10/10 podcast. I'd have listened to Zac carry on for another hour. It's much more engaging/interesting when there's genuine passion in the opinion. Let Zac do this more please
Yes please make a reoccurring podcast where Zac just rants at different political institutions 😂 I would watch that, even when disagreeing because he makes such good observations!
Listened to this on Nebula but there's no means to comment on there. THIS, this is what I personally want from TLDR! I find the Daily Briefing too much like a tease, and I can get similar sort of briefings elsewhere, but this long form discussion/rant/burning down on institutions lol, is what TLDR can do so well. The team, though obviously Zac is the master, have an excellent way of taking a complex subject and exploring it in a meaningful way... a long form TLDR one might say. This episode wasn't too long at all, if anything as others have said I could easily have listened to more. More of this please TLDR, more of this!!!!
I think that last comment hit the nail on the head. The Bank of England does have a political stance. Its politics are that workers should be paid as little as possible and businesses should be as profitable as possible. That’s why the BOE governor has been going on about wage restraint for ages but only recently and very grudgingly started mentioning greedflation. despite the fact there is no wage price spiral and there isn’t going to be one, but corporate profits have been observed to be increasing and adding to inflation for over a year. Their job may be to control inflation but their policies governs how they are willing to go about doing that
Best TLDR podcast perhaps forever. However, it is also the government policies that are driving inflation. We had food rotting on fields because of immigration policies (including truck drivers' visas) and practically non-existent customs and border control preparation that increases food import costs and discourages farmers from planting as much as before. Government can also set policies that prevent energy companies from price gauging: this inflation is not caused by people buying luxury goods but basic necessities: people jolly well cannot stop eating or using hot water. In other words, the inflation is caused NOT BY PEOPLE BUYING MORE STUFF BUT BY THE LACK OF THINGS THEY *NEED* (just as the lack of housing has been pushing the house prices and rentals up) - the only way the inflation can truly come down is to produce enough of the stuff that people want. The politicians like to blame the inflation of food and energy prices on the war and last year's natural disasters. But how come the inflation isn't as bad in the rest of the European countries? I wonder if hard Brexit and being outside of the European market has anything to do with it? 🤔
The reason you have an independent bank isn't them being experts and economics, It's about making interest rate decisions based on economic data, not political factors such as governments, lowering interest rates before elections
Yes, and they addressed some of those points. But I think an important reason for the independence of central banks was missed or got lost: central banks can buy public debt and print money. With control over those two as well as interest, irresponsible politicians have even more ways of screwing over the long term prospects of the country while making things look good in the short term. Of course they can balloon public debt but luckily that is a simple number everyone understands. But playing with buying govt debt and interest on top delays showing consequences - so you can spend spend spend for years until the entire thing blows and most people won’t even understand there is an issue.
The real problem here is that the Tories have been purposefully over inflating the housing market. Interest would be more manageable if the loans weren't so large
Sunak trying to take credit if inflation came down is just disgusting. He was gonna take credit for something he didnt do. But oops it didnt tun out how he predicted 🤷♂
so if the government takes back monetary policy, what's the difference? governments will still make interest rates for the same reason - if the economy is weak it will lower them. if inflation is too high, then it would raise them. The ECB sets Eurozone interest rates and that's worse than the UK. It's setting a single rate for many countries. what's the alternative to monetary policy then, when it's a standard macroeconomic tool in every country?
For a wage price spiral the cost of wages for a product need to pass a treashhold. For example: In a barber shop increased wages will always lead to higher prices since wages are just the biggest expense in their budget (unless it is in an area with really high rents) But in the chemical sector wages often make less than 10% of the total costs of the product. So even doubling their wages would only lead to 10% extra inflation. Of course you can't just look at one specific sektor since the price of services always depends on the average local income, but for the economy as a whole you can make this calculation.
End? What is there to end anymore? Politically he’s a dead man walking. At this point the questions isn’t whether he’ll lose the next election, it’s how badly.
