There are other exchanges like that but how successful have they been so far . If you talk to investors on the exchange, all of a sudden in the problem as it manifests itself to investors they think there is a market and they think that indies stock markets there are 10,000 shares that are bid for microsoft at 20 a share. It doesnt happen when they go on so they have been very successful in eliminating the predatory activity. Its basically they dont want to be connected to them. There is no point. But the exchanges feel small. They are successful starting that Stock Exchange always takes time. Yesterday they traded 65 million shares. Its a fraction of the stock market. Its enough so that they are profitable or just about profitable and sustainable. But there is a break and break right now is 70 of the stock market orders are handled by the banks. Only one of the banks is actually treating the exchange honestly and the other seven are doing what they can to avoid sending the workers onto the exchange. So the pressure has to be brought to bear to start using the orders on the exchange when the customers ask them to. They started the activity of it but its changing. The book has been out for eight days. The norm is system for people if they ask for them to be directed this way for them to be directed. So, i think its a pretty hopeful looking situation. Thanks for being here. I would like your opinion when we look at the 50,000 additives when you have those like hank paulson that was in the Treasury Department and other former bank and government positions its sort of like the fox and the chicken coop regardless of all the things going on with highfrequency traders and that is they will wind up going to jail with some schlock and the other goldman executives that are purposely fitting against their clients and nobody is going to do anything about it because they wind up working for the banks. Host if you were to ask me that sort of question i would have thought you were a nutcase. Another conspiracy. Its absolutely true what you said, and you didnt just say it. A prosecutor that just retired stood up in front of the fcc and got applause and said the problem with this institution is everyone of you want to get a highpaying job on wall street and you are afraid to do everything that address the streetlevel crime and you want to be everything but polite to the people running the institution. We have no ability to regulate because we were corrupt by the money. Its a problem so how do you solve this problem . When he first discovers himself being front row very cleverly and is able to demonstrate he decides i ought to tell the u. S. Government because it would be rude to meet a statement without telling them because they want to do something about it. So she describes this to them and he needs after the conversation in which people say what is the problem with that . Nothing is going to happen. He thinks they are never going to do anything and he goes back to his Canadian Bank and they Start Talking about why would they be that way. They find out independent of previous three years when they left to go to work for highfrequency traders and lobbying firms they see believe me thats why they do that. The whole system seems to be riddled in the industry. This problem in the marketplace in this particular market is a microcosm of the larger problem and the industry generates so much money that its captured not just the regulatory process but the legislative process and i think it is futile to look to washington for a solution to the problem. However, we live in a country that people worship of entrepreneurship and marketbased solutions. So what is so clever about what he has done is he has created a solution that does not require much in the way as anything from washington. All they have to do is stay out of the way. And the people who are abusing the capital and i think that he will win and he thinks hes going to win. So, this may be the way forward and if you do this, if he succeeds i think that so much of this stays. If he succeeds and he has a huge successful Stock Exchange and hes gotten rich and a lot of the people that work for him they are young and entrepreneurial Venture Capital pools and to do it again and again and again in the different sectors of wall street and then all of you require at this point is for the regulators are the legislators not to get in the way of successful entrepreneurship and possibly introduce more transparency in the marketplace so that customers can make informed decisions about what they are doing. And its fixed. I think there is a path towards the marketbased solutions if the fcc promoted the exchange because they thought the competition other exchanges was good why at the same time with and they also allow investors to choose which exchange they wont . Its a really good question. The truth is there is a rule that does allow investors to insist it is another governing body that allows investors to insist on where their orders go thats being broken. So the rules are being broken. I dont know what kind of a violation it is. You will read about this in the newspaper. The rules are in place and the investors were exercising their rights they just have no history of it and they never ask where the order goes. Its hard for them to find out where it goes and how it is erected. So, it is a problem more historically it just never been done. Now it was a radical to go to fidelity or say start telling them where to send the orders because theyve never done it before and the bank was furious that they were telling them they were doing that but they are doing it. So now it is a matter of the rules being enforced more than anything else. After what you just said i can see the optimism would get turned around because the individual