Hello everybody, so let me know how the music is and everything because it's been a while since I streamed, so let me know if it's too loud or whatever, but yeah nice to see you guys, I just wanted to draw a comic page today because I couldn't be bothered to film a YouTube video and upload it and all that stuff, so it's been a while since we've had a little live stream action, so I'm gonna work on a comic page today and please let me know if the sound and everything is cool and yeah, let me know if it's all good because I don't know, it's been a little while so the light is a little bit dark but it's just because it's raining here, so it's decided today is gonna be a rainy day, but yeah how's everyone doing? Welcome to the stream, just gonna have a stream, a stream, we're just gonna have a chill stream and yeah let's see if anyone shows up, it's been a while since I've streamed, okay so this is the comic so far, I am using a lot as you can see and also excuse the train, I don't know if you can hear the train, excuse the mess, I'm gonna see if I can figure out the light situation but it's fine, I'm just gonna have to deal with it guys because yeah I finished the first page yesterday, well I've done a few pages not just the first page, maybe we can zoom in a little bit, yeah is that better? Yeah I think so, hey can I, can I, is that how you say your name? Okay yeah I've zoomed in slightly because I think that's like a better shot of everything and I also hit my light, very profesh and yeah here's the first page of the comic doing this kind of street scene and then I did this like interior shot and I was hoping to look out on the street then I've got my main character kind of like peeking in there so that's how we first introduced her and then this will be the next page so these two pages will be side by side in the comic book and I'm hoping to do it the same size as Emily's burning which is this one let me just grab it so it will be the size and yeah this is the first comic I made um you might know about it you might not also sorry about the train please let me know if it's really annoying because then I'll shut the window but it's kind of hot even though it's raining but yeah let's just get to drawing some comic pages because I've only got a few left I say a few but not really this is kind of how it's looking at the moment um all the pages are out of order so you know it doesn't matter if you see it because it might be a spoiler but it might not be also I've got these pages that are like really covered with graphite pencil um so I'm covering that up with other bits of paper so they don't smudge onto the other papers and stuff so yeah um but that's how it's going creepy face I thought we'd just do some coloring today so I've got this page ready to color and I don't think because this is kind of late on in the comic I don't think I'll give you guys any context on the story because if I do it might spoil it um but these are old pages from um the other two comics I did so I just I keep everything in this folder I should probably upgrade to like a better folder or something but yeah how's it going everyone here are the pages I have left to do some are done actually these are the pages I have left to do these ones are done and I keep my thumbnail a copy of my thumbnails here I cover this up you might have seen something there that's the end so I only have um one two three four and then I added a few a couple pages so I think I only have like six pages of actual like comic stuff and then the rest is sort of um story where it's going to be kind of more I don't know what to say uh full color rather than like drawn figures and stuff it's hard to explain it if you don't want to spoil I'm like I don't want to spoil the end so it's kind of difficult to explain it though but yeah here we go let's draw kind of an awkward angle because I'm like this sideways from this but yeah let me know if the sound and everything is good can you hear the music by the way because I don't know I'm gonna check my stream I'm sorry if you can hear me again I don't know if you can hear the music um someone let me know because I did it with um stream labs and I'm not sure if it worked this is my skin color yes so how is everybody it's been such a long time since a live stream I just looked at um my youtube live stream uh section and it says it's been two years which is pretty crazy I used to really enjoy live streaming I think it's just very chill especially if you're gonna have like nice people in your chat and stuff it's like a good way to talk to your community and stuff because yeah otherwise it's just like comments and things and sometimes I can be really bad with comments because I think I'm ADHD and I just kind of put off replying which is not good because I do want to reply but yeah so this is how it turns out on the other side and so I color in on this side and then I yeah draw on this side sorry I just noticed the law saying that you can't hear any music so I'm like maybe I'll change it to my desktop let me know if that can you hear that if it's too loud let me know I don't know if that's louder than me now probably is sorry I haven't streamed in a long time so it's like what is is it too loud also it might cut out when I speak I don't know so let me know and yeah anyway back to the drawing the song is a bit the song is a bit uh crazy for my way I want cheerful peaceful music I don't want like a rave you know I think that's fair thanks Laura super helpful so yeah how is everyone doing let me know let me know what you want to this weekend thanks for sharing a little bit of your weekend with me it's been a long time since I dreamed I feel like her face her eyes a little bit too wide apart here that let's see hello Arabella how you doing please um Laura already kindly mentioned it but let me know if the music's too loud too quiet if I'm too quiet because it's an easy fix and I'd rather you let me know what is everyone keep seeing that if you just want to chill and watch the stream that's fine as well you don't have to chat I used to stream more on twitch before but now kind of going off it a little bit where's my music stopped come on my guy let's see I just want I used to have like a saved playlist for my live stream so let's see if you can play that one taking it up oh same weekends is flapping sometimes what I like to do is if the eyes are looking a bit odd I just color them in and then I'll use like a white pen to go around them again because I feel like those eyes were way too far apart yeah this is kind of how it's looking I feel like we can zoom in a bit more as well yeah so this page is kind of like a little bit of a climax of the story um but I hope as well that it's not spoiling anything I think it won't be because without context it doesn't really make sense story wise that is if you care about spoilers you might not care which would be totally fair I was going to clean but maybe later yeah same leave that for later that's that's later bees problem what color hair does she have uh she looks like this this is like one of the first pages that I've done and she looks like this basically so she has brown hair and this is the what I'm doing now the coloring so this is what it looks like on the colored side and then I turn it over where it's like smoother I guess I don't know I I just like the way it looks yeah that's how she looks at the moment her hair is actually not this color I need to find it now this one but E 1110 is the skin color but the hair is E 120 so I need to find that I don't know where it's gone now typical just when you need oh it's right here if that's literally two seconds thank you Laura yeah that's how the comics coming along it's coming along nicely nearly nearly done I say nearly done is probably going to take me another few weeks couple weeks I mean maybe if I speed up a little bit it might not but yeah I do want to do a Kickstarter for it as well but I'm quite anxious about because even though I've done the Kickstarter before for ebbly is burning I was I don't know I think I had more time to kind of advertise it if that makes sense back then so I don't know if that many people really know that I'm doing a comic or I don't know if they care I'm hoping I um on Kickstarter they seem to have like a natural audience that kind of like comics as well so I'm kind of hoping that those people on who generally go on Kickstarter a lot like it and also some people here who liked my other comics maybe they'll like it as well so we'll see I think I'm not sure how much to ask for yet I haven't figured out all the amounts and stuff but I think I'll just do a small print run so it won't be like that much so it probably will be all right but you know people get nervous about these things and I am one of them because you always think like what if just no one buys it and it's just it's super frustrating and but I think that's just me being insecure oh my gosh my camera like not liking this it's kind of gone a bit blurry hasn't it focus please hello I love how it changes color depending on what's on the screen just love that um I don't know why it's not focusing one second hello hello autofocus well let's see if I put more dark color on you it kind of like start colors this camera so if I put more darkness my hand is like not blurry but the paper is that doesn't make sense how do you side the layout of your panels that's what I always struggle with um I read a book by Scott McLeod creating comics and it's really helpful to like think about where your eye will go and stuff I'm not saying I'm really good at that but I just think it really helped me um figure it out so it could be an idea for you to just read up on that or also just think like where the eye is gonna naturally fall so it's like I don't know it depends on what you're trying to say with the page because you can have a lot of fun with it right it depends what you're trying to do if you're trying to make people hate the character for instance you could be like put them in a really dark room or something and have like really weird panels to make the viewer uneasy or if you're trying to make the people like them then maybe simple box shapes super not an expert just doing what I can do if we zoom out a little bit it might decide to focus a little better but yeah I think I'm pretty much self-taught with all this stuff so if I give any advice it's just to just try and do things um and see if you like them if they you know just keep going I definitely definitely was never like taught anything I think that helped yeah that helped um on how to do this stuff so I just when I first started making stuff probably wasn't that great uh probably still isn't like amazing amazing but you just got to do what you enjoy and then the rest will follow I think as well sometimes also practice I guess practice makes perfect yeah check the book out it's really good I think also um reading comics helps and looking at comics you like for inspiration can help definitely help me it's like if I'm stuck I might look at um how another comic artist approached it and been like oh yeah that's like a