Conversation With Economist Richard Werner | The Plandemic Was Used To Usher In TOTAL CONTROL

Summary

In this enlightening discussion, economist Richard Werner, known for his book 'Princes of the Yen', delves into the shadowy world of central banking and economic control. He explains the mechanics of money creation by banks, the manipulation of economic cycles through credit policies, and the potential dangers of Central Bank Digital Currencies (CBDCs) tied to digital IDs, hinting at a future of unprecedented surveillance and control. Werner also emphasizes the importance of community banks and the need for public awareness to counteract the centralization of power.

Takeaways

• 🏦 The central banks, rather than governments, are the primary entities controlling the world's money supply and economic policies.
• 🤔 The complexity of monetary policy and economics is often intentionally used to obfuscate the truth and keep the public in the dark about banks' activities.
• 📚 Richard Werner, an economist and author of 'Princes of the Yen', has been a vocal critic of central banks' policies and their impact on economic crises.
• 🔄 The repo market bailouts in September 2019 hinted at underlying issues in the banking system that were overshadowed by the subsequent pandemic.
• 💡 Werner's experience in Japan revealed the disconnect between theoretical economic models and real-world practices, particularly in central banking.
• 🌐 The World Economic Forum's Young Global Leaders program has been criticized for molding future leaders who align with their centralized power agenda.
• 💸 The creation of money is primarily done by commercial banks through lending, not by central banks or governments.
• 📈 Bank credit, when used for asset purchases, can lead to asset bubbles, banking crises, and economic recessions, as seen in Japan's economic history.
• 🛑 Central banks have the power to avert economic downturns but may choose not to do so for political reasons or to engineer crises for political change.
• 💹 The push for Central Bank Digital Currencies (CBDCs) is a move towards greater surveillance and control over individuals' financial transactions and activities.
• 🚫 The potential introduction of CBDCs poses a threat to personal freedom and economic sovereignty, enabling the central banks to control and restrict access to money.

Q & A

What is the main topic of discussion in the interview?

The main topic of the interview is the role of central banks in the global economy, the creation of money, and the potential for central banks to manipulate economic conditions for political ends.

Who is Richard Werner and what is his claim to fame in the field of economics?

Richard Werner is an internationally renowned economist, known as the author of the bestseller 'Princes of the Yen' and as the father of the monetary policy concept of 'quantitative easing'. He has been at the forefront of warning about incoming economic crises.

What is the 'repo market' mentioned in the transcript?

The repo market is a part of the financial system where banks and other financial institutions lend money to each other for a short period, often overnight, using securities such as government bonds as collateral.

What does Richard Werner believe about the purposeful creation of economic crises by central banks?

Richard Werner suggests that central banks, like the Bank of Japan, have purposefully created economic crises, not out of incompetence, but as a means to engineer political and economic changes that favor certain interests.

What is the significance of the 'United States notes' issued by JFK in 1963?

The United States notes issued by JFK in 1963 were significant because they were a challenge to the Federal Reserve's control over money creation. These notes were issued directly by the US government, bypassing the Federal Reserve, and were the last instance of a government creating its own money.

What is the connection between the World Economic Forum's 'Young Global Leaders' program and the centralization of power?

The 'Young Global Leaders' program is seen as a mechanism for identifying and grooming individuals who can be molded to fit into a future elite that aligns with the interests of powerful entities. This program has been linked to the rise of various political figures, suggesting a pattern of centralizing influence.

What is the role of banks in creating money, according to Richard Werner's research?

According to Richard Werner's research, banks effectively create money when they issue loans. This process, known as credit creation, is the primary way new money is introduced into the economy, rather than the common misconception that banks are merely intermediaries for existing deposits.

How does the use of bank credit for asset purchases influence the economy?

When bank credit is used for asset purchases, such as real estate or financial assets, it can drive up asset prices, creating an artificial asset boom. This can lead to unsustainable economic conditions that may result in a recession or depression when the bubble bursts.

What is the difference between 'financial intermediation theory of banking' and 'credit creation theory'?

The 'financial intermediation theory of banking' posits that banks act as intermediaries, lending out deposits they have received from customers. In contrast, the 'credit creation theory' suggests that banks create new money when they extend loans, effectively increasing the money supply.

What are the potential implications of Central Bank Digital Currencies (CBDCs) for individual financial freedom and privacy?

The introduction of CBDCs could potentially allow central banks to exert unprecedented control over economic transactions, including the ability to monitor all financial activity in real-time and to restrict or block certain transactions, thus impacting individual financial freedom and privacy.

Outlines

00:00

🏦 Central Banks' Influence and Economic Control

The conversation begins with a discussion on the significant role central banks play in the global economy, suggesting they are the real power behind economic movements. The host expresses difficulty in understanding the complex world of monetary policy and finance, which seems intentionally opaque to keep the public uninformed. The guest, Richard Werner, an economist, is introduced as an expert on the subject, with a background that includes proposing the concept of quantitative easing. The host references the unusual banking activities in September 2019, hinting at a potential financial crisis before the pandemic, and seeks clarity on these events.

05:00

📚 The Disconnect Between Economic Theory and Reality

This paragraph delves into Richard Werner's academic and professional journey, starting with his education at the London School of Economics and Oxford University. He expresses dissatisfaction with the disconnect between theoretical economic models and real-world economies, leading him to explore practical economic experiences in Asia, particularly Japan. Werner's time in Japan during the asset bubble peak and his work at Deutsche Bank raised questions about the disparity between stock market levels and land prices, sparking his interest in the real functioning of economies.

10:00

🌐 The Alarm on Economic Crises and Central Bank Policies

The discussion continues with Werner's experiences in Japan, where he observed the central bank's role in economic growth and crises. He became the first 'chimamura fellow' at the Japan Development Bank, learning about the country's rapid post-war growth. Werner's research led him to understand the source of Japan's capital flows in the 1980s and the inability of economic theories to explain them. He developed an alternative economic approach, 'scientific economics,' grounded in empirical reality rather than abstract theory, which he implemented in his career as Chief Economist and later in his own firm.

15:00

💡 The Importance of Quantitative Tools in Central Banking

Werner emphasizes the importance of quantitative tools over interest rates in central banking, explaining that the latter is a distraction while the former are the key to understanding central bank activities. He shares his insights into the banking crises and his proposal for quantitative easing as a policy to quickly resolve such crises. The conversation hints at a connection between the 2019 repo market issues and the subsequent monetary programs rolled out in 2020, suggesting a deliberate acceleration of certain monetary policies.

20:02

🕵️‍♂️ Uncovering the Manipulation Behind Economic Crises

The conversation takes a turn towards the manipulation behind economic crises, with the host drawing parallels between Werner's findings in 'Princes of the Yen' and current events. They discuss the possibility of manufactured crises for political gain, the consolidation of power through the absorption of community banks, and the impact of the pandemic on economic structures. The host questions the narrative around the necessity of economic shutdowns during the pandemic and the acceleration of business consolidations.

25:05

🌐 The Connection Between Economic Policy and Global Power Structures

This paragraph explores the connections between economic policies, global power structures, and the influence of organizations like the World Economic Forum. The host and Werner discuss the forum's 'Young Global Leaders' program, which they suspect is a grooming ground for future leaders who can be molded to serve certain interests. They also touch on the idea of manufactured crises, such as the 2008 economic crash and the pandemic, as opportunities for gaining control and consolidating power.

30:05

💼 The Transformation of Economic Systems and the Role of Money

The discussion moves towards the transformation of economic systems and the role of money in centralizing power. Werner explains the shift from community banks to large firms and the implications for economic control. He also addresses the push towards digital currency and its potential impact on personal financial autonomy. The conversation suggests that digital currency could be a tool for further control, eliminating the possibility of a 'run on the banks' and centralizing monetary power.

35:07

🔮 The Vision of a Centralized Digital Currency Future

The focus shifts to the potential future of a centralized digital currency system, with Werner expressing concern over the loss of individual financial control. He discusses the implications of such a system for personal freedom and the potential for abuse of power by central banks. The conversation also touches on the historical context of money creation and the shift away from government-issued currency to bank-created money.

40:08

🏛️ The Historical Context of Money Creation and Central Bank Policies

Werner provides historical context on money creation, explaining that banks, not governments, are the primary creators of money in modern economies. He discusses the last instance of a government creating its own money in the US under John F. Kennedy and the subsequent shift to banks creating money through lending. The paragraph highlights the lack of public understanding about this process and the implications for economic control.

