will probably involve central bank digital currencies. now this is something that they would be planning to do over a period of time because no central bank can introduce a digital currency without massive app testing and all the rest of it. so that is not something that will happen very quickly. but do note that the bank of its national sacraments is coordinating all the research on central bank digital current space for the ho central banking system. so you can see that the 2 things appear to be tied together. and i think that's what is evolving is a potential escape route from commercial banking, providing the expansion bank credit for business in the general sense to central banks getting more involved in it. so we could find that if everything goes to plan, which of course is another issue that over the next 5 to 10 years, this social evolution as of current commercial banking as being central, if you like to the monetary system that is probably going to come. we're going to see that's coming to an and to see where i think that rough

digital current space for the whole central banking system. so you can see that the 2 things appear to be tied together. and i think that's what is evolving is a potential escape route from commercial banking, providing the expansion bank credit for business in the general sense to central banks getting more involved in it. so we could find that if everything goes to plan, which of course, it is another issue that's over the next 5 to 10 years. this social evolution as of current commercial banking as being central, if you'd like to a fed monetary system that is probably going to come, we're going to see that's coming to an and does it work? i think that roughly is the sort of game plan that some of the major central banks have. so in other words, you know, they've been making all the credit available to bank spent. banks have not been lending right. money velocity is collapsed, so your central banks are the bank of international. so i'm sorry the, the b i, yes. simply saying that calling time on these banks, the saying we're actually going to

some of the major central banks have. so in other words, you know, they've been make dollars credit available to bank spent. banks have not been lending right. money velocity is collapsed. so your central banks are the bank of international. so i'm sorry the, the b i. yes. simply saying that calling time on the bank, the saying we're actually going to just come up with our own central bank digital currency cut you out of the equation. we're just going to deal directly with the, with the public as a war and throw the bank on the bus because they, they decided to keep all the money. they won't, they won't lend it out. yes, i mean, it is the that is the set. if you like the, the drift, if you like, of where policy is going. and so it's sort of, i think it makes, it makes one feel that we're almost at the position of peak banking. i mean, what happens from there? actually, it's not a simple, massive because banks being bypassed by central banks, lending digital currency, direct to borrowers direct to consumers to go and consu

this is going to be the central pacific. this is the guardian of california, which pretty much is exploiting it, keeping out people. this is crocker and stanford milking california dry. that's california is the cow this is the ruin of california here, and these are the railroads as the caption says "sucking her dry." and this is three of the big four, and the three who are still living at the time, riding the railroads, keeping on the railroad commission in one hand and the legislature in the other hand and corrupting california. my interest is in this part. how these railroads worked, how they made their money and less in this part, which you'll hear about later, because most of the accounts end with the driving of the golden spike. the railroad is constructed, the job is done and it's time to move on. but i'm less interested in building of it than how it actually operates. how it worked in california in the 19th century. now this is where usually the culmination of the story, the meeting of the promitory summit, have all s

some of the major central banks have. so in other words, you know, they've been making all the credit available to bank spent. banks have not been lending right money velocity is collapsed, so your central banks are the bank of international. so i'm sorry, the, the b i s simply saying that calling time on these bank the saying we're actually going to just come up with our own central bank digital currency cut you out of the equation. we're just going to deal directly with the, with the public as a war and throw the bank on the bus because they, they decided to keep all the money. they won't, they won't lend it out. yes, i mean, it is the that is the set. if you like the drift, if you like, of where the policy is going. and so it's sort of, i think it makes it makes one feel that we're almost at the position of peak banking. i mean, what happens from there? actually, it's not a simple, massive because banks being bypassed by central banks, lending digital currency, direct to borrowers direct to consumers to go and consume

i'm not certain we need a big central -- a central bank digital currency. it has been the private sector that has been responsible for developing could be currencies, including coins which can be stable with respect to the dollar. private digital currencies have the potential to increase access to financial services for all americans. while increasing individual privacy. people raise issues about private digital currencies including their use in illicit activity and the possibility they could affect monetary policy. i think we need to discuss these, understand these issues. we many to address them. we should not lose sight of the tremendous benefits that the underlying technology offers. that this can offer mediated payments as well. we should continue development of private digital currencies. i look forward to today's discussion and look for to the witnesses sharing their expertise. >> we push it you being here today. -- appreciate you being here today. we have dr. neha, who is at the massachusetts institute of technology. we will have the honorable chris

