Professor Mark Blyth – Political Economist…

As many of you know we spend a great deal of time researching various aspects of modern economics. There are very few people who have a firm grasp on the new economy, and even fewer still who can translate the recent economic structure into current economic predictions.

Professor Mark Blyth is one of the very select few people who grasp the full concept of two economies, Wall Street (fiscal economy) and Main Street (working class, traditional). A few weeks ago Blyth appeared on Tucker Carlson to discuss his thoughts.

Professor Blyth is well worth listening to because while he uses different terminology, he is essentially describing the exact conditions we have been discussing here for the last several years. He gets it, and we believe he’s correct.

Blyth describes political economics as an outcome of a decades shift from valuing wages (traditional main street production value) to valuing/emphasizing pricing (Wall street) etc.  What he outlines is exactly what we have described in the New Economic Dimension.

Traditional economic principles have revolved around the Macro and Micro with interventionist influences driven by GDP (Gross Domestic Product, or total economic output), interest rates, inflation rates and federally controlled monetary policy designed to steer the broad economic outcomes.

Additionally, in large measure, the various data points which underline Macro principles are two dimensional. As the X-Axis goes thus, the Y-Axis responds accordingly… and so it goes…. and so it has historically gone.

trump convention 2

Traditional monetary policy has centered upon a belief of cause and effect: (ex.1) If inflation grows, it can be reduced by rising interest rates. Or, (ex.2) as GDP shrinks, it too can be affected by decreases in interest rates to stimulate investment/production etc.

However, against the backdrop of economic Globalism -vs- economic Americanism, CTH is noting the two dimensional economic approach is no longer a relevant model.

There is another economic dimension, a third dimension. An undiscovered depth or distance between the “X” and the “Y”.  It is within this distance you find he disconnect. It is also within this distance you find the political reactions which Blyth accurately points out leads to Brexit, the election of Trump and the pending outcome in France.

I believe it is critical to understand this new dimension, the space between, in order to understand President Trump economic principles, and the subsequent “America-First” economy he’s building to fill that gap.

As the distance between the X and Y increases over time, the affect detaches – slowly and almost invisibly. I believe understanding this hidden distance perspective will reconcile many of the current economic contractions. I also predict this third dimension will soon be discovered and will be extremely consequential in understanding outcomes within the coming decade.

Professor Blyth explains the uncoupling of Wages (Main Street) due to a focus on Pricing (Wall Street globalization/manufacturing) etc.

To understand the basic theory behind the new dimension in economics, allow me to introduce a visual image to assist comprehension. Think about the two economies, Wall Street (paper or false economy) and Main Street (real or traditional economy) as two parallel roads or tracks.

Think of Wall Street as one train engine and Main Street as another.  The movement of the engines occurs over time.  Distance in this metaphor is time.

The Metaphor – Several decades ago, 1980-ish, our two economic engines started out in South Florida with the Wall Street economy on I-95 the East Coast, and the Main Street economy on I-75 the West Coast. The distance between them less than 100 miles.

As each economy heads North, over time the distance between them grows. As they cross the Florida State line Wall Street’s engine (I-95) is now 200 miles from Main Street’s engine (traveling I-75).

As we have discussed – the legislative outcomes, along with the monetary policy therein, follows the economic engine carrying the greatest political influence. Our historic result is monetary policy followed the Wall Street engine.

a17b2-hip-replacement-recall-bribery[…] there had to be a point where the value of the second economy (Wall Street) surpassed the value of the first economy (Main Street).

Investments, and the bets therein, needed to expand outside of the USA. hence, globalist investing.

However, a second more consequential aspect happened simultaneously. The politicians became more valuable to the Wall Street team than the Main Street team; and Wall Street had deeper pockets because their economy was now larger.

As a consequence Wall Street started funding political candidates and asking for legislation that benefited their interests.

When Main Street was purchasing the legislative influence the outcomes were beneficial to Main Street, and by direct attachment those outcomes also benefited the average American inside the real economy.

When Wall Street began purchasing the legislative influence, the outcomes therein became beneficial to Wall Street. Those benefits are detached from improving the livelihoods of main street Americans because the benefits are “global” needs. Global financial interests, investment interests, are now the primary filter through which the DC legislative outcomes are considered.

There is a natural disconnect. (more)

Here is an example of the resulting impact as felt by consumers:

economy-1

♦ TWO ECONOMIES – Time continues to pass as each economy heads North.

Economic Globalism expands. Wall Street’s false (paper) economy becomes the far greater economy. Federal fiscal policy follows and fuels the larger economy. In turn the Wall Street benefactors pay back the politicians.

Economic Nationalism shrinks. Main Street’s real (traditional) economy shrinks. Domestic manufacturing drops. Jobs are off-shored. Main Street companies try to offset the shrinking economy with increased productivity (the fuel). Wages stagnate.

Now it’s 1990 – The Wall Street economic engine (traveling I-95) reaches Northern North Carolina. However, it’s now 500 miles away from Main Street’s engine (traveling I-75). The Appalachian range is the geographic wedge creating the natural divide (a metaphor for ‘trickle down’).

By the time the decade of 2000 arrives – Wall Street’s well fueled engine, and the accompanying DC legislative attention, influence and monetary policy, has reached Philadelphia.

However, Main Street’s engine is in Ohio (they’re now 700 miles apart) and almost out of fuel; there simply is no more productivity to squeeze.

From that moment in time, and from that geographic location, all forward travel is now only going to push the two economies further apart. I-95 now heads North East, and I-75 heads due North through Michigan. The distance between these engines is going to grow much more significantly now with each passing mile/month….

However, and this is a key reference point, if you are judging their advancing progress from a globalist vessel (filled with traditional academic economists) in the mid-Atlantic, both economies (both engines) would seem to be essentially in the same place based on their latitude.

From a two-dimensional linear perspective you cannot tell the distance between them.

It is within this distance between the two economies, which grew over time, where a new economic dimension has been created and is not getting attention. It is critical to understand the detachment.