really nice idea and maybe you know repurpose it or try and figure out how I can make it my own kind of thing so no problem we've taken inspiration from others as long as you obviously don't like go directly copy them but so all the I don't know why I drew her eyebrows because usually I just color them in so I drew them specifically here but I don't know why I did that uh oh got some stainage probably from this I usually put paper down underneath this and now this time I haven't because I wasn't thinking and now we've got a bit of blur but you know I kind of like when these mistakes happen if that makes sense I just need a paper put a paper under it so I think because this is like plastic-y thing went through even though it's blue and I haven't used blue creepy and now what do I use so at the moment she's in her kitchen and I have designed the kitchen so I think what we'll do here is this is kind of what the kitchen looks like right this panel so I think what we'll do is this white with this like light color for the counter bottoms the cupboards yeah the cupboards the counter bottoms and I'm thinking leaving this bit white would be nice so just make it look like she's leaning down looking at the picture over the counter nice let's see I'm gonna leave that whole white oh I think my music stopped again which is fine it's totally cool guys I don't know what happened I I feel like I had lots more tracks for live streams before but it's been two years like I said since I have live streamed so what I'm gonna do is as if she's picked this up so it's off the counter now so I'm just gonna do like this blue which has been the prominent color that I've used in the kitchen makes sense to use it again like I find it I think it's this one so I was thinking so far I really like I don't know why I just love the way it bleeds through the page I think it's really pretty could just be me but you know that would not be there that would be in the back so that didn't make sense to anyone there's a little like part of the frame that would still be on the frame instead of on this part that she's taking apart and I was like that doesn't make sense anybody else kind of talking to myself I guess I am just using printer paper so it's super affordable and it bleeds well basically the alcohol markers bleed for it very easily obviously because it's just a very thin paper and it's probably not the best way to do stuff but I enjoy it so and I I really like the marks that it can create I'm scared to move this because it made my paper focus but if you can see here like this one was running out of ink and I really like the sort of texture I guess it gave it but yeah that's kind of the idea it works for me I guess I'm gonna keep hitting my light so all that crashing sound I'm gonna take a sip of my coffee as well what are you guys drinking coffee I've got this like totoro mug oh yeah feels like everyone's come here to just chill because no one's chatting really but that's fine I'm chilling too and I hope you're having a swell day a swell day guys apparently that's how I talk hope you're having a swell day I'm from the 1950s thanks Laura I think it's just I think it's just um I probably just you started using printer paper because it was there um just for like practice or just to do like a rough and then I'm for actually kind of like how that looks so I just kept doing it for years because I pretty much have not stopped using printer paper since I started doing Emily's burning which I made in 2018 I think which is absolutely crazy to me that is five years ago now it might even be 2017 I'm not sure I think it is 2018 though and then the other two I made in 2021 which was great fun and it was good because so Emily was burning the first comic I made it was kind of the first time I did a short story and I was thinking I could never do it and I just you know I just went for it and it worked out people still buy it to this day so you know people must like it right um and then I did then it was a few years of just nothing because I had to get like a full-time job again oh it's not annoying arabella it's super nice I like chatting with people but yeah um I had to get a full-time job again so it was difficult to draw after work and stuff and then the pandemic happened obviously and I was working from home so it was a little bit easier to just pick up the pens when you're like right next to them and work on the comic or something if you don't have anything to do at work or after work or during your lunch break so it helped me a little bit hey chain chain chains I can't say my name that was really embarrassing chains or me mainly I'm gonna stop I'm gonna stop uh but yeah I I worked on those two comics and it was a really great time for me because it felt like I felt like before or I can never do another comic because it's too difficult to have a full-time job and do it and then I just did it and obviously working from home was much a lot of help for that um so yeah um this one is been a long time coming it's been a couple years since I've made all comics and I've been itching to and I've noticed that made mood I'm generally like happier now because I'm working on comics again which is really crazy to think that I obviously enjoy it that much that it's just making me feel better in my mood generally but yeah so the comics coming along also I am still working full-time but um yeah it's it's it's a really nice job that I have now working at a studio for a design agency in London and I work mostly with King who make candy crush and stuff so we make a lot of like stuff like that which is fun how are you adjusting to life in England oh yeah thanks um yeah it's been real it's been hard uh definitely missed my family and friends a lot and still adjusting still adjusting but it's going okay now I think it's better now the sun is out and stuff I could just call you chains that that works that works for me so this is how I was looking through the bleed through it's a good bit weird here her face but I also like that which is strange probably but chains are that's true instead of chainsaw that's quite funny oh nice we're doing comics too that's awesome um what comics are you working on at the moment chainsaw this one is quite a simple page color because not much going on is there but there is a bit of this so I've got these like a who-who refill things and I tested them out on paper where I just like used them and they spread out and I thought they look really nice um so we're gonna be doing that today because it might seem odd but there's something specific in the story that it does make sense to fall but I can't tell you what it is because it will be a spoiler and I don't want to spoil it just in case one of you just want to read it so this is scary but oh gosh I hope it doesn't go too far I just built it on this page which is brilliant oh good I'll just photoshop that out it's not a big deal okay yeah that's looking fine I'm just gonna move this paper whilst I do some more of those ink splotches in case I spill on it again but yeah if you're new here you might not know but I'm a bit of a hectic artist and just do stuff sometimes so let's just do little dots please I really like how it like spreads out across the paper oh thank you for saying my voice is nice people used to call me a crow not crow but my friends were like you sound like a crow and it's like an in-joke and then I made a youtube channel and a lot of people told me they like my voice and I'm like by the way people like my voice actually working or re-mastering the first season oh my god that's awesome that's a lot it sounds like a lot of work I'm kind of that person who's like when it's done it's done you know I think it would be too impatient to go back and work on stuff but that sounds really cool that you have the patience for that because I would probably redo Emily's burning stuff but I think yeah yeah I think as well if you you probably have an ongoing series it makes more sense to do it right because then it all like lines up and stuff there's just a bit a few more bunches around so that might look really weird but there is a purpose for it you're a hectic artist as well sorry guys I'm just going to be right back I just need the Lou quick but hold on as well yeah feel that it's only 24 assets so it's not that bad it's a turn into an animation oh nice that's cool what's it called do you kind of link it here I think or I don't know if you can link it uh might be it might not work but you can let us know what it's called yeah I'm just waiting for this ink to dry a little bit because I know if I flip it over now it's gonna smudge everywhere so I don't want to do that let me know again if the music is too loud too quiet I'm relying on you guys I'm just dabbing it because I'm too impatient way too impatient I missed our arm here yeah I really missed the livestream it's been like I said if you were here before it's been two years since I livestreamed and I missed it so to me but it's just one of those things where it's just like I put it off as when I'm doing it it's like nice but it just seems like hard to get into it again I'm just looking for what she was wearing she's wearing light blue in this scene and that's what she's wearing now so that like purple yeah this was just a short comic so it's not like I haven't got that much left to do but it's just taking a while because I'm just taking my time with it I think which is fine and I also had to add I added a couple pages because I thought it would like round out the story a little bit better just wondering if a bit white there would help um so I had a couple pages to round the story out but also wanted to make it a little bit longer um oh well uh yeah I wanted to make it a little bit longer but it's just fine just because I wanted to see if I could get it like um saddles saddles did you just add that term when you have like it bound the comic bound by stitches instead of um stables oh my god I cannot speak today I'm trying to speak it was like what are you saying spell it out um because I really like this style you know what I mean when you have like this bound cover so this one I was counting is only like 30 pages um and I really like the style this is why I publish a short box who publish a lot of like indie um comic artists and short stories and it's by Lily Blakely but it's really cool I think it's kind of that's the short box logo it's really nice so I was like looking at this for some inspiration a little bit um and she has transitions where when time passes she puts a page and then this little thing that's like referenced in the story is there and I thought that would be really nice to indicate um passing of time in mind because I realized that it could be a little bit confusing because it's a short story you can't really set up like them getting up every day and being it's just like quick scene to scene so you have to like separate it somehow so I thought that was a good way to do it so I'm gonna try and do that yeah two years since my last dream ages I I kind of stopped streaming for a while there um a moved country and then yeah did