How Banks Work & Dictate the Economy - Interview with Richard Werner
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- čas přidán 7. 07. 2024
- Economist Danielle DiMartino Booth sits down with Professor Richard Werner. In this interview they talk about how banking works, the role it plays in society and what quantitative easing really is. Reach out to Richard Werner on twitter here: bit.ly/3cVWHXs
Check out his website here: bit.ly/3fT6uPR
About the guest: Richard Andreas Werner is a German banking and development economist who is a university professor at De Montfort University.
About the host: Danielle DiMartino Booth is a Founder & CEO of Quill Intelligence, DiMartino Booth set out to launch a #ResearchRevolution, redefining how markets intelligence is conceived and delivered. To build QI, she brought together a core team of investing veterans to analyze the trends and provide critical analysis on what is driving the markets - both in the United States and globally. A global thought leader on monetary policy, economics and finance, DiMartino Booth founded Quill Intelligence in 2018. She is the author of FED UP: An Insider’s Take on Why the Federal Reserve is Bad for America (Portfolio, Feb 2017), has a column on Bloomberg View, is a business speaker, and a commentator frequently featured on CNBC, Bloomberg, Fox News, Fox Business News, BNN Bloomberg, Yahoo Finance and other major media outlets.
Contact Danielle: Twitter: / dimartinobooth
To reach the Valuetainment team you can email: info@valuetainment.com
Hooray for Danielle, someone finally let him talk uninterrupted !!!
Yes, and he's the only person in the mainstream that has described this concept.
This is by FAR way better than her other interviews because we can actually hear the interviewee speaking. Great job Danielle!
Dean Elleman, I came to the comments to say the very same thing. :)
@@martinclennon4640 does he get interrupted alot?
@@jamb2962 no, she just tends to interrupt a lot. But shes doing a lot better
This man is an absolute legend.
This woman is a legend as well :)
The guy on pvz
The guy on pvz
Very thrilling stuff.
There is a lot of weird things going on. Thanks to pundits like Richard Werner one starts to understand what is in the making....very very slowly,, over generations and on multiple fields. -! 9/11, endless wars on terror, patriot act, mass surveillance, intended bubble?collapses, wealth concentration, social engineering, electronic payment systems, Covid19 as a pretext for restrictions and isolation of individuals and as an excuse for economic breakdowns etc. etc.
i dont understand why no criticism for this guy Professor Richard Werner? anyone can explain what i am missing here? He advocates for Q.E. policies in order to inflate economies , but at the same time this causes mass inflation and devaluation of the currencies?
Best interviewer ever. She is so calm classy , composed and lets the guess actually talk . Best I trévire of the Chanell.
You are kidding!
Danielle, I have become an economics geek in the past few years. Your interview with Richard Werner is the best overview I have ever watched. Thank you so much. Nice job!!
Great interview! I've studied and worked in finance for over 20 years and still learned a lot watching this. Bring him back, please.
i dont understand why no criticism for this guy Professor Richard Werner? anyone can explain what i am missing here? He advocates for Q.E. policies in order to inflate economies , but at the same time this causes mass inflation and devaluation of the currencies?
@@marybailey7881 actually the Fed up until recently has been fighting to maintain two percent inflation.
The medical emergency has changed the landscape.
Economics is rather complicated.
I have been studying for almost sixty years.
If you read "Princes of the Yen" you will become exponentially smarter.
Another great book is "Cities and the Wealth of Nations" by Jane Jacobs.
@@marybailey7881 buying up bad paper is interbank transaction.
Money doesn't enter the economy.
All these channels saying this are crying inflation to sell precious metals.
Recent inflation is from supply chain problems and direct medical emergency injection of funds.
@@jonswanson7766 I heard a bit in the documentary "Princes of the Yen" where Werner is saying in an interview "I asked them."Why aren't you printing more money!?". Did I understand him right, that was HIS idea that they do that? or was he quoting someone else?
From what I have read, he is the one who came up with the whole idea of "creating money out of nothing " and injecting it into an economy to "stimulate it"? mainly it goes to stock markets and real estate markets and benefits the rich, it seems? But the way this documentary is made. it appears that Werner is one of the "Bad guys". I had no idea that he was the one who wrote and i guess also composed the documentary "Princes of the Yen". What made me extra confused is when I looked him up and he had glowing reviews about how "great an economist he is". etc.
thank you Danielle, this was pure public service.