Within this three dimensional detachment you understand why Near-Zero interest rates no longer drive an expansion of the GDP. The Main Street economic engine is just too far away to gain any substantive benefit.

Despite their domestic origin in NY/DC, traditional fiscal policies (over time) have focused exclusively on the Wall Street, Globalist economy. The Wall Street Economic engine was simply seen as the only economy that would survive. The Main Street engine was viewed by DC, and those who assemble the legislative priorities therein, as a dying engine, lacking fuel, and destined to be service driven only….

Within the new 3rd economic dimension, the distance between Wall Street and Main Street economic engines, you will find the data to reconcile years of odd economic detachment.

brexit-letter-1

Here’s where it gets really interesting. Understanding the distance between the real Main Street economic engine and the false Wall Street economic engine will help all of us to understand the scope of an upcoming economic lag; which, rather remarkably I would add, is a very interesting dynamic.

Think about these engines doing a turn about and beginning a rapid reverse. GDP can, and in my opinion, will, expand quickly. However, any interest rate hikes (fiscal policy) intended to cool down that expansion -fearful of inflation- will take a long time to traverse the divide.

Additionally, inflation on durable goods will be insignificant – even as international trade agreements are renegotiated. Why? Simply because the originating nations of those products are going to go through the same type of economic detachment described above.

Those global manufacturing economies will first respond to any increases in export costs (tariffs etc.), by driving their own productivity higher as an initial offset, in the same manner American workers went through in the past two decades. The manufacturing enterprise and the financial sector remain focused on the pricing.

♦ Inflation on imported durable goods sold in America, while necessary, will ultimately be minimal during this initial period; and expand more significantly as time progresses and off-shored manufacturing finds less and less ways to be productive. Over time, durable good prices will increase – but it will come much later.

♦ Inflation on domestic consumable goods ‘may‘ indeed rise at a faster pace. However, it can be expected that U.S. wage rates will respond faster, naturally faster, than any fiscal policy because inflation on fast-turn consumable goods becomes once again re-coupled to the ability of wage rates to afford them.

The fiscal policy impact lag, caused by the distance between federal fiscal action and the domestic Main Street economy, will now work in our favor. That is, in favor of the middle-class.

Within the aforementioned distance between “X” and “Y”, a result of three decades traveled by two divergent economic engines, is our new economic dimension….

trump-lion

We support reinstating the Glass-Steagall Act of 1933 which prohibits commercial banks from engaging in high-risk investment,” said the platform released by the Republican National Committee. (link)

Advertisements
This entry was posted in Big Government, Big Stupid Government, Brexit, Dem Hypocrisy, Donald Trump, Economy, Election 2016, Election 2017, European Union, media bias, Predictions, Uncategorized. Bookmark the permalink.

146 Responses to Professor Mark Blyth – Political Economist…

  1. The Demon Slick says:

    I think of it as real assets like real estate or manufacturing vs paper/electronic money based on hope and promises. And I think that the measurements used for a lot of economic indicators are dishonest. Take inflation. It’s calculated using things like toasters that you buy once every 5-10 years, but it doesn’t count things you buy every day, like food and gasoline. Austrian economics are the most honest, while kenyesian economics is a dishonest lefty rat hole.

    Liked by 23 people

    • JoAnn Leichliter says:

      Very perceptive.

      Liked by 3 people

    • rashamon says:

      You need to spawn some professors in economics for our ill-directed universities. One cannot have a legitimate conversation with any graduate these days because they don’t appear to know anything about anyone except Keynes. “Capitalism” and “free-markets” become the bugaboos gobbling up their wealth and access to a bright future.

      Liked by 3 people

    • sid weiner says:

      What’s so complicated?,….This is what the Central Reserve Banking Pyramid swindle has always been about.
      Syphoning off the wealth of nations with fiscal tricks.Since it’s inception in 1913 The Federal Reserve Bank has systematically looted America’s Wealth in this debt based economy & issued us back Federal Reserve Note which are I.O.U’s
      A banker can lend the same money to nine different people & it would be legal.
      If we would take the ‘n’ out of banking it would be baking & if the baker sold one loaf of bread to nine different people he would be a crook!
      There is nothing complicated in all of this,…What some call the F.I.R.E economy is really a huge scam to milk the real economy,…The F.IR.E. economy …Finance,Insurance,Real Estate are strictly overhead lumped onto the expenses of the real economy
      Our national wealth has been systematically looted,we have been financially eaten up alive by the Financial Sector which is pulling in billions running it’s financial scams in the Markets.
      This is not a question of complex theories leading to unforeseen negative consequences,..this is planned thievery!

      The famous economist,John Kenneth Galbraith,had said

      “The study of money,above all other field in economics,is one in which complexity is used to disguise truth or to evade truth,not to reveal it.
      The process by which banks create money is so simple the mind is repelled.With something so important,a deeper mystery seems only decent”

      Liked by 4 people

      • rashamon says:

        Now this is the topic that the media should be debating on those Sunday yakfests.

        Like

        • RG says:

          Yes, but I doubt if the Sunday pundits can even understand how to discuss economics. This morning as I was getting ready for Church, my TV was on and I could only listen from the other room. It was the same banter that I already heard throughout the week. They did fill in with heavy defense of their reporting and uttered a few non-convincing ideas as to why they are pure and not evil as reported by Trump.

          Gotta go somewhere besides the 6th grade news media to talk about “real economics.” I know, you and I can understand it, but what about all those who can’t? Is it necessary for others to even know?

          Like

  2. SeekerOfTruth says:

    thanks for posting this.
    I prefer to call it as the Financial services versus Production based economy.
    We got away from production based economy as companies found it was easier to move capital (money) around the world versus keep production here.

    However all financial services economies devolve into a rich versus slave class as the rich people and companies move their money to where that can make the most money for themselves. They care nothing about people. Only about money.

    Financial based economies always devolve into needing a lot of welfare as people do not make enough money to stay afloat or buy many things. And a large poor class develops.

    Industrial revolution started the large production based economy which was the boon for the working middle class. Trump likes to build things. I like to build things. It feels good and proud and usually make more money for most people who make things.

