Speaker 1: Seven oh five if you're a fifty five cars de
Speaker 1: Talk station. Brian Thomas swishing everyone a very happy Tuesday
Speaker 1: in an early Thanksgiving last day of the week for
Speaker 1: me as I move into vacation. But I am so
Speaker 1: pleased to be here today because from the Mesa's Institute,
Speaker 1: I'm pleased to welcome to the fifty five KRC Morning
Speaker 1: Show Thomas de Lorenzo. He is the president of the
Speaker 1: Mesas Institute, former professor of economics at Loyal University, Maryland,
Speaker 1: a longtime member of the Senior Faculty of the Mesas Institute,
Speaker 1: author of so many books I can't listen them in
Speaker 1: the time we have allocated for this discussion, but here
Speaker 1: to talk about the new documentary released by the Mesa's Institute,
Speaker 1: playing with Fire, Money, Banking and the Federal Reserve. Tom
Speaker 1: de Lorenzo, Welcome to the fifty five Carricity Morning Show.
Speaker 1: It's my distinct pleasure to welcome me to my program.
Speaker 2: Well, thank you very much, Brian, I'm pleased to be
Speaker 2: with you.
Speaker 1: Well, let us initially discuss okay, and I will admit
Speaker 1: upfront now I joke about this all the time, so
Speaker 1: my listeners know probably what's coming. This is where my
Speaker 1: you know, sixteen years of practicing law and my twenty
Speaker 1: years of being on radio almost and my MENSA membership
Speaker 1: mean absolutely nothing. I don't understand the Federal Reserve. I
Speaker 1: don't get it. I don't understand it. Now I have,
Speaker 1: you know, a high level understanding of the Austrian School
Speaker 1: of economics, which is what the Mesis Institute supports. I'm
Speaker 1: familiar with the Chicago School of economics, the Milton Friedman style,
Speaker 1: and I know the Keenesian economic theory is a bunch
Speaker 1: of nonsensical, ridiculous idiots. So that's about boiled down what
Speaker 1: I've got here. But thank you for this documentary so
Speaker 1: we all can understand what the FED is, where it
Speaker 1: came from, and why it's so dangerous. So let's begin
Speaker 1: with the Mesis Institute and just general principles of Australians
Speaker 1: are Austrian rather school of economics, the.
Speaker 2: Austrian school, because some of the founders of the ideas
Speaker 2: came to America from from Austria. Friedrich Hayak is probably
Speaker 2: the best.
Speaker 3: Known among Americans of that. And it's free.
Speaker 2: Market economics, international peace through history as things we focus on,
Speaker 2: and it's a research and educational institution, and we try
Speaker 2: to educate anyone and everyone, and it's not it's not
Speaker 2: a think tank. We don't preserve, we don't published papers
Speaker 2: for congressional staffers and things like that. That we're mostly
Speaker 2: research and educational institution and that's what we do. And
Speaker 2: the new documentary is aimed at helping people like yourself,
Speaker 2: like all Americans.
Speaker 3: It's not an accident that no one knows what the
Speaker 3: heck the FED does.
Speaker 2: When when Tucker Carlson interviewed Ron Paul a couple of
Speaker 2: months ago, Tucker said, you know when this came up
Speaker 2: when Ron was running for president, he said, I was
Speaker 2: getting paid to know about this stuff. That was where
Speaker 2: he was working on interpers for of Fox at the time.
Speaker 2: And he said, and even I knew nothing at all
Speaker 2: about the FED. And so that's the purpose of our
Speaker 2: documentary and any of your listeners can look at it,
Speaker 2: see it for free. It's thirty eight minutes on the
Speaker 2: mesas dot org slash fire. It's m I sees dot
Speaker 2: org slash fire, and it's at a very introductory level
Speaker 2: explaining what the FED is, and it makes the case
Speaker 2: for abolishing it. And it features Ron Paul and the
Speaker 2: famous Wall Street investor James Grant, and myself and a
Speaker 2: number of other people from the Mesa's Institute.
Speaker 1: Wonderful. My producer, Just Trekker will add that to my
Speaker 1: blog page mesas dot org and a link to the
Speaker 1: documentary so our listeners can easily find it, and I
Speaker 1: know they will thoroughly enjoy understanding it. Let us just
Speaker 1: talk generally speaking of this concept of running the printing press.
