetary policy in the future, or are inflating financial bubbles (and popping them) simply in our human nature?

About Edward Chancellor:

Edward Chancellor is a financial historian, journalist, and investment strategist. He is the author of Devil Take Hindmost: A History of Financial Speculation and his latest book, The Price of Time, where he explains the story of capitalism is really the story of interest: the price that individuals, companies and nations pay to borrow money. He is currently a columnist for Reuters Breakingviews and a contributor to the Wall Street Journal, MoneyWeek, the New York Review of Books and Financial Times.

For Show Notes and More visit: https://www.thegreatsimplification.com/episode/67-edward-chancellor

To watch this video episode on Youtube → https://youtu.be/q5PWaYw6h5k