45:09

🛑 The Deliberate Creation of Economic Crises by Central Banks

The conversation delves into the idea that central banks may deliberately create economic crises to achieve political and economic restructuring. Werner shares his research findings on the Bank of Japan's intentional prolongation of the country's recession for political gain. He also discusses the potential for central banks to use their power to manipulate economic cycles for their benefit.

50:09

🌍 The Global Impact of Central Bank Policies and the Push for CBDCs

The discussion broadens to the global impact of central bank policies, with Werner highlighting the European Central Bank's role in creating economic crises in Europe. He also addresses the push for Central Bank Digital Currencies (CBDCs) and the potential for these to be used as tools for surveillance and control. The conversation suggests that the ultimate goal of central banks may be to consolidate power and control through digital currencies and identification systems.

55:12

🛑 The Central Bank's Intentional Abuse of Power and the Path to CBDCs

Werner discusses the intentional abuse of power by central banks, using their control over money creation to manipulate economies and societies. He outlines the steps taken by central banks to move towards the implementation of CBDCs, including the use of crises to push for digital IDs and the potential consequences of such a system. The conversation highlights the risks of a totalitarian control system through CBDCs and the importance of resistance and awareness.

00:14

🏡 The Role of Community Banks and the Fight Against Centralized Power

The final paragraph focuses on the role of community banks as a counterbalance to centralized power. Werner advocates for the establishment and support of local banks to prevent the monopolization of financial power. He also discusses the potential for local, credit-based systems that could operate independently of central bank control, offering a more equitable and democratic financial system.

05:15

🤝 Conclusion and Call to Action

The conversation concludes with a call to action for greater awareness and understanding of the financial system, emphasizing the importance of holding central banks accountable. Werner encourages the support of community banks and the promotion of economic policies that benefit local economies and individuals, rather than centralized power structures.

Keywords

💡Central Banks

Central banks are the primary monetary authority in a country, responsible for controlling the supply of money and regulating financial institutions. In the video's context, they are portrayed as key entities with significant power to shape economies and influence economic policies, often to the extent of being perceived as the real 'rulers of the world.' The script discusses how central banks, rather than governments, control the money supply and can create economic booms or busts.

💡Quantitative Easing

Quantitative easing (QE) is a monetary policy tool used by central banks to inject liquidity into the economy when interest rates are already very low. It involves large-scale asset purchases, typically of government bonds, to increase the money supply and encourage lending and investment. The script mentions Richard Werner as the father of the concept of QE, and discusses its application during economic crises.

💡Repo Market

The repo market is where financial institutions借贷短期资金 by selling securities and agreeing to repurchase them in the future. It's a critical source of short-term funding for banks. The script refers to the repo market bailouts in September 2019, suggesting unusual activities that hinted at underlying financial instability.

💡Economic Crises

Economic crises are periods of significant financial turmoil, often characterized by a sharp contraction in economic activity. The script discusses the role of central banks in sounding the alarm on incoming crises and, controversially, potentially orchestrating them for political or structural reform purposes.

💡Monetary Policy

Monetary policy refers to the actions of a central bank that influence the supply of money and interest rates in an economy. The script delves into the complexities of monetary policy, including unconventional measures like QE, and how they can be used to manage or mislead economic outcomes.

💡Shadowy World of Finance

This phrase from the script refers to the opaque and secretive aspects of financial markets and institutions, suggesting that there is more happening behind the scenes than the public is aware of. It implies a sense of manipulation and control by powerful entities operating outside of public scrutiny.

💡Financial Intermediation

Financial intermediation is the process by which financial institutions, like banks, channel funds from lenders to borrowers. The script challenges the textbook view that banks are mere intermediaries, arguing instead that they create money through lending, which is a critical concept in understanding the true nature of money supply.

💡Asset Bubble

An asset bubble occurs when the price of an asset, like real estate or stocks, rises far above its intrinsic value due to speculative demand. The script discusses how central banks' policies can inadvertently or intentionally create asset bubbles, which can lead to economic crashes when they burst.

💡Bank Credit

Bank credit is the money that banks create when they lend to customers. The script explains that banks don't just lend existing deposits but actually create new money in the process, which is a fundamental concept in the discussion of how money is created and how it can influence the economy.

💡Digital Currency

Digital currency refers to money that exists electronically, rather than in physical form. The script raises concerns about central banks moving towards digital currencies, which could increase surveillance and control over individuals' financial transactions, potentially leading to a loss of privacy and autonomy.

💡Economic Growth

Economic growth is the increase in the production of goods and services in an economy over time. The script contrasts the potential for healthy, sustainable growth through proper banking practices with the boom-and-bust cycles caused by improper credit creation and asset speculation.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. The script discusses how central bank policies, particularly those that increase the money supply rapidly, can lead to inflationary pressures.

💡Community Banks

Community banks are smaller, local banks that focus on serving the financial needs of a specific community or region. The script advocates for the importance of community banks in fostering local economic growth and warns against their consolidation or displacement by larger financial entities or central bank policies.

Highlights

Central banks are key movers and shakers in the economy, with the power to influence economic policy and stability.

The guest, Richard Werner, is an internationally renowned economist who has been instrumental in shaping monetary policy concepts like quantitative easing.

Werner's background includes studying at the London School of Economics and the University of Oxford, and he has practical experience in Japan's financial sector.

The interview discusses the disconnect between theoretical economic models and real-world economic functions, emphasizing the need for empirical, reality-oriented economic approaches.

Werner's experience in Japan during the asset bubble of the late 1980s provided insights into the practical workings of the economy and the role of central banks.

The conversation reveals that banks, not governments or central banks, create the majority of the money supply through lending, challenging common economic theories.

Werner's research found that central banks can manipulate the economy by controlling the amount and direction of bank credit creation, leading to boom and bust cycles.

The interview touches on the role of central banks in economic crises, suggesting that they may intentionally create and prolong recessions for political or structural reform purposes.

Werner's work on 'Princes of the Yen' exposed the manipulation of economic policy in Japan, including the deliberate creation of an asset bubble and subsequent recession.

The discussion highlights the influence of central banks on political leadership, with the World Economic Forum's Young Global Leaders program being a potential avenue for shaping future elites.

Werner warns of the dangers of central banks gaining more power through the introduction of Central Bank Digital Currencies (CBDCs), which could enable unprecedented control over individuals' financial activities.

The interviewee suggests that the push for digital IDs and CBDCs is a strategic move by central banks to establish a totalitarian control system over economies.

Werner argues that the economic crises, including the 2008 financial crisis and the 2020 economic downturn, were influenced by central bank policies and not just market forces.

The conversation points to the importance of community banks and the need to protect them from central bank policies that could lead to their demise.

Werner calls for a return to empirical, scientific economics that is grounded in data and observable facts, rather than abstract theories.

The interview concludes with a call to action for individuals to support and engage with local community banks as a means to resist central bank control.

