Simon Jack

He's Donald Trump's pick to be the next Fed governor.

And he's gone through the first hurdle of being appointed.

Now he is somebody who is not a fan of printing money indiscriminately to basically bail out everyone.

He thinks that when you print money, what you do is that you – one, you can stoke inflation.

And when you've got high oil prices, you don't want to be doing that.

And second, that what it does is artificially – it inflates the value of assets and

And what that does is the haves have more in terms of people who own assets, so it actually stokes inequality.

Exactly.

history has shown.

So his ideology what we know of it so far is that he's much less inclined to sort of start the printing presses of money to kind of flood the market with new printed money which helped back then.

He's much less likely to do that than his predecessor Ben Bernanke at that time and therefore we can't rely on that particular hose pipe and as Mohamed El-Erian esteemed economist and chief economic advisor to a German alliance and used to be the head of a

the world's biggest bond investor so he knows what he's talking about he said it's a bit like a fire brigade that's run out of water because he points if you look at government's ability to intervene look what we've been through well the bailout of the banks and all the stuff we just talked about we then had covid where we were paying millions of people's wages you then had the last energy crisis where energy bills were being subsidized in 2008 debt in the uk is a percentage of the whole economy the national income was 40 it's now 100 pretty much

So the government's ability to respond has been eroded much more.

Yeah, so you've got – that is absolutely staggering.

And this is a point that I put directly to Sarah Breeden, the deputy governor of the Bank of England.

I said, hang on a second, you know, macroeconomic shock.

So that means something that really shocks the financial system.

An energy crisis is it.

Don't forget that Fatih Birol, who's the boss of the International Energy Agency, said that what we're seeing now, the ongoing shut of the Strait of Hormuz, is the biggest energy shock we've seen in our lifetime –

Worse than 1973.