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.
So if you borrow to buy a house in US that is already built, that is inflationary, but if you borrow to build a house, ( employing US labor in US) that isn’t?
The banks creating money via loans is inflationary. The loans are a separate set of books from the deposits and the deposits have nothing to do with the loans.
The houses and other assets are perpetually more expensive because more money constantly is injected into the money supply and it never goes the other direction. This is done by all the banks, regardless of size.
The evil trick is: wages never keep up with inflation. So even though wage earners make more dollars, the amount they make never keep up with inflation.
The hedge is: Work hard to acquire assets because assets are the hedge against inflation. And actually make inflation a profit center when managed well.
But they tax us on the inflated value of our assets. Until one day they have inflated us right out of our paid off homes.
If you’re relying only on your one home as your asset, that is not enough. One must acquire multiple diverse assets. My last sentence is a point to get people started on a solution in the system as it exists if they’re in a position to do so. It takes a lot of self-learning, sacrifice and work.
My take on the info presented is that ” they ” will change the rules to control your ” assets ” . The system needs the recommended changes. Excellent class on deep state financial operations and process for changing the existing control… coincidental timing to Pres. Trump’s efforts???
You are correct Mrs. Sunshine (I love the name!). I just retired and feel good about maintaining my lifestyle because I own a diversity of assets-investment real estate, stocks, mutual funds, gold and even investments in two start ups (though one of those isn’t doing so well).
The problem with the current system is that at least 50% of the population have NO inflation protected assets and the next 30% only have their homes. The system is designed to increase the income and wealth gaps.
Trump is trying to change that and therefore must be destroyed.
If you have no debt on the investmet RE then it may last a little longer, until they tax the profits to the point that you have no advantage, Stocks will only be good as long as the companies are in the good graces of the oligarchs, same with mutual funds, and remember FDR took everyones Gold in the 1930’s, and the start ups will only last as long as the the GreedyOnes decide.
It’s kind of surprising that California has a cap on property tax on your primary home much like Florida. So, when you buy the house the purchase price sets your FMV and there’s about a 2% cap on the amount that the county can raise your property tax. It’s not perfect but compared to New York and New Jersey it’s a miracle! In eight years the value of my house has doubled but my taxes have gone up less than $1,000 since I bought the house.
8 years in AZ house doubled and property taxes increased by only $100.
30 years in our home in Northern Utah. Our home value has increased by 5 times and our property tax has more than doubled. Our undeveloped property tax increased from $5 to almost $200 also.
Many think the Palisade area fires were allowed to happen to reset the tax base.
Rich people want to live in beautiful, private places; oceanfront is their claim to ‘having it all’……..
The fires of CA have always been to the advantage for the ‘rich’ and detriment of the poor and working classs.
God Help US
Fires, like wars, are always profitable for someone!
Oh wow
Your house is only an asset when you own it free and clear or sell it for a profit after you deduct all expenses paid while living in it.; with increasing taxation you will always be paying on your home, you will always pay increasing insurance rates as the value increases, too. Fees for upkeep rise, need a new roof?, all eat up your asset of ‘owning’ a home.
In other words, with the economic and monetary system – The FED – you NEVER own your assets. Main Street Economics has become enmeshed in government and business via taxation and fees for services. It’s no longer ‘personal’ property ownership…….it’s a partnership til your death and even beyond!
God Help US
Freedom is never accomplished monetarily! Even winning the lottery is taxed beyond comprehension!
Living free off the land is not possible.
I’m am free to write this, though!
Every state should have a prop 13 like Cali. They passed it in the 70’s when inflation was rampant and people were getting taxed out of their homes.
It has an additional benefit in that the neighborhoods improve as the years go by. People tend to improve the homes they live in, rather than move. It is often much more cost effective to add onto your existing home (and maintain your lower tax basis) than it is to buy a new home.
When you get older, you can size down one time without losing the tax benefit. That allows the market to keep churning.
They changed it recently … not sure exactly what they did.
What happens when you sell? Will new owners get blasted with much higher taxes?
Yes. The purchase price is the new ‘value’, taxed on that new value
Yes, and that is the source of much whining about how the long time home owners aren’t “paying their share”. But it ends up being fair for reasons too long to discuss here.
It works without gouging the buyers because the seller has to set a price that, in effect, takes into account the tax payments.
Besides, it’s 1% of the purchase price. Show me any state that has one lower than that and I’ll be surprised.
The beauty is you never get a huge jump, just 2% per year of the cost basis, which does add up over 30-40 years.
Exceptions are the bond measures added to the property tax, schools (never ever seem to have enough$), utilities, etc. and then the schemes to annual FMV calculations on unrealized “gains”.
Yep that’s how they get you. But bond measures are much harder to pass so it helps somewhat.
School measures are the worst because parents of young kinds always vote yes on the school bonds.
I think they should do away with property tax and go with a system where everyone pays in for services, including renters and visitors.
What would that look like? A universal sales tax in addition to the myriad income, consumer taxes and “fees” for every aspect of living. They even charge fees for the courtesy of paying! It’s nuts. And to have clarity, the big gov “civil servants” are so darn special they can’t behold not having their specialness or ever increasing out of scale salaries /benefits /exemptions versus the serfs who pay; the state & local “budget” grows and when they overspend ..or don’t spend what the bond was for.. aye, no worries fresh bond measures tap on and there is no reasonable measure of frugality. Taxed enough already !
If revamped properly, the counties, states and Fed government would provide a budget and citizens could see online where every dime of that budget is spent. Every invoice, every check. Every contract. That would severely hamper the rampant fraud and contracts with ridiculous charges that cover up fraud and kickbacks, etc.
I’d like to see it done with sales taxes and a flat tax to every resident. That way everyone pays, not just homeowners.
The sales tax would assure the rich pay more (buy more), the poor pay less, and that the tourists, visitors, illegals and others chip in to cover the additional costs associated with more people present requiring more services like police, etc.
But you make a good point. If not done properly, it would just result in paying more sales tax along with all the other fees.
But if they had to raise a flat tax, then the local gov would need to show exactly WHY it needed to be raised.
Capital Gain can be a tax on inflation.
A building, whether it be your home, or a commercial building to operate a business, is an asset.
A building requires upkeep and maintenance. Taxes are assessed based upon value. If you borrowed to purchase it, you paid interest on the loan. You paid insurance to protect against loss. A building is an expense.
A building bought thirty years ago may likely be worth four times what you originally paid. If you want to sell it, unless you purchase another building of equal or greater value, you will owe capital gains tax.
If you made no improvements to the building and it is essentially the same structure you bought thirty years ago, is it worth four times as much or is your dollar worth a quarter? That is what I believe you are saying-coastermomohio- is a tax on inflation.
Income taxes of all stripes need to stop.
Lincoln argued that the slave should be free to eat the bread he earned from the work of his hands. Or, we might say the fruit of our labor. How is this different than the God-given right that is worded as “the pursuit of happiness” that developed from the word property?
The income tax is evil. It needs to be repealed. Property tax is its evil sister- you just rent your property. We need to return to tariffs to fund the government, and most of those in government need to return to the private sector, because the private sector builds things, contrary to what Barry thinks, and wealth is the fruit of our labor, created by the work of our hands; Everything the government has was bread taken from you.
Inflation itself is a hidden tax. We all pay it, rich and poor alike.
A form of “double taxation.” Capital gain is then triple-taxation.
Paying the unproductive by stealing from the productive.
On par with inheritance taxes.
I saved and bought a house in 2008 at market rates.
I sold the same house in 2025 at market rates.
Yet, the government deems me to have made ‘capital gains’ because the 2025 sale price is 3x the 2008 purchase price, and taxes me thousands on the ‘capital gains’….
Now, I cannot buy an equivalent house in another similar area at market rates. I have to save up the shortfall that the government (stole) taxed.
He who writes the rules………
‘Government’!!
AND We let them.
BIG Government is an asset for the ‘world’ but not for individuals.
WHY do We need world trade, tariffs, income taxes, etc??? FOR the ‘world’ to be a better place for everyone, they say! To be able to start a war anytime, anywhere! To protect US.
World travelers are costing every nation it’s due!! But diversity is an ‘asset’ they tell US.
God Help US
Property tax is an apportionment of the spending of local government, apportioned upon the assessed value of your property.
If the level of spending remained the same, and the value of your property increased in proportion to the properties surrounding yours, your tax burden would remain constant.
However, the budgets always increase and if the value of the properties increase and the tax rates remain the same, the government can claim they have not raised taxes- when in fact they have collected more from you.
It only appears to be an increase based upon property value but it is actually based upon spending. They would have had to jack up the rate if your property value was constant.
It is the never ending increase in the size of government that confiscates your wealth.
Ironically those banks then create action to the new value in appraisals. Ah, the grift is in cahoots with central planners. It’s noticeable to the serfs when infrastructure then fails them…
As the population increases, the governmental services required are also increased to accomodate them, and their property taxes will be added to the mix. However, politicians always find more ways to spend money. That increases tax rates at a greater rate than the population.
“The evil trick is that wages never keep up with inflation. So even though wage earners make more dollars, the amount they make never keeps up with inflation.”
I believe that is why the Fed strives for 2% annual inflation number and is marketed as a neutral number: it’s a policy ceiling on labor gains.
That goal is why $1 in 1913 reportedly has as much purchasing power as $32 does in 2025.
Likely understateing the actual depreciation.
Especially with ‘printed, unbacked paper money’ !!
The gold standard is absolutely essential; hoping Trump gets Russia’s outlook on gold standard money!!
Our land and Our gold should be an asset; unlike paper money that is actually worthless. NO matter how ‘good’ the trade deals and tariffs are praised!!
Foreign manufacturers, land owners, and importers are not good for US!!
If you believe anything the FED says is ‘good’ economic plans! I have a bridge for you to see!
No thanks. My inventory of bridges is just fine today.
You’re right and Judy Shelton explains it perfectly. (She blames Janet Yellen for convincing the Fed years ago not to strive for 0 inflation)
Preferably buy assets that generate cash to buy the other assets.
I preach the same message to friends and family.
Banks loan based on checking deposits. They are very much connected.
Most folks do not understand economics. It is not taught in K-12. You have to take a course(s) in college. It is why Dave Ramsey has a multistory multi buidling complex in TN.
