00:08,400
The Monetary Creation Stakes
00:12,200


00:15,165
Hello, I am glad to see so many of you.
00:18.200
I have been working for 6 years on
2 unusual but fundamental subjects
|
that are discussed nowhere in the
media, though.
00:33,590
I came to that step by step.
00:35,650

00:37,110
Like many of us I was politically
inactive before 2005
|
and I woke up to this during the
debates about
|
the european union constitution.
00:51,660
Reading this text I got scared because
this text was incompatible
|
with our national constitution and it
was clearly made to overcome it.
01:08,275
I knew that this treaty was a bad
constitution because
|
it left people helpless against abuses
of power.
01:16,180

01:17,150
I saw it and denounced it.
01:22,000
I was lucky to be heard.
01:24,690
This kind of luck changes a man because
|
my point spread widely and quickly
on internet.
01:37,330
People started to discuss and
criticize it,
|
I spent nights to answer them,
|
I had to sharpen my arguments and
|
all this helped me to greatly improve
on the subject.
01:53,600


01:58,140
Finally...
01:59,610
I am trying to sumarize briefly what
brought me to this in 2005.
02:05,400
After 2 months I got nearly 800,000
visits on my website,
|
about 40,000 a day during the
last month.
02:16,250
It is quite something for a
normal person.
|
I had never been in politics before and
|
My audience was never larger than a
classroom before that.
02:28,140

02:29,580
People sent me like 400 emails a day,
some enthusiastic, some moving.
02:37,100
But I got some incisive emails too,
|
calling me a fraud or an idiot,
|
some very nasty emails.
02:45,100
I spent nights to answer them first
but there were too many.
02:49,110
Therefore I started to answer people
on my web site.
02:53,800
I answered to these people
once for all because
|
everybody told me almost
the same thing.
03:04,000
So I published my answers to these
emails on my web site.
03:10,000
And you pay a particular attention
to your answers when you know
|
that you will be read by 40,000 people
during the next 24 hours,
|
some of them seeking the first
slightest mistake.
03:25,200
It urges you on to read much,
to sharpen your arguments,
|
you seek help from any clever
source around you.
03:38,000
Therefore, in my first text, I beged
for people's participation.
|
It was incredible for me to have
an opinion
|
that differed so much compared to
what I heard on the radio.
03:50,650
I wrote:
"please, tell me where I am wrong.
|
I must be wrong, I am no match for
leading experts
|
like Giscard d'Estaing or Delors
that built European Union.
04:05,510
In my text I wrote:
"I might be wrong somewhere.
|
So please just tell me and I will
correct my mistakes.
|
But as far as I know,
this is my current position".
04:14,270
And...
04:15,750
it worked. People helped me and
the final text is still
|
available on internet, it is called
"Une Mauvaise Constitution".
04:24,580
And it is still very relevant since
this very constitution
|
was finally adopted.
You know that this so called
|
"new" constitution is a simple
compilation of the older treaty.
04:37,850
The original treaty was
simply differently rewritten.
04:46,300
With minor changes, but basically
the same rules applied.
04:49,965
You know that the constitution
voted in 2008 by the parliament
|
was rejected by referendum
in the first place.
|
This is for me an authentic treason,
a Coup d'Etat.
05:05,100
This is deeply legal for having been
voted by the parliament
|
but this is exactly what I call an
abuse of power.
05:17,300
This is precisely what I want
to discuss today.
|
This is the heart of my work,
what I am working hard for.
05:27,350


05:29,030
I...
05:30,300
I seek efficient solutions against
abuses of power.
05:36,400
any case of abuses of power:
abuses from socialists,
|
abuses from capitalists,
abuses from people...
05:42,310
I intend to organize the society in a
way that abuses are not possible.
05:52,050
And in general, abuses of power
are done by rich people.
05:57,000
Not exclusively, people also
might commit abuses.
|
For example a popular gathering
might become
|
a furious mob and might commit
injustices and abuses.
06:12,000
But it is most frequently done
by rich people.
|
We will see when and how.
06:18,200
So I want to resist abuses of power.
|
For that I intend to identify the
cause of the causes of abuses.
06:31,550
I mean that problems have
more than one source
06:37,400
and
06:38,770
I observe that people I argue with,
politicians from any party...
06:47,210

06:48,600
usually consider a unique aspect of
power abuse, and fight it separately.
06:57,540
For example, one will take care of
and only of ecology.
|
He will focus on that, he will spend
all his energy on that
|
and he will drop other topics
07:10,800
He will not try to discover why ecology
is no political concern,
|
why people who might want to fight for
ecology have no political power
|
and how comes that people who destroy
environment have political power...
07:31,160

07:31,990
both political and economical power.
07:34,950
Usually no one tries to understand
that but when I seek for
|
the origin that enables the ecological
destruction of the planet
07:44,500
I find a political cause...
07:46,470

07:48,000
and an economical cause.
07:49,500
I observe that large scale destructions
are done by rich people
|
who rule politically by means of
election.
07:58,260
Ecology is just an example, there are
many topics like that.
08:01,350
For example, feminism...
Currently, left people are focused on
|
fighting for feminism,
fighting against racism
|
and have many similar positions
I may agree with.
08:19,520
But all this is not the main problem
for me.
08:24,070
The multiplicity of social strugles
is dividing us...
08:28,700

08:30,950
because people fight consequences
instead of fighting causes.
08:36,700
As if...
08:38,900
As if we had water-flood.
08:41,950
There is a faucet fully turned on,
and there is a water-flood.
|
Everyone is mopping up and no one is
considering turning off the faucet
08:48,700


