Shift from regulated to deregulated financial markets

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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.

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.

Watch on YouTube: https://youtu.be/F_DhZaVoflA

More info, and show notes: https://www.thegreatsimplification.com/episode/118-michael-every