There are different kinds of loans. Banks do create money out of thin air it helps an economy grow.
I wish Dutchman was here. Some of you will have to fill in.
People buy things as in Japan and people bid up things occasionally. The Japanese government in the 80s wanted the Yen to become a reserve currency and lowered interest rates and lending requirements. THE JAPANESE GOVERNMENT DID THIS and the Japanese banks complied. Just like the US in the 90s. US government said the banks had to loan money for housing to people with bad credit and no money down. What do you think would happen? We had a bubble and collapse…. Blamed on the Banks Caused the Government.
The problem in 2007 for us was the Banks were too Big. Too Big To Fail. Government was going to break them up.
What happened BANKS GOT BIGGER AND BIGGER. Fewer and fewer. BIG Government likes Big Corporations. Easier to Control.
For those of you who have not listened to this obvious facts presented as a threat by the CIA, listen to Tucker Charlie Kirk first. Kirk explains the new banking crisis and something that might bring down the country. Kirk listens and thinks. Werner is a thinker and performer. There are way too many flashy stories…….its a tell.
Government always wants a fall guy patsy to blame. Governments use banks on many occasions.
The Evil Part of the Trick is Inflation. Caused by Government Spending more than it takes in through taxation. Government spending has to be controlled.
Inflation is never a profit center, it is a profit destroyer. TN housing is going to go up in value for the next 10 years at least, more and more people are moving in. CA, NYC, Chicago are property bubbles waiting to burst. Did the banks cause the rise and cause the coming drop? No
Monetary supply. QE1,2,3,4… When you increase supply the value of each unit drops. Simple economics.
Get back to me in 10 years on the price of housing in TN. By that time, with all the folks from CA, NYC and Chicago living there the bubble may have burst from everybody else fleeing.
“Most folks do not understand economics.” Most economists do not understand economics. Unintended consequences is a fancy term for oops!
But it’s not always an oops! Sometimes the consequences are foreseen, planned, and malevolent. The term “Too big to fail” by definition tells us it’s too big. They stole our money to bail out the big guys-like the essential vs. the non-essential, the little guy on Main Street got the middle finger.
Charles I agree many times it is planned and malevolent. But not by the banks it is by Government.
Why bail out the banks that got in trouble in 2007 because some of them bought enough of those CDOs they were going to go bankrupt. FDIC deposit insurance covers 250,000 or so….What about the company that has 200 million in their account and only gets 250,000 covered? That is why Treasurey bailed out poorly run banks. It would have taken down the economy and hurt a bunch more innocent people.
“ That is why Treasurey bailed out poorly run banks. It would have taken down the economy and hurt a bunch more innocent people.”
That is the stated justification. Maybe the banks should have pushed back on the idiotic idea that everyone is entitled to a mortgage beyond their means. They should have been allowed to fail. The catastrophic predictions were the premise. Fear is a great motivator for some. Maybe that’s why Hell exists.
You know as well as I do that pushing back rarely works. J6ers know. President Trump knows and is the only one that had the fortitude to withstand the onslaught. Bankers are wimps, they get on board. Most of us are too. Get the shot or lose your job. Government needs to be a lot smaller.
The big gov hasn’t had a “budget” since! Hmmm, a trillion here, there and pretty son it’s real money. Back the, $800b was a lot of money! pfttt! They lied, then stole / printed the money 10x over. Ugh, it is evil. What would a jubilee look like? It’s all a figment of our trust and faith.
It’s worse! The mortgage fraud was rampant. The NINJA (no income, no job, no assets) loans were a complete and total scam to rip off unsuspecting homebuyers.
The money was made by loan initiation fees, interest and PMI payments. The homebuyers basically rented with some money down until
they discovered they had been hoodwinked into buying more than they could afford.
There was a whole machine that scooped up properties at foreclosure prices and then got payments from the government to cover their losses.
The big losers were the foreclosed homebuyers and the homebuyers who had to sell at depressed prices after 2008.
The banks made money at every step of knowingly selling to homebuyers who could not afford the homes.
And how many angels can dance on the head of a pin?
STOP focusing on minutia and realize that the system is FUNDAMENTALLY FLAWED and NOT in your favor.
Do economic boom and bust cycles result in wealth transfer?
Yes, economic boom and bust cycles often result in wealth transfers, primarily due to asset price fluctuations, debt dynamics, and unequal access to opportunities. During booms, asset prices (e.g., stocks, real estate) rise, disproportionately benefiting those who already own assets—typically wealthier individuals or institutions. Busts, conversely, can wipe out wealth for those over-leveraged or less financially secure, while savvy investors with liquidity can buy distressed assets at low prices, consolidating wealth.
For example, during the 2008 financial crisis, homeowners with subprime mortgages lost homes, while investors like hedge funds bought foreclosed properties cheaply, gaining wealth as markets recovered. Booms can also inflate debt levels, and when busts trigger defaults, creditors (often wealthier entities) gain assets or repayments at the expense of debtors.
However, the transfer isn’t always one-directional. Government interventions, like bailouts or stimulus, can redistribute wealth to corporations or lower-income groups, though critics argue these often favor the already wealthy. Data from the Federal Reserve shows that after the 2008 crisis, the top 1% of U.S. households increased their share of total wealth from 29.8% in 2007 to 32% by 2016, suggesting cycles can exacerbate inequality.
The exact mechanisms depend on context—tax policies, monetary policy, and market access all shape who gains or loses.
A 2 minute 48 second video that exposes the SIMPLISTIC GARBAGE economic theory that ENABLES the above. It is not fixed because it benefits people and pols in a powerful enough position to do so.
To your point, the subprime mortgages were packaged with good loans into real estate portfolios and sold off to investors in bulk. They did NOT stay with the banks who made the bad loans.
Thus the bank could not care less if they sold you a home you couldn’t afford. The bank made money from the origination fees and servicing fees.
When foreclosed inevitably occurred, it was just a percentage loss of a real estate portfolio that was earning money overall on the good loans.
OTOH, if “savers” got a market return on their savings they’d be doing well. You can’t compete with a rigged system and ultimately it’ll take you down whether you have savings or assets. Savings by manipulating the money supply and assets by manipulating the stationery limitations of assets. That’s why it looks like communism coming around the corner.
An example of an acquired asset value. A set of MIKIMOTO 18 INCH cultured pearl necklace in 1997 cost $2500 plus tax. The $2500 in today’s dollars is $4508. However, the retail cost of the same pearl necklace today is $9400 plus tax. A 10% luxury tax on the pearls in 1997 was $250. Today the tax is $940.
Thank you for your elucidation, another great post!
Mimi, not that simple. Usually, when the house turns over the new owner spends a fair amount of money, renovating and upgrading, and then they buy new furniture and other stuff to populate the house their way. So house turnover creates real jobs and real economy. I once sold a house that was in pretty good shape and the new owner spent as much completely redoing it as they spent in buying the house. I know a crazy example, but owners like to create their own nest.
I watched the first hour and intend to watch the rest. I got a D in Econ in college but
this interview was enlightening and not boring.
College eco is bunk.
Apparently so are college loans. This video explains it quite well.
I had that worthless undergraduate Economic degree at UCLA and had to return to UCLA grad school for an MBA. At least with that degree I could get a job!
I’m now retired and grateful for accounting and finance classes along with real estate classes that led to a wonderful banking career in real estate development.
My number one criticism of colleges is that they give no information to students about what kind of job they can get with these stupid degrees. There are so many degrees that are worse than useless economics.
“What kind of job and what kind of money are you going to make with that degree” is the most important question that should be asked by students and answered by teachers, but never is.
Mom and Dad should always focus their children on question if they are going to spend all that time and money on college. But they do not.
How about that nice job at Starbucks after you graduate college?
Man, funny, so did I and I actually had to go meet with the professor to save my ass. One on one, I got it better than in class. I still remember his name and looked him up. He left my college and went to Florida. Last time I looked, his name was listed as faculty but retired. I thought about posting his name but I don’t know if it would be appropriate. I don’t see why, but I won’t.
LINK: Above video on Rumble
Thanks, Utool made that specific video non-downloadable 403 forbidden, able to get from Rumble tho.
I did listen to it @ 1.5 tho.
I listened to it last night!
I agree, definitely worth the time to
watch/listen to!
👍
The length the Deep State/CYA went through
to silence him.🤷♀️ over the 🎯
And he even explained the credit creation
in a way even I understand 😁🙂
They tried to murder him many times before they were successful. The guy who got fired from the Library of Congress for writing the first book exposing the federally charted but private owned Fed mentioned McFadden allot.
Sounds a lot like the “carefully contrived occurrence” called covid, which they hoped would also bring “about a condition of despair” “so that [the deep state] might emerge as the rulers of us all.”
The leftists are still and continually in despair, often of their own making.
Rah, in the Open Thread made note of the NC state Legislature over-riding a veto.
[If others are unaware as was I, they’d find some cheer in it. BIG.]
American Leftists (how I’ve come to love that word) need to be dragged kicking and screaming to the depths of their worldly despair just in time for the 2026 elections!
So happy, too, that the whole Epstein List Disconnect thing has been turned down to a simmer.
2026? Three words: Fight, fight, fight!
Despair, as intimidation, are communist tools for control of civilizations.
I see a lot of that despair among the leftists in the blue state where I live.
The only possibly good thing is that the depression (4th of the 5 stages of grief) is supposed to give way to acceptance.
The only bad thing is that so far all I see is their slipping back into the 2nd phase, anger, and alternating between that and depression.
The normal progression of depression, as well as the normal progression of many other things, might apply to normal people, but it does not apply to communists. Communists are criminally insane, and the rules that apply to the sane do not apply to them. IMHO, we should spend less time trying to understand them, and more time trying to destroy them.
Their souls are dark caves in which they practice their new age morality. They have one objective: defeat republicans. They need no other reason to sharpen the knives… it’s just what they are told to do.
‘Despair, as intimidation, are communist tools for control of civilizations.’
This seems to be part of the design behind the running exposés about egregious Constitution-flouting government corruption and abuse that we are powerless to change.