08:49,460
As another example, imagine our social
activity flowing like a river.
|
This river is extremely polluted by a
pink foam representing unemployment.
|
On one side of the river, people are
fighting against unemployment.
09:07,230
But these people never try to
investigate upstream,
|
never far enough to discover the
source of the problem.
09:13,675
And on the other side, people with
another concern are doing their best
|
to repair ecologic damages, to urge
people to respect the environment,
|
but once again, without looking for
the original problem.
09:28,770
I am interested in all these topics and
|
when I try to identify the
deepest cause of all these problems,
|
I always get the same answer.
We always find...
09:42,030


09:43,600
rich people...
09:45,875
with power...
09:47,720
because they bought election.
09:51,200
They paid for the winner's campaign.
09:54,500
You always have manufacturers and
bankers, namely rich people.
10:00,000
We will see that banks arose
out of storekeepers.
|
So basically banks and manufacturers
are alike,
|
it is the wealth accumulation that
enables political corruption.
10:11,880


10:15,500
So...
10:20,675
My works are focused on 2 big topics:
10:26,000


10:27,330
the monetary creation, this will be
the first part of my talk.
|
This is a wide topic and I could spend
a whole day on that
|
so I will try to be as synthetic
as possible.
10:46,420
I may come back to that later and go
into the subject in greater depth
|
during a discussion, according to
your wishes.
10:58,050
In the second part of my talk, we will
discuss the joined political aspect:
|
I think that we won't take money control
back from bankers without sortition.
11:10,760
For me, election is the problem. It is
desperately considered as a sacred cow.
11:18,800
I can understand that
multinational company
|
support the election principle.
And they do it.
11:23,630
But there is something strange about
left humanist people
|
who yearn for a peaceful society
where arms dealers do not decide.
11:34,570
Oddly enough, they defend the election
that enables rich people to buy power.
11:41,060
This will be the second topic
of my talk.
11:47,480
I will show you the
athenian democracy.
11:52,300
It is a great system that
raises objections.
11:59,440
I have been working for a
long time on that system
|
so I am able to refute all
these objections so far.
12:06,675
But maybe you will ask me
new questions.
|
This is exactly what I expect
from this meeting:
|
new objections that I have not
considered so far.
12:19,820
First, let's talk about money.
12:22,370


12:24,680
Well...
12:26,850
We are currently facing many
social problems.
|
Society is under pressure
because of difficulties
|
which seem mainly caused by
unemployment.
12:45,700
In our economy where few are
self sufficient...
12:52,000

12:53,940
we need money to trade
between each other.
12:59,200

13:01,100
In a world where money is rare
|
and people who create it
do not create enough,
|
we have to work to earn it,
|
so we strongly depend on jobs,
13:17,750
i.e. work that is willingly
given by an employer.
13:24,000

13:25,350
And...
13:27,460
When we consider unemployment,
there is something strange about it.
|
Jobs enable people to work
in exchange for payment.
13:38,000

13:39,950
We do not lack workers,
we have plenty of them.
13:47,850
And we do not lack things to do, we
have plenty of useful things to do.
13:54,360
For example, we need to isolate
buildings with
|
triple glazing to heat them
with fewer energy.
14:04,300
We need to build housing for everyone.
14:07,820
Well, I won't tell more,
there is plenty of
|
things to do for us all to live
with dignity.
14:17,000
So there are people who are
ready to work
|
and many things to do.
We simply lack money.
14:27,260
And...
14:28,750

14:30,645
And... is it complicated to
create money ?
14:34,100
No. It is not.
So why are we lacking money ?
14:37,640
This is exactly my point:
14:41,220
understand why we lack money and
discover the origin of that.
14:49,630
What it money ? Who creates it ?
Is it hard to create ?
14:53,300
What are theories around that ?
14:57,270
I will be quick on that, but it is
useful to know
|
the theory accepted by present
economists.
15:02,705
And also to know alternative
theories found in
|
human history.
Some are very interesting.
15:10,120
And also monetary experiments,
also very interesting.
15:16,350
I do not know all of them but...
15:21,970
I will tell what I have discovered
so far and
|
you may also share your knowledge
with me.
15:30,070
Because the number of money experiments
is amazing and fascinating.
15:36,300

15:39,450
So,
15:42,620
how is money created today ?
15:46,000



15:48,600
I brought many books you may refer to.
15:54,300

15:56,000
I will often mention them in my talk.
16:01,000

16:02,670
About history of money...
16:07,305
When you learn about money,
how old it is,
|
which form it took...
you discover a fascinating story.
16:16,070
With a book dealing with history of
money you will go through
|
human history and you will better
understand the world today.
16:27,400
Because the way money became
a privilege for few people,
16:33,200
has a great impact on the way
we live in peace and prosper.
16:39,300
This is decisive for peace.
In other words,
16:43,630
wars are mainly caused by bankers.
16:47,430
So it is crucial to understand this.
16:51,620
I have a huge amount of books
dealing with money creation.
|
I selected the best of them for you.
17:04,000
There is a first great man, Galbraith,
17:09,500
he is dead, he has a son still living,
17:14,160
He wrote
"Money: Whence It Came, Where It Went",
|
it is full of british humor,
it is very nice to read.
17:27,025
He described greeds, cheatings,
dirty tricks, plots...
17:34,200
Galbraith has a great credibility,
he worked with important people.
17:40,860
He was a great economist together
with a journalist and a humanist.
|
He took a stand for people against
oligarchy, bureaucracy and injustice.
17:59,850
And his book...
[Which period ?]
18:03,670
Mid and late 20th century,
he died a few years ago.
18:10,000


