This is one of those interviews that simply must be watched in its entirety. It’s long, almost 3 hours, but take the quiet time to watch and absorb the information provided by economist Professor Richard Werner.
Werner discusses something absolutely vital to understand about the nature of economics and the banking system that underpins it. You have often heard me say “there are trillions at stake” when describing the elements aligned against President Trump. Well, Werner gives context to what lies behind those trillions.
Nine years ago, as President Elect Trump won his first election, I wrote about the future of economics and the potential if a Main Street monetary and banking system was created. {GO DEEP} Richard Werner discusses the specific issue of how credit creation by regular banks actually creates money. He’s the first person I have seen speak who really gets it.
There are distinct differences between banks creating money for asset purchases (inflation), consumer purchases (inflation) and GDP growth (Main Street expansion). He simply nails it, and that is why he was put on the CIA radar.
When Werner speaks of the need for two distinct banking systems as a solution to the “inflationary” impact of money created for asset purchases vs GDP growth, he is specifically highlighting the difference between Wall Street money and Main Street money. This, in the largest measure, is exactly why President Trump and Secretary Mnuchin created the dual banking system. This is what led to the global pandemic as a tool to stop President Trump.
I cannot recommend this interview enough. However, don’t sell yourself short. Find a quiet place, quiet time, and take notes as you listen to Richard Werner outline the true and unspoken nature of how money is created.
When you understand what Werner is saying, everything the FED and Central Banks do starts to make sense. WATCH:
Behind what Werner is explaining you will find the motives to oppose President Trump. Werner doesn’t draw the connection to Trump’s policies, but when you hear him outline the history and the problem you will get it.
“This, in the largest measure, is exactly why President Trump and Secretary Mnuchin created the dual banking system.”
Richard Werner’s “quantity theory of disaggregated credit” represents an important contribution to post-Keynesian monetary theory, particularly in its empirical emphasis on the differential macroeconomic impacts of credit extended for real economic activity versus asset market speculation. By advocating for a bifurcation in how credit is created and allocated, Werner challenges the neoclassical assumption that money is neutral and that all credit creation is fungible in its economic effects.
It is crucial, however, to distinguish Werner’s theoretical propositions from certain popular narratives in U.S. political discourse. While comparisons are often drawn between “Wall Street” and “Main Street” finance, and while the Trump administration enacted deregulatory measures that eased constraints on community banks, these developments neither created nor substantively restructured the long-standing U.S. dual banking system.
The dual banking system in the United States—federal vs. state charters—dates back to the National Bank Act of 1863 and reflects a regulatory pluralism rather than a purposeful disaggregation of credit based on end-use or macroeconomic function. Werner’s call for a functional dichotomy in credit creation implies a more granular policy intervention: regulators would need to distinguish between credit for productive investment and credit for speculative asset acquisition, potentially requiring new accounting classifications, risk-weighting structures, or credit guidance mechanisms.
Werner’s work thus raises an important empirical and normative challenge to DSGE-based monetary models and offers a promising avenue for integrating financial structure more explicitly into macroeconomic policy design.
More easily done than said: renew the Glass-Steagall Act that kept seperate the investment savings of Main Street from the commerical speculation of Wall Street. The big boys couldn’t gamble with Grandma’s money.
It is one of the few things done in the FDR era they got right. It was undone to allow the creation of the euro, and by extension the EU to manage that euro – in short, our Deep State conquest of Europe, after which they opened the floodgates of Replacement migration.
Not a perfect nor complete solution, but a huge unwinding of the web the Deeps weaving around us.
We have Glass- Stefan lite with the Volker Rule in the Dodd Frank Act.
It is really lip service.
The present way of money creation is banks and central banks plucking it out of thin air, and then lending it out for compound interest. Almost 90%+ is by the banks lending money to borrowers, and the rest by the central bank doing the same to the government.
This is absolutely the same as MMT – except in MMT, this act of plucking money out of thin air and backing it with vacuum is done by the government directly, without the banks, or the central bank, and interest. That is why the banksters are crying hoarse about it.
Both are equally bad in treating the common man as the milch cow. The MMT is slightly better as it reduces the interest component on the common man.
I do not foresee any return to a true gold standard with free exchange – like it was between 1878 and 1933. But gold will become the commodity to settle the international trade deficits with.
The greatest question before the 20th Century Economics was “Should the Medium of Exchange and Store of Value be the same?” and the answer was “No”; it gave birth to the century of fiat currencies.
The greatest question before us is, “Who should have the right to create money in an economy, and how much money should they create?”
For anyone who enjoyed Werner and wants to further expand their understanding of central banking’s powers, I recommend
https://rumble.com/v1ows19-special-report-the-iron-bank-is-bis-sovereign-immunity-the-secret-sauce-beh.html?e9s=src_v1_s%2Csrc_v1_s_o
Pick up the recording at 11:00 to jump right into the meaty stuff about the sovereign immunities enjoyed by the Bank for International Settlements, which is the central bank for the world’s central banks.