The other part apparently to keep us distracted and engaged in a sand trap leading nowhere, as the tectonics continue under our feet carrying the US toward the planned ignominious end state. A nation is its people, degrade the people and the state is degraded:
https://www.thefocalpoints.com/p/the-genetic-integrity-of-humanity
That ‘ “carefully contrived occurrence” called covid ‘ and its paired bioweapon (modRNA shots), have created a profound blight on the west (morbidity/mortality) that FAR exceeds mere despair.
And this blight is permanent, the toll will be long-term – and the US is STILL injecting very young children to ensure this.
As the next stage is being finalized for deployment – on the west only:
https://www.thefocalpoints.com/p/attack-of-the-replicons
Insanity? Or something else?
Insanity and depravity “that FAR exceeds mere despair.”
Who was murdered?
Who was fired from LoC?
The three planks of the American System that President Donald J Trump is installing are protective tariffs, a national bank, and internal improvements. The Federal Reserve is not a National bank. Its a criminal enterprise that has been ripping us off since its inception. I’ve been expecting PDJT to eventually take care of the Un-Fed.
The goals of the Fed are to achieve full employment, low inflation, and low interest rates……….TO TAKE POLITICS out of the ECONOMY in the monetary area.
For many years it worked but the recent crop of leaders ending with Powell are political hacks. Just like the hacks in the DOJ, FBI and all the other alphabets.
The Fed does need an audit and no doubt needs to be closed and START OVER. There are a lot of other government parts that need the same treatment.
> The goals of the Fed are to achieve full employment, low inflation, and low interest rates…
Bull cookie. The goals of the Fed are bankers goals- more power, control and profits. It was a fool’s bargain since day one for Americans. End the fed.
The federal reserve is not controlled by the United States of America. It needs to be eliminated.
Do some research and find out who controls the federal reserve. It’s not Trump or Americans according to my research!
Your research is flawed. It was created by Congress and can be eliminated by Congress. The President picks the leader.
Or you could just keep the banks out of asset purchases (Glass Steagall), and leave that for the citizens (who are now priced out of the premier individual stocks). But that’s a matter for another time (and I look forward to watching the video).
Some banks voluntarily stay out of asset purchases. Loaning money today at a fixed interest rate over 30 years is a risky thing to do. Good banks minimize risk, spread risk. Some bankers are not very good, just like us. Capitalism works becasuse the Market decides.
Yikes!
the Fed Chair certainly isnt scared to back talk PDJT – about the bill.
It certainly got a 3.1 billion dollar remodel at taxpayer expense.
The entire system is a criminal enterprise and needs to be destroyed.
It cannot be saved.
An interviewer asked Dr Thomas Sowell if we got rid of the Fed, what would we replace it with.
Dr Sowell said, if we got rid of cancer, what would we replace it with…
I think that sums it up pretty well.
Beginning to watch now….
That there is a fabulous answer — for many questions.
I am not a smart man, but I have glimmers. We would need someone or something to determine the American dollar. What would that be in the absence of the Fed? I don’t know what that would be, do you? Thomas Sowell is a very smart man, but just saying what would you replace cancer with? That is not enough. You do not want the government determining monetary policy. So who would, I mean really, who would if not for the Fed? You want someone like Shifty determining what monetary policy should be? Come on people, give some answers. Don’t say gold standard, as there has not been an audit to Ft Knox in decades. We may not have any gold left. You all might want to give some thought as to what takes over for the Fed if they are ended. Now, keep the Fed and have someone that really wants to make America successful as the new chairman. That may work, but don’t just say cancer and not give something to replace it.
No, I know it’s not enough, Ramblin.
Unfortunately I’m not the one to fill in the empty spaces on this one. I’m an hour into Professor Werner’s fascinating and detailed discussion and am gripped by it.
Perhaps he’ll lead us to an answer. Or perhaps we will finally understand how screwed we are.
The latter I’m suspecting is going to be the hard truth.
I hope you’re listening to this brilliant man.
CBDC??
Definitely not, another method of control as President Trump is well aware of.
Ramblin…some of the smartest people I know…men and women with photographic memories are some of the stupidest people I know…
Don’t sell yourself short…
Ty Bet and Mr Sowell, one of my all time favorites, both of you!
He’s 94 now, my dear “nephew”… so much wisdom. I admire him all the more because he examined his youthful beliefs, found them wanting and wrong, and had the strength of character to jettison every one. Same with that paragon Justice Thomas. Same with Leo Terrell, one of the angriest men I ever saw who now joyfully serves in this administration.
Ask the right question
If the US government ran a balanced budget, would we need the Fed. No
If the US government continues to spend more than it takes in and we got rid of the Fed what would happen? Congress would replace the Fed with something just like it and call it a different name.
Nature abhors a vacuum all right.
There is a curious saying which I picked up during my years in Britain…
“Stick with Nurse for fear of something worse.”
Is there anything worse for this country’s health than the Fed?
I’m not so sure.
Betsy it is not the Fed. The continued over spending by Congress is killing the country not the Fed.
If President Trump reins in the spending the Fed is a non issue or at least not an urgent issue to fix.
Let’s split the baby, Terry, and say each is as guilty as the other. They work not in isolation but in tandem. Like molecules which bump into another until the mess they create reaches boiling point.
Ok then. Wow. Well what chance realistically is there that anything can or will change about the Fed? Anyone who has seemingly gotten close to making any big moves on the Fed has ended up in a not very good place. What can the average person do to help here?
Spread the truth my friend. PDJT has been talking down Powell and the Fed for a reason and hyping up Crypto. Just look at it as PDJT sowing the seeds in preparation. Cheers mate
Powell has truly politicized the Fed. Lowering rates last year for Biden while Inflation raged. Not lowering interest rates now while inflation sags? Political all the way.
Yes, The Creature FromJeckyllIskand.
A few years ago I read and understood what you said, Sundance, concerning how our betters make money off us and out of thin air — with nothing backing it other than the ponzi scheme they set up at the start of the 1900s.
If you say this video is something we should watch, and included a couple times that we should set aside “quiet time” to pay attention and absorb what Werner has to say, I know it is something I need to do.
It is the 3 hour time commitment that is hard for me to find, but sometimes the middle of the night viewing is best.
Raven I sense that you are still working and if so, applaud you for that. Can’t tell you how many mornings or afternoons or evenings I thought “How much longer do I have to do this? ( shift work).
I believe this is the defining moment: Main or Wall Street.
I’ll take Main Street in Mayberry any day over my “portfolio of investments”.
Blue Collar Stev,
Been retired for 15 years now after working since I was 15. The earliest years were spent working in a factory that made stormdoor hardware, so I went home after my 11 hour days (manditory 55 hour weeks) covered with oil and smelling like it, too. When you wrote, “How much longer” and noted “shift work” it brought back lots of wild memories as a “union” worker.
Crazy thing is, I am busier now than I was when I was working long, crazy hours.
Today I spent 7 hours buying school supplies ($1,400. worth) to put in already purchased backpacks to give to children whose parents can’t afford (or who have no idea how to handle money) them. I didn’t provide the cash to buy the supplies, I’m just one of the gophers.
I’d love to live on Main Street in Mayberry, but I think that dream is a lot like attending a really good church. As long as I’m there, it’s just taken a step down in the good department!
I’m looking for emojis but can’t find ’em.
I like words better. Thanks for making your community better!
People who work hard during their lives, I’ve noticed, do the same in retirement (if lucky enough to do so). The work, however, is their own choice (mine is playing in music groups and gardening, plus local MAGA activity).
I have no musical talent, so it’s cool to hear of others who do, and then share that gift with the world.
I’m also guessing that that form of “work” is really a great joy to do.
Dear Raven….school supplies, and placing notices about the benefits of Ivermectin for cancer in magazines in doctors’ offices 😎 I do remember…
The well of your good heart is deep, girl (Proverbs 10:11)
As for Mayberry, coincidentally, the other day I was remembering that little town, too…
Does this about explain it?
Oh my. There was a time when America had good goals.
And I miss that as well, Monti.
Ah Betsy. . .
I’m afraid I’ve always been jaded when it comes to the world and the way I viewed it. I love and trust the Lord, and know this hard rock is not my Home.
What has been hard for me to see over the last few years is how my tenderhearted husband, who was never interested in politics before, has totally regretted sticking his toes into poisonous political waters only to pull out his foot and find his toes are missing.
A sweet soul such as his took a big hit, and he literally says he misses “the way [he] viewed the world before” getting involved in politics.
Your husband sounds like our Canadian Treeper friend Dan Dale, Raven, who ran for a place from his riding (I believe they are called). A Christian man himself with a beautiful family watching Trudeau shred the country he loves, he thought long and hard, then patriotically volunteered to join the fight. His “jading” and worse was delivered via his own party. Different countries but the backstabbing intraparty skullduggery is the same.
If you’ve read any of his comments in the threads about Canada, you’ll certainly see how he and your precious husband could be brothers from another mother on this. Shared experience is very bonding, like serving with one another in a terrible war. Which politics very much is and possibly as damaging in its own way.
I’m sorry. He’s lucky to have you…
Excellent Betsy, as usual. Many days I feel the same way.
I seem to have them more and more, dear sir.
This cartoon reminds me of a Bob Seger lyric (one of my favorite of his songs): “Wish I didn’t know now what I didn’t know then.” — Against the Wind
Oh yes, Deborah!! Same, same, same…
Until I was brought to the city in Jack Cashill’s fantastic book “Untenable” at a young age and saw what the Alinsky Democrats were capable of and what they wanted to do everywhere, destroy it. Except maybe where the Limousine Liberal-Marxists reside.
What a wonderful writer he is, Colkitto. I can’t imagine incubating that much hatred of humanity. No God in their lives, you see. But plenty of someone else…
I just purchased that book. Looking forward to reading it!
A suggestion…
90% of podcasts..especially conversations like Tucker…
I have a tablet and have a pair of wireless ear buds that
I use.
I listen while doing chores, cooking, yard work…
Just a suggestion to consider.
My problem with ear buds and headphones-you are less aware of your immediate surroundings.
Easy. Wear only one, so you can hear out of the other ear.
Good idea!
👍
A teenager, wearing ear buds or headphones, was killed by a train some years back in a Texas town!
Yes, I believe it is distracting, and therefore perhaps dangerous… but then, I’m not a ‘multitasker’ type (if there is one). Focus! is better.
