Central Banker's Confession On Bitcoin | Dr. David Andolfatto

Dr. David Andolfatto is the professor and chair of the economics department at the Miami Herbert Business School at the University of Miami. He was the very first central banker to ever give a public presentation on bitcoin. In this conversation, we talk about bitcoin, federal reserve, economics, why bitcoin may be something the world needs to pay attention to, potential risks, central banks, what David learned, intersection between economics, markets, legal, technology, bitcoin, USD, and why you should pay attention.

TIMESTAMPS:
00:00 - Intro
00:50 - Discovering bitcoin
02:20 - Why does money have to be stable?
07:10 - What happens to the dollar in a crisis?
09:35 - Assets for short-term vs long-term
11:20 - What happens in a central bank?
15:50 - Measuring inflation
21:00 - Human vs algorithmic decision-making
26:40 - Why gold & BTC make lousy money
30:50 - Inflation
41:50 - What would’ve happened if we did nothing during the crisis?
51:35 - Bitcoin presentation: is bitcoin clever?
55:05 - Currency competition
1:01:40 - CBDCs
1:06:00 - Are all deposits insured 100%?
1:11:50 - Where David is most critical
1:13:30 - Why CBDC could be good
1:19:50 - El Salvador
1:26:20 - Should US make bitcoin legal tender?
1:27:50 - Adopting a reserve currency not tied to a nation state
1:32:35 - Bitcoin as best defense
1:42:10 - University of Miami economics department
1:46:35 - Best memory

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[TruthBeToldAlways]

This guy is very obtuse about the pain that everyday people are suffering. He laughs off inflation as minuscule and not impacting people. The reality is the cost of housing, health care, and college education have increased 15x-20x during my lifetime, while wages have increased about 4x during my life. It’s slow, but it’s insidious. And the wealth gap has exploded during this time.

[jerryarsenault]

Outstanding best interview of the decade; very touchy subject.

[post]

This is one of your best naterial. I like the pace and vibe of the interview and letting your great questions be the guide. Stick to this format and I will watch and learn more.

[joaquinpastor]

great conversation! lifting the veil on the Fed is so helpful for advancing understanding

[Brian-ziwr]

I enjoyed this interview while I vehemently disagree with most everything that came out of his mouth. He talks about how inflation is acceptable and necessary but ignores that we are double taxed, and what checks and balances are in place to prevent the govt from ratcheting up the inflation rate for periods of time such as how they are doing now. Inflation is a very sneaky tax on the poor and should never exist. He thinks its necessary I think the govt becoming fiscally responsible is necessary.

[vv]

Great talk, David is on the right track.

[Ronaldo]

Thank You Pomp!! Great show! Great guest! Wonderful insight!😎😎

[meangrizzgreen]

Awsome interview. It's great to hear straight from one of the horses mouths what is going on. Also, you can tell he was genuine and honest in what he was saying.

[Million]

NO: all fed deposits are not truly insured. there is a "limited fund" that funds FDIC insurance. In this most recent crisis, I think they used over half of it during the emergency. A bit more and FDIC insurance would have had to be bailed out.

[jacquesd.k.]

The radical change needed will only come from outsie the system... And most certainly not from ivory tower types like this guy.

[knownow]

I enjoyed Dr. Andolfatto attempting to reconcile his defense of our fiat system and yet be open to bitcoin protocol. It is an immense academic chore to creatively re-engineer a legacy financial system. I do not actually believe it is possible to do. A new system opposite to an inflation/debt/credit system is needed. Bitcoin may be the answer.

[joewaliser]

pomp i love the direction your going with your content!

[dmlmorgan]

Hey Pomp, that was a FANTASTIC and balanced interview - really great to hear both sides of the (Bit) coin. Well done and keep up the good work 👍👍

[JamesVannordstrand]

This guy said no one saves in cash. Go out and talk to everyone on minimum wage. Most save in cash. Meaning the people that know the least about the system and arent thriving get hurt the most.

Also, he said people get used to Inflation after a while. Does that make it okay?? Is that what he believes?

And, he didnt say why we have inflation AND income tax. He acknowledged you could just have a higher income tax but said he was fine with a low level of inflation and an income tax. Why both? He didnt say it but it's because inflation is sneakier and easier to manipulate than income tax. Income tax requires a lot of work (rightfully so) inflation changes based on what our private banking industry says.

Ohh those tricky banksters...

[ssylwester]

One of your best sessions. Suggest you go shorter on the question and lead up length .. more time for the guest to provide his/her views. Onward !

[zaidoonabdelhadi]

A well paid apologist obviously. His lack of empathy with 99% of people is palpable yet not surprising.

[ucfj]

Central planner says central planning is great & he loves doing it. Color me surprised

[ryan]

Logical fallacy: this guy defends 2~3% inflation by arguing people do not save a lot in cash, so therefore it doesn't really hurt in the long term. However, it is the slow but constant loss of purchasing power that FORCES people to save in other assets: real estate, gold, stocks, etc. But why do we need inflation? If inflation were not there, people WOULD save in the dollar. Not their whole portfolio - wealthy people would still have investments (risk), but a lot of people would opt for the risk-free store of value that inflation-free money could be.

In fact I would argue a large part of the reason many newcomers are priced out of the real estate market is that wealthy people have been forced to save in assets not in money- driving up demand for real estate beyond it's utility value - DUE to inflation

[jakescanlan]

@40:37 ... But the checks given out to people did not reflect even close to how much $$ went into the markets

[carlucioleite]

Pomp you kinda blew me away with the argument about bitcoin being the second best case scenario for any nation. If you can't control the world reserve currency, it is best that no one does it.