Transcripts

who really runs the world now I've long

instinctually believed it's the central

banks but I haven't been able to fully

understand how exactly and my hope is

our next guest tonight can do this

Richard Werner is an internationally

renowned Economist who wrote the

bestseller princes of the yen is the

father of the monetary policy concept of

quantitative easing and for decades now

he has been at the Forefront of sounding

the alarm on incoming economic crises

Richard welcome to the show excited to

talk to you

thank you very much and thanks for

having me it's a pleasure

um I I have to say this is going to be

the most difficult interview I think

I've ever done because

um you know monetary policy economics

all of this is over many of our heads

um the language is difficult to

understand and I feel like it's done on

purpose it's done to keep a lot of us in

the dark so that we don't know what the

banks are really doing and what's really

happening in the shadowy world of

Finance so um I've done a lot of I've

done a lot of digging into this I've

done a lot of research into this and I

have to say that when I first became

interested in what the central banks

were doing and what's really going on

was back in September of 2019 right

before the pandemic hit when there was

this strange thing going on with the

banks where they were bailing out the

repo market and they kept doing this

over and over right they were dumping

billions of dollars in the repo market

and something obviously odd was going on

but many of us couldn't figure out what

is this odd thing that's happening it

looked like maybe the bond market was

going to crash or something along those

lines really unclear but then the

pandemic and we all kind of lost track

of that and um

but I I feel like it's all connected and

so I want you to start first of all I

want you to start with giving everyone

your history in the world of Economics

now you're a professor a lot of people

think oh you know you've just been in

Academia this whole time but you haven't

so can you give a quick brief rundown of

your experience

great well let me first say trust your

instinct I think your instinct has been

spot on on the money you know that the

central banks are the key movers and

shakers

um and also the second point you made

about

um you know the September 2019 crisis

which um seems to have been clearly one

of the reasons why they accelerated some

of the monetary programs that we then

saw being rolled out in 2020 but we'll

come to that so yes I think you spot on

uh well my background

um I studied economics at the London

School of Economics

um and then enrolled for the the Masters

and doctoral program at the University

of Oxford I'm originally from Germany

and I thought you know economics was

going to be a bit more practical than

what they taught at these universities

because essentially they they've got

very abstract theoretical models

mathematical models

that have a high degree of precision

within their own models with their own

confines but these these models have

essentially nothing to do with reality

um but also let's come back to that but

basically just to say at this stage that

I just felt what is this what do they

teach me I'm interested in the real

world how economies actually function

and what's going on and

when I graduated from the LSC was in in

the summer of 1989

and I I thought there was a lot going on

in Asia I want to go there I wanted to

go to China Japan

I ended up being in Japan

um doing an internship at Deutsche Bank

um at the peak of what with hindsight

turned out to be the peak of this acid

Bubble at the time as you know in the

late 1980s people did not call it a

bubble

um and to me of course that was very

exciting was going on there

um going through the various departments

at Deutsche Bank

um and and so there were a lot of

questions there why is the stock market

at this extraordinary level the Nikkei

two to five index was around close to 40

000 and at the same time land prices

were just so high overpriced it was

incredible

so much so that a tiny plot of land in

central Tokyo would have the same market

value

and and we're talking about something

fairly small like um you know the

Imperial Palace Garden which is like a a

small park in Central Tokyo would have

the same market value at these market

prices as

all the property of the entire State of

California including Los Angeles San

Francisco everything you know

it's just I'd love to own that crazy

land right exactly so so of course I

thought wow what is going on and then

and so to me the this gap between

economics the theoretical

stuff and reality seemed so huge and of

course I was much more interested in

reality

um and so I sort of took time off from

Oxford

um to go back to Japan went to the

University of Tokyo uh became a graduate

researcher uh learned Japanese a garden

a job at the Memorial Research Institute

learned a lot from the people there met

a lot of people in the financial sector

then

um became the first chimamura fellow at

the Japan Development Bank which is one

of the government development Banks

which is very much involved in the

post-war rapid economic growth which is

the other big puzzle you know how did

Japan manage to have such high growth

double-digit economic growth

what's the secret and basically the

policies they adopted did not follow the

textbooks they did not do what the

economics theorists were telling us

um so another puzzle to solve

um Japanese Capital flows in the 1980s

were basically going everywhere in Asia

in America uh Australia Hawaii buying up

U.S companies Columbia Pictures you know

uh Rockefeller Center and so on

Pebbles Beach Golf Course where was all

this money coming from and why was so

much money coming from Japan again the

theorists couldn't explain it they had

empirical models also that didn't work

it was like puzzle after puzzle

and to me that was a nice challenge I

thought well one needs to find answers

to all these questions

which ultimately I did find

um but just quickly back and just

complete my answer

um

um so I then

um I I also went back to uh to Oxford to

try to finish my degree meanwhile some

of my work was published

I got job offers in Tokyo so my

doctorate was a bit delayed I got it in

the end but

um I also then became Chief Economist at

Charlene Fleming Securities in Tokyo

which was one of the sort of quite

um nimble investment Banks they're quite

strong in Asia

with a flat hierarchy so they gave me a

lot of responsibility early on

um and I could Implement my models and

my Approach which is very much reality

oriented I realized that economists

they were basically using this

theoretical approach which is called the

deductive hypothetical

axiomatic approach so

um they just pose these theories and as

you said at the very beginning

it sort of makes things artificially

complex while at the same time giving

this impression of being scientific but

if you look at the scientific research

disciplines chemistry biology physics I

mean how do they work they use a

different methodology which is the

inductive method also known as the

scientific research method you look at

data you look at facts and any Theory or

model you have has to be developed based

on that data

that's scientific and I realized once

you study methodology economics the way

it's being done in all the leading

universities is not actually scientific

it's more a political ideology to push

certain preconceived ideas they then

work backwards what assumptions do we

need to to be able to sell our frequency

conclusions that the theoretical models

come to well that's totally unscientific

and so

I started what ended up

um being an alternative approach What I

Call Scientific economics where you know

yes you can have theories and models but

they have to be grounded in empirical

reality their facts always drive things

anyway so

um I um I then

um set up my own firm advising

institutional investors having been at

Johnny Fleming very quickly top uh top

three in Economist on Japan and in the

various rankings Greenwich survey

institution investor survey set up my

own firm

um then realize there's such a big gap

in economics we need to

um

to really revolutionize economics by

having this empirically driven realistic

economics actually works and we can

learn a lot from from Asia successful

economies like Japan Korea Taiwan and

then of course

um since then China that as well

um I went back to the UK became

professor of banking but continual work

running a global macro fund uh several

Global microphones actually

um Providence Asset Management then bear

Stearns Asset Management set up their

first macro fund hedge fund outside the

US the best dance Global Alpha fund

um so continue then to do my academic

work while also advising institutional

investors I've been monitoring

um

Central Bank and bank credit Creation in

40 countries

um for many years and that really gives

you so many signals and it's not what

everyone's looking at it's not really

the interest rate that is the key signal

that's part of the smoke screen from

this false economics to keep people busy

with stuff and central banks are able to

distract people's attention it's like

the Magician on stage look here what's

happening while the other hand is doing

the trick you know

um so it's not the price of money the

interest rate that's the key tool I

found out it's the quantitative tools

they're using that are more important

hence also when I proposed a more useful

policy to get out of banking crises

quickly which are called quantitative

easing but enough of that let's let's

um go into

into details okay so

um so you're legit

that's what all of that boils down to

um okay I'm trying to figure out where

to start and I'm going to ask you where

to start because I think that there is a

connection between what you uncovered in

the princes of the Yen and how there

were these anointed people these

anointed men who 30 years prior were

essentially crowned to later run the

country run the banks run and even in

the role of prime minister right they

were like really truly crowned in

advance

there's also the world economic forum

and there's the young global leaders

program which to me seems like a very

parallel similar thing and you actually

yourself were one of the global leaders

for tomorrow it used to be called the

global leaders for tomorrow then they

changed it to the young global leaders

and you actually sounded the alarm on

this and said hey they've changed this

this used to be people they would pluck

up that that were you know smart and and

doing great things in their Industries

and now they're grabbing people that

they seem to be able to mold and direct

and we've even seen Klaus Schwab now

saying things like oh we've infiltrated

cabinets all around the world we've got

people everywhere our young global

leaders are now everywhere and you were

sounding the alarm saying now they're

just getting people they can mold people

that they can direct when it used to be

actually

so the foremost thinking Minds in their

Industries

so I feel like there's some kind of

connection between what happened with

princes of the Yen what was going on in

Japan and the young global leaders I

also feel like there's some sort of a

connection with because what you uncover

in princes of the end is that these

crises are manufactured the Central Bank

in Japan had the option to get out of

the recession they didn't they chose not

to they did it for political reasons

they had a reason why they wanted to

keep Japan in a recession and they were

doing it for their own political gain

right their own political end

and so then I think about how does that

relate to to the 2008 economic crisis

how does that then relate to the

pandemic because another thing that

you've been exposing is that the way

they gain control the way the Central

Bank gains control is through absorbing

Community Banks and essentially closing

down mom and pop shops right like if you

can consolidate everything into the big

firms then you can control the world a

lot easier if you've got a lot of little

mom and pop businesses if you've got a

lot of little Community Banks which are

giving the loans to those little mom and

pop shops then you're not you know it's

a different Dynamic so you so what their

goal is to to consolidate so this makes

me question things like

the 2008 crash and also in particular

the pandemic because one thing that

really at the beginning of the pandemic

when they were closing down the economy

I was I can confidently say in my field

of progress you know I was considered a

progressive political talker don't know

what they consider me now but whatever

