Economy featured

A Bigger Boat

By Nate Hagens, originally published by The Great Simplification

March 20, 2023

container ship

Recorded March 15, 2023

Description

In this Frankly, Nate shares some context about how he thinks about the recent global banking and financial market news. How do the catalysts triggering the SVB collapse compare to the 2008 financial crisis? What might world financial market reactions indicate as we move closer to The Great Simplification? What can we learn and proactively plan for by taking a balanced, comprehensive view of the global financial system and banking? One thing to be sure of: world governments and central banks “are gonna need bigger boats” as more and more entities require bailouts and guarantees. Eventually that ‘boat’ may become so big that it will be “Too Big to Save”.

Show Notes

00:07 – Frankly #25

00:22 – Silicon Valley Bank and Credit Suisse 

01:51 – The Four Horsemen

03:08 – Financial Leverage

03:15 – Positive Yield Rate

03:55 – 18 trillion dollars worth of bonds in negative interest rates in 2020

06:21 – Solvency issues of 2008/2009 bank failures

06:24 – US Government bailout of depositors in SVB failure

06:56 – 100 basis point drop in federal funds rate ending point on the tightening cycle

07:33 – FDIC Insurance Amount

08:33 – Russian-Ukraine War’s Effects on Europe’s resource access

08:59 – Germany’s deficit increase

10:03 – Lehman Brothers, Too Big To Fail

10:24 – JP Morgan

Youtube Link here

 

Teaser photo credit: By kees torn – MAERSK MC KINNEY MÖLLER & MARSEILLE MAERSK, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=82090447

Nate Hagens

Nate Hagens

Nate Hagens is the Executive Director of The Institute for the Study of Energy & Our Future (ISEOF). Allied with leading ecologists, energy experts, politicians, and systems thinkers, ISEOF assembles roadmaps for understanding how human societies might adapt to lower-throughput lifestyles.

Nate hosts the podcast The Great Simplification, where he has conversations with experts in energy, ecology, government, technology, and the economy to provide a systemic view of the world around us.

After ten years in finance, Nate left Wall Street to study the interrelationships between energy, ecology, and economics—and the implications for human futures. He was the Managing Editor of The Oil Drum, one of the most respected websites for analysis and discussion of global energy supplies and implications of the upcoming energy transition.

Tags: banking system, financial bailouts

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PattiMichelle Sheaffer
PattiMichelle Sheaffer
3 years ago

Well, I guess I’m finally not the only one saying Climate Breakdown is the key phrase…
” …In sober language, the IPCC set out the devastation that has already been inflicted on swathes of the world. Extreme weather caused by climate breakdown has led to increased deaths from intensifying heatwaves in all regions, millions of lives and homes destroyed in droughts and floods, millions of people facing hunger, and “increasingly irreversible losses” in vital ecosystems… ”
https://www.theguardian.com/environment/2023/mar/20/ipcc-climate-crisis-report-delivers-final-warning-on-15c
This phrase should have been used instead of “global warming,” starting decades ago…

This comment is a call to do so immediately as it transparently, consistently, and portably frames the problem. Having done that, it would be very useful to tie, in detail, the impacts that problems in the fundamental technology (money) would have with our ability to feed ourselves (thereby averting widespread chaos) as Climate Breakdown strongly curtails the food supply.

An important adjunct may also be impacts to medical technologies.

Ultimately, it will be about preventing chaos, and having done that, preventing armed raiding, as Anthropology knows that this is the nature of “village life.” Can governments understand this during the “Simplification” and provide useful response?

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