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 t