This is stock number 9J392A. We are here at Summit Automotive in Fond du Lac, Wisconsin, your new and used Jeep and Jeep Compass headquarters. Today we are checking out this super clean 2019 Jeep Compass latitude. This vehicle has the 2.4 liter four-cylinder motor which pumps out 180 horsepower. This Jeep has been fully safety and inspected by our service shop. It has a fresh oil and filter change. All the fluids have been checked and topped off and this Jeep is 100% ready to go. Diamond black metallic is the color. We shoot all of our videos in 1080p 60 frames per second so if you have HD capabilities on your computer tablet or smartphone device turn them on right now because it is definitely your best way to check out the quality and condition of the vehicle before seeing it in person. And if you'd like to check out all the photos on this Jeep in the upper right hand part of your screen is a link right to our website. Click that and check us out there. It comes with the painted alloy 17-inch rims, Firestone Destination 22560RS 17 tires. These tires have probably about I'd say 80-90% of the tread left, maybe even a little bit more. Front fender, no dents or dings on that. Has the projector lamp, I'm sorry the headlamp, halogen headlamps. You get the little Jeep logo on there. Headlight lenses are nice and clear. Factory fog lights, front bumper is in excellent condition. No major dents, dings or cracks on that. Grille is in nice shape. Get the chrome trimmed grille, the chrome trimmed Jeep lettering and no dents or dings on the hood. Passengers side front fender, no dents or dings on there. And the passenger side rim, no scuffs or scrapes. As you go down this side of the vehicle, take note of how clean the body is, how reflective and mirror like that paint is. We take these HD videos so if you are far away or even if you're close by and just can't make the trip down but you're still interested in purchasing the vehicle, you can see the vehicle, hear the vehicle and have confidence in what you're looking at before you even get here. So when you do get here there's absolutely no surprises. And that's why we offer the Summit Auto Fastpass option in the upper right-hand part of your screen. A link right to our website where you can apply for financing, get pre-approved, see a payment quote, even appraise the trade all from the comfort of your own home. So when you get here all you got to do is drive the vehicle, love it. You'll be all set to go.  As the front tires, I do like that they put the four-wheel disc brakes on these compasses and you do get the capitalist fuel fill back here as well. Coming around to do the back of the vehicle, no dents or dings or cracks on that rear bumper. You can see with a little bit of sunlight we have left that there's a lot of metal flake in that diamond black paint, really good looking color. Get the chrome trim 4x4 Jeep and Latitude logos back here. This is a manual raised gate. Do you get a format back here, these seats do fold on for extra storage. And this one comes with the tire inflator kit. Those seats do fold down for extra storage. We'll show you that a little bit and the back hatch is being held up nicely by those shocks there. Shuts nice and solidly and easy to go down the driver's side just as clean as that passenger side. No dents or dings on that rear quarter. Looks really good. For full disclosure, this back rim is an excellent shape as well. And down this side of the vehicle looks really really good. Very nice condition. You do get heated power mirrors, enter and go system. So it has the keyless entry system where you just have to have the key in your pocket. Inside you get the premium vinyl and cloth interior with the honeycomb design on that cloth part. Power driver seat with factory lumbar or driver's side lumbar. Factory all-weather floor mats. Part of that cold weather group. Auto headlamps, tilt and telescopic steering wheel, power windows, power locks, and power mirrors. And as we hop inside the vehicle you can see that this one has 14,924 miles. You get the digital speedometer, outside temp, compass display, and you can change those corners to read pretty much whatever you'd like. Instrument cluster is very nice and clean. You get the heated leather-wrapped steering wheel, cruise controls on the right, Bluetooth and information center controls on the left and then audio controls in the back of the steering wheel. Comes with the seven inch Uconnect 4C radio which gives you AMFM and Sirius XM radio capabilities. This is also where your backup camera is going to show up.  This one also has projection. So if you have Android Auto or Apple CarPlay on your cell phone you can project it to the screen. So if you've got Waze or Google Maps or some other navigation program on your phone you can project it to your screen and then it's like you have navigation right on your screen. So that's pretty cool as well.   It's hot in here. You get your active drive one with auto snow, sand and mud, four-wheel drive lock system which is cool on the compasses, Augs and a USB jack and then you get the nine-speed automatic transmission. This one has start-stop capabilities, electronic parking brake and stability control. You get the keyless entry with the remote start, all-weather floor mat on that side and the passenger side seat is an excellent condition as well. No rips or tears. This Jeep's never been smoked in. It smells very clean inside. The headliner is an excellent shape as well. You do get map lights up there and I believe it's an auto dimming review mirror. We'll take a quick look at the back seats and then we'll check out under the hood. I'm going to put this front seat up just a little bit so I can show you how those back seats fold down. Back seats are just as clean as the front seats. No rips, no tears back here. It does have the latch child safety system. Very nice and clean. All-weather floor mats back here.  Like I said these seats do fold down. You can see just how nice and flat they go, which is awesome when you have to haul a bunch of extra stuff. Everything will slide right up there. There's not really much room to fall in between there and you get your tether anchors back here. Doors are trimmed out similarly and you do get the child safety locks on the back doors. Bottoms of the doors look really good and we'll take a quick look under the hood. I would personally like to thank you for checking out the video today and hopefully from this HD video you will have been able to tell just how clean this Jeep is all the way around inside and out. Under the hood we have the 2.4 liter multi-air motor engine bay is very clean runs very smooth 180 horsepower. This Jeep has been fully safety and inspected by our service shop has a fresh oil and filter change. All the fluids have been checked and tapped off. Vehicle has been gone through mechanically 100% and this one is 100% ready to go. To see more pictures of this Jeep or one of our other 450 new and used cars, trucks, SUVs, minivans, Wranglers, you name it we got it go to our website www.summitauto.com. Full pictures and descriptions of every single vehicle from two locations all www.summitauto.com and if you'd like to check out more HD videos you can go to www.youtube.com slash www.summitauto.com. Remember to like subscribe and share on this video and all the videos that you see there in fact in a second you will see a link to subscribe to our YouTube channel on your left. It links more Jeep Compass videos like this one on your right if you have not been to our website on the bottom link to this vehicle on our website click those check us out and we really look forward to help you with this super clean 2019 Jeep Compass Latitude four-wheel drive in diamond black clear coat. Thanks again.