Speaker 1: I don't, I mean, I understand how they do it.
Speaker 1: It's basically flip a switch, you print out several trillion dollars,
Speaker 1: and the next thing you know, you've watered down the
Speaker 1: monetary supply. See inflationary reality. We have so many charts
Speaker 1: we can go to what's a dollar worth now compared
Speaker 1: to what it was worth in pick a year nineteen
Speaker 1: eighty nineteen thirty. You can see it's been watered down completely.
Speaker 1: That is the natural order of things. The more you
Speaker 1: print dollar wise, the less value each of them has.
Speaker 1: We're talking about a piece of paper, not something that
Speaker 1: has physical value. We simply rely on it as a
Speaker 1: means of easily exchanging, you know, easily buying and selling
Speaker 1: goods and services. But it's meaningless as a thing.
Speaker 2: Yeah, it's only based on the promises of politicians.
Speaker 3: But it wasn't always that way. Our money used to
Speaker 3: be attached.
Speaker 2: To gold and that ended, but it was ended by
Speaker 2: Nixon in the nearly seventies where you could redeem dollars
Speaker 2: for gold, and then they just said, sorry, no more,
Speaker 2: you can't do that. And that's why we had the
Speaker 2: economic complosion of the seventies, stagflation. We were no longer
Speaker 2: there was no longer any restraints on the ability to
Speaker 2: to counterfeit money. And you know, conservatives have been complaining
Speaker 2: for decades about overspending. Overspending. The Fed is the key
Speaker 2: to the whole thing. There was a law passed in
Speaker 2: the thirties that gave the FED the right to just
Speaker 2: counterfeit money, legally counterfeit money, then use that money to
Speaker 2: buy government bonds as a way of infusing money into
Speaker 2: the banking system, and that's what creates all the inflation.
Speaker 2: And that law can be ended tomorrow.
Speaker 3: The Congress could we send that lot tomorrow. It doesn't
Speaker 3: have to.
Speaker 2: Abolish the FED. It could just do that one step
Speaker 2: and that would that would keep the Fed from escalating
Speaker 2: the money supply, and we should be seeing deflation now
Speaker 2: with all the technological advance that we have, especially with
Speaker 2: artificial intelligence and all that, but we don't because we
Speaker 2: the FED puts so much money in circulation, and it
Speaker 2: primarily benefits the banking industry, the Wall Street speculators, the
Speaker 2: people who get their hands on this money first that
Speaker 2: once it's printed by the FED, and then the average
Speaker 2: American just suffers through the never ending wooman bus cycles
Speaker 2: and the great recessions and price inflation. And the dollar
Speaker 2: is worth about two cents now compared to what it
Speaker 2: was in nineteen thirteen when the FED was created.
Speaker 1: What would the world or our country, let's focus on obviously,
Speaker 1: the United States is our currency. What would the country
Speaker 1: look like if that had never happened, if they stuck
Speaker 1: to a gold standard, if your cash was redeemable for
Speaker 1: physical gold.
Speaker 2: Oh, we would have far less inflation, for sure, and
Speaker 2: we would have far less bloom and bus cycles.
Speaker 3: You know.
Speaker 2: The Great Recession of eight followed the recession a bust
Speaker 2: in the stock market in the year two thousand.
Speaker 3: Every decade we have one of these busts.
Speaker 2: And they're all caused by the FED. And that we
Speaker 2: would have far fewer than that. There's a lot of
Speaker 2: research in the field of economics now that shows that
Speaker 2: our economy is much more unstable after the FED was
Speaker 2: created than it was before the FED was created. We've
Speaker 2: never had a perfect world. Nothing on earth is perfect,
Speaker 2: but the FED has made things much worse and not better.
Speaker 2: Has in controlled inflation, as in controlled unemployment, any.
Speaker 3: Better than otherwise would have been.
Speaker 2: And we used to have competing currencies and so, and
Speaker 2: we're starting to go that way, you know, with all
Speaker 2: the bitcoin and other cryptocurrencies, we're starting to go in
Speaker 2: a direction of competition. And some states are making it
Speaker 2: much easier to use gold and silver also as currency,
Speaker 2: or at least backing a currency. So I think in
Speaker 2: the future we're going to have to move in that
Speaker 2: direction even more than we are now.