it doesn't matter

um I was really the only one that was

actually saying do not shut down the

economy you do that you're screwing over

everybody and a lot of my counterparts

were saying no no no if you open the

economy you're a shield for Wall Street

this is all a game for Wall Street we

want to keep it close and I was saying

oh my God you keep this closed let me

just tell you what's going on over the

decades it used to be back in the early

1900s 80 percent of the businesses were

mom and pop shops slowly over the

decades they've dwindled to to now under

50 percent and when you do that you have

Consolidated power to the big Amazons

you know right you get all these big

companies get it so

the pandemic accelerated this a lot of

shops went under uh during the 2008

crisis a lot of those Community Banks

went under

so can you tell uh so this is where I'm

at with this and I'm thinking all of

this is somehow connected that maybe

they even manufactured the 2008 crisis

that maybe even the pandemic not saying

they necessarily release the virus on

purpose maybe I'm open to that idea but

even if they didn't they took advantage

of the fact that there was this virus

and they were able to then say now is

our chance to for one correct what was

ever going on in that in that September

2019 repo issue we're going to hide that

or correct it fix it

um and on top of it we're going to

consolidate more control and another

thing you've been sounding the alarm on

I know I'm saying a lot here uh but

another thing has been digital currency

they want to move us towards this

digital currency which if the banks and

I want you to get into this what the

banks really do if they really are the

ones that are creating money

in and we used to have run on the banks

right which is what the whole premise of

central banks you don't you need a

central bank that's going to control

things so there's no run on the banks

you end up with these constant crises

over and over

so

well you wouldn't ever have a run on the

bank I would imagine if you moved to

digital currency there's no how could

you possibly you're not going to the

bank saying give me give me my gold they

don't do that anymore now you go and

give me my dollars

okay that could potentially cause a

collapse what happens if if it's digital

they'd be like well your money the

money's on your card don't worry about

it it's right there you've got it in

your wallet so can you connect I mean

where am I do you see where I'm at with

this and can you absolutely absolutely

absolutely that's exactly the all these

uh events all these Trends are connected

and the Common Thread is

that

essentially Human Nature

um particularly when you know I think

ordinary people can't really fathom this

very often because I think most people

are quite well-natured and if they see

somebody trouble they want to help and I

think that's true in in almost all

countries in the world but there is a

small proportion of people that are

either extremely ambitious or

unscrupulous or have actually some kind

of uh problems pathological

um you know problems

um making them somewhat

um Psychopathic whatever the case may be

there is a small proportion of people

that love power

and it's probably true that to some

extent everyone if given power

is tempted to use and abuse power

there's a famous British Statesman Lord

Acton who had seen power at close hand

and how it really changes people

um a lot of people basically can't

handle power it corrupts them they just

want to use and abuse that power and you

know feel the power to enjoy feeling the

power he said

um absolute power well first he said

power corrupts and then he says absolute

power corrupts absolutely so there is

that

tendency that um

not everyone can handle power but

particularly when you get the wrong

people in positions of power which often

happens because they may be seeking

those positions of power

then we we see that power is being

abused and this power and wants more

power they just um you know they're not

happy just with money

they literally want control and that's

really the overarching trend of the 20th

century which unfortunately is

accelerating in the 21st century namely

the concentration of power into the

hands of fewer and fewer people and the

abuse of that power because it is not as

the U.S Constitution demands subject to

checks and balances anymore

um you don't have the separation of the

different powers in our executive

Judiciary and legislative no we what we

do have is an increase in concentration

of power

across the different areas across

countries and into the hands of fewer

and fewer people and of course the way

this is exerted is through money

and that is the common thread in all the

things you've said and that's why I

think we should start to unpack this by

looking at money what it does how it

works and we always have this official

story which is a small screen a smoke

screen Editor to hide reality as you

were saying you know to get people off

the The Real Track and then there's the

reality and then how things are being

manipulated behind the small screen

in order to concentrate power further

and that you can demonstrate you can

show with the data

is what's been happening but let me

quickly just um start perhaps by talking

about the world economic Forum because I

was invited

um to attend in 2003 20 years ago

um January

and they made me Global leader for

tomorrow that's that used to be this uh

the young people's program that they had

at the world economic forum and of

course I mean it was exciting I must say

you know all these people that normally

only see on television you know shook

hands with Bill Clinton the US president

you know you meet all the the current

leaders you meet I mean the top

musicians band leaders were all there

um and and of course you know from all

scenes business people

ministers secretaries of State everyone

was there

so quite exciting but

I just felt because you know they they

had they had a program they had topics

serious topics to discuss

and so I I ask questions

and they were promoting for instance

um genetically modified

foodstuffs

um which I know is is actually quite

dangerous there's all sorts of negative

consequences some of them just never

tested

um but really something that at least

people should know if they buy something

whether it's genetically modified or not

and the seeds usually

um are much less

fertile you know of any genetically

modified organism fertility goes down

and that's of course used by the big

Agro businesses because they want

Farmers to each year buy the grain Anew

from them but of course in traditional

traditionally your Farmers would save

some of the Grain and then you plant it

which is actually a nice sort of

allegory for economic growth you know

you've got you grow rice and you've got

your bag of rice what you eat

that's your consumption but what you

don't eat that you save the grain you

can plant it and the more you save the

more growth you'll have next year but of

course by having genetically modified

stuff it doesn't work you can't plant it

you have to go back so erase that point

and they shut me down and it was clear

that this is a rig this is not a proper

conversation it's not a proper

discussion then the next topic was

something else you know and of course

anything on economics Finance banking I

was just shocked these were very

controlled conversations and after a

while the clearly the moderators after a

few days they've been warned about me

you know don't pick Richard Werner you

know and so I realized they wouldn't

even when I raised my hand that they

would they'd see me but ignore me

um so I realized this is a this is a

fast

in 2004 I then challenged the head of

the ECB in front of everyone who's a big

big event

um plenary session he was on stage and

um the ECP at that time had just

engineered a recession

um in Europe uh particularly Germany

by taking policies that would tighten

credit there was a credit crash 2002

2003 and they kept saying oh that's good

and we need this in order to have

structural reform now that's exactly

what the bank of Japan had done

throughout the 90s they were saying in

public things like oh we like this

recession because

um thanks to the recession companies and

I'll learn a lesson they need to change

and that the politician's done unless we

need to deregulate liberalize privatize

we need all these changes well that's

not the Mandate of a central bank so I

asked the ECB head

in front of everyone where's the Mandate

for the ECB to demand these structural

reforms that you have just demanded here

in front of everyone

and he was quite unprepared I mean it's

a mild challenge really think about it

and quite politely asked you know it

wasn't really aggressive but he wasn't

prepared for it and clearly I mean his

answer was ridiculous but also

um these big wigs there was also Larry

Summers he didn't like some of my

questions you know they all must have

complained about me what then happened

after this January 2004 the second year

when I came

is very soon after all of us global

leaders for tomorrow we're supposed to

be invited for five years in a row we

got an email saying oh sorry the program

has been abolished

no more global leaders but tomorrow

sorry you're also not invited anymore

but then we found out just a few months

later

they just started a new program you

mentioned it you know young global

leaders they named it and they selected

it more carefully to make sure these are

conforming people that can mold into

their future Elite so at the time I mean

that was I met a young or younger Angela

Merkel before she was Chancellor you

know it was quite clear you know they

had the Future Leaders

um among these selected people

um but it was a very controlled event

and you wonder what's really behind this

now what's behind this is of course the

the powers that be it's it's quite clear

it's a membership organization so big

big business pays big money

um and writes the agenda of Davos the

world economic Forum but even big

business is not as powerful as

the those who control money and perhaps

we should talk about that next so

because really

any business industry even

pharmaceutical businesses that we found

out you know since this since 2020

extremely powerful influential but

ultimately

the money power is even more powerful

and so in this hierarchy of power and

that seems to be the key issue so

perhaps we should talk a bit about that

yeah it's interesting though what you're

explaining you know what you were

experiencing starting in 2003 is what

many of us experienced during the

pandemic so we can now relate to this

now that you're talking about it this

well no it's the the conversation is

already directed you're not allowed to

ask these other questions or bring up

these other points or else you know the

narrative has been set and then what I

find really interesting is through this

young global leaders program that

they've installed that they've been able

to actually get a lot of these people in

positions of actual power like you

mentioned Angela Merkel like Justin

Trudeau Jacinda are done we've seen many

of them actually rise up and Lead

Nations what are the chances of that I

mean it's very similar to what you wrote

about in princes of the end which by the

way there's a documentary of this I

watched that last night it's very

fascinating people should take the time

because it is ominous in a lot of ways

how was it that these that these people

in positions of power in Japan were able

to anoint certain people 30 years prior

to them rising up to becoming uh the

Prime Minister even I believe and heads

of banks how were they able to you know

are they psychic well clearly they're

not psychic it's just that things aren't

happening exactly the way we think you

know we're thinking we're living in a

Democratic Society right I mean we're

thinking we vote these people get into

power they run for office that's how it

happens but clearly it must not really

be happening that way if they're being

named young global leaders and then they

literally end up Prime Ministers and

presidents of Nations

I mean it's just it's really interesting

okay so now that we've we've seen that

they've been controlling these

narratives they've been trying to keep

people on the straight and narrow in

their mind and if if not then you get

shunned you get Outcast you go away we

don't want you here anymore so it comes

down to the people that are controlling

the money

so what should we talk about next should

it be the what a bank really is and the

creation of money maybe where that or I

think so many places we could go with

this

[Music]