a lot of stuff so just haven't streamed for a while but here we are this may music stopped again it shouldn't have oh my gosh can you just continuously play music please a bit of a sound thank you yeah it's been a while anyhoo let's get on with drawing the thing is I always take up all my pens and I paint paint I color with them and then when I tidy up I get sick of them being on my desk so I just tidy them all the way and then I'm like which one was it again which one was I using uh it was fine when I didn't have that many pens I had like a small color scheme and now just got slowly gotten bigger and bigger in my color schemes just found it painted before to you person listening now why did I say that so weirdly if I haven't explained it before um it's about basically this person goes into an antique store and she finds this painting that looks a little bit like a relative of hers so she buys it because she thinks that's pretty cool but then spooky things happen and that is the story my guys but it's fun because it's it's ghosts I guess and stuff like that I like to to make a story about but it's also it's kind of more of a it's a story of loneliness I think is the theme really that's the theme of the story welcome back to YouTube well I I've been making videos all this time but I just haven't been streaming but also I think I streamed more on Twitch more recently but I can't remember it might have been around the same time that I stopped streaming on here as well to be fair so two years it's crazy time flies yeah same I I always have to be doing something um definitely always drawing just not creating a comic I guess I've always had it in my head like I want to do another comic but I think it's just sometimes things happen right so anybody watching anything good recently or read any good books always on the lookout for new shows and books last thing I read was we will find no peace here which was um they said it was well whoever recommended it if somebody online recommended it and it was um it was supposed to be a horror like they said it was horror but it was more like I don't know tragedy kind of more than horror that makes sense um I feel like you need some creepy stuff in there if it's gonna be horror I have tried animation I did a degree in animation and I hate animation I as you can see I'm quite a sloppy artist and I don't have the patience for animation I was never very good at it I wanted to be good at it because I love animation I love watching animation but you know just not good at it and I know it's that whole thing of like well everyone sucks at something to begin with but I just I didn't enjoy it as much as I thought I would I much prefer making comics which is yeah just my thing just my thing in some of these scenes in the kitchen we have some like pink light and I thought it'd be cool to just do some here I just went for that and do you see that I just did it it's happened like that I think that was supposed to be this black blob here but I didn't do it very well I think this is quite graphical and cool this pink line have you recently used your holographic paint um I do think so um yeah probably not probably not for a while I've already painted for a while either um I've been working more on the comic and if I do take a break for the comic it's more just like sketching random stuff in my sketchbook but I do miss painting as well I do enjoy it I think it's very relaxing for me even though it can be stressful as well it's like that you know fine line of stress and relaxation when it comes to painting because you're like stressed out that it's not gonna turn out good then also it's nice to paint so you know I have a couple of um holographic paints I think so which one way of referring to that interest your professional animator nice yeah there was a long time when that was my dream goal to become an animator I think it took me a while to let go of that like dream as well but I just don't think it was for me I just don't think I was very good at it the obsessive animation that's cool though like that's fun that you enjoy what you do you know so it's not like that so the obsessive something I think personally that's a good thing I want a bit more black but I don't want to do that she will paint one again I don't know where my black pen's gone the blackest ink um that's the Stuart Semple stuff yeah I feel like that stuff is like fun like it is a bit gimmicky as well it doesn't really it's hard to use it for something every like day today stuff I guess I think the blackest paint in the world is like good for stuff if you're making models and things like that it's like really interesting and the unicorn paint is nice but I don't think yeah again it's like if you're making like sculptures or modern art or something it's probably really nice but I don't really see me using it that often and I think I gave that unicorn paint no I have that it's like the unicorn milk isn't it yeah I have that because I like that I was confusing it with something else but yeah I like the unicorn milk but yeah to use it for day to day things is is difficult and yeah we're gonna turn over now and start drawing I think yeah I do love testing like different arts fights out because it's fun and I like making videos about that stuff but yeah sometimes it's like beyond a video is it gonna be used that much that that stuff probably not but it's fun to try it and then maybe think about where I could use it because you might it might make you create stuff that you wouldn't normally have created before because you had it if that makes sense chains are not so funny um do you what work animations do you work on I feel inspired to paint a work that would be pretty cool I swear to god if my music has stopped again I don't think my husband will react like yours did true we actually left that flat as well like probably like half a year after I did that and um I got paint and I painted right on top with some white paint and the white paint was like slightly slightly darker than the other one so yeah it was quite funny and I was like panicking a bit because I was like this looks a bit darker no one found out I think they were more distracted by the fact that my cats had scratched the sofa and they took my 5k deposit and they kept most of it so I don't feel bad about painting on that wall I wish I had that money back uh in terms of my job is I only to specialize in 3D that's cool nice I have a I work with colleague who used to do health and safety like videos for their company and there and now she works with me and she does stuff for king which is cool oh yeah she enjoys it it's a little more motion graphics that she does but she's making a children's book and stuff on the side which is cool okay my cat's coming in apparently oh me yeah some cookies yep i'm gonna suck her for some diet pepsi cherry pepsimax oh thank you for loving the content I I want to see your name is Anna but I can't read your name already sorry because I am dumb yeah cats are expensive to keep uh yeah they're they're all outside um exploring uh Gigi was about to come in and stomp all over the desk but the door is shut but my windows open to the outside so they might come in I do have too many cats that's for sure but I love them all another big cat crazy in case you didn't notice I realized I've given this person six six fingers I was like looking at it like that looks strange never done that before I was like looking at it like it's going on here yeah we haven't let we never we we're never letting them out before um but they've slowly proven trustworthy in coming back and they cry at the door so I was like they've always been indoor cats but we have like a back garden now it's like a communal back garden but oh I hear a bell oh who comes Gigi we're coming here here he is I'm just gonna stomp all over my staff huh yeah sure no just lie down that's fine Gigi you can't stay here moving along no no no music goes really well with this move your body he's like covered in like crap from outside now as well Gigi please have a heart we're trying to work on a carpet he's like purring how can you purr when you break your mother's heart like this move you must move slightly at least so we can see what we're doing he's like so funny come on my guy come on here whenever I have a paper though they have to lie on the paper it's so strange he's like who are you talking to you crazy woman and now it's gone really bright because he's on the screen have you noticed that like the white of the paper has just gone crazy all right well look at Gigi for a little bit Gigi Gigi look up he's like absolutely not Gigi what's this look up he's a big he is massive cat by the way this guy's huge yeah he's super fluffy he looks like your cat well this is one of four cats that I have he's my big boy Momo Gigi and Momo sound like twins it's that same thing my cat did to me last night always sit on the paper yeah isn't it true but they're like I want to be the center of attention so they come and they sit like on the paper do you mind we're trying to draw he's like I don't mind thank you very much making himself comfortable he's like yeah I'm staying here he's like a G a separate Gigi cam but he is so beautiful Gigi Gigi he's like no I'm not looking belly rubs belly rubs you don't have to move my guy because you're too you're making the camera too bright please do a boop on the nose okay he loves it Gigi you want to go outside again I'm gonna have to move him I'm sorry guys he's just blowing the camera out it's too bright with him unless I turn this light off no oh maybe maybe okay you can stay you can stay you've passed the test Gigi this one time this one time you may stay I feel like I'll always get her ear placement on which is very typical of me I think Gigi likes the music because he's super chilled so trying to come there again you can kind of rub this pencil out but it's it doesn't ever rub out like I'm just gonna put the hair to that bit I think Gigi's lying on the hair color excuse me sir I can't even where you put it Gigi are you lying on the color am I just disturbing you it's okay Gigi don't get grumpy don't get grumpy perfect weekend picture a cat and artists and jazz nice and a cool drink on the way not bad I kind of want to sip my drink now I wish you could see his face he looks very pleased for himself in a minute he'll realize I don't mind him sitting here and he'll move because this music is crazy whoa this music is going in it was like chill and then it was like yeah well guess what I want something super chill dreamy or relaxing what are we thinking I think you're relaxing let's do relaxing there we go Gigi likes that Gigi likes that Gigi try and zoom out a bit more so you could see more of him I'm like it's relaxing music and my cat is sleeping so it's an ASMR's drink now I feel sniffing let me just blow my nose quietly sorry to disturb you the prince fluffy belly Gigi um sorry about that that's really annoying blowing my nose oh there's plenty of spaces for this guy to lie down on but he wants to be here where I'm drawing he's like I need attention I need you Gigi I did