Josh Kosman returns to once again talk about the Private Equity industry, an industry many of us have little knowledge of and an industry that greatly impacts all of us.
The facts are that the number two private employer in this country is a Private Equity firm, KKR, and among the top ten private employers in this country five of those companies are PE companies. There is no question that PE firms have a direct impact on our economy and thus should be on the radar screens for anyone following the economy.
I asked Josh Kosman to come back on the show to give us an update on PE since we last spoke and to my surprise they are making a dramatic comeback. The reason is simple, with the Federal Reserve keeping interest rates far below the natural rate of interest the investment managers at pensions and mutual funds are looking for some yield to meet the hurdle rate (minimum acceptable rate of return) that is mandated by the fund.
In effect, the Fed is pushing money right into the hands of the very PE firms that saddle good American companies with debt while gutting the infrastructure at the same time. It is a deal that leaves the companies unable to compete internationally and makes the US less competitive as a result. Hopefully Josh can give us some good news that things are changing...
Buy the book "The Buyout of America" by Josh Kosman
Dave Pollard, author of the How To Save The World blog, joins me in an episode dedicated to our Culture of Dependency and how our civilization has evolved into a highly complex system that lacks the resilience to handle the multiple crises that we now face.
This episode examines the structure of our complex society and how it has been a product of an era of abundant cheap energy (ie. petroleum oil). We also discuss overshoot and what that means to future societies. Along those same lines we talk about a transition to steady-state economics (while hashing out the probability of it ever being implemented).
A truly enjoyable guest and a great episode. Thank you all for listening. Towards the end of this podcast we talk about how the listening and reading community is as much a part of the New Revolution as the speakers and writers.
-Ol' Two Beers
Dave Pollards Book Finding the Sweet Spot
The Upside of Down by Thomas Homer-Dixon
In the absence of a guest I pick up the microphone and go the distance by myself and recount the events that occurred while on my trip to North Carolina. Oh... the things I learned. It was certainly an eye-opening experience and I share my experiences in this episode.
I also tell the tale of what it was like to be inside the halls of one of the nations best B-Schools, Duke University's School of Fuqua. Interesting stuff and worth a listen (or two).
Towards the end I give my rebuttal to the argument that Ol' Two Beers is against Progress. It is utter nonsense that I want to return to the days of yore and I defend myself against such a simplistic view. I think anyone who confronts this very same argument will be armed to the hilt with counter-argument weaponry that is the equivalent of ICBM's just by listening to the last 15 minutes of this podcast.
Many of us know the proponents of hyperinflation; Marc Faber, Gonzalo Lira, the National Inflation Association, and maybe even Peter Schiff falls into this category. When we look to countries that have experienced hyperinflation in modern times we can see direct parrallels between their monetary policies and that of the US's in the past few years and we can draw a quick conclusion that we will experience hyperinflation as well.
In this interview with Erik Townsend, enterpeneur and private investor, Erik argues that this conclusion is too simplistic and does not take into account the 'Five Fundemental' differences between the US Dollar and those currencies mentioned as examples of hyperinflation.