The Grant Williams Podcast Ep. 79 - Mark J. Higgins
May 10, 2024
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Author Mark J. Higgins discusses the importance of US financial history, from Alexander Hamilton to the present, highlighting key figures like Hetty Green. He shares insights on investor behavior, the cyclical nature of markets, and the current crypto craze. The discussion also includes mentions of Ray Dalio, Andrew Jackson, Robert Triffin, and Charlie Munger.
Understanding financial history is crucial for gaining insights into past economic decisions and their impact on present-day markets.
The evolution of US credit markets highlights a crucial shift in attitudes towards public credit, posing significant fiscal challenges requiring reevaluation of spending strategies.
Deep dives
Importance of Understanding Financial History
Understanding financial history is crucial as it provides insights into past economic decisions and their impact on present-day markets. Delving into historical events like Alexander Hamilton's financial reforms can offer valuable lessons for current financial situations. Alexander Hamilton's innovative approaches in consolidating debt, establishing central banking, and raising tariffs set a solid financial foundation for the United States, emphasizing the significance of historical financial knowledge in shaping economic stability.
Evolution of US Credit Markets
The evolution of US credit markets from the early days of establishing financial credibility to modern-day challenges highlights a crucial shift in attitudes towards public credit. Post-World War II, the US transitioned from a practice of running up debts during emergencies and swiftly paying them back to accumulating long-term deficits. This shift, influenced by the nation's prosperity and global economic dynamics, poses a significant fiscal challenge requiring a reevaluation of spending and debt management strategies.
Breton Woods System and Transition from Gold Standard
The Breton Woods system played a pivotal role in shaping post-World War II financial norms, allowing the US to maintain deficits and serving as the world's reserve currency tied to gold. However, the inherent imbalance between the US dollar and gold reserves led to the collapse of the Gold Standard in 1971, marking a critical shift in global monetary systems. The complexities of trade deficits, reserve currency obligations, and gold backing underscore the intricate challenges faced by the US in managing its financial history and future sustainability.
Joining me for this episode of The Grant Williams Podcast, is author Mark J. Higgins who has just published his excellent new book ‘Investing in US Financial History.’ We begin by discussing the overall importance of understanding financial history and segue into a conversation about the comprehensive narrative of the US financial system from 1790 to the present which his book provides. Mark highlights the role of key figures such as Alexander Hamilton, discusses the establishment of the Federal Reserve in 1913 and introduces one of the least-known, but perhaps biggest trailblazing characters in US financial history: Hetty Green. Higgins also shares his insights on investor behavior and the cyclical nature of markets, as well as his views on the current crypto craze. Throw in Ray Dalio, Andrew Jackson, Robert Triffin and Charlie Munger and there’s something for everyone in this excellent conversation.
Every episode of the Grant Williams podcast, including This Week In Doom, The End Game, The Super Terrific Happy Hour, The Narrative Game, Kaos Theory and Shifts Happen, is available to Copper, Silver and Gold Tier subscribers at my website www.Grant-Williams.com.
Copper Tier subscribers get access to all podcasts, while members of the Silver Tier get both the podcasts and my monthly newsletter, Things That Make You Go Hmmm… Gold Tier subscribers have access to my new series of in-depth video conversations, About Time.
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