Vegans continue to disguise their diet of sugar and slop under the idea of health, yet the opposite is true. They are depriving their bodies of nutrition only found in animal foods and acting as if they are in their optimal physical state. Let's see how this young man stays lean, fit, and mentally satisfied. Good morning beautiful people, welcome back to another full day of eating vlog with me. I have just, I feel like I say this in like every other video but I have actually just come back from swimming, which means, which means, well, which actually means that my actual breakfast, like proper breakfast, is in the oven because I'm roasting up some Japanese sweet potatoes, which by the way I don't know why they take three times longer than regular ones but, anyways, but yeah, like I've said a million times before, the hunger after swimming is like, you need to do the 20,000 calorie challenge or something, so while I'm waiting for my sweet potatoes to roast, I whipped up a smoothie just because I wanted something like sweet, refreshing, hydrating, and also full of goodness, so in this mix we have got, so yeah, in here I have got some frozen mango, I think I've spoken about my conspiracy theory about frozen mango before because it's like, I bet they don't wait until it's like properly ripe to freeze it, do you know what I mean? So we're kind of just like blending, anyways, it's a whole other thing, so yeah, frozen mango, and then a quarter of a cup of hemp seeds, I always put that in my smoothies like you guys know, then just for some extra green goodness, I put in some romaine lettuce, I would usually use like spinach, spinach, and then to bump things up further, I put in a scoop of thrive, and I've spoken about thrive loads of times on this channel because thrive is pretty much the only supplement, if you want to call it a supplement that I take every day, just because even though I feel like my diet's very balanced, it gives you a full spectrum of nutrients, and it's also kind of a gut health formula, it's a probiotic as well, so yeah, and usually I would just neck it down with some water, but if I'm making a smoothie, then it goes in here, yeah, I'm not gonna lie, this smoothie is pretty good, it's very sweet. I gotta give him some credit here, that smoothie is unrealistically green and bright, compared to what the other vegans are making, usually they end up with like some dark brown, green, or purple slop, so this looks pretty good in comparison, but it's very classic unnatural foods, no real vitamin, mineral, elements, and fatty acid content to these meals, we have mango, which is just really frozen sugar, you know, by the time you process the fruit, blend it up, oxidize it, any semblance of vitamin C and whatever small amount of vitamins were in the mango, devolve into sugar, the hemp seeds are seeds, they don't digest efficiently in the human digestive system, and all seeds are high in anti-nutrients, phytates, you know, bind to minerals in the body, and a lot of these seeds also have phytoestrogens like lignins, romaine lettuce, really just a high-water content vegetable with no real vitamin content, and this kind of bothers me as a pet peeve, where these people make a smoothie that might hypothetically taste good, and then they add vegetables to it, yet they don't understand that adding vegetables to a smoothie isn't actually good for you, because vegetables being good for you is one of the biggest lies we've ever been told our entire lives, and then he had that scoop of the Thrive micronutrient mix, which is really just a bunch of freeze-dried fruits and vegetables, and we know that fruits and vegetables only contain small amounts of water-soluble vitamins like vitamin C, they have small amounts of the plant forms of certain vitamins like carotines and vitamin K1, and these don't efficiently convert in the body into nutrition that humans can use, and even if they did, he's not consuming them in the presence of fat, so this meal is essentially all carbohydrates, and that's how all vegan diets are, it's just carbohydrates, macronutrient energy, no actual amount of nutrition, otherwise these people would be as healthy as they claim to be. All right guys, so my Japanese sweet potatoes are finally ready, these literally took like an hour and 20 minutes to make, I don't know why, the reason I love having Japanese sweet potato for breakfast is because it tastes like vanilla cake, right, and actually these ones are very very starchy and dry, so it's almost as if you're eating vanilla cake, but it does taste of vanilla cake, and then we can just spruce it up with some delicious sweet toppings, and of course some peanut butter, some peanut butter. All right, so for toppings I'm going to start with some fresh rasps, and these are actually locally grown, like I've said in some of my previous videos, we are so blessed in the summer to get locally grown berries, like cherries, strawberries, blackberries, the whole shebang, here comes the fun part, I usually use almond butter for this, but today I'm just in a peanut butter mood, and this is the runny runny peanut butter from Morrison's, which I always big up because it comes in a glass jar, it's runny, look at that, it's hella runny and smooth and it's cheap, I've also got some locally grown cherries, and these are the kind of cherries, let me show you, I'll bite into one, you see, these are the cherries that are like deep deep purple inside, full of antioxidants, they're so sweet, just can't get enough, do you know what, I feel like this does need a bit of salt, I don't know why I feel like it needs salt, but it does, because the peanut butter is not salted, hold on, a little sprinkle of salt, and I cannot wait to dive into this, and happily apply to face, this video is definitely lacking some vegan music to jam to, what it's certainly not lacking is childish behavior and craving for sweets, we are already on dessert number two of the day, and it is only meal number two, every single one of these vegans, all they're doing is literally disguising desserts as something healthy, when it's very clear that putting fruit and peanut butter on a sweet potato for breakfast is not normal, local fruits, sweet potato, I don't really have an objection to consuming these types of foods, you do have to be mindful though that they don't have micronutrients, they don't have vitamins, minerals, elements and fatty acids, it's just macronutrient caloric energy that he's consuming, same thing with the peanut butter, he's just sprinkling high omega six fat, and a small amount of omega six fats isn't too bad, and peanut butter doesn't have the highest amount of linoleic acid, but still the point is lack of micronutrient nutrition, he's only consuming calories, and a high presence of omega six fatty acid consumption, you know with carbohydrates, with a lack of omega three to balance, definitely causes inflammation, and regardless of how many antioxidants he's consuming in these local fruits, omega six fats are very unstable and incredibly oxidized, and you cannot consume enough vitamin E to stabilize those fats in your body. But yeah for lunch today I'm going to keep it simple but very tasty, and I'm going to make a batch of my favorite dip of all time, which is a high protein dip, and it's made from edamame beans, peas, tofu, lemon juice, cumin, tahini of course, and salt pepper, and then you can add additional things like dill or parsley if you want as well, yeah and you can use it as like a sandwich filler, you can just dollop it on top of salad, salad like you would with hummus, or you can do what I'm going to do today which is just roast up some veggies and use it as a good old dump. All right so we've got lots of peas, make sure you don't overcook them, there's nothing worse than brown mushy peas, literally just shock them if they're frozen for like one to two minutes, some steamed edamame beans, and I've got about half a block of tofu, this is actually, well it says firm but we don't really get like proper firm tofu in the UK for some reason, but actually smooth works best in this recipe, because remember you want it to be kind of smooth and creamy, kind of like hummus, and then of course you will need some good proper runny Arabic tahini, the juice of two fresh lemone, little bit of cumin, then some salt, pepper, blend it up, and that's it, this is going to make kind of a big batch, I would say like four servings at least, give it a little taste to see if it needs more green food, extra needs more green, perfect. All right first of all before I plate this up can we just appreciate how these are roasted, can we just appreciate the squish factor, all right guys there you have it, very simple but very tasty, and yeah like I said this is one of my favorite dips of all time, and I love the contrast between like the sweet potato because obviously it's very sweet and this is quite bitter and lemony, this dip, so good, also I know this is a pretty light lunch for me, you're used to seeing me eat like huge green salads etc, but as we're going out for dinner later and we're gonna eat big, plus we're going trampolining so I don't want to be like too full, you know what I mean, anyways I'm gonna shut up now, nothing left to do apart from happily apply to face, not too sure about the term apply to face considering what I've heard my viewers want to do to my face whether it be good or bad, yet we have another meal using a blender, you know the first smoothie he had needed a blender, the peanut butter for breakfast on the potato needed a blender, now he's using a blender to make hummus, seeing a pattern here, very high carbohydrate content, even more oxidized omega-6 fats, so this was sweet potatoes dipped in a mix of tofu, tahini, as well as some legumes, some peas, and both tofu and tahini are arguably some of the unhealthiest things you can consume because they have a very high omega-6 fat content and as we said earlier, omega-6 fats are oxidized, they cause inflammation in the body, you know tahini being ground up sesame seeds, usually accompanied by sugar, so it's blended up, it's oxidized, same with the tofu, all of these plant foods have been exposed to high amounts of heat or oxygen, and I've said it before on healthy crazy cools videos, if you want to get a heart attack or a stroke on a vegan diet, consuming large amounts of plant fats is the best way to do it. All right guys, so apparently, apparently Asda has now come out with their own range of 100% nuts, like 100% almonds and 100% peanuts, you know that recently I've been raving, well to be honest, recently I've been raving about my own nut butters because they were just something else, if you haven't seen that video.  