The BIS is the head of the hydra. Created for WW1 the same as central banks like the Federal Reserve were created for WW1, to create a war economy for the world. Werner gets right to that point too, by the way. I will be watching, thanks.
The reason today’s trade war is about to come to a head is now China offers the CIPS, a superior alternative to BIS’s SWIFT.
Instead of being debt based – us paying income taxes so we can pay the bankers interest – the CIPS system is resource based, which allows the return of Ricardo’s “comparative advantage”, fair trade amongst nations instead of that collectivist tool Thomas Friedman’s “world stomped flat”.
This is an extremely compelling interview!!!
Yes! He’s very easy to follow and downloads a lot of info.
Richard Werner is a very intelligent man and engaging speaker.
i remembered that the evil John McCain helped destroy our Savings and Loans Banks. That was before he condemned US to Obamacare.
It was all of the government that pitched in to kill the savings and loans. Inflation exploded and interest rates rose to 20%. S&Ls that had loaned money at 6% but had to borrow more at 20% went under by the thousands. It again was a Government induced trauma.
I wonder if Werner has been or will be a visitor to the White House?
I hope so, but I also think the DC Swamp would do the unthinkable things as their response. So, I hope Trump would know better than to do this visit with media and/or any Government employees present. The CIA would research exactly who and how and such a meeting would be very dangerous for both of them. Only a third party could even try to arrange such a visit and the White House would be a terrible venue to use. Trillions would be at stake. A super majority of actual politicians would have to be smart enough to support Trump on this and where could anyone find such politicians?
Thank you SD for posting this very educational interview. Needed to ‘rewind’ several times to fully understand.
FYI, Jack Cashill wrote a book, ‘Popes & Bankers’ in 2010 {A cultural history of credit & debt, from Aristotle to AIG}.
Jack Cashill is a GREAT investigative reporter. If he decides an event or a situation is worth investigating he leaves no stone un-turned.
Thankful I have the time to listen to this more than once.
This interview was amazing; highly informative & downright scary at the same time. There’s an awful lot of information to absorb, and I’m not sure that can be accomplished with just one ‘watch/listen’.
Also, Professor Werner is a brilliant man; very well spoken; personable & able to tell a compelling tale in a smooth-flowing, forward-moving manner.
He manages to tie all the threads together, even after taking some detours. He quickly finds the story’s path once again — without missing the beat of where he was. Just having the ability to do that takes great skill.
Thank you Sundance for providing this interview for us, and encouraging everyone to watch/listen.
Yes! Trump calls this “weaving”, it does require skill
Also, a thorough acute knowledge of the topic.
What can be accomplished? … Share this information and ask them to share it. “Informed and virtuous citizens would be better equipped to understand their rights and responsibilities, thereby preserving the republic”
Listened to the entire 3 hrs. Don’t think I could detest people like Powell anymore than I already did, but now see him as just plain evil. Makes one feel like we’re really at the spinning end of a yo yo. Since Powell and his uppity trash at the Fed could ignite prosperity for the middle class by greatly reducing rates but are choosing not to do so, how else could you see them as anything but evil?
$$$$$$$$$ directly in his pocket. Trump figured out the cost of every point to the Gubbermint between 3-4 Billion is my best recollection.
Agree. So, Trump is right.
That Powell does not give Trump what is desired is a sure fire indicator that Trump is not his boss.
Trump should remove him but all the other “qualified persons” also work for a different boss.
Too bad Trump cannot leave the position vacant.
Will take Sundance’s word for it, as to understanding the guest’s conclusions; but really cannot stomach Tucker Carlson so will pass on listening or watching the video.
I love Tucker.
Not sure if this passes as “judgement” -to me it’s a plain-as-day observation –but Mr. Carlson has turned bitter. Perhaps ‘turned’ is an assumption on my part, but his bitterness is demonstrable and has been for some time now, a period that seems to coincide with his departure (read: firing) from Fox News.
Also, and fyi, I did watch the entire interview. Not sure what Sundance’s point was except to highlight the edification of how new money is created by the banks. Aside from this, which I was already subconsciously aware of, the society that this economist puts forward via his new money policies seems like feudalism 2.o (IMHO 🙂)
Thanks for the recap. Didn’t think I would miss much but do respect Sundance’s recommendations.
Tucker rarely speaks. It is worth listening to this man, he has critical information for all of us.
Tucker did an excellent job with this. He never tried to switch the conversation or interrupt Werner’s explanations. I am not usually interested in the subject matter of most of Tucker’s interviews, so I don’t usually watch him anymore either. But I have always wondered how the new money is actually being created. So I am glad I spent the time to hear it all. It actually makes sense to me.