One ear will suffice; it’s not a symphony performance.
There is a sign language hand sign for the word Focus! that I often used in my classroom. It is now a part of my vocabulary and very handy when I work with kids. Such a great silent and visible replacement for saying Pay Attention! over and over.
I listen on my phone during my 40 minute commute to work. Makes the drive much more pleasant.
I have a time issue to watch these great interviews too.
I do walk every day for an hour, I’ve been thinking about some sort of ear pods to listen when I walk using my phone.
I did have my eye on those Bose headphones also..
I’ve been thinking about getting set up to do this, however they do it nowadays- lets just say that.
I’m decidedly very low tech and barely can use my cell phone, so to to do this is a big deal for me, but there are so many interviews with people like Rogan and Tucker that I’d like to hear.
Some people listen to them when they drive to and from work too.. or doing the dishes? folding laundry?
I’m thinking this is the way to go..
I have a set of wired earphones, so very low tech and nothing extra to charge. Of course it requires your phone to have an earphone jack.
I needed an adapter for the micro jack. Simple $7 fix.
I started listening to President Trump’s rallies when I was doing things like cooking/dishes. That led to listening to many different podcasters and now I prefer podcasts to reading non-fiction, especially because many podcasts are available on youtube, so you can listen on your schedule. You can pretty much do anything while listening – gardening, organizing your wardrobe, DYI projects… I listen on a Kindle Fire (\use for e-reading) and move it around with me.
Not difficult, really.
I pay for iHeart Radio on my iPhone to get the podcasts. I think it’s also available with ads to save $$. It works through a computer as well. It’s even on my TV Roku.
I have Raycon ear buds from years ago, still working well, and as I said above, I wear only one to keep situational awareness.
I’ve often listened to 2 to 3 hour podcasts while gardening. Also good for walking.
In the car I connect to the car speakers with Bluetooth – would not want to have an ear closed while driving.
Increase the playback speed to 1.25 or 1.50. Saves time and keeps the pace going.
My wife listens to audiobooks that way. She listens to a lot of books.
Interesting idea!
I’m one of the kids who never listened when their father yelled, “Turn that music down!”, and by the time I was tested for hearing loss at 28 they said I had the hearing of a 65 year old woman.
Now, after having surpassed that age, I can tell you that I supplement what I don’t hear with lip reading.
Will give speeding the interview up a try, and see if my brain keeps up with the speaker’s lips as well as his words.
Thank you!
I’ve learned to listen # 2x to reduce my time.
Long form podcasts are pretty common these days. Good ones are LOADED with info, the kind compared to reading a good
book. I’ll have acouple of videos open on the desktop for DAYS. Hell, it takes me days to get through some of CTH”s deep dive posts. 20 minutes here, 1/2 hour there. However many days it takes, in the end it’s SO worth it.
Since I wrote my first post about not having time I just decided to take the time right now and watch the interview; at least as much as I can process in one sitting — as you suggest.
So far the interview is both amazing, and dark and demonic.
A French warship came into New York Harbor in 1971 (that’s still current time to me!), and French troops went to the Federal Reserve to take out France’s gold?! I wonder how “they” spun that story back then.
It’s a timely podcast at the same time as Trump is bitch-slapping Powell around the construction site at
the Fed.
Happen to be in the middle of reading Adam Lebor’s “Tower of Basil”, about the BIS, the central bank for
central banks. And all the dark & demonic crap whirling around that nest of vipers.
Definitely picked the wrong week to give up fentanyl.
“Definitely picked the wrong week to give up fentanyl.”
Dang, that made me laugh out loud!
Will look up ‘Tower of Basil.’ Sounds like a horror story in real life.
A YouTube channel I watch recently discussed how the USA held the gold reserves of the UK & other European countries during WW2.
It is not a Ponzi Scheme. It is a highly regulated mechanism to create economic growth.
Have you read the book, “The Creature from Jekyll Island”?
Yes Susan I have. In the case of the economy and inflatiion government is the problem. Congress spends way too much money, much more than it takes in with taxes. Hence we have inflation. The Fed was created to take monetary policy out of the polictical sphere.
The Fed was created SO THE BLAME for inflation, recessions etc could be transferred to the straw man instead of Congress .
While the problem is with Congress, everyone focusses on the Fed. Most everybody hates banks so Congress was smart in deflecting the blame. Jews were money lenders in the old days…Shysters. Many hate them to this day because of it. Dutchman and some others call bankers banksters….. My opinion was someone in Congress or government paid for the book. When the tar and feathers come out make them look for somebody else.
Bankers are mousy little folks that do not like to take risks. Powell is a good example. They are not leaders.
The leaders tell bankers what to do and the bankers figure out how to make money doing it…..no matter what they are told to do.
Democrats said Loan money to people with bad credit and they do not have to put any money down on the real estate. The Banks did it. The good ones knew they had to get that worthless paper off their books. They bundled them with good mortgages and sold them as Jumbo Collateralized Debt Obligations. Real estate exploded up with all the new purchasers. Some poorly run banks bought a lot of those CDOs…they were discounted to sell and they bought them and could earn a bunch of money in interest. Then the subprime folks started missing payments and the rest is history……. Don’t blame the Creature from Jekyll Island blame the Democrats. Blame Congress.
Another tell for me is the Lead In on YouTube on the interview….creating money out of thin air… Like it is something crooked. It is not crooked it is smart and highly regulated.
Sundance has been the only person for a long period of time talking about Wall Street Main Street. Who picked Wall Street over Main Street? It was not the bankers or the Fed. Government forced me to close factories and move to Mexico, Government forced the hollowing out of all our industrial towns and industrial parks. I lived it. Government forced it to happen. You either moved or went out of business. Just like President Trump is FORCING it all back. I am UltraMAGA. We need our good manufacturing jobs. The Creature is not the root cause of the problem, Spending more than we take in is the root cause.
As an aside, I think Sundance likes this guy because he is the first person to talk Main Street Wall Street in a big way. Vindicates Sundance. But for me the CIA caring about what he is talking about is nonsense. There is so much hot air in his presenatation. If you want a peak at what may happen listen to Tucker interview Charlie Kirk. Kirk is smart and listens…. he talks about a new kind of lending and debt trap. Werner acts like the Banks is Japan bought all that real estate and drove the price up. The free market drove the prices up due to Banks lowering lending requirements and interest rates at government request. Hope I did not make you angry.
B.S.
I have of late soured on Mr. Carlson but on Sundance’s recommendation will try to get through it.
The first time I heard this articulated was in G. Edward Griffith’s expose on the fed (lower case).
I’ve completely soured on Tucker Carlson (The Daryl Cooper interview where Tucker backed Cooper’s revisionist history of Churchill and WWII was the last straw.) so will watch Werner when he’s interviewed by someone else.
I agree. Thank you. I’m signing off. I managed the fed account of a very large bank, so I understand the danger of their powers.
Yeap Tucker is his own all day sucker.
Still, I will try to watch on SD’s strong recommendation.
Interesting how some people here cannot abide an alternative opinion.
yea and Tucker’s opinion at that. Makes zero sense and he supports President Trump but disagrees with some stuff. Tribalism……….
I find it very odd that some people on the American right, who are perfectly willing to criticize FDR, insist that Winston Churchill is the greatest man who ever lived.
Werner is correct that banking (and the Credit Cycle) is omitted from core macro economic modeling.
This was the subject of a raucous debate between Paul Krugman (MIT) and maverick Steve Keen (Australia) around 2012.
https://www.opendemocracy.net/en/opendemocracyuk/keen-krugman-debate/
There are likely better overviews, but this is an introduction.
I’ll watch this for sure.
Beck interviewed him a year or so ago and it was a fascinating discussion.
“Bank deposits are not really a deposit. They’re a loan”.
Technically, bank deposits by you and me are liabilities on the bank’s balance sheet…loans to you and me are assets on their balance sheet.
Yes that freaked me out when I started volunteering at our credit union.
But $$ you deposit (if not a loan) have to be paid interest.
$$you pay make the CU or bank profits.
If you belong to a CU you are a MEMBER of a co-op of sorts, and can obtain benefits in the form of lower rates on loans.
A bank has a cohort of SHAREHOLDERS who benefit along with the bank on the higher interest you pay on services.
That sounds correct to me.
My Dad was the only person I ever heard utter your moniker!
My Mom used it all the time! hadn’t heard it since she died in 2000.
Prof. Werner’s youtube channel:
https://www.youtube.com/@wernereconomics
and substack:
https://rwerner.substack.com/
No freaking way for 3 hours……………….. ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ🙀🙀🙀🙀🙀
You’d be surprised how fast it goes…2 hrs 43 minutes to be exact.
That’s a typical Tucker Carlson interview length.
It’s not that hard, except if the listener doesn’t want to hear 😆😉
Well, watched two and half hours, twice, of a Billy Joel special on HBO. I couldn’t pause it but you certainly can a podcast. I agree with your statements.
Among other things, Werner gives the first true history you will have ever heard in your life concerning the true cause of the Great Depression and the Global Financial Crisis.
It is worth listening for that alone.
We now have the Everything Bubble. It is a huge national security risk. And many people from Ed Dowd to Martin Armstrong have been jumping up and down trying to ring the alarm bells.
Jerome Powell, Bessent, and President Trump can defuse it if they do as Werner suggests.
Buy the nonperforming bad loans from the banks to save the banks, then erase them, buy the assets like commercial real estate and overpriced multifamily housing from the non banks, set up State banks, deregulate the banking industry to encourage 10,000 local banks to be created.
Hint: the Smoot-Hawley tariff thing was a complete lie.
That is true.
The Smoot-Hawley tariffs causing the Great Depression is a useful fiction however for those who’d tell you to not believe your lying eyes.
The Great Depression was already unfolding when the bill passed for those tariffs to be enacted.
Definitely will watch tomorrow after a good night’s sleep.
So far, I have been able to watch at l.25 speed which takes it from approximately 163 minutes down to 130 minutes. I am really excited to learn about these macro econ issues especially when it is tied into banking, lending, and all of that other stuff that they don’t teach us.
Thanks for the heads-up. I listened during my workout and while watering my garden. I was reminded of when I finally understood how lending creates money. Conversely, paying off debt destroys money, which is why we left the gold standard.
