Justin Benedetti

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Justin Benedetti
Posted 6 months ago
Michael Metcalfe: We need money for aid. So let’s print it.
Gimme a break Darrell. If you can't draw a slope best fit line through any of those graphs to see that prices are rising rapidly, well I don't know what else to say to you. By providing those graphs here, you have only acted to prove my point NOT yours. The price rises are staggering in percentage terms, if you don't cherry pick your data range.
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Justin Benedetti
Posted 6 months ago
Michael Metcalfe: We need money for aid. So let’s print it.
I'm not sure where you live but my instinct is to tell you that your short term memory is actually not very good. The price data on food and gas prices can easily be obtained on-line and the trend is way UP over the past 7 years; it's not even debatable. And what good is it if the cost of a TV is cheaper if all the things I need to survive are substantially more expensive? Well for starters, no they are not just buying bonds. They are buying MBS as well. But that point is moot. The fed can't stop buying bonds for the same reason Japan can't stop buying bonds, as well as Europe. It's all about interest rates. Take the fed's demand out of the bond/treasury market and what do interest rates look like? How much of government revenues will go to paying JUST the interest on the debt?? And when a signficant percentage of revnue goes to just servicing the interest on the debt guess what?? You are de facto INSOLVENT. So there you have it. The FED, JCB, and ECB are stuck buying bonds essentially forever. And historically speaking the fed never gets out in front of inflation. It always happens before the fed actually reacts to it. Let's think of this another way: let's say tomorrow inflation spikes over 10%. The fed immediately sells bonds/treasuries to raise rates. Inflation slows slightly, but the economy slows , while government revenues decline and interest payments on the debt SOARS. So there you have it-- the fed is caught in a terrible catch-22 and will NEVER be able to appreciably raise rates should inflation get high. QE (money printing) creates a facade of "solvency". Remove it and the market will react accodingly. This should concern you. QE is a pandoar's box and myraid problems will come about due to its distorting affect on all asset prices.
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Justin Benedetti
Posted 6 months ago
Michael Metcalfe: We need money for aid. So let’s print it.
Ouch. This was painful to listen to. The critical assumption here is that printing massive amounts of money does not create inflation, and it never will. There are two striking flaws in Michael's theory and I find them so obvious that he was doing a disservice to the public by not addressing them. 1.) Inflation here in the U.S. is MUCH higher than government statistics indicate. Anyone who buys food, gas, has utility bills, college tuition, healthcare, knows inflation is high. The government omits certain goods from the CPI, that would otherwise make inflation statistics much higher, on par with reality. Calculations have been done by economists where they used the inflation calculation as it was performed in 1980 and it gives signficantly higher inflation numbers. The upshot: despite what the government and Michael Metcalfe say, ifnlation in general is moderate to high NOT absent. 2.) The monetary base has expanded but who's to say that signficantly more of that money will NOT make its way into the economy in future years?? In this situation, if lending and spending rapidly increase, inflation can easily skyrocket. This was the worst TED talk I have seen, and I must have easily watched over 100 videos on here. I just hope this isnt a sign of things to come. I also find it quite fitting that this guy is in finance. These financiers who come up with fancy derivatives and subprime loans etc., nearly blowing up the entire financial system; and now this guy who thinks we can just PRINT MONEY(currency) INDEFINITELY TO SOLVE THE WORLDS PROBLEMS. What a joke!
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Justin Benedetti
Posted 8 months ago
How can this idea be brought to reality?
I think it would be best to have the fund/portfolio and the research and development two completely separate entities; i.e. raise capital in the way Stein described BUT, utilize the capital to purchase slices/percentages of drugs that are ALREADY being developed at corporations/companies around the globe but are within their very early stages. In this way, the fund would still accomplish its goal of providing positive returns to investors while increasing the amount of breakthrough drugs. This is by NO means easy, however I could see this as being a viable way of getting this idea off the ground. The very difficult part is putting together a very proficient management team who can properly diversify the portfolio in a way such that the risk is well distributed, and returns based on that risk, are reasonable and consistent.
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Justin Benedetti
Posted 8 months ago
Roger Stein: A bold new way to fund drug research
This is a brilliant idea, that I particularly like for its simplicity and effectiveness at solving a seemingly overwhelming problem. Stein's research has been effective at taking him very far. There is one final problem that needs to be solved and that is "who will be responsible for developing the drugs in this gargatuan portfolio?". I believe this idea can be taken to the next step by having the portfolio company make financial agreements with R&D pharma around the world to buy slices/percentages of their early stage drugs in development. This is NOT easy, but it is nevertheless feasible. The additional influx of capital going into this industry would also aid in getting more drugs to market by limiting risk across the board. Thank you very much for this thought provoking presentation. I DO think we will see this become a reality in the not-too-distant future.
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Justin Benedetti
Posted 9 months ago
Stephen Cave: The 4 stories we tell ourselves about death
I am young, and I frequently think about death; however, I do not fear it. I try to keep death close to me -- it is a personal check on myself to ensure I am living my life the right way. I do not shy away from it; I embrace it. Should I die for what truely matters to me, so be it -- even if it were to happen tomorrow. I feel if others lived their lives this way, the world could move in a very positive direction. Less focus would revolve around material items, and selfish wants; and instead be reoriented towards a passionate purpose and a development of righteous character. . There is life after death, of this I am sure. If you don't believe me, take the time to really look at the beauty that surrounds you.