yes that's true that's true but I think

that's a fundamental one that's very

important one uh where does money come

from

and it turns out that most people's

understanding of where money comes from

and who controls money is actually is

not correct

um most people would think that the

money comes from the government because

that seems to make sense

and the government May delegate some of

that to the central bank but ultimately

you know it's a public function it

should be for the common good for

everyone that should be fairness

um and somehow the government just has

to put the money into circulation well

the fact is the reality is

no government in the whole world is

creating any money

the last major economy where the

government said actually we're going to

create money and they put several

billion dollars in circulation was the

US government under John F Kennedy in

the year 1963.

and it was the last year of his life

when he challenged the Federal Reserve

and then since then no other government

has dared to do that

um and so so if the governments don't

create money

um

who does it now what JFK did in 1963 is

he issued United States notes they look

exactly like the Federal Reserve notes

but same design everything except they

weren't headed Federal Reserve notes

they were headed United States notes

um and they didn't have the FED seals it

was a challenge to the Fed

uh but that's that's basically not

happening anymore it was an attempt

at the moment well or since then what's

been happening is that

we have the central banks

but even the central banks only create a

small amount of the money supply

um basically the paper money

most people don't realize that we have

been using digital money digital

currency for many decades and that's

part of the current you know in this

debated discourse obfuscation they're

saying oh let's introduce Central Bank

digital currency because it's digital

age we need a digital response from

central banks well hang on we've been

using digital currency for a long time

central bank money is only around three

percent of the money supply the paper

money the cash

97 is digital money created by Banks and

we've been using this for decades so we

actually have been using digital

currency for a long time and it works

very well and there's no problem with it

but now central banks will come to that

they're saying hey we need Central Bank

digital currency well why but they want

more power I mean that's quite obvious

the central banks want more power but

before we come to that let's just

understand the the status quo what's

currently happening and what has been

happening uh for the last most of the

last century is that Banks create money

now how do banks create money

essentially a banking license is a

license to create money and put it into

circulation

um and that's also where would you

mention the beginning this obfuscation

comes in economics doesn't tell you that

did you know that when you study

economics

particularly when he studied in on a

more advanced level

um and maybe do a masters in economics

or a doctorate there's no banks all the

economic models economic theories

they leave out Banks there's no banking

in it

and and of course we know what I said

well actually that's a crucial function

you know these are the creators of the

money supply and if you leave those out

people don't really understand how it

works

by coincidence convenient isn't it so

how do banks put money in circuit into

circulation how do banks create money

when a bank gives out a loan a bank loan

the money for the bank loan

doesn't exist yet until you get the

money paid to your account that is the

creation of new money so effectively

Banks don't lend money they create money

and they create it when they do what we

call a bank loan

so the money for bank loan which is the

technical term is Bank Credit Credit

creation that is new money creation that

newly adds to the money supply so the

more Banks do what we call Lending

normally

um the more money is being created and

added to the money supply now of course

even though Banks do this and they

create the majority of the money supply

through lending central banks of course

are very much aware of that now I

produced the first empirical paper uh

empirical test to prove this because

that was controversial and a few years

ago people were saying oh that's a

conspiracy theory what's Professor

Werner saying that Banks create money

what a conspiracy here so I thought well

and for 100 years you know there's been

this debate about

where does money come from and what how

do banks actually work because today if

you look at the latest Finance journals

and finance textbooks they all say oh

banks are just Financial intermediaries

they gather deposits and the money they

lend out is the deposit money they're

lending out

which is not true but you see that's how

they

um they hide the reality of money

created so I did an empirical test I

mean what's the scientific thing to do

can you believe it for a hundred years

economy's been arguing

um oh it's it's the financial

intermediation theory of banking that's

correct

and the few were saying no it's the

Freddy creation Theory that's correct

others were saying it's a fracture

Reserve Theory uh is correct you know

that's a third Theory which is in

between which says that each individual

bank is just an intermediary but somehow

collectively there's money Creation in

the system that one was popular until

the 1960s and then currently I mean

since then we have the current Financial

intermediation Theory dominating which

says no banks don't create money look at

three theories of banking how do we find

out which one is true do a scientific

test and so I did that you need the

corporation of a banker found one that

agreed and let me look inside under the

Bonnet so to speak uh how the money

creation was was

um was actually taking place and I could

empirically establish this is in two

peer-reviewed published um in public

peer-reviewed journals

um published articles that it is the

credit creation Theory the oldest

um which was known until 100 years ago

that Banks create money out of nothing

when they lent now the key is this

because banks are so powerful they

create new money

they actually have a lot of influence

over how the economy is going to be

shaped

currently and in the years ahead because

the decision by Banks of how much money

to create

and then also few to lend this money to

for what type of transactions for what

for what purposes that will reshape the

economic landscape very quickly and

basically there's three scenarios if

banks

create credit

and it's used

for asset purchases property real estate

Financial assets

because Bank credit is money creation

it's like printing money and injecting

it into say the property Market what's

going to happen with property prices you

don't need a PhD yeah figure this out

you're going to push up asset prices

exactly you get asset inflation if you

um have Bank credit going into asset

markets

and that's very bad because that's an

artificial asset boom

which is unsustainable and if you keep

doing this for a few years

the moment the Music Stops and Banks

stop creating credit for asset purchases

our surprises will not go up any further

but then the late coming speculators

will go bust and then the banks have

non-performing loans they will reduce

lending even to the economy you get a

recession a downturn and the banking

prices because

when because essentially the assets are

the collateral for the loans and when

you have this acid bubble usually as the

prices go up 100 200 and from that Peak

um if they only drop by around 10

percent you have a banking crisis

because you wiped out Bank capital and

that's what's happening loans have to be

paid from bank right Equity so that's

what happened in Japan precisely is that

what also happened in 2008

uh yes that's also what happened in 2008

in fact I warned

um in my book princes of the Yen that

from what I found out and and I met Alan

Greenspan who was at the time hitting

the FED that he was on track to do the

same thing

um and as it turned out as his successor

uh in the US and I warned in the last

chapter and princes of the Yen that

um If the Fed keeps on doing that we'll

get the same thing in the US but this

time much bigger and will lead to a

global financial crisis yeah because

that's what happened in 2008 in in

princess of the Yen you say that it was

on purpose that the Central Bank of

Japan did this purposefully why dude

first two questions on that why would

they do it purposefully and secondly if

the same thing happened in 2008 was that

also done purposefully by our central

banks

foreign yes now of course initially when

I researched this in Japan

um I

you know I had very different

um ideas and I certainly didn't expect

that conclusion to emerge from the

research that the central bank would do

this on purpose

so initially just analyzing the events

um

excuse me um

I thought this must be a mistake a

policy mistake but then I could

demonstrate and more and more that

they knew exactly what they were doing

this was true also for the 1990s when

they prolonged the recession

I had many meetings with Central bankers

and I kept asking them

um why don't you reflate the economy

it's not very difficult it's a post

asset bubble banking crisis it's very

easy to get out I had already published

my proposal

on how to get out all you need is for

the central bank to purchase the

non-performing assets from the banks at

face value it's an accounting operation

inside the banking system

Central Bank of the banking system

together I mean the the banks in the

Central Bank are the banking system

and the central bank had just purchased

these non-performing assets you shift

them from the banks to the central bank

that doesn't lead to inflation because

there's no money injection into the

non-bank economy you're just cleaning up

the bank balance sheets problem solved

no taxpayer money used can be done has

been done in history like in Japan in

1945 after the war or when the first

world war broke out in Europe the bank

of England did this because the British

Banks were bust and they thought oh

we've just declared war on Germany and

her allies not a good time to have a

banking crisis let's not have one we're

buying those non-forming assets end of

story no costs because it's just an

accounting transaction

so it could have been done

and I explained this and also other

policies I suggested you can push money

into the economy by purchasing

performing assets from the non-bank

sector I even wrote about how because

Tokyo doesn't have many parks no it's