After World War II, the U.S. economy, and eventually the global economy, became increasingly dependent on credit expansion to sustain growth. Wages weren’t rising fast enough to support consumer demand on their own, so credit filled the gap. At the same time, the U.S. government needed ever more funding for war spending, social programs, Cold War competition, and economic stabilization efforts.
Under the Bretton Woods system, dollars were convertible to gold at a fixed rate, but the U.S. was issuing far more dollars than it had gold to redeem. Foreign governments began demanding gold in exchange for dollars, threatening a run on U.S. gold reserves.
The gold standard imposed a hard limit. It restrained the amount of credit the Fed could pump into the banking system and the amount of debt the Treasury could issue. That restraint became politically and economically inconvenient.
By abandoning the gold peg, the U.S. could issue unlimited debt, run persistent trade deficits, and still maintain monetary sovereignty. The Fed could lower rates, expand the money supply, and bail out the system when needed, without worrying about depleting gold reserves.
The move to Fiat wasn’t about economic principle. It was about control. The U.S. government and Fed needed to create more credit because the structure of the economy—debt-based, consumption-driven, and globally dominant—demanded it. Gold was a leash they decided to cut.
Now we’re deep into the logical endgame of that shift: a global financial system built on ever-expanding debt, asset bubbles, and artificial demand, and endless wars—all dependent on low interest rates and central bank intervention to stay afloat.
So, what happens:
The system only works if credit keeps expanding and belief in fiat holds. But each new round of stimulus or rate suppression buys less time and creates more distortion. The underlying economy becomes more fragile, not less. And eventually, either inflation, loss of confidence, or geopolitical realignment forces a reckoning.
Government got involved in Education. Aministrative Expense went off the charts. Government allowed unlimited student loans and college costs skyrocketed. Healthcare….We got Medicare and Medicaid government run….then we got ObamaCare and costs went through the roof. Inflation in general drove up Housing costs starting with forced lending to subprime borrowers. Lets regulate cars and make them more and more fuel efficient and complicated. It is government driven chaos. Lets give everybody the shot and shut down the economy for no reason. Again government driven.
The system won’t keep working. Government spending needs to be controlled and deficits reduced.
The book The Creature from Jekyll Island is on this topic – it’s really good and fairly easy to follow – I found the book more straightforward than this although I’m glad to see this interview.
I did read the book.👍👏
I recently found a video of a talk by
the author G. Edward Griffin that he
did 15 years ago.
It’s great! His telling of the secrecy surrounding
the setting up the FED and Jekyll Island..
he has a great sense of humor.😁
The talk is not boring at all!
For those who want even more information
I definitely recommend watching/listening to his talk!
The creature was the Federal Reserve.
The modern version of Jekyll Island is Sea Island.
Both are islands off the coast of Georgia.
The Creature From Jekyll Island (by G. Edward Griffin) – YouTube
It will be tomorrow but I am certain of the value of that discussion.
Bitcoin fixes this. Study Bitcoin.
Listen to the interview. How do you see Bitcoin being able to loan for small entrepreneur development of their small businesses. The key idea I see 1.5 hours into interview is that the investment by small local banks into new small business that then employs workers that are paid thereby building the economy with their spending for products and investment and they can then grow into possible new business ideas . Bitcoin has NO relation to this process.
Listen to the Michael Saylor interviews on The Iced Coffee Hour, Lex Fridman and PBD – they are amazing!! He does an excellent job explaining Bitcoin, how it’s different than other “cryptocurrencies” (he rightfully argues that Bitcoin is digital property), and its role in moving money into the future.
Also, I highly recommended listening to Alex Fridman’s interview of Balaji Srinivasan.
I’ve listened to all of those many times and pick up something new each time. All four are probably +/- 12 hours of listening.
When a very large percentage of ‘small businesses’ and ‘large businesses’ are owned by foreign investors, along with ownership of US land, and importers how do you think that will work out for US; the tax paying public??
The emphasis is on ‘the world’ not US.
ALL of Trumps ‘deals’ and tariffs are hokum; WHY do we need ‘world trade??
Bitcoin is no different than printed money; manmade, unbacked by a tangible asset. IMHO
Give me gold, silver and precious metals; literally.
Bitcoin (and others like it) is artificial gold. It must be mined just like gold. There is a finite amount of it, just like gold (or so we have to trust the creator that that is true).
The profound difference is that real gold has real World uses, and vey important uses at that.
The one and only advantage of Bitcoin over gold is that Bitcoin can be ‘transported’ with ease, whereas gold is physically difficult to transport (comparatively). Can’t walk around with a “wallet” full of gold (unless and until the price of gold gets so high that carrying tiny amounts equates to carrying large amounts of money).
The biggest risk with Bitcoin is government regulation. If it is ever made illegal to use as an asset or a currency, the price will crash to near zero. There is every chance that this may happen if governments decide to do away with cash and issue their own crypto.
The risk of getting digitally locked out of a Ceypto account is pretty high of a risk for.me.
Great Interview. I watched it in its entirety. My lifelong friend said nothing new here – read creature from Jeklyl Island for more context.
Don’t read the Creature Book, read a basic book on Economics.
Tom Bilyeu has been talking about this on his YouTube channel lately.
Bannon had an interesting economist on last Saturday – Judy Shelton. It was a first for her. She was in alignment with this theory. She specifically spoke about how the Fed plans on 2% inflation/year. That came from Janet Yellon years ago. Now that Scott Bessent is with the Administration Bannon lost him and Russ Vought.
I found the interview link: https://warroom.org/judy-shelton-slams-fed-emperor-powell-calls-for-central-bank-overhaul/
There’s 2 segments. With ads/breaks it was around an hour so less I’d guess.
The Federal Reserve created by Democrats. Enough said. Jerome Powell selected by Democrats. Enough said. The Democrats have perfected SLAVERY.
Powell was initially appointed by Trump in 2018. I love Trump. Just wanted to clarify.
When Trump dismantles the FED, he’ll go down in my book as the champion of men and nations; not the ‘world’ order. AND gigantic ‘world’ trade and world tariffs should go up in smoke.
Get rid of the FED and get rid of BIG government, BIG Business, and BIG money.
More like Communism IMHO. WORLD Communism, world wars, world economy, world politics, world standards, world businesses, world money/FED, ……….the emphasis is ‘world’ not nations. IMHO
They say the ‘world’ has gotten smaller; I think it’s gotten too big for it’s britches!!
Sundance, I just listened. There wasn’t anything new here for me in this podcast. I’m going out on a limb here, but suspect anyone who is a regular reader of yours, likely already has a fundamental education in the evils outlined by Tucker’s guest. Nothing new here. At least thanks in large part to you!
Well, I can vouch I am regular here, but repetition never hurts. We are in a different place every time we hear it. The world and others are in a different place every time we hear it. Listening to others express the same truth from their perspective is always additive. More important , watching others apply the principles in different situation helps.
Just like the same scripture or quote read over and over.
Some on the treehouse belittle others who ask questions, or say “go read it in the archives”. But I haven’t figured out how to use the archives to answer my questions.
Sometimes I think people who belittle those who ask questions, or say nothing new here are plants trying to minimize the propagation of information that we need. Trying to suppress our needed enlightenment. Or perhaps make themselves feel smarter.
Thank you, Sundance!
Thank you for being my teacher!!
👊👊🇺🇸🇺🇸❤️❤️🙏🏻🙏🏻😇😇
Amazing discussion. Connects a lot of dots that I’ve struggled to connect for years. I wish I could post photos of my notes.
Thanks for encouraging us to listen to that interview, Sundance!
I realized this a long time age when I learned that banks were allowed to loan up to 10 times what they actually had. It’s obvious as hell. That’s why, after the housing crash in 2008, we had a deep recession. All that money that had previously been added to the economy was wiped out. My personal opinion was and still is that this was an attack on our financial system meant to put the communists in charge, much like COVID was in 2020.
We damn well better get to work figuring out what the bastards have in store for us in 2028.
Removing capital gains on Constitutional money would create an alternative way of saving.
I’m a simpleton. I’m 36 minutes into this guy’s interview, and he hasn’t answered ANY question. He asks the question as a tease, and then digresses into 20 other points, never answering the original question.
Fiat money comes from those who create the fiat currency. The fiat currency is created based upon a value, real for fraudulent. The Fed is funded by money that passes through it, and the money that funds it, i.e. greenbacks, real, or computer numbers, “lent” by the US Government. That’s how I understand it. If the “value” isn’t there. Then it’s fraud, plain and simple. You have numbers on your ledger that cannot be repaid, again, either in literal instruments of value, or by refunding the loans from the US Government, then you’re committing huge, financial fraud.
“The banks create money” and “the big banks and Fed created the Great Depression”, that’s his main two points. I think he was trying to say that Japan in the 1990’s was overvaluing it’s properties (again, fraud), which eventually cause many to go broke, causing the great Japanese, “lost decade”. The US Fed is in the fraud business, by “expanding money supply”, i.e. giving free cash to banks, based upon future work of Americans yet not born. There are no controls. To say that the NY Fed Reserve bank is “privately owned”, is perhaps true, but every nickel has come from the US Government (and D.O.G.E. has show us how faithful the government is with your money).
I don’t get anything else from this guy, but he thinks he’s very clever and will be glad to tell you with a giggle, in the next 10,000 words.
Again, I’m a simpleton.
No. He is saying Bank of America creates currency when it gives you a loan.
Bank of America did not get the currency from the Fed. The Treasury never printed it or had anything to do with its creation.
The entry of the loan on the bank’s books created the currency.
That’s it.
Banks are not intermediaries that take my money and your money in and then lend it out to Joe down the street.
At the macro level, the banks print money via making loans. When that currency is then used to purchase a previously existing asset like a house, the resulting increase in the money supply make the house prices go up. That’s how the Bank of Japan created such an overinflated housing bubble that the Japanese were sending their money to buy assets abroad that were not equally ballooned. The Bank of Japan could have chosen not to cause a 20 year recession simply by taking the same sort of steps the Bank of England took when England declared war on Germany (he goes through that), but that’s not what the Fed wanted to see happen, so that’s not what happened.
And Japan has suffered the consequences for decades.
And when Werner wrote it all up, in a best selling book in Japan solely in Japanese, the CIA paid him a visit in response.