    Financial services economies can only have mostly two classes of people – Rich and poor (and large welfare class.).
    Production based economies have a strong middle class and less poor and less need for welfare so you can shrink the government budget.

    Liked by 11 people

  3. Thorfinnr says:

    I’m thinking of Bill Kristol’s comment the other day about how the white working class of America is worthless and should just be replaced by immigrants. From my point of view, the professional political class of America (Kristol) is WORTHLESS, and should be replaced by our votes and the withholding of our dollars as consumers. What does Bill Kristol really do? I mean, working hard is not necessarily valuable. If you work hard at corruption or furthering counterproductive measures, you’re really worthless. If you work hard at forcing propaganda and lies into the minds of people, are you really valuable?

    Liked by 28 people

    • Dekester says:

      Agreed. Kristol really is one that needs to be put out to pasture.

      Liked by 8 people

    • EbonyRapror says:

      Kristol beclowned himself there (again) but he probably approaches the topic from the globalist position which is to say the future of America is as a service economy rather than our traditional manufacturing economy. Hence his belief that cheap immigrant labor is more cost effective than the larger cost of employing main street American labor. That’s kind of the fork in the road where we’re at. We’ve seen the manufacturing base has been leaving and would continue to keep leaving unless it is purposely reversed. In comes Trump who sees the problem and solution and it’s all about puting main street back to work which means building back up the manufacturing base. Kristol, aside from being a pompous ass, is simply driving up I-95 and is on the wrong side of history.

      Liked by 7 people

      • Marc says:

        Kristol sees himself and those in the upper echelon of the establishment conservative movement (Charles Krauthammer, George Will, etc.) as being the voice and consciousness of the movement. They tell you how to feel about issues, they inform you and not other vulgarians that might fill your little head with populist nonsense. Thankfully, neoconservatism is on the steep decline with the election of President Trump.

        Liked by 2 people

        • margarite1 says:

          Kristol is nuts! How many lords and barons are there to vote in any conservative who only represents said lords and barons? I hope I never see this idiot on TV again….he’s living in the wrong century and the wrong country. He just comes off as a parasite anyway – not my idea of an alpha male at all.

          Liked by 3 people

          • ZZZ says:

            really nuts!

            who writes that expecting “the people” he insulted to keep on supporting him?

            another myopic bloviator who will now feel the shun of “the people”.

            smh ’til my neck hurts.

            Like

      • Fe says:

        Kristol (insert expletives here) can drive off a cliff for all I care. He’s the most arrogant punkdit (yes it’s misspelled on purpose) in the world. What an embarrassment to the human race.

        Liked by 7 people

    • Trumppin says:

      when we had a robust economy that was booming there were jobs americans didn’t want to do but what kristol ignores (on purpose) is that in our economy today of high inflation and low wages , with high unemployment in a world of part time minimum wage jobs as a reality there is no job americans are not willing to do to survive the clinton/bush/Obama global economy

      Liked by 2 people

      • I think about jobs that it was more Americans didn’t want to do them for the low price and/or high risk the employers started offering as soon as illegal and legal imported labor became plentiful enough to do them for any wage.

        Liked by 3 people

        • Not to mention there are jobs Americans won’t do when the alternative is living on the government dole. Obama removed the welfare requirements to work that Reagan put into place. So now instead of a binary choice (work / don’t work) it’s a three way choice (work/don’t work/loaf) with the latter category encompassing welfare and/or perpetual student status (arguably also federal jobs / contractors fall into the latter category too).

          Like

      • Marc says:

        He knows but doesn’t care. He’s happy to have a type of corporate fiefdom where multinationals pull the strings and control entire industries and government agencies. Kristol is the enemy of a free people. Distrust of anything he says has been the wisest move for me.

        Liked by 9 people

    • WSB says:

      I have believed since June 2015 that Bill Kristol is hiding something very illegal. My opinion, but, it seems very obvious to me.

      Liked by 2 people

    • jeans2nd says:

      Why bother thinking about Bill Kristol at all? We Won. They Lost. Bill Kristol – Who Cares?

      Liked by 4 people

    • oldtoenail says:

      You have covered one of the issues that I believe very important. I usually think of the Bill Kristols of the world as parasites. This includes almost all of the present day press, and many, many other people in the present culture. A host can only tolerate a certain number of parasites before it begins to fail. Honest news reporting (of which there is very little) and entertainment are examples of items that have value but when the cost is immensely about the value to the public then it becomes parasitic. These parasites must be severely thinned out in order for the people to survive. If we continue on the present (before Trump) path the free society will continue to weaken and in the future will die. Once the host dies the parasite’s death will follow.

      Liked by 5 people

    • Paul Killinger says:

      The only problem with that being the immigrants we’re now taking in are by and large unskilled and uneducated.

      Hence, in aggregate their direct welfare and related expenses versus their productive value are a net drag on GDP, not the gain some imagine.

      Liked by 3 people

    • Blade says:

      I’m thinking of Bill Kristol’s comment the other day about how the white working class of America is worthless and should just be replaced by immigrants.

      Ironically that putz Bill Kristol ( Weekly Standard ) was plagiarizing a Kevin Williamson ( National Review ) from almost exactly a year ago in a paywalled article, see excerpts here. He blurted out exactly how the GOPe scum view the middle class …

      The truth about these dysfunctional, downscale communities is that they deserve to die. Economically, they are negative assets. Morally, they are indefensible. Forget all your cheap theatrical Bruce Springsteen crap. Forget your sanctimony about struggling Rust Belt factory towns and your conspiracy theories about the wily Orientals stealing our jobs. Forget your goddamned gypsum, and, if he has a problem with that, forget Ed Burke, too. The white American underclass is in thrall to a vicious, selfish culture whose main products are misery and used heroin needles. Donald Trump’s speeches make them feel good. So does OxyContin. What they need isn’t analgesics, literal or political. They need real opportunity, which means that they need real change, which means that they need U-Haul.