does have the power, but is it against the standard with the Municipal Bond to the places like alabama contracting . It is in the aid the financial markets. It is about the Interest Rate markets and the Foreign Exchange scandal. The commodities in the scandal why our markets all of a sudden so heavily manipulated by the big wall street banks . It probably because they can. Partly it is because the historic sources of the revenue for wall street have dried up and it has been cramped by dodd frank so part of it is response to the survival for the banks and the individuals in the ban banks. Its the same thing playing out in the stock market. And i think that is why its happening. Basically, technology has reduced the natural and the useful role played by wall street and eliminating it in some markets and you have to find other things to do. [applause] we are going to bring a table up your just get a couple of minutes to get organized. Barnes and noble is out on the patio and they have some mouth on cloud well books available for sale to the because theylln washington, d. C. In june. We are privileged to have with us a recognized figure in the Business World eyehole end editor in chief of Forbes Magazine in he has headed a Media Company that includes not only asian and european editions but a number of properties focusing on politics and sports and financial markets. Many of you will remember steve spirited campaigns for the republican president ial nomination to ritchie promoted the idea of a flat tax along with a new Social Security system and medical savings account and term limits and Strong National defense. Steve comes as the author that is not a new role for him and his cowritten five previous books in his sixth money is every bit as synthetic and reasoned and clearly written as the earlier works. Anyone familiar with his free market libertarian views will not be surprised to read his criticisms of Central Banks in the existing monetary policies with the fed and winding down quantitative easing steve sees an opportune moment to rethink the Monetary System to ensure a more sound and Stable Currency returning to the Gold Standard. He writes in the book trading dollars into gold was to make United States strong bird instead it has made the country weaker. Something has to be done. Ladies and gentlemen, here to explain what needs to be done along with his coauthor is steve forbes is [applause] spending thank you very much and for coming out as brad indicated the book is about money and Monetary Policy is one of those topics that seems to intimidate a lot of people for some strange reason and as a result the Federal Reserve has less formal oversight from capitol hill or congress van intelligence agencies. The thesis of the book is the topic of money is very straightforward and simple even though shrouded with equations and jargon the idea of money is very basic and we have gotten away from it and our policy makers today no less about money than they did 100 years ago. Since the early 70s even with booming decades overall the growth rate since to win of the Gold Standard the average growth rate was less than they were before 1971 and if we maintain those growth rates through 1971 on average u. S. Economy today would be 50 percent larger than it is now. 40 years refers, pounding adds up to a lot so just imagine having 50 higher incomes what that would mean for the death sitters Social Security or the social divisions today. Overtime this adds up it is a critical reason why it takes two incomes and a family to do what one income could do previously and taxes are large part but the debasement of the dollar was a critical part of its as well. When this happens you dont have a Stable Currency and end up with people not getting ahead the way they should begin in comes not growing the way they should and as my coauthor will discuss a fraying of the social fabric and social trust and divisions and it is a process that not one in a million could diagnose so that is why we wrote the book since Monetary Policy usually does not get the heart beating of flutter like the reality shows i will begin by giving you the advanced reward which is a travel tip if you ever find yourself in the airplane in coach watching your life pass away and you want some elbow room start to talk about Monetary Policy. They will cut a wide pass. [laughter] as a result of that chaos since the 70s the Federal Reserve has gotten up with more power but the more power eight gets the worst we are. If you take quantitative using even though they now tapir which is good, and ended up contracting the economy rather than stimulating. In terms of money, it is very basic and makes transactions how we improve our standard of living makes it much easier in the old days we could barter and was very inefficient and so if i sold it added for south i be paid . Maybe with a herd of goats i am being facetious but if the wanted to buy that ipad for the writers went to the apple store with my herd of goats the apple store said at 01 cosi one sheep. I have to figure out to swap the goes for the sheep and then they have to hire a sheepherder because you dont want the wall street the sheepman he wants to be paid in wind. I have read why ninetyones white wine and imagine if we still had it today to deposit the cash out into the atm . It becomes very inefficient. So but many does unless there is all polls coins but money makes transactions easier some with measures value. That is all it does. , the way clocks mr. Todd rulers a measure link then money measures value. This weeks transactions easier and it is a form of communication to let you know, the billions of transactions we do each and every day. Money and of itself does not wells but it represents a claim on products and services and think of it