The thing is, high omega-6 intake literally replaces all the fats, all of the lipids in your body, so over time it's the best way to get a heart attack or a stroke. If he doesn't have, you know, severe health consequences several years from now, that is what consuming a diet like this will lead to.  So for dinner we went to chow down and probably my all-time favorite vegan restaurant in London, it's actually in Hackney if anyone wants to go, they always have so many delicious options on the menu, some healthy and some, you know, just good for the soul and stuff. Also, I love that their portions are not stingy like most places these days, so many restaurants I go to and I just come out feeling unsatisfied. Hey would you look at that, it's vegan Evan.  So it's a bit weird that he's making a cameo appearance here, and let's be honest guys, does anything smell worse than a bunch of sweaty vegans that just hit the gym in a vegan restaurant? I cannot imagine the smell in there, it's giving me shivers thinking about it.  We've got a few of their mixed salads to start which were full of colorful veggies, lentils, black rice, yes black rice is the only rice I can deal with, quinoa and a tahini sauce, which to be honest didn't taste anything like tahini but I'll let them off. Then we got some of their meaty style burgers which are actually made from seitan, but they taste like sweet potato burgers, can't really explain it, but it's the best vegan burger I've ever had like of all time, and they also make the best thick crunchy fries and their garlic herbimeo is just something else. Also I don't know why my eyes are so red at this point, honestly I wasn't high, I was just extremely tired.  Anyways guys, I'm sending you all so much love and I'll see you all in the next video, later. Overall very high food volume throughout the day, you know these vegans go to restaurants and the sheer volume of food they are eating can only be paralleled to the lack of micronutrients in their diet, shoveling and shoveling their faces full of these foods that aren't giving them nutrition. The easiest way to understand this is eat a high quality animal food like liver or salmon row, even steak. The volume of steak you can eat from both a size and caloric standpoint is so much lower than vegetables. I would estimate these vegans are consuming between five and six pounds minimum of vegetable plant matter per day, yet we see carnivore dieters consuming an average of one pound to one and a half pounds of food. Really goes to show what humans are meant to consume and not only are vegans consuming a much higher volume of food, they're not even getting the nutrition their body needs. So you're eating three, four, five times as much as other people and you're starving yourself of nutrients that are only obtained from animal foods. Thank you guys for joining me today. If you could please like the video, subscribe, hit that bell icon and share it if you can. If you guys would like to support me further, definitely check out Frankie's Free Range Meat, providing you guys with the highest quality most affordable animal foods online. Go to frankiesfreerangemeat.com. We've recently added Wagyu beef guys, amazing price, 100% grass fed and grass finished Wagyu beef. Thanks again for joining me guys and enjoy the rest of your week.


Sam here with Leighton SportsGardner up in 21-22. Pneumosaic, basketball, fast break, five box break, number 10. Random team style, there's a look again at your random results. As always, you can find those on the website, under the results tab, as well as the link in chat. So this will be split even, I believe, for base. So everything you top load will be Disco, Lukas, their masters, Suggs, feeling green national pride. There's blue, Yacob, Pertle, for the Spurs to 85, 85 of 85. KD, Herbert Jones, James Springer. Disco, Dame, all NBA. Third, moments in time. Mobley national pride, debut, Giddy, finals MVP, Shaq. It's gonna be a purple Tobias Harris to 51 of 50. Sixers, LeBron, MB, Duarte. Wait, is it all regular base, at least, believe me? Since they're all in that base. Regular base will be split to all spots, but it's just all base, all right? Okay, I guess so, yeah. Disco is Caruso, gold, Emmanuel, quickly. Nice one there, two 10, three of 10. Zyre, Moses, Moody. I'm gonna have you split the rookies just in case, and I'll just all make a note on the thing. Duarte, Curry, Jalen, Green, rookie. It goes all into the base. Yeah, I guess, never mind then. Release, Randall, Otto, Malik, Monk, going to the Lakers. Nice one there, Lakers. T-Man, Cade, and base. Disco, Mobley, debut, go there. The brother won the MVP of the summer league, Mobley's brother. Isaiah did, really? Oh, that's pretty cool. D-Book, Disco, Jones, Beale. You're pretty sick to drop it in the same team. That is pretty sweet. Luca, on the Mosaic, Disco, Dinwiddie, Mobley, base, and Desunmu. So I guess with the stuff, here, just hand me your stack of top-loaded stuff after, really quick, too. And I could split them up, like what'll be split even and what'll be shipped. Disco, Jalen Suggs, Disco variation, Alfred Shengun, Keon Johnson, go there, and Greg Brown. One sec, guys. Is this everything from this up? Oh, the Disco will be different. So this'll all be split, and this'll be... So all the Disco stuff will be shipped, basically, and then just like the base rookies that I hand you will be split even. All the Disco will be shipped, all the color, obviously, you ought to use. So that's gonna be split even, yeah.  Yeah, I guess, yeah. Bronze, Wade, and Yanis, special in there. Pink, Zach Levine, to 27 of 20. Lucca, Trey Murphy, Bones Highland. Disco, Book Knight, Suggs Rising Stars, Mowgli, Rookie, Dame, and Jalen Suggs. Started price out there, oh no. Purple, Montrez, Harrell, to 50, 450. Shengun, Kispert, Jalen Green, Rookie. Disco, Harrison Barnes, Otto, Evan Mowgli, Fast Break, Rookie Otto on the Disco, congrats to the Cavaliers. Cleveland is gonna be, what are the Cleveland Cavaliers at? Tomas S, there you go, Tomas. Matt with the Rams, and one Bryce with the Saints and one. Davion, Kade, Rookie. Brandon Boston, Jr., Disco. Jalen Green, introductions. Cam Thomas, Kispert, Garuba. Disco, Steven Adams, Blue is Santiago Dama, to 85, Joshua Parima, Lebron, and Moses Moody. So bonus, Clinton Grimes, Butler, Miles McGrath, Seth Curry, Mosaic, Pat Bev, Disco Tatum, Luca Garza, Shengun Shreyon. Disco, Frank Jackson, Kyrie Bassie, Aaron Wiggins, Giorgermy Robinson-Earl, Zach Levine Disco, Variation Disco, Kaminga, Iowa Sumu, Jalen Johnson, and a National Pride, Kate Cunningham. Jolam with the Chargers in Panini One. We down two on Panini One now. We're down to just the Titans. Just the Titans in both Chronicles five and 10 on Panini One. Five to go and 10 to go. That'd be considered regular, you have it? Yeah, Blue is Chris Paul, to 85. Scotty Barnes, Rookie. Paul, Giddy Rookie. Robert Stairmasters. Jalen Green, Rookie. Evan Mobley, Rookie as well. Even like the base inserts are technically still considered base, because they're not silvers or anything. Blue, Kyrie Irving, all NBA to 85. Donovan, Desun Mookie, Jalen Johnson. Disco, Jermaine Robinson-Earl, Montage, Kaminga, Jermaine Murphy. Disco, Manuel Quickley, the Knicks. Otto, Joe Weisskamp, fast break rookie Otto, going to the Spurs. There you go, Spurs, go Bear, Greg Brown, Isaiah Tzad. Disco is Lonzo. Purple Disco, Jeremy Grant to 50. Christopher, Paul George, JT Thor. Jalen Green, National Pride Disco. Ja, and then Boston, Jr. Disco to Marta Rosen. Scotty Barnes, National Pride. Davion, I'm gonna go through the base one more time when we're done. I always get screwed, I'm sick. Because I might pull the inserts, to be honest. Larry Bird, moments in time. Giannis, Joakic and Wagner, like that one you could probably just put in the, yeah. Sorry about that. I changed my mind halfway through what I think is the other thing to do here. Lebron, Mosaic. Disco, Obi-Toppin, Donald Benton, Aldama, Jalen Suggs as well. Yeah, like not in the non-insert, that's what I was thinking too. Daeron Sharp, those are definitely still considered base though. Franz Wagner, Dorte. I know this one's a little hard to do because it's hard to define exactly what regular base it is, that's the only thing. Rich with the Titans and Chronicles. Jeremy with the Chiefs in one, thank you guys. So we're sold out in one of our Chronicles breaks. Titans still available in the other one. Don't know if it's the first or second one. And the Zero Little, 13 of 20. Cam Thomas, Barnes debut base. Disco, moments in time, is Russ, Luca, Murphy, Highland. Tatre, eight into 50. Mobley debut, Willard and Suggs. I still