The Secret Power of Banks - Richard Werner

Рет қаралды 15,247

Жыл бұрын

Part 2 of Prof. Richard Werner's - 'The Case for Abundance'
Richard Werner walks through the three competing theories of banking: the Financial Intermediation Theory, the Fractional Reserve Theory, and the Credit Creation Theory before revealing the true role of banks in society and their power hidden by central banks and mainstream economics. Banks are responsible for c. 97% of total new money that is created; this little known fact has a serious impact on the economy.
Part 2 of Richard Werner's brilliant talk at the Northern Light Convention in Sweden, organised by Scandinavian Freedom Events.
Richard is the Chair of Valhalla Network, a DAO whose mission it is to establish a global network of community banks; building a banking system owned by the people, for the people. Richard holds a First Class Honours B.Sc. in Economics from the London School of Economics and a doctorate in Economics from the University of Oxford. In the early 2000s, Richard authored the Japanese #1 best-seller 'Princes of the Yen', and he invented the policy tool 'quantitative easing'.
Valhalla Network: ValhallaNetwork.io
Prof. Richard A. Werner's Official Telegram Channel: t.me/WernerEconomics
Prof. Richard Werner: professorwerner.org/

Пікірлер: 65

@kevhall4802 Жыл бұрын

This should be mandatory viewing in every school, college, university, for all students to get some real world understanding of how banking finance and money really works.

@p.m.8316 8 ай бұрын

it's not an accident this is not taught in schools.

@anthonykennedy5324 Жыл бұрын

Dr Werner has become, through practice, quite adept at explaining the source of new money. I studied economics at university in 1972, in Queensland. The text book for basic theory was written by Paul Samuelson. In it, he explained the then current orthodoxy , the fractional reserve theory, namely , that while no one bank alone can create money, the banking system as a whole could. I could not understand it then but you didn't need to understand it to pass the course ! It is wrong.The prof has provided wonderful clarity. A terrific insight that should be the corner-stone of any economic theory

@bobbyjohn2768 Жыл бұрын

Keep at it, very appreciative of the work and its massive importance. Thanks Richard. You're the man!

@BaldurKhr Жыл бұрын

God bless you, prof. Richard, for your utterly professional approach! Such a great mind and man of Truth !

@mwni4507 Жыл бұрын

Exposing the game. And that on the day of She mita. What an absolute savage.

@jonswanson7766 11 ай бұрын

The recent example of SVB showed that customer "deposits" were used to purchase long term bonds that lost value because interest rates were being raised by Powell. Nobody wanted low interest rate bonds when you could buy current vehicles at much higher returns. The deposits were not lent out as a commercial loan, they would not have to because they can make up money out of thin air. It was the problem of liquidity that was the problem.

@gerber680 Жыл бұрын

Peter Schiff needs to watch this

@TheIdealGasLaw Жыл бұрын

He's not going to change his mind

@Jensth Жыл бұрын

Peter Schiff is a grifter and a blow hard idiot.

@ehsanrakei3765 Жыл бұрын

Thanks, Professor Werner for your presentation I believe that you have described and summarized the banking industries properly. In my opinion, those people who are working in the banking industry should learn more from you.

@First_Principals Жыл бұрын

Looking at banking from the perspective of trust law is very different than an economic perspective.

@Minder666 Жыл бұрын

This is a partial retelling of Ludwig von Mises' Theory of Money and Credit from 1912. A few confusing points in this, but generally a good summary. I would, too, recommend Murray Rothbard's The Mystery of Banking.

@pecelirovucago7149 Жыл бұрын

Thank you Richard!

@JohnDoe-xg3rt Жыл бұрын

Excellent !!!

@stefan-stocksmadesimple5241 Жыл бұрын

Very straightforward 👍

@josephchipokosa4788 4 ай бұрын

I need to understand why some banks go out of business when they can just create more money.

@ChrisWakeford Жыл бұрын

I was TOLD to not share this intel with the likes of my customers as a' Gagged' adviser.....

@zaidal7450 Жыл бұрын

What a great presentation by Prof. Werner. I wonder where I can find the ppt slides of this presentation, and the slides of other presentations of his.

@greenmanlove1 Жыл бұрын

helpful info thanks

@interestedpart2650 Жыл бұрын

Excellent

@felixroth4399 Жыл бұрын

Great presentation. Where can one get the data on the amount of credit created in a country? I couldn't find anything on the profit research center website.

@sheevamatimbas4300 Жыл бұрын

Double entry book keeping...... A wonderful thing

@mgnm2013 Жыл бұрын

It's not a fault of double-entry bookkeeping when the financial auditors do not do their jobs.

@fernandinand Жыл бұрын

A guide for the next decade(s)...

@TheIdealGasLaw Жыл бұрын

I have a few questions. Can funding university research be a form of productive investment? Can student loans be a form of productive investment if there existed a functioning debt market for these loans? For credit growth, do you use the total credit issued by the banking system? I'm a fan of your work. Thank you for providing me with these interesting ideas.

@Jensth Жыл бұрын

Of course it can! Its all a question of teaching the right things. Children are the future so investing in their education is an investment in the future... IF you do it right.

@md.miranshahchowdhury5443 Ай бұрын

How do Banks create money where money issued by Central Banks? Fractional Reserve does not mean money ctration rather than a part of Reserve money.