like a coat check and has no Intrinsic Value but with the restaurant you put your toe into the closet that represents a claim on the coat. The a. D. Effect creating money that has products and Services Already produced so the idea if we stimulate the economy to print money is like interesting restaurant sings coat checks will stimulate the production of more cuts. No. Does not represents a claim on a product or a service. Money works best when has a fixed value like a clock has 60 minutes imagines what the world would be liked if the Federal Reserve and then 48 minutes in 22 than 80 the next. You would have to have ribbons in derivatives. But if you bake the cake bakes them better 45 minutes is that inflationadjusted . It just makes life more difficult. Imagine what would happen if they named this we changed that inches in the foot or imagine building a house that makes things more chaotic. Money works best when it has a fixed value than the question becomes what is the best way to do it . Even though it is out of fashion in this country for the first 180 years dixit to gold. Why . Because it keeps Intrinsic Value as has over 4,000 years. You cannot destroy its every ounce mind is still in the world today and pointed out that reading it that you are wearing could have grains go back to the egyptian pharaohs you cannot destroy it. It is hard to make even the california egg will rush . It wont increase the supply from three 1 4 debt than the average of one 1 2 or 2 so you dont have to worry about storage or the mice ec and the gold. You cannot be stereotyped. It stable think if you mention gold then we have to have gold coin in San Juan Hill percent backing but think of gold as the ruler just a fixed measure of value. If we fix the of the iu. To leave the water above 1200 in the market place so it creates less money. Look 1200 marines you have to free money so let the marketplace determine the needs of city will have a vibrant economy but they knew what they were doing and they wanted to signal the market place and it worked up until world war i that lasted that. So in that sense it is like the ruler, the fact. Just to give one little fact to show how brilliant you are for this time the fire coin back to when you heard a Small Agricultural station of suze to of times during of one hand and 60 fold even though they did not attach itself to use the fix. If you have a vibrant touche timely if you have a segment nunnery, but it is very basic. So when people lose sight of that coming in that having when the lurch from one crisis to another with the terrible decade we kind of got it right in the 70s and 80s and moved ahead but the last decade we went backwards and started with the bush administration, a Treasury Department and Federal Reserve started to weaken the dollar and that is how we get the housing bubble. In any time you undermine the integrity of the dollar suze you part of last decade was a little over 21 barrels per and. Most of you to remember the 70s. I tried politics that did not work so i peddle books now. [laughter] but in the 70s we went 3 a barrel to almost 40 everybody thought we are running out of whale and it will go up at 100. It is like putting a virus in the computer if you dont trust the value of money in means less investment into are less productive investing is risky enough to you dont know if you will get back that 0. 100 or seven years or 0. 100 or 0. 80 or 0. 20 to add more uncertainty which is why we have been. So that is why we wrote the book money to represent value. Gold is the best way to fix that value in the free endosteum that then we can move ahead to get back to the growth rates before 1971. There are other things we have to do but experience shows if you dont get the money right you can get other things right but if you dont get the money right to issue will. Because when networks we dont realize what makes it work to amend the air when it is cleaved we take it for granted. Yes. And we have days after the bow facing into go way beyond hit him but one thing to keep in mind when it is stable before 71 when currencies did not fluctuate very little currency trading now that is a huge activity all round the world with the the volume of over 3 trillion. Tens of thousands focused on the activity that would not exist if we had stable money that could be used for medical research, other things, a productive thing this. This has consequences going beyond gdp or whatever other acronyms. Said know i will turn over to my colleagues elizabeth. [applause] good evening. It is good to be here. Of its like to talk about that chapter five which is many money and morality. It starts off with that famous quote from john maynard keynes. London was certainly right there is no sure means to overturn the existing basis of society into debauch the currency. The process engages the Hidden Forces of economic law on the side of destruction and in a manner not out what each one man can diagnose. And we say in the book of stable money is like Carbon Monoxide is odorless and colorless you dont know the damages doing intel is near be too late because people are not aware when they weaken the currency they just see the effects that is why debasing money is so corrosive. It isnt about greed but trust. People from all walks of life come together to conduct transactions based upon a commonly agreed upon a measure of value. In this way it promotes cooperation and serves as an instrument of communication what society values and its priorities. And stable money undermines the but the relationship between pyridium seller. The philosopher john locke described what is produced as societys scorer core of the injury is the same whenever a man is defrauded of his do. And to see a particular it scenario unfold. And also increasingly a course of the