and therefore they do what every central bank should do. it's been said in the last few years that central bank buying of gold has gone out. well, that's not quite true, it has from some countries. but if you look at the western countries, if you'd look at the as, or any european country or western europe income, which no, but he has bought gold to haven't bought gold for years. and they all liquidated their positions in the 90s, as we know. and to push the price of gold down from what he was at the peak in $8852.00 down to eventually to 50. so that was the countries like the u. k. and switzerland, more than all their positions. so central bags that they have a love hate relationship with gold. on the one hand, they have to hold it down there, hold about $34000.00 tons of gold and but on the other hand, they want to suppress the gold price because the gold price tells their people that there are mismanaging, they call me and so far they've done the pretty good job in holding the gold price . well below where it should be. i often show a gra

initiated by the central bank. i get the part that the current payment system through private banks can be slow. it can be expensive. in one of our last hearings, warren pointed out that the amount of money made by one of our larger banks in the united states in overdraft fees. it was the billions. i get it can be expensive. i can see how a digital currency could be faster. it could be cheaper. what are the other advantages? in an inverse wave asking the question, aside from gaining more information about its people, what is china doing it? let me start, i want to hear from all of you. limits her with our chairman -- let us start with our commissioner of the ftc. >> when i look around the globe, i see 90% of reporting central banks are now looking at digital currencies. 3/5th of them have existing exposing underway. there are certain imperatives that are driving central banks to take a closer look at this. the first is capturing data. that is what drove china first with its commercial enterprises. it has been so su

and that isn't the result of central banks through the through the b s that issues golds 12, so central banks of the vanishing to hold the gold prize down in the paper market. and as we know, my paper gold has nothing to do with physical gold. and at some point that the real price of gold will be reflected when, when the central bank lose control about tape market, which is probably several $100.00 times bigger than than the physical market. yeah, i've heard those numbers before they but they bear repeating their stuff and as well. so gold, relative to the money print thing is as cheap today as it was in $71.00 to $35.00 an ounce. and as cheap as it was in the year, 2290 dollars amount, $1800.00 an ounce. that's out. it's the cheap nose levels relative to the amount of money printing that's gone on. and you mentioned that there hasn't been any real price discovery in gold now for really 151620 years due to the mash nations of these bankers because they like to support the money. it appears as though price discovery won't happen, but we're going to have quote, a reset. and we're going to

central bank money, i.e.oney that is a liability of the federal reserve, includes physical currency held by the general public and digital account balances held by banks at the federal reserve. the funds banks put into these accounts are called reserve balances, which are used to clear and settle payments between banks. in contrast, checking and savings accounts at commercial banks are liabilities of the banks, not the federal reserve. the bulk of transactions by value that u.s. households and firms make each day use commercial bank money as the payment instrument. under current law, the federal reserve offers accounts and payment services to commercial banks. these accounts provide a risk-free settlement asset for trillions of dollars of daily interbank payments. importantly, the use of central bank money to settle interbank payments promotes financial stability because it eliminates credit and liquidity risk in systemically important payment systems. congress did not establish the federal reserve to provide

but now central bank returning to c, b, d, c central bank. digital currencies is the c, b, d, c, state solution, some kind of bland, the state solution to all the debt accumulated in all those 50 years. is that going to work, mark? i think it's just reaching another level of basically the basing the, the central banking currency. so it's just using new technologies to, to perhaps more efficiently inflate the system. and that's exactly as i said, what the system needs. basically all these measures which the central bank is taking a measures which perpetuates which you need to prepare to the system. so i think they using this technology to try to create the system for a few years longer and it may work for a few years longer. but we'll see, i think this, this decade is, is, this is pretty, a very important one. and i think in this decade the, the system probably will come to some kind of an end to c, b, c, central bank, digital currency, or just another version of fee money, which is just another version of money printing. and the only cure for that is to raise rates. and once again, we

that's going to lead the world in central banks? it's hard to say, i think the central banks perhaps have paid that themselves in the corner. they are, seems to me just playing by day or seeing what's going to happen. and this is also from the face policy of photo being behind that curve when it comes to inflation management. my fear is however, that perhaps being behind the curve isn't the best policy. because once inflation expectations are hyphens, it's very hard to say change consumer behavior because consumers always adjust that for havior tends to be quite sticky for a long time. i'm glad you mentioned the fact that the fed chair is saying, hey, inflation is transit re. do you agree with him? it seemed transitory at 1st, especially with the supply chain disruption, because the seem to be short lived. but now when we see se asia and a lot of other asian countries, such as china, look down again. i think the disruptions good last a bit longer. and moreover, the more sticky inflation coming from the rentals is also a big, murky,