don't know what I want to do to be honest, Vaughn. Jalen Suggs, Jalen Suggs stars, Josh Giddy rookie, Kaminga and base. Just like that one I would, sold. Disco, Luca. Disco Otto, Marcus Smart. Mack, a smat. Disco, Rashawn Holmes. Blue Disco to 85, Russ for the Lakers. Murphy, Christopher, Paul George. Got picked off at third. That sucks, dude. Montage, Sabonis. Thor, Zyre Williams. Cho'Ellenbead. Stairmaster's Clay. QG McBride. Silver, Montae Morris. Disco, Maxi Kleber. Mello, Banton, Aldama. Disco, Devante Graham. Garza, Shengun, Shrey. Rich, Titans and Bull, thank you Rich. Sold out, both Chronicles breaks, just in any one left, everybody. That is it on the night here. Disco, Lebron. Disco, Davion Mitchell, a variation. Suggs, Kaminga, Kawhi. Introductions, Jalen Green. The Soonmoo, Jalen Johnson, and a Cade at National Pride. Last box, good luck everybody. Mosaic, plus break. Chris Paul moments in time. Cade debut, Barnes Rookie. Purple to 50, RJ Hampton for the magic. What's up, Carl? Carl. Carl. Cade rookie, and Cam Thomas. Dude, that'd be awesome. Chris Paul to 50 for the Suns. Fly Carl down here and give us all tattoos. I'm just gonna have them tattooed. Carl, I'll make it. Davion Mitchell. Stairmaster's Kawhi. I'm gonna have them tattooed, Sean's a bot. So that would just forever be known, I hear a bot. There's Rocco, Trey Murphy. Rookie Otto for the Pelicans, nice one there. What's up, brother? Austin Reeves. Disco campaign. Blue, Chris Boucher to 85. Fassie, Wiggins, Highland. Is there? Absolutely. Disco, Cam Thomas. Montage, Shea. Sondro, Herbert Jones, KD. Oh, they got his famous trash. Sean's a steamer. That's what I'm gonna get. Introduction, Suggs. Ja, J-R-E, and Dayrom Sharp. There's T.J. McConnell. Springer, there's Mowgli. Nice Glenn Davis, big baby Davis tattoo. The one of where he's licking his lips, the classic GIF. Mosaic Clay. Disco, John Wall. Jalen Green, National Pride. Suggs and LeBron. Josh Lowe, Brandon Lowe, Nate Lowe. Josh and Nate are brothers, right? There's rising stars of Ja, Giddy debut. Julius Randall, all NBA, and last back here. Disco, Cade. Disco variation, Davion Mitchell again. And Bede, Duarte, Trayman. Quick recap here, guys. We had a Herbert Jones, Marcus Smart, Joe Weisskamp, Evan Mobley, and Malik Monk. Do it for the break, everyone. Thanks again for the filth. Up next is Select Breeze.


This talk is on Austrian business cycle theory and really one of the first things that I like to point out when I start talking about Austrian business cycle theory is that this is something that is a part of the hampered market economy. It's not a part of the unhampered market economy. Over the past two days, yesterday and today, you've seen a lot of the mechanics of the unhampered market economy. You've seen how we economize the use of our resources that are around us in such a way, well, economizing simply means that we don't waste things, that we achieve our highest valued ends and forego lower ranked ends or less important ends. And I think really the best example to think about how this process works is with the Crusoe economy. So Crusoe, he winds up on his island and he sees that there are a few things he can use to increase his, make him happy. He can eat coconuts. He can eat berries. He's got all of these sorts of things that he can use to sustain his life and his health and all these sorts of things. And so he can, because he is only one will acting in this environment, it's a conceptually easy problem to solve. So he just ranks his end, or he has his rank of ends and he decides I value this many coconuts to this many berries. So he allocates his labor effort in a certain way to achieve his most highly ranked ends and forego the low ranked ends. It's a conceptually easy problem for us to think about. It becomes more difficult when we put Crusoe together with other people or if we combine people in a social environment. And the reason why is because there are multiple wills, multiple sets of ideas, multiple sets of preferences about how to combine resources. What's most important? What do I want? What do you want? And because of the incommensurability of our satisfactions, it's a difficult problem to solve or more difficult problem to solve because we can't do that interpersonal utility comparison. And so what we've seen over the past two days is what's sort of arrangement has arisen to solve that sort of problem? And the answer is market prices, profit and loss, economic calculation. We can use those things as a part of a division of labor where people are doing different things and have different values such that we economize the use of our resources. We satisfy the more highly ranked ends and forego the low ranked ends. So we economize resources that way. So that's the unhampered market economy. Lots and lots of good things that you can say about that. We've actually already been introduced to one infringement or one violation of the market economy with Professor Salerno's lecture on socialism. So we've seen how it's impossible for us to organize production rationally under socialism without ownership of the means of production. So if we don't have ownership in exchange and prices of the factors of production, it's impossible for us to do that allocation, to make those decisions in a way that would satisfy people's ends. So that's at least one violation. The next one that we'll talk about is Austrian business cycle theory. It's another one of Mises' crucial insights or conclusions I should say. I consider it one of the crown jewels of Austrian economics just because of how nice it is to have to explain what has happened in the 20th century. So Austrian business cycle theory, if I can go back to Kruse, I came up with this example last year. A good analogy is Kruse wakes up one morning, he walks out of his cave and he sees that there's some colorful mushrooms. He had a certain plan for the day that he was going to continue working on the shed and collect a few more coconuts and berries. But instead of going through with the plan that way, he sees these colorful mushrooms that grew in the middle of the night outside of his cave and he consumes them and he starts hallucinating. He totally changes the way he perceives the world around him and the hallucinations are such that it looks like his stockpile of saved resources is a lot larger than what he thought. It looks like he has way more coconuts, way more berries, way more tools, capital goods, maybe even the island itself is larger. So he just hallucinates and it just looks like, oh man, I'm in some sort of utopia now. This is great. My stockpile of resources is much, much larger than I had expected. Okay, so the way the thought process would go here is that he would change his plans. He would change the sorts of production projects that he would pursue that day under the impression that he had a much larger set of saved resources. So he sees that there's this much larger stock of saved resources. And so he decides to build different things or maybe build things bigger. He decides to instead of fixing the hole in the roof of his small little structure, he decides to start building a mansion instead because it looks like he has the capability to do that quickly and easily. And instead of putting together a small raft to try to get off the island and rejoin the division of labor, he might build, it could be a terrible hallucinations. He might try to build a cruise ship with robots that would deliver food to him or something like that. Who knows? So he would change the sorts of, he would change his plans. He would change the production projects that he would pursue in that case. So I think that this is a good analogy for what the business cycle is for a market economy. And as you can see, this is not something that would happen in an unhampered market. There's nothing that would trick all entrepreneurs into pursuing these different lines of production in the same sort of way. But we will see that it takes some sort of, some sort of incursion into the market economy for that whole process to get started. Mises has an analogy that is very useful as well with the master builder. So he says, the whole entrepreneurial class is, as it were, in the position of a master builder whose task it is to erect a building out of a limited supply of building materials. If this man overestimates the quantity of the available supply, he drafts a plan for the execution of which the means at his disposal are not sufficient. He oversizes the groundwork and the foundations and only discovers later in the progress of the construction that he lacks the material needed for the completion of the structure. It is obvious that our master builder's fault was not an overinvestment, but an inappropriate employment of the means at his disposal. So here Mises was dealing with one particular misconception of the business cycle theory that it was based on some sort of overinvestment. Mises was saying, no, it's based on malinvestment. That's the crucial error that happens during the boom of the business cycle. But the reason this is such a helpful and good analogy is because it works in both a literal sense and in a metaphorical sense. It works in a metaphorical sense because you see that the error that the master builder makes is similar to the one that Crusoe makes and the types of errors that entrepreneurs make in business cycles in general. But it also works in a literal sense because as we saw in the most recent complete boom bust cycle, there was a housing boom and a bust that followed. So we actually had cases where whole neighborhoods and houses were started but never finished or it took a long time for the builders to come back