A Brief History of Capitalism. Yanis Varoufakis Interview



you're about to watch a great interview on T YT interviews if you want to watch them live members are the only ones who get to do that TYT Network comm / joined become a member enjoy the interviews as they happen hey T YT I'm Nomi cons we are here with our second time guest Yanis varoufakis who is the former finance minister of greece you may recall and he is the co-founder of the diem25 movement which we'll be talking about today and he has a new book out next to the the adults in the room which was a very large book that you wrote and now you have another one well advancing the room was the worst thing I've ever done in terms that of actually being totally in pain with every word that I wrote it was very painful to book to write and this was the happiest writing experience I've ever had hence the quick turnaround the quick turnaround the fact that yeah nine days the first draft first nine days because shut down it was a stream of consciousness I didn't have a table of contents I didn't know what what I was going to write I used no footnotes for the first time in my life you know no no references just try to imagine that I'm talking to my daughter about the economy and I'm trying to explain it in a way that would not elicit that come on dad you're being embarrassing again so the book is called talking to my daughter about the economy yep what inspired you to write this well it a couple of things firstly the deep conviction that most folks out there I have been come convinced that economics should be left to the Congress because it's difficult it's you listen to economy speak and you never understand what they say really but if we accept that the democracy is dead because our life is completely utterly ruled by economic decisions so if we believe that there's such a thing as an expert to whom we defer all economic decisions then what's the point of democracy yeah let's just not have elections anymore let's have the experts run the economy because the economy in the end in the world that we live in is everything this is a great fallacy it is not so and it is a greatest threat to democracy to believe that it is out so I had to write a book you know to explain it and to show how we can all make sense of it on of the economy by simply pushing economics as a discipline totally aside because economics is written in a language whose purpose is to make that which you can perfectly well understand and to phrase it in a way that there's no way you can understand it because economics understand only one thing monopoly so if they can convince you that you can't understand the economy then this is a great economic profit for them so funny I was reading the newspaper just today before I came in and there was this one line in an article about it was an advice column to business leaders and you know some of this entrepreneurial advice leadership advice and one of the lines was only try to control things you can control like you can't control the economy so you shouldn't try to control the economy so I find that fascinating because it's almost like they look at the economy as a deity and and you know the people have no say in this and it's exactly to say that it's democracy if you think about the defeat of democracy has been constructed along those lines along the lines that this economy is a machine that it's better left to the experts the technocratic agen of decision making think of 2008 financial sector collapsed all the sins of the finances and all the burdens that they created were shifted onto the shoulders of the weakest of citizens and the result is the discontent that now we can experience in the form of Donald Trump's presidency and what happened even when Barack Obama was sworn in he brought in the experts to fix it who are the experts the very same people that had created the catastrophe in the first place that you would never do this in engineering if you had employed an engineer to build a bridge that is that collapses you never employ the same and to rebuild it so we're doing something spectacularly problematic when it comes to economic policy and the result is this complete failure of our political system to legitimize itself which disturbing people away from the political system which in the end is the beginning of a kind of neo creeping neo-fascism neo-fascism we start with neoliberalism as a gateway drug and you lead to neo-fascism you see the problem with neoliberalism is that it is not a coherent economic policy never was neoliberalism was always facade it was always a sermon that was being sung after the event you know to justify what was being done anyway so take for instance the unleashing of Wall Street in the 1970s and then increasingly until the 1990s it was completely and shackled from all the New Deal constraints that Roosevelt and the New Deal had placed upon the bankers the reason why we had this liberation emancipation of the bankers from all constraints remember back in I didn't remember let's go back to the 1950s and 60s and they couldn't trade in derivatives they were facing more or less fixed exchange rates there were capital controls so they were really shackled and that was a period of capitalism where you had the highest growth of the lowest unemployment and the lowest inequality in the history of the world why were they unleashed it was not because of neoliberalism it was because the Bretton Woods system that the New Deal is a designed collapsed and we had a new situation where the United States economy went from being a surplus economy being a deficit economy and the deficit of the United States the trade deficit sucking into this this country the net exports of Germany Japan later China and it was financed by having the Chinese Japanese the Germans and their money to Wall Street and the loop closed but to do this you needed two unsightly the bankers and when you encircle the bankers you need to have a narrative an ideology or a religion if you want an explanation while you're doing it and that was really personable it was never economic policy ever but when the financial pyramids that were built on the basis of this