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  noob_zarathustra Reply

  *Not a TLDR/summary really, just a random bunch of thoughts*

  So this video is Ben Bernanke delivering his prize lecture for the Nobel he was awarded last year and nobelprize.org describes his work as follows:

  “What is the role of banks in the economy and society? What happens if they collapse?
  The foundations of modern banking research were laid by Ben Bernanke, Douglas Diamond and Philip Dybvig in the early 1980s. Through statistical analysis and historical source research, Bernanke demonstrated how failing banks played a decisive role in the global depression of the 1930s. Bernanke’s research shows that bank crises can potentially have catastrophic consequences. This insight illustrates the importance of well-functioning bank regulation.”

  Those who were around during the financial crisis of 08 would know that he was also the face of the bailout. He was the Chair of the Federal Reserve and was undisputedly the most influential personality in the entire saga of the bailout (even more than Obama as he was newly elected). If there was a face for all banks’ ego that everyone left unemployed and hurt would think of, it would be his. That’s how much he represents of all what the bitcoin community resents. The Fed Chair who led the largest financial bailout ever fancily titled [TARP](https://en.m.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008#:~:text=It%20created%20the%20%24700%20billion,usefulness%20of%20targeted%20asset%20purchases.) that led to creation of around $700bn to $1trn (from what they’ve themselves reported) back in 08 ~ it was a lot more than it sounds now.

  This whole situation is very ironic because Bernanke spent all his life prior to his time at fed as an academic across Stanford, NYU and Princeton. His area of specialization was specifically banking risks and credit markets. All variants of monetary collapses that have been theorized by academic economists, his ideas have played a key role in most thinking. All banks were/are operating atleast at an operational and regulatory level at the field that people like him set out with their banking research. When faced with the crisis, he was pretty much facing all that he had laid the foundations for. He was not just bailing out the banks, but also himself since all of what he knew and did in some ways all came down shattering. I earlier mentioned it’s ironic because he was awarded the Nobel for this academic work he did that laid the foundations of the collapse. And this is what he’s summarizing in a half an hour lecture he’s required to deliver for accepting the Nobel.

  The timing of this award reflects the global state of affairs and where we stand on a broad range of issues. Looks to me like a proxy detector for an incoming collapse not just in economic environment but also social structures since it stems from failure of ideas that they (we?) are still oblivious about.

  Sharing this here because I’m sure a lot of this moulded and incentived ideas for bitcoin for both Satoshi and early participants. Obviously none of them were in it for the money back then. To me, it’s the most classic activist move of all time. I’m sure if Satoshi is still around, he’d likely give this a watch and have his own lecture he must have in his head for all the flaws the banking and monetary world as viewed by Bernanke has.

  If I ever get to just pick 2 people I’d like to see talk, it’d be Satoshi and Bernanke since I’m sure they’d both have a lot to talk and sort out.

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  March 10, 2023 at 2:18 pm