Charlie Munger talks on U.S. economy today. | [C:C.M Ep.5]

In this episode, Charlie Munger was asked on U.S. economy, why don’t U.S. have inflation with record budget deficits, unemployment, and expansion of the balance sheet?

In this episode, you’ll learn:
-What is Charlie Munger comments on U.S. economy today?

#CharlieMunger #DailyJournal

[Transcript]
AUDIENCE MEMBER 00:07
Mr.Munger. we have record budget deficits, record unemployment, and record expansion of the balance sheet. Why do you think we don’t have inflation? And secondly, could you recommend some good books you’ve read the last year?

CHARLIE MUNGER 00:24
Well, regarding inflation. You know, the economists of the world thought they knew a lot more than they did.

What has happened is weird. In response to the Great Recession, all the nations in the world have printed money like crazy and have bought all kinds of investment assets. They’ve done things that nobody in the economics profession would have recommended on this scale, even five or so years ago.

And yet, the inflation has been very low.

I think we all have a lot of things to be modest about when we talk about economics.

Lyndon Johnson said that giving a talk on economics was a lot like pissing down your leg. It feels hot to you but it doesn’t influence anybody else very much. (Laughter)

And I’m afraid I can’t do much better than Lyndon Johnson could. (Laughter)

AUDIENCE MEMBER 01:29
Books? Any books you recommend?

CHARLIE MUNGER 01:33
Oh books. People send me books more than I can read, [inaudible] so I skim a lot of them very rapidly. And so I’m not sure I’m the right one anymore to ask.

Books have been so important to me all my life. I find that my — I used to read fewer books and read them better than I do now. And of course, I don’t see very well. So maybe you should talk to some younger man about your books. (Laughter)