haven't had a bank run -- retail bank run in this country in 80 years. i don't see the threats that the banks will suddenly be intermediated and people will move their money into a central bank account. they are protected either way. you will get your dollar either way. there's no reason to make this rapid intermediation. you can get it on the stable coins. but in my view, the money will go into your bank account. if you are not trusting a stable coin, you will move it into your bank account, not your cbdc account. i don't see a real advantage of a cbdc in creating a central bank run. it could. i'm not saying it couldn't. but just remediating banks in a run, we have not had that in 80 years. people feel comfortable leaving their funds in commercial banks. it is the shadow industry that has experienced runs, not the repair -- retail banking industry. they don't have all the protections on their accounts, deposit insurance, highly regulated, checking asset and balance sheets all the time. that is why people trust their bank accounts, but any -- may not tru

our banking sector has become dominated by the largest banks. community banks are being dulled out by competitors because they can't compete on a level playing field. this results in more concentration in higher costs for consumers and increases systemic risk for financial systems and banks. these transactions are having in plain view of the federal agencies whose job it is to keep our system saved and competitive. in fact, every bank merger requires approval from the department of justice and banking regulator. like the people we have in front of us today. chairman williams, the icy has a database of merger applications the agency has received 2013. that's over seven years now. you know how many merger applications the fdic has received enough time? >> i don't have the exact number. >> it's 1124. how many mergers of those 1124 that the fdic deny? total number of denials for any reason whatsoever. >> i don't have a number but i know the process -- >> i do have a number, it zero so this isn't just problem at the fdic. the fdic, federal reserve an

we rob banks. we made money robbing banks. and it took the fbi to do some underhanded stuff to get to us. that's what tees me off. - as a bank burglar, he was tops. best i've been across. at the end of the day, we were better. the fbi was better. - come on, no way. [laughs] they put us in jail at the end of the day. but the only thing they were better at? burglarizing my house and making false search warrant, no question about it. but like walter cronkite said, "that's the way it is." ed and said, "you don't wanna die for the bank's money, do you?" - ♪ - male narrator: it was a bold and violent bank robbery caught on tape. - ♪ - it really took me by surprise at how violent this actually was. - i can imagine how frightening that must have been. - narrator: at the center of it all, a former honor student who planned the whole job from the inside. - it is a lot of money, and it was quick. - ♪ - narrator: but when one robbery becomes a crime spree taking down hundreds of thousands-- - "we got away with it once, let's go back

so where did banks go? i think that was the central banks are now doing is they're looking at a recess, if you like, which will probably involve central bank digital currencies. now this is something that they would be planning to do over a period of time because no central bank can introduce a digital currency without massive app testing and all the rest of it. so that is not something that will happen very quickly. but do note that the bank of its national settlements is coordinating all the research on central bank digital current space for the ho central banking system. so you can see that the 2 things appear to be tied together. and i think that's what is evolving is a potential escape route from commercial banking, providing expand the expansion the bank credit for business in a general sense to central banks getting more involved in it. so we could find that if everything goes to plan, which of course, it is another issue that over the next 5 to 10 years, this social evolution as of current commercia

but do note that the bank of its national sacraments is coordinating all the research on central bank digital current space for the ho central banking system. so you can see that the 2 things appear to be tied together. and i think that's what is evolving is a potential escape route from commercial banking, providing the expansion bank credit for business in the general sense to central banks getting more involved in it. so we could find that if everything goes to plan, which of course, it is another issue that over the next 5 to 10 years, this social evolution as of current commercial banking as being central, if you'd like to a fed monetary system that is probably going to come, we're going to see that's coming to an to see where i think that roughly is the sort of game plan does. some of the major central banks have. so in other words, you know, they've been making all the credit available to bank spent. banks have not been lending right money velocity is collapsed, so your central banks are the bank of international. so i'm sorry, the, the b i s simply saying that calling time on