have fun way too big here but I feel like if I make a mistake when I scan it into photoshop and stuff I can always fix it or just leave it because sometimes I feel like the mistakes kind of give it that quirky uniqueness sometimes I don't know if I'm just making excuses or being mistake filled but sometimes I like mistakes maybe not like six fingers mistakes but yeah fly Gigi did not care thanks for your time and energy Gigi for getting rid of our flies for us Gigi because belly that's some fur you got there my guy you pushed it off yeah I usually I usually do if I don't have space otherwise I don't mind like if if I didn't have space here I mean I kind of don't have that much space but I kind of enjoy him being here if he's on the edge of a paper you know he's not he's not disturbing no one turn this paper so I can see what I'm doing should I zoom back in because it feels like it's a bit far away now okay let's move Gigi on so we can zoom back in you must move you must move no being cute won't save you you must move oh yeah I'm gonna move him one sec it's kind of hard because I've got the camera in the way there we are and he did not like that by the way he was not a fan of that I'm very sorry Gigi but we need to zoom in a bit so people can actually see what I'm working on sorry Gigi he is he is annoyed but there we go I feel like that light is too bright I'm not sure let's have a bit of light so we can actually see because it's getting darker because I think it's gonna rain again rain is not too bad there we go I think that's probably Gigi's gone he's like screw you I feel bad now but that's where it goes Gigi I see Mochi Mochi's my other cat I don't know what this farm is about that's way too high it's kind of annoying me oh perfect I'm about to start doodling I was looking for something to listen to hello cotton candy nation you're very welcome to the stream yeah we're doing like a super chill stream today instead of me posting a video and it's been a while since I streamed I was telling these people who've been watching um it's been two years so yeah I just wanted to stream doing a comic page we colored in the back of this one and we're getting ready to continue drawing but yeah it's been it's been fun so far I've been streaming for about an hour an hour 15 so it gives you kind of the impression of how long some pages may take me because this one was you know already drawn um so don't take that into account but how long it takes me to color and then do you like the fine the fine details I don't want to say that the fine details the final details I think I want to say but yeah uh and the pencils so it takes me probably a few hours to do each page we'll finish each page so I would say it probably take me about four hours in total for each page depending you know what's on the page this one is relatively simple to the other pages that I've done I guess this is another page so yeah it's coming along it's just taking a while but I guess that tends to happen when you take a project on the picture frame looks absolutely massive here as well but oh well I think I made her hands a bit smaller than I intended to I think that's something you only really notice so if you were going through this comic could be like a fine tune like I will be doing because you know when you make something you're very critical self-critical I think what I am anyway oh my gosh why have I done that again I've drawn the thumb way too high I'm holding something oh my gosh what's going on I can't draw this hand what's happening guys I'm losing it maybe if I draw the frame first it will make it a bit easier okay that's fine what's going on with this hand I don't know it looks fine on this side I think it's just the way I've drawn it so sometimes what I like to do from super stock I just get a tracing paper and it helps back side a bit today so I'm just going to try and lean in a bit better this side I'm using myself there we go that's kind of what I was going for so it should look like that right there you go much better how are you yeah you missed uh Gigi leaving he was like he was kind of ushered away by me and he was not happy with that so I really get sulk sulk energy later yeah working on the the horror comic this is kind of a page that's near the end of the comic sort of sort of it's ramping up to the conclusion I guess and uh yeah so it might not make sense to anyone but I've also done a lot of pages already so without choosing a page that is too spoilery I decided to paint paint draw a comic page on stream yeah this is it so far this music's kind of fun isn't it I thought I did put relaxing music and it it's kind of relaxing but I would say it's not that relaxing I'm good we know same old let's try and make a comic clear this has been a while since I made the last couple I was saying before um that it's been like a couple years since I streamed which is so strange I didn't realize it's been that long but it has I think just moving probably just put me off streaming for a little bit yeah I just decided I wanted to stream instead of doing a video today because it's just it's more chill I get a chat with you guys as well and I'd probably be doing the same thing anyway except I would have to edit and upload it and that's just tiring so whilst working on the comic I want to I don't know what's what I was going to say then what's working am I going I want to what what are you gonna say I don't know want to share it with you guys don't know yeah it's it's hard to keep up with it oh tavern scene that's cool I think just moving and having like uh no space before for um streaming put me off for a while and then it's just hard to like get back into it I think yeah it's figures going well so far I hope I'll probably watch some of this later and be like oh my god no one can hear me why did I bother oh yeah they paint chips so I painted uh on the canvas which was a massive mistake but it should have put jesso down or something first I don't know why I didn't um but you live you learn and I put loads of like streaks of jelly gouache paint on all over the canvas and made like a massive swirl I don't know if you guys have seen that video but it was fun to make I just wanted to use every single color that I had it was hard work um but then the paints just dried out and started chipping off so I was like I could leave it as it is because it looked kind of cool or I could just chip it off myself and then I'm thinking of making something with those paint chips I'm gonna like maybe stack them up and then I don't know like I want to arrange them I think either on the canvas or a different like piece of paper sorry about that bike if you can hear that and I think it would be really fun but I have to wait and see uh what I do because I feel like I want to do fun stuff like that but I'm also like preoccupied with comic at the moment so any free time I have I'm just like I need to do the comic yeah it was funny because I haven't seen that it's like a short on my youtube or my tiktok where I just take the paint chips and I'm flicking them off basically on tiktok I did like a ASMR version which is like I really liked it it was like really relaxing I was like actually this is nice I don't know if this looks anything like the base I had originally drawn but oh well but the way yeah the way that those paint chips flaked off was so nice like just having a cup of different like confetti like you say paint chips superb turn out of ten would make that mistake again that was a youtube going the gear are you still enjoying it or is it like I guess you're posting a lot on tiktok haven't you have you watched human resources on Netflix no is it good is it about I went to see the new Indiana Jones last night quite liked it I think I just really like Phoebe Wallerbridge flea bag so I'm not calling her a flea bag that's the name of the show for the show that she wrote and started that flea bag um so it was cool I like her character in it what is going on I don't remember how I drew this hand so I'm going to refer to the chasing paper how did I draw this hand it doesn't make sense it probably made sense when I first drew these rough pages and now I'm like where what is this oh it's a series where love shame and anger have certified oh sounds good I hope it's in a while but a new one for gray sample to pipe and check the products just went through opening it on camera nice yeah I got um contacted by them like a couple of years ago and I think it was like when I was just about thinking about moving and quitting my job and stuff so I was like I can't right now I'm distressed but yeah sounds good editing is so draining takes a little yeah super draining and you can't even like do anything else whilst you're editing it's like you just have to sit and edit you can't like listen to an audiobook or watch a show or I mean and you can't even really listen to music because you've got to like listen to yourself over and over and over again trust me I know the process I've been there yeah super annoying I would love to um have an editor but I definitely can't afford that especially I don't even make any money off youtube really so it's like no I don't think so if I like made money off youtube I would definitely hire an editor because I just just can't be bothered with it sometimes but I do enjoy it I do enjoy making the videos and yeah I don't know sometimes yeah sometimes it's just tiring get someone who edits small creators in bulk oh my gosh what a job sounds painful yeah it would be the worst job ever maybe there's someone out there who just does love editing though so much that they just want to edit all day long because which one maybe there's a shouting again I was worried that Pesto was like in the house or something because she she thinks that everyone is her friend and it's not the case so people don't like cats weirdly but yeah I was like listening like is he gonna come over shouting at me probably people suck sometimes yeah I mean I don't mind editing videos it's just sometimes when you're tired you're just like I've just been doing it for like five years now just like every weekend or so every week doing a video so I think after a while it just it does get a bit tight so it depends what you like I guess this doesn't make any sense how is she holding that but fine I think she'll just cover up her thumb because that didn't make any sense like how is this floating in the air the music is vibe people still see vibe it's especially hard if you have a full job isn't it to do these extra stuff why do we do it I guess I would love to be one of these people who just has a job and then goes home or stops working in my case because I went from home and then just switches off just doesn't do anything but that would be boring I guess it's not really showing the colors that well on here but just the camera it just kind of blows out the colors a little bit it's still working in the same place my dear the outline for the panels but I'm not sure if I want to have these outlines or if I want it to be outline free if that makes sense so when I scan these and pop them into Photoshop for