Werner is asked what is the relationship between Central Banks and War…
And suddenly a meme I found a while back makes sense.
Of course it would take me a bit of time to find it, but here is the meat of it, a quote from Gutle Schnapper Rothschild, (1753-1849), wife of Mayer Amschel Rothschild:
“If my sons did not want wars, there would be none.”
And there it is in a nutshell, the same now as then.
We are simply irrelevant to sinister forces who see themselves as the all powerful, rightful owners of this world. It is theirs to manipulate and control., made manifest in the odious phrase of Klaus Schwab, “You will own nothing and be happy.”
Which all of us more than half suspected; but now, thanks to Professor Werner, we can see clearly in all their hideous, sinister, immoral darkness.
What an incredible class he has delivered on the ongoing machinations towards war and One World Government and the players within our own who surely were never foreseen by our Founders. A moral nation we are not, dissected and documented here by Werner.
So, so glad this was posted.
Bet the CIA et al are not..
Here is an example. Government let the water storage tanks go empty, government let homeless light fires all over, government did not preposition fire trucks in the area, government went to Africa, government, ignored fire warnings and the Palisades burned down.
Government bought some of the land and will build 100 million dollars worth of low income housing. It is the Government’s Fault. Not the Fed. Not the Banks.
It is the fault of those who control the government. The Fed was begun on Xmas eve, by the oligarches in 1913, and given power to control the banks. Which is what they do. PDT has made a move to soften that, but it is not enough to protect us. The banks have been regulated to have no power,,,except the ones owned by the oligarchs. We the people did not keep what Ben warned was difficult to keep.
So, it is our fault. Honest, hardworking people make a general assumption that most people are honest and hardworking. In this world, that is not so, and it does not take a great number of greedy ones to take over. Now they have the technology to make it happen. It will be great struggle, but it appears that we are in the beginning of the end times, and it will appear that God’s people will are losing, and they will be, until He returns and sets things up as it was in the beginning.
Ad rem, I just posted a lengthy note which seems to have found its way into the bin again. Could you please check, sis?
Thank you!!! 💕
I am no fan of Tucker, but THANK YOU SUNDANCE, for calling such direct and focused attention to this interview.
I encourage all to watch it the way Sundance has described. The amount of true education, wisdom and knowledge gained from watching this is likely the most I have gained from a simple 3 hours invested, than from anything before.
This was more illuminating and informative than pretty much anything else I’ve ever tried to use to inform me on these topics, categories and questions (ones raised in the interview).
Is this similar to China having two currencies, one for internal use by Chinese citizens (and largely unavailable for everyone else) and one for foreigners (I assume for currency manipulation shenanigans)?
Wow! Thank you for recommending a full listen. It was so eye opening!
Those mother F—kin’ bankers and their prostitute politicians!!!!
A curse on them all!!!!
Well worth watching 2x all the way through. Thank you Sundance. Extremely educational.
For the grumblers about Tucker, he hardly spoke, so tune in to listen to Werner with deep attention.
Explains so much about all the manufactured crisis we’ve experienced the last however many decades, AND the manufactured crisis that my parents, and grandparents, went through. As Sundance has often said, we are in an abusive relationship with our government.
It also explains how the Middle Class keeps getting whacked while the governments grow in their lavish settings.
I really hope we get better Fed management. But, you know, The Powers That Be will attempt to keep the status quo.
This should be interesting.
And Trump is absolutely right about lowering interest rates. The Fed is a liar.
I don’t want the Fed to get better management.
I want the Fed to be ended.
What did Werner say about interest rates? Interest rates do not control the economy; interest rates are controlled by the economy. When the economy is up, the interest rates are up. Likewise, when the economy is down, the interest rates are down. Just the opposite of what people think. Maybe I misunderstood him.
I have not listened to this yet. But I will probably on a quiet Sunday. I always understood it was OUR signatures on the loan that created the money. Sweat equity. We owe the money to ourselves but banksters steal it claiming they printed it.
No! The creation of the money did NOT entail, that is, create, the loan. The fed’s used the excuse, the pretense, of literal money creation to create the loans.
The fed create the loans and not the money printing.
The fed is a fraudulent scheme foisted on us by bought and paid for corrupt b@st@rd politicians.
Actually Richard Werner said that the mere creation of any loan – once the borrower signs the contract – is what creates “new” money out of thin air. That happens at all banks, not the Fed. We don’t get loans from the Fed. We get car loans, mortgages. tuition loans, Construction loans, renovation loans, start up business loans, business expansion loans, etc. from our banks – local or national banks.
I am not talking about the loans for business. I am talking about printing money, the printing of dollars.
You are WRONG!
A nation does not go into debt by printing dollars. With the fed, we do. This is a fraud.