      And yes, he is still employed there. Listen to the condescension in his “voice”. He drips contempt at the rabble rousers who are nothing more than true Americans in every sense of the word. He is in the wrong country. He is more despicable than the loyalist Tory monarchists we defeated ( but unfortunately did not completely eject from the nation after the revolution ). These people are traitors to the Declaration and America itself.

      What we are seeing is evidence of a theory myself and many more before me entertained. At the root of the human psyche in the majority of sheeple is a need to re-order themselves into a strict, predictable class structure, of Kings or Queens in a ruling class followed by a nobility class of favored aristocracy, and peasants or serfs doing the work of those above them. It may be genetic, lies flocks of birds, ant colonies, bee hives, from a bad gene that lies dormant in those of us who are free, independent and fighting for liberty. This might accurately be called neo-Feudalism, and it of course is tempting and acceptable to sheeple rulers ( elected officials, hereditary monarchs, United Nations leaders ) and the worshiped nobility of Hollywood celebutards, sports figures, and of course the Uniparty apparatus. These members of our new nobility are similar to Robespierre, except that they are rooting for the ruling class to smash the serfs rather than the reverse ( they still may suffer the same fate I think ). This is exactly where they fit in, Kristol, Williamson, and the thousands of others whose cover was blown by Donald J. Trump, blue collar billionaire who obviously was always more comfortable in the company of the working class serfs than the pretentious would-be rulers who are his peers.

      We can literally thank God for this man DJT.

      Liked by 2 people

  4. This post needs to be featured and pinned to the top of the home page for a couple of days.

    Liked by 7 people

    • Yes, at least for me it’s not light reading. I’m going to copy and print it out.

      Liked by 8 people

      • gettherejustassoon says:

        I was thinking along the lines of reality economics and fantasy economics. Between the two you have never-never land economics. However, I’m not sure this works.

        So, I’m just as befuddled at the conclusion of the article as I was at the beginning. Consequently, I’m left with a line from some movie (forget which one), “Okay, explain this to me like I’m a two-year old.”

        Like

        • starfcker says:

          Okay. Prosperity is simple. Abundant jobs, and low cost of living. Any questions?

          Liked by 7 people

          • gettherejustassoon says:

            Well, to quote Mark Twain: ““Don’t use a five-dollar word when a fifty-cent word will do.”

            So, why did the others guys use so many words to describe what you did quite simply?

            Liked by 4 people

        • The key for me is the chart with the different-colored lines. It shows how different goods & services have become less or more affordable over the last few decades.
          Look over that chart for a minute, and every day come back to it for a minute or so, for the next few days.
          Think about which of those prices have been helped by globalization and which have been hurt. And think about which ones affect you for just a few months versus your entire lifetime.
          After a few days of this, come back and skim Sundance’s article and see if some of it starts to click for you.

          Liked by 3 people

          • gettherejustassoon says:

            Thank you for the helpful suggestion.

            Like

          • WSB says:

            Claygate, what is fascinating is that President Trump knows what EVERY widget costs.

            Every widget you would find in a small city Trump has knowledge of. Having done some work with the company years ago, they are sharks on every price of every widget, fee and anything nailed or not nailed down, all over the world.. No President has had that type of understanding since WWII.

            He knows.

            Liked by 1 person

          • Nordic Breed says:

            Right. You can’t eat a TV.

            Like

  5. Phil aka Felipe says:

    BTW, what is the status of reinstating Glass-Steagall?

    Liked by 3 people

  6. Phil aka Felipe says:

    Kudos to Professor Sundance and Professor Blyth.

    Liked by 4 people

  7. Good analysis and correct. But the BIGGEST part is missing. Money. 50% of all transactions involve money and the key question is how money is created. Before 1913 money was created by the US government without debt. From the end of 1913, if the US government wants money, it asks to borrow money from the (private) Federal Reserve, which it must pay back, with interest.
    To truly become a rich nation, we must reclaim the ability to create money debt free through our government, not by a private central bank where money has to be paid back, which in turn requires income tax.
    Good references:
    – Web of Debt
    – No more national debt
    http://www.publicbankinginstitute.org

    Liked by 8 people

  8. Gil says:

    Well speaking of economics…sears n kmart have dropped the Trump furniture line….
    http://www.breitbart.com/big-government/2017/02/11/report-sears-kmart-remove-trump-line-home-furnishings-website/

    Liked by 1 person

  9. MIKE says:

    You are a great teacher. Looking forward to more articles on “the little engine that could “. It is really starting to make sense now. Please, more articles on this dynamic. Thank you, bigly. Go president Trump.

    Liked by 6 people

  10. Glenn Stehle says:

    Labour can be partners with real capitalism, but never with finance capitalism.

    Liked by 2 people

  11. Ploni says:

    This can be stated much more succinctly:

    Fiction vs. Fact?
    Dream vs. Reality?
    Imagination vs. Knowledge?

    Liked by 1 person

  12. SoCal Patriot says:

    After watching the Tucker interview, I went and watched the professor’s lecture that Tucker was referring to. The professor says global Trumpism is the product of economic displacement and racism. In his view, if you are opposed to immigration, you are likely a racist. I have lived in SoCal for 30+ years. The objection isn’t to immigration, it is to unlimited illegal immigration. I don’t see it as racism. I see it as nationalism and patriotism.

    Liked by 15 people

    • WSB says:

      He’s not quite there with Farage yet. He will be! LOL!

      Like

    • srr says:

      Yes, and his heavy pedaling of the, ‘Trump is literally Hitler’ meme, and, ‘nobody should have to work, we should just take and redistribute money from the richest 10% actually producing things (working)’, and all his militant Leftist preaching, is quite worrisome –

      Like

      • srr says:

        Oh, and that he was preaching that Leftist ‘Activist’ garbage (that violent Antifa thugs use to ‘justify’ their Black Block/Brown Shirt rioting), to Uni students, under the guise of an “Economics” lecture … brrrr … yes, I know no one but God is always right, and bad people can not only make good points, but also become good people, but instinct tells me this is one professor who shouldn’t be trusted, most of all with feeding impressionable young minds.