it's kind of like the central bank as the central bank of central banks. so basil 3, as you point out, we usually talk about gold and silver, but this suggest is more of the global banking system as it relates to derivatives, which as it relates to leverage, right? so a simple way to say this is that they are trying to reduce the leverage in the system by eliminating the number of derivatives in the system. and many, many of these derivatives have as a reference price point, other derivatives, right? so there stacked on top of each other and they create this layer of derivatives. and as you point out, the total number of derivatives and the global market is many times the global g, d, p. and the question is, you know, what good does all that do? i know in the u. k, i believe this would also fall into the category of re i papa cation. right? so this is rehab propagation. so you are essentially lending something more than once. my question, my 1st question is that in the united states, re high publication is limited to something like 104 percent of the value

to provide a huge bell out to the wall street banks and banks around the world as a way to keep this ponzi scheme going. so it looks like the timing is now that christine, the garret is course used to be at the m, f, c over d, c, b. so she will be a willing participate in this all. and continuation of the global policies game. the numbers are humongous, but for all the multi trillions of dollars worth of money printing in the quad jillions of dollars worth of derivatives. remember the big coin ashtray runs in the quintillions, so it's running bigger numbers. the humongous numbers of bitcoin are, are, you know, $5060.00 quintillion calculations per 2nd. that's the magic of it. that's the beauty of it. that no matter how much they can print, the hash ray will always be well ahead. and that's going to be a permanent fixture going forward until all the money is vaporized and goes to 0. like it all does, that are law happened globally once. and then the ensuing, phoenix of hard money lotus flower will bloom into our collective unconscious. and we'll see the face of god as i predicting bef

so once again, the bond is bank and they are paying central bank under christine. the guard are acting completely irresponsibly now, going off the gold standard was a solution to american debt and trade and balances. doing so extended a life of the dollar by another 50 years. that's what we're living in now. but now central bank returning to c. b, c's, central bank, digital currencies is the c, b, d, c, state solution, some kind of bland, a state solution to all the debt accumulated in all those 50 years. is that going to work, mark? i think it's just reaching another level of basically the basing. the, the central banking currency, so it's just using new technologies to, to perhaps more efficiently inflate the system. and that's exactly as i said, what the system needs. basically all these measures which the central bank is taking a measures which perpetuates which you need to prepare to the system. so i think they using this technology to try to create the system for a few years longer and it may work for a few years longer. but we'll see, i think this, this deca

it's like, well, the banks -- the bank of england, ecb, the responsibilities-- the bank of england couldn't be clearer. >> somebody from canada wrote a question asking, how do we operationalize your recommendations and deeper values in our economic decision making? you've made the point that when the society decides to do something, then the market is a good way or a way to make it happen. but the predicate is that society has to decide that the values are important enough and i think that the question he's asking is, how do we make sure that policy makers in the society do that? >> yeah, so, i mean, so, i mean, that's part of the reason why the book is so long. it actually goes through, you know, if you go chapter 16 which goes to country policy, but it's in the leadership chapter, other aspects, is this is-- these are examples of how you do it, so, let me just give three quick ones, so it's not all about standards and objectives. so one of the values that's important for market functioning is some sense of responsibility of senior managers, who run financial solutions not just for themsel

i will have an account with a bank of the bank will essentially a digital account with the fed? >> exactly. just as it does today what will be interesting is it won't just be the banks that have those accounts. by the way, i'm more confident this is what will happen in the uk and other places. it could be the instagram wallet. it could be a fintech companies wallet, some other consumer facing and ended up that account up top as well so that the settlement is just across the account. there's a settlement risk, just across the account of the public financial seditions at in this case the bank of england. >> and the advantage of that is competition? >> it's sufficiency, it's competition, it is as i understand it at a not the one doing the program but it is also potentially programmable. programmable for smart contracts and other applications which are potentially very attractive, so contingent contracts in effect potentially very exciting to add efficient to the system although like much of this area it's pretty nascent. >> and will we see a currency less society in a decade or two