And when its communicated by such a charming lady , is just a plus.
You just spoke to the smartest guy in the room.
Just heard from the smartest guy on youtube.
Not so fast! Werner describes the bank-created money scam properly, but thinks we should allow it to continue because it is "good for businesses!"
@@widehotep9257 he says we should revert to community based banking and lending that is NOT allowed for asset purchases.
@@gregorious123 Changing the ownership of the bank to a public institution doesn't change the ethics of debt-based money. When banks create money out of thin air, it is impossible to repay because they only create the principal and not the interest. The only way to repay the loan is to borrow more money, and this forces people into a cycle of endless debt and defaults while the banks make huge fortunes from our suffering. And Werner thinks this evil system should be preserved because it is good for "business development." Why not return to 100% debt-free money, and abolish legalized counterfeiting by banks?
@@widehotep9257 Our bank deposits are liabilities to the banks. So they reduce their equity. When we repay a loan, we destroy that principal money that was created out of thin air, and the interest paid becomes an asset to the bank. If we made that payment with money earned by producing something (helping increase GDP), then that works for the economy. But if we never pay, or if we just keep borrowing from somewhere else and never produce that in value, then we're just helping devalue the dollar by creating money that is not backed with production. My point is that "debt based money" will work as long as the debt that creates new money "out of thin air" is always used to increase GDP, ie producing new things "out of thin air". Knowledge (a new product/service/improvement) is the creation of something out of thin air, so new money should enter the economy out of thin air as well, to mirror our created knowledge. Capitalism is fundamentally a system of knowledge. We have today the same resources as we had in the stone age, but it's all transformed by knowledge, which we create out of thin air.
Every American needs to watch this video! Lower rates also makes the national debt less due to inflation.
This man has the ability to explain complex problems in a so brilliant understanding way. Thank you !!
Wow! Thank you so very much for taking the time! Excellent interview!! 1st principles galore, loving these interviews!
I love this. An economics lecture, history, how interest and banks work. This is my Econ degree.
Very clear explanation - all politicians should watch this
Agreed, but to what gain would that achieve?
Those who care about this sort of thing are by far the minority, the rest would dismiss it with some sort of word salad.
"Well... Economic growth relies on consumer debt which inevitably creates jobs."
Why? This is clearly their agenda. If you can’t see that after 2020 I don’t know what to tell you. This isn’t incompetence. It’s deliberate
Empirical had me
Too many politicians are puppets of the super-rich bankers. Abolishing the bank money-creation scam will require a lot of public awakening.
@simon kilface but if you tell people they’re debt slaves they get upset.
Mr. Werner was excellent and told us what many Americans intuitively know that Central Banks and government are confusing Americans about their terrible no growth policies.
Good lord, this is possibly the best macro interview I've seen yet (and I've damn near seen 'em all). Danielle, you don't seem to put out a lot of material of you as the interviewer, but what a slam dunk.
I believe, as a national security issue it should be a national imperative to replace Summers with Werner immediately.
Thank you Danielle and Richard, this was a much needed interview for us as a community. This is REAL value of information that we need.
Thank you d for good interview
Magic money men's manipulation machine.
Danielle, your ability to listen is impressive and signals your confidence and humility. You're a superstar: supremely intelligent and magnificently beautiful. Bravo!
Stop crushing
Followed him for years. His book is incredible, Princes of the Yen
You are one of the really smart ones!
That book is eye opening.
probably the most intriguing discussion of banking I've ever heard.....
I didn't know how much I didn't know about the banking system!
Brilliant interview. Loved the way Danielle listened.
Absolutely. I heard her on various other occasions she being the interviewee . She’s got more to say than many others.
- An interviewer is a good interviewer when knowing if, when and what to ask for is necessary, and not one who has to intervene all the time, driven to get attention for him-/herself.
This is a interview of the highest quality. Both from the view of facilitation and content. A true credit to all involved and a blessing to us all
These are 2 absolute all stars. One interviewing the other. Thanks for this interview Danielle.