Two issues with the Bank of England independence. It's a single mandate central bank and the UK does not government funded mortgage backstop like the US or Germany that allow longer term mortgages that allow your central bank to have more flexibility in its policy paths
blaming this on sunak is moot. very moot. What else is the BoE supposed to do, if inflation is high? there are other options such as price controls, but this hasn't been the norm since pre-Thatcher and won't work for ideological and pragmatic reasons. The Tories will lose the next election, but then Sunak's job is just to manage the ship. the only negative has been to keep some of his ministers in when he said he'd be the anti-Boris in upholding integrity. If the Tories lose to Sir Keir, it won't be his fault. It's. a culmination of Cameron, Brexit, May, BoJo, and Truss that will make the Tories lose. There's no need for the actual executive government to set interest rates.
Yea as an American I'm in concurrence that the re politization of the Bank Of England is really the interesting headline here, something to keep an eye on for sure
He wants to sort out the UK's historic productivity decline by harnessing the power of the new technologies (AI, blockchain, mixed reality). He will do this through supply-side reforms and changing the regulatory regime of the UK (helped by the fact we've gone through Brexit and we have full control of our laws). Unfortunately, he must first guide the economy and our country as a whole through some very tricky seas
I’d like everyone in the BoE to suffer below inflation payrises for a decade or two and hear what they think about “wage/price spirals” or whatever nonsense they pull out of their arse currently
When government borrows ( inflation) bond holders benefit - usually rich but also those with retirement account but their earnings are minimal. Inflation will remain Interest rate hike -lowering inflation more value for money and better when you retire;
Another problem that can come with central bank independance is sometimes fiscal and monetary policy can be working counter to each other. Like politicians trying to reduce unemployment while the central bank is trying to increase unemployment.
Monetary policy independence is not important because of political class obsession with short term goal. The reason is that politician has a CONFLICT OF INTEREST on monetary policy that is not present in other area. Politician have fiscal policy control because there is no "right" solution and different part of society have different idea on what should the priority be. Politician having control on monetary policy means they will add to the consideration the exact component like unemployment, mortgages etc. But those can be solved independently from the monetary policy. For example: I took a mortgage, almost a decade ago, not in the UK. The central bank was and is in control on mortgage regulation. The bank was preoccupied with how a hike in interest rate might affect repayment. So they mandated that bank have to give mortgage where at least one third is at a fixed rate and at least one third is at a rate that is changed with a frequency of at least 2 year, no exceptions. (So at most one third is directly linked to interest rate and changing all the time). I do agree that the bank of England is miss-using their institutional role when they state his opinion on political issue outside their mandate, like salary negotiation . He could have said that in his private hat, even if it can be difficult to see the difference. Many central bank around the world have as a policy that they do not comment on policies or politics outside their role. They can advise if requested. They can comment if the policy is linked directly to their mandate, but not otherwise.
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10/10 podcast. I'd have listened to Zac carry on for another hour. It's much more engaging/interesting when there's genuine passion in the opinion. Let Zac do this more please
Yes please make a reoccurring podcast where Zac just rants at different political institutions 😂 I would watch that, even when disagreeing because he makes such good observations!
Listened to this on Nebula but there's no means to comment on there.
THIS, this is what I personally want from TLDR!
I find the Daily Briefing too much like a tease, and I can get similar sort of briefings elsewhere, but this long form discussion/rant/burning down on institutions lol, is what TLDR can do so well.
The team, though obviously Zac is the master, have an excellent way of taking a complex subject and exploring it in a meaningful way... a long form TLDR one might say.
This episode wasn't too long at all, if anything as others have said I could easily have listened to more.
More of this please TLDR, more of this!!!!
I think that last comment hit the nail on the head. The Bank of England does have a political stance. Its politics are that workers should be paid as little as possible and businesses should be as profitable as possible. That’s why the BOE governor has been going on about wage restraint for ages but only recently and very grudgingly started mentioning greedflation. despite the fact there is no wage price spiral and there isn’t going to be one, but corporate profits have been observed to be increasing and adding to inflation for over a year. Their job may be to control inflation but their policies governs how they are willing to go about doing that
Let Zac rant! He's more coherent than most politicians and you can tell he actually gives a shit about people's lives
I love Zac. Don't stop swearing. It makes it so much more authentic and passionate, and not some grey-haired BBC news presenter.
Zelensky and Sunak converse:
"My people are hungry and cold, we need all the help we can get."
"I'm sorry to hear that, mr Sunak."