it could drive up inflation. despite central banks claiming to be independent, some like bank of england been accused of funding government deficits. by the end of 2021, the bank will own $875000000000.00 pounds of government bonds of 40 percent of national debt. now for all that, that central banks own and for printing, currency earn money. the bank of england handed almost $700000000.00 to the government each year. as nothing compared to the bank of japan, though it made a profit of $11000000000.00 on its holding of government debt and stocks. it owns 45 percent of the government's 13 trillion that mountain. the federal reserve cent, $88500000000.00 in profits to the us treasury in 2020 the feds balance sheets which includes government that doubled since 2019 to $8.00 trillion dollars. switzerland central bank made more than $47000000000.00 in the 1st 6 months of the year. a soaring u. s. equity prices pushed its reserves to more than one trillion swiss francs. while those oversize profits are all due to the unconventional practice central banks of adopted since the financial crisis. s

bigger bank for your bucks. you will get six figures or more. >> reporter: those scammers set up fraudulent sites that can look identical to the real one. a cyber security firm he hired found it was a fraudulent site that behaves just like the genuine site. the people mary called her are the crooks themselves with a fake caller id. >> reporter: the criminals really perfected this overtime. it is a business. >> reporter: he didn't think he would lose a quarter of a million dollars. but, he says the bank later told him it was not responsible. >> i said so -- >> reporter: you are saying i am on my own? >> he said unfortunately, yes. >> reporter: key bank would not comment on marium's case. it is identified and helped to take down approximately 150 of those fake sites. the bank says it takes steps to alert clients so they can avoid becoming a victim of fraud and works directly with clients to recover any losses they can't. marian and brown says in their case, the bank's security protocol really failed. >> i feel lik

because when bank lending is limited to the bank's own balance sheet, the bank will first make loans to the safest and usually richest borrowers and when it runs out of lendable funds or when it reaches borrowers whose market rate of interest exceeds the legal rate, it will stop lending. madden did not reduce the price of credit to those borrowers. it reduced the availability of credit to people who needed it most. criticism of madden again is not a partisan issue. president obama's solicitor general advised the supreme court that the madden court of appeals "erred in holding that state usury laws may validly prohibit a national bank's assignee from assigning -- valid under the law of the state in which the national bank is located." again, that is the obama administration solicitor general speaking. having said all this, the true lender rule does not alter states' authority to set their own banks or nonbank lenders or to define what true lender means for state banks, nor does it alter state authorities to license, regulate and enforce laws applicable to nonbank lenders and financial

banking system? we need to listen and learn. i want to think our witnesses for being here today. for sharing their time and educating us. thank you madam chair. >> now, senator brown you for an opening statement. >> thank you. thank you for being part of this hearing. thank you for making this subcommittee as active as it has become. i'm glad our subcommittee convened to explore how essential banks digital currency can maintain our country's leadership in the global economy. that is the whole point. other countries around the world are taking steps to establish central bank digital currencies. we agree the united states must not be left behind. we need to lead the way. there are million's of working families who know it is expensive to be poor. late fees, overdraft fees, all kinds of promises about how cryptocurrency would offer alternatives to the current banking systems. the approaches offered by crypto companies are not solutions. it is another volatile, risky asset for wall street speculation. it

and that isn't the result of central banks through the through the b. i s that issues golds 12, so central banks of the vanishing to hold the gold prize down in the paper market. and as we know, my paper gold has nothing to do with physical gold. and at some point, the real price of gold will be reflected when, when the central bank lose control of that paper market, which is probably several $100.00 times bigger than, than the physical market. yeah, i've heard those numbers before they but they bear repeating their stuff and model . so gold relative to the money print thing is as cheap today as it was in $71.00 to $35.00 an ounce. and as cheap as it was in the year, 2290 dollars, about $1800.00 an ounce. that's out. it's the cheap nose levels relative to the amount of money printing that's gone on. and you mentioned that there hasn't been any real price discovery in gold now for really 151620 years due to the mash nations of these bankers because they like to support the money. it appears as though price discovery won't happen, but we're going to have