or different builders to come back and finish the development of the neighborhood or the house. So they had this idea that they had enough resources available to them to finish the house or finish the neighborhood. It turns out that they didn't and that's so they had to abandon the projects. And if you take that small little case and multiply it and see how that same category of mistake or that same category of phenomenon pervades the whole market economy during the bust, you see that this is a great analogy of what happens in a business cycle. So let's first clarify what business cycles are not. Business cycles are not typical run-of-the-mill business fluctuations. This is the sort of thing that happens all the time. So there are constantly changes in the market economy. People are changing their preferences, their ideas about how to complete projects. The availability of natural resources is changing. All of these things are changing all the time and it's up to entrepreneurs to anticipate these changes and align their lines of production in such a way to adapt to those changes or meet consumers' desires in such a way that takes those changes into account. So this and this is just the proper functioning of a market economy. This is not what we mean by a business cycle. This is just this is what you've seen in Professor Bailens and Professor Klein's lectures about entrepreneurship. Entrepreneurs anticipate these sorts of changes. And what that means is you're going to see some changes in the data. It means that if you just look at a market economy, you're going to see ups and downs within industries. You're going to see ups and downs within certain types of labor, like their wages might increase or decrease. And that's simply because of the mundane changes that we experience all the time. That's not what we mean by a business cycle. A business cycle, what we see are the general booms and general busts. An economy-wide increase in wages, increase in employment, increase in the prices of capital goods, and then an economy-wide decrease in the same sorts of things. So it is something that is happening on a broad scale. So here, here what's important for you to see is the shape of the line. It's not necessarily what the lines represent. We've got some stock price indices up here. The unemployment rate is on the top right. I think that's the home price index, the K. Schiller home price index on the bottom right. So you see that there's this up and down. And these are things that apply to the economy in general, economy-wide. It's not particular. Another thing that we notice in business cycles is that there's more fluctuation in the prices of capital goods. There's more dramatic changes in capital goods industries compared to consumer goods industries. And this is something that Rothbard points out. I highly recommend reading the first few chapters of, I'll read the whole book, actually. America's Great Depression by Rothbard. I still think that this is the best exposition of Austrian business cycle theory to date. So he points out that in business cycles we see, and if you look at this data, there's a consumer price index and a producer price index. You see that the producer prices, the capital goods industries, there's more fluctuation there. So whenever we come up with our theory, whenever we go through the theory, this is one of the things that we need to explain. First, it needs to be general. Second, it needs to explain this. And we also need to take into account the cluster of entrepreneurial errors, as Rothbard calls it. So there's all of the entrepreneurs, it seems like, make the same sorts of errors at the same time. And so that's something that we need to explain. If we start looking for suspect areas, we might look at money. And one reason we would look at money is because it pervades the economy. It's everywhere. So money is the widely accepted medium of exchange. If this is a general boom followed by a general bust, it seems that we would look at something that is general to the economy. So money is a suspect area. We might also look at credit, not only because it's because it's general. So credit pervades the entire economy as well. But also because we know that entrepreneurs change their production decisions based on the availability of credit. So we've seen that producers can take loans and they can decide to pursue different projects. And if credit is doing one thing, we know that the two are related. We know that the choice in production projects that entrepreneurs make is sensitive to what's going on in credit markets. Okay, so that's sort of the problem that we have to solve. And we've got some suspect areas that we can look at. So on our way to get there, we need to step on a few bases. So we need to do an overview of the structure of production. We had an excellent lecture by Dr. Patrick Newman on that, but we'll recap that. We'll cover time preference and interest. We had an excellent lecture by Professor Herbner on that. We'll look at sustainable growth so we can contrast it to unsustainable growth. So there's a great quote by Hayek that goes something like this. I've got it at the end of the lecture. We first must understand how things could go right before we can understand how things could go wrong. So first let's get, let's analyze what it takes for an economy to grow sustainably before we can answer the question of why does, why does a seemingly healthy economies, why does the bottom drop out of it every now and then? So that's what we'll do in step four there. We'll look at unsustainable growth. And what we'll see is we'll see that the really the culprits, the main features of, of the boom are malinvestment and overconsumption. And so we'll spend just a little bit of time talking in particular about what those are since their central features of the of unsustainable growth as opposed to sustainable growth. But first structure of production, I like to use a ham sandwich. I go through this example in my, in my classes at Bryan College. Usually there's some back and forth here, but in the interest of time, I'm going to do, I'm going to do all the work for you. So what I'd like for us to do is, is figure out what does it take to make a ham sandwich? What does it take to, to produce a consumer good like a ham sandwich? And we'll do it this way. We'll start with a ham sandwich in the middle of the screen here. And we'll start to network out, we'll start to branch out the first ring around ham sandwich will be the, will be the things that we need immediately say at the deli to, to provide a ham sandwich to a consumer. So definitely need ham, wouldn't be a ham sandwich without ham bread, wouldn't be a sandwich without bread, lettuce, tomato, some condiments like mayonnaise, like to put my ham sandwich on a plate. So we had that there, some tables and chairs. We need the deli and also the person who's putting the just behind the counter putting the elements of the ham sandwich together, they occupy some space. So one element of land is the space that we occupy. It's also natural resources, which we'll get to in just a little bit. So we've got land as another essential factor of production here to make the ham sandwich. And we also, as I've already referred to, we need the laborer, we need somebody there to put these things together. And that's it. Right? That's that's all you need to make a ham sandwich. Right? No. Okay, good. Finally, I was making sure somebody would take their head. No, no, we have to explain where these things come from as well. So we, we know that the ham comes from the butcher bread comes from the bakery lettuce and the tomato might come from farming mayonnaise who knows what's inside mayonnaise, I think there's some like some eggs in there. So maybe like a chicken farm and other things from farming that goes into mayonnaise that if it's a paper plate that the deli uses, then those inputs came from a paper mill, the table and chairs came from a furniture manufacturer. And you'll notice that there's no other extensions beyond land and labor and that's because as we know, those are originally factors of production. So the capital goods we can keep going further back until we get to land and labor, the originary factors of production. At the butcher, there's a butcher, there's the laborer, but they also occupy some space.  Same at the bakery, land, labor and oven, some flour as well. And as we go, I'm going to speed up here because I think you get the idea. You'll notice that the structure of production just for a ham sandwich is incredibly complex. We had this chicken and the egg problem, metaphorical chicken and the egg problem with the with the metal manufacturing because you need big metal machines to make the big metal machines. So who knows how that happened? But we've got plastics, play a role, oil drilling. And of course there's transportation. All of these things have to go from one spot to another. And it gets extremely complex. So so this this setup is actually really good for just showing how complex production is. But we can't really go much further. By the way, if I look at my students papers on the first day, sometimes it just looks like this.  