like a cleanup I might just get rid of the boundary boxes because I'm still not sure if I like them or not hospital pharmacy for laugh that's good though you your daily job is animation you feel like you work for them well yeah I guess that's like excuse me could you enjoy it I enjoy my job but I'm still still tiring it still takes mental energy up yeah I'm super lucky to work from home it's like my dream to work from home to be honest the light is coming through the window I'm just going to close the curtain because it's getting really bright yeah I think I definitely would never be able to work from home if the pandemic hadn't happened and we saw that people could work from home and now it's kind of a little bit the norm that people can you know if they're working in an office job can work from home in some cases which is definitely more for me like I feel way better working from home I think I'm realizing now that when I was working in office I definitely felt like overstimulated just too many people around me all the time I need to definitely be like alone a lot I'm just always always tired from traveling to the office for me it's like perfect job and I feel like it makes me more creative as well like it's nice to work with people there as well like see them every now and again so I do I've gone into London a few times and gone to the offices and stuff because I've got a couple of offices that I can go into because I work for an agency so I can go to their office but they out contract me for King so I can go to the King office as well if I want to which is kind of where I work really like that's my team and the people I know are in King so it's like nice to go there they have like an incredible office in London it's really cool and they have like free snacks showers playstations board game room I'm like um and everyone's like why do you work from home again because it takes me about two hours to get into London into the office and I can't be bothered with that just I just can't what's this song just came out I don't know where this song yeah exactly like you just slowly realize that maybe cramming it a load of people into a room to work is not that great always depending on the person like some people thrive in it some people don't and that's why like that we've discovered like about us as people that everyone works differently right some people it motivates them to be in an office away from home but I definitely feel more motivated at home like I have my own comforts at my chair that I like it can get hot water bowl with my backs hurting because I'm an old lady with a sore back I can get a coffee I mean I can get a coffee at work but you know you have like your stuff around you it's just easier the song is like kind of cool a bit random came from super chill living outside I've got a pretty dangerous to travel we're about since how could you live oh go sneeze again I like this panel's missing something so I'm just gonna add like a little swoosh of pink not sure if that was like made sense but I kind of like it oh it's just you in there now that's cool oh Cape Town I used to live in Somerset West when I was a child been to Cape Town a few times how's things going there is it really that dangerous you know and then you work at the pharmacy yeah that's kind of nice though like because sometimes you do it's nice to be around people sometimes you just want that like quiet I definitely still have a million meetings my job so it's kind of like best of both worlds hate drawing teeth because it always comes out like really weird at first like stick with it oh okay I hope that works out there warrior load shedding trains get so far and on then the usual I'm sorry to hear it I always love Cape Town it's so beautiful there shame Steve this mouth looks really weird I'm looking at it on the camera I'm like what is that I'm glad to hear the the clearing up what's load shedding by the way I never heard that term before let's see I thought I knew what it was and then I was like thinking about it like it doesn't I don't think that's what it is would they just skip like rid of lots of rubbish they just dump it kind of thing oh no you can animate as long as you're in power that's the spirit I suppose what would be quite a fun thing to do if you're watching this stream like after the fact is to like skip to the front and to the end to like see the page like reveal itself oh power outages that makes more sense than what I said oh that's must be really frustrating when you're trying to work and also dangerous I guess could you because just came in and gave me some chocolate I can't eat it now it's annoying for people to eat me jumping on but don't take it I'll eat it in a second when I've wrapped the stream yeah well I'll just finish this uh last panel I think I'll wrap up the stream a little bit that face looks so strange just please it's like looking at the camera it's making everything look so much lighter than it is you have your own power supply that's good it's such a great room service I know right what's going on he sees him streaming so he's like she probably eats some drink maybe I don't know or did he just take my glass to use it for himself that's the question because he hasn't come back yet guys so we'll see he's in power so the panels that's good we did the mouth to low on this one this rings a part of me too as well that's the question though so what I'll do is I'll just probably like move my mouth up slightly and finish up a bit later if it looks weird still how satisfied are you for the picture far yeah I think it's like gone well uh I'm happy with it I probably need to just when I scan everything in once I'm finished I'll probably clean up some stuff but mostly I look I kind of like the way that it looks like a bit messy if I make sense so this is kind of the page and it took us six two hours roughly to finish um but yeah this is how it's looking and because I finished it I'll probably wrap up the stream now and I don't know how many other pages I have that are not like that are spoiler free if that makes sense uh because it is it is a short story so it's probably not that many yeah thanks for watching everybody it's been really nice hanging out with you super chill super chill stream and I hope that we can hang out again let me know if you enjoyed this uh when in the when I've stopped filming if you could like the video or whatever I don't know you can like it now I guess if you liked it uh but yeah I'll be really helpful and oh it says I dropped frames sorry about that if I did I hope it wasn't too bad but yeah um thanks for watching guys and hopefully I'll see you next time thanks for hanging out with me it's been super chill okay bye


Good morning everyone and welcome. This is Melissa Arma with a Stock Swish here today reviewing the DRI Stock Swish Show play of the day beautiful downward sloping move in this and Guess what looks like it's going to the dream target Whenever you trading you decide to day trade. I do think it's a good idea to Have money management rules for the time of the day Well, you can always take a second trade in something or a third trade in something But I will tell you that this had several moves today You could have redone it it did continue to go it did continue to break and I think this is a hundred percent on Its own well market came in slightly Market came in slightly but pretty much is bullish today in the gap So this really did do its own thing today as many of the gaps that I'm looking at watch and do It's one of the reasons why you can short stocks even in a bullish market like this So DRI had the sell-off had the move down I'm going to go over the morning call here, but like I said it did continue right in here boom drop Now you could have redone it you could have done it again on this than the five minute if you wanted it here And you could have even done it laid in here dream target on this is 77 Lowest 77 69 I got within 69 cents of that. Wow Wow, look at that So really big nice move for this beautiful play of the day and the stocks will show live trading room If you'd like to be in the live trading room with me if you sign up for the Golden Gap course this coming weekend There's a special offer. I'm doing you can email me if you want to sign up deadlines Friday And I would email me and reach out to me the earlier the week the better It I have a lot of things going on right now But if you want to trade with me and do the course and learn what I do you will learn how to read directional bias in gaps And that is how you're going to be able to look at stocks like this Look at the gap down predict that it's a short and take the trade and whether you get out at 78 or 77 or 79 This had a beautiful beautiful beautiful move today as a short Congratulations everyone that did it and we'll see what we get tomorrow and Email me at Melissa at the stocks wish comm if you'd like more information on the upcoming Golden Gap course September 30th and October 1st


Thank you everyone for being here. Thank you very much to Dr. Salano and Dr. Thornton for giving me the opportunity To speak to you today about a topic That a growing number of modern economists is interested in or concerned with these days namely inequality Who of you has heard about Thomas Piketty and his book capital in the 21st century? So you all know this book has been a great success everybody has boarded and supposedly everybody has read it and Everybody who has talked about this book in public praised it from the American president to the Pope Everybody lost this book But thanks to Kindle statistics We now know that only a very small fraction of readers has actually ventured beyond page 27 Okay out of out of 700 pages So they have basically read the introduction Not the whole book, but that's really not what is important What is important is that they are all very concerned with the issue that is raised in the book and that is increasing inequality in terms of income and wealth over the past 50 years Okay and in my opinion This is a topic a research topic that Austrian economists in particular are very suited to to make Contributions to because many of modern day Austrians have specialized In the field of economics that one of the main causes of this phenomenon falls into namely monetary economics And today in this lecture I want to talk about the causal relationship between monetary policy and inequality Okay, so As a start I want to give you two papers as suggested readings The first one is a short paper by Gito Hülsmann published in a book edited by dr. Solano and dr. Howden In 2014 it was published the title of the book is the Fed at 100 So the book is published by Springer and and accordingly is very expensive so I recommend to look for the Working paper version of this paper which is available for free online Okay, the second paper that I recommend to all those who are interested in in this topic is Is a working paper by two economists from the University of Leipzig in Germany? Pablo Duarte and Gunther Schnabel. They have recently in 2017 published a working paper that Deals with these issues and this is