A dramatic kind of experience that occurred with hank paulson former c. E. O. Of Goldman Sachs and treasury secretary at the time on his knees in front of nancy pelosi who was speaker of the house then and now in congress and he said you have to help the banks so fed wants to help the banks Treasury Department wants to help the banks because otherwise supposedly all mayhem is going to break loose no money will come out to people that said ok brought rates down to 0 and where the collusion comes in is it wasnt just the fed the problem that the Financial System cause from wall street throughout the rest of the world was so big that not just one central bank could make money cheap enough could create enough artificial money by itself and so the fed did collude did Work Together with the European Central bank with the bank of england with the peoples bank of china later that was kind of separate story with the bank of japan and so forth to create enough money to put into the Financial System to keep it safe for itself and all timidly what that did is a transferred all of that money into the banks into Financial Assets into burgeoning stock markets like like a ton of sort of crack into an attic up and up enough never took 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 didnt have access to money be any money they were saving now was getting no interest so anyone who was expecting a pension all of a sudden wasnt going to get what they expected and throughout the system many many things started falling apart that made people pissed off that made people decide you know what our governments in charge of this thing that happened to us that we cant even define screwed up so massively we need to vote them out so we need to vote out you know democratic 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 wasnt even just they people were angry they knew that somehow they had been robbed they might not have understood that this was the source of their kalu the collusion they cause their declining income and their declining Living Standards but they just they 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 were all in the same boat now so were going to equal that out if you wont bring in policies that are going to restore the wealth and income gap to a more reasonable level then well do it. Right here on the Summer Solutions you know lets talk about the solution because you know weve talked about the central bank problem for many many years 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 theres some theres some pushback and some new ideas what do you think could be a way to come up with something to replace Central Banks or modify Central Banks but something a solution so 1st of all take the assets that are currently on the books of all the Central Banks dont create more of the problem with m. M. T. Monetary theories that suggest that we can somehow create more debt in the Central Banks will be involved and then that will therefore go to the general economy which it hasnt done it thats just not the direction in which it goes theyre attached the fed is basically that the c. E. O. Of the Banking System and provide some money regulates the banks of the banks or members of that institution like thats not going to that structure has to go away you cannot have the Financial System be members of a central bank that provides them cover when they screw up that entire system has to be demolished but also the debt that currently exists because it does that that 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 theyre getting it so cheap it is cheap but theyre not even giving what theyre getting to their own customers and theyre charging them money to have accounts so people a person with an a 1000. 00 bank account just to put it into real terms has to pay 20. 00 a month j. P. Morgan chase to have their money which a. P. Morgan chase that is a 24 percent Interest Rate they are paying to j. P. Morgan chase or their savings account net of that is probably getting a quarter of a percent so 1st of all take that money out put it in banks like aspiration or somewhere on line where you can only get 2 point one percent at least get something beyond what the private banks are doing and show that shift show that sort of economic shift also away from companies whove been such great recipients of this free money and the sort of like you know financial crack from the Central Banks and again just so you remember we are on Summer Solutions where the location of malibu you have a target plane just flying right overhead i know like our engineers like to tell everybody thats why you hear a noise but lets again Central Banks now rig the world theres collusion how central bankers rig the world but it also comes from politicians politicians themselves have abdicated the responsibility get granted to them in our constitution for example we elect. Congress people senators and the president in order to you know shape policy including industrial policy and fiscal policy but we dont have fiscal policy anymore and we dont have industrial policy its like its now considered i think theyre too afraid to perhaps like to say anything that might 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 cant be just Monetary Policy because Monetary Policy can only give money to the bankers like thats its going to create a volatile situation so how do we get to a situation where you have fiscal policy again and industrial policy well i think just to go into what happened in last 10 years the 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 dont support them directly support them through lobbying money or support companies that support them but in some manner support the politicians they get elected for the most part they never and still dont understand how. Manipulated all of the process was by by Central Banks particularly in the last 10 years it was congress that decided to have a Federal Reserve and the federal service act in 1013. 00 was actually passed by congress now the Federal Reserve acts independently supposedly of the elected officials in washington but the reality is they could choose to get rid of the fed tomorrow if they passed an act to do that 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 its in our constitution in the Us Constitution it prohibits states from declaring legal tender anything other than gold or silver but does not limit congresss power to declare what shall be legal tender for all debts so when we come back from break i want to shoot i want to ask you this question because thats interesting what the founders did not want is states had a lot of power especially in the founding they didnt want a state whether its virginia or North Carolina to be able to issue debt to a foreign nation and drive america into war drive america itself debt so thats why they forced them to have a sound money gold or silver only those 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 its wall street banks that create almost all of our money so lets go to break a break when we come back to discussions some are solutions right here in the 1000 report dont 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. Its true but in your circles one of. The. Mere mortal do. The. Same situation. Did he do. That. So what weve got to do is identify the threats that we have its crazy. Let it be an arms race. Dramatic development only really exists i dont 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 youll hear the occasional plane or chopper or a fleet of drones overhead whatever stacey you were getting into something that was really incredible and im talking about this recently i was gobsmacked its so true so important please continue well because were looking for solutions for our modern situation remember occlusion how central bankers rate the world its always been mine to maxs position here 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 thats the original sin any of this other stuff was a distraction from this but i wonder like when the Founding Fathers thought of that notion that recognize that individual state in the United States could jeopardize the entire union by getting into too much debt by say lending to argentina and that that could jeopardize the entire union if it forced the United States to go to war for example over their debts. Is that how do we remove that power from not just Central Banks but their member banks which is wall street banks they create like 95 percent of our money dont they they distribute most money that the fed effectively creates so they distribute and therefore create upon it all the sort of the leverage all the speculative money that goes into 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 FinanceCommittee 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 wouldnt have enough access to credit amongst themselves that was the entire point it was sold to the American Population is a little help farmers because people in the midwest wont have to worry if theres a crisis on wall street because theres this ultimately Federal Reserve entity thats going to take care of all of the States Credit issues up all the states finances shoes and all of the liquidity when and if necessary in the case of an emergency there was no war at that time of course a few years after that we had world war one 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 thats what bankers wanted they were like ok well we got rid of it on the state level we push legislation to get rid of it on the state level regardless of what had been founded or considered in the constitution and now we need to find a way to get rid of it even at the federal level through the Federal Reserve and that was one of the reasons they pushed to get off of the Gold Standard so they would no more be like a solid real last 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 thats where we are today and thats why in the financial crisis the solution that the fed and colluded with other Central Banks to do was create all this money out of nowhere to plop up the Financial System the banks and Financial Assets because it could none of these banks now at this point have a tie into gold or any other real asset or even a portion of the asset against the currency they could create thats where were at now the Banking Sector their revenues were up 10 percent in the past year so this is against a backdrop of the real economy and the ordinary people their incomes are declining if anything so i mean this seems to be. You know heading into 2020 i just get worried about the way there is a meltdown in the elite class you do see it from hollywood and from new york they are melting down they are terrified of the people because they put those people in that situation the vast majority of the population do see an unfair situation do we return to a Gold Standard do we return to like jim rickards was a global s. G. R. So at least between nations theres. More you know the u. S. Wouldnt be able to run such huge deficits and therefore they would have to put people to work in order to create wealth to send overseas how do we restore that how do we make America Great again i just think that goes back to something that you said in the very beginning of the show which is why dont we have an infrastructure policy right why dont we hav