fire trucks all sorts of stuff because we are in malibu it's out in the open it's a hot place like people love flying helicopters and airplanes by so just so you know if you hear that with the noises but so what did central banks do in 2008 that got us to where we aren't from 2016 to 21000 and then we'll 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 lent lent money to other banks to buy them and lent money to small towns in norway and in california and pension funds to effectively buy toxic assets created out of credit they 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 wasn't 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 people's 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 it 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 didn't 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 wasn't 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 government's in charge of this thing that happened to us that we can't even define screwed up so massively we need to vote them out so we need to vote out you know democratic administer. 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 understanding 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 from my memory is the like it wasn't 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 tromp 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 we're all in the same boat now so we're going to equal that out if you won't bring in policies that are going to restore the wealth and income gap to a more reasonable level then we'll do it. right here on the summer solutions you

know let's talk about the solution because you know we've talked about the central bank problem for many many years and they can tell us so is there an alternative as a solution to the central banks not 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 there's some there's 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 don't 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 hasn't done it that's just not the direction in which it goes they're 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 that's 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 these 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 of basically 0 in return because they're getting it so cheap it is cheap but they're not even giving what they're getting to their own customers and they're 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 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 who've 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 tell everybody that's why you hear a noise but let's again central banks now rig the world there's 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 don't have fiscal policy anymore and we don't have industrial policy it's like it's now considered i think they're too afraid to perhaps like to say anything that might that get them when i liked it or i mean how do we restore that how do we get politicians to take back like everything can't be just monetary policy because monetary policy can only give money to the bankers like that's it's 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 minds of politicians who are 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 don't 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 don't 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 so you mentioned that the congress had given the central bank the authority to print money that they that they gave them independence but of course it's 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's 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 that's interesting what the founders did not want is states had

a lot of power especially in the founding they didn't want a state whether it's virginia or north carolina to be able to issue debt to a foreign nation and drive america into war drive america itself debt so that's why they forced them to have a sound money gold or silver only those could they issue debts again 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 it's wall street banks that create almost all of our money so let's go to break a break when we come back to discussions some are solutions right here in the 1000 report don't go away. please. live.

live. live. live. live live. live. live live. live live. live . live. live. oh. please.

live. live live claim. and very well continue watching on since last. it's true but in your circles one of. the. mere mortal do. the. same situation. did he

do. that. so what we've got to do is identify the threats that we have it's crazy. let it be an arms race. dramatic development only really exists i don't see how that strategy will be ready. to sit down and talk.

welcome back summer solutions cause a report shooting in malibu of course and a lot of tourists here so you'll hear the occasional plane or chopper or a fleet of drones overhead whatever stacey you were getting into something that was really incredible and i'm talking about this recently i was gobsmacked it's so true so important please continue well because we're looking for solutions for our modern situation remember occlusion how central bankers rate the world it's always been mine to max's position here and cries report that the 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 4 breaks it disaster to happen the collusion was this this was the original clues and that's 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 don't 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 financial. markets and excedrin so they are there interval to that and there enter gold to creating the fed to begin with then in 1803 in 1010 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 finance committee chair from rhode island they got together and they figured out how do we create a system all to milly that helps them they were afraid that there could be a panic or crisis and the wall street banks wouldn't 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 won't have to worry if there's a crisis on wall street because there's this ultimately federal reserve entity that's going to take care of all of the state's credit issues up all the state's 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 and there was a lot of putting into action of that idea but to create money not necessarily to 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 had the effect of leveling all of that when the federal reserve was created because we still had a gold standard in 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 a creek. it when we got to 1981 when the gold standard was completely repealed

and abolished under the nixon administration it was because that's 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 adventure mark underneath 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 that's where we are today and that's 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 that's where we're 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 like jim rickards was a global s.g.r. so at least between nations there's. more you know the u.s. wouldn't 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 don't we have an infrastructure policy right why don't 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 aren't we actually why isn't that the thing that the governments that we elect you know trying to ultimately do and there's a lot of reasons for that one is that people don't necessarily know what's going on and so therefore they think that they're going to vote for someone who says they're going to do things on behalf of america or on behalf of other countries but in fact they don't have a plan to do that or don't 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 they're frustrated