At some point, they've given up like, okay, I get it. He's he's making the complexity point. So so this but this arrangement here is useful for seeing how complex production is, but it's not really useful for other things. And so what Austrian economists have done is they've taken this very complex structure of production, and they've organized it in at least or yeah, two dimensions. So there's a time dimension. Some things happen before other things, right? The egg comes before the chicken, right? So and also you have to you know, plant the farm, you have to put the fence around the farm before you can get the lettuce out of the farm to put it into the ham sandwich, you've got to you know, make the big metal machine metal machines to make the little components of the oven and so on and so forth. So something's happened before other things. So time is one dimension. But there's also spending by entrepreneurs at all of these different points in time. So we have two dimensions, we've got time, we have spending in the different stages. So and if we arrange all of these things by time, which might look like something like this. So so all of the early things go to the left and all of the later things go to the right. At the very end, we had the consumption good, we had the ham sandwich. By the way, this should look familiar to you. If you've read man economy in state, this is figure 32. In man economy in state, just the arrangement of factors of production that that yield a consumer good at the end. But if we if we take these things in their individual stages and tally up the spending, we would look, we would get something that looks like this. So this is typically called the Hayekian Triangle. Although recently I've been looking at the history of the structure of production. And it turns out that William Stanley Jevins actually drew the first one. And Hayek realized this. And so in a footnote in one of Hayek's works, he said, we should be calling these Javonian investment figures and not Hayekian Triangles. But but either way, here's our structure of production. This is the left to right we have time. So we have the earliest stage of production over here, and then the latest stage of production over here, or the spending on the consumer goods, spending on the ham sandwiches. This doesn't have to be just for one particular line of production like ham sandwiches, because we can generalize this to all goods in the economy. So this is a macroeconomic graph diagram. This is the entire economy, all spending on capital goods, land and labor, but also all spending on consumption goods. Not only does it show us all of the spending in the economy, but if we look at the price spread between stages, we see the rate of interest. And the reason why is we learn from Professor Herbender's lecture, entrepreneurs who are engaged in production are also engaged in inter temporal exchange. They're parting with present consumption so that they can have consumption in the future. They're parting with present money so that they can have future money. They're paying for factors of production today so that they can have revenues from the sale of their output in the future. And so because of that, what that means is they're going to apply a discount to the payments for the factors of production today so that they can get that uncertain revenue in the future. However, if we take out the uncertainty, which means we're in the evenly rotating economy, ERE, then the only remaining spread, the only remaining return here is the interest rate, the social rate of time preferences, what is what we see in production. So it's not just interest that determines the level of spending here. We could also say that there's the anticipated revenue from the sale of output, as I've already mentioned, it's discounted. But I just want to point out since we're summarizing the structure of production that value is imputed backwards in time here. So at the end here, we've got consumption spending. If we if we go back to maybe an industry specific example like like cotton t-shirts, what if there was like this big dramatic decrease in demand for cotton t-shirts? Like everybody hates cotton now. And so then what we would see is there would be a decrease in how much entrepreneurs would be willing to spend on the specific factors of production that go into making cotton t-shirts in the in the previous stages. So there there would be a response that that that logically goes backwards in time. So even though production goes forwards in time, value is imputed is imputed backwards in time. And the way that happens is through entrepreneurial anticipations of the future. So right now, entrepreneurs are trying to think about the future. How much do consumers in the future like cotton t-shirts? How much are they willing to spend? Not only do they have to think about how much consumers will value that stuff in the future, but they also have to think about the interest rate. They have to think about their own rates of time preference and discount what they're willing to spend on those factors of production today. So lots of things are going on here, but we've got production existing in time. The reason I'm dueling on this is because this is a uniquely Austrian thing. You don't see this sort of thing in other schools of thought, and we'll see the implications for that when we look at the business cycle theory. OK, so next up, we have time preference. Time preference is how much we prefer a given satisfaction now or sooner as opposed to later. And because there is a variety of rates of time preference, it means that we can trade. It means that the people who have high time preference can borrow from the people who have low time preference. Please don't cancel me either for saying that there are different groups of people. So all we're saying is that we can have a demand curve and we can have a supply curve. There are some people who want the money now, perhaps a producer who has this grand idea for a business, grand idea for a line of production that will be profitable.  And so they see this other person come up to them and say, hey, I'd like to borrow this amount of money I'll pay you this amount in the future and so they can trade. And here I've got another example like we've seen earlier today of two people who have the different preferences. They have the double coincidence of wants. It's not apples and oranges and coconuts and berries. It's present in future amounts of money. But fundamentally, it's the same idea. They can have a mutually advantageous trade. So this is a loan market. Borrowers and savers are interacting here. But I want to mention that what fundamentally what's happening here is the same as what's happening with with producers who are engaging in production. So they're foregoing present satisfaction so that they can have future satisfaction. They're foregoing present money so that they can have future money. This is just a different kind of time market instead of production. It's it's lending. The reason I show this is because we're going to line it up with the trade off between consumption and investment that the macro economy faces. So in the bottom here, we've got the same loanable funds market. We've got a supply curve upward sloping and downward sloping demand curve interest rate that emerges on that market. But up above we have we have the trade off between consumption and investment. So we can either consume resources today.  Have have a nice reception and we can consume or we can invest. We can set aside resources today so that we can produce and have things tomorrow or at a future date. So that's what's if you've seen a production possibilities frontier in one of your classes, you'll notice that it looks the same. This is technically not a production possibilities frontier because we're not producing consumption or producing investment. But it is a trade off just like a PPF shows. It's a trade off between how much we can consume and how much we can invest. By the way, the these four graphs that I'm putting together originate from Roger Garrison's time and money text in his lectures. So if you want to look more into what's going on with these graphs, you can check out that text. I've got I've got the reference at the end of the of the presentation. So we've got this real resource constraint. There we only have a certain amount of consumption goods. We only have a certain set of producer goods that we can use in production, which means that there's a trade off. The more we consume, the less we can invest. The more we invest, the less we can consume. And that's why it's downward sloping. But there's going to be some heterogeneity there, which is why we have a boat outward. OK, so why did we line it up like this? Well, if we if we assume or say that on the demand curve of this loanable funds market, we have businesses who are demanding funds so that they can buy factors of production, buy investment goods. It means that the two graphs will correspond with each other. And that's why the dotted line extends from one and goes to the other. So what what that means is the total amount of of lending that happens. If we make that that small caveat is the same thing as the total amount of investment spending in the top. And so here I just showed an increase in saving and increase in the supply of loanable funds that corresponds with a decrease in consumption. I'll do it again. A decrease in consumption and increase in an investment. So that should be very intuitive. If we haven't if we decrease our rate of time preference and decide to consume more, excuse me, consume less and save more, we see that happening in the top right as well. We we consume less. We're not consuming as much stuff and we're saving more. We're investing for the for the future as well. So we just move down or across that that tradeoff. And the result of that is economic growth. So if we set aside resources for production today, it means that we have tomorrow more. It means that we've produced more goods and services for tomorrow or for the for the for the next period for the future. So if we save, then we can have more stuff. That's how we generate sustainable