government. And recently the investment strategist wrote a piece to describe the scenario and points out that monetary eight debasement as not only coincide with of jews but also the french revolution reign of terror and other bloody episodes through is this centurys best this is not just in remote historical occurrence but taking place in the mideast but the reports that pitted predict the most trouble spots they can predict unrest basin nations rates of monetary abuse and syria that had to wonder hyperinflation followed by argentina, south africa, egypt, india, turkey all look which have inflated their currency and the political cause for this takes a different form but it is the catalyst and you remember the riots was over increasing food prices. We helped create a housing bubble and then pulling the rug out from under borrowers leading to the collapse that led to the coops to trigger the stock the stock market meltdown then interned set off a world wide destruction of trust and in europe and and then there would help those Global Investors with that debt crisis. We remember those days and one economist told the New York Times and the stage of bang goes around the world not around the block it doesnt matter if you have good or bad loans people lose confidence in new. That is obviously showing this is about trust in the day would corey there was the poll if there were more polarized now been inxa9 yet their time is that most of the increased not only the last few years but so is has coincided with the weakening of many. Students and when money is that people on fixed incomes have people losing and the you that looks like the unfair windfall gain. And the links between the effort and reward is severed that is what you get more corruption and crime. A number of studies have found inflation has a stronger connection to crimes they and joblessness. Crime rates dropped immediately after the financial crisis with the serious deflationary but they began to move up in 2010 during quantitative easing. These are just a few highlights from the chapter and this is a period of malaise but we hope this books hopes to put aside the fingerpointing to help recognize the role of the unstable dollar as the catalyst and the culprit. Thank you. [applause] so now we have q a come up to the microphone if you have a question. Rather then tried to ruin it debate the concept i would ask why have so many countries including the devastates dropped the Gold Standard and why is this theory and popular . John popular you mention the fact he gave the one in of million will correctly diagnosed of problems of that is a hint there is a basic fundamental reason why it is hard for people to understand for other economists. Except. Why do you believe there are so relatively few economists that accept your proposal . The reason why the Gold Standard lost dominance was a result of to catastrophes one was the first role for and destroy the classical Gold Standard and after that war they did not realize what made it work so britain did not do it right and tried to go back to it and after the war they tried to ignore the inflation the First World War created to pay get to the price which is ridiculous if you recognize the one time catastrophe then redo the reevaluation but keynes came along who said classical economists said real economy is the production of products and services of many e economy is the symbol of products and services san joaquin rivers that to save money is the real driver in the production of products and services that respond to the money to put the cart before the horse so they have the idea if you print money that could stimulate the economy and certainly activity but it just goes to activities that normally would not have been like the oil boom over the last 10 years, the housing bubble because the beverage was not quite as involved but it is like a virus in the computer it is activity befalls activity then you have the Energy Agriculture went through a depression commercial real estate had a huge hit ruins in the 80s but activities have thrived but had to be liquidated in the 80s and hugh knows with other investments out there . Summit was rolled where one in the Great Depression nobody knew why the depression came it was the bolts out of the blue desperate for solutions and we explained in the book it was triggered by a hideous trade war because we block the Global Trading system then every country made it worse to wrap massively raise taxes weve raised the top incometax rate from 25 up a 63 . Excise tax were enacted on numerous items including a stamp tax on the checks if you wrote a check to pay a bill you had to pay a tax to the government saw the massive tax increases came the u. S. And germany went berserk so then they said lets try funny money so the brits started to you defy you the pound but despite that experience we have the cold war a system designed 1944 worked perfectly well but to use policy to guide an economy was so prevalent they did not know how to preserve the system so we blew him up and we have been pondering ever since. Roughly 350 an ounce . There were some but the growth is a lot we could have done but then we went off the rails and still have not done ourselves out of that one. To catastrophes will pour one in Great Depression and now it will reverse below the radar screen as thinkers are saying that maybe this funny money that tried before adam smiths came along maybe he had a right we should reexamine things again which it says get the conversation going to get back on track so the Federal Reserve is doing its job right should be no more important than the bureau of weights and measures and said the Commerce Department and by the way if you ever run into a federal laws serve reserve official to say they want to put a 5 inflation