That’s how important this is.
And when you understand that under Trump 1.0, the shift from using the LIBOR (England) to SOFR (US) was tectonic, you begin to understand that the signal under the noise is impending liberation from the City of London.
Again, Tucker interviews are a leading indicator.
The timing of this interview is potentially a preview of coming earthquakes – hopefully signaling that the long planned Great Taking, leading into CBDCs, has been out thunk by better minds. There appears to be a way out of the Everything Bubble that will restore Main Street and decentralize finance. May it be so.
Good summary. Thanks.
The Japanese Government instructed their bank to drop interest rates for reasons of the govnerment’s own. Just like here when interest rates are lower people can afford a bigger mortgage. The Japanese bank did not buy the real estate, the people did. And their economy was going great, people bid up the price of all the real estate and created a bubble. The Bank did not create the bubble….the Japanese government encouraged it and the people bought it. The Bank of Japan had no choice just like our banks in the 90s….loan money to subprime borrowers with no money down or lose your license to do business.
If a bank can’t back a loan it issues, and is audited, it’s a crime. It has a name. Bank fraud. No doubt, some banks do that, but that’s why banks are required to have outside auditors, who audit their liabilities, assets, and yes, loans.
Japan did it by overvaluing property, creating a “value basis” upon which to issue loans. When property values crashed, when the loans were called, banks suddenly had insufficient value to back their liabilities, i.e. crash.
I don’t care what Werner calls it. If it happens, it’s fraud. If the Fed and US Banking regulators allow it, they’re complicit in the crime. It’s one of those “you don’t get to do that” thingys.
Werner makes the point in this discussion that banks are the only entities privileged by the laws to print currency with merely a book entry.
Who writes those laws?
Sundance has told us, and I can verify, having written a draft law or two myself while in the private employ of a couple of large law firms. It ain’t the legislators, mostly.
Try this interview by someone who
is well known for his book…..
He explains how the Federal Reserve
was set up, who set it up and who benefits.
It is not boring- he has a great way of
explaining and has sense of humor.
The Creature From Jekyll Island (by G. Edward Griffin) – YouTube
Hope it helps. 👍
‘There are distinct differences between banks creating money for asset purchases (inflation), consumer purchases (inflation) and GDP growth (Main Street expansion). ‘
But US GDP is mostly government spending, healthcare, and financialization (vapor) now. So growing Main Street won’t grow GDP much.
‘…the need for two distinct banking systems as a solution to the “inflationary” impact of money created for asset purchases vs GDP growth…This…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.‘
That’s an interesting theory. So it wasn’t to justify coercing the modRNA injections on the west only, to degrade the west only, as part of “encouraging” the geopolitical shift underway sinking the west and raising up the China axis?
https://www.thefocalpoints.com/p/breaking-study-mrna-injections-induce
https://www.mdpi.com/2227-9059/11/8/2287
https://jonfleetwood.substack.com/p/cdc-admits-theres-no-test-for-long
https://pubmed.ncbi.nlm.nih.gov/40573879/
Next stage – again, targeting the west only:
https://www.thefocalpoints.com/p/attack-of-the-replicons
Most of the huge events that shape our world are the convergence of aligned interests. So yeah, Covid was to defeat Trump for a number of reasons as well as to see how far they can push a society to be submissive, and to make us more unhealthy.
There is so much to learn about the manipulation of money. So much.
Good points here about more efficient listening; I’ll add using bluetooth capable bone conductive headphones allows outside reference while listening.
Someone please educate me on why Tucker is on the “I NEVER listen to Carlson!”, and “He’s a tool!” lists.
stop listening to Tucker a while ago……..
No explanation?
A campaign against him and Candace Owens
recently for not following “approved “ narrative
or having “approved guests “.
Foreign Interference. 😵💫😖
Pretty pathetic in my opinion.
And it places a pretty bad light on “Christian “
pastors. I am surprised they actually
thought they would get away with it
and people would not snitch on them.
People did snitch and sent her the letters
and clips of some of the “Christian “ pastors,
who it appears took the bribes. 😖😵💫
I notice she has not received a lawsuit….
Discovery process would be……interesting.😳
Rumble
TO CATCH A PREDATOR! Israel BRIBING Pastors And Influencers. | Candace Ep 207 – YouTube
Copy of letter…Rumble
Candace Owens on X: “Noticing an increase in anti “Candace and Tucker” content. Today we showed you verifiable proof that Rabbis in Israel are offering, among other things, BITCOIN to pastors to preach against us on Sunday. Read the email from Rabbi Shlomo Riskin! THIS IS DEMONIC. https://t.co/FBUGg5GjJ9” / X
Rumble edition:
https://rumble.com/v6wstig-richard-werner-exposes-the-evils-of-the-fed-and-the-link-between-banking-wa.html
Do I need to watch or is this something I can listen to in my car? Are visuals important?
Don’t need visuals. You can listen in your car.
We have been sold down the river many times, since 1913…110+ years.
These bankster demons must be cleaned out of our system, restoring our Republic back to We the People.
It’s really simple… buy assets that generate cash, cash for used cars, carry liability insurance only, get a 401k and live below your means. You will thrive and your kids have a template for success.
Sundance is excited about Werner because it is the first time the Main Street/Wall Street has been discussed outside of the Treehouse. Sundance has been talking about this for so long I cannot remember when he first started the discussion.
No one else mentions this dichotomy. It is not rocket science.
It is the exposure of the Government choosing service jobs and menial jobs for the American People at the expense of hollowing out our manufacturing and good paying jobs. It was/is globalism. We own nothing, rent, walk, pay down student debt.
Sundance may have just exploded onto the Legacy Media scene.
Watched part and fell asleep. Watching again today. If I understand this correctly, no wonder we can’t get ahead. Every individual bank, all over the world loans money. This money didn’t exist before the loan. So EVERY bank in the world prints money EVERY TIME THEY LOAN MONEY.
So the Fed, or any other quasi private central bank can set interest rates and “print” money any time they want. So can the US government if we are to believe Elon’s DOGE claim that there are 14 magic computers at DOD and elsewhere. And every bank “prints” money every time they loan.
That’s a LOT of money printing over and above the Fed, this must be exposed and ended along with ending the Fed.
Richard Warner makes economics interesting. His fascinating explanation of his solving the mystery of why excessive Japanese real estate prices coincided with excessive Japanese buying of foreign assets is fascinating. (Both were caused by excessive money creation by banks in order to fund asset purchases.) I’m going to urge my AP Macroeconomic students to listen to this interview this coming school year!
Sundance says that Trump is working on a solution to the problem of banks lending money for asset purchases by creating a parallel monetary system. The incompetent Jerome Powell (who doesn’t even understand that supply-side tax cuts reduce inflation) is trying to keep bank lending for asset purchases down by offering banks a high short-term interest rate if they don’t lend out their reserves.
There is also a long-term solution which my father (who got his economic dissertation under Milton Friedman at Chicago) co-authored in our book Balanced Trade. Our solution, called Balanced Trade Monetarism, has three planks:
1. Balanced Monetary Growth. The Fed keeps the money supply growing at the same rate as economic growth to prevent inflation and deflation.
2. Balanced Budgets. Small budget deficits when the economy is slowing followed by small surpluses when the economy is growing.
3. Balanced Trade. Using tariffs, as Trump is doing, to balance trade and enhance real investment when a country has a trade deficit.
Milton Friedman proposed the first two of these three planks in his book Free to Choose, but he (as well as Fed Chairman Alan Greenspan who implemented balanced monetary growth) didn’t understand the importance of Balanced Trade.
U.S. monetary growth and budget deficits so out of kilter at the moment that they cannot be restored to balance quickly without causing economic turmoil. But the long-term goal of the next Fed Chairman and the federal government should be to gradually move in the direction of all three so that, eventually, the economy can be kept on an even keel with steady economic growth.
Yeah, yeah, yeah… gosh, what an epiphany! /s
Repost:
Here’s a GREAT freeview documentary. His fix is not described other than passing this along to educate more people and preparing (he doesn’t say how) for the inevitable collapse of this system which will be “fixed” via The Great Reset.
The Biggest Scam in the History of Mankind (our financial system)
2013 · 30 min
TV-14
Documentary
Mike Maloney presents a fascinating look at the Federal Reserve [and associated components -W], involving secrets that impact your finances as well as the world economy.
https://tubitv.com/movies/586976/the-biggest-scam-in-the-history-of-mankind
“It was Henry Ford who said in substance this: ‘It is perhaps well enough that the people of the nation do not know or understand our banking and monetary system, for if they did I believe there would be a revolution before tomorrow morning’.” – Charles Binderup, 19 March 1937 in the House of Representatives (Congressional Record—House 81:2528)
Repost:
Watch this and you’ll end up knowing more than probably 99% of the people in the entire world about the subject:
Money as Debt I – Revised Edition 2009 (Full Movie) (46:20)
From “Money as Debt” which PROVES the following to be true in GREAT DETAIL.
“Isn’t it astounding that despite the incredible wealth of resources, innovation and productivity that surrounds us, almost all of us from governments to companies to individuals are heavily in debt to bankers. If only people would stop and think, “How can that be? How can it be that the people who actually produce all the real wealth in the world are in debt to those who merely lend out the money that represents the wealth?” Even more amazing is that once we realize that money really is [created from the issuance of loans – W] debt, we realize that if there was no debt there’d be no money. If this is news to you, you are not alone. Most people imagine that if all debts were paid off the state of the economy would improve. It’s certainly true on an individual level. Just as we have more money to spend when our loan payments are finished, we think that if everyone were out of debt there would be more money to spend in general. But the truth is the exact opposite. There would be no money at all. There it is. We are totally dependent on continually renewed bank credit for there to be any money in existence. No loans, no money.”