also available for free online So most of the ideas that I am going to present today are from those two papers Okay The lecture plan is as follows So we will start with some empirical analysis So we will just look at different measures of inequality and how they have developed over time in the past 60 years, so we will look at income. We will look at wealth We will look at sector inequality. In particular, we will look at the financial sector and manufacturing And we will look at intergenerational inequality specifically at the inequality between young and old generations and In the next part of the lecture we're going to do the theoretical Explanation for this phenomenon. So we will talk about the role or the impact of monetary policy here We will first of all talk about monetary expansion. That's what monetary policy is all about and it's Most immediate effect price inflation then we will Again reiterate and explain The notion of Kantian effects that has already been mentioned this week and we will talk about Monetary expansion when it occurs in the form of credit expansion specifically and If we have time we might have a conclusion at the end Okay, so first part empirical analysis First we have to define our terms First type of inequality that is often looked at in the empirical research is income inequality So what is income? A very broad and general definition of income is this one here Income is just a gain in the ability to consume or save Over a specified period of time. What is important here is the last part over a specified Period of time. So income is what economists call a flow variable We can measure income only with with respect to a certain period of time We cannot measure it for one point in time specifically But of course for empirical research this definition is too broad As one of the main drawbacks of empirical research, we always have to narrow down our definitions to something that is measurable so a Measurable definition of income is of course monetary income. So we will look at Monetary income defined as the sum of money received over a specified period of time and This period of time is usually a year. So we will look at annual income and this includes wages, which is the income from labor It includes interest which is income from capital It includes rents Which is income from land and what's the last one? Profits. Income from entrepreneurship or from uncertainty bearing So this is the classical taxonomy of income according to the different sources, but of course we have to add Gifts and inheritance. That's also a source of income It's of particular importance in developed countries like the US Okay, so the next type of inequality is inequality with respect to wealth wealth inequality and Wealth is a very different variable it can again generally define just as all The tangible and intangible things that make an individual a group family or a nation Some collective whatever better off Okay, that's again much too broad Slightly more narrow version or narrow definition is the amounts of Saved income at a given moment in time Okay, and here you see one difference between the two variables wealth is a stock variable as economists call it because we can measure Wealth at any given moment in time. We don't have to have a reference period So but again, this is not narrow enough Of course, we will look in empirical research at economic wealth, which is defined as the monetary exchange value of All the owned assets capital goods and long-term consumer goods of an individual or a group in society and Those assets include financial assets bonds stocks cash deposits etc and It includes Non-financial assets such as real estate land commodities precious metals you name it Okay Now how do we measure inequality? well total income or total wealth Somehow distributed among the population and what we do is We rank our population from the top income receivers or top wealth holders to the bottom Income receivers or wealth holders. Okay, so we have a population 10 individuals and we rank them from number one to down to the last one in the ranking Okay, so we have here in our little example 10 individuals that constitute the population the one in the front There's a top 10% of the income distribution Let's say and the poor guy at the end is The bottom 10% of the income distribution. He's so poor there wasn't even enough color to paint him all over Okay And now what we do is in order to get an idea of how in unequal the distribution is We calculate total income for the whole population Okay, let's say this population Receives five million dollars per year and then we look at The income of different segments of the distribution. For example, let's say that the guy at the end the bottom 10% Receive 50,000 US dollars per year now We can calculate the income share which corresponds to one percent. Okay, the calculation is very simple It's fifty thousand dollars divided by total income. It's one percent We can do the same for example for the top ten percent Let's say the top ten percent Two million US dollars that would mean that their income share is 40% okay, so the top ten percent of the income distribution here receive 40% of total income The calculation is is identical. It's the income of the segment divided by total income Of course We do not only look at bottom 10% and top 10% we look at as I said different segments One very important segment that is often looked at is the bottom 50% So the lower half of the income distribution how much do they earn? What is their income share? What is their wealth share? or We often look at the middle 40% Which are the 40% in the distribution that separate the bottom 50 and the top 10 So the middle 40% is what this often referred to as the middle class Okay, they are in the upper half of the income distribution, but not quite the most not quite the richest in society Okay, so now let's look at some real data for the US Okay, here we have the income shares For the top 1% and the bottom 50% in the US from 1970 to 2040 This is basically the signature chart for the Occupy Wall Street movement Okay, we see that the income share of the top 1% has Almost doubled in that period from roughly 10% to almost 20% While the income share of the bottom 50% in red has fallen accordingly Okay, so we see here that over time inequality in terms of income has increased This figure is very interesting, but I find this one even more intriguing here We have the top 10% plotted against the bottom 60% And when I saw this I was playing with the data That's what you do when you have some data you play around see what looks best and And I saw this and I was intrigued the symmetry is astonishing, right? I mean the the share that is gained by the top 10% is exactly the share that is lost by the bottom 60% and And and I had an association when I saw this does it remind you of anything? Yes It's the sizzle. It's the scissors of inequality cutting through society Okay, here's another one Here we have again the top 10% This time plotted against the middle 40 So the middle 40 as I said earlier are still part of the upper half of the income distribution But their income share has decreased, okay So also here We see that inequality in terms of income seems to have increased Now let's look at some wealth data This is the plot for exactly the same segments of the distribution as the first one we saw for income this time for wealth we have The top 1% plotted against the bottom 50% and we see The two shares are much further apart Than the two shares we saw earlier for income so that we see directly that inequality is Much bigger in terms of wealth than it is in terms of income Okay, and we see again that while the wealth share for the top 1% Has decreased initially in the late 60s and early 70s it starts to increase Since the early 80s or end of the 70s Okay, so here also inequality has increased This is another plot here. We have the top 1% Plotted against the middle 40% Okay, so again Earlier we for income we have seen the top 10% plotted against the middle 40 and it was roughly in the same range This time we can take the top 1% which is only a subgroup of the top 10% and it is in the same range So again inequality in terms of wealth Is stronger than it is in terms of income Okay, another interesting Variable that is often looked at is the wealth to income ratio Okay, so here we take total wealth and divided by total income Let's see how this has developed over time We see that in the in the 1970s it was below 400% meaning that total wealth was less than four times total annual income and Since then it has increased of course we can see the impact of the dot-com bubble for example This is one peak over there. We see the impact of the housing bubble Okay, of course they have aggravated or amplified the phenomenon quite a bit But what is interesting in the plot is still like the general positive trend of this development The wealth-to-income ratio has increased and this is an indicator for diminished upward social mobility Okay, given given Certain level of income it becomes relatively more difficult to attain a Relative level of wealth it takes more years of income to attain a certain level of wealth So that's an interesting development Now an important question is of course What are the relevant segments? Is there any way to? To aggregate inequality can we reduce it to one number ideally and Yes, one proposition has been the genie coefficient. Who of you has heard about the genie coefficient? Who of you is able to define it? Okay, I will I will try to explain that very briefly. It's a bit technical But yeah, just interrupt me if it's too boring. Okay, so the genie coefficient is is Defined graphically. Okay, we have a diagram here and on the x-axis I want you to imagine that we have the cumulated Share of the rank order population. Okay, so 0.1 corresponds to the bottom 10 percent 0.2 to the bottom 20 percent 0.3 to the bottom 30 percent etc one over there corresponds to the entire population on The other axis we have the income share Okay, and now the entire distribution in Terms of income this in this example in terms of income Can be represented by one curve, which is called the Lawrence curve and in the hypothetical World of perfect equality the curve is actually a straight line. It's exactly the 45 degree line Okay, that means that for example the bottom 50 percent earn exactly 50 percent of total income The bottom 60 percent earn exactly 60 percent that means that everybody in the population Receives the same amount of money every year Okay, this is not how it looks like in reality, but this is the benchmark case Okay, this is the case where the genie coefficient is zero zero inequality In practice when we have some empirical distribution The curve looks very different it it always starts here at the origin at the point zero zero because the bottom zero percent Receive zero percent of total income that's clear and it always ends on top there at the point one one The total population put together receives 100 percent of total income But the curve is always somewhere below the perfect equality line