18:11,220
And his son seems to be like him,
a good man too.
18:21,600
In this book, definition of
money is great.
18:28,710
I put a mark on that...
18:32,120
I want to read it, it is very short.
18:35,050

18:36,610
He warns us...
18:39,660
There is something funny about that...
18:43,860


18:45,770
He explains that money is made
complicated on purpose,
|
to confuse us like doctors
a long time ago, like lawyers...
|
They  maintain a technical jargon
to keep underlings apart.
19:05,090
"The reader should proceed in these
pages in the knowledge
|
that money is nothing more and
nothing less than what he or she
|
always thought it was - what is
commonly offered or received
|
for the purchase or sale of goods,
services or other things"
19:23,450
Anything else is useless confusion.
19:26,800
Indeed, when we address money creation
|
and how this was stolen to the people,
|
we will see that it is not complicated.
19:37,750

19:41,850
There is a second book that I like,
also very nice to read:
|
"La pensée monétaire de l'âge classique
à nos jours" by Christian Tutin
19:52,920
"Tutin", T-U-T-I-N,
19:55,200
He quoted the best parts of
contemporary experts on money:
|
from Locke to Hayek including
Law, Cantillon, Hume, Thornton,
|
Ricardo, Marx, Fisher and of course
Keynes and Friedman.
20:20,850
But it is not hard to read
because it is the
|
best about money written
by the best authors.
20:28,050
It is actually a fierce
debate between
|
those people to determine
what money is.
20:35,130
So a good book to understand
the stakes.
20:40,200


20:44,850
I won't do history of money,
I will tell you what it is now.
20:49,880
Today we have two kinds of money.
20:53,870
First, there is the money we use,
|
this money is mostly created
by private banks.
21:03,420
And there is money created
by the state.
|
A small part of it is paper money,
|
the other part is exchanged
between banks.
21:13,430
So there are two kind of money.
21:16,120
The money exchanged between banks
is not our concern.
|
You will never see it,
it is just for banks.
21:24,200
And there is the money that
we exchange between us.
|
It is hardly created by the state,
it is mostly created by private banks.
21:33,620
How and when is it done ?
Let us take an example
|
to see how money appears
and then disappears.
21:42,800
Let's say, you need $100,000
for your house.
|
You go to the bank and say:
"please loan me $100,000".
21:54,650
The banker does not have
this amount of money,
|
however if you are reliable
he says "no problem".
22:03,100
If you are not reliable,
there is a chance that you
|
do not pay off your debt
and it will become the banker's
|
responsability to pay it back.
So he pays attention to it.
22:18,100
I should stand up for that.
The banker has a balance sheet.
22:25,950
I had a drawing for that.
22:29,760
There are assets and liabilities.
22:33,050
I am a bank, assets are what I am owed
and liabilities are what I owe.
22:40,000
Liabilities are what I owe,
so you want $100,000, here they are.
22:48,400
This is on my account,
I owe you $100,000.
22:52,500
There is still something wrong,
it is not balanced yet.
22:56,220
I have to write the same amount
on both sides of the balance sheet.
23:02,100
For now it is not balanced,
but what I wrote here
|
as liabilities, as debt of my bank,
is new money.
23:10,000
I shall explain how it
circulates after that.
23:12,240
And the credit operation is not
completed yet. The banker says:
|
"I owe you $100,000" and in the
same time: "you owe me $100,000".
23:22,200
On the other side, as assets
he writes $100,000.
|
He says: "now you owe me $100,000".
23:30,190
When a bank gives someone credit,
two debts are created.
|
Bank and borrower together
create two debts.
23:40,950
The debt of the bank is paid now, and
the debt of the borrower is paid later.
23:47,380
Difference lies in term.
23:51,000
[3 debts are created]
What is the 3rd ?
23:53,250
[interests]
Interests... indeed...
|
but interests are taken
from existing money.
24:03,410
The money is only created
from the amount that
|
people borrow and that is
granted from banks.
24:13,120
Then, you pay off your debt with
interests. For now I leave that apart.
24:18,000



24:19,500
There is $100,000 on both side of the
balance sheet and then people pay back.
|
$10,000 back, $10,000 back, money is
progressively destroyed on both sides.
24:29,080
And at the end, money disappears.
24:33,000


24:37,470
Money disappears. If everybody paid his
debts, there would be no money left.
24:42,703
Almost nothing,
just banknotes and coins.
24:46,700
[money as debt]
Money as debt, indeed.
24:52,350
Any money that circulates through
bank accounts is called
|
"demand deposit". It appears and
disappears just as I said.
25:03,815
Money appears together with debts,
25:10,000
and disappears together with
repayments.
25:15,970
More than 90% of the money today
was created like that.
25:20,750


25:25,610
So... how comes...
25:28,820
I should also tell
how it circulates.
25:32,815
The person has this amount of money
on his bank account.
25:38,250
With that he will pay his suppliers
and his workers.
|
A part of this money will leave his
account for another in a bank B.
25:51,650
And it works the same way with assets
and liabilities, so let's say
|
$10,000 have gone, there are $90,000
left and $10,000 arrive here.
26:02,400
And money just go.
26:05,410
It is just a new entry on the
"liabilities" column of a balance sheet.
|
Money is created as liabilities
and circulates through liabilities
|
of banks with the help of checks,
credit cards, transfers...
26:21,930
If you take an overview of the bank
system, you see that money consists
|
of liabilities of all banks and
circulates thanks to checks, etc...
26:33,600