        Like

  13. rsanchez1990 says:

    This paragraph from Peter Navarro’s Death by China helps explain the divide between the two economies and why stimulating one doesn’t help the other:

    “Trying to jumpstart our economy with a massive stimulus in the absence of a vibrant manufacturing base has been like trying to start a car without spark plugs or gain traction on slick tires. It just can’t be done. Sadder yet, a great portion of that stimulus money leaks right out of our economy and stimulates Guangzhou and Shanghai rather than Gary and Pittsburgh. Indeed, the false Keynesian vision of a virtuous cycle of spending just won’t play in Peoria when so much of what we buy isn’t made here and our biggest trading deficit partner never reciprocates.”

    The Keynesians in power either fail to see or willfully and negligently ignore the distance between the two economies. Massive stimulus, zero interest, quantitative easing all help Wall Street but don’t trickle down to Main Street. But, as sundance alludes to, this distance also prevents Wall Street from containing Main Street. The Federal Reserve will raise interest rates to “cool down” MAGA, but the divide between the two economies will make it a largely futile effort.

    One thing I don’t get though, is how the third dimension in economics is undiscovered if sundance details it here. Is this something that mainstream economics journals have been suppressing for fear that it will reveal the Federal Reserve as a paper tiger whose only real power is making bankers richer? As Trump’s presidency progresses and the economy improves in spite of the Fed, will the evidence be too compelling for leading economists (Keynesians) to suppress anymore?

    Liked by 4 people

  14. Westport2017 says:

    Sorry, this guy is spouting a bunch of bs. Inflation in 1980’s caused by very loose monetary policy under Jimmy Carter’s Fed, the belief that Fed could actively engage in economy by manipulating money supply (M1) as a counter cyclical stimulus …sound familiar? Things went too far and inflation expectations ran wild until Paul Volker out on the brakes and wrung out inflation premiums in the bond market. Wages have gone down in rust belt because of off shoring yes and shift of manufacturing to Mexico and Asia…Trump’s view. Also there’s a big problem w mismatched skill sets i.e. not enough people w coding skills etc, automation also important. Main point is this Wall Street hasn’t caused this, and neither has a deep state Fed. Companies have moved off shore and taxes and regulations in US are too high. Wall Street isn’t the problem they are just immune from these other factors. Love this web site and Sundance but this cryptic stuff is just a bit much. Fortunately Trump gets it and that’s what’s important.

    Like

    • jeans2nd says:

      “…a big problem w mismatched skill sets i.e. not enough people w coding skills etc, automation also important…”

      You are misinformed. There are plenty of Americans with coding and engineering skills. Who do you think designs and programs automation? Maintains the automation? And the “rust belt” is now The Tech Belt. Good grief.

      Liked by 1 person

      • Deb says:

        There is a shortage of engineers for actual manufacturing. My husband is a process control engineer for a paper company, he has a MS in Chemical Engineering. We need more chemical and electrical engineers, but those are the more difficult degrees to obtain and not enough young people are willing to do the work. We are facing the retirement of the majority of the engineers in industry over the next ten years, without enough coming down the pipeline to replace them. The fix for this is education, making sure kids have the math skills and then creating the interest in engineering.

        Liked by 2 people

      • Westport2017 says:

        many jobs are unfilled and mismatching of skills is A problem, but not THE problem. not something that’s popular to point out on this website, but nevertheless it’s true. I’m Trump supporter, but not into group think. thanks for you comment. we just disagree.

        Liked by 1 person

    • rf121 says:

      “Wall Street hasn’t caused this”. Maybe, but that sure took advantage and did not give a crap about it’s impact on the working class. Not their concern maybe, but for many payback will be a bitch. As to not enough people with coding skills. If there were no H1B visas they would have to hire from within the US and there are plenty of people with coding skills.

      I recently walked through a major hi-tech campus and I might as well have been overseas.

      Liked by 2 people

  15. Gaius Gracchus says:

    Yes, he gets it.

    Another honest economist is Michael Hudson, who also talks about the entire FIRE sector (finance insurance real estate) as a leech, that sucks away at the productive economy. I highly recommend reading “Killing the Host”. Hudson has a completely different understanding of economics than either classical liberal economics or neoliberal economics and has written favorably about the American School of Economics from the 1800s. This was the economic policy the Republicans put into place with Lincoln.

    Very fascinating stuff, overall.

    Liked by 3 people

  16. Harold William says:

    I read an article way back in 1998 or 99 quoting an American CEO of a large Mfg Co., to paraphrase he said American workers make too much money they make more than Brazilian workers and we will bring them down in line with Brazilian workers. What we have witnessed the past 20 years is this plan being implemented. Offshore what jobs that can be sent away and import workers at poverty wages for jobs that can’t. The GOPe and other politicians are all a party to this conspiracy and the first wrench thrown into the works was the tea party

    Liked by 4 people

  17. Neural says:

    Good video with good information, but I still have to disagree, once again, with the idea that the elites “don’t get it” or “don’t understand”. They know damned well what they are doing, they know why they are doing, they know why people are reacting the way they are, and they have no intention of making any changes. All that matters is the global agenda. The reactions of the average people are predictable, and were known long ago. The fake “surprise” by the elites is just that, fake.
    Part of their entire ruse is to keep the average man convinced that they are stupid and don’t know what they are doing.

    Liked by 7 people

    • WSB says:

      Redistribution of wealth from all four corners.

      Liked by 1 person

    • Well you see…..eventually, the world will meld together into one……America will be a third white, a third brown and a third black…….Africa, China and Russia will soon follow. Then those races will begin to interbreed and there will only be one race and we will all wear those little uniforms like they used to wear in China. Communism will have prevailed and we will have unity and utopia……

      Now, let us all sing……I’d like to teach the world to sing……in perfect harmony…..

      Like

  18. Trump's Aussie Mates says:

    More power to the Austrian School of economic thought. Also, we need to get our policy makers off the Keynesian bandwagon and onto thinking more about Say’s Law.