“Banks create [via the issuance of loans/debt -W] only the amount of the principal. They don’t create the money to pay the interest. Where is that supposed to come from? The only place borrowers can go to obtain the money to pay interest is the general economy’s overall money supply, but almost almost all that overall money supply has been created exactly the same way, as bank credit that has to be paid back with more than was created. So everywhere there are other borrowers in the same situation frantically trying to obtain the money they need to pay back both principle and interest from a total money pool which contains only the principal. The big problem here is that for long-term loans such as mortgages and government debt, the total interest far exceeds the principle, so unless a lot of extra money is created to pay the interest, it means a very high proportion of foreclosures and a non-functioning economy. To maintain a functional Society, the rate of foreclosure needs to be low and so to accomplish this more and more new debt money has to be created to satisfy today’s demands for money to service the previous debt. But of course this just makes the total debt bigger and that means more interest must ultimately be paid resulting in an ever escalating and inescapable spiral of mounting indebtedness. It is only the time lag between money’s creation as new loans and its repayment that keeps the overall shortage of money from catching up and bankrupting the entire system. However as the bank’s insatiable credit monster gets bigger and bigger, the need to create more and more debt money to feed it becomes increasingly urgent.”
About that last paragraph, what that results in BY NECESSITY is an EXPONENTIAL increase in debt.
The downward blip starting at 2007 and resulting in a curve slope reduction was the Global Financial Crisis where debt was eliminated (“extinguished”) via bankruptcies.
Eventually, the slope of the curve which indicates the need for additional debt will be so high that new debt can’t be created fast enough. It is THAT which makes eventual collapse inevitable.
But this move will enable the extension of that for as long as possible.
Repost:
“GENIUS” Act… “PATRIOT” Act… GREAT names!
You Should Be Terrified Of The “Genius Act” (Here’s Why)
Rebel Capitalist
28 Jul 2025
I just had a conversation with an expert when it comes to Stablecoins and this quote unquote GENIUS Act. And I wanted to share some of the highlights of this conversation with you as quickly as I could because quite frankly, it was as disturbing as hell. And I’m not saying that lightly.
Now, when this GENIUS Act first was passed or they were talking about it, people were saying, “Well, it’s a backdoor to a CBDC.” And initially, I said, “Ah, I don’t know.” Because in order to have a CBDC have all of these draconian and 1984 Orwellian type features, you would need everything on one ledger. That’s the ideal foundation, let’s just say and I didn’t see how the the GENIUS Act was doing that, but I wasn’t thinking it through completely. So once I had this conversation, then I kind of had the epiphany moment, the light bulb went off and I’m like, “Ah, I see. I see how this could lead to something incredibly nefarious, something that if you’re someone who values freedom and liberty, you should be terrified of.” And that’s probably putting it mildly, to be honest with you.
Two comments below that video:
They think we’re blithering MORONS. Get physical precious metals guys. Gold and silver.
When you go to cash in your gold – it will then become a new token on the chain. This loophole is closed.
The Silent March Towards Stablecoin Dominance
Jul 22, 2025
You will not be forced to use Stablecoins. You will be invited. Rewarded. Nudged. Your daily habits will slowly shift. Your tools will update quietly. One day, you will wake up and discover that nearly everything runs through Stablecoins. This will not be a top-down decree. It will be a seamless transition cloaked in convenience. Here are ten likely ways that this will happen.
00:00 Intro
00:31 Embedded in Apps
1:13 Transaction Efficiency
1:45 Yield Drives Platform Adoption, Not User Benefit
02:56 Regulatory Mandates by Proxy
03:34 Phasing out Alternatives
04:13 Banking Deserts
04:43 Corporate Payroll
05:08 Inflation Hedging Narratives
05:42 International Remittance Optimization
06:08 Default Financial Rail for Innovation
06:41 Conclusion
And what does THAT enable?
Repost:
Clickbait title. As detailed in the video, they are a symptom of the rigged system, not the cause.
Should Billionaires Exist or Are They a Plague to Society and Our Economy? (34:11)
Tom Bilyeu
14 Jul 2025
Excerpt:
“Debt-driven deficit spending policies have created structural barriers so daunting that younger generations are literally drowning under impossible financial burdens. Their path upward effectively blocked by America’s monetary policy, specifically endless money printing, has drastically inflated asset prices, saddled people with debt, and made homes nearly impossible to afford. It’s also created a bank bailout system that has made education and even health care insanely bureaucratic, debt laden, and astronomically expensive. Think about this. If you’re under 40 today, the mountain of debt you’re expected to climb out from under is unprecedented. Student debt alone now exceeds $1.7 trillion, shackling graduates before they’ve even started their careers, combined with a stark rise in housing prices, which have ballooned completely out of control due to inflation. And the result you get is a generation increasingly trapped economically. They can’t break free. And that leads understandably to frustrated people who call for more free stuff, government student loan forgiveness instead of disciplined lending and rent freezes instead of an actually free market, which by the way drives up housing prices.”
“…focusing on billionaires is like blaming a fever instead of the infection causing it. And the infection we face right now goes to the very heart of America’s monetary structure, economic incentives, and cultural values. Billionaires emerge naturally, inevitably from a system that rewards debt-driven speculation, asset price inflation, and entitlement instead of real productivity, genuine innovation, and disciplined ambition. Debt and money printing. Debt and money printing. That should be the area of focus. The inequality that makes people so angry arises out of debt and money printing. And the gimmies that angry people vote for only makes things worse. And so we begin to spiral. The more we deficit spend, the more inequality there is, the more inequality there is, the more we vote for a bigger piece of the pie. And the more we do that, the more we hollow out the middle class and create the phenomenon of the rich getting richer and the poor getting poor. It is mechanistic.“
“So, if you judge a system by its outputs and say that a system is is designed to do what it actually does, then we have created a system that is designed to leverage a crisis to transfer wealth.”
Who benefits most from massive deficit spending?
Note the 1983 inflection point both graphs have in common and the near vertical slope triggered by the reaction to COVID:
National debt by year:
Q: What was the percent growth in the wealth of US top 1% from 2020 to 2023? (the COVID crisis)
Grok 3 AI:
[snip – showed work]
Answer: The wealth of the U.S. top 1% grew by approximately 50.7% from 2020 to 2023.
And what does THIS eventually result in?
Debt-driven deficit spending policies have created structural barriers so daunting that younger generations are literally drowning under impossible financial burdens. Their path upward effectively blocked by America’s monetary policy, specifically endless money printing, has drastically inflated asset prices, saddled people with debt, and made homes nearly impossible to afford. It’s also created a bank bailout system that has made education and even health care insanely bureaucratic, debt laden, and astronomically expensive.
What they always depend upon – people voting for easy but WRONG answers like a Marxist mayor for NYC.
“There is no difference between communism and socialism, except in the means of achieving the same ultimate end: communism proposes to enslave men by force, socialism by vote. It is merely the difference between murder and suicide.” – Ayn Rand
If you own something, it is an asset; if you owe something, it is a debt. You can sell something or you can buy something. Also, you can gamble. Everything else is mumbo-jumbo.
The entire series is great but this episode goes into how debt based currency system works.
Because the banking cartel can control the credit supply it can create assets bubbles and collapse. In the collapse, what the banking system owes you will be gone, but what you owe the banking system will be required.
Federal Reserve made the conversion in 1973-74 period to hide the cost of inflation which open up the credit card flood even more to allow main street to keep up with inflation. Cash (dollar) was only going so far to live on.
Top comment below the video excerpt linked below:
“One Nation Under Blackmail”
Answer to that:
“Tucker needs Whitney Webb on ASAP”
“Somebody Came to Visit Me” – The Book That Exposed Central Banks and The CIA Tried to Bury (12:36)
Tucker Carlson Network
29 Jul 2025
Interestingly, he mentions Greenspan and his bubble, the second one after the dot com bubble (we’re now in the Everything Bubble, far too large to be bailed out from).
This is an excellent, not well known book I read when it came out in 2008. One of the points it makes is how seriously manipulated government economic data (ex., CPI) is fed into models created from simplistic garbage economic theory. Output = Garbage Squared:
FAR too large for bailouts next time.
Tick, tick, tick.
Derivatives Quadrillion Play: How Far Away Are We From A Second Financial Crisis?
Mar. 23, 2010
https://seekingalpha.com/instablog/585690-dk-matai/60082-derivatives-quadrillion-play-how-far-away-are-we-from-a-second-financial-crisis
(15 years ago – W):
Warren Buffett famously referred to derivatives as “financial weapons of mass destruction”. Derivatives are financial contracts, or financial instruments, whose values are derived from the value of something else, known as the underlying…the global size of the derivatives bubble which was calculated last year at USD 206k per person-on-planet, has fallen to USD 149k per person-on-planet. In parallel, since peaking in the second quarter of 2007, US household wealth is also down by USD 14 trillion. It makes one wonder, how much of the perceived wealth is real, and how much is illusory? “Walls-of-Money” that are no more than leverage, levitating and underpinned by derivatives-based-instruments manifest as complex securities.
[big snip]
The relative scale of the world’s financial engine is as follows (15 years ago – W):
1. The entire GDP of the US is about USD 14 trillion.
2. The entire US money supply is also about USD 14 trillion with rising Quantitative Easing in trillions.
3. The GDP of the entire world is USD 45 trillion. USD 1.048 Quadrillion is 23 times world GDP.
4. The real estate of the entire world is valued at USD 60+ trillion, including home equity in the US, which was valued at USD 13 trillion at its peak in 2006, and dropped to USD 8.8 trillion by mid-2008 and is still falling.
5. Total retirement assets, Americans’ second-largest household asset, dropped by 22%, from USD 10.3 trillion in 2006 to USD 8 trillion in mid-2008.
6. The world stock markets and related investments are valued at about USD 75 trillion.
7. The trans-national universal model financial institutions own about USD 150 trillion in derivatives at market value.
8. The population of the whole planet is around 7 billion people. So the derivatives market represents about USD 149,000 per person on the planet.
[big snip]
Conclusion
The USD 1.048 Quadrillion Play of derivatives remains colossal at 23 times world GDP. Even if 1% of the derivatives pyramid loses counterparties because they have become insolvent, that is more than 10 trillion dollars of a black hole. If that 1% becomes 5%, that is more than 50 trillion dollars, ie, more than the GDP of the entire world.
The possibility of a house of cards collapse is still very much on the table, and should one begin, the flexibility of governments to avert it will have been reduced by the enormous debt they’ve run up trying to paper over the first wave of The Great Unwind and The Great Reset (note those terms being used in a 15 year old article – W).
But the Chinese read it:
Geez, I don’t have three hours. I do come with 45 years of business, finance and economics training. I asked GPT to summarize in 1000 words. Then I asked it to drill down on the area i found most interesting and relevant to the discussion.