not a very Green City well and if you've

got a real estate crisis

um coming and a recession happening and

the banks are bust well why doesn't the

bank of Japan purchase the land

in central Tokyo when there's you know

some company going bankrupt and turns it

into Parks Bank of Japan parks

it would inject new money into the

economy and the central bank there's

basically no limit of course they can

quickly end the deflation they can

quickly

um create demand and have a recovery but

they didn't do it so on all these

proposals they kept saying

um making excuses you know for these and

these reasons we're not doing it

but then some Central Bankers took me

aside and said look you know

um particularly you know over dinner

it's all off the Record and they're

talking look of course we know we could

do this of course any Central Bank can

quickly create a recovery we know that I

mean you can even create inflation if

you want to that's coming back to 2020

in the moment

um so but we don't want to what do you

mean you don't want to well this

recession is really what Japan needs

what do you mean the recession is what

Japan needs

well

um they were saying that Japan needed

structural reforms deregulation

liberalization privatization the economy

was too successful America was

complaining there was huge trade

surpluses how can we reduce the trade

surplus make Japan less successful adopt

this economist advice of deregulation

liberalization privatization

and the trade surplus will disappear

domestic demand will grow there'll be

more consumption and and and you know

that's that's much better we need to do

that to help the International Community

Japan needs to fit in just can't be this

successful you know exporter and

focusing only on exports oh wow and so I

still didn't believe it though when they

told me I mean literally several central

banks told me the story I thought that

must be some kind of

crazy explanation of their mistakes and

so I still worked on that basis these

are just mistakes

but then I had other data sources and uh

just analyzing the bank credit data and

then going back to the bubble in the 80s

because that was

you know that was clearly the cause of

the big recession Japan at a 20 year

recession the 90s and 2000s all

recession depression

but all that followed from the bubble

era of the 1980s the late 1980s that's

the cause so why did that happen

and then I analyzed that very carefully

empirically I interviewed people

and I managed to get the relevant data

and the conclusion was that

the banks were doing this lending for

asset purchases

at an extraordinary Pace enormous

amounts of money being given to any

company to purchase real estate that was

what was driving up the real estate

prices to these extraordinary levels I

mentioned you know

um

it was the banks lending so much but why

were they lending so much and I found

that the loan officers in the in the

bank branches they've been given orders

by

the headquarters

to increase lending and the bank

headquarters have been given orders by

the bank of Japan to increase lending

for asset purchases for Real Estate

purchases

and then I asked and interviewed the

central bank people who in the 80s were

in this job giving those

it was called guidance window guidance

of increased Bank lending Now by this

much by that much and there was huge

numbers so ask them why did you give

this guidance and yeah they confirmed we

did give this guidance it was the bank

of Japan telling the banks to increase

lending for asset purchases creating

that for the bubble

so why did you do that well we were told

by our boss

who was at the time in the late 80s Mr

fukui and they told me on and in fact

the bankers already had told me this Mr

fukui is behind this he is

tipped he was he was actually selected

to be the future governor of the bank of

Japan he's therefore known as the prince

everyone knows that he will be future

governor

and

this of course is exactly what happened

just after my book was published princes

of the Yen pointing out that he's the

future Governor then he was actually

appointed to be that governor of the

bank of Japan but why would he do that

now he actually and his boss the you

know the the in this hierarchy of

Princess

um there is a higher ranking Prince his

predecessor together they had this plan

to change the Japanese economic

structure

um to do what America had been demanding

from Japan and the structural

impairments initiative all these

negotiations with America to essentially

deregulate liberalized privaters weaken

the economy reduce exports and increase

domestic demand to increase maybe

imports from America and other countries

that was the goal and they concluded

you can't do this without a crisis we

need to engineer crisis and that's what

the bank of Japan delivered but it was

true it was done by the central Bankers

on purpose and once you're through that

then you realize how much power these

Central Bankers have because they can

control the money created as the banks

and through that you can move the

business cycle up and down and it's

moved by

the quantity of bank credit and also how

the bank credit is used whether it's

used for asset purchases or whether it's

used for GDP transactions for the real

economy

and they have this power and that power

that is an extraordinary power tool

power unfortunately corrupts and they

have been abusing this power to create

boom and bust cycles and and business

Cycles

and as I want that for in my book

already that the easybeam is being

created to be too independent

the ECB

um was given more Powers than any other

Central Bank it was not accountable to

any government it wasn't accountable to

um any Parliament

and it had all these Powers no public

prosecutor can can search the ECB they

can't be arrested for any crime they're

like above the law and I wrote about

um the danger that this pauses and

they're likely to play the same game as

the bank of Japan namely to abuse the

power create Bank credit driven asset

bubbles banking crises and recessions

and these boom and bust Cycles to

engineer political change as soon as the

book was published princess of the End

by the way

um Quantum publishers.com is the place

to get it because

um and Amazon you don't actually get the

um the original version

um as soon as I published the book

princes of the yen

the ECB did just that it created huge

Bank credit driven bubbles in Ireland

Portugal Spain and Greece

um which you know the expanded Bank

credit by 20 30 40 year-on-year Bank

credit growth all going into asset

markets the same principle

and it's very simple

um system basically with this everyone

is is happy that having capital gains

everyone thinks this is going great it's

a huge boom but as soon as the Central

Bank tells the banks to stop this

the asset bubble collapses and the banks

are bust and then the economies are bust

you basically have a huge recession

that's exactly what we had and they

called it the the sovereign debt crisis

in Europe where basically it was Island

political Spain and Greece and some

smaller countries where the ECB had

boosted Bank Credit in the previous

years for asset purchases massively just

like in Japan in the 80s and now

everyone was busting the banking system

was bust and the Central Bank the ECB

had the key to get out of this and they

used this to get political concessions

like you have to hand over your

sovereignty now we need to have control

over fiscal policy has to be all given

to Brussels and you know the EU and the

ECB have to have all the power so they

strengthened all these powers and the

ECB was then given more Powers after the

crisis this is something I'd also warned

about in princes of the end and also my

my other work work that central banks

unfortunately have an incentive to

create crises because after each crisis

they claim oh it's because we don't have

enough powers and they're actually given

more powers and this has happened so

many times and I want about this before

the 2008 crisis

and what happened of course after the

2008 crisis they were all given more

Powers even more powers

and of course that's what now we're in

the next you know this is like getting

Next Level abuse of this power when we

talk about 2020 and and what they really

want to do now with all this power which

gets really scary

it's really interesting because what

I've always said was that the Germans

figured it out finally I mean there was

World War One there was World War II and

they finally figured out that if you

really want to conquer these countries

you've got to do it financially and that

seems to be what has sort of happened in

Europe in a lot of ways when I was in

Italy for a while the Italians even you

know you just talked to them at parties

or something they say oh yeah you know

we're not really in control anymore the

Germans are really kind of in control of

us you know they kind of have this idea

that they're not really that they're

they're bankrupt or they're economically

not doing well and so they feel like but

that's still controlled yeah Kim that's

still part of the smoke screen though I

mean that's of course what the ECB wants

people in Greece and and Italy to think

oh it's the Germans there they're

insisting on this and the ECB is in

Frankfurt well Germany has zero

influence over the ECB the leading

members of the ECB from Germany they

quit and discussed by the abuse of power

at the ECB

um so Germany as a state has no power

exactly who's really behind this well it

goes back to the people that are that

are heading it

um for a long time it was Mario draghi

who was running these policies before

Trisha who had challenged um at Davos

and the people behind them that put them

into this position of power

um and I mean draghi made it an official

ECB policy to reduce the number of banks

in Europe and Germany has the largest

number of banks most of them

are Community Banks small local

Community Banks that lend only to small

and medium-sized Enterprises and that

was the backbone of 200 years of German

economic success well the ECB was

killing that and that was official

policy there's too many banks Germany's

over banked the eurozone's over Bank

under the ecb's reign which is only 23

years more than 5 000 banks have

disappeared in the Eurozone

and that's been their official policy so

Germany has been just like Italy and

Spain suffering from the ecb's policies

actually that's the reality but of

course they like to hide they don't like

to show that it's really the ECB that is

taking these policies

um it's not any more governments

governments you know with the

introduction of the ECB governments gave

