Economy Exactly 40 years ago today F.A. Hayek

[Eric Silva 2.0]

"Has monetary policy ever done anything good? I don't think it has. It has only done harm. That's why I'm pleading for denationalization of money."

At time 5:20..... Hayek advocates for something like Bitcoin and crypto. He called it "the solid". The man interviewing Hayek (Blanchard) calls it "The Hayek".

At 10:10....."People are becoming more aware that the present monetary system is not really satisfactory." In regard to the third world debt crisis

At 11:00..... Hayek doesn't believe in returning to a gold standard but does advocate for a transition period as we return to a "stable" currency. They agree this is fundamental to the survival of Western Civilization.

At 19:25..... "I don't believe we shall ever have good money again." He suggested introducing a new form of money that governments can't stop (Bitcoin? or some other form of money)

At 19:40.... Buchanan, What do you think is the major threat to Western Civilization? He offered ideas like another world war, political or economic issue. Hayek thought the major threat was pacifism. He thought Russia could become powerful. The west would then have to bend their ideas or ways to satisfy Russia.
At 21:50...."I am greatly alarmed at European pacifist movements"

At 23:00.... On Keynes, "He had the illusion that a little inflation is good......He was not a very competent economist at all. He was a great man but I don't think he was a great economist."

The conclusion starting at 25:00 is worth listening to. He (Buchanan) is very early but describes the world we live in today in my opinion.

 

[Yehudim]

And 40 years later, US currency is perfectly fine.

 

[HOLA]

At 23:00.... On Keynes, "He had the illusion that a little inflation is good......He was not a very competent economist at all. He was a great man but I don't think he was a great economist."

He was a great economist and something that is often overlooked about him is that he was a great investor as well. iirc he generated something like a 12% annual return from the late 20's until the mid 40's, which might not seem incredible at first, but he did it mostly during the Great Depression, which definitely makes it impressive. His outperformance relative to the overall market was significant.

Some of his ideas greatly helped me out when I was starting out:

“As times goes on, I get more and more convinced that the right method of investment is to put large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes. It is a mistake to think people limit their risk by spreading too much between enterprises about which one knows little and has no reason for special confidence.”

 

[CantCucktheTuck]

And 40 years later, US currency is perfectly fine.

Keynesian economics working as intended.

 

[Eric Silva 2.0]

He was a great economist and something that is often overlooked about him is that he was a great investor as well. iirc he generated something like a 12% annual return from the late 20's until the mid 40's, which might not seem incredible at first, but he did it mostly during the Great Depression, which definitely makes it impressive. His outperformance relative to the overall market was significant.

Some of his ideas greatly helped me out when I was starting out:

“As times goes on, I get more and more convinced that the right method of investment is to put large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes. It is a mistake to think people limit their risk by spreading too much between enterprises about which one knows little and has no reason for special confidence.”

There is part towards the end where Hayek talked about how Keynes made a fortune in commodities.

 

[Patrick Jane]

Bitcoin is worthless, but Hayek is based.