Host George Gilder how many books have you written . Guest 17 that won its 18th. Host what are the topics . Guest politics politics, marriage and family, sex, money family, sex, money, wealth, poverty, a technology technology, microchips, life after television. Knowledge and power which i really think is my books that sums up all the various subjects through the exposition of the information theory which is of major scientific breakthrough of the century is information theory behind all of our technology and i think the best explains our economy. Host du a device as an author or consultant . I am not a consultant paul lai was named the 27th most influential consultant. They used to be a partner of mine. But i am chiefly a writer but also i have been an investor in a venture capitalist. And i. M. Serious about that it has supported me as much as my books over the years. Host which is your best seller . Wealth and poverty president reagans most quoted living offer. Host as a venture capitalist what have you invested in . Accompany the leading Knowledge Network company that creates Software Program that connects you to consultants and they have signed up hundreds of thousands of consultants you just call them with the 10 questions you want you answered and they will connect you to a consultant who can best to answer them and it has been a tremendous success. The company is worth billions of dollars and that was the first major investor also another company which is fabulous next Generation Internet company with 3d images across the internet to sign an agreement with the National Hockey league to transmit 3d images of hockey he was in the future. Games in the future. Also Israeli Companies to support various Companies Including ec chip and one that will eliminate the cell phone towers by moving all the processing from your cellphone complex voice processing to data centers and that means all that you will need to collect a signal from the sulfone cellphone will be a small antenna. It could be a shirt cater just a simple and than now whether a complex Computer System that is involved with the big sell towers. Ubiquitous and tennis and mostly invisible then i have been supporting another company that wants to move drug production and pharmacology away from big drug factories around the world or wherever they are to the human body itself. It has trillions of ribosomes that can be programmed to produce any proteins or molecules that you need for a lifetime. If you change the dna of the immune system it can permanently correct chronic conditions started by a young Computer Scientist who saw a discovery is to to which i was the founder and he saw the human body is like a computer and is programmable and set out to program it and peter is also a major investor in the world. Host how did you become you . How did you get started . Guest i started writing speeches for politicians. Probably my real shape being experienced was in lansing michigan for a whole year writing a book for George Romney who was running for president called the mission and the dream. I was in a motel room and they didnt pay me regularly with a reckless campaign and east lansing michigan was not that inspiring. But i learned economics when i was out there. The mission and the dree revolved tenures later to wealth and poverty. But i have previously developed the idea is almost suicidally unhappy but that was the experience. Host who is your favorite economist . Probably hayek. Marks thousand is a terrific economist and is part of freedom fest. Host Milton Friedman . He is brilliant and a logical mind and Nobel Laureate economist, but this book minutest is a short book called the 21st is called the 21st century case for gold and it tries to refute Milton FriedmanMilton Friedmans monetarism with a new information theory of money like paul krugman who is the New York TimesNobel Laureate columnist and conservative magazines have adopted and prevailed in the World Economy and as a result in a currency market that has 5. 4 trillion worth of transactions every 24 hours to read that is onethird every 24 hours, 100 times all electronic transactions with all the stock markets in the world put together it is 25 times from goods and services put together but every country fails because as a measuring stick the currency values are more volatile io and change more rapidly than the Economic Activity there supposed to measure. So this currency trading of 5. 4 trillion per day is an utter failure and it is based on the Milton Friedman belief currency should floats that has been adopted there really is the foundation for Monetary Policy around the world and this book targets targets that ridiculous way to use that the monetary index. Host then how do you said it . Day you return to the Gold Standard . Is that politically feasible . The Gold Standard has been a great success. If youll the industrial revolution, a 200 years of the fastest growth in the history of the world and then the stagnation since adam and eve. But the Gold Standard is measurable in part by identifying that we have established a government control of money from 1913 with the establishment of the Federal Reserve board. Since 1913, if you had 1 million scholars they would be worth a thousand dollars today. If you had 1 million of gold it would be worth 40 million today. The 40 million roughly corresponds to the growth of the World Economy. It is the measuring sticks of value that far exceeds the measuring stick of any currency as it becomes meaningless. The reason is because they are a part of what they measure and the essence of the measuring stick mitt hast to have value outside of the domain and measures. You dont with the measuring cup indicate and allow the plastic to melt but that is what the money policy does it actually takes the measuring stick to put it in the cake and the results that the economy is 35 percent of all profits generated from financial activity rather than real Economic Production and that is a dire problem. Host what is the Gold Standard . It is a message of valuing goods and services by a specific amount of gold. The reason it works in this capacity just through happenstance through history , gold has canceled out Economic Activity because as Mining Equipment and exploration has improved from nuggets out of streams in california for the gold rush to gigantic Mining Equipment of today, a gold has become more difficult to mine and as the equipment has improved, so in effect the increasing difficulty to go deeper and more remote and thinner distribution has canceled out the effect of a huge improvement of gold Mining Equipment and less gold as a