A subtle understanding of economic change comes from a knowledge of history and large affairs, not from statistics or their processing alone…

Arthur Burns (Federal Reserve Chairman and Milton Friedman‘s economics professor)

Since the last financial crisis, Renegade Inc. has produced a long series of documentary programs and interviews with leading economists and thinkers like Richard Werner, Noam Chomsky, Steve Keen, Michael Hudson and many others. I was honored to be invited by Renegade Inc. to discuss the risk of European banking crisis.

As I hypothesized, the banking crisis many of us have anticipating for years now, might not happen at all. One systemically important bank’s failure might trigger an irreversible cascade of events that could devastate the global economy and a crisis that would be difficult to control. Instead, it appears that the central banks will backstop the banks’ losses to no end, shifting the burden of losses on the broader economy in order to keep their banking franchise intact. This is what we had in the socialist world: even during the depths of recessions, there were no bank runs, no banking crises. Only small banks were sporadically allowed to fail with limited fallout for the broader economy. The full discussion is below:

For investors who share our concern with inflation and the capital destruction it could unleash, Krainer Analytics proposes a high quality, high-octane solution based on a tried and tested management process we had created and managed since 2012 (summary at link).

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