Got us to where we arent from 2016 to 21000 and then well talk about how to fix that ok well 1st of all everything you said is connected so so so let me go back in 2008 what happened was we had an acute financial crisis predicated on the fact that banks created all of these toxic securities and then lend lend money to other banks to buy them and lend money to small towns in norway and california and Pension Funds to effectively buy toxic assets created out of credit they had lent through the Mortgage Market that happened the fed came in and in an unprecedented manner the Federal Reserve decided that the way to fix this. Amidst a dramatic kind of experience that occurred with hank paulson former c. E. O. Of Goldman Sachs and treasury secretary at the time on his knees in front of nancy pelosi who was speaker of the house then and now in congress and he said you have to help the banks so fed wants to help the banks Treasury Department wants to help the banks because otherwise supposedly all mayhem is going to break loose no money will come out to people that said ok brought rates down to 0 and where the collusion comes in is it wasnt just the fed the problem that the Financial System cause from wall street throughout the rest of the world was so big that not just one central bank could make money cheap enough could create enough artificial money by itself and so the fed did collude did Work Together with the European Central bank with the bank of england with the peoples bank of china later that was kind of separate story with the bank of japan and so forth to create enough money to put into the Financial System to keep it safe for itself and all timidly what that did is a transferred all of that money into the banks into Financial Assets into burgeoning stock markets like like a ton of sort of crack into an attic up and up enough never took that away and that meant someone else was going to pay on the other side and the people who paid on the other side was everyone else in the world citizens throughout the world in the u. S. In all of those countries throughout the global real economy because they didnt have access to money be any money they were saving now was getting no interest so anyone who was expecting a pension all of a sudden wasnt going to get what they expected and throughout the system many many things started falling apart that made people pissed off that made people decide you know what our governments in charge of this thing that happened to us that we cant even define screwed up so massively we need to vote them out so we need to vote out you know Democratic Administration you know when obama leaves we need trump you know we need because we need the you know the u. K. To be separate from the e. U. And so forth because absent really understand. Then how this occurred why it occurred and who to go after everyone was uncomfortable and still is because they economically have have way gotten behind because of this well from my memory is the like it wasnt even just they people were angry they knew that somehow they had been robbed they might not have understood that this was the source of their kalu the collusion they cause their declining income and their declining Living Standards but they just they trump promised to wreck everything breaks it when we were watching the news there they told the elite on the news told the population if you vote for breaks it there will be chaos and roone and they thought well our lives are chaos and ruin already so if we can bring it to you then were all in the same boat now so were going to equal that out if you wont bring in policies that are going to restore the wealth and income gap to a more reasonable level then well do it. Right here on the Summer Solutions you know lets talk about the solution because you know weve talked about the central bank problem for many many years in the can tell us so is there an alternative as a solution to Central Banks and only things well 1st of all i think we need to get rid of the way that the Central Banks operate and ultimately therefore the Central Banks from the standpoint of being able to just unilaterally decide above governments above votes above people above the real economy who create money for an end give it to them that that in and of itself is not healthy for anybody but the people there which is again if you are not doing anything else sort of around our modern monetary theory about a suit talking about kind of a new brand of socialism. All kinds of andrew yang of the universal basic income theres some theres some pushback and some new ideas what do you think could be a way to come up with something to replace Central Banks or modify Central Banks but something a solution so 1st of all take the assets that are currently on the books of all the Central Banks dont create more of the problem with m. M. T. Monetary theories that suggest that we can somehow create more debt in the Central Banks will be involved and then that will therefore go to the general economy which it hasnt done it thats just not the direction in which it goes they are attached the fed is basically that the c. E. O. Of the Banking System and provide some money regulates the banks of the banks or members of that institution like thats not going to that structure has to go away you cannot have the Financial System be members of a central bank that provides them cover when they screw up that entire system has to be demolished but also the debt that currently exists because it does that that the Central Banks throughout the world have purchased house to be repurposed or redistributed back into the economy from which it came and actually redistributed repurposed into infrastructure building into social programs and to weigh in. Which we solidify the economic strife is individual so it has to be turned around some of it has to be forgiven and Central Banks cannot be structures that ultimately are the go to for money supply artificially to the Financial System in the meantime what people can do just in their day to day lives in terms of their own personal fix is not have money with these Private Banking institutions that have gone all of this free money from the fed and other Central Banks and are giving Interest Rates a basically 0 in return because theyre getting it so cheap it is cheap but theyre not even giving what theyre getting to their own customers and theyre charging them money to have accounts so people a person with an a 1000. 