morgan and the member banks. goldman sachs and all the other banks. there's so the, the issue that we have here with digital currency controlled by central banks is, which is what they want to do when they're trying to get rid of the $100.00 bill or the 500 dollar year. i know they don't want notes, the government wants the ability to have central planning so that if you're not a good apparant check, they can shut off your bank accounts. cut off your privileges, puts you in a mask and not let you do anything ever again. so will they announce that while the dollars declined since 1913 when the fed started about 98 percent. so it's only got 2 percent of its value left reserve currency historically going back to the beginning of time. only last about 100 years were at about $100.00 a little over a 100 years in the us dollar before that. as many people know who watch your program. sterling, the british currency, great british pounds, were the reserve currency before the dollar for over 300 years, which was an anomaly in history. now what we're seeing now

thank you to the federal reserve, european central bank, a bank. and in the back of england, by money printing, and they tell you that inflation is transitory. it's not, it's here to stay. inflation and inflation is around 20 percent. are lying about the numbers and they're just changing. the preference is and the basket from which they disingenuously. calculate their basis for inflation to historically the inflation numbers going back to paul volcker days when we saw inflation like we're saying today he jack rates up to 1415 percent. but the rates than the us are under 2 percent. and so how is that possible and what is, will we see rate? so i only go up match, i think is an exhaustion is the vent will cause this interest rates to rise. but that's when the us is going to have to default on that. because when you, when they won't be able to, when interest rates rise, there's so much debt u. s. o 's. now, now that it will be impossible mathematically for them to repay. because the interest even a small amount, if it gets about 2 percent or 3 percent,

you can be a bank and the bank, you will have to complete that commercial. you should be, even the plainfield, on the regulatory front, the company was going to destroy the banking sector. and but the concern is if you over regular crypto to do the banking sector, the unfair advantage of a b compound and be having like the regulations. you basically are you seeing corruption, the system because that means the radios of bearing the banks and trying to protect them, and that's not a might be what we're beginning to see vinny. what do you call it regulation, but you're beginning to see more people comment in the us side about concerns about what's going on in the crypto currency world. there's also been interesting in how you tax it. so as part of the infrastructure bill that is, that has just passed, at least in the united states senate, but we're waiting to see what happens in the us house of representatives. the payment scheme for that structure in part depends upon, you know, taxing brokers which could mean minor is under the current piece of legislation th

central bank. so spend trillions of dollars buying out bonds in a process called quantitative easing. but trying to make sure the financial system and economy was completely collapse due to the pandemic. it's borne out of the experience and lessons learned from the north atlantic financial crisis of 2008. well now central banks acknowledge they getting close to the point of having to withdraw emergency funding. the last time they attempted to do that, markets went through what came to be known as a taper tantrum that was back in 2013. many critics said vest is become hooked on cheap money and most of that i've gone into inflating stock markets in house prices. well, that process also increases inequality of right now there are concerns that a central banks don't withdraw funding. it could drive up inflation. despite central banks claiming to be independent, some like bank of england been accused of funding government deficits. by the end of 2021, the bank will own $875000000000.00 pounds of governm

going to lead the world and central banks? it's hard to say, i think the central banks perhaps have painted themselves in the corner. they are, seems to me just playing by the years, seeing what's gonna happen. and this is also from the policy of being behind that curve when it comes to inflation management. my fear is however, that perhaps being behind the curve isn't the best policy because once inflation expectations are hyphens, it's very hard to say change consumer behavior because consumers always adjust that for havior tends to be quite sticky for a long time. i'm glad you mentioned the fact that the fed chair is saying, hey, the inflation is transitory. do you agree with them? it seem transitory at 1st, especially with the supply chain disruptions because the seem to be short lived. but now when we see southeast asia and a lot of other asian countries such as china, down again, i think the disruptions good last a bit longer. and moreover, the more sticky inflation coming from the rentals is also a big, murky, especiall

and therefore they do what every central bank should do. it's been said in the last few years that central bank buying of gold has gone out. well, that's not quite true, it has from some countries. but if you look at the western countries, if you'd look at the as, or any european country or western europe income, which no, but he has bought gold to haven't bought gold for years. and they all liquidated their positions in the 90s, as we know. and to push the price of gold down from what he was at the peak in $8852.00 down to eventually to 50. so that was the countries like the u. k. and switzerland, more than all their positions. so central bags that they have a love hate relationship with gold. on the one hand, they have to hold it down there, hold about $34000.00 tons of gold and but on the other hand, they want to suppress the gold price because the gold price tells their people that there are mismanaging, they call me and so far they've done the pretty good job in holding the gold price . well below where it should be. i often show a gra