new dynamic that has been brewing since the 1970s is no great wonder that average earnings in the United States has not recovered to the levels of the 1970s when those pyramids of private money of beds of financial paper that dominated capitalism collapsed in 2008 what you had was the collapsing of the legitimacy of the political system and slowly but steadily we had the creeping xenophobia racism but here in the United States and in Europe so yes the shenanigans that were covered up by a neoliberal political philosophy religion if you want led to the inclusion of a system which in the end yield something similar to the 1930s the rise of discontent together with racism do you switch off immediately but it's good for audience I'm how I start because she's insane so I start with a question he relates to a city she goes into a school very in a very very sweet nice performance art school which is very proper regional and progressive you know liberal in American terms so I asked her the question okay darling why was it that the British invaded Australia and not the Aborigines invading Britain is it because the British were clever okay they had ships they had armies the aboriginal never did they didn't even have writing it is because abilities were not a smart so that's you know you you hit the nail on the head and you have to have a kind of scientific economic analysis that explains that without any reference to differences in the DNA of the peoples of Australia the indigenous ones and Britain so that's how the book beans so let's talk about some that you discuss in the book the black magic of banking it is isn't it completely black and totally magic most folks are there and food that this is true in your own head believe that when you borrow money from the bank that money has been deposited by somebody else but you know Jack deposits money in the bank and then Jill goes to the banker and gets money that the banker takes from Jack's deposits and makes a profit from the interest rate differential not true if you go out there to the cutting into your bank manager you go to the bank and you ask for a loan you get a hundred thousand you know to invest in a in a restaurant in a cafeteria whatever or buy a house or car whatever all that happens is at the bank simply types a hundred thousand into your account out of thin air where did where does the money come from nowhere from thin air and then you put your card in the ATM and suddenly have a hundred thousand then those digits appear there that that was simply the act of typing and then what you do is you wire that money to the land or from home you buy the house or the vendor of the salt in the car or to the landlord who is renting out the space of your restaurant your cafeteria and those digits migrated from the part of the spreadsheet which is yours to the part of the spreadsheet that is the vendors that's all what happens and what the bank hopes is that by affording you this opportunity you will create a restaurant you will have a car that helps you get the job and you will repay the money with interest so it is a little bit like this is what I'm telling my daughter in the book the banker being this sorcerer this magician who has the opportunity or the capacity to put his hand through the timeline reach into the future grab value that has not been created yet from the future bring you to the present to give it to you so that you can invest it to create the value that you need to create in order to repay the future so it is an act of magic and it was always an act of magic that was my next question from antiquity the ancient Greeks you click you know that they have a wealth of coin which is known as man that comes from my word that has the twin meaning of law and to believe so it has value because the law says that he does and it has value because you believe that does and I believe that do you believe that it does so we have a kind of convention that's magical isn't it but there isn't why I think this is important and I've developed a chapter this is because if you give so much in men's power to a banker a person any member society to reach into the future and grab value that has not been related yet to bring into the present then this person to the extent that he is a privateer and usually it is a he I'm not going to say he or she who maximizes on profit why not bring a lot more value back and a lot more value until at some point the present cannot produce the value that it needs to do in order to repay the future and then you have a huge crisis and then what happens because the bank is not just a company it is the mediator the intermediary between the future and the present and the circuit it's a bit like our blood vessels in the economy they're too big to fail and then you and I have to so when they their bets pay off their profits are theirs when their bets fail their losses are ours right so this is pure socialism for the bankers and unfettered market forces and competition for the rest of us and the result is in an unsustainable economy so it's interesting because the next chapter I believe is or perhaps not as of a couple of chapters down I you you do discuss a new I don't know if it was at a currency what would you call Bitcoin blockchain current cryptocurrency I guess is the best term for it the it seems like that comes from nothing also that's right but that is not the criticism of Bitcoin what am my description of Bitcoin right is that it is our generations version of the fantasy of a political money before digitization we had the same fantasy invested in gold the idea that the currency must have value independently of society so gold has value that is independent of our political process and it comes from nature we cannot conjure it up alchemy has failed to turn dust into or lead into gold so we think about it the Great Depression The Grapes of Wrath with the result of this fantasy that we need to tie up the value of our money in the quantity of our banknotes to the quantity of gold that we have because if we allow this to be untied then we allow pulling the political system the Fed the Treasury Congress to decide how much money there is an