up their power

to this International Organization the

ECP is above all these countries it's

not accountable to any country it's not

accountable to any government it's not

accountable to any Democratic assembly

no parliament in Europe

and they have diplomatic passports for

all the European countries the Eurozone

countries the Euro the ECP currency is a

foreign currency so if handed over the

most important power which is monetary

policy to this external organization and

the ECB sure enough as I want

immediately abuse their power to create

boom and bust Cycles but that was just

another major episode so that's Japan

that's what the ECB did

but in a way this is all just really

preliminary

um events

to what happened then in 2020 yeah and

really even here in the United States

when you talk about where the power was

when the power was given away I mean

when you think of fad I mean it's who

controls fed I mean the governments gave

away the ability to make money the

governments gave away uh monetary policy

so it's no longer even in the hands of

the government they they're not we the

people are not in charge of any of this

monetary policy at all it's just made by

people that are not accountable these

private Banks essentially that are you

know it's just that are the heads

in the U.S actually as you say the the

federal reserve banks are privately

owned they're 100 privately owned the

Federal Reserve Banks now they did

establish in Washington what they call

the Board of Governors of the Federal

Reserve System that's in Washington and

that's sort of the political that

um where

there is the

sort of the appearance is given that

this political influence can be exerted

but essentially they only do the

official policy which is mostly interest

rate policy

and some other selected policies but the

real policy is implemented by the

Federal Reserve Bank of New York they do

the day-to-day quantitative policy the

credit creation policy and the

management of the banking system and the

Federal Reserve Bank of New York is 100

privately owned we saw that in the 2008

crisis that some people thought oh JP

Morgan is getting 20 billion here 20

billion there

um to bail out this and buy up that bank

from the Federal Reserve Bank of New

York and uh the director the CEO of JP

Wong is also director of the

Philadelphia Reserve Bank of New York is

that strange

you know because it's privately owned

his own brother was feedback and that's

of course how the show worked but then

but really all that came to ahead in

2020

and now maybe I should as you mention

the other two

ways in which money creation

um affects the economy so one way is

it's a bad way when you create Bank

credit you create money through bank

lending and is used for asset purchase

and we've discussed that you get the uh

acid bubble acid inflation then a

banking crisis that can be used to have

a long recession if you want to 20 years

in Japan

but there's two other possibilities so

Bank credit can also be used

for

consumption now if you create a lot of

bank credit for consumption then well

obviously there's going to be more

spending by definition

right exactly since 2020 that was the

policy in 2020. so if you create and

inject more money for consumption but

you don't have more goods and services

what's going to happen well prices of

consumer goods must shoot up and that's

what they organize from March 2020 but

before we discuss that let me just

mention the third possibility because we

shouldn't forget that actually if run

properly a banking system can be a great

thing and it can deliver what's good for

everyone

that's I mean politicians should really

be made aware of this we can have high

sustainable Equitable non-inflationary

growth

double digit 10 growth in in almost all

countries is possible without inflation

and without crisis and very stable

growth at that

that can be done how do you do it well

you must make sure that bank credit when

Banks lend is not used for asset

purchases and bank credit is not used

for consumption

if you make sure that it mainly goes

into what is the third possibility in

the redeeming feature of banking namely

for business investment in the

production of new goods and services for

the implementation of new technologies

for making things more productive for

adding value

then what you get is because you are

creating more money when you lend but

this is used now productively and now

you therefore will have more goods and

services of higher value you will have

no inflation you also will have

sustainable income streams to service

and repay these loans so you will not

have a banking crisis right and that is

really what you need to do and that's of

course now and I can see

um from you know

um I can read off your face that you you

immediately see that this is what Japan

did this is what Korea did this is what

Taiwan did what China China did in this

high growth phase they essentially used

the window guidance tool where the

central bank

monitors Bank credit on a high level not

detailed Which con you know which

companies getting the money but which

industrial sector and is it for

consumption is it for asset purchases is

it for business investment and they made

sure that bank credit was used mainly

for business investment and that's how

you get 10 growth 15 growth low

inflation and very stable and Equitable

economic growth that's how you can

expand an economy make um small and

medium-sized firms

and also you know the the middle class

uh well off and have a basically what we

consider economic success it can be done

is possible but the central planners

unfortunately are not choosing to do

this they're doing something else right

and that makes sense it makes sense that

job creation would be the thing that

actually sustains the economy doesn't

cause inflation

um it's much a much healthier Society

for sure but they so so question about

that because during the during 2020 they

not only did they give people money

right they gave everybody a bit of money

to try to supposedly sustain themselves

or whatever but they did create those

PPP loans right and they gave those to

businesses in order to maintain jobs now

that sounds a bit different than what

you're talking about because you're

talking about growth loans for growth is

it the same concept if you give loans

for just stick around don't don't kill

jobs don't go anywhere yes

exactly that's not very productive I

mean I mean most people realize that

what happened in 2020 was not very

productive when these loans were given

to companies but actually that's still a

drop in the ocean there was a much

bigger problem

and that was really what what created

this inflation namely

um the central banks adopted

the type of QE I was recommending for

Japan for a deflationary situation with

a bust banking system and money supply

Contracting

my recommendation was Central Bank

should purchase the non-performing

assets from Banks and the Performing

assets from non-banks that where you get

the bank balance sheets cleaned up and

by purchasing assets Central Bank

purchase of assets from non-banks you're

pushing money straight into the economy

that's what they did in March 2020 but

the problem was that bank credit was

already growing at five six percent and

in most countries Banks were doing fine

Bank credit was expanding there was no

deflation

but they were using a tool designed for

a deflationary contractually situation

and they expanded money supply even more

so we had record post world record money

supply expansion and this was done by

the central banks purchasing these

assets they hired the likes of BlackRock

to

um

to do this for them and just go out and

purchase assets

and they used central bank money to fund

this now that is direct money injection

into the economy and it was given to

essentially

um asset owners and a whole lot of rich

people

owners of some big businesses and

financial players made a fortune by this

trillions of money being pumped to the

economy directly from the Central Bank

through this process of purging assets

from non-banks now they did this

globally by the fact that it was so

coordinated it's a very specific policy

you know that is very rarely taken I

recommended it for Japan in in 1994 1995

for 20 years the bank of Japan has said

oh we don't know what you're talking

about this is not possible we can't do

this March 2020 come March 2020 the bank

of Japan knew exactly how to do it and

every other Central Bank in major

Central Bank did it at the same time

and of course that proves that it's not

a coincidence it's not a policy mistake

because it's a very very specific policy

and by coincidence they all took it in

March 2020 so clearly

they knew exactly what they were doing

but that was the policy to create

inflation if you do this you know for

sure you're going to get inflation

that's why I want from

May 2020 onwards when I had the data

they are creating significant inflation

that's going to happen 18 months later

and that's exactly what happened so it

was a central bank policy Choice like by

the way already in the 1970s when most

people think all the 70s that was the

inflationary decade that was due to OPEC

and the oil embargo and all that oil

stuff and the war in the Middle East

but really it's not true already then it

was also the central banks doing this if

you look at the data

why would they do this

what's the point I mean I hear you

you're saying they're trying to create a

crisis because when you when you create

a crisis then you can affect change what

is the change you think they're trying

to do right now to us

yes well actually we have to look at at

the picture the big picture of what has

happened since 2020 and and

on the one hand the central Bankers have

come out since 2020 very quickly already

in March 2020 with some public

statements about what they want to do

and surprise surprise they want to

introduce CBD seeds

so that is clearly one goal

um now in order to introduce Central

Bank digital currencies

what they need is digital IDs

and clearly they've been working

backwards from their goal how can we

introduce cbdc's we need an excuse

and then work backwards what do we need

for that we need digital IDs well again

how do we introduce digital IDs with

another excuse to do that well the

so-called pandemic

delivered a great excuse well at least

they thought I mean it wasn't really

very convincing but somehow they argued

that you needed to be injected with this

experimental substance

and and then somehow you need it in

order to enter a any restaurant or shop

you needed digital ID

confirming that you've been injected