because it stimulates the economy translating to a typical family. And next the 1,000 is frances. Who gave you the family and why does it stimulate. It just seems the something is wrong it is another broad enough discussion is so much more sophisticated now the value of gold changes in fluctuates it great deal. That deluge was artificially created so they had the years heehaw that we had to expand to spirit isnt fair a broader concept of distribution of wealth hendon come . It seems so complicated in this situation. The key thing is to recognize that money is a measure of value. Just like the clock is a measure of time and if you grasp that then you see that gold does not influence of money supply it just make sure when the dollar is created as a fixed value. That you take your point on deaf fluctuating price it is less about the gold or more about the markets that valuing of the u. S. Dollar and now hopes for the future but now in 2011 gold shot up that i see hundred and. Event in the 1980s it looks like the world was coming to an end to it shot up before going back down again after the election of ronald reagan. That is more about the perception than the Intrinsic Value of gold but to legislate the reason why gold rose is not bankers getting together to say lets do this but up of the marketplace. Governments quickly went into the business the people doing transactions with each other it was spontaneous and what is sick newton did 300 years ago with britain and gold is to effect codify what people thought it needed to be done. For example, a small country under constant attacks from spain literally that is why they have dikes it rises to the Financial Center of 34 london even though on paper this country had nothing. Britain became the Financial Center even though it was in stable money abroad issa of ted can together. As a result economys always get more complex with more growth. Talk about the division of labor and the jobs rise up. A few years ago applications for college . Apps . What about ipod . Things rise up you cannot even imagine. Icahn it is a fixed measure of value to make the measuring transactions the way we improve our standard of living more and more specialization to focus on what we do best so we dont have to spend our time growing food or hunting mastodons the focus will be your best at that is what you get with fixed money. Given the dependency of the of market and their willingness to create money whenever they feel like it, what does the return to the Gold Standard look like for the market and the st. . If we decide to do it and i think we will hopefully not the result of a crisis but people saying we have been drifting for years and were not doing as well historically. By the way a congressman representative brady who has proposed a commission bipartisan to examine Monetary Policy and i think that is a good start to get the debate going but what it would mean over time is you would have a much bigger economy. No. We discussed them in the book. Would depress the market . No. There is a lot of myths about bad times for farmers. No. What it does is allow humankind to search for word in the changes in the economy is not gold but hardpressed agriculture that we could grow more food. Take corn for example. It popped in my mind. Right now, in the 30s a typical acre produced 27 bushels. Today its 150. We proved about a fellow in iowa who is now back to an event breakthroughs in corn that are going to lead to 200 or 300 or 400 bushels per acre. So agriculture today, 2 of our economy. 100 years ago it was 60 or 70 . Railroads for example after world war ii they employed 1. 2 million people. Today they employ less than 200,000 kerry about ten times as much freight. So economies are always adjusting upward rather than what we have now in its stagnation and people wondering and i going to get ahead . Is my 50 year old son ever going to leave the house . [laughter] yes, sir. Thanks for coming out. I am probably a part of the minority that agrees on the principles that i cannot afford gold at all. Its about 1,600. I always carry silver and im kind of beard like that anyway this is a 1,923dollar worth about 20 today. The two most interesting things ive realized after learning over the past two or three years that gold, silver, all that stuff you can buy the same amount of gasoline today as you could have before 1964. And i guess before 1964 quarters combined have dollars and dollars were made up of 90 silver and that was a mind blowing back to that although this is 1 dollar you go to the claim shop and it is worth 20 because it is made out of silv silver. The uk by the same amount of gasoline as you could have in 1964 so what that tells you is that the price of gas stayed constant whereas the price today of gasoline rose not because the price of gas necessarily rose but because the purchasing power of the dollar has gone down. Ten times is the same weight as the quarter and im sorry, 10 is exactly the same weight as the Silver Dollar in four quarters is exactly the same weight as the Silver Dollar. And two half dollars is the same as this dollar. So before the dinosaur smaller than the quarters for a reason. 2. 4 times is the same weight as a quarter. You talk a lot about gold and my question is where do you see silver playing into the picture of your idea in a society . In terms of the idea from the society it is never an idea with human beings. But going back and a sense giving in essence what we did the first 180 years of existence from George Washington and Alexander Hamilton until nixon blew it up and 71 with the applause of the most economists and socalled experts. Apropos of complaint on gasoline, just go back 13 years, 12 years before we went off the rails again big time instead
comparemela.com © 2020. All Rights Reserved.