Okay, and it is Convex like this. It is below the perfect equality line because for example the bottom 50 percent of the population Can never receive more than 50 percent of total income because if that was the case They wouldn't be the bottom 50 percent Okay, so it has to be below the perfect equality line and it has to be convex because we have a rank order here The the relative income share or the income share of the segments increases as we go along along the x-axis all right, so let's now take a simple example, let's Think let's think about a two-class society. Okay, we have the bottom 90 percent That receives 10 percent of total income Accordingly the upper 10 percent the top 10 percent received the rest of income 90 percent of total income and within those two classes Income is evenly distributed. That's why the curve for those two segments is a straight line Okay, now the genie coefficient is simply Defined in terms of the surface area between the benchmark case of perfect equality and the actual distribution that we observe Okay, let's say the surface area is a the genie coefficient is then formally defined as twice a Okay, I spare you the math, but in that case the genie coefficient is 0.8 Okay, if you have a distribution that is closer to the perfect equality line The genie coefficient becomes Accordingly smaller in this case. It would be 0.6 and in the most extreme case of Perfect inequality where nobody receives any income except one guy at the end who receives it all We have a genie coefficient of one and that's the maximum value for the genie coefficient and in practice we always observe some Value between zero and one the closer this to one the more inequality we have Okay, so let's look at the genie coefficient in terms of income and wealth in the US here We have the genie coefficient in terms of income and we see that it has increased Quite a bit since the early 1970s Okay, initially it looks as if it has fallen in the early 1970s. It starts rising You know what happened in the 1970s? Yeah, yeah, that was the Nixon shock in 71 So it was basically the introduction of a global fiat money system Okay, and and Piketty in his book points that out and says oh since the early 1970s inequality seems to skyrocket I wonder what happened there He doesn't elaborate on it at all, but he just sees it. Okay. It's in the early 1970s that it starts Okay, if we look at the genie coefficient for wealth, it's a bit more complicated. It's not as clear-cut. Okay, we see First of all that the genie coefficient is much higher to begin with than it was for income so it is Somewhere below 0.85 Initially in the 1960s, then it goes down and it starts to increase only in the in the 1980s and of course We have again this bump over there Which nicely coincides with the most recent financial crisis of the housing bubble the Great Recession as it is called and if you accept the Austrian business cycle theory that identifies a root cause of business cycles in monetary policy as explained earlier today by Roger Garrison Then it's not actually a big step to assume that there might also be a relationship between monetary policy and this Phenomenon that we observe over there namely Increased inequality in terms of wealth Okay, we have other types of inequality that we can briefly look at For example, we have sector inequality. Okay We can ask ourselves. How does the income or in particular how do wages? develop over time in different sectors of the economy and I have looked specifically at the financial industry and manufacturing other possibilities would be To look at the public sector versus the private sector my working hypothesis would be that wage developments in the public sector Are much better than they are in the private sector, but I might be wrong So this is an interesting graph from the paper by Duarte and Schnabel plotting the percentage change of real wages in the financial industry and in manufacturing From 1965 onwards And what we see is that initially in the 1970s Wages real wages in the financial industry decreased more sharply It looks as if the great inflation that occurred in the 1970s Was more harmful for wages in the financial sector. That's that's their rationale in the paper I'm not sure whether that's the actual and the the right explanation for this But we see that wages in both sectors have decreased and then in the 1980s They start to increase again and wages in the financial sector increase more than wages in manufacturing in Fact since the 1980s The percentage change of real wages in the financial industry is always higher than in manufacturing and it's Almost never negative. There's one exception over here. Okay, real wage growth in manufacturing is often negative in this period since the 1980s Of particular interest again is this period of the Great Recession Where we see that percentage change of real wages in manufacturing Is much more severe the fall in wages is much stronger for the manufacturing sector than it is for the financial industry Which is surprising when you think about that the Great Recession started out as a financial crisis As a crisis in the financial industry you would assume that wage is there for more sharply than in other sectors of the economy Again my working hypothesis here is that it has to do with bailout programs Okay, I have another type of inequality for you that might be of particular interest For you because it is about intergenerational inequality. So Inequality between different age groups in the population Okay, we will look at the medium income of different wage groups and how they have developed over time It is important to note at this point that this is not an absolute comparison It is quite normal that there are differences in terms of wages between young and older generations That's that's very natural because older generations have more working experience Okay, so the fact that Peter Klein earns a bit more money than I do Is probably justified Okay So what we do is we we look at index numbers, okay, we have a base year and Then we look at the relative developments Of the medium wage in those different age groups and here they are Okay, we have four age groups age 15 to 24 25 to 34, 45 to 54, 55 to 64 The older generations are in gray the younger generations are in black. Okay, so since 1979 which is the base year Medium Wages which are here deflated by the consumer price index. So it's it's the medium real wage medium real wage Has declined for all age groups and then the divergence occurs in the early 1980s Okay, the wages the median wage for the older generations increases The median wage for the younger generations Keeps decreasing So at the end of the period that we are looking at here. We have a nice spread between Younger and older generations have a nice depends on your perspective but if there was No change in terms of the relative inequality between the age groups and all of the four time series would have Have the same path. Okay, the fact that they don't have the same path indicates that inequality No matter what it was at the beginning. We don't know but that inequality has increased between the age groups Okay, and obviously the youngest generation 15 to 24 year olds For them the the wage development has been the worst Again the great recession Okay, if you look at only what happened after the great recession or during the great recession You see that the decline in the median wage for the youngest generation is the strongest Okay, and in this graphical representation if The relative change in the median wage was the same for every age group then actually The graphical representation for the top time series for the oldest graph that the decrease should be the strongest Because we are looking at this in relative terms, but Not very important now That's another graph where we have to tame the same time series the same median wage for the different age groups at this time We deflated by housing prices That's very interesting for young generations because young people usually don't have houses yet It might want to acquire one in the future and we see that The wages deflated by housing prices for young generations have really declined quite severely and again Of course we have the impact of the housing bubble at the peak of the housing bubble the index for the youngest was down to 50 Okay, so a house of the same quality has become 50 percent more expensive if you like There was a slight correction in housing prices obviously after the bubble burst But so the overall trend is visible.  It's good for house owners when housing prices go up It's very bad for those who might want to buy a house and have not done so yet okay, so Now let's summarize the empirical results The available empirical data suggests that there has been an increase in income inequality and wealth inequality an increase in the wealth-to-income ratio which indicates that there is a diminished upward social mobility and There has been an increase in sector income inequality specifically for the financial sector and Manufacturing as compared to manufacturing and an increase in intergenerational inequality Looks as if older generations have had much more favorable wage developments than younger generations Now we want to explain this phenomenon in terms of monetary policy and at this point I want to give you a little disclaimer here. I do not argue that monetary policy is the only cause for this Phenomenon there's there are many other causes that that play a role, but we isolate the impact of Monetary policy in this lecture Before you go into the theory section, I just want to clarify and ask a question. Yes, all of the measures that we've discussed so far are Static measures in the sense that they look at a snapshot of how things are in one time And they compare them to a snapshot of how things aren't some other time I've also seen some studies that look at You know mobility like what's the likelihood that a person who was in the bottom quintile Oh, yeah, I period it moves into another quintile later or the likelihood that you will be in a different Wealth quintile from your parents. Yes, you want to summarize that concisely and what well, yeah I mean the the relevant work on that topic has been done by Thomas soul, right? Thomas soul has shown that of course there is some Change in what income bracket you are at any given moment in your life You might be you might start off at the bottom, but might work your way up to the top. That's certainly possible But that's a very different question Right as in the questions. Is there any evidence that the degree of mobility has changed over time? Yeah That I'm not aware of and I'm not aware Okay, if I do not manage to finish my lecture in time, it's his fault Okay, so theory Let's talk about the impact of monetary policy again We have to define our terms. What is monetary policy and here? I give you a very general and broad definition of monetary policy it refers to all the actions of central banks and similar public and semi-public institutions that are in control of the printing press Hence all the institutions in the economy that