Michael Green: Interest rates are like performing surgery with a machete

Paul Buitink interviews Michael Green, Chief Strategist at Simplify Asset Management. Michael thinks inflation is transitory, so Fed shouldn't raise rates. Low interest rates could lead to increase in productive capacity needed to lower inflation. Downside of low rates could be asset bubbles though.

Michael believes we're going to replay the 2018 scenario in which interest rates will be hiked and soon lowered again. Interest rates are like performing surgery with a machete. He expects we're going to be stuck with low rates for a long time.

We should start to take matters in own hands and protest against bad government policies. In the 19th century for example Europeans would migrate to the US and vote with their feet.

If we would invest better as a society focused on growth and the next generation, interest rates would rise themselves. Good policies in combination with markets should make this possible. Central banks have less impact on interest rates as people believe.

Unfortunately more and more people optimize their lives to leave nothing behind instead of taking care of their local communities and future generations.

The gentlemen discuss a new Bretton Woods and whether the US need to give up the world reserve currency. Also the situation in The Ukraine is discussed and how Europe still heavily depends on the US.

Michael furthermore thinks Bitcoin is just a speculative asset. He also comments on China whose demographics are a disaster, things are falling apart there.

He ends with an advice for the younger generation to take risks, for example by starting your own company.

Follow Michael and Paul on Twitter:

[donchedelnirvana]

This was a fantastic podcast! Although somewhat somber, Michael's support for his thesis is incredibly thorough and even as somebody who wholeheartedly embraces Bitcoin and the freedom it represents in my hopium-based mind, this is some of the best critique of it I've ever heard. Thank for bringing him on Paul. You are doing great in creating a wide range of content and opinions in a world where tunnel vision has become the standard!

[tgwtom]

Towering intellect always moving forward.

[cpainstitute]

Great content. Thanks guys.
Mike's critique of #Bitcoin is mostly correct, but what else can the people do?
This is why #Bitcoin will continue to succeed and grow.

[pepitogrilho]

I loved this guy's arguments. Where could we get more about him?

[cc]

wow, Michael has lost so much weight on the Keto!! you look so much healthier. good job!!

[joostvangoidsenhoven]

great to hear a lot of new perspectives. nice choice of guests! when is someone going to interview you? :)

[vajliakduke]

Michael's sitting in front of a large map is badass 😎
Looks like a general or even emperor to me 😂

[DegenerateSpeculator]

Feds gonna cut off our leg to save our foot

[IsaacLLin]

Woo ouch, the dialogue really petered out on Bitcoin.

[Ggianni]

At the end of the day, both BTC and USD are products aren't they? So I'm of the view that if BTC becomes a true threat to the USD, the fed/state will adjust policy to make the USD more attractive to those that would adopt BTC.

Heck, this competition alone would do wonders against stamping out over-progressive tendencies

[patchpeek]

To the guy in "Scandinavia". How about a nice Scandinavian background.?

[lrmorrison]

You need to change the World Reserve Currency to Gold.

[davidedwards]

Paul called out Green at the end for talking out of both sides of his mouth re: Bitcoin. He says we need to improve the system, but provides no solution. Bitcoin is the best solution we have and he dismisses it. Green is right about so much but always seems to not quite reach the right conclusions.