Failed Predictions, Printing Money and Cryptocurrency | Lord Mervyn King

John Anderson speaks with Lord Mervyn King about the shortcomings of modern economics, including its detachment from practical issues and over-reliance on modelling. They discuss the failures of economic forecasting during the COVID-19 pandemic and on climate change, stressing the importance of humility and honesty from policymakers. The discussion extends to socio-economic challenges like rising national debt and intergenerational inequality in Western democracies.

The conversation also touches on modern monetary theory, quantitative easing, and the geopolitical implications of trade policies, especially with China. Lord King offers a critique of central bank digital currencies and cryptocurrencies, advocating against a completely cashless society. The interview ends with a call for younger leaders to step up and for current leaders to be more transparent about the sacrifices needed to address societal challenges.

Baron King of Lothbury is emeritus professor of economics at the London School of Economics, and the former Governor of the Bank of England. He served as Governor of the Bank of England and Chairman of its Monetary Policy Committee from 2003 to 2013. Lord King was knighted in 2011, made a life peer in 2013, and appointed a Knight of the Garter in 2014. His most recent books include The End of Alchemy, and another he co-authored, Radical Uncertainty: Decision Making for an Unknown Future. 
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00:00 Intro
01:43 Introducing Lord Mervyn King
02:50 Economics, the 'Dismal Science'
03:50 Economic 'Groupthink'
08:25 The Economic Expertocracy
13:09 The Problem With Modern Monetary Theory
20:50 The 'Lucky Generation'
25:40 Political Dishonesty
32:50 'Young People Are Voting With Their Feet'
37:22 The Economics Of Defence
45:00 'Rational Behaviour' Is Not The Same As 'Optimising Behaviour'
51:51 The Problems Of Climate Change Models
01:02:30 China's Economic Turmoil
01:12:17 Will We Become Cashless?
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Conversations feature John Anderson, former Deputy Prime Minister of Australia, interviewing the world's foremost thought leaders about today's pressing social, cultural and political issues.

John believes proper, robust dialogue is necessary if we are to maintain our social strength and cohesion. As he puts it; "You cannot get good public policy out of a bad public debate."

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[ShowRyuKen]

In my opinion this is one of the most fascinating interviews on the channel to date. John and Mervyn seem to have a real rapport and both talk so eloquently about the issues. Great video, I feel I'm learning a lot.

[humanoverde]

Another fantastic interview from John 👍🏼, was great to hear Lord King’s insights… he’s clearly a very smart guy. Wish our politicians would listen to him more often.

[jdg]

Central bank governors tend to talk a lot of sense... after they leave their posts.

[advoctr]

Great discussion.

"Young people have good reason not to believe or trust their government"

John we are way past that. "Young people have abundant evidence that they nor anybody with the ability to reason can believe or trust their government"

[mattfinch]

Not only did people see their jobs disappear, and their families be split apart to look for work, but we had the very people that took those jobs, use the money to buy all our homes and push up prices! The government lack of foresight and accountability into the massive pain they have inflicted on people through globalization is incredible. How can you not see that if all the wealth is building in other jurisdictions, and you allow those people to acquire property in your jurisdiction, then eventually you will own nothing! This is the main reason for public dispair. Governments have moved away from their role of providing Maslows heir-achy of human needs. They have simply become corrupted, inept, self centered virtue signaling wankers. The sponsored media has enabled this. It is the Australian adage of shitting in your own nest. We need a total removal of government bureaucrats, re hiring on merit, and not ideology

[joechiato]

Who would've imagined that printing billions and billions of dollars to try and eradicate the sniffles would lead to inflation?

[Hfyuf-xfhq]

UK citizens are lacking trade skills - plumbing, bricklaying, carpentry, electrics... There's very good money to be made if they asserted themselves and retrained.

[evolassunglasses]

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did there would be a revolution before the morning".

~ Henry Ford

[teamstig]

Lord King spitting so many facts, without any regard to potential "wrong speak"... how refreshing ! reminds me of 5 years ago being able to say what you think

[markanderson]

A very interesting and informative discussion.

After hearing this I just ordered two of Lord Melvyn King's books. I look forward to reading them.

[noahlockwood]

A thoughtful and polite endorsement of liars and thieves

[stumac]

So it was difficult to predict that shutting down production of goods and limiting services whilst flooding the world economy with monetised debt (money printing, aka inflation) would result in rising prices (demand outstripped supply).

[Colbe-lxfb]

It’s wild how much the central banks have pumped into the economy, and yet, here we are with inflation still high. Makes you wonder how accurate these predictions ever were.

[juiceqc]

LMK is perhaps the most important economist in the UK today. Self-evidently his is a voice that we should be listening to. Guess what we are not in fact doing?

[TheDixiechick]

Major Smedley Butler Quote-War is a Racket--“I served in all commissioned ranks from second lieutenant to Major General. And during that period I spent most of my time being a high-class muscle man for Big Business, for Wall Street and for the bankers. In short, I was a racketeer for capitalism. I suspected I was just part of the racket all the time. Now I am sure of it.”

[alistairdancepmm]

"Competence is the minimum but having outsourced governance to the EU for 40 years, politicians have forgotten how to do it.

[owenwilson]

This is one of those interviews that I kept pausing so I could think about what was just said. Absolutely brilliant discussion. Thanks, it’ll take a few days to get through this one.

[SeosamhMacUaid]

I was born into poverty Mr King looks like I’ll be following in my family’s footsteps.

Your mission is/was to keep us all on our place.

[rickjohnson]

I’ve read both of his books John Anderson mentioned in his opening comments and they are two of the best books I have ever read. Get them both and read them. You won’t be disappointed.

[SimonPayne-jehi]

A very insightful programme covering many areas of importance. Mervyn King has a Very astute mind and think's clearly on the matters under discussion which confront us today.