economic growth. And really the only assumption that we have to make here is that this increase in investment is net investment. We're adding to our capital stock. So it's it's an it's a decrease in consumption and increase in investment that adds to our ability to produce, which means that in the next period we have we have a nicer tradeoff. So it's still a tradeoff, right? It's still downward sloping, but we can we can do more of both if we wanted to after we have saved and produced more first. That's what's going on in this graph. Next up, we have our Hayekian triangle instead of the dollar sign stacked up on top of each other. I have smoothed it out some just to make it easier to work with in PowerPoint. So we've got we've got the Hayekian triangle from left to right. We've got production time. From top to bottom, we have spending in the various stages. We can single out some stage specific labor markets. So here we have at the retail end closer to the consumer. We have labor markets and over here at the early end we have a labor market perhaps for like lumberjacks or miners or people who are in research and development at the beginning of a production process. And we might want to look at these labor markets because we're going to or we could compare this theory of the business cycle to the Keynesian theory of the business cycle and then make lots of claims about what's happening to employment. So we can do the same thing here. We can say that there's there are labor markets and factor markets in general in all of these different stages. So this is our this is our starting point here. We've got the four different components. So let's summarize. We've got the Hayekian triangle. We had a trade off between consumption and investment. And we have a loanable funds market in the bottom right and in the bottom left we have a stage specific labor markets. Let's do that example that I showed you before. But for all four graphs now where we have an increase in savings people voluntarily decide to part with present consumption. They decide to consume less save more. They offer they offer more money to to people who would like to borrow it. So there's an increase in the supply of loanable funds down here. You'll notice that there's a lower interest rate. By the way that gives us a clue as to what's going to happen to the Hayekian triangle in the top left. But for now we'll see that there's a lower interest rate and an increased amount of loans. There's more lending that happens. And since we said that this demand curve is businesses who are borrowing to purchase factors of production. Then we can say that there's an increase in investment as well decrease in consumption. So far this is just review. We've done this already. What is the Hayekian triangle do. However so it gets shorter. So there's less consumption spending because people are deciding to save. So at the very right hand side it's it's shorter. But it gets longer and there's additional spending in the earlier stages of production. So at this at this lower interest rate now new longer lines of production appear profitable. So at the lower interest rate now this this extra idea that the that some businessman had potential businessman had now is now profitable for them to pursue that. So they see that social rates of time preference have fallen. It's now profitable for me to pursue this line of production. In effect what what entrepreneurs are saying is OK consumers I see that you're not consuming as much. You're you're freeing up resources for us to use in production. So they take they say OK fine we'll take those resources and we'll expand production. We'll make new longer lines of production. More technically what's happening is that the dist so since the interest rate has decreased the discount that's applied to the to the factors of production in these different stages of production has gotten smaller. There's a smaller discount that's applied to the earliest stages of production such that now it's now it's OK. Now the it's economizing for us to to produce new capital goods where as it wasn't before at the existing interest rate with the with the higher discount that we would apply to those capital goods. OK what happens in these stage specific labor markets we've got a decrease in demand for the late stage labor and an increase in demand for the early stage labor also brand new markets emerging because we're making new capital goods where we're expanding production new stages. And the result is economic growth. We've got an expanded set of options for consumption and investment. We don't have to keep the same proportions. We could we could say oh great we expanded production we've got more stuff. Let's just have a party now let's celebrate the fact that we lowered our time preferences time preferences before or what they could do is they can maintain the same proportions of consumption and investment or they can say wow that worked great let's do it again let's lower our time preferences even more. Whatever they choose we know that they have they have expanded possibilities now. In fact what we see just throughout history is we see that that lowering time preferences and having economic growth just makes it easier for us to have even more economic growth. So making more capital goods expands our ability to produce which which makes it easier for us to expand into producing new and different things. So economic growth sort of begets economic growth not in an automatic sort of way but in a way that that it's almost like if you think about Crusoe alone on the island he's got to he's got to settle his his food problem first before you can build a some shelter perhaps or find some fresh water before you can do other things so we get the basic things out of the way then we can pursue the new longer lines of production that would increase our standard of living even more. We can we can think about that happening on a macro or international level as well. OK so the structure of production also can can increase in size as well as we increase investment pursue new even different lines of production after that. So here's our summer qualitative as opposed to graphical summary of what's going on saving involves freeing up resources for production. In credit markets saved funds are made available to entrepreneurs to purchase factors of production. New longer lines of production are started which is in line with consumers time preferences and the additional investment represents an increase in that in in our capital stock increase in our productivity and that pays off with an expanded set of resources in the future which we call economic growth. OK so that's that's sustainable economic growth. That's how our economy can function in a healthy sort of way. Let's see what happens when the Fed decides to to increase credit. So what if instead of starting with an increase in savings what if we just insert new money into this credit market that does not correspond with an increase in people's desire to save. What if we increase make available more loans without saying that people have lower their time preference and they're going to forego present consumption. It would look something like this. So we have this increase in the money supply. There's the delta M there that increases the supply of loans in the little fund market. Notice that that dotted line supply curve is still the same. And that's because we haven't started off this thought experiment by saying that there's a change in time preference. There's not a change in people's willingness to save. So that supply curve stays the same. But we just have this extra supply provided by a central bank or a fractional reserve banking system that's extending loans beyond what people have deposited. So we have this increased supply of money here. But people's time preferences are the same. What that means is that people are actually going to decrease their savings. Their real savings. So we have we have two things going on. We've got savers doing this sort of thing. They're decreasing how much they save at the lower interest rate. But we have borrowers businesses in this case because we've restricted this demand curve. They're increasing the amount that they borrow. So like what explains that. How could there be a decrease in lending by savers and increase in borrowing by businesses. How is that even possible? And the answer is because of the new the brand new money. So what makes up the difference between those two is the new money that didn't exist before. Delta M. OK. So something interesting happens with our. Oh for God. So we have some behind the scenes footage of what's going on. How that how that happens. Can't believe I forgot about that part up in the top right corner. We've got the consumption versus investment trade off. So I said that this is a real resource constraint. So we only have a certain amount of consumption goods and investment goods in this economy. So we can only do a certain amount. So how do we how do we show that separation that's happening in the loanable funds market up in the consumption versus investment trade off. And the answer is we we what we say is that there is increased spending on consumption goods. There is also an increase in real consumption by the way but also an increased spending on investment goods in the form of malinvestment so they're purchasing new capital goods and creating new capital goods for lines of production that won't be profitable. But it's what explains the difference is that there's a breakdown between real and nominal variables here. So the real resource constraint but our nominal variables look like we're out beyond the beyond what's