so central bags that they have a love hate relationship with gold. on the one hand, they have to hold down their hold about 34000 tons of gold and there. but on the other hand, they want to suppress the gold price because the gold price tells their people that they're mismanaging. they've called me, and so far they've done the pretty good job in holding the gold price. well below where it should be. i often show a graph max, where i compare the gold price to the u. s. money supply and going back to 1970. and if you look at the gold price in 197071, if you want was $35.00 and the gold and then in 2000, it was $290.00. the gold prize today at $1800.00 in relation to us money supply is as cheap as it was in $2035.00 on, sorry, into those in $71.00 that $35.00 and in 2000 at $290.00. so gold is incredibly cheap in relation to the money printing that we have seen in the us 20 years. and that isn't the result of central banks through be through the b i s that is use gold 12. so central banks are managing to hold the gold prize down in the paper market. and

the european central bank and bank of london are contemplating trials.is instance, i do not think there is a huge first mover advantage. i think the notion that they may present the digital version of the yuan related to the physical dollar for me is still a bit of a hard sell. certainly, the u.s. can learn a lot of the other countries experimenting and how to minimize the risks in terms of security and enhance privacy considerations, make sure there is not a commercial banking system. no central bank wants to be doing what commercial banks are doing right now. the u.s. could learn a lot and is going to learn a lot from what other countries are doing. it is going to be -- it is not a big threat that other countries are moving forward. caroline: we only have a minute left, unfortunately, and it may not crowd out the yuan but what about some of the stable coins that already exist, if the central bank makes its own, will they fade away? eswar: these table coins are essentially providing a necessary service, which is a low cost, efficient digital payment, wh

but i reiterate to date, central africans are exhausted. there's this humanitarian aspect that, that peter alluded to, which is absolutely in our opinion, you know, should be put it before. but people are exhausted in seeing these warlords continue to just get away with murder and no one is held accountable and they want justice. they've asked for justice that the central african people do want there to be re of accountability. ok, move up delay a. is that something that the tally says what you're hearing when you're reporting in the country, people are exhausted and where to they see this, the solution to this, the end game to this? does it come back to this piece agreements or do they want to see some actual accountability for the the crimes that are being waged against them? yes. so i think that the situation is truly complex and most of the population of central africa today are very, very computer. he was what can be the solution because he'd have like trying to many agreement between pick up manually how many different piece a quote i

if i can, you work in the central african republic. you live that just give us a sense of what it's like right now. you have this state of emergency just due to be lifted, but the situation doesn't seem to be improving for people in the country. what does this all mean? hello. thank you very much for having the program. i think i'm supposed to end a day, but men from the government didn't know yet. i tried to find a template or not i think in terms of security to have an impact on having more concurrent caught the government to control the movement because they used to move. i did a nighttime during the day, so it had the government to actually persecution, different houses and make some many people are calling because you have so many many, many, many people in the country you by me or the lesson. we have this report by different buddy like. ready ready you and see and different organizations reported that there there is so many violation. busy of human rights and you feel you can get better, but i quite imagined do you think the stat

central bank. so spend trillions of dollars buying up bonds in a process called quantitative easing. but trying to make sure the financial system and economy won't completely collapse due to the pandemic. it's borne out of the experience and lessons learned from the north atlantic financial crisis of 2008. when now central banks acknowledge they getting close to the point of having to withdraw emergency funding. the last time they attempted to do that, markets went through what came to be known as a taper tantrum that was back in 2013. many critics said vest is become hooked on cheap money and most of the i've gone into inflating stock markets in house prices. well, that process also increases inequality of right now there are concerns that a central bank don't withdraw funding. it could drive up inflation. despite central banks claiming to be independent, some like the bank of england being accused of funding government deficits. by the end of 2021, the bank will own $875000000000.00 pounds of gov

this west central bank, are they experimenting with a digital currency while they are like every central bank, but it's, well, it's still under still right now. i'm in sweet summer holiday and the baltic behind me as sweden, of course, has no cash at all. basically, you call in many shops, if they don't take cash, use cash. only credit card. sandra, bank, it's a sweetness even warned that you know, you must have some cash otherwise it was a crisis. you're not going to, you know, you're not going to be able to buy things. now. switzerland, still us, his cash. i'm still, there's a conservative country, so i don't, i think with my digital currency too. but it's going to take many years and it's not gonna be exclusive to normal money in my view. i'm gonna cut it off there by garage. thanks so much for being on ca. report. thank you back. it's good to see again. alrighty. was going to do this addition of kaiser report with may max kaiser and stacy herbert want to think, i guess you guys grier of gold, switzerland dot com, a gold vaulting service. until next time, by the me ah ah ah ah, i ment