From Morocco... It is so great to have Prof Werner on your show ... Nobody is satisfied anymore with lousy generalization and mysterious cloudy aggregates ... Time to get to the real plumbing and mechanics behind vague jargon with a critical thinking mindset, open to evolve and seek truth wherever it may be. Huge fan of your show Madam. Cheers from Casablanca.
the perfect explanation of the topic. this should be mind blowing even for a banker. Lovely interview by danielle.
😂😂😂😂😂😂 - Even for a banker hey.
Possibly one of the best explanations of the banking system in relation to money creation and economic metrics I've seen.
No interruption Danielle. Great work. 👌
Richard has such a good way of explaining economic/financial stuff.
i dont understand why no criticism for this guy Professor Richard Werner? anyone can explain what i am missing here? He advocates for Q.E. policies in order to inflate economies , but at the same time this causes mass inflation and devaluation of the currencies?
@@marybailey7881
Richard's proposal for QE was fund to productive economy (examples help small/medium businesses, infrastructures etc...), just enough to get the REAL economy going (not gambling Wall St nor derivatives).
Federal Reserve runs USA (not American politics) :
* What you've seen the unlimited QEs from Federal Reserve is a joke... the corrupted American politicians (both Republican and Democrat) allow Unlimited QEs and distribute to its mates banking cartels so they can unproductive economy (gamble in derivates/stocks etc) or fund big corporations.
Obama started QE, Trump accelerate unlimited QEs...jokes...And now the people feel the Hyperinflation
@@thanhpham1647 It doesn't make sense how "Quantitative Easing" would ever be beneficial to anyone but the rich. I would call this a "controlled opposition documentary" as it appears somewhat in this documentary like he is on the side of the Austrian economists, but he is not, he is for Q.E. and I have heard also "pioneered" the concept of Q.E. This has done nothing but benefit the rich and rob the middle class and poor via inflation. It certainly has propped up the stock markets though, which I am sure he was benefiting greatly. Just another question...he did say , I heard him, but I don't know if he was quoting someone else's words, but he said "Why are you not printing more money!?" is that indeed what he said to someone with regards to the Bank of Japan? Why he said this, if so?
@@marybailey7881 he disagrees with continuing credit creation for asset purchases as a condition of saving the banks.
Look up the repeal of Glass Steagall for how the politicians bowed to wall street.
No money creation for asset purchases!
It's the boom bust cycle that the rich use to put through structural change.
Princes of the Yen!
Professor Werner is a must listen and automatic thumb up.
Absolutely love Werner. I cannot think of a clearer, simpler or more thorough explanation of the banking system, money creation, and what makes it healthy or unhealthy. I especially appreciated hearing obout the effect of bank lending depending on what the loan will be used for. Yes, helicopter money will be inflationary because it WILL go into 1) assets or 2) consumption NOT into 3) small business investment.
I'm about 4/5 the way through this discussion right now and I don't expect this to come up... but I would love to hear Werner's (or yours Danielle) thoughts on crowdfund investing. There are many regular folks out here with modest surpluses, who don't qualify as "accredited" investors (high net worth with min earned annual income over $200k), or who have no way to become "angel investors", but who would still love to collectively lend to small, viable, often local businesses. Without small community banks to vet and facilitate loans to SMEs (with returns to depositors or bank shareholders) it seems like human ingenuity continues to try workarounds such as entrepreneurs seeking business loans from people willing to lend via crowdfunding platforms. Perhaps this kind of small lending/borrowing can also be an economic life support when the increasingly large and centralized system finally collapses on itself.
i dont understand why no criticism for this guy Professor Richard Werner? anyone can explain what i am missing here? He advocates for Q.E. policies in order to inflate economies , but at the same time this causes mass inflation and devaluation of the currencies?
I admire this man so much. His clarity of thought & speech.
i dont understand why no criticism for this guy Professor Richard Werner? anyone can explain what i am missing here? He advocates for Q.E. policies in order to inflate economies , but at the same time this causes mass inflation and devaluation of the currencies?
@@marybailey7881 interbank money not inflation
This is by far the best and most digestible explanation of the banking system I have heard. Thank you kindly Richard and of course Danielle for the interview.
at 1:05:28 minutes even Danielle threw the towel , the interview is so dense and impactful...and it's actually when the best started, the reverse correlation between growth and interest rates . what an overview of economics, this guy is the real deal in my opinion.