economy that is no no no because money should not be political that is a fantasy money will always be political as well because think about 1932 why was the Great Depression ended because if they are took the United States out of the Gulf's and he ended this fantasy and he started printing dollars and put them to work as well as US Treasuries and put them to work in creating the jobs and economic processes that will generate the value so that yes the quantity of money increases for political reasons because politicians decided that it needs to increase during a Great Depression but at the same time you have the quantity of commodities increasing and the number of jobs increasing so the ratio between output and money did not go up so you didn't have inflation and if you hadn't that the United States would have been a basket case after 1932 like it was between 1929 and 1932 so if we don't get rid of this fantasy of a political money then we are firstly we are creating the circumstances for the next crisis and secondly we're denying ourselves of any instruments by which to defeat the crisis once it happens now bitcoin is nothing more than the digital version of the gold standard of this fantasy what is the idea behind Bitcoin bitcoin is a technology which is being utilized in order to create a currency the technology blockchain is an algorithm it is absolutely brilliant whoever invented it and we don't he remains anonymous under Japanese pseudonym or she may be you know needs to be awarded all Nobel Prizes at once from vegetation when mathematics but we are from physics to literature because it's such a beautiful piece of software design and why is it so fantastic it allows us to organize lots of activities without having central control where the community is effectively self policing the community is policing the community on behalf of the community that is beautiful and I understand why bitcoiners are so ecstatic and they become almost religious fundamentalists regarding Bitcoin the Bitcoin technology but the idea that you are going to build a currency on this in order to have a quantity of money that is determined by the algorithm independently the political process this is very similar to saying that you're going to tie the quantity of money to how much gold we can dig up from the earth and if we imagine that Bitcoin became the global currency we will go straight into a Great Depression because the quantity of of bitcoins is already is wired hardwired into the algorithm it increases very slowly and by two twenty-one some point stops increasing but economic activity cannot stop increasing so if economic activity continues to expand as it should and the quantity of money is constant you have a deflationary process because the correspondence between the quantity of money in the quantity of goods and services is going to be turning in such a way that now we're going to have less money available per unit of output which means that the prices are going to start falling if prices start falling we have a disaster you for a very simple reason if the price of you know coffee comes down but they're all the other prices remain the same that that's great for you if you drink coffee but if all prices come down by 10% every day or every month you know that tomorrow prices will be low lower than what they are today constantly well why buy something today if you can wait until tomorrow to buy it more cheaply but if all of us to think that way sales collapse and you have huge unemployment this was this is you know the toxic effect of deflation so the the fantasy of a political money is highly toxic and perfectly capable of blowing up a capitalist economy in a way which is tell you the detrimental to the weaker members of society if it's a decentralized currency Bitcoin and you know it's it's not tied to any one political you know organization or country state no state exactly then then if their goal is to make it a global currency or I don't know how they would necessarily frame it it was ever happened but I mean for the sake of argument I mean is deflation even possible of course if it happened let's imagine that you know some divinity to snap its fingers and we had no other cars except Bitcoin we would go into very quickly into a massive global recession and the global order as we know it would simply be in turmoil so um I believe it was Goldman Sachs this week or last week or maybe as Morgan Stanley I should know this I they announced that they are going to be setting up a Bitcoin unit sure why speculators yes Pete remember tulips lots of people made a lot of money so if Goldman Sachs exists it existed back then I'm sure it didn't sample it would have had every reason to have a tulip desk right but that is not interesting they will they will speculate on anything that has speculative value and look at the fluctuations in the value of Bitcoin it's owned by the weights on the currency nobody's actually using it to buy and sell things no gate no one gets their wages paid in in in Bitcoin tiny maybe some people maybe ten people in Seattle I don't know but that's not economically significant macroeconomic is a significant it people only buy a Bitcoin because they hope that the value will go up it's a pyramid yeah exactly so what other points of wisdom have you given your daughter and this book big important pieces of information that those who have children or know other young people could share well the what I would like them to get out of the spoke as I said before is the feeling that economics Matakana that economy is absolutely intertwined with everything they care for from the way that they make ends meet if they do to theater to literature that our best insight into how a macro economy works comes from Shakespeare and from Sophocles not from economics textbooks and the cosmic drama that unfolds everyday in capitalism between forces that are clashing behind our backs shaping our lives so let me give you a couple of examples of this take the labor contract the labor contract is a bit of a tug of war between worker and employer the employer I would like to pay less and extract more work from the work that's not that's