when of course it was very quickly clear

that this was not this injection was not

actually slowing transmission or

preventing illness and had a lot of

risks attached to them so

so the justification wasn't very strong

but they definitely pushed these digital

IDs to back so-called vaccine possible

it's very hard and again in a

coordinated fashion so you see where

this is going

and the goal is actually on the monetary

side that is the the prize that they're

aiming for they're aiming for

cbdcs

connected to digital IDs

and that means we're talking about the

most totalitarian control system in in

in human history

because this is a control tool that not

only gives you as a controller complete

visibility of what everyone is doing

every transaction the money is moving

from where to where you know everything

but the monitoring is only one aspect

and of course you can use that

information for your purposes if you're

a controller the central planner

but actually the these cbdcs are

programmable

and you can use

um tools algorithms

Big Data algorithms which they sell as

as artificial intelligence in order to

have rules about who can buy what for

what purpose at what time and at what

place where and therefore control your

movement and control all your activities

and oh Kim you were critical of central

banks recently oh your cbdc is not

working today is it or you're trying to

buy this book or you can buy another

book but not that one that's a bit too

critical of central banks

so you can you can see this I mean this

in history and also the human history of

dictatorships there's never been such a

powerful control tool as they're about

to introduce and that is the big price

they're aiming for I think

that is

really scary

um

what can we do do you think to prevent

this from happening

are you a proponent of going back to the

gold standard or uh I mean what what

should we be doing to prevent this

because this is very frightening and

you're right it is an it's a total

complete way to control people they can

shut down your bank accounts at any time

we saw them do that with the trucker

Convoy in Canada and we saw that

precisely precisely

so

exactly so we'll definitely use cbdc's

to shut down opposition people want to

demonstrate well we're you know suddenly

they can't buy food

so

um what can we do well you mentioned

gold

um I like gold Going Back to Basics is

always good actually when you go into

the monetary history

the old the ancient monetary systems

were not even based on gold and silver

that came later the oldest are simply

Credit Systems of mutual records of

credit

and you can see this easily being

recreated in any small village you know

you go to this Village Pub

um and you don't have cash with you and

they know you okay we'll write it down

you know that's ultimately that's how it

starts people trade with each other and

they just write it down well you just

need something more visible than that

um there was a very elaborate system in

England for hundreds of years based on

tally sticks

where you you make notches and they

could be

um they could be split in the middle of

wooden sticks and one was kept at the at

a central place

um the the foil and the stock would

circulate because it was a stick comes

from the German word for stick stock

that's where stocks and shares comes

from and then if you have doubts you can

always check whether the two parts of

the tally the split tally match if they

match they tally it tallies and if they

don't you were foiled because the foil

didn't match the stock

and they had a had a big procedure for

basing their whole accounting on this

um where a lot of the financial

Expressions actually come from the

system at the exchequer in England

and there was a big chess board to do

the calculations that's where the word

exchequer comes from and also checks

when you pay with a check and there was

um a role which is actually from Vellum

which is like cow skin

um where you where they took the nodes

uh it was the counter roll comfortable

in French the the Norman spoke French

when they introduced this is where the

word control comes from the audit system

comes from

so we could have a basically um

you know somebody in every village could

have a record of key transactions

and you could have a credit based system

from scratch very very uh simply it

could also be run on an Excel

spreadsheet if you have electricity but

it's probably good to have it on paper

if if electricity gets shut off or

there's a power cut

um and of course you can use gold or

silver as the as the as the measures of

the units of account if you want grams

of gold and silver and so basically you

could go back to a system that's

anchored to gold and silver

and then you kind of credit on top of

that which is just a local record of who

owes what and there's your monetary

system now of course that is in effect

in place when you have a community bank

or you have several small local

Community Banks that only engage or

mainly engage with the local community

which is really my recommendation for

the for the interim we still have a bit

of time because the central planners

have realized they can't force the

cbdc's on us just yet and they've also

it looks like last year they've decided

to take the slow road to cbdc's which is

the so-called wholesale cbdc that's the

Chinese version of cbdc's whereby the

banks are not yet driven out of business

uh retail cbdc's as you mentioned that's

ultimately the Central Bank competing

against the banks

it means the the central bank will offer

an account at the central bank for

everyone

and when they do that then of course as

soon as you have a crisis everyone will

shift their money from the banks to the

central bank and then the banking system

is finished that's ultimately what they

want because you know what what do the

central planners want well they want

centralization of that power

but at the moment the banks create money

they create most of the money so they

ultimately it looks like they want to

compete against the banks that's what

they're saying when they talk about

cbdc's and they will you know they have

the power to drive the banks out of

business if they introduce these retail

cbdcs

but in China where they they had a

Soviet style system with one Central

Bank and no banks

and that seems to be what the central

plans want to reintroduce but in China

they

created thousands of banks only you know

40 years ago in the last 40 years

thousands of banks were created and

that's how China was so successful

because a decentralized system with many

banks creating money and and you know

small Banks lending just small firms

because big Banks don't lend to small

firms that's how you get economic growth

that's how you make sure small firms and

small mum pop shops are doing well if

you've got small local banks that's how

China is successful so China refused to

introduce

the retail cbdc's because that kills the

banks they introduced what is called

wholesale cbdc's where the Central Bank

digital currency can only be obtained

through a bank and therefore the banks

are safe

it looks like they've conceded that and

in Europe and America when they

introduce cbdcs will also be the

wholesale cbdc's which is good news that

means we have a bit of time to establish

more Community Banks and anchor them in

the local community and then we can also

prepare

um

basically put in place systems for

when they want to shut down the

Community Banks and have Central

um you know retail cbdc's then we can

switch to a local system that is using

the the local bank but is linked to gold

and silver as a as a numerator and that

can work very effectively

yeah it seems like the pandemic might

have shown them that we're not quite

that easy to control

yes there is hope there is hope yeah

yeah so that that is I think the hope

there is that we can push back on this

and especially awareness I think the

awareness of the world economic Forum

the great race at what central banks are

doing really just kind of saying we're

on to you right we're on to what you're

trying to do to us that you're trying to

consolidate power control us through

digital IDs control us through digital

money uh get us to the point where you

know yes everything is that's why

they're saying you will own nothing and

you'll be happy because all of that

would be centralized somebody else would

own it we wouldn't uh same thing with

the banks you know no Community Banks

suck them up because it's all

centralized you don't you know none of

that is is for the little guy it's all

for the big players and then they

control all of the rest of us like

puppets it's really

um it's great that we are becoming more

aware that we're talking more about this

and then hopefully by doing that we will

have some Rogue political leaders who

will say we're not falling for it and

we're going to set up some systems to

protect ourselves to isolate our states

or our communities in some way that

seems to be the Hope moving forward

you know and as you mentioned to small

Community Banks and now I'm thinking I

got to go get a small Community Bank I

got to go start banking at a credit

union or something yes you should you

should you should yes and I'm also

working to set up new Community Banks so

if any of your viewers wants to join get

in touch with me

professorwerner.org is a website where

I've got also my work and my scientific

articles there there's also an email to

get in touch or follow me on Twitter

scientific econ or Professor Werner

great well thank you thank you so much

for having this conversation and

enlightening us a bit on this very scary

ominous future that we may be heading

towards

and really just the power of central

banks and what they've been doing and

the fact that we can probably blame most

of the crises we've had on them and what

they've been at you know their their

ultimate goals of trying to control us

it's very scary yes and we need to hold

them to account which which we can and

we should and for that more people need

to understand how the system works yeah

and unfortunately economics is not being

very helpful because they suppress the

reality they suppress the truth but I'm

trying to have this scientific economics

which is empirical database and with

that you can show the facts and and we

can try to hold them to account

because the people are The Sovereign and

it's not the other way around

we got to keep it that way that's for

sure or at least gain it back if we've

already lost it a bit but Richard thank

you so much for being here really nice

chatting with you

thank you it was really good to speak to

you and thanks for having me thank you

very much