Summary of The Price Of Time - Edward Chancellor

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00:00:00 - 01:00:00

Chancellor discusses the idea that low interest rates can lead to an extension of the structure of production, or the investing in projects with longer payback dates. He cites economist Joseph Schumpeter and says that the low rate of interest has kept many businesses afloat, and has even caused the "zombie" phenomenon to spread around the world.

00:00:00 Edward Chancellor's new book, "The Price of Time," discusses the history of interest and its various definitions. Author Bill White, a respected economist, highly recommends the book, while Martin Wolf, a financial journalist, finds it unbalanced and dangerous. Chancellor will be speaking at the library of mistakes at 7:15pm, and will answer any questions audience members may have.
00:05:00 The video discusses the idea that time is valuable, and how economists often talk about the notion of time preference. Thomas Wilson, a diplomat and lawyer, invades against interest, reciting all the well-known criticisms of interest. He then says that the user is a time seller, and time is precious. This insight is taken up by Benjamin Franklin, who wrote the pamphlet "The Time is Precious." Walter Mitchell conducted a study on deferred gratification, and found that people are more likely to choose something they want if they know it will be available in the future.
00:10:00 The video discusses Edward Chancellor's research on the Marshmallow Test, which found that children defer consumption in order to receive an extra reward of a march mario. Irving Fisher wrote about anticipation being at a discount, and this is reflected in the investment process. John Law, a Scottish economist, wrote about anticipations being at a discount and how this affects the value of shares. Ludwig von Mises said that without a discount rate, an apple in a hundred years time would be worth the same as an apple today. William Petty, an English economist, said that without interest, one acre of land would be worth the same as 20,000 acres of land. This understanding of the investment process was formalized by John Burr Williams, the American economist, in his theory of investment value.
00:15:00 This video discusses the impact of law on the economy, with particular emphasis on the central bank's ability to bring down interest rates. Edward Law, a Scottish economist, is discussed in detail, and his ideas on low interest rates and speculation are mentioned. His later ideas on time in production are also mentioned.
00:20:00 The video discusses the idea that a lower interest rate can lead to an extension of the structure of production, or the investing in projects with longer payback dates. It cites economist Joseph Schumpeter and says that the low rate of interest has kept many businesses afloat, and has even caused the "zombie" phenomenon to spread around the world.
00:25:00 The video discusses how businesses can lose their competitive edge and how the rate of interest affects this. The author argues that the rate of interest is important for regulating consumption and ensuring an orderly traffic across time.
00:30:00 In his book Sylvian Brunei, investor Seth Claman writes about the consequences of low interest rates, which have turned the world upside down. He cites Carol Lewis, who states that the idea of persistent low rates having wormed its way into everything investor thinking has been a long time coming. Claman also discusses how upside down conventional values have become two eggs being cheaper than one, a puff being worth a thousand pounds, and time being valuable worth a thousand pounds a minute.
00:35:00 Professor Edward Chancellor explains how interest rates affect inequality, and how policymakers have been trying to increase asset prices in order to stimulate demand. He also discusses how interest rates affect our everyday lives.
00:40:00 The author of this book argues that there has been a turn in the market, and that the era of low interest rates is coming to an end. He also points out that companies are getting bigger and that rent-seeking is on the rise.
00:45:00 In this video, Edward Chancellor discusses the consequences of financial repression, which he argues is leading to inflation and a decline in household wealth. He also discusses the potential for gold to be a safe investment in this environment.
00:50:00 The video discusses how, in an environment of low rates, companies are not investing as much as they used to, leading to stagnation. It also examines how low rates can lead to increased arbitrage opportunities, and why this may be sustainable in the long run.
00:55:00 Edward Chancellor, a prominent economist, discusses the effects of low interest rates on the economy and the decline in Central Bank credibility.

01:00:00 - 01:05:00

In the video, Edward Chancellor discusses the value of time and how it can be used wisely to advantage. He argues that time is the most valuable commodity a person has and should be used wisely, as it can't be replaced.