not sure you can this is not a criticism it's a fact but suppose that again you have a divinity stamps its fingers on behalf of all employers and imagine therefore that all workers are immediately brainwashed to want to work very hard for no money at all except for you know some sustenance that goes into their veins through some machine it's created dystopia matrix and matrix like dystopia capitalism would collapse because the dream of reverie employer which is maximum allowed by the workers for a minimum wage means that they would nobody will be able to afford their output their products so you have a capitalist system which is trying to squeeze more work and productivity out of workers at lower and lower wages and the more it succeeds in doing that the greater it crises that it has this is a bit like you know Mary Shelley's Frankenstein Frankenstein was a good man she was trying to defeat death his wife had just died and he just hated the idea of life he wanted to bring her back he wanted to stop people from suffering death so the result is he put all his effort and his science into creating the thing which then killed him if you look at software so the Oedipus myth the only reason why it was it's an interesting interesting story is because his father was was told by the Oracle that his son Oedipus if he was allowed to grow up would you know in the end would murder him so he tries to murder the little baby he actually gives him on to a shepherd and so you take him out to the woods and kill him the shepherd cannot bring himself to do it so he in the end this little child grows up in a royal family in Corinth he doesn't know that he's the son of the king of Thebes so he's now traveling around Greece and he encounters his father and there is a first incident in the history of humanity of road rage and so they they fight as to who has the right-of-way he kills his that the only reason is because his dad was fearing his death so think about investors today they are fearful of investing in good quality jobs because they fear that the the demand will not be there for the products of these quality working processes so they don't invest and because they of the fear there prognostication their Dyer produced occasions are confirmed just like it was his father so what I'm trying to do with this book is to to say forget economics economics is written in a way that can make your your brain hurt without any benefits because you were not by understanding economics you will not understand the economy but try to think about economic issues and use whatever resources you have at your disposal whether there is your exposure to sport to drama to poetry in order to do this because otherwise our democracies are in peril well the book is called talking to my daughter about the economy or how capitalism works and how it fails by Yanni's Ferro faculties but I do want to talk to you about the democracy in Europe movement because last time you are in New York and we we had a chance to have a conversation you were gearing up for the launch and now you have launched so what is what is DM DM is an attempt to bring Europeans together and to do something that we have not done in the last 80 years of a majestic horrible crisis to ask the question okay we have a systemic European crisis how can we address it systemically as Europeans you would have thought that this is the first question that we should have asked well it's it's one that we still not still have not asked the European Commission the European Parliament European governments have never asked this question they ask themselves yep trivial questions such as what are we going to do with there with Italian banks what I'm going to do about the Greek public debt what are we going to do about interest rates in Germany but nobody has looked at this as a systemic crisis in need of a system systemic solution and until we do this and we engage Europeans independently whether they're German Greek Dutch Portuguese since we are in this together we have to bind together and create a political force that contests the European Parliament elections next year in May 2009 teen and starts changing the debate in Europe so that we face up to the problem that we have as Europeans what are the estimates I mean if this goes as probable as as planned do you have target goals what percentage of parliament do you expect to win over times it's scalable no we don't because this is not the important thing I need any case we are Democrats we believe that our job and duty is to put together credible moderate but at the same time uncompromising agenda policy agenda similar to what FDR did in 1933 in this country that's radical right but you know the United States would not have existed the way it is today we will not have survived the various trials even in 2008 the great shock absorbers of this country that kept you from suffering a great depression like the one we have in Greece today where all the institutions created by FDR and then you do so yes he was quite radical at the time but at the same time he was not exactly a communist or a lefty he was a patrician who understood so the only way of ensuring with capitalism that does not collapse completely it's by shoring it up so we have we're putting together a policy framework who called the European ideal surprise surprise actually the European green new deal to be more precise because we live in the era of climate change and the terrible terrible prospects for our planet and what we care about is putting these two Europeans and saying to them look there is an alternative here this we will explain to you if you want vote for it great if you don't want to vote for it great again we're Democrats we don't believe that we have all the but we want to change the debate we want to end this cacophony this noise which only benefits the xenophobes the race is the disintegration is those who want to disintegrate Europe and the park upon a nationalist campaign in their own little fiefdom if we manage to do that we'll be very happy and we also think that you know success is best looked at as a symptom of your efforts not as the main aim our aim is to change the