I am assert nothing about loans to individual from a bank. That is completely different and irrrlevant!
The actual “printing of dollars” is strictly a question of the market demand for dollars. It’s just a liability like bank reserves.
They are not printing dollars because of market demand. They are printing dollars for asset acquisition which is driving up inflation. They are NOT implementing reasonable policy.
That is a bunch a crap.
And, printing money does not put a nation in debt! The fed’s did that.
From my understanding, Werner does not see “reserves” or other high power money as having any influence on a bank’s ability to initiate loans (and thus create money). It appears it is this assertion that draws criticism.
I agree with your assessment of Werner’s assertions. And after listening to the entire interview and hearing him restate that assertion multiple times from different perspectives, besides also citing several prominent economists who historically also realized the same truths, but who later then distanced themselves from that truth as they became more embedded in and protective of the banking industry’s secrets.
Two hours and forty minutes just wasn’t enough time for Prof. Werner to address everything impacted by the apparent misinformation that far too many of us have absorbed and thought true about the western banking system.
Defang and defund the fed.
I am grateful to UTSA professors Ken Weir, Keith Rothschild, and Mr. Cooper (Economics, Finance, and Finance) for insisting the Fed and Volcker were wrong and why. That was 1982-1985 when I had the privilege of earning my BBA in Finance and Economics through their vision and integrity.
What Werner describes so succinctly is exactly how I learned to detect BS. I have tried to explain this to many and see a large percentage of this logic and reasoning in Sundances astute observations describing the difference between “globalists” and nationalist monetary and economic policy.
Yes, this was worth the whole 3 hours!
Tucker you must interview Greg Manarino on central banking follow up!!!
I watched the whole thing.
What was missing from the discussion is WHY governments and banks don’t want to limit lending to only productive business investment.
Governments exist for one overriding purpose – to redistribute income and buy off the unproductive masses to prevent next week’s riot.
Much of the lending for consumption goes to people whose only “contribution” to society is to squat more people into the world and thus create more mouths to feed. They produce nothing of value.
If banks stopped lending for consumption, a lot of poorly skilled people would probably starve.
The economic success stories Werner cites, namely the Asian Tigers, are not cursed by diversity. They have very few unproductive lumpen scum dragging down the economies and straining the resources.
This interview will push astute listeners to the importance of the GENIUS act and what you will begin to witness over the next 18-24 months with stablecoins
So here we are with Trump making enormous amounts of capital available as part of “trade deals”. Is this not an end run around the Fed?
So my iPhone gives me this interview in Japanese…..even when I go to YouTube…..or go cold search it……other videos on the 1st page of site are in English…..5 of 6……
I’ve checked my settings language……English……
It seems to happen on more frequent occasions……
Suggestions…..?
Found it……
Go to full screen…..
Click on gear……
Change Quality from auto to 360p……
In English now…..not Japanese.
Wow, at the time of writing this reply, there were only 297 replies.
Indicative of its length maybe? , but I’d agree with SD, this is a must listen.
Thanks to R Werner for his articulate dialogue and Tucker for letting him elucidate his findings.
I found that the scales fell from my eyes and the once dark, murky issue of boom and bust and so much more disappeared!
Excellent. Thank you
Tucker. I haven’t watched him in a while. Anyone else notice how ‘rosy’ and puffy he looked facially? It appears he has gained quite a bit of weight (or else meds??). He had his arms crossed in front of a rather sizeable abdomen for the entirety of this 3 hour interview.
It took me three days to listen to this on my ride back-and-forth to work, but I feel like I’ve learned fivefold what I knew about economics and banking. Somehow we need to protect this man from assassination. That’s the first thing that comes to mind. Second, Trump needs to bring him to the White House, so we can figure out how to use what he knows to better our economy here in the USA, especially for the middle class.
Probably took me 4 hours to get through that. 11 pages on my little notepad filled with notes.
Interesting podcast. I always thought that Quantitative Easing was Krugman voodoo economics. But RW seems to indicate that it is a mechanism for maintaining banking health independent of loan quality. But the key is it should be only for loans intended for ‘productive’ purposes.
I would love to learn more about this.
I have a bachelors degree in finance, a MBA, and employed in the real estate and finance industries for 25 years. I was never taught this educationally or professionally. I left this field in 2021 because I knew the system was rigged but did not know the fundamental reason why until Professor’s Werner’s “bank credit creation” explanation. End the Fed!!
Obviously, our current university level training in economics lacks rigor. We will pay dearly for this willful ignorance. I only wish Sherman had provided greater clarity to his final or 3rd level of quantitative easing, i.e., issuance of treasuries to avert a fiscal collapse.
Someone disagrees:
https://cepr.org/voxeu/columns/banks-do-not-create-money-out-thin-air