Financial analyst Michael Every joins Nate Hagens to discuss global macro trends, economic accuracy, inflationary pressures, and the shift towards a new economic system with lower energy throughput. They critique mainstream economic models, explore Modern Monetary Theory's impact, and highlight the implications of a Trump re-election on fiscal policy. The conversation also touches on societal motivations, wealth inequality, and the need for a holistic approach to address current meta crises.
The interconnectedness of political tensions and GDP growth challenges economic measures accuracy.
Incorporating multi-disciplinary insights is crucial for understanding macroeconomics and financial markets.
Modern Monetary Theory and heterodox economic theories have the potential to reshape conventional economic paradigms.
Balancing economic policies with socio-political realities is essential for navigating national security concerns and economic sustainability.
Deep dives
Challenges of Defining the Meta-Crisis
The term 'meta-crisis' refers to a comprehensive challenge to societal precepts and systems. The discussion highlights the evolving definition of this term amidst global uncertainties, including climate change, AI, geopolitical tensions, and economic inequalities. The speaker contemplates the origin and impact of the meta-crisis, acknowledging the complexity of interconnected issues shaping our future.
Multi-disciplinary Approach to Understanding Economic Systems
The conversation delves into the speaker's multi-disciplinary approach in analyzing economic systems. By incorporating insights from history, economics, and political philosophy, the speaker emphasizes the need for a holistic understanding of macroeconomics and financial markets. This analytical method involves exploring interconnected dynamics and anticipating challenges through diverse perspectives.
Implications of MMT and Heterodox Economic Theories
The discussion explores Modern Monetary Theory (MMT) and heterodox economic theories in reshaping conventional economic paradigms. The speaker underscores the significance of MMT in analyzing fiscal policy and structural economic issues. Through critical assessments of economic models by scholars like Steve Keen, the conversation highlights the potential for paradigm shifts in addressing economic complexities.
Balancing Economic Policies and Socio-political Realities
The dialogue delves into the complexities of balancing economic policies with socio-political realities. By examining the interplay between fiscal stimulus, interest rates, and geopolitical tensions, the speaker underscores the challenges of navigating national security concerns and economic sustainability. The discussion underscores the importance of aligning economic interventions with broader societal goals amid evolving global dynamics.
The Role of Markets in Social Constructs
Markets are portrayed as social constructs influenced by cultural and religious norms such as weekends off for traders, demonstrating that market functioning is subject to human-made restrictions like working hours. The podcast suggests that markets alone cannot address societal challenges without interventions like weekend breaks, showcasing how market limitations are shaped by social agreements and conventions.
Balancing Government Involvement and Free Markets
The podcast advocates for a middle ground between excessive government intervention and pure free market ideology, emphasizing the need for a balanced approach that prioritizes social considerations. It critiques both big government solutions and overly idealistic free market beliefs, proposing a nuanced system that aligns economic activities with broader social and environmental goals.
Economic Implications of Environmental Factors
Discussions in the podcast touch on the importance of integrating ecosystem impacts into economic analyses and policy frameworks. The podcast highlights the growing necessity of addressing climate change, ocean issues, and biodiversity within economic analyses to mitigate the adverse effects on economies and societies. It underscores the urgency of incorporating environmental considerations into economic decision-making to ensure sustainable and resilient futures.
On this episode, Nate is joined by financial analyst Michael Every to discuss global macro trends in economics, politics, and social movements. By taking a wide-view lens of current events, we can better see how seemingly isolated events interconnect and what mainstream economic theories tend to miss. What do rising political tensions and dissatisfaction around the globe amidst increasing GDP tell us about the accuracy of our economic measures? How much are geopolitical conflicts and supply chain disruptions contributing to current inflationary pressures? And what can we learn from current economic models as we steer towards a new system with lower energy throughput in a multipolar world?
About Michael Every:
Michael Every is Global Strategist at Rabobank Singapore analyzing major developments and key thematic trends, especially on the intersection of geopolitics, economics, and markets. He is frequently published and quoted in financial media, is a regular conference keynote speaker, and was invited to present to the 2022 G-20 on the current global crisis. Michael has lived and worked in 9 countries and been in the industry for nearly 25 years, with previous roles at Silk Road Associates, the Royal Bank of Canada, and Dun & Bradstreet. He holds a BA from Lancaster University, and a master’s degree from University College London.