00 bank account just to put it into real terms has to pay 20. 00 a month to j. P. Morgan chase to have their money which a p. Morgan chase that is a 24 percent Interest Rate they are paying to j. P. Morgan chase or their savings account net of that is probably getting a quarter of a percent so 1st of all take that money out put it in banks like aspiration or somewhere on line where you can only get 2 point one percent at least get something beyond what the private banks are doing and show that shift show that sort of economic shift also away from companies whove been such great recipients of this free money and the sort of like you know financial crack from the Central Banks and again just so you remember we are on Summer Solutions where the location of malibu you have a target plane just flying right overhead i know like our engineers like to us to tell everybody thats why you hear a noise but lets again Central Banks now rig the world theres collusion how central bankers rig the world but it also comes from politicians politicians themselves have abdicated the responsibility get granted to them in our constitution for example we elect. Congress people senators and the president in order to you know shape policy including industrial policy and fiscal policy. But we dont have fiscal policy anymore and we dont have industrial policy its like its now considered i think theyre too afraid to perhaps like to say anything that might get them in the elected or i mean how do we restore that how do we get politicians to take back. Everything cant be just Monetary Policy because Monetary Policy can only give money to the bankers like thats its going to create a volatile situation so how do we get to a situation where you have fiscal policy again and industrial policy well i think just to go into what happened in last 10 years the mindset of politicians who were already associated clearly closely on all sides of all aisles are countries with with their banks with their largest Financial Institutions who basically if they dont support them directly support them through lobbying money or support companies that support them but in some manner support the politicians they get elected for the most part they never and still dont understand how. Manipulated all of the process was by by Central Banks particularly in the last 10 years it was congress that decided to have a Federal Reserve and the federal service act in 1013. 00 was actually passed by congress now the Federal Reserve acts independently supposedly of the elected officials in washington but the reality is they could choose to get rid of the fed tomorrow if they passed an act to do that see you mention that the congress had given the central bank the authority to print money that they that they gave them independence but of course its in our constitution in the Us Constitution it prohibits states from declaring legal tender anything other than gold or silver but does not limit Congress Power to declare what shall be legal tender for all debts so when we come back from break i want to shoot i want to ask you this question because thats interesting what the founders did not want is states had a lot of power especially in the founding they didnt want a state whether its virginia or North Carolina to be able to issue debt to a foreign nation and drive america into war drive america itself debt so thats why they forced them to have a sound money gold or silver only those because they issued debts against and they could not print money that might jeopardize the entire union so i want to ask you about whether or not we should remove this power from banks because its wall street banks that create almost all of our money so lets go to break. Discussion some are solutions i reports dont go away. If you will not obey the voice of the lord your god to do. And the state huge come on you this day. All these courses shall come upon you and overtake you or lead in the hands of white people that dont. And. You get rid of whites only problems will go 1. 23. People being tortured to death expression the elderly people in the. White. Means and greens its all sweat and. What are you going to have for dinner today we dont have a need for the. Civil war in south africa never to. Be in the tone of your and to get. To what weve got to do is identify the threats that we have its crazy to. Let it be an arms race. Spearing Dramatic Development only really im going to resist i dont see how that strategy will be successful. To sit down and talk. Do you know the moon through it in your circles. And you can move into much for clues a little bit to do more. Why did good. In the sims. You know made it seem strange. Did he do. That. Welcome back Summer Solutions cause a report shooting in malibu of course and a lot of tourists here so youll hear the occasional plane or chopper or a fleet of drones overhead whatever stacey you were getting into something that was really incredible and im talking about this recently i was gobsmacked its so true so important please continue well because were looking for solutions for our modern situation remember occlusion how central bankers rate the world its always been mine to maxs position here in kaiser report that the coo lucian that we should have been looking at over the past 2 or 3 years the collusion that led us to be led by. Donald trump and for breaks it disaster to happen the collusion was this this was the original clues and thats the original sin any of this other stuff was a distraction from this but i wonder like when the Founding Fathers thought of that notion that recognize that individual state in the United States could jeopardize the entire union by getting into too much debt by say lending to argentina and that that could jeopardize the entire union if it forced the United States to go to war for example over their debts. Is that how do we remove that power from not just Central Banks but their member banks which is wall street banks they create like 95 percent of our money dont they they distribute most money that the fed effectively creates so they distribute and therefore create upon it all the sort of the leverage all the speculative money that goes into the Financial Assets battered markets and excedrin so they are their interval to that and they were entered to creating the fed to begin with then in 1000 there to 910 when j. P. Morgan and i wrote about this a lot my last book and all the president