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Shift from regulated to deregulated financial markets
The financial market interest rates are now based on the 10-year note with a spread, reflecting the shift from regulated to deregulated financial markets since the 1980s. This shift is characterized by the transition to a neo-liberal, neo-classical model where everything became deregulated in the West post-1980, and after the collapse of communism globally, except for a few countries. This shift resulted in a one world economy where the Fed funds rate and the 10-year U.S. rate form the base rates for borrowing across the world, leading to free movement of money globally with the aim of seeking profitable investments. However, the speaker criticizes this system as fundamentally flawed and inefficient.