@md.miranshahchowdhury5443 Ай бұрын

Banks also pay in cash to enterprises. Guys availing loan do not keep money idle with banks.

@hasancoool Жыл бұрын

Which measure of aggregate money do you use for bank credit?

@deanmckenna6094 Жыл бұрын

Creating money out of nothing sounds a little bit like alchemy. From lead to gold. ;)

@Jensth Жыл бұрын

Its like handing out privileges. Like when someone is knighted by the Royals :)

@nyamutota 6 ай бұрын

It's worse than alchemy, at least the raw material in alchemy is actually worth something, unlike *nothing*

@nyamutota 6 ай бұрын

True alchemy is converting all of life's experiences (the seemingly good or bad) and converting them into one output, love, or as common folk were led to believe, gold 😂

@lefthooklansing Жыл бұрын

Brilliant economist, not sure how much he's influenced by his faith. I do agree with him that you can create a free lunch (for the people) via banks. NYC knows well...

@nyamutota 6 ай бұрын

He doesn't recommend free lunches though, he's more into productive credit creation, credit that puts people to work. About NYC, my worry is that if it's already there, it's coming soon to your neighborhood 😢😂

@jamesdean1143 8 ай бұрын

Debit Loans Receivable Credit Customer Deposit Liabilities All done electronically. Cannot be done with cash. Cash entries would be as follows : Debit Loans Receivable Credit Cash removed from bank

@matteocicchetti2086 Жыл бұрын

Too bad he's Professor Richard Werner and not King Richard.

@KimetsuNoYaiba100 Жыл бұрын

Money is liability of the banking system. However these liabilities of the banks aren't created out of nothing. Technically speaking, these bank liabilities are created out of assets (IOUs of the borrower like mortgage etc,.)

@mgnm2013 Жыл бұрын

A wrong perspective. What money represents to banks, doesn't concern the rest of society at all. That's their problem! If they were transparent and honest from the very beginning, money wouldn't be a liability for them. Essentially, they had to cover unauthorized money creation with fraudulent bookkeeping. Now, what is money? Simply put, money is a CLAIM, the special kind of claim universally accepted in some country or territory. With money in our possession, we can claim all the goods and services available. You can test this definition for yourself. If money would be a liability or some kind of debt by its nature, no one would accept it in return.

@KimetsuNoYaiba100 Жыл бұрын

@@mgnm2013 Money is and always has been the liability of the banking system. It's a fact. Money creation was always "authorized"; they called it fractional reserve banking in the earlier days to hide the credit creation process. Money is a medium of exchange. Money is liability of the banking system. Banks conduct all of our transactions in their liabilities.

@mgnm2013 Жыл бұрын

@@KimetsuNoYaiba100 Let's test your "fact". Fiat money is a much older concept than banks. Rulers and monarchs coined money long before any bank, or double-entry bookkeeping. So, money by itself cannot be defined as the liability of a bank or banking system. This "definition" doesn't explain anything. Technically, it's perfectly manageable to have money without banks, or even double-entry bookkeeping, especially in today's corrupt form (using fictitious deposits). So, please don't attach the existence of money to a banking system. Ask yourself, how does a banknote or a coin represent a liability for a single (commercial) bank? Or from another angle, if they manage to abolish cash, how would then money be a liability for a bank? Lastly, who authorized money creation by commercial banks? Do you have a source, a paper, a law, anything?

@KimetsuNoYaiba100 Жыл бұрын

@@mgnm2013 If cash is abolished, the banks still own liability to the public but that liability can only be redeemed by transferring it another bank. One can't withdraw physical manifestations of that liability like notes or coins. I dont' know if there is such a law but given that Fed exists primarily to bail out the financial system and the government bails them out at times of crisis, it is presumed to have been authorized by the government.

@mgnm2013 Жыл бұрын

@@KimetsuNoYaiba100 , "but that liability can only be redeemed by transferring it to another bank" The problem is, there was no liability in the first place because they literally invented fictitious deposits out of thin air. Saying that cash is a "physical manifestation" of so-called banker's money i.e. liability as you call it, (client's current accounts basically), is like saying that coins are the physical manifestation of banknotes. No, all 3 forms of money co-exist simultaneously and comprise the money in circulation. If banker's money would be a legal and transparent form of money as banknotes and coins are, bankers wouldn't have to redeem or convert anything. It would be optional, just the same as banks don't have an obligation to change banknotes to coins. Because of the huge implications, there has to be a WRITTEN authorization, not to mention a prior debate. Both are lacking, I assure you. Creating money (that serves as national currency) without permission is called counterfeiting.

@mjsmcd Жыл бұрын

What happened to svbs deposits?

@peterstaykov9670 Жыл бұрын

☀️☀️☀️💯💯💯👍👍👍

@adelchidipalma9857 Жыл бұрын

Professor Werner is correct but the banks do not created loans out nothing. the promissory amount amount favour of the baks is money.

@whiteswordwarrior9995 Жыл бұрын

Is bank credit still growing as of September?

@Jensth Жыл бұрын

Its really hard to say, given that so much credit is derived via the off-shore banking system, outside of the national authorities and jurisdiction... But there is no question that expansion is slowing due to tightening by central banks. But... long term, economic expansion needs to continue for the system to function. We can have credit contraction short term, but if it continues, the system breaks down.