so the debt to g.d.p. ratio doesn't go up they would like real g.d.p. but they're not getting it which means they'll take inflation and the fed has more or less said that you know they said officially they have a target of two percent inflation but the threshold for tightening is they said two and a half maybe more it's a car putting the brakes on ice you know you don't stop right away you keep going for a long time so they could go way past two and a half percent and i've heard president evans of the chicago fed say he wouldn't mind three three and a half so the fed is signaling they're telling you you know we've got to get nominal g.d.p. to five but we'll take three and a half percent and one hundred percent real growth of that's what it takes so they're ready for the inflation welcome back we now continue our conversation with university of texas professor dr james ball for it i asked dr galbraith whether governments can be rendered in voluntarily insolvent. in their own currencies the risk that a government could run is that the rest of the world ma

so the debt to g.d.p. ratio doesn't go up they would like real g.d.p. but they're not getting it which means they'll take inflation and the fed has more or less said that you know they said officially they have a target of two percent inflation but the threshold for tightening is they said two and a half maybe more and it's a car putting the brakes on it's you know you don't stop right away you keep going for a long time so they could go way past two and a half percent inflation i've heard present evidence of the chicago fed say he wouldn't mind three three and a half so the fed is signaling they're telling you you know we've got to get nominal g.d.p. to five but will take three and a half percent inflation one percent real growth of that's what it takes so get ready for the inflation welcome back we now continue our conversation with university of texas professor dr james ball for it i asked dr galbraith whether governments can be rendered in voluntarily insolvent. in their own currencies the risk that a government could run is that the rest of the wor

so the debt to g.d.p. ratio doesn't go up they would like real g.d.p. but they're not getting it which means they'll take inflation and the fed has more or less said that you know they said officially they have a target of two percent inflation but the threshold for tightening is they said two and a half maybe more and it's a car putting the brakes on it's you know you don't stop right away you keep going for a long time so they could go way past two and a half percent and i've heard present evidence of this. fed said he wouldn't mind three three and a half so the fed is signaling they're telling you you know we've got to get nominal g.d.p. to five but we'll take three and a half percent inflation one percent real growth of that's what it takes so they're ready for the inflation now i want to mention your new book you have a new book coming out it's called the death of money and in the book you say that the present currency war will lead to a collapse of the bretton woods two dollar standard can you explain why a collapse is a global outcome of the curr

so the debt to g.d.p. ratio doesn't go up they would like real g.d.p. but they're not getting it which means they'll take inflation and the fed has more or less said that you know they said officially they have a target of two percent inflation but the threshold for tightening is they said two and a half maybe more it's a car putting the brakes on it's you know you don't stop right away you keep going for a long time so they could go way past two and a half percent inflation i've heard present evidence of this cargo fed say he wouldn't mind three three and a half so the fed is signaling they're telling you you know we've got to get nominal g.d.p. to five but we'll take three and a half percent inflation one percent real growth and that's what it takes so they're ready for the inflation now i want to mention your new book you have a new book coming out it's called the death of money and in the book you say that the present currency war will lead to a collapse of the bretton woods two dollar standard can you explain why a collapse is a global outcome of t

so the debt to g.d.p. ratio doesn't go up they would like real g.d.p. but they're not getting it which means they'll take inflation and the fed has more or less said that you know they said officially they have a target of two percent inflation but the threshold for tightening is they said two and a half maybe more it's a car putting the brakes on ice you know you don't stop right away you keep going for a long time so they could go way past two and a half percent inflation i've heard president evans of the chicago fed say he wouldn't mind three three and a half so the fed is signaling they're telling you you know we've got to get nominal g.d.p. to five but we'll take three and a half percent inflation one percent real growth of that's what it takes so get ready for the inflation now i want to mention your new book you have a new book coming out it's called the death of money and in the book you say that the present currency war will lead to a collapse of the bretton woods two dollar standard can you explain why a collapse is a global outcome of the cur

we had a debt to g.d.p. ratio of one hundred twenty seven percent that was higher than it is now our national debt was higher than it is now after world war two we were broke by republican definitions what it what it eisenhower do he borrowed what in today's dollars would be trillions of dollars to build a national highway system and that put people back to work and that created i don't i don't i don't think right now the federal government is really in a position to borrow trillions of more dollars on top of our deficit and our debt already because i don't do you really want to go further in debt to china i mean suppose they cash in on the bonds that they that they that they hold right now there is only holding a little i don't know that we're in a position to do that we can i use you know of the japan's debt to g.d.p. ratio is almost twice what it actually is over twice what ours at the end of the day if you're in if the federal government's going to want to fund a program massive spending programs of the size a

at the trajectory of debt to g.d.p. ratio in most european countries including some of the surplus countries you will find that that aid to think is that. far exceeds. any increase in national income so if we had a problem with that to see it has to go we have a bigger problem now and given the. stagnation we choose now spreading it's not stealing from east to west the north of the cells of the european union it is. we discuss it in the end of the debt crisis. ok now i want to ask you a follow up to that what are some of the specific risks that could potentially do you rail this incipient recovery. well let me just begin by saying that i do not see any recovery what i see is the nation in the surplus countries and continuing deterioration in the periphery what has happened and has given us a semblance of stability of stability even the recovery is that the money markets have decided to shift their attention away from the euro zone simply because they're not convinced that the european central bank really in the end come what