    Liked by 2 people

  19. vincentjappi says:

    The Fed is the culprit.

    Liked by 2 people

    • ABSOFREAKINLOUTLY!! Larceny by conversion, funding insolvent governments, gutting the middle class in SEVERAL countries (Research what they did to Japan after WW2). Funding wars and murders internationally, and the list of their vile sins go on and on! These harlots have their OWN COUNTRY called The City Of London (look it up) it’s just like the Vatican is it’s own country inside of Rome. These guys are deconstructionists on an international scale. They make Soros and Goldman look like Michael Brown stealing blunts from the immigrant grocer.

      Liked by 1 person

  20. jeans2nd says:

    Our first challenge – the BAT Tax.

    “Rep. Kevin Brady (et al)…want to provide a big tax cut to multi-national corporations…To offset this corporate tax cut, Republicans are seeking a new border adjustment tax (BAT) on imports…

    The BAT would essentially function as a national sales tax, driving up the costs of everyday items…

    The working families…would bear the brunt of this new tax…
    http://www.dallasnews.com/opinion/commentary/2017/02/06/rep-kevin-bradys-bat-tax-will-punish-middle-class-families

    Need more info on this please.

    Like

  21. AndrewJackson says:

    That stat about wallstreet bonuses vs all minimum wage workers put together was insane! No wonder Trump won on the economic nationalism and bringing back production and jobs to the US.

    Liked by 1 person

    • missmarple2 says:

      If I remember what he said correctly, Wall Street bonuses were around $24 billion and salaries from ALL minimum wage jobs ere $14 billion.

      That was as scary to me as the other statistic that was a shocker (and Trump quoted many times) that since WTO the US has lost 70,000 factories!

      Knowing those 2 numbers, how could anyone not understand why Trump won? Firthermore, I will bet he won by more than we were told, because of vote fraud.

      Like

  22. I have watched many of Prof. Blyth’s talks now on Youtube. He is a smart guy.

    A bit too liberal for me, but he understands the bigger picture behind globalism and neo-liberal economic lies.

    Like

    • rf121 says:

      And a global warming nut job to boot. He will be wishing for warming the way the next 20 years will be going.

      Liked by 3 people

    • John R says:

      Thank you, I agree smart guy, even I enjoy listening to him and his perspectives on things. He does not like Trump in the slightest – constantly calls him a racist. He has defended him in only a few areas – like the NATO payments from Europe and Trump being right to call them out for this. It is not so much about two economies in his view but it is more about the elite ruling class against everyone else. Each crisis actually being saved by bailing out the elite wealthy class and essentially being paid for by the mass. Simplifying his views, but nonetheless he believes in confidence theory, and detests austerity. He points out how silly it is for taxes that the government who prints the money and gives it to you then takes it back when they can just print more money. Interesting view because we have been printing massive amounts of money while the same time collecting taxes – but ultimately ignores the fundamentals and long term day of reckoning. Ownership and debt are relatively simple ideas, enforcement of rules around those as well. The issue is that a country is just a proxy for its citizens (all) and it cannot go on indefinitely extending debt. Eventually there will be a day of reckoning and it will be painful. I’m convinced many countries have already gone beyond the point of being able to pay back their debts (like Greece) it is just that their ability to print money will mask the problem for a while (not Greece). Think of all of the inefficient government jobs as another form of welfare. People at least working for the government think they have something useful to do. The vast majority do not. Take France where 20% of the labor force works for the government. Then add the real welfare recipients in France and you have a larger percentage (30%) of the population that is not productive and is a burden on the rest of the economy. It is a way of hiding the problem – creating beaurocracy as a form of welfare and thus also political influence. Who screams the loudest (government workers, teachers, etc.). Note – I’m not say all government workers are welfare recipients and not productive, but rather it is they are an investment – a cost of doing business and the proportion (example say tolerance for terrible teachers) that are inefficient costs the rest of society a great deal. Add up pensions and other promises, the welfare state, the government jobs, and then factor in that we all already know these countries are bankrupt. Solutions – inflation/ deflate currency by printing more. What this does is dilute the value of the debt we can’t pay. It’s the indirect version of chapter 9 bankruptcy. Who suffers – future generations, pensioners, … but when and where does this all end??? Good question – Mark doesn’t have an answer for that. So while he has a lot of interesting thoughts, at the end of the day he doesn’t offer real solutions.

      Like

      • I have solutions, but most normies don’t want to do anything radical.

        Incremental change is the way of nature, but we’re not going to realize our ambitions in our lifetime due to the pace of “real change”.

        So people complain about the way things are, while simultaneously unwilling to take the bold action necessary to get change tomorrow.

        Like

  23. Let’s consider the YUGE and OBSCURE dimensions that work hand-in-glove to disadvantage/disintermediate all but the richest and fastest (i.e., biggest). Over time, these factors stifle both companies and countries, driving the chasm between rich and poor citizens and destroying the middle class.

    TRANSACTION SPEED: When Hedge Funds (Americans’ nemesis fingered by President Trump) can trade at the speed of light, with such massive volume (individually, and with collusion collectively) that they can whipsaw both markets and currencies, they literally generate mindboggling psychological-momentum-only profits and confiscate the wealth of slower-transaction average/follower investors. They can literally displace senior management, destroy companies and take down governments.

    There is no reason to perpetuate this: All trades should be throttled back in speed to permit “full market awareness”, and in daily volume to prevent “velocity-driven pricing”.

    INSIDER TRADING: Now that Congress has legalized their personal insider trading, which they undoubtedly extend to their largest donors (globalist corporations and unions) and public influencers (media, entertainment and fellow politicians), their honest constituents get screwed – either by planted media/culture stories to falsely drive down share prices, or with non-public governmental actions that will boost/hurt share prices.

    Courts should subject Congress to the same laws as the public, and Federal authorities should have algorithms that identify likely insider-trading beneficiaries to trigger automatic investigations and prosecutions (Google’s internet-information control algorithms would make this look like child’s play.)