s bankers. All of his lieutenants from the major banks in the wall street area at the time as well as Nelson Eldridge who was the Senate FinanceCommittee Chair from rhode island they got together and they figured out how do we create a system alternately that helps them they were afraid that there could be a panic or crisis and the wall street banks wouldnt have enough access to credit amongst themselves that was the entire point it was sold to the American Population is a little help farmers because people in the midwest wont have to worry if theres a crisis on wall street because theres this ultimately Federal Reserve entity thats going to take care of all of the States Credit issues of all the states finances shoes and all of the liquidity when and if necessary in the case of an emergency there was no war at that time of course a few years after that we had world war one in that there was a lot of putting into action of that idea but to create money not necessarily to help other components in the country when the states were creating their own debt back before that banks were also creating their own debt we had a system in this country originally where banks created banknotes and states created their own notes and effectively someone from virginia could go and trade with someone in rhode island and there would be some idea of what that exchange would be but they would be gold or silver backing it so there would be some benchmark i which the person in rhode island in the person you know in virginia could know that there was security in the value of their money to some extent there could be fluctuation but there was Something Real something tangible goal or civil backing it that kind of leveled all of the debt that was being created and there for all the trade that was happening as well as the decisions that any one state with any one bank could make with regard to Foreign Policy or other types of major policy so basically have the effect of leveling all of that when the Federal Reserve was created because we still had a Gold Standard and there were still some leveling of that effect but with this idea little timidly the fed would be there in the case of financial crises for the Banking System 1st and foremost because they pushed to creep. When we got to 1981 when the Gold Standard was completely repealed and abolished under the Nixon Administration it was because thats what bankers wanted they were like ok well we got rid of it on the state level we push legislation to get rid of it on the state level regardless of what had been founded or considered in the constitution and now we need to find a way to get rid of it even at the federal level through the Federal Reserve and that was one of the reasons they pushed to get off of the Gold Standard so they would no more be like a solid real last the benchmark currency and that was the idea of having more money the dollar becoming prevalent even more so than it had been after world war 2 and as it is now in the rest of the world the idea was to get away from a real asset and away from that benchmark and thats where we are today and thats why in the financial crisis the solution that the fed and colluded with other Central Banks to do was create all this money out of nowhere to plop up the Financial System the banks and Financial Assets because it could none of these banks now at this point have a tie into gold or any other real asset or even a portion of the asset against the currency they could create thats where were at now the Banking Sector their revenues were up 10 percent in the past year so this is against a backdrop of the real economy and the ordinary people their incomes are declining if anything so i mean this seems to be. You know heading into 2020 i just get worried about the way there is a meltdown in the elite class you do see it from hollywood and from new york they are melting down they are terrified of the people because they put those people in that situation the vast majority of the population do see an unfair situation do we return to a Gold Standard do we return to jim rickards was a global s. G. R. So at least between nations theres. More you know the u. S. Wouldnt be able to run such huge deficits and therefore they would have to put people to work in order to create wealth to send overseas how do we restore that how do we make America Great again i just think that goes back to something that you said in the very beginning of the show which is why dont we have an infrastructure policy right why dont we have a policy that actually talks about the creation of wealth as defined by real Economic Growth and real things and Real Technology and real high speed rail loads and real better hospitals that people can afford and why arent we actually why isnt that the thing that the governments that we elect you know trying to ultimately do and theres a lot of reasons for that one is that people dont necessarily know whats going on and so therefore they think that theyre going to vote for someone who says theyre going to do things on behalf of america or on behalf of other countries but in fact they dont have a plan to do that or dont have the wherewithal to actually push through and restructure social policy or anything else think it all into these political arguments about that people hear that they pick a side because they want to pick some side because they know theyre frustrated some people pick the side of lets get more nationalistic lets get more internally focused some people think the side of lets get more socially focused lets get more progressive and then net you know you have this sort of impasse but ultimately what that is creating as a lot more tension among citizens within their own countries and then with respect to other countries that doesnt help with respect to the u. S. Deal with respect to getting currencies that allow more trade to happen between more nations so that the u. S. Isnt necessarily the be all and dodgers stick to all of this going on that has been happening in the wake potential the financial crisis. Does include that basket now the chinese currency the remember in a small amount relative to treat but in decent amount relative to the rest of currencies in that basket so theyre projecting that the sort of chinese contingent the asian contingents going to grow with respect to both currency and trade usage right now its still very small in trade. I see its. Theyre in trade and so you know