The Grant Williams Podcast

The Hundred Year Pivot Ep. 5 - Charles Calomiris

19 snips
Jun 3, 2025
Charles Calomiris, an economist and emeritus professor with a rich background in academia and finance, joins to discuss America's fiscal future. He warns of the looming threat of fiscal dominance, where unsustainable debt forces inflationary policies. The conversation dives into the moral and societal roots of the financial crisis, emphasizing the decline of civic responsibility. Calomiris also reflects on the potential for transformative leadership in crises, advocating for a renewed sense of purpose and integrity in confronting economic challenges.
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INSIGHT

US Faces Fiscal Dominance Crisis

  • US fiscal dominance means government debt forcing inflation policies to override central bank control.
  • This stems from political gridlock and reluctance to reform big entitlement programs like Social Security and Medicare.
INSIGHT

Bond Market's Agency Problem

  • Bond markets stayed calm due to agency problems and hedging demands.
  • Fund managers prefer short-term consensus, ignoring long-term fiscal risks until now.
INSIGHT

Political Selfishness Blocks Reform

  • US fiscal crisis might still be 2-3 years away if corrective action happens.
  • But political selfishness of older voters blocks necessary entitlement reforms, worsening long-term sustainability.
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