debate and to democratize the dialogue so for those who aren't following the intricacies of EU politics in each of these countries that do have far-right movements I mean we see it in countries that we never thought this would ever happen again what I mean we hear the noise but in numbers I mean has the far-right really taken that much power absolutely but do you know that as we speak the police Minister in Austria is a Nazi or a neo-nazi yeah there is a coalition government between the right and the ultra right and the police minister and the minister who's responsible for the intelligence services of Austria is somebody who comes out of a party set up by Nance's so it's not pine this is not speculation we have in Germany the two major parties of the center left and the center-right the Christian Democrats and the Social Democrats together they used to control 80 85 percent of parliament now that has come down to 51 and for the first time in the post-war history of Germany we have a neo fascist party the alternative route Deutschland which went from zero to 13% and today it is polling near twenty percent so this is happening as we speak France everybody in this country celebrates Emmanuel macron they do well to be happy that he is president marine lepen his adversary in the presidential election lost she's a new fascist name clearly so she's got 35% of the vote I mean I'm glad she didn't win but are we going to celebrate that the neo-fascist got 35% of the vote in a country where 12 million voters did not even bother to vote now look at Italy Italy now is going to have a government which is going to be effectively a coalition between the five the Cinque Stella movement which is a a populist reactionary movement of in the sense that they reacted against the political establishment they have some good ideas about this that and the other but at the same time they are very xenophobic they're they want to build walls like Donald Trump in this country and the major collision part of them is a particle the LEGO League which is outright no fascist and racist and they have a effectively hate speech is their main political narrative wherever you go in Europe look at Henry look at Poland but just on the opposite side the opposite side of the same coin we are very pleased with the response to our movement we now have a coalition which is functioning we have a common manifesto that is being that is going to be launched in in June with a very clear policy we have as part of the core this coalition a new political party in France led by Benoit Amon who was the Socialist Party's candidate last time around together with the French greens together with other organizations and groupings in France we have the danish party the alternative which is a third largest party in denmark we are part of our coalition there very weird and very wonderful combination of young people base computer savvy and you know into the various autonomous collectives and green transition ecological politics we have the mayor of Napoli which the megistus who fought the Kimura and survived and became the mayor of of the of that splendid city we are setting up a joint party with him in Italy we have political party in Portugal called Libre we set up a new political party on the 26th of March in Greece called Mara which means Day and so we're moving moving ahead this coalition is going to be called the European Spring and we're going to contest the European Parliament elections in May two thousand nineteen it's very exciting and we're looking to you for fighting off this movement because it's happening here as well different political system here clearly but you know it's dangerous I saw Donald Trump today get on stage just before our interview and he did a press conference about pharmaceutical costs and it was the script was literally taken from Bernie Sanders's website and then he went on to say you know some politicians talk about this all the time but I'm gonna do something about it they're co-opting a lot of the good populism but that's what pushes forward I was a fascistic exactly yeah Cellini was were always talking the language of protecting workers I listened to to the Donald today who's very interesting this country desperately needs something to be done regarding health care and especially from a pharmaceutical expenditure your medical industrial complex is almost as much of a threat as a military industrial complex in the sense that they are sponging off the American people and in a way that it is very dangerous to health standards in this country you have very low health centers and twice the expenditure that you should have compared to other systems in Europe that provide that that produced much better health outcomes so it is completely right to say that there can president president United States should do something about pharmaceutical crisis but is he going to allowed Medicare to bargain directly with the pharmaceutical companies is he going to do anything so that's what he does he takes the Bernie Sanders sentiment takes out of it all the policies that would hurt those who are responsible for the the huge expense of health care and combines these two in a way that is not possible for tangible in any way for political purposes and he does a very good job because there's no opposition the Democratic parties just doesn't exist you don't have to tell me that daddy's matter of fact you thank you so much we're gonna be watching very closely the elections and cheering you on and hopefully you'll be doing the same for us and maybe someday we'll have a transcontinental partnership as I'm sorry I need an International New Deal we're American progressives and European progressives lead the rest of the world if you'd like to see interview and you're at the end so apparently you liked it a little bit thank you for watching we really appreciate it you can watch them live as they happen if you're a member only members get that go to TYT Network comm /join and you get not only interviews live you get the young turks live you get aggressive progressive live old school and all the commercial-free come join us right now tu IT Network calm / join