and then bring it back to central banking one thing we always caution with the bank of england is in our financial stability will is the stability of the graveyard. don't pile capital so high in the banks so that the liquidity is so high there is no lending. and then we take that seriously so the is to have the sustainability that is sustainable in all sense it is flatlining growth. >> can you and don some conclusions from your chapter in leadership what are the most important lesson is that you have learned in your time? >> i mentioned it earlier meant to be a central banker look at the glass half empty and with brexit my job was to think about what could go wrong care for it so that aspect of humility is a more positive aspect they had a lot of good fortune to end up in so then to the member that responsibility and to leave it better. and then it is increasingly understood and that you are catalyzing action and then for them to be fully engaged in how to solve the issue. is not just about just the inclusive process so they are part of making decisions and feel that they have been h

up there is no central bank or government bank off of there, but the bankers released also didn't. and they said that until the opening all the central bank will not open around in the not run our banking system. therefore we defense and we are watching seeing a central bank. we are not going to open our banking after the announcement of decided bond or government within $3.00 to $4.00 days or at the end of the 1st august, 1st or september. they will not need the government and we have some sort of thing. but they said that they were the 1st government after the top rated. you may be opening an operation off bank in uniform. was that the people are in but a big and hard problem there are they do not have who was for the problems in daily life. well, what else? what else to people? what, what, what else does the taliban need to do to gain the confidence of people there? because obviously if they, as we've been reporting the last couple of weeks, thousands of already left the country because they fear tyler bomb will. but for those left behind, what does the taliban need to do to? to

it is not just banks. there are rapidly evolving technology companies providing all types of services to consumers, including people of modest means. i don't think we need a state-sponsored bank interfering with the system. north to want a government like the fed to infringe on privacy. able to track personal information and monitor banking transactions. does anyone think the government would provide the high quality customer service that consumers want from a retail bank? the fed has absolutely no experience in that realm. others suggest that the u.s. needs to rate a central bank digital currency to compete with china. the fact that china may be creating a digital currency does not mean it is inevitable that the yuan will replace the dollar. there are a lot of reasons to believe china is digital currency one be terribly appealing. china has a state-controlled economy, a repressive government , capital controls that make it unattractive as a reserve currency. that's basic, china's motivation for wanting a

, other banks, and so on. so forth. so one is regulated the other reasons. one is standardized and the other isn't so forward. it's just not that one other word for over the counter market. these are deals that are negotiated between 2 parties and the not on the formal exchange. and so this is banned. let's, let's look at this 50th anniversary of the nixon shock. which happened on a sunday night, august 15th 1971, the end of bretton woods effectively. recently the m f called for a new bretton woods. alrighty. what, what's your expectation there? when you look at what the central banks are trying to do, you can see they can lost their way. they got themselves into a bit of a cold sack and they're wondering how to get out of it. what we have had is, you know, from the end of the bretton woods and particularly from the 198080 song which we have had banks moving from doing what they should be doing, which is lending money to businesses to expand their production and all. ready the rest of it, they've stopped doing

bank, but it's, well, it's still under still right now. i'm in sweet summer holiday and the baltic behind me as sweden, of course, has no cash at all. basically, you call in many shops, if they don't take cash, use cash. only credit card. sandra, bank, it's a sweetness even warned that you know, you must have some cash otherwise it was a crisis. you're not going to, you know, you're not going to be able to buy things. now. switzerland, still us, his cash. i'm still, there's a conservative country, so i don't, i think with my digital currency too. but it's going to take many years and it's not gonna be exclusive to normal money in my view. i'm gonna cut it off there by garage. thanks so much for being on ca. report. thank you back. it's good to see again. alrighty. was going to do this addition of kaiser report with may max kaiser and stacy herbert want to think, i guess you guys grier of gold, switzerland dot com, a gold vaulting service. until next time, by the me ah ah ah ah, i mentioned that i spent more than a month up in the last arct