"Zelensky is moved to tears after seeing the state of the London Underground and pledges donation money when visiting London"
Zac nailed the BOE discussion ........ who needs a bleep machine when Zac is on 🙂
Interesting discussion. The position of the mic in relation to Zac's face needs sorting for the next one however haha
I actually really like this style of podcast. Sometimes someone just ranting about what they think about the news is really fun
Best TLDR podcast perhaps forever. However, it is also the government policies that are driving inflation. We had food rotting on fields because of immigration policies (including truck drivers' visas) and practically non-existent customs and border control preparation that increases food import costs and discourages farmers from planting as much as before.
Government can also set policies that prevent energy companies from price gauging: this inflation is not caused by people buying luxury goods but basic necessities: people jolly well cannot stop eating or using hot water. In other words, the inflation is caused NOT BY PEOPLE BUYING MORE STUFF BUT BY THE LACK OF THINGS THEY *NEED* (just as the lack of housing has been pushing the house prices and rentals up) - the only way the inflation can truly come down is to produce enough of the stuff that people want.
The politicians like to blame the inflation of food and energy prices on the war and last year's natural disasters. But how come the inflation isn't as bad in the rest of the European countries? I wonder if hard Brexit and being outside of the European market has anything to do with it? 🤔
The reason you have an independent bank isn't them being experts and economics, It's about making interest rate decisions based on economic data, not political factors such as governments, lowering interest rates before elections
Yes, and they addressed some of those points. But I think an important reason for the independence of central banks was missed or got lost: central banks can buy public debt and print money. With control over those two as well as interest, irresponsible politicians have even more ways of screwing over the long term prospects of the country while making things look good in the short term. Of course they can balloon public debt but luckily that is a simple number everyone understands. But playing with buying govt debt and interest on top delays showing consequences - so you can spend spend spend for years until the entire thing blows and most people won’t even understand there is an issue.
Completely agree with the BOE take, really enjoying these podcasts even if they don’t get as many views as other channels
Following Zac’s phrasing at 27:34 I propose that from now on we TL:DR Podcast viewers should refer to ourselves as Policywonks
Zac apologising for the Podcast when I was just loving the discussion
such a great and educational episode! please don't feel bad for it running long!
I loved this episode. Watched it on Nebula but came over here to just comment my approval! Really informative and enjoyable.
More of this style content please. Zac was great.
Thanks for this podcast! So interesting. You made a boring subject very relevant worldwide! Keep up great reporting!❤
love the podcast format 👍
The real problem here is that the Tories have been purposefully over inflating the housing market.
Interest would be more manageable if the loans weren't so large
That was actually v interesting. Please do more....
Keep these coming. Just wind zac up and let him go
Hopped over from Nebula just to give a massive thumbs up, one of my favorite episodes
Sunak trying to take credit if inflation came down is just disgusting. He was gonna take credit for something he didnt do. But oops it didnt tun out how he predicted 🤷♂
Honestly wack this up to hour and I wouldn't mind
I feel that the better question is 'Could Sunak end the economy?' and so far, he seems to be doing quite well at doing so.
We love TDLR critiques of institutions
I love how through these Podcasts we get to see Zac´s slow but increasingly quicker transition to a follower of Marx xD I love it
At the end they complained about the British Supreme Court
We Americans will trade you ours for yours
No thanks...
so if the government takes back monetary policy, what's the difference? governments will still make interest rates for the same reason - if the economy is weak it will lower them. if inflation is too high, then it would raise them. The ECB sets Eurozone interest rates and that's worse than the UK. It's setting a single rate for many countries. what's the alternative to monetary policy then, when it's a standard macroeconomic tool in every country?
For a wage price spiral the cost of wages for a product need to pass a treashhold. For example: In a barber shop increased wages will always lead to higher prices since wages are just the biggest expense in their budget (unless it is in an area with really high rents) But in the chemical sector wages often make less than 10% of the total costs of the product. So even doubling their wages would only lead to 10% extra inflation. Of course you can't just look at one specific sektor since the price of services always depends on the average local income, but for the economy as a whole you can make this calculation.
Let's hope it ends Sunak before it ends us
End? What is there to end anymore? Politically he’s a dead man walking. At this point the questions isn’t whether he’ll lose the next election, it’s how badly.