Best Podcast I've ever listened to. Mind-blowing
Fantastic interview
Excellent! We need a part II!!
This guy is smart , very knowledgeable about Japanese market
Awesome content! One of the most underrated pods out there. Kudos Danielle! Really loved the way you conducted this conversation!
There should be double thumbs up button for those special interviews.
Richard is about as good an interview as you can get. Great guest, great interviewer!
Excellent discussion! Thank you, Danielle, for leading this wonderful exploration and thank you, Richard, for your valuable insights.
Incidentally, I just recently re-read "Princes of the Yen", a magnificent work. For those who haven't read it, I highly recommend that you do.
WOW...Brilliant interview by Danielle..Very informative
I learned so much with this one!!!
great job by both parties-clarifying and important information for all! thank you Richard for doing empirical studies to demonstrate the truth, the few who know this keep it as a tightly held secret-the rest are left in the dark...intentionally. Please keep on informing-grateful for your work!
This man is a legend!
you bet
Richard Werner! Legend. How good was that!?
Excellent interview. Very insightful. Thank you both!
This video is pure education. Such a treasure. Everybody should understand this.
This interview is pure digital gold. Spectacular and astonishing.
Absolutely brilliant !!! Thank you so much !
It takes deep knowledge to be able to lay out these concepts so clearly. I am lucky to have heard Prof Werner.
Excellent interview. Clarifies a complex topic and is non-political. Thanks, Danielle!
Amazing lecture, will definitely watch it again
Thank you Danielle for sharing this insightful interview with Richard. You both are truly amazing!
Wishing you all the best ✨
With love
Marco
"Essentially it's a big Ponzi scheme. As long as banks continue to create credits for asset purchases." It's amazing how I watch this video looking at another man talk and nothing seems to happen on the surface, but on the inside I feel like a lightning has struck onto my understanding of current world order. This man is truly amazing educator! My question is if the banking reserves at central banks don't matter, why do they exist in the first place then ? Just in case the client of the bank demands payout in cash ? Can someone answer this?
that's called bank run.
Bank reserves yes provide liquidity to meet customer demand for cash.
They are also a tool used to maintain the Fed's policy rate. Formerly the Fed used open market bond sales/purchases to maintain its policy interest rate.
Now central banks do that by paying banks interest on reserves, so that rate becomes the effective policy rate.
Fantastic video by the Prof. - these theories shall be out there for the people to understand the game they are in!!!
One year later, and he's absolutely right. Can't wait for you to sit again with him, Danielle.
Fantastic interview thank you
Incredibly insightful episode! Banking and loan currency sources revealed. How do those loans impact the community and country at large? Answered!
I was inspired to subscribe to the channel because of the quality of the information and references in this episode.
Mind blowing stuff 🤯
Outstanding guest and an excellent interview
Learnt so much detail here. Really appreciate the interview
A brilliant episode. Thanks, Danielle!
Great interview.
It to bad, Richard is running the world economy! He would do a great job!
One of best interviews, you inspired me to go deep into economy thanks.
This video should have 1 million views not 6300 views
Been watching Macro videos for sometime and this is by far the best single episode (by any channel) that demystifies the big picture of money creation/supply.
Richard answers the question of why FED's QE didn't cause CPI inflation while it did inflate Stocks and Houses.
He also mentions how stimulus checks in 2020/21 are different from QE and how they might finally cause CPI inflation.
But towards the end, he brings up the scary point.. Direct payments(stimulus) if continued could lead to hyper-inflation...And if that happens, there are only two options..
1) Increase the interest rates significantly and reduce back-credit causing Stock/Housing market crash..(Repeat of 2008/1920s...)
2) Do nothing...which will lead to a loss of confidence and an eventual Dollar-crash.
If Dollar crash what will happen?
Also if they lie to their people by saying inflation won't go out of hand would not this cause huge unrest? Why would they want to do that?
@@szaky7399 Well, politicians indeed do what gets them votes. And more and more people seem to be happy with short-term stimulus checks not realizing the long-term effects....
@@kranthic2334 Why would politicians risk their current power for hyperinflation? Why would they say no high inflation is coming while they are actually cooking it? How people with savings can protect themselves?
Loving DTM deep dives !