26:34,700
Yes ?
[It is like a unique bank]
26:36,500
Exactly ! They create money together,
they lend to different people.
|
For example, I am J.P. Morgan, I hold
10% of the stock market,
26:49,050
it means that I am in charge of 10%
of the people's money,
26:54,650
and each time it lends 100, 90 go
elsewhere and 10 remain for me.
27:01,530
In the same time, the other banks
lend money too and
|
10% of these loans eventually
come into my accounts.
27:11,920
So if all the banks together
create $1,000 during a day,
|
$100 are for me, whatever
the source of the loan is.
27:23,480
Each bank has to lend in proportion of
the market share of its deposits.
27:29,580
If a bank lends more than the
others in proportion,
|
money will go to other banks
and it will have to
|
raise capital, that is it
will have to pay...
27:45,700
I think that it is useless to go
deeper into the detail.
27:49,920
We will come back to that when
we talk about objections.
27:56,060
Bankers pretend that it is a
strong restriction to
|
money creation that banks
are in competition like that.
|
But if they lend money at the same
pace, there is nothing to compensate.
28:13,725


28:13,725
The money supply consists of
the sum of all
|
credits that have not
been paid off yet.
28:23,520
It is like a bathtub that fills up with
a faucet that represents new loans.
28:31,420
So any new credit contributes to
fill the tub of money supply.
28:37,490
And repayments are like the
plughole from which water
|
flows out regularly according to
the schedule of repayments.
28:46,770
So the amount of money supply fills
and empties like a bathtub...
28:53,000


28:55,210
...but it fills in a way
that has nothing to do
|
with our needs.
Actualy we need money to trade.
29:05,980


29:08,340
Image is a bit old but it is like blood
in the body that enables to trade.
29:17,285
Blood circulates in our body,
it takes particles
|
somewhere and bring them somewhere else.
29:26,550
Too much blood is bad,
to little is bad as well.
29:29,990
It is important to have
the right amount of blood
|
as it is important to have
the right amount of money.
29:36,025
In optimistic periods,
when we trust in the future,
|
we, humans tend to borrow much.
29:46,650
In the same time,
bankers tend to lend much.
29:55,890
This leads to the creation of
much money. money supply inflates
|
and it leads people to take
more and more risks than they should.
30:07,720
I am simplifying. On the contrary,
and this is what I worry about,
|
there is the reversed situation.
People's mood switches from
|
optimism to pessimism,
like during the real estate crisis.
30:25,640
And the market is under the "sheep"
effect, all agents behave the same way.
30:33,270
When everything is fine,
the market is optimistic,
|
and when it starts to turn, the actors
start to depress all together,
|
they stop borrowing,
bank stop lending...
30:48,280
whereas people keep on paying off.
The bathtub keeps on
|
emptying according to the schedule
of repayments while
|
it stops filling and thus you have
less and less money...
30:57,910
and more unemployment.
31:01,350
The strict connection between
money and unemployment is hard to draw
|
but this argument has been held
by many theorists for a long time.
31:15,080
And...
31:17,620
the most famous is Keynes.
31:21,400
I think it is not stupid to correlate
the amount of money with unemployment.
31:30,440
I am conduced to think so
because of some
|
experiments with alternative form
of currency.
31:42,230

31:43,360
In many cases of alternative currency
in history, I observe that...
31:50,365
First of all,
you need a serious crisis to create
|
a new currency:
when unemployment rate is very high,
|
when craftsmen and storekeeper
can not work...
32:03,120
In such situations districts take
locally control of the money
|
and start to pay civil servants
with money they create themselves.
32:13,765
Money is something highly conventional.
You just need trust to make it work.
32:21,220
And in any experiment I know,
it takes only a
|
couple of weeks to make
unemployment disappear.
32:28,060
Activity starts again when
you bring money to it.
32:32,000

32:33,390
I mean that there is a relation
between unemployment and
|
the introduction of new money when
there is not enough.
32:42,710
But you have to pay attention
not to create too much money,
|
else its value might collapse
and then you might face
|
other kind of disasters.
But if you create money moderately...
32:54,450
you have a solution to unemployment.
32:57,800
But if you give the money you create
to rich people like today,
|
to people who do not spend it and
accumulate (like a sickness)
|
then you will not solve your
problem of employment.
33:13,250
You need to give money to those
who spend it.
33:16,950
Jean-Marcel Jeanneney, a minister of
de Gaulle wrote a book called
|
"Ecoute la France qui gronde".
It is out of print, hard to find,
|
maybe as a second-hand but I published
the best parts of it on my website.
33:36,120
First, this guy explains that creating
too much money generates hyperinflation:
|
money loses its value and it is a
disaster for everybody.
33:45,575
He reminds of Assignats during the
french revolution,
|
the John Law's system,
the german hyperinflation in the 1920s.
33:58,650
He knows that. However he suggests that
the state should create paper money,
|
not money for private banks, nothing
you need to pay off but banknotes.
34:13,300
And then, without going through banks,
distribute FF3,000 to any individual,
|
kids, elder, men, women and observe
empirically what happens.
34:32,010
Does it create inflation ?
34:33,700
If not, then we do it again
6 months later.
34:36,010
Else we stop for a time.
34:38,190
He proposed to distribute money to
people. But the original aspect lies
|
in that money is given to people
who spend it. This changes everything.
34:49,810
Currently we create billions that we
give to people who do not spend it.
|
They possibly lend it but with
expensive interests.
35:01,080


35:07,740
About money creation I omitted
a point that should be mentioned.
35:17,000