if there were i dont think theres ever going to be a Gold Standard because youre just going to have too much political right against it but to incorporate say gold into the u. S. To your or into the components of currencies and again you start to bring back a little bit of a leveling effect throughout general to mean it just seems like absent a global trade unit of account that is kind of a gaslighting Global Economy is like a gas slice the organ area people because they are still most people still think of economics work in the world operates preone 971 and they still think that way our economic history is taught that way for example maxs mention nobody no textbook in history has ever even suggested that negative Interest Rates are possible like thats not supposed to be possible right so like we most people continue to operate as things are taught and as they are supposed to be on paper but the fact that we have this magical. Money that only bankers and Central Banks know how much is being created know what the how how much for all there is how much real economy there might be backing all of their debt it feels like theres a ghastly global gaslighting situation you know there is i remember us have a conversation with the shadow its checker in the u. K. A number of months ago about just the bank of england you know just as one of them and saying to you know. Where that money theyve created has gone and i did you can you actually draw a line and hes like no im like well maybe i should be a question that you ask any part of the market it should be a question thats asked that was one of the reasons i was on Bernie Sanders around federal Advisory Committee was to get an idea transparent where is this money actually going because. The whole then is that at least the people who have the ability to legislate in some manner relative to it will decide that its being misdirected or at least think about it for a moment which which which. Hasnt been hasnt been the case well its ok to continue with that gaslighting theme is like a lot of people here in malibu wanted to go to u. S. C. And they worked hard and they did Extracurricular Activities and they volunteered and they got a great grades and they applied for at u. S. C. Well you know Felicity Huffman daughter is just smarter than i am and she works a little bit harder and im the loser that didnt get in im the one i didnt work hard enough but at the end of the day what the truth was was they were paying through the side door to get in and thats like this Global Economy where we dont have a unit of account whereby anybody in idaho or in malibu or anywhere in europe they all know what the actual number is that it can be obfuscated through their derivatives and their fake money well and they also know to extent that money is more real you know even at the very top esoteric level then it can get as inflated throughout all of these levels for the people as best in the very top echelon of the stock market and are making the most money out of that they can therefore distort you know whether its you know its a Hollywood Star whether its a wall street executive whoever they have the ability because they have that extra money coming in through sort of artificial manner to distort the entire cost structure of like everyone else and one of the reasons even Health Insurance premiums are so high in the us is for lots of reasons but one is the fact that there is a very small amount of people who can pay very high premiums and as a result absent legislation or regulation or medicare for all or you know universal health care you have this money going to the top and therefore inflating premiums inflating College Tuition inflating real estate values and so people that arent in that to begin with fall further and further behind and thats where that gaslighting you know youre talking right. Missions college admissions. The currency used to. Stock in the Facebook Stock had been gifted to them didnt even have to buy that Facebook Stock and then of course do can tell in effect the money printing Facebook Stock goes up 5600 percent and they can use it to bribe their way into university and so the cycle of. Perpetual motion machine 10 percent of people in the United States own 90 percent of the stock market so and if theyre gifted stocks beyond that you know effectively all of that any quality it results from the back of that is is predicated on how Facebook Stock even grew or any of that last 30 seconds Quick Solutions return to a Gold Standard glass steagall what ought at the fed what it was about was the number one answer. Return to class to go so that you can actually have banks disconnected from peoples money so at least they dont have the ability of the fed to back them then you get rid of the way that the fed operates or the fed itself from the standpoint of being a membership only organization how theyve worked with the rest of Central Banks around the world to create money out of nowhere take the money theyve created redistribute it and giving more than one answer to that is to pay their mailing out of me and have people take their money out those banks at least get some interest on it yeah all right well some are Solutions Episode one dummy prince a smashing success thats it for kaiser report Summer Solutions thanks for watching want to catch a. Twitter its kaiser report if you want to just be an overall good citizen just keep watching the show until next time. During the Great Depression which almost remember that it was. Working. There wasnt it was you know much worse objectively. But there was an expectation of the things youre going to get better. A real sense of hopeful reason to do these im. Was shaped by the turn principles of concentration of wealth and power. Reduced democracy attack solo doubt engineer elections manufacture consent and other principle holds according to no on chomsky one set of rules for the rich opposite several so. Thats what happens when you put her into the hands of a narrow sector of wilf which will is dedicated to increasing power for itself just as youd expect one of the most influential intellectuals of our time speaks about the modern civilization of america. What politicians do so. They put themselves on the line they did accept the reject. So when you want to be president. Or something want to press. Thats why the press is like the 43 a boy cant be good. Im interested always in the waters about how. This should. People