    RACKETEERING at GLOBALIZATED SCALE: Corporations now have scale and power that dwarfs most nation states – particularly those in high tech industries. They now not-so-secretly conspire at Sea Island and Davos to devise new ways to enrich themselves by impoverishing and effectively enslaving entire populaces. They can buy any politician and entire legislatures, not to mention the leaders of mineral-rich countries. Their dominance of technology, communications and media give them near-unopposable control.

    America must lead in prosecuting RICO cases that end collusion by incarcerating its leaders and confiscating assets, limiting the scale and influence of individual corporations through forced break-ups (as we did with AT&T), and ending oligopolies to restore unfettered competition in all industries.

    Liked by 4 people

  24. boogywstew says:

    The Democrat Economic Model is the Economy of the Future as in another form of time travel. You tax Republicans until you can’t anymore and than you borrow from future Republicans. It’s sometimes referred to as “borrowing from Priebus to pay Pedro”! As long as there is a future there will always be solvency. Also, some wags will look at it as lifting a bucket while you’re sitting in it!

    Liked by 2 people

  25. Joe Dan's cousin says:

    I know the smartest person I ever read is a
    Mark. “I think”

    Liked by 1 person

  26. The division between Main Street and Wall Street is caused by the trade deficits which hurt Main Street but help Wall Street. They have been expanding since 1976.

    Almost all of the modern economists who have been decrying them are business economists with Italian last names: (1) Navarro, (2) Morrici, (3) Ammendola, (4) Gomory. Then there’s us, a family of economists (grandfather, father and son). I’m the one in the middle.

    Our latest piece (yesterday’s American Thinker) argues that Trump’s targeted tariffs would balance trade (and thus help Main Street), while Paul Ryan’s Border Adjustment Tax would not. See:

    http://www.americanthinker.com/articles/2017/02/paul_ryans_border_adjustment_tax_vs_donald_trumps_targeted_tariffs.html

    Liked by 1 person

    • WSB says:

      Why would our Ryan-led House (no business background) lower income taxes and create a border tax that hurts everyone? Bilateral trade agreements and tariffs implemented for individual imbalances are just common sense. I concur. Thank you for the link.

      Like

  27. C. Lowell says:

    I saw Prof. Blyth speak a few weeks ago, and everything he said made sense. Really smart and phrased difficult concepts in easy to understand language — I’m a fan even though he’s from Columbia and Brown. Followed up by reading the following Foreign Affairs article, which his excellent:
    Global Trumpism https://www.foreignaffairs.com/articles/2016-11-15/global-trumpism
    Why Trump’s Victory Was 30 Years in the Making and Why It Won’t Stop Here

    Like

  28. Archie says:

    I listen to the Larry Kudlow radio show on Saturdays. Two points.
    1) Over the past 8 years it is clear that Kudlow, and economists in general, have no freakin idea how the economy works because they can not explain the how and why of what happens.,
    2) Kudlow keeps shooting his mouth off about being on the Trump economic team but in 8 years I have never heard one mention of the sundance version of the economy from either him or any of his guests.

    Like

    • Westport2017 says:

      Larry Kudlow’s a great man and knows what he’s talking about. We’re all Trump supporters on this site, but guess we see things differently. Trump wouldn’t have put together the cabinet he has if he agreed with you. Kudlow, btw, played a minor role supporting and advising Trump.

      Like

  29. NJF says:

    Great interview.

    Thank you SD for keeping this an ongoing conversation here at CTH, I learn something new every time!

    Liked by 1 person

  30. RE: “Inflation on domestic consumable goods ‘may‘ indeed rise at a faster pace. However, it can be expected that U.S. wage rates will respond faster, naturally faster, than any fiscal policy because inflation on fast-turn consumable goods becomes once again re-coupled to the ability of wage rates to afford them.”

    BIG UNPREDICTABLE FACTOR: Will the 94 million unemployed American Citizens move INTO the workforce (subject to reductions in government-support duration, levels or waste/fraud/abuse) faster than the Illegal Aliens move OUT of the workforce (subject to E-Verify or [Self-]Deportation or becoming Last-in-Line for Citizenship)?

    Liked by 1 person

  31. unconqueredone says:

    While acknowledging substantial cluelessness on financial issues, a nagging thought keeps coming back to me, and it goes something like this:

    We “main street” folks are the knowing or unwitting co-conspirators in the “wall street” scheme. It’s called retirement investing. We hand off the funds of our retirement hopes and dreams to a fund or manager or similar. The best of us knows something of what’s in that fund, but the majority only know if it is gaining value (beside what is put into it). We look at the quarterly statement and if it’s too far off, we want something done. So what is the fund manager to do? They look for stock with a better return and dump the under performing stock. In the main street world it looks something like this: I complain, my manager puts pressure on say Walmart to up their return, they fire my neighbor and work the other employees harder. Walmart also does the long term effort of pressuring suppliers, and buying product wherever it can be had the cheapest. All of this hurts main street folks.

    We (our retirement funds) are the guilty culprit!

    Like

  32. TrustyHaste says:

    Help. Translate. What is he saying around 1:32. “We have a worlds of super low prices, but it’s very hard to get a _______? ” His accent is beautiful and I listened 3 times and can’t figure out what he said there.

    Like

  33. The Ghost formally known as Prince says:

    I had an economcs professor in college who taught us that macroeconomics is not “real”; it’s an abstraction, a theoretical construct. He went on to explain that attempting to “manage the “macro economy” through policy is bound to fail if it ignores the micro-economic building blocks that comprise it.

    A prime example is the Keynesian notion that government “stimulus” can help to “prime the pump” and get the economy “moving again”, solely on the basis that increased government spending makes Keynesian economic metrics “look” better. As if fudging the numbers on a government economic report magically transforms the real world!

    The same same trick the government tries to pull by changing the method of calculating unemployment, or inflation, so it can report a lower number. Pure fiction! But a nice talking point for the politicians.