35:20,020
Until 1973 in France,
and 1913 in the U.S.
35:25,480


35:27,420
the state was allowed to create money
like private banks.
35:30,310
Banks could create money like I said
but state could also
|
create the money he needed for itself
and its investments.
35:39,000
For that it just needed to borrow
from its central bank.
35:44,770
And as central bank belongs
to the state, and
|
we are the state, the loan was
without interest.
35:54,310


35:55,340
When the state paid off,
it did not pay interest.
36:00,900


36:03,900
But eventually France, U.S. and Europe
were victim of a monetary coup d'état.
36:12,100
The monetary creation was left
to private banks exclusively
|
so that states cannot borrow
from their central banks anymore.
36:22,850
In other words, oblige the states
to borrow
|
from private banks
for their investements
36:29,900
and oblige them to pay interests.
36:34,050
And in any country where it happened,
public debt appeared.
36:40,790


36:42,200
Public debt was successfully used
to enslave Third World countries,
|
to steal their raw materials
and resources.
36:53,310
This happens now to developed countries.
36:56,550
Progressively, the state
37:02,320
is forbidden to create its money
37:05,760
and is forced to borrow
37:08,550


37:09,330
on the stock market, that is
from rich people.
37:13,160

37:15,210
This way, the elected representatives
enslaved the state, made it dependant.
37:23,290
This happens clearly in Europe today.
Greece, Portugal, Ireland
37:30,870
are beeing strangled
by the debt system and there is
|
most likely no way around it
for the other countries.
37:38,170
[It is interesting to say that
in 1973 this was decided
|
by Pompidou and Giscard d'Estaing.
And who was Pompidou ?]
37:46,790
Pompidou was the manager of the
Rothschild bank.
37:52,240
[As an example of what became
world politics, when Gaddafi
|
came to Paris, he pitched his tent
in the garden of the
|
Rothschild family.
Just another interesting relation.]
38:04,560
I didn't know that.
38:07,250
Anyway. We actually often call
this 1973 law, the Rothschild's law
|
because it incredibly served
the interests of banks.
38:18,180


38:19,200
And we are the ressources of the
states. The work of millions of people
38:24,630
is thus for a large part dedicated
to pay the debt service,
38:30,740
to pay the banks, the creditors
of the state, on public spending.
38:35,570
Since the state is not allowed
to borrow from
|
its central bank, it has to borrow
from private banks.
38:41,980
So what happend in 1973
is deeply against
|
general interest. It is a coup d'état.
38:49,790
And... the same thing happened
the same way
|
in the U.S. in 1913 and with
the same banks.
38:58,380
So...
39:00,830


39:04,660
I think that the most relevant
book about this
|
period is
"Secrets of the Federal Reserve".
39:10,990
I think that it is the best book
to understand
|
the monetary swindle of that period.
39:17,090
It has existed for a long time but
it was translated into french recently.
39:25,190

39:26,860
That's bomb.
When you read that you get outraged.
|
It is easy to read, like a detective
story. And it explains how...
39:39,150
[Eustace Mullins]
Eustace Mullins: M-U-L-L-I-N-S.
39:44,130

39:47,050
It explains how a couple of bankers who
were detested by the american people...
39:52,560
The americans just emerged from a
dreadful crisis. They had been ruined,
|
they lost their savings and people
hated banks and Wall Street.
40:02,500
[This was initiated by J.P. Morgan]
Yes, but I cannot tell everything now.
40:08,350
But...
40:10,275
How a couple of bankers literally
conspired: they hid on a private island
|
with a member of the Parliament
to develop a project of central bank.
40:25,450
But a private central bank.
A bank which looks like a
|
public bank but is not,
which is called "Federal Reserve"
|
and which is neither federal
nor american nor is a reserve.
40:39,530


40:43,000
They wanted this project to be voted by
the congress. It failed the first time,
|
then they tried again in 1913...
The plot of Jekyll island was in 1910.
40:55,380
All this looks like a detective story.
41:01,000
The servants were given vacation.
They had hired new foreign servants
|
just for this meeting, just for one week
so that nobody could recognise them.
41:15,210


41:16,860
Mullins' work is really interesting.
He pieced this
|
puzzle together:
he relied on thousands of old
|
articles... even on books written
by the conspirators.
41:28,100
After the system were installed, some of
them started to talk as they got older.
41:32,100
He managed to complete the puzzle.
He did a huge
|
research work, very complicated and
very interesting.
41:38,570
And we discover the same procedure,
the same rules,
|
the same outrageous rights given
to the central bank
|
compared to states in the current
european system.
41:51,120


41:55,510
This book describe also the way
this project has been voted.
42:01,680
These bankers financed the campaign
of the three
|
candidates... The two main candidates
who could win
|
the election had both a project
of federal bank.
42:16,995
they were described as contradictory
whereas
|
they were alike, they led to
the same thing.
42:25,430
Finally, Woodrow Wilson was elected
in 1913. The first thing he did was to
|
vote this project of federal reserve
in a quick and dirty way, in december.
42:39,500

42:41,510
He did it against public opinion and
against general interest. Since then...
42:48,350
I think it is relevant to describe
America as an occupied territory.
42:53,590
These people have had their money
stolen and thus have been
|
enslaved by some privileged guys
with power beyond imagination.
43:03,090
You have to realize that by taking over
the dollar, they took over the world.
43:08,390
Eustace Mullins did a major
investigative work to expose the owners
|
of banks. There are shares and control
shares which are more important...
43:18,440
Nowadays this secret is kept as well
as the nuclear launch code.
|
Today it is almost impossible to know
who controls banks.
43:29,560
Back then the information was
still available and the trail of
|
the ownership of the Federal Reserve
led to the City in London.
43:40,540
That's the last straw !
Can you imagine how harsh it is
|
for american people ?
And it led mainly to Rothschild.
43:49,500


