“There is an entire generation of traders out there who have only lived through expansionary monetary policy,” said economist and author Daniel Lacalle during a candid discussion with Hedgeye CEO Keith McCullough on The Macro Show today. These traders think “central banks can create magic out of unicorns,” he says.
It’s true. Wall Street loves easy money.
Unfortunately, central bankers and economists around the world continue to fabricate straw man arguments to obscure the underlying economic reality.
Here’s a brief excerpt where Lacalle digs in:
“Keith, we talk math. They talk religion. They always say that it would have been worse if [quantitative easing] hadn’t been done. Yesterday, I was going through the numbers of the ECB’s results from QE and when you look it’s failure everywhere. But the only answer you get to that from Keynesian economists is ‘It could have been worse.’ To me, it could have been worse as a concept just doesn’t work.”
In the video excerpt above, Lacalle and McCullough discuss why Europe is in deep trouble, the fallacy of mainstream economist thinking, and whether President-elect Donald Trump’s economic plan can actually prop up the U.S. economy.
Want more?
- Click here to watch the full interview with Lacalle, "HedgeyeTV Exclusive: Italy’s Banking Crisis & What it Means for Europe."
- Click here to read Lacalle's Hedgeye Guest Contributor piece, "Mamma Mia! Why Italian Bank Bailouts Won't Be Enough."