some people pick the side of let's get more nationalistic let's get more internally focused some people think the side of let's get more socially focused let's get more progressive a net 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 doesn't help with respect to the s.d.o. with respect to getting currencies that allow more trade to happen between more nations so that the u.s. isn't necessarily the be all and dodgers stichter of 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 an decent amount relative to the rest of currencies in that basket so they're projecting that the sort of chinese contingent the asian contingents going to grow with respect to both currency and trade usage right now it's still very small in trade. and see it's. they're in trade and so you know if there were i don't think there's ever going to be

a gold standard because you're just going to have too much political rights against it but to incorporate say gold into the s.t.r. or into the components of currencies and again you start to bring back a little bit of a leveling effect throughout general trainor mean it just seems like absent a global trade unit of account that is kind of a gaslighting global economy is like a gaslights the organ area people because they are still most people still think of economics work in the world operates pre-one 971 and they still think that way our economic history is taught that way for example max's mention nobody no textbook in history has ever even suggested that negative interest rates are possible like that's 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 there's a gas global gas lighting situation and you know there is i remember us what a conversation with the shadow it's chokher in 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 they've created has gone and i did you can you actually draw a line and he's like no i'm like well maybe i should be a question that you ask any part of the market it should be a question that's asked that was one of the reasons i was on bernie sanders and federal advisory committee was to get an idea transparent where is this money actually going because ease think the whole then is that at least the people who have the ability to legislate in some manner relative to it will decide that it's being misdirected or at least think about it for a moment which which which. hasn't been hasn't been the case well it's 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. and well you know felicity huffman daughter is just smarter than i am and she works a little bit harder and i'm the loser that didn't get in i'm the one i didn't 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 that's like this global economy where we don't 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 it's you know it's a hollywood star whether it's 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 $1.00 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 aren't in that to begin with fall further and further behind and that's where that gaslighting you know you're talking right. missions college admissions. the currency used to. stock in the facebook stock had been gifted to them didn't

even have to buy that facebook stock and then of course do can tell in effect the money printing facebook stock goes up by 600 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 in the end if they're gifted stocks beyond that you know effectively all of that any quality 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 audit the fed what it was about what's the number one answer. return to class to go so that you can actually have banks disconnected from people's money so at least they don't 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 they work with the rest of central banks around the world to create money out of nowhere take the money they've created redistributed i'm giving you more than one answer to that is. there

a lot of me and have people take their money out those banks at least get some interest on it yeah call all right well some are solutions up a side one dummy prince a smashing success that's it for kaiser report summer solutions thanks for watching want to catch. twitter it's kaiser report if you want to watch just be an overall good citizen just keep watching the show until next time. during the great depression which old mr remember there was a most of the family were unemployed working class and it wasn't it was bed you know much worse subjectively than today but there was an expectation of the things were going to get better. there was a real sense of hopefulness there isn't today today's america was shaped by the 10

principles of concentration of wealth and power. reduced democracy attack solo doubt engineer elections manufacture consent another prince holds according to no i'm chomsky one set of rules for the rich office a set of rules for poor. that's what happens when you put her into the hands of a narrow sector of will switch will is dedicated to increasing power for itself just as you'd expect one of the most influential intellectuals of our time speaks about the modern civilization of america. what politicians do something to. put themselves on the line and they get accepted or rejected. so when you want to be president. or somehow want to be us.

it's a right to be for us it's like the 43 in the morning can't be good. i'm interested always in the waters in the house. this should. join me every thursday on the alex salmond's show and i'll be speaking to guests of the world of politics small business i'm show business i'll see that. and you. think. it will be easy for. anyone to see you know

the event was. in the headlines this morning the u.k. government fights a block sale to saudi arabia a court ruled that the weapons supplied to riyadh was illegal and may be used in the yemeni conflict also a detroit music festival faces a massive backlash alfred charge the white people double for tickets the proceeds will go to help disadvantaged people from the black community to get i guess the. black person to do to a white person how would it be would i be racist if they say that you know somebody salutes wealthy. and leading us democratic presidential candidate joe biden comes under fire from his own party brother k. think racial segregation way back in the 1970 s. he says though his views were taken out of context.