measure of time. Gold is a measure of the time it takes to extract it. And because time is the element that remains scarce Everything Else is abundant time is outside of the economy and a measure that everything that happens within the economy. Because the value of gold is rooted in time, it can provide a permanent long term measure of Economic Activity that is separate so you dont have these circles where the currency is valued by what it buys and it is deluged by the currency. It means the government gets to decide what the money is worth and who gets it. That is the definition of a bad economy where the government controls everything. Host to be on the Gold Standard takes the influence out . With a monetary standard standard, the way of entreprenuers in the economy decide whether resources they will using and what amounts, what products they will produce, where they will sell the of is all determined by another and that it for Friedrich Hayek to use money as an Information System and my book is a new information theory of money and i came to this theory that is contrary to all previous analysis of the Gold Standard because previous people thought it is as good as many as in jewelry that my friend told me know. Jewelry is my people and people cherished it because it is money. And money is separate from of the economy their roots value of money is time. I sort of came up with the idea but not fully because the inventor of the new Digital Currency bitcoin could ultimately become the important world currency, a bitcoin is exclusively based 20 about the impact of technology. So the computer power doubles 18 months over two years. So he was sorry if he made the bitcoin dependent and responsive to Economic Activity in the computer industry, it would not be a stable measuring stick but a function of the ingenuity of Computer Scientist. So he nullifies the advance of technology to make bitcoin explicitly based on the time it takes to mint and another block in the chain and this is the genius of the anonymous figure who we dont know who he is, although i have my suspicions and i discuss it in my book a brilliant mind you invented bit golden is a precursor to bitcoin and bitcoin is called for the internet because it has the same source of value as gold it has a value of time because it cancels all the other factors that it takes to produce it the same way with the bitcoin. It is everything but time and time is the perfect monetary measure because it is scarce and remains scarce when Everything Else is abundant time remains scarce it cannot be avoided and must be spent it cannot be stolen very well. It is equally distributed to everyone. The universal standard the one major constant of the universe. In fact, all major units of major measurements are rooted in time and i go through that in the book all of these measurements to the meter, the kilogram, ultimately a frequency of some factor that scientist look at the constancy of time. Host George Gilder is the 21st century case for gold written for the lehman . Guest yes it is. That was the intent. To assume an interest in economics and some sort of awareness of economic thinking but not a degree or anything like that a degree would prevent you from understanding it. [laughter] host why you say that . Economists have been taught they dont understand information theory. In my book knowledge and power i developed a new theory of economics based on information period it is completely different from adam smith incentive theory. Add nothing capitalism is the incentive system but the Information System. And Claude Shannon coming to a great inventor defines information as surprised and if everything i tell you today you already know, zero information has been transmitted. Information is the unexpected and shannon named the bit and the bite with the theories that underlies the entire internet the seven layers of the internet the physical, machine, wires , ap plications, and i believe we need a new step in the information theory that goes beyond shannon as a prize of information to layer number eight which would be a transaction where based on the bitcoin black chain. Block chain with a time stamp defense, and transactions, covenants, tit les, patents, fax and ways to establish fact on the internet without reference to third parties outside of the internet and i think tranten is bitcoin can transform the internet by a returning the power to their producers from the alligators of content. Today, largely there is no transactions layer of the internet, it is filled up with a clatter onethird of all web pages are bought and advertisements the popup band interrupt theory the protocol for advertisements but the power is of those that can aggregate the eyeballs to sell advertisements even though most of those is not wanted by the recipients it is the dash rather than the ad and we won value added advertising. And life after google will explain how we can have value added advertising but for a while content producers to collect their own payments and that is dependent on the big fabricators that is the real promise of bitcoin because it cannot make transactions to remove the hassle out from the internet. Host what do you mean by velocity . This is the flaw of Milton Friedman very which he recognized for the end of his life in 2003 he actually acknowledged that his moderate the rat barry that everyone has adopted was not successful. The reason is is equation is the money supply of the velocity equal prices times transaction and that assumes in that equation many rules and is the of factor to control Economic Activity. That assumes that money cannot rule on less velocity is stable. Part of the Friedman Nobel prize came from the theory of velocity that said it is stable with the psychology of human beings. People say when they are yong and there is the cycle that means velocity at any point is dependent in psychological propensity and it turns out to be anything but stable. During a the last recession the money supply rose like a rocket the highpowered from 800 million of the 4 trillion in rebuttal be rich if velocities stayed constant but that fell like a rock and all increases of the money supply were and all of nullified. All around the world, as japan and europe and the theory that turned out not to be correct of Milton Friedman so paul krugman very is incorrect in there because he is based their prescription for greece on the assumption of the moneysupply rule. So it is time for the information period and that is what that provides. Host talking with George Gilder his 18th book the 21st century case for gold a new information theory of money. Booktv on cspan2