in the bank accounts. good morning, a phrase that comes to mind, we will talk about risk, which is the world central banks and customers are all held hostage to delta. central bank policy has done a u-turn. the bank of about tina turner, paying amash to her in 1985. dani: bank of america gets a red card for that pun. i have had proud mary stuck in my head for the last 48 hours. there is no alternative. it's remarkable to see everyone walking toward equities but there will be lower returns for equities in the second half. so maybe don't load up on them. manus: that comes through when you look at the positioning. health is number one, tech is still the most crowded trade. growth is back at 27%, you are looking a real rewriting of risk. it cannot be said enough, the other thing that caught my eye was the language it came through. there's a split intern's of the find manager survey -- in terms of the survey. we will be playing those graphics through the morning. mr. powell acknowledge something very important.

yeah, i mean the, the banking for a 2nd. right. what is really banking? what is it? it's institutional custody. you're fine. so the bank there's, i'll hold your money for you and when you need to give it to someone, you can tell us or we'll make a payment for you, or we'll invest it for you. what can i come to inspect? she said, look, anyone can be done, bank, anyone can hold their currencies, whether it's stable quite a bit coin, you don't need to have a bad, you don't need, you can burn your own devices. so the idea that money can be centralized in the back in the banking system is, is kind of an ancient idea of the new ideas. ready that else is able to be down back. you know, i think we're very early stages of seeing the way this plays are in the same way that the internet where arrived there was like, this is going to kill the newspapers. it's going to kill. travel agents can kill these of industries and you know, we still have some federal agents today. we're still having newspapers exchange their shrunk in the industry chunk, the few of them. but it didn't happ

goldman sachs world, bank of canada, pure banks commons, hsbc, banking. those goes credits with u. b s subs medalist we operated in close to 40 different countries around the world, brazil for room panama, columbia, japan, taiwan, hong kong, obviously throughout europe the were making millions per month. offshore towns not paying taxes. i was living the dream work worried about anything, but in my particular instance, i had something dory, that all sorts of investors all over the world were very eager to put their money with them because he was generating very good returns. and that's what investors want. he turned out to be doing something else, which was he was misappropriating the investors money and the investors thought they were achieving these excellent returns. in reality, they were not. phillip baker and his partners were essentially making it up. they were like, ah, ah, the 2nd thing and in some way the more damaging issue is that as they sought to recruit additional investors, new investors, which were essential because they needed to paper over the lots of money that th

he began robbing banks. in fact, he joined the james gang, which we will get to later, and he helped on their first robbery. as well as frank and jesse james are still kind of known, authorities just suspected clements and didn't turn attention to the james brothers until long. at the election of 1876 he took a band of the former gangs and attacked the town of lexington, missouri, on election day. they managed to intimidate the town enough the republican party was defeated in the general election. when the missouri state militia came to find them, he faded into the hills. on december 13th of that year, for some reason clements decided it would be funny, a big joke to try to enlist his own men in the missouri state militia. he goes back into lexington and the head of the militia allowed him to come in because they didn't want to start out this fight in the city streets. signed up his men and he peacefully leaves, but he circles back and went to the city hotel where he is having a drink and the militia heard h

or the dallas bank or that bank, they're ready to taper what's happened to interest rates? they haven't moved at all. in this regard, i think that powell's been very successful. we'll see how it all comes out later. but if his initial idea was, hey, i'm going to let the markets give me the flexibility to do that, it's been an extraordinary run for him. >> that's a really, really good point. we were just talking about that on "fast money," divorcing the two successfully you can see the reaction in the various types of markets i also appreciate from both of you the thanksgiving analogies we have cold turkey, we have punch. >> and barben. we have bourbon. >> and bourbon there you go we're set. all set to go. richard, i want to give the last word to you on this whole idea that steve was talking about with regard to kind of the tone and the communication that powell had today what do you make of it >> well, look, he's a mild figure that's what you expect of a central banker someone who is serious and sticks to his knitting they have been consistent on this theme for a very long