"As inflation came down from the early 1980s, then interest rates came down...credit exploded...suddenly this money revolution was sparked off when dollars stopped being backed by gold...the Fed is free to print...and credit exploded. So, all of these things together constituted a money revolution that transformed the world and pulled hundreds of millions of people around the world out of poverty."— Richard Duncan

Since the US detached the dollar from gold, printing money has created a global credit bubble, always on the verge of imploding. 

The COVID-19 pandemic caused a unique phenomenon in 2020, with the savings rate skyrocketing while consumer credit dropped. 

Then came the invasion of Ukraine by Russia causing inflation rates to surge and more global supply chain bottlenecks. 

With the increased inflation rates and a surge in consumer credit, it's becoming more challenging for the Fed to control inflation just by raising rates.  

So, what's the solution: how can the government fix this?  

Richard Duncan is an economist and the author of four best-selling books that analyze the causes and effects of economic crises and the transformation of our economic system from capitalism to what he calls "credit-ism." His latest book, "The Money Revolution: How to Finance the Next American Century," describes the evolution of money and credit over the last century since the dollar stopped being backed by gold. Duncan also publishes "Macro Watch," a video newsletter available on his website.

Today, on The Wiggin Sessions, Richard joins me to discuss the government's involvement in the current debt crisis, his thoughts on the debt ceiling, and what he thinks we should learn from the money revolution.

 Listen in as he shares his thoughts on what needs to be done to make the current economic situation sustainable, induce a technological revolution, turbocharge productivity and economic growth, and keep the country out of a depression caused by a credit bubble implosion. 

Plus, how you can subscribe to his newsletter for 50% off—just for listeners of “The Wiggin Sessions.” 

Key Takeaways

How the pandemic impacted the economy of the US, causing the savings rate to skyrocket (while consumer credit dropped)

The current credit bubble and the government's involvement

How interest rates lead up to debt crisis

What the government could do to grow our way out of this crisis

Why Richard feels the debt ceiling should be eliminated

How the government's creation of 2.8 trillion dollars in one quarter was used to preserve the status quo (instead of investing in the future)

The US government's plan for cryptocurrencies

Why Richard is not particularly concerned about the rising national debt

Connect with Richard Duncan

Richard Duncan Economics

Richard Duncan (@PaperMoneyEcon) on Twitter

Connect with Addison Wiggin

Consilience Financial

The Wiggin Sessions on Facebook

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The Wiggin Sessions on Twitter

Resources

The Money Revolution: How to Finance the Next American Century

Use Code February to Subscribe Save 50% on Macro Watch - Richard Duncan Economics

The Credit Bubble popped. Can the government fix it? Richard Duncan | EP 90 The Wiggin Sessions

Financial Reckoning Day: Surviving the Soft Depression of the 21st Century

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