43:53,300
This deserve to be discussed in public.
|
Mullins might be wrong on some points,
we have to check.
44:01,680
The problem is that we cannot
discuss that
|
without beeing called a fascist
or an antisemite.
44:08,410
It seems that antisemitism was made up
to protect Rothschild. When we talk
|
about him we are immediately called an
antisemite, a fascist... Hitler soon.
44:20,610
Well I don't think I have much
in common with Hitler and fascists.
44:27,260


44:30,600
So, among alternative solutions,
there is "Freigeld" (free money).
44:38,080
"Freigeld" is a concept proposed by
Silvio Gesell. He was a famous
|
and appreciated economist who
proposed something interesting.
44:51,100
Keynes considered Gesell's concept
with respect.
44:57,900
Gesell tried to prevent people
from accumulating money.
|
Indeed, other people need
unused money to circulate.
45:05,250
So, in order to dissuade people
to keep unused money with them
|
he proposed that money might
lose its value each month. For that,
|
stamps had to be purchased and
attached to the money to keep it valid.
45:23,140
Indeed, this encourages people to
get rid of it since it loses its value.
45:28,950
But if you think about it,
Keynes' solution
|
involving a bit of inflation
is equivalent.
45:37,250
Inflation makes your banknotes
lose their value progressively.
45:41,820
"Freigeld" and inflation
are very similar.
45:46,680
Not exactly identical though.
Anyway, it was
|
Keynes' solution to
"Euthanize the rentiers".
45:54,570
That is a rentier...
45:56,840


45:58,920
Inflation reduce the gold pile
of a rentier. Workers, however...
46:06,740


46:08,700
About protecting people
against inflation...
|
I am a bit lost with my books but...
46:15,430
Concerning solutions to
withstand inflation...
46:20,915
Maurice Allais was not in favor of
inflation, but explained that a little,
|
2% was necessary - due to landed
property, I will not explain that.
46:30,740
So, these 2% that Allais suggested
to maintain, were compensated
|
by a general indexation system
like France knew after 1945.
46:44,920
During 30 years in France,
people's income were
|
indexed to inflation with the
sliding wage scale.
46:50,570
Wages were indexed, loans were indexed,
rents were indexed and thus,
|
for the workers and the little people,
inflation was painless.
47:00,790
Only the wealth of people
keeping banknotes decreased.
47:05,300


47:06,690
Actually, speculators often managed
to earn more than inflation.
|
Only the wealth of people keeping
piles of banknotes decreased.
47:14,860
And more people than you think
keep banknotes.
47:17,780
For those people...
47:19,930


47:22,100
money melt away.
47:24,520
So "Freigeld" is a solution to prevent
people from accumulating too much money.
47:34,400
Concerning the maleficence that happend
in 73 when the state
|
abandoned monetary creation,
I see as consequences...
47:44,340


47:46,120
a ruined state.
47:48,110


47:49,500
You have to understand that
rich people have much to fear
|
from a strong state that
they could not control.
47:59,770
So the strategy applied by
so called "liberals"
|
all around the world aims
to destroy the states.
48:09,690
And an efficient way to do that
is to ruin it.
48:14,900
Ruin by depriving it of ressources
and Galbraith emphasizes
|
that great crisis are preceded
by cuts in rich people's taxes.
48:24,010
It is the sign of a crisis. 
48:26,340
When taxes of rich people
start to decrease strongly,
|
this means that we are getting
close to a crisis.
48:33,680
I think that Galbraihs is right.
Since recently, you can see
|
that often, rich people pay
almost no taxes anymore.
48:41,100
And when rich people do not pay taxes,
the amount
|
of money that state lacks is a
bottomless pit.
48:47,720
So first, the state is ruined
by depriving it of its ressources.
48:52,940

48:54,820
Second, by getting it into debt,
state is
|
burdened with the interests of the loan.
49:01,630
It is burdened with additional expenses.
49:04,140

49:05,660
You have to realize that the
interests of the debt,
|
not the refund, just the interests,
cost France...
49:13,270

49:14,460
It costs us 45, 50 billions euros
a year.
49:20,520
It is considerable !
50 billions just for a debt,
|
it is just the interests,
I insist, an unnecessary debt.
49:32,490
A debt that is not necessary.
If the state...
49:37,050
! [controlled his money]
had kept the right to create money
for itself...
49:43,550
If it was allowed to borrow
from its central bank,
|
that is to create money it needs...
49:49,870
it would not pay interests.
49:52,490
Besides, the amount of deficits...
|
André-Jacques Holbecq wrote
a short book, very simple...
50:01,180

50:03,350
This short book: "La dette publique,
une affaire rentable"
|
and this other one: "Argent, dettes
et banques"...
50:11,790
Two good short books by
André-Jacques Holbecq
|
that explain well and
enable to understand.
50:19,280


50:21,480
He did quite a hard work because
statistics were not
|
available anymore, so he had to
go hunting for them.
50:28,280

