Peter St. Onge

Macro is...

Essentially, pure propaganda just going on how the government can can fix anything.

But so broadly speaking, I had gone.

So I went to McGill in Canada as a completely mainstream program.

I did my graduate degree at George Mason, which is an Austrian program.

But my undergrad was was mainstream.

And so I had not learned about, you know, any of these things like I didn't know how business cycles work.

And under Keynesian, business cycles are almost like the weather.

Like you get an earthquake or the weather's bad one year.

Like there's no cause to it.

Literally under Keynesian, it's called animal spirits.

Like what is an animal spirit?

Like how do you predict animal spirits?

It just kind of pops up like, you know, everybody's feeling really good.

And all of a sudden, everybody's feeling really bad.

There's no explanation for it.

Now, if you go back to Austrian or classical economics, it's what I said earlier, right?

You screw around with the money, with the interest rates.

Yeah, it's pretty simple in terms of the cause and effect, which is that when it's really cheap to borrow and then you make it really expensive to borrow, you're going to end up wiping out a bunch of businesses that could only survive on the cheap capital.

OK, so those are called malinvestments.