by any stretch of the imagination it really is not if you look at the trajectory of debt to g.d.p. ratio in most european countries including some of the surplus countries you will find the way to think it isn't that. far exceeds. any increase in national income so if we had a problem with that to see it as ago we have a bigger problem now and given the. stark nation we choose now spreading its nasty wings from east to west the north of the cells of the european union it is. we discussing the end of the debt crisis. ok now i want to ask you a follow up to that what are some of the specific risks that could potentially d. rail this incipient recovery. well let me just begin by saying that i do not see any recovery what i see is the nation in the surplus countries and continuing deterioration in the periphery what has happened and has given us a semblance of stability of stability even the recovery is that the money markets have decided to shift their attention away from the euro zone simply because they're not convinced that the european central bank really in the end come what may if it

at present levels is actually not increasing the ratio of debt to g.d.p. that stable ratio stable is probably declining now so in the current school students of the united states government there are. no risk to go no reason to believe that the private investors are going to be leaving the dollar for other currencies for any reason they haven't done so yet there's there's no cause on the horizon we see no reason why. that was james goldberg economic professor at the university of texas texas at austin it's time now for today's big deal. as always i'm joined by my doppelganger no not really want to know me yet harrison my favorite who's going to help me talk today about government misuse mismanagement and abuse of funds so let's get right to it now it's fair to say that no one particularly likes over use of government funds and for those who can understand in tolerate the occasional spending inefficiencies even they know that there must be a line drawn somewhere somewhere anywhere now the federal government is well aware of how wasteful it is and this is why

at present levels is actually not increasing the ratio of debt to g.d.p. that stable ratio stable is probably clouding now so in the current school students of the united states government there are. no no reason to believe that the private investors are going to be leaving the dollar for other currencies for any reason they haven't done so yet there's there's no cause on the horizon we see no reason why. that was james goldberg economics professor at the university of texas texas at austin it's time now for today's big deal. as always i'm joined by my doppelganger no not really want to know me yet harrison my favorite who's going to help me talk today about government misuse mismanagement and abuse of funds so let's get right to it now it's fair to say that no one particularly likes over use of government funds and for those who can understand him tolerate the occasional spending inefficiencies even they know that there must be a line drawn somewhere somewhere anywhere now the federal government is well aware of how wasteful it is and this is why each and

at present levels is actually not increasing the ratio of debt to g.d.p. that is stable right ratio stable is probably declining now so in the current school stance of the united states government there are. no risk to no no reason to believe that the private investors are going to be leaving the dollar for other currencies for any reason they haven't done so yet there's you know there's no cause on the horizon and see no reason to do it. that was james galbraith economic professor at the university of texas texas at austin it's time now for today's big deal. as always i'm joined by my doppelganger no not really even one of our own we had a harrison my favorite who is going to help me talk today. about government misuse mismanagement and abuse of funds so let's get right to it now it's fair to say that no one particularly likes over use of government funds and for those who can understand and tolerate the occasional spending inefficiencies even they know that there must be a line drawn somewhere somewhere anywhere now the federal government is well aware of

ratio of u.s. household debt to out but now with the household debt rising from just over twenty percent in the early one nine hundred fifty s. to over ninety percent of g.d.p. before the financial crisis began the question is do you believe this debt will present a problem for the u.s. going forward going to be two reasons one is that the private sector borrowed not to constructing that's what the the the business sector when it borrowed money can borrow money to have build factories and so on the household sector when it borrowed only borrows to buy houses and therefore you have a housing bubble appearing out of that which built some housing construct. but you mean when it happened too much housing construction and mainly drive of the process rather than actually building new and new facilities that people live in what you need for a robust economy is the new factories to be bill new products to be designed new technologies to be invented and so on and that will fix on borrowed money and that hasn't happened so what david said happened is that households that could borrow going to gigantic skyll dramatically increasing the level of that house to service a

ratio of u.s. household debt to out but now with the household debt rising from just over twenty percent in the early one nine hundred fifty s. to over ninety percent of g.d.p. before the financial crisis began the question is do you believe this debt will present a problem for the u.s. going forward going to be two reasons one is that the private sector or it's not to constructing that's what the the the business sector when it borrowed money can borrow money to have build factories and so on the household sector when it borrowed only borrow to buy houses and therefore you have the housing bubble appearing out of that which built man some housing construct. but you mean when it happened too much housing construction and mainly drive of the process rather than actually building new and new facilities that people live in what you need for a robust economy has been new factories to be bill new products to be designed new technologies to be invented and so on and that will focus on borrowed money and that hasn't happened so what david said happened is that households that could borrow on a gigantic style dramatically increasing the level of their house to serv