50:29,320
Since 1973, public spending
did not grow. It did not grow.
50:37,100
In proportion, it is roughly unchanging.
So how come we are
|
more and more in debt ?
Well look, it is the debt service. 
50:44,160
At the beginning in 73, debt was little,
|
so debt service was little
and thus the deficit was shallow.
50:51,070
And then, year after year,
deficit is roughly equal to...
|
not exactly, but it is very close,
the deficit
|
of the french state correspond
to debt service.
51:05,920
By reducing ressources of the state,
by increasing its expenses
|
and year after year...
you have to realize that since 73,
|
members of the Parliament decided
not to balance this growing deficit.
51:18,290
They could balance it by reducing
spendings or increasing taxes.
51:22,755
They did not. They left the debt grow.
51:24,950
Now we are told: "Parliament were lax"
51:29,310
or "they were weak"
51:31,410
or "they did it to be re-elected,
to remain popular".
51:37,820
Possible, but I don't buy that.
51:40,020
I do not. It is possible...
51:45,090
I think that all this
fits together too well...
51:51,590
This decision, year after year
to let the debt grow so that
|
the state is progressively
enslaved by those who lend money.
52:00,650
And eventually, the state will
depend on these people. All this
|
matches so perfectly the interests
of those who finance election...
52:09,810

52:11,210
that I can hardly believe that
it is a coincidence.
52:13,990
I know, it is conspiracist, paranoid...
52:18,730

52:19,970
Nevertheless, since 73, members of the
Parliament, the so-called "left-wing"
|
like the so-called "right-wing",
all of them let the debt grow.
52:30,050

52:31,480
I find it too easy to forgive them
pretending that
|
"they were weak, they wanted
to be re-elected".
52:39,980
For me all this looks like
an attempt to bring
|
the state to heel.
To bring the state to heel.
52:47,100
This is consistent with the destruction
of nations by the European Union.
52:54,810
This is along the same lines.
The European Union construction takes
|
part in the destruction of the nations.
The state that our revolutionary
|
fathers built in 1789 to get rid
of the old aristocratic system.
53:13,160
And we are beeing stolen that...
53:15,790

53:17,865
by those who were the privileged of this
system. This is a counter-revolution.
53:22,200
A lot of people write books called
"counter-revolution".
|
We are witnessing a counter-revolution.
53:30,830
The privileged are erasing...
53:35,550

53:37,620
what we gained in 1789.
53:41,110


53:44,710
Well...
53:45,370

53:48,240
I am reaching the end of my talk about
money, and I kept the best for the end.
53:55,120

54:01,590
Creating money aims to finance economy.
54:05,680
No matter whether state is allowed
to create money or
|
how much is created, our goal is
to finance economy.
54:12,930
For many years, for centuries, this
task was entrusted to the stock market.
54:19,760
To public companies and to the stock
market. Those who have too much money...
54:26,720
come to the stock market
to make it available.
|
And those who need it to
start a business, come to borrow it.
54:35,175


54:39,130
I think that stock markets
are justified in case money is rare.
|
And it is created by some
privileged people who keep it rare.
54:48,650

54:50,215
But if we consider, that money
should not be rare,
54:53,760
if we consider this as a society,
we could then design
|
a system where we would take back
the control of the money.
55:01,370
And we would create... not too much
money because we do not want to
|
live through those bad experiences where
everything collapsed because of it.
|
People were ruined and the situation
was worse than before.
55:15,620
Without creating too much...
55:17,880
I guess that we could create
more money than today and also
|
dispatch it to other targets
than what private banks do.
55:25,540
But if we manage to take back
public control of
|
monetary creation, we do not need
the stock market anymore.
55:33,350

55:35,190
We need neither the stock market,
nor savings, nor rich people's money.
55:39,840

55:41,260
So let us grant the control
of the monetary creation...
|
not to politicians...
55:48,240
I will come back to that later, but to
public power, to citizens. This could be
|
an assembly, possibly randomly selected
that decide how much money to create.
55:58,040
We shall discuss that
because it might be
|
too technical for
randomly selected people.
56:02,200
Anyway, some public power instance,
an incarnation of
|
what we, the people are,
could decide how much money we need.
56:09,570

56:10,680
This may be a way to finance economy
instead of private banks.
56:15,155
There is another way I wanted to talk
about, a wonderful work, very exciting.
56:20,500


56:22,890
This were brought to me by
Franck Lepage. Franck Lepage is
|
an exciting campaigner, you should
get to know him if you do not.
56:32,230

56:33,160
You can type his name into Google,
you will find his
|
"gesticulated conferences" where
Frank tells important things.
56:40,200
I cannot tell much for
it is not related to money:
|
his main topic is about a
popular education. It concerns
|
culture as political education
of young adults to avoid wars.
56:52,080

56:53,320
Culture is reduced to art,
which is a disaster.
|
Culture should include education
of young adults on ethics.
57:02,380
For example Orwell's Common Decency,
a kind of generosity...
57:07,330

57:09,310
altruism that can be developed
and taught with a dedicated education.
57:19,170
So, Frank's work is about popular
education: the scuttling of the culture
|
reduced to art and without political
aspect. It is an essential work but...
57:31,320
we may talk about that later
together with random
|
selection which is also a tool
for popular education.
57:38,120

57:39,120
Frank introduced me to
Bernard Friot's work.
57:43,000

57:44,455
I cannot talk in detail about
Friot's work.
57:50,800

57:52,030
I encourage you to watch Friot's
conferences, each of them is
|
2 hours long. I saw 4 or 5 myself,
I met him, I expect to do it again.
|
The work of this man is essential...
and revolutionary.
58:07,060
Before reading the book you should
watch several videos because he...
58:14,270
he improvises in his videos and
they are never the same,
|
there is always something new and
they are rich.
58:23,280

58:24,270
One has to master his own vocabulary
about job, wage, contribution.
|
He gives his definition of "job",
his definition of "work" which is...
58:36,000
very useful. I shall summarize
so that you
|
understand how it articulates
with my talk.
58:42,150