the west central bank. are they experimenting with a digital currency while they are like every central bank, but it's, it's still under still sweet summer holiday and mr. bolton behind the b, as sweden, of course, has no cash at all. basically your call in many shops. they don't take cash, use cash, only credit card. the sandra bank sweetness even warned that, you know, you must have some cash. otherwise, if there's a crisis, you're not going to, you know, you're not gonna be able to buy things. now switzerland still uses cash and still there's a conservative countries, so i don't, i think so it slipped my digital currency to but it's going to take many years and it's not going to be exclusive to normal money. in my view, i got to come out there. you got my garage thanks so much for being on ca report. thank you bye. it's good to see a go. alrighty. i was going to do it for this edition of kaiser report with may max kaiser and stacy herbert want to thank i guess you got grier of gold, switzerland dot com i

it will be more difficult for those central banks.: you just said that you think bond yields are going to turn to 3%. some equity traders would utterly go to lunch instead, a very long lunch, at 2.5% to 3%. what does that do to your equity story? mads: if it happens over 1.5 years to two years going into the next recovery, i think what happened last time was that we tapered and tightened at the same time and it got a little bit much especially in late 2020. i think earnings recovery will relax. the economy will relax. inflation will come down but the target of the fed is a higher inflation rate that it was before so going to 3% is the lower real rate. if it comes gradually, we are going to climb this wall of worry and we are going to have a nice big, beautiful recovery in the u.s. economy just as the treasury and the fed are looking for that. if it goes wrong, then there is no tapering. but first, there was no tapering probably in the autumn. dani: a big, beautiful recovery. that is a very optimistic call. mads pedersen, cofounder and

ok by central banks only have one tool and that is to print money. so that means ok the indonesian boxing days to nami. and a few years ago that devastated the region and tell people we'd understand now that christina guard and jerome powell would be on the beach is throwing money at the synonymy to stop it. is. are they really that insane mark? are they there? are they just plain stupid? no, i don't think they play super the i think again, i think the root cause for, for, for this actions is, is this, that based nature of our current system, they actually do to increase the monetary supplies and doomed to increase the debt. because if they don't they, they will face some kind of implosion, some kind of a deflationary implosion and that would be lifted to not be feasible. and that's why they have to inflate. they only can go for what they have to inflate and hide the inflation whole. nobody seems to inflation, but i mean, it is pretty obvious by now already. and i think the longer the situation keeps being this way and the longer this inflation numbe

and so, there was the approach and central banking. another light touch approaches regulation and other aspects that were there and what the reinsurance of the market must have for something like subprime is unlikely to one point was quite happen as close to much less of what happens if it does happen, what would we wish we had done in that event. so i think in that case, we definitely had the pendulum. and i think in the case of something like sustainability, i sure that the issues with climate change for the product of tragedy of course. a market failure can be fixed by other factors so that is something were more comfortable with. i try to argue with years of their strategy over the horizon we are discounting the future quite heavily. and by the time but it's we get there, it will be too late printed how do we change that but in the end, that is a question of political, which is just society value sustainability and until we get to that moment, the market is not in service without value nor are regulators rated and make it into this

phd from oxford and 13 years goldman sachs, in the canadian government including five years in the central bank of canada during the global financial crisis and then because that wasn't challenging enough he became governor of the bank of england for 2013 to 2020. he is now an advisor to the british prime minister, climate action and finance, vice chair of the asset management and as a future potential candidate for the prime minister ship of canada and he's only 56 and i'm not going to deal with [inaudible] mark must have decided he would write only one book in his life so values building a better world for all his several books in one. it's a history of money, discussion of what markets can and can't do well and what to do about it and lessons on leadership. i'm probably one of the few that read all 20 paragraphs of the finance ministers communiquÉ that came out over the weekend i thought we would start with the very provocative and interesting title of your book which is the preface around the s and you talked about the tension between value, which is a market determined to something or

from oxford, 13 years at goldman sachs, a decade in the canadian government, five years in the central bank of canada during the global financial crisis and because that wasn't challenging enough he became governor of the bank of england from 2013 to 2020 during the whole brexit mess. he's now an advisor to the british prime minister on climate finance, the u.n. special invite for climate action and finance, vice chair of brookfield asset management, the future prime minister of canada and only 56 and i'm not going to deal with his collegiate hockey career. mark must have decided he would only write one book in his life. so his new one, "values, building a better world for all" is a really several box in one. it's a discuss of money, what mark can and can't do well, a primer on climate change and lessons in leadership and then some. i'm probably one of the few people that read all 20 paragraphs of the g7 finance minister's communique that came out over the week. i think that mark carney's book has a briefing on all of those 20 chapters. we're happy to have you with us and as people kno