Disaggregated Credit—Werner’s Central Insight
Quantity Theory of Disaggregated Credit
Werner distinguishes between two types of newly created credit:
CR: Credit for the real economy—loans to businesses, infrastructure, innovation, jobs.CF: Credit for asset speculation—property, financial instruments, government bonds.
By disaggregating credit, his model reveals that economies may be flooded with credit overall but starved of funds in the productive sectors, stalling real growth and boosting inequality.
Aligning Credit with Purpose
Werner argues that sustainable growth hinges on shifting bank credit toward real‑economy lending (CR). Most Western economies, however, tilt heavily toward CF, fueling asset price inflation and leaving the real sector undercapitalized
Why Werner’s Alternative Economics Matters
By redefining how monetary supply enters the economy, Werner shifts the focus from central bank rate manipulation to who allocates credit and to what sectors.His approach challenges prevailing policy: banking regulation, inflation targeting, and macro stability must incorporate credit allocation governance—not just quantity control.By advocating decentralized monetary systems and meaningful community banks, his model addresses inequality and fragility more directly than mainstream frameworks.His warning against CBDCs and programmable money is timely at a moment when digital currency trials are accelerating worldwide.TL;DR – Key Pillars of Werner’s Alternative Economics
Banks create 97% of money through credit; they don’t lend existing deposits.The policy variable that matters isn’t interest rates—it’s credit allocation (who gets credit and for what purpose).We must disaggregate CR (productive credit) from CF (speculative credit).Sustainable economies need decentralized community banking systems focused on local, productive lending.CBDCs risk total economic surveillance and should be viewed with caution.Blockchain-based systems like SORA offer a practical blueprint for a new monetary order — elastic, democratic, and productivity-focused.
Werner’s alternative economics reframes the debate around money and banking—from passive intermediation to powerful credit creation and allocation. It proposes structural shifts: diversified banking, democracy in monetary governance, and technology that aligns finance with real‑world utility.
“Banks create 97% of money through credit”
That only creates the principle to be paid back which leads to the fatal flaw IDed in the “Money as Debt” video I’ve linked to here many times. That video is only 47 minutes long.
Excerpt – the fatal flaw:
“Banks create [via the issuance of loans/debt -W] only the amount of the principal. They don’t create the money to pay the interest. Where is that supposed to come from? The only place borrowers can go to obtain the money to pay interest is the general economy’s overall money supply, but almost almost all that overall money supply has been created exactly the same way, as bank credit that has to be paid back with more than was created. So everywhere there are other borrowers in the same situation frantically trying to obtain the money they need to pay back both principle and interest from a total money pool which contains only the principal. The big problem here is that for long-term loans such as mortgages and government debt, the total interest far exceeds the principle, so unless a lot of extra money is created to pay the interest, it means a very high proportion of foreclosures and a non-functioning economy. To maintain a functional society, the rate of foreclosure needs to be low and so to accomplish this more and more new debt money has to be created to satisfy today’s demands for money to service the previous debt. But of course this just makes the total debt bigger and that means more interest must ultimately be paid resulting in an ever escalating and inescapable spiral of mounting indebtedness. It is only the time lag between money’s creation as new loans and its repayment that keeps the overall shortage of money from catching up and bankrupting the entire system. However as the bank’s insatiable credit monster gets bigger and bigger, the need to create more and more debt money to feed it becomes increasingly urgent.”
About that paragraph, what that results in BY NECESSITY is an EXPONENTIAL increase in debt.
The downward blip starting at 2007 and resulting in a temporary curve slope reduction was the Global Financial Crisis where debt was eliminated (“extinguished”) via bankruptcies.
Eventually, the slope of the curve which indicates the need for additional debt will be so high that new debt can’t be created fast enough. It is THAT which makes eventual collapse inevitable.
Ok this is crazy.
I used to teach Macroeconomics in Paris in the late 2000’s. And this NEVER MADE any sense to me!! (The fractional reserve piece). But I taught it anyway! It was in all the textbooks. And I’m no Ph D. I just figured that it was over my head.
Another case of ‘I should have figured there was something wrong!’
Borger there is nothing wrong. Good banders loan money to people and businesses that will create more money.
I borrow 1 milion dollars to build a bigger factory. I make 200,000 more each year selling my widgets. I pay the bank off in 5 years and the US economy has grown both GDP and Profits. Capitalism is a great system.
A bank knows how much money it must keep on hand for its depositors to get to quickly. Anything over that can be loaned. Lots of times people borrow money and deposit right back in the same bank and then begin to use it. It is a great system to grow an economy. But it being a human system, we can still screw it up and there are crooks out there.
I watched the interview and found much that I agreed with as the basic premise was that small home town banks was the rock that the foundation of economic prosperity needs to be built upon.
I do not view President Trump as one who adheres to this view as he has been no friend to the small bankers but has been big on big banks where we have seen huge consolidations in his first term and continuing shrinking of branches and consolidations into this term. Just the opposite of Werner’s recommendations. President Trump is definitely for Main Street but he cares very little how the liquidity gets there. Bessent has continued and expanded Yellen’s use of short term Treasuries to hold down rates putting us at record high with short term borrowings. Part of this has been to counter Chairman Powell, but it is still a whole lot of smoke and mirrors for short term gain.
President Trump has also embraced crypto which to me will lead to a future disaster along the lines of the tulip bulb or the derivative crash. Nothing good can come from something that produces nothing of value. It is also just another major step in government control using digital currency and the ultimate Centralized Digital Dollar which will be used to control all social and economic aspects of the citizens.
He is using short term borrowing because he knows rates are going to go down soon. The short term stuff will get a lower interest rate Quicker.
Explain why economics doesn’t fit the definition of a science.
Grok 3 AI:
Economics struggles to fit the traditional definition of a science because it lacks consistent reproducibility, precise predictability, and controlled experimentation, which are hallmarks of fields like physics or chemistry. Here’s why:
1. Human Behavior is Unpredictable: Economics studies human decisions, which are influenced by psychology, culture, and emotions. Unlike natural phenomena, human actions don’t follow strict, universal laws. For example, economic models assume rational behavior, but people often act irrationally—panic-buying during crises or making emotional investments.
2. Limited Controlled Experiments: Sciences like biology rely on controlled experiments to isolate variables. In economics, controlled experiments are rare because you can’t isolate a single factor (e.g., interest rates) in a complex, interconnected economy without external influences like politics or natural disasters muddying the results. Field experiments, like randomized trials in development economics, are limited in scope and scale.
3. Non-Reproducible Results: Scientific experiments can be repeated with consistent outcomes. Economic events, like recessions or market crashes, are historical and context-specific, making replication impossible. For instance, the 2008 financial crisis can’t be recreated to test theories.
4. Falsifiability Challenges: In science, hypotheses must be testable and falsifiable. Many economic theories, like those in macroeconomics, are hard to disprove definitively because of vague predictions or reliance on unmeasurable variables (e.g., “consumer confidence”). Competing theories often coexist without clear resolution.
5. Data Limitations: Natural sciences use precise measurements. Economic data, like GDP or unemployment rates, are often estimates, revised over time, or incomplete, especially in developing nations. This fuzziness undermines precision.
Sundance,
In a 2017 article you wrote, ” President Trump and Secretary Mnuchin are working to create a parallel banking system of smaller community and credit union banks that are external to Dodd Frank regulations and can act as the primary commercial banks for small to mid-sized businesses.”
What is the current state of this attempt to create a parallel banking system?
See “Stablecoin” which is DIRECTLY opposed to that small banks idea by design. The largest banks WILL win. For details see:
https://theconservativetreehouse.com/blog/2025/07/29/must-watch-tucker-carlson-interviews-richard-werner/#comment-11981512
For just visual clues, just look at the large, enthusiastic crowd surrounding him. But, don’t fret because, as you well know, they always have YOUR best interests at heart (and Trump almost certainly doesn’t know the complex downstream effects of what he’s signing or at least I HOPE not):
Trump is most likely just not looking at the implications which require digging to find.
“Everything You KNOW Is a LIE!” – Whitney Webb & Mark Goodwin Expose Stablecoins (23:41)
(Interview from one year ago)
26 Jul 2025
“GENIUS” Act… “PATRIOT” Act… GREAT names!
You Should Be Terrified Of The “Genius Act” (Here’s Why)
Rebel Capitalist
28 Jul 2025
Excerpt:
I just had a conversation with an expert when it comes to Stablecoins and this quote unquote GENIUS Act. And I wanted to share some of the highlights of this conversation with you as quickly as I could because quite frankly, it was as disturbing as hell. And I’m not saying that lightly.
Now, when this GENIUS Act first was passed or they were talking about it, people were saying, “Well, it’s a backdoor to a CBDC.” And initially, I said, “Ah, I don’t know.” Because in order to have a CBDC have all of these draconian and 1984 Orwellian type features, you would need everything on one ledger. That’s the ideal foundation, let’s just say and I didn’t see how the the GENIUS Act was doing that, but I wasn’t thinking it through completely. So once I had this conversation, then I kind of had the epiphany moment, the light bulb went off and I’m like, “Ah, I see. I see how this could lead to something incredibly nefarious, something that if you’re someone who values freedom and liberty, you should be terrified of.” And that’s probably putting it mildly, to be honest with you.
The Silent March Towards Stablecoin Dominance
Jul 22, 2025
You will not be forced to use Stablecoins. You will be invited. Rewarded. Nudged. Your daily habits will slowly shift. Your tools will update quietly. One day, you will wake up and discover that nearly everything runs through Stablecoins. This will not be a top-down decree. It will be a seamless transition cloaked in convenience. Here are ten likely ways that this will happen.
00:00 Intro
00:31 Embedded in Apps
1:13 Transaction Efficiency
1:45 Yield Drives Platform Adoption, Not User Benefit
02:56 Regulatory Mandates by Proxy
03:34 Phasing out Alternatives
04:13 Banking Deserts
04:43 Corporate Payroll
05:08 Inflation Hedging Narratives
05:42 International Remittance Optimization
06:08 Default Financial Rail for Innovation
06:41 Conclusion
Great discussion Treepers! Lots of suggestion for further reading.