58:43,090
I am trying to finance economy
without rich people's savings.
58:47,605
I would like we, the many non-rich
people, to have a normal economic
|
activity, to live a decent life
without requiring rich people's money.
58:58,570
without requiring capital,
without capitalism.
|
Without the money accumulated by...
59:06,850

59:08,015
those who have money.
59:09,990
Taking back money creation
is a first idea. And Friot's idea...
59:14,360

59:16,280
That's another bomb. Friot says:
59:20,000


59:22,445
There is something in our
current real life,
|
this is no utopia, this is no dream.
59:31,400
In our real life,
there is an anticapitalist financing
|
system that works very well,
namely our pension system.
59:42,890
In what way is it a major
solution that demonstrate that
|
we are able to finance something
without saving money first ?
59:54,405
Well look how our grandparents designed
the pension system after the war.
1:00:02,930

1:00:03,640
It is easy, very easy.
1:00:07,070
We do not know what will happen
in 20 years, but next year we know
|
how many people are going to work
and how many will be retired.
1:00:17,940
We apply the rule of three and
thus we know the proportion of
|
the wadges that must be deducted
to pay the pension next year.
1:00:27,450

1:00:28,370
Each year we decide the part
of the wadges that must be
|
taken to pay the pension next year.
It is unsinkable.
1:00:37,775
Of course, for the baby boomer's
pension you must raise
|
the contribution rate, like today.
By the way, this rate
|
has kept growing since the end
of the 2nd world war.
1:00:52,620
The rate rises a bit each year.
This happens in a period of growth,
|
when wealth rises even more quickly.
Each time, we create
|
much more wealth and we take
a bit more of this new wealth
|
for pensions. It is painless and
the system is unsinkable.
1:01:12,535
Except if you scuttle it voluntarily.
1:01:17,020
When business leaders gained to
freeze the employer contributions...
1:01:23,205
when they stopped to increase...
to adjust the part taken on
|
wages for pensions, they scuttled it.
And then pretended that
|
the system was not viable.
But they unbalanced it voluntarily.
1:01:37,030
This is sheer sabotage !
The system was designed
|
to be self-balanced,
without the slightest deficit.
1:01:46,680


1:01:47,800
And it worked very well
with huge amounts.
1:01:52,400

1:01:53,350
Pensions are 230 billions a year.
1:01:57,890

1:01:59,500
And state is not needed.
These are social funds betwen us.
1:02:03,760
No state needed, no saving needed,
no loan needed,
|
and there is no interest to pay.
1:02:09,270


1:02:12,070
These are important commitments,
230 billions
|
over 30, 40, 50 years.
And it works very well.
1:02:20,700

1:02:21,910
Already 45% of the global salary
is paid by funds.
1:02:27,190
Not only retirement but also health,
unemployment... any social insurance.
1:02:31,335
Almost half of our income
is already paid
|
by firms to funds and then
by funds to us.
1:02:41,050
It is already happening,
and there is no need to borrow.
1:02:44,795
No need to pay interests.
No starting capital or savings needed.
1:02:49,080
Friot says: this system has existed
since the 2nd world war.
1:02:56,510
It has worked perfectly since then.
It should be
|
applied to every professional
categories, to everyone.
1:03:05,580
And above all, since it works
for pensions...
1:03:09,020

1:03:10,530
then let us do the same for salaries.
1:03:14,320


1:03:16,345
A firm would not pay its
employee directly. It would
|
pay a fund that would pay him.
It would be shared.
1:03:22,920


1:03:24,320
One may doubt it would work,
but it is already
|
working for pensions,
why not for salaries ?
1:03:29,760
And for investment.
1:03:31,500
Instead of entrusting the stock market
that does not finance economy anymore.
1:03:35,180
You know that all together
the stock market deplete wealth.
1:03:39,810
Each year, if you compare
what the market takes from economy
|
and what it gives to businesses,
it deplete wealth.
1:03:50,595
It is useless. For a long time,
the market has not financed economy.
1:03:54,200
I have discovered Friot's idea
for a couple of months.
|
It should be explored but
it is very appealing.
1:04:01,940
Friot's idea is:
1:04:03,910

1:04:06,380
"Let us follow...
1:04:10,290

1:04:12,090
the successful example of pensions
for 60 years.
1:04:16,980
Let us extend this system to other
problematic topics", like investment.
1:04:21,795
The part of GDP that goes
to investment is catastrophic.
1:04:28,955
We are far from the 25% of the GDP
we need.
1:04:32,505
But if firms were asked
a contribution in investment,
|
if firms that need to invest were able
to get money from an investment fund,
1:04:44,685
we would have 25% for investment instead
of relying on a useless stock marcket.
1:04:51,470
I think that none of these reform is
possible in the context of election.
1:04:55,900
Because elected representative,
for a large part...

1:05:00,140
a part that is hidden...

1:05:03,150
are answerable to their sponsors.
1:05:07,960
And if those sponsors are rich people...

1:05:12,655
the richest are not storekeepers,
they are banks.
1:05:16,600


1:05:18,525
So it would be an illusion
to believe that
|
representative would change
anything about banks.
1:05:23,890

1:05:25,035
It would be equivalent to a suicide.
1:05:30,495
So what I am about to tell about
sortition in place of election
|
is the political complement
to this work on financing.
1:05:40,800

1:05:42,960
I would be glad to hear
your opinions about financing systems
|
because I am still doing
research on that.
1:05:48,375
There might be things that
I have not fully understood,
|
or that I missed.
I am still seeking...
1:05:56,610

1:05:57,900
new material.
1:06:00,000

1:06:00,500
http://etienne.chouard.free.fr/Europe
1:06:06,000