    On the whole I like Sundance’s explanation, but take issue with calling the Wall Street economy “fake”. It is absolutely real, as real as any other part of the economy. The difference is it is increasingly tied not to the American “Main Street” economy but to the “Global Main Street”. In effect the decoupling is exactly as you describe, where Main Street USA is left behind the same way Greece is left behind in the EU: The concerns of the financiers trump the interests of the people. That can only go on for so long in a Republic before the balance tips and there are more people losing than winning. Then the tide of policy will shift and more parochial economic concerns will prevail.

    And that’s not a bad thing.

    Like

  34. Archie says:

    Wow, sundance, wtf? I just watched Mark Blyth ─ Global Trumpism on youtube and that guy is a total asswipe.

    Like

  35. bitterlyclinging says:

    George Soros once remarked that the American worker needed to be taken down a peg or too, wages, lifestyle etc…
    Open the borders, flood the country with illegals ready, willing, and able to work for less than the current wage structure, ship as much production offshore to low wage havens…
    Sounds like what just went on the previous 8 years
    “America has a lawlessness problem.” Jeff Sessions
    Texas illegal votes fives times, ICE nets 160 in overnight raids in LA vicinity.
    Now back to that video of blocks and blocks of buses waiting to take the paid rioters to the next scheduled conflagration.

    Like

  36. Jeff says:

    Many TV zombies who get their understanding of economics from the chattering class do not understand the X and Y axis let alone the Z axis of separation .

    The Z axis is the illusion constructed by the GLOBALIST uni-party media and politicians . Declaring America to be a SERVICE ECONOMY all the while replacing once GOOD BLUE COLLAR jobs with illegals . Most notably the TRADESMAN sector and TRUCKING or transportation sector .

    People ask me ….” Jeff …who will home builders get to build our home now ? ”

    To answer that question one must first understand what is means by ” THE Z LAG ”

    Donald J Trump’s policies will now FAVOR MAIN STREET pushing the X and Y in a reverse direction . The Z-LAG is the time it takes to train and implement AMERICAN WORKERS .

    INSTEAD of TAX DOLLARS being used for the CLOWARD AND PIVEN STRATEGY to COLLAPSE AMERICA / CAPITALISM . Those same dollars can be spent in training the new American workforce . FILLING THE Z-LAG gap ASAP .

    The importance of decentralizing the DEPT OF ED so that STATES can use fund for VOCATIONAL programs as well as funneling students to the liberal indoctrination colleges .

    At some point the X Y and Z will converge where we ride out the Z-LAG ….then its off the the races with a NEW ROARING 20’s .

    and so as to NOT repeat History and the end of the last roaring 20’s

    I suspect private enterprise will see BOOT CAMPS for SNOWFLAKES to deprogram them just as in the military . To go along with that …President Trump will announce his version of pay off your student debt by public service …..all will shorten the Z-LAG time frame to MAKE AMERICA WORK AGAIN !!

    BAZINGA !!! ““We support reinstating the Glass-Steagall Act of 1933 which prohibits commercial banks from engaging in high-risk investment,” said the platform released by the Republican National Committee. “

    Like

  37. wodiej says:

    In a nutshell, businesses don’t exist to give people jobs. They exist to make money. They will take advantage of every government allowed practice to make the most money they can by spending the least on production and employee costs while overcompensating their execs. So, they must be forced to do the right thing. The way to do this is with actions such as Trump is doing with relaxing regulations and imposing tariffs on work outsourced to other countries by US companies.

    Liked by 1 person

  38. Jeff says:

    The Wall Street / GLOBAL model is flawed because it is based on the power of the FEDERAL RESERVE . A private owned GLOBALIST entity …NO FEDERAL ….NO RESERVE …100% an illusion paper currency begets a 100% illusion economy.

    Talk about a TRUMP FED NOTE ….here ya go ..WARNING SHOT FIRED

    https://scontent-atl3-1.xx.fbcdn.net/v/t1.0-9/s720x720/16508018_1891249414454142_5669908561657805614_n.jpg?oh=a0abae16b6f2697bc7a06aa36c9d18a1&oe=59402B53

    Liked by 1 person

  39. jonvil says:

    Let’s see if I have this right.
    Those at the top of the food chain produce products at the lowest possible wage so that they can profit by selling the same products to the low wage earners (and all those who are now unemployed) who can’t afford them.

    What a plan: Produce lots of ‘cheap’ product in foreign nations and market them to those with little or no money.

    Could this be why so many reports of multiple hundreds of stores going out of business?

    Like

  40. JoeS says:

    At least there is one person at Brown University who is not insane, even though he is a democrat.

    Like

  41. amanda4321 says:

    Catherine Austin Fitts-Trump Taking On Corruption & Lawlessness

    How does Donald Trump win against the evil trying to stop his Administration? Financial expert Catherine Austin Fitts contends, “Trump wins by staying focused on the real issues. The U.S. economy needs a variety of things, including turning the federal budget around. . . . . The reality is the federal budget has a negative return to taxpayers. It’s got to be turned positive. . . . That comes down to tax reform, infrastructure and it comes down to Obama Care. . . . Trump is the Titanic Turner, and he needs to stick to the big issues. . . . He has to make sure the shriek-o- meter does not destroy his top lieutenants and put space between him and them. Otherwise, the pigs are going to step in and run things.” In closing, Fitts says, “What’s killing this economy is corruption and lawlessness. That’s what’s killing the economy. We need to deal with these problems.”

    Like

  42. Rebel Mope says:

    I just watched several of these videos. Three points need to be addressed.
    1) If Trump supporters are racist for opposing immigration, doesn’t that make employers who hire illegal aliens over Americans equally racist?
    2) If Global Warming is a real event, just how will taxation minimize its effects?
    3) If taxation is the answer, just how does the gap between the $800 government hammer and the $80 private sector hammer close?
    The problem with government is it is out of line with the private sector. Government workers are rarely fired. Every innovation aimed at reducing the workload of government never reduces man/hours. Even a simple regulation like requiring sprinkler systems in buildings never reduces the number of firemen needed. Even pension benefits are astronomical compared to the private sector.

    Like

  43. john lorenz says:

    Example of pro wall street anti main street law–Dodd-Frank

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s