what's really possible in terms of our real resource constraint. The analogy I like here is the hungry hungry hippos game. We haven't increased the set of marbles. We haven't increased the set of resources here. All we've done is we've made a way for consumers and for producers to slap their lever even faster. So I think they're they're just all competing over the existing set of resources more vigorously. But we haven't actually increased the supply of resources for consumption or investment. We get a similar breakdown in the high key in trying on the structure of production. So entrepreneurs on the there's an extension over here to the left entrepreneurs pursue the new longer lines of production. Consumers increase their consumption spending and what suffers is the middle stages in the middle stages. There's not we don't maintain the capital stock there or we don't we don't entrepreneurs start the new lines of production that appear profitable because of the new lower interest rate and increased availability of funds and the loanable funds market. Consumers also increase their consumption spending because of the availability of funds through loanable funds markets. But but there's not what suffers is the middle stages there. So in the stage specific labor markets. Oh I always forget about these. So we've got the consumers saying shut up and take my money and we've got producers who are starting all of these brand new lines of production that didn't exist before. And actually it's important to say are not in line with consumers time preferences. In the stage specific labor markets it's a it's a party everything is everybody is happy. We've got an increase in demand for late stage and for early stage labor. So wages are up. Notice employment is up as well. Capital goods prices are up firm valuations are up. Everybody's happy. This this looks like a nice boom but it can't last. So we have that help on its signs everywhere for the for employment. It can't last. And the reason why it can't last is because that we didn't actually provide the real resources necessary to complete those new projects that were started by those producers. So they go they they have this plan they eat the mushrooms and they decide they're going to start building the mansion and the cruise ship. But they they can't actually complete the real resources aren't there for them to complete it. And what that looks like as they as they get into them the the middle of their projects they'll start to see the effects of an increasing scarcity of factors of production. They'll see an increase in prices. Maybe the Fed will will back up. Maybe interest rates will start to rise which which causes everybody to sort of re examine how they've allocated their money how they've invested their money. And they'll see that hey this I thought I would be able to complete this project profitably but it turns out I can't. So so they just they abandon the project.  We have a bus and we instead of adding to our capital stock or adding to our profitability what we ate into our capital stock there was an overconsumption that happened. And the the structure of production also gets smaller. So let's summarize this qualitatively like we did before. So newly created money enters the economy through credit markets and represents an increased supply of vulnerable funds. The interest rate falls but that's not because of a decrease in time preference. It's just because of of the central bank or the fractional reserve banking system. We're both. So there was an increase in the supply of loans that was not backed up by by people's real saving preferences. Consumption and borrowing increase firms take the new funds and invest in the new longer lines of production. Factory prices are bid up. Everybody's happy. We have a boom. Wages are up. Employment is up. But it can't last and the reason it can't last is because of the overconsumption that happens and the malinvestment that happened as well. So overconsumption is based on the fact that consumers did not show that they preferred future output to present output. In fact they decreased saving at the lower interest rate. So they they increase the amount that they were consuming. So there's there's a little bit of debate either because of the lower interest rate they decide that they can you know get the new credit card. It's it's more attractive for them to go out and spend because of the lower interest rate. But in fact we don't need to rely on that. We can just say because of the increase because the money has to go somewhere through the canceon effects through the the fact that the money enters the economy through the credit markets. People spend it on things and there's this increased money that people can use for spending. There's the overconsumption. The point is that it's different than what they would have done absent the intervention in credit markets. And we see that the credit expansion does not represent an increase in real resources available for consumption or investment. Factors of production become increasingly scarce. We're just describing why this has to lead to a bust. Prices are a bit up higher than entrepreneurs expected cost increase profits turn into what were expected profits turn into losses and projects are abandoned. And the malinvestment in particular is that comes from the fact that entrepreneurs were led to believe consumers had saved real real resources were available for production and the longer more capital intensive production would be profitable. But because it was based on a mirage it was based on a far so there those resources weren't actually there for them to complete those projects they started. We call it a malinvestment. It's investment in lines of production that were unprofitable. They wouldn't have done it without the intervention in credit markets. The bust is a complicated matter. If you look in just in the broader economics literature a lot of people a lot of economists say that we need to fix the bust need to fix the problems of the of the recession. But if you ask Austrian economists they'll say you need to fix the boom the boom is where the errors are the boom is where we had the overconsumption and the malinvestment. The the the bust is where we fix all the problems. So if I can go back to my Crusoe with the with the mushrooms example one option Crusoe has is to just eat the mushrooms again. So I suppose the hallucinations wear off. He realizes that he doesn't have all of these resources available to him. One option that he has is he can just you know ignorance is bliss. I'm just going to eat the mushrooms again and pretend like I have all this stuff that was nice while it lasted. So that's one option that an analogy that's an analogy for what Keynesians might prescribe during the bus. So well there's this decrease in spending that happens during the bus. Let's just increase spending. Let's just pretend like there's nothing wrong. Let's just boost all of the numbers back up to where they were before as if there weren't errors made in the past. So what Austrians realizes that the bus is where we fix the mistakes. The bus is Crusoe makes do with what he has. Crusoe realizes oh I made these mistakes and started making this capital good. I really shouldn't have. I pursued this longer line of production. I really shouldn't have. And so he just said well I can sort of salvage this project. I'm going to have to totally abandon this project. That's the bust for Crusoe's example. And a healthy recovery for a industrial market economy. It's the same sort of thing. We've just got to do the best we can with what we have given the mistakes that we made in the past. Don't try to don't try to you know keep doing the same mistakes over and over again but actually try to fix the problem. Fix the malinvestments liquidate the malinvestments. But in the bus wages decrease and workers are laid off so it is painful credit markets dry up prices readjust to reflect consumer demands specifically consumer time preferences and the bust as a recovery phase as people try to find profitable uses for for land labor and capital. Very quickly we can we can do some stock taking of the lessons that we've learned. One lesson that was sort of implicit here is that if we looked at aggregated data we wouldn't see all of the problems. And the reason why is because you had to look at the different stages of production you had to look at the the malinvestment in the structure of production to be able to see the errors you had to you had to disaggregate investment spending had to disaggregate spending in the economy to to be able to see that. But if you're just looking at increases in total spending and decreases in total spending then you're going to misdiagnose the problem and offer bad solutions like what I said what while spending is decreasing let's you know use the government to increase spending now. And that's I've also mentioned the this nice quote from Hayek about we had to figure out how the economy works before we can figure out how it can go wrong. And also we've learned that sustainable production is based on a real reallocation of resources away from consumption and it's voluntary. We have to save first we have to have real savings we have to dedicate real resources to production for our economy to grow and unsustainable booms are caused by artificial increases in credit recessions are at the time when we fix the mistakes of the past so that those are the lessons that we've learned by going through this so I've run out of time I've got some recommended reading here on the slides that you can take your picture of if you'd like and I'd be more than willing to answer questions. Thanks.