This is why Dalio is focusing on Emerging markets and Buffet selling out of bank stocks
Great interview! Thanks for the share Danielle and Richard.
55:46 "With the next crisis around the corner" don't let that go over your head guys👀👀
What’s the next crisis?
This was a good interview I have to say. I first got this idea of money creation by the banks from the book 'Guide to Investing in Gold and Silver' by Mike Maloney. He has a good explanation on how fractional reserve banking works and many other related issues.
My goodness Danielle, I love this guy!
Amazing Content!
Jeff Snider thinks the Fed stopped looking at the money supply because it has become impossible to accurately measure.
It has
What an amazing show
Brilliant!
Great interview and educational information, liked it! Thanks!
I love this guy
Dear danielle~ you look smashing today and thanks for the very valuable interview I've learnt alot from this!
Down the Middle is probably the only series on Valuetainment that still provides value, for sure on Valuetainment Economics, Down the Middle is the only videos worth watching
SIR Richard Werner ! Unlikely be Knighted by Liz but will be Honoured by the Power of the People of this Planet...
Never heard of Richard until he was interviewed by Neil Mccoy-ward in October 2023. What an absolute champion of the people.
Wonderful interview
Fantastic show. Thank you so much.
Amazing listening to this interview in April 2023.
I've been learning about macroeconomics since 2014 and have read, watched and listened to hundreds of books and videos. By far, this video is the most important of them all. Is it possible to get the ego maniacs in the central banks and politicians to do the opposite of what they're doing? You almost think they're doing it on purpose.
Bingo. If a bunch of smart successful people are doing something that seems stupid the logical conclusion is that they’re doing it on purpose. See COVID.
omg You have a point
If I follow this correctly, a banking license is membership to a club of members whom individually lend money into existence and agree to accept one another's liabilities (bank deposits - or whatever they want to call it) at a fixed exchange rate of 1:1 USD. With that, the Fed Reserve is the regulator of the club; and Fed Reserve Notes are Fed Reserve liabilities (member bank deposits to the Fed - or Fed Reserve liabilities or whatever else they want to call it) which members accept at a fixed exchange rate of 1:1 USD for use on the asset side of member balance sheets.
close, but in most cases banks are allowed to lend out 9 USD for every 1 USD they hold and as this money can be put at another bank (not all of it does, of course) you could argue that there's quite a lot of money creation at the banks...
This is worth watching several times.
Chapter 17 "Princes of the Yen" the explanation of the Asian debt Crisis is amazing!
Great interview. I've learned a lot from listening and reading Richards great work.
EXCELLENT INTERVIEW
Tremendous stuff...true genius
Mr. Werner nice explanation as always and very smart questions. Just to point out that only size is not enough. Germany is so successful because they have the right culture imbedded. As you know Germans think that because they never had access to energy they had to access it through selling high value technology based products. If you were to implement local small banking in Spain you may have some technological successes because they are very creative but for sure you will get another housing bubble. So I agree with you about the small banking for Spain but as far as is accompanied by a credit window oriented central directive. Best regards.
This man deserves a Nobel Prize. I still don't like QE - ultimately it facilitates getting away with financial crime on the basis that the banks will hold the economy hostage, whereas the proceeds of the crime should be redistributed and the criminals punished.
Thank you for teaching Prof. Richard Werner. God bless Oxford. God bless everyone.
Where does Oxford come here?
@@kmr512 Doctor of Philosophy
in economics from Oxford Uni.
@@iloveamerica4891 Do you think he got this knowledge from the Uni? Rather both Oxford and Cambridge are the bastion of orthodoxy and imperialist mindset. They couldn't even handle a 20 year old Indian female president. 🙄
@@kmr512 Yes #Oxford #University is a special place. Anyone anywhere in this world who is someone graduated from #Oxford #University. #Politics and #Religions create problems. Humans have wickedness and love inside.
@@iloveamerica4891 But most of the arguments presented by the professor were using empirical evidence through his own research. If he conducted this research at Oxford, he would be thrown out by them. And yet you won't see any issue with it because you want to be part of that class. True, humans have strange cravings and complexes.
Thanks Danielle so informed
wow you got werner, earned my sub
BTW, great interview!
Great interview thank u
Asking questions that reveal insights that are important
This is pure gold.