are involved in the production of fiat money Oh, that's a suitable definition for the financial system that we live in So as I said, it's a broad notion of monetary policy. It includes central banks, of course But it also includes commercial banks because as was explained yesterday by Robert Murphy In a fractional reserve banking system Commercial banks are also involved in the production of fiat money And In essence what we are talking about is simply the expansion of the money supply Okay, we have a fiat money system because this renders the production of Money much more easily much more easy so in essence when we talk about monetary policy we talk about the expansion of the money supply and we want to analyze the effect of that Okay, first of all again a little graph just to illustrate the fact that the money stock in the economy has actually Increased over the past decades So here you have the money supply or money stock M1 for the US from 1960 to 2018 and yes, there was quite a bit of an increase From 1960 to 2017 the money stock M1 has multiplied by a factor of 25 Okay, this corresponds to an annual growth rate of 5.8 percent But the most interesting segment is of course this one here at the end For this segment alone from 2008 to 2017 the money stock has multiplied by 2.4 Which corresponds to an annual growth rate of 11.8 percent So the expansion of the money stock has accelerated of course This is justified by the Great Recession and so on and so forth you all know the story But it's still interesting just to look at what the development was Okay, the most immediate effect the most direct effect of monetary expansion is of course price inflation Okay, this means that Citrus Paribus money prices for goods and services will be higher than before Of course in reality the Citrus Paribus clause never holds so there are offsetting effects And when the offsetting effects are strong enough such as economic growth real economic growth Then we might not actually observe price inflation increasing prices for goods and services Even though there might have been monetary expansion Okay, so so Guido Hülsmann talked about this in his lecture yesterday about price inflation Okay, but luckily Monetary expansion for our purposes was strong enough and we have really observed price inflation So $1 in June 2018 has the purchasing power of Something in August 1971. What do you think it is? 15 cents is pretty good it's 16 16 cents If you want to go even further back in history The year that the Federal Reserve was founded it's 4% okay So the US dollar has lost 84% of its purchasing power since 1971 and 96% since 1930 it's quite impressive so since 1971 the average annual price inflation rate was around 4% And this of course includes the great Stackflation the great inflation of the 1970s In later decades the price inflation rate was a bit more moderate But of course as most of you know modern central banks explicitly aim at having a positive price inflation rate Okay, they have to find price stability as being a price inflation rate an annual price inflation rate of around 2% That's the policy goal. So it's the explicit goal of monetary policy to create an environment where The purchasing power of money constantly decreases and this has of course Implications how do people save in such an environment? Well You don't leave your money or your savings in cash under the pillow in your bed And not for the purpose of saving there might be other good reasons to hold some cash at home, but not for saving You you would be a moron to do that. So price inflation Discourages money hoarding Again something that Gido Hulsman has talked about yesterday. That's very important. Discourages money hoarding and It's important to note that money hoarding is of course the easiest way to save and historically It's the preferred way of saving of low-income groups They prefer to save part of their income in cash because it's so easy It does not require any expert knowledge about financial markets and different asset classes Classes and investment strategies. You can just do it. You know your grant mark can do it. It's very easy But your discourage to do it what instead you do is you redirect your savings into asset and financial markets Okay, so this implies of course an increased demand for financial assets for stocks bonds derivatives, etc and This in turn entails a growth of the financial sector from the demand side Okay, this in part explains The increased inequality In terms of different sectors when we look at the financial sector as compared to other sectors of the economy And there's an increased demand for real assets or non financial assets such as real estate right so part of the housing bubble and increased real estate prices in general is explained by the price inflationary environment that central banks and other financial institutions institutions have created so What this means is that generally when we have a price inflationary environment where all prices and wages Increase over time money loses its purchasing power We have a disproportionate asset price inflation if we only look asset prices they tend to increase faster than other prices because a price to inflationary environment creates incentives for savers to go into financial and asset markets to redirect their savings into those markets and This of course is a main driver of the wealth to income ratio This explains in part why the wealth to income ratio has increased over time and why upward social mobility Has has decreased Okay, asset price inflation is again good for everyone who owns assets already It's bad for all those who don't have assets yet, but want to acquire them All right, so here's a plot that illustrates this claim very nicely We have here share prices or stock prices and the consumer price index Plotted against each other since 1960. Okay, we see that in the 1980s the divergence occurs where the stock prices go up much faster than the consumer prices and this just Yeah illustrates this theoretical claim very nicely Okay, I've prepared a nice quote for you that explains The problem of price inflation when it comes to inequality here it is Okay, I want you to guess who has written this and Louis Rouen is not allowed to speak Okay, so but when inflation remains high For a considerable period of time investors will try to protect themselves by investing in real assets There's every reason to believe That the largest fortunes are often those that are best indexed and most diversified over the long run While smaller fortunes typically Checking or savings accounts are the most seriously affected by inflation Who is the great austral libertarian thinker who said this Right pickety Stomers pickety as you can see I ventured beyond page 27 So I read the whole book and this is the best part of it So you don't have to read it actually this is this is the best part pickety does not develop this idea further But he is obviously right For once Okay Here again is another interesting correlation Very interesting plot We have the New York stock exchange index plotted against the top 1% income share in the US Okay, every social scientist every empirical social scientist who finds something like this Should be jumping for joy This is a correlation that is pretty strong yet Not many people are talking about it Okay, now we come to Cantillon effects we make that very quickly it's named after Richard Cantillon the relevant work is this one This is the cover of the book that is downstairs in the book store if you have not yet bought your copy do it after the lecture So Cantillon effects refer to the redistributive effects of money production or money creation This is most likely how Richard Cantillon looks like but we are not sure about this. Nobody knows for sure This is Mark Thornton's theory you should ask him about this So the general idea is of course that money is not given equally To every participant in the economy if that was the case then inequality would diminish over time as money supply expands Nor is it the case that newly created money is given an exact proportion To the existing income distribution if that was the case then The absolute inequalities would be amplified, but in relative terms the inequalities would remain the same Okay So it's always the case that some actors in the economy receive a disproportionate share of the of the money earlier than others so the general Idea of Cantillon effects is that first receivers of the newly created money are benefited at the expense of late receivers Somewhere in the economy the new money enters Some some people a group of people receive the new money and gets to spend the new money At still relatively low prices and the money ripples through the economy gradually bits up prices Those who in this process receive a share of the new money last or late are disadvantaged Okay Now can we use this for our analysis of monetary expansion? Yes, if we think about what is often called the transmission mechanism How does the new money actually enter the economy? So we look at money Terry expansion As credit expansion. Okay, money enters the economy always in the form of credit And does this have any structural effects? My answer is yes. So first of all It's of course great for commercial banks who are the institutions that grant the credit to businesses private individuals or public institutions Okay, so there they their revenues increase Okay So this the fact that The new money enters the economy in the form of credit granted by commercial banks and tails again an increase of the financial sector From the demand and the supply side. Okay, so this explains partly the sector inequality we observed We observed and now if we go further and Take the position of a commercial banker who is about to grant a credit The question that you have to ask is who will receive the credit who are after the commercial banks the individuals or institutions That receive the new money in the form of credit Well, that's a relatively easy to answer from the perspective of a commercial banker if he has a choice He will give it always to someone who is relatively well off who already Earns or receives a stable stream of income and who already possesses wealth that he or she Could use as collateral in the credit transaction So this means that the haves are Benefited at the expense of the have nots or the have not yet in particular the young people so this experience part of the intergenerational inequality and in general this Mechanism tends to widen the gap between rich and poor have another quote here and this is not Piketty but in fact an austral libertarian thinker who Corrects Yeah, an important misconception there's a lot of people think that the Sheep credit benefits poor people or people who are relatively Relatively poor But this is not the case cheap credit Always has disproportionately benefited rich businessmen such as the Donald Trump's and the Robert Maxwell's of this world and This is of course from Rothbard's 1992 essay repudiating the national debt and I'll stop here and I'm available to answer any questions later today in my office