Summary of Edward Chancellor - The Price of Time With Jim Walker

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00:00:00 - 01:00:00

Edward Chancellor's book "The Price of Time" discusses the dangers of having zero interest rates, which lead to socialism. The book argues that an asset bubble will inevitably burst, leading to inflation and a decrease in real investment.

00:00:00 Edward Chancellor discusses his new book, The Price of Time, which focuses on the history of financial speculation. He notes that he is a friend of Jim Walker, and that he is excited to speak with the audience. He also notes that he has reactivated his Twitter account.
00:05:00 Edward Chancellor discusses the effects of low interest rates on the economy and the stock market. He argues that interest is the essence of capitalism and the easiest way to describe this is to say that when we talk about something being capital, what we're really talking about is the discounted future cash flows of some asset. He also discusses the role of interest in the allocation of capital, the valuation of assets, and the way it's an inducement to savings.
00:10:00 Edward Chancellor discusses the economic effects of low interest rates, including the role of interest in inflating bubbles and creating economic problems. He recommends that readers of his book, The Price of Time, should also read Jeremy Stein's 2002 speech on the subject.
00:15:00 Edward Chancellor's book "The Price of Time" discusses the dangers of having zero interest rates, which lead to socialism. Bastiat's quote "there's nothing new under the sun" is echoed throughout the book.
00:20:00 Edward Chancellor discusses the concept of "seen and unseen," and how it is relevant to the current state of society. He also discusses the issue of inequality and how it has increased due to financialization and asset price inflation.
00:25:00 Edward Chancellor discusses how inequality rises when the rate of return is lower than the growth rate of the economy, citing examples from the 1920s and the current economy. He argues that an asset bubble will inevitably burst, leading to inflation and a decrease in real investment.
00:30:00 Edward Chancellor discusses how the pursuit of inflation targeting has led to the current state of the economy, where the Federal Reserve is unable to dampen volatility and maintain asset prices. He goes on to say that this may lead to more financial crises in the future.
00:35:00 Edward Chancellor discusses how central bankers have become overcompetent and how this has led to inflation rates being mistaken. He also points out that low rates are not always responsible for creating wealth inequality, but can be responsible for the creation of zombies--high-tech ventures that don't return a positive return on investment.
00:40:00 Edward Chancellor discusses how central bankers have been able to keep interest rates low, even as rates on other investments have risen. He also discusses the difficulty of persuading financiers of the merits of saving, and the role of persuasion in central banking.
00:45:00 Edward Chancellor discusses the impact of market manipulation on interest rates. He argues that the price fixing has led to an endless series of problems in the capitalist system.
00:50:00 Ed Chancellor discusses the problems of attempting to target inflation and the various factors that can influence inflation. He argues that the boom-bust cycle is a normal part of the economy, and that we should not be against it in itself. He goes on to say that we have not allowed the bust to take place after 2008, and that this is the cause of our current problems. He recommends that we use the technology we have now to avoid future cycles of boom and bust.
00:55:00 Edward Chancellor talks about the inevitability of cycles in capitalist systems, how the current debt crisis is similar to past crises, and how we will have to live with the consequences.

01:00:00 - 01:25:00

In this video, economist Edward Chancellor discusses the risks associated with low interest rates and monetary easing, as well as the consequences of government using inflation to pay off debt. He also discusses the current state of the U.S. economy and the challenges it faces.