Dr. Alan O'Sullivan

We were weak since Peter Magar won the election in Hungary, his TISA party.

But what struck for me was that there was a huge turnout, 80%, something like 80% turnout, number one, which was really impressive.

And number two was the scale of his victory.

So there's two things that jumped out for me.

What's your reading of it?

I've always been a non-orthodox economist.

I've always criticized the mainstream and tried to look to alternative, what I regard as more realistic ways of modeling the economy.

And I discovered the work of Hyman Minsky and what he called the financial instability hypothesis.

Then in 2005, I took a look at the level of private debt, both in Australia and America, and realized that the level of private debt compared to GDP was growing at an exponential rate.

It had to stop growing at some point.

And when it did, credit would go from adding to demand to subtracting for demand.

And I expect there to be a huge financial crisis as a result of it.

Now, mainstream economists don't even look at credit because according to their theories of how banks operate, they see banks as just agents who enable one person to lend to another.

and therefore the level of credit doesn't affect the economic activity.

That's what they assume.

Now, I knew that was false.

So I started looking at the level of private debt and said, when it stops growing, there'll be a huge crash in demand, and we're going to get a rerun of the Great Depression.

So on this week's show, and in light of all the geopolitical turmoil, we're doing something a little different.

This week, I have two very special geopolitical experts, economist and professor of finance, Constantine Gurdjieff, who will be very well known to Irish listeners.

We'll start the conversation, and then we have...