This was great. Just let these guys go off the leash.
We need Zac destroying the supreme court!
There is also a report from the Australia institute as well as others that stated that it is corporate profits/greed that is driving inflation
This was great.
I watched this till the end 😂
Two issues with the Bank of England independence. It's a single mandate central bank and the UK does not government funded mortgage backstop like the US or Germany that allow longer term mortgages that allow your central bank to have more flexibility in its policy paths
It's also important to note, this is still new for the UK. The US has had an independent central bank since 1916
I love you guys been listen to you for years
blaming this on sunak is moot. very moot. What else is the BoE supposed to do, if inflation is high? there are other options such as price controls, but this hasn't been the norm since pre-Thatcher and won't work for ideological and pragmatic reasons. The Tories will lose the next election, but then Sunak's job is just to manage the ship. the only negative has been to keep some of his ministers in when he said he'd be the anti-Boris in upholding integrity. If the Tories lose to Sir Keir, it won't be his fault. It's. a culmination of Cameron, Brexit, May, BoJo, and Truss that will make the Tories lose. There's no need for the actual executive government to set interest rates.
It isn't moot when you have made something you don't control one of your prioritise
Yea as an American I'm in concurrence that the re politization of the Bank Of England is really the interesting headline here, something to keep an eye on for sure
Thank you, that was great! 🤣
This is the best episode of TLDR for a while !
Great podcast
Great video!
man here is spitting facts, get him a megaphone
Why did he want to become prime minister what’s his beliefs and ideologue or goal he doesn’t really have one other then a vague economic promise
He wants to sort out the UK's historic productivity decline by harnessing the power of the new technologies (AI, blockchain, mixed reality). He will do this through supply-side reforms and changing the regulatory regime of the UK (helped by the fact we've gone through Brexit and we have full control of our laws). Unfortunately, he must first guide the economy and our country as a whole through some very tricky seas
The irony is that the Conservatives are usually trusted with the economy. Now look at the British economy under sunak
I’d like everyone in the BoE to suffer below inflation payrises for a decade or two and hear what they think about “wage/price spirals” or whatever nonsense they pull out of their arse currently
When government borrows ( inflation) bond holders benefit - usually rich but also those with retirement account but their earnings are minimal. Inflation will remain
Interest rate hike -lowering inflation more value for money and better when you retire;
Zac needs to cut you off less often 😂 other than that great podcast lads!
Bad news for Sunak is good news for the country.
However the Tories will make everyone suffer along the way
It must be said it genuinely irks me that Zac has got an exceptional hairline but is all in on the buzz cut 😂😢
I like the mystery of not knowing why… 🤣
Why do you think it is to long. Go one
Why not? Sunak ended the economy.
Another problem that can come with central bank independance is sometimes fiscal and monetary policy can be working counter to each other. Like politicians trying to reduce unemployment while the central bank is trying to increase unemployment.
The chap on the left seems to be able engage his mouth without having much to say. Was he picked because of the default lack of diversity at tldr.
Monetary policy independence is not important because of political class obsession with short term goal.
The reason is that politician has a CONFLICT OF INTEREST on monetary policy that is not present in other area.
Politician have fiscal policy control because there is no "right" solution and different part of society have different idea on what should the priority be.
Politician having control on monetary policy means they will add to the consideration the exact component like unemployment, mortgages etc.
But those can be solved independently from the monetary policy.
For example: I took a mortgage, almost a decade ago, not in the UK. The central bank was and is in control on mortgage regulation. The bank was preoccupied with how a hike in interest rate might affect repayment. So they mandated that bank have to give mortgage where at least one third is at a fixed rate and at least one third is at a rate that is changed with a frequency of at least 2 year, no exceptions. (So at most one third is directly linked to interest rate and changing all the time).
I do agree that the bank of England is miss-using their institutional role when they state his opinion on political issue outside their mandate, like salary negotiation . He could have said that in his private hat, even if it can be difficult to see the difference.
Many central bank around the world have as a policy that they do not comment on policies or politics outside their role.
They can advise if requested.
They can comment if the policy is linked directly to their mandate, but not otherwise.
P R O M O S M 💯
First
Impressive!