Comments
  1. To
    give in means exactly that: To give

    Since we plan the next economic step based our current situation it is difficult to
    project what might happen to the mitigating circumstances that surround our
    economic situation. One example is the massive confusion around BREXIT. Even
    though the mandate to leave the EU was set years ago, important aspects of this
    political-economic move are only gradually coming to light.  In Europe, the imminent economic Gordian knot
    is the discrepancy in output value between various EU members. Unless Europe’

    citizens
    are willing to consider the major structural reconstruction of the common

    currency IE: Some kind of a “Give in” the Economic structure of the EU will
    implode. More about it in the discourse, “Humanity & Economy, a contraction
    in terms?”

  2. the reason deflation is bad is because we have debt based money. In a deflation companies can't pay their value increasing debt and things go bust. Regarding influence on demand. If deflation were high people would save more and possibly invest. Prices come down which incentivizes people to spend and prices stablize.

  3. Ha! Only the social-constructionists, such as Varoufakis, think the economy is a “machine”; one that can be tinkered with. It doesn’t matter whether it’s the technocrats or the people… the economy cannot be controlled!

  4. Russia and Greece should put sanctions on Germany first and than the U.K and U.S. Europe was built by Greek hands not Germans or British or Americans or France. Greek Blood built Europe and never forget that. America and the British and the Germans = EU and must face up to the fault or they will suffer the consequences in more ruinous circumstances.

  5. I respect Yanis and Jorden Peterson. I would love to hear a respectful discussion on socialism and capitalism. It would be respectful between them.

  6. I totally get and agree with Yannis except for saying bankers create money, central bankers yes on behalf of governments and society luckily not private bankers on behalf of private companies

  7. Yanis is wrong at 10m 34s …… the money is NOT 're'paid …… it is paid….there's a world of difference……. how can you return (or repay) something that never existed.
    Also, not convinced deflation has to be 'toxic'….. so what if prices go down? ……. people will save money……AND they won't be investing in land' ….cos that will be falling too.
    He needs to explain himself better here, I think, 'cos he's the best we have atm.

  8. Yanis is a humanitarian which partially explains his left wing bias , thats fine , but the left always seeks a huge power block to hide behind , think of the USSR , and now the EU , Capitalists big and small regulary write off billions in non sustainable debt routinely every day , however the nit picking EU refused to write off or restructure Greek debt and if Y.V ,is correct, the next crisis could emanate from the so called PIGS countries , with Germany having to transfer its surplus to cancel the deficits of the PIGS . I wish I knew .However I wish DiEM 25 luck in dealing with that awful Jeroen Djiselboom /Barnier / Juncker , they will behave as Europe has always behaved , with force and coercion .They are commitee types , but Yanis is an individual , the exact opposite .

  9. Talking about the Old Order being afraid of a New Order, Yanis mentions that "Oedipus' father was afraid of his son" …the Pharoah was afraid of Moses… Herod was afraid of Jesus… ring any bells?… how about this one?: Oedipus loved his mother,… but a thousand years before Oedipus, the Babylonian Sun god Utu inseminates the goddess of fertility Ishtar at Easter, who gives birth to the reincarnation of Utu the Sun nine months later, at Christmas.

  10. The capitalist system has created a dystopian system, that has workers that work for a few coins in the third & developing world, while selling the same products in the developed world for US dollars & Euros.

    Of course what they will create is a future, that nothing is manufactured in the first world anymore & the mass of unemployed in the first world, can no longer go into debt, to buy the products of the world anymore.

    Cut off ALL credit cards in the first world now & there will be a massive snowballing worldwide recession immediately.
    It is all debt buying people.

  11. The EEC/EU was founded by ex-Nazis who served time at Nuremberg. Albert Speer and other leading Nazis, in 1943 called for a European type union after the war. Won't here that on the BBC or CNN will you kids?

  12. A problem with name and date of gold standard change. Perhaps not important but good to know the right date.
    August 15, 1971, President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus completely abandoning the gold standard.

  13. The European spring… omg, what an idiot – we see how well that worked in the Mideast 🙄

    This guy is a shill.

  14. Brief History of Democracy & Capitalism :-
    a) The Feudal system ended with the rise of merchant towns
    demanding rights and liberties.
    b) Independent institutions were established challenging the authority
    of monarchs.
    c) Merchants demanded representation and withheld taxes…..Parliament
    was born.
    d) workers demanded voting rights, equality and rights : they got pensions,
    a welfare state and national health service.
    Conclusion : Capitalism had been the driving force for democracy but was
    neutered by popular protest.

  15. This should have much more views. If you look at his past speeches over 2 years ago, he predicted all that's happening in EU and 'Murica. He is brilliant. TYT, you should bring him back for an updated interview, in light of Germany, France, Brexit and 'Murica. Sometimes, I wonder if Goldman-Sachs is the secret bank of the CIA. Anyway, here's a link to a better explanation of what's going on:
    https://www.youtube.com/watch?v=QkmGfY9iY9Y&t=132s

  16. Those men don't count extremely important points. The Great America of 1940-1965 was not because of Roosevelt, however, I count him as the Greatest President of all time, but because of Hitler. Yes, Hitler is the most notorious, most monumental, ugliest figure of all times but most important for changing the word completely. We might have no internet yet if not the War.
    If the whole of Europe, Japan etc. were not devastated by the war the US would not have such a huge market for the goods and do not forget the role of the US Military supply to the Alliance countries and built the 5,000,000 militaries (the Founding Fathers by the Constitution prohibited the military except for the navy) and Military – Industrial Complex budget would never have such a mighty consumption of 50% of the Taxes. The M.-Industrial Complex which lives on the wars which in turn live on paranoia and a funny notion that the US could easily LOSE Freedom and Democracy (BTW the to Founding Fathers hated democracy by which the poor could take their wealth by the majority votes, there is not even one word with Democracy or Freedom in the Constitution) to people who are peasants and live thousands of miles away. This country built on very peculiar culture which not inherent by any other country since the other countries are NATIONS when the US is a gathering place of too many Nations and on top is the 4th religious country in the world leaving even Italy far behind. No way such potpourri will end up with a pleasant smell.

  17. GET RID OF IT! get rid of the fiat science fiction typed on a computer screen money. just get rid of it. its so silly how everyone keeps thinking that we need money to live. we dont. we never have. the MONEY IS the pink elephant in the room. everybody's keeps dancing around miss pink elephant.

  18. I couldn't follow the contention that the finite number of bitcoin was effectively equivalent to basing currency on gold. Be it gold or bitcoin (by any other name), value should increase per unit of gold or bitcoin relative to commodities traded. So if price of chickens in 2018 was Y oz of gold/kg, then in 2050 it could be Y*2 for example as price inflation sets in. This happens with ordinary money today (not backed by gold). In effect his argument is for abandonment of the gold standard (if the argument for bitcoin as a currency would fail). No 'prime predator' leads to chaos. This is well known. But as I understand it he has always argued against abandonment of the Gold standard, and against the politicisation of money?

  19. Yanis is the most engaging economist of today. There are few people that can make me care about economics and understand economics like Yanis.

  20. It all sounds very appealing, but in reality, Mr Varoufakis is proposing soft socialism. The solution is that the issue of money is returned to government and issued at no interest, the big corporations are broken up and the governments divest themselves of activities improper for the state including health and education. Society will organise to provide these things, far more effectively.

  21. If bitcoin remain the same and magically become world currency he is right we're going straight into a financial crisis but we don't know how bitcoin and other cryptos would develop in the future.

Leave a Reply

Your email address will not be published. Required fields are marked *