Speaker 1: But wouldn't I mean, if we just stuck to a
Speaker 1: gold standard, then wouldn't they basically the size and scope
Speaker 1: and expectations that people have of what we can get
Speaker 1: from the federal government. Wouldn't it be dramatically reduced. Wouldn't
Speaker 1: the government be extraordinarily smaller than it is now?
Speaker 3: Well?
Speaker 2: Sure, that's why you know, the Constitution gives the federal government.
Speaker 2: The ability to coin current money, coling money doesn't give
Speaker 2: it the ability to print money, print paper money at all,
Speaker 2: and so they knew what they were doing, and so yeah,
Speaker 2: we would the government. The constitution is pretty much a
Speaker 2: dead letter because of the FED. The government can do
Speaker 2: anything at once and print up the money and pay
Speaker 2: for it, and it creates what economists call a fiscal illusion.
Speaker 2: You know, if the government said, okay, we're going to
Speaker 2: send another one hundred billion dollars to Ukraine, and so
Speaker 2: we're going to impose attacks of ten thousand dollars to
Speaker 2: every working family to pay for it, you see a
Speaker 2: far fewer Ukrainian flag bumper states.
Speaker 1: I love that one small sliver of the unbelievable, you know,
Speaker 1: the outlay from government. But you hit the nail on
Speaker 1: the head right there. We would have to be asked
Speaker 1: to dive and dig into our own pockets to find
Speaker 1: any given situation. I suppose that's a lot like the
Speaker 1: war war bonds back in World War Two. To a
Speaker 1: certain degree.
Speaker 3: Yeah, it is.
Speaker 2: And it's you know, we're approaching the holiday season now
Speaker 2: and so government has one big Santa Claus, you know,
Speaker 2: something for nothing, you know, Uncle Sam is really Uncle Santa,
Speaker 2: and you know, he prints up money and just spends
Speaker 2: wildly to make the politicians themselves popular, and they all
Speaker 2: play Santa Claus, you know, four hundred and thirty five
Speaker 2: Santa Clauses in Congress, basically, but it.
Speaker 1: Never seems to stop. Under the current circumstances, what do
Speaker 1: you perceive to be the future here in the United States? Obviously,
Speaker 1: the printing press is running the morning we print the
Speaker 1: bigger our credit card debt. That's way most people kind
Speaker 1: of view it, paying debt service to our creditors. It
Speaker 1: keeps getting bigger. A larger and larger share of the
Speaker 1: government money is being paid to service this massive debt
Speaker 1: that's not going to last. It can't. It's going to
Speaker 1: collapse on itself. I mean, that's the way I perceive it.
Speaker 3: That's right, that's right.
Speaker 2: You know, we have such a strong economy and so
Speaker 2: many work hard working people and so much capital investment
Speaker 2: that's saving us for the time being from being Venezuela.
Speaker 2: And we're not going to turn into Venezuela tomorrow as
Speaker 2: far as that goes. But we can do tremendously better.
Speaker 2: Even what President Trump is talking about in eliminating the
Speaker 2: brags that he eliminated four regulations for every new one,
Speaker 2: and I think in his new term there should be
Speaker 2: no new ones and eliminate maybe one hundred a day
Speaker 2: of government regulations because most of them, the vast majority,
Speaker 2: serve no purpose other purpose other than justifying the loser
Speaker 2: jobs of government bureaucrats. And that would just free up
Speaker 2: a tremendous amount of entrepreneurship and investment and work in America,
Speaker 2: just that apart from the FED. And of course a
Speaker 2: move in the direction of more honest money will be inevitable.
Speaker 2: I think you'll see different states saying that you can
Speaker 2: use this currency, that currency more, pay your taxes with
Speaker 2: bitcoin or whatever cryptocurrency comes down the pike in the future.
Speaker 1: Now, in terms of oh, shoot, I lost my train
Speaker 1: of thought, Tom, I apologized. That does happen from time
Speaker 1: to time. I'm just so baffled by this. Oh I
Speaker 1: recall now I've heard Ron Paul and I maybe even
Speaker 1: Ran his son mentioned this before. I come from a
Speaker 1: lot of people the idea of auditing the FAT. It
Speaker 1: has a certain appeal and ring to it because it
Speaker 1: exists as the standalone body with so much control and
Speaker 1: power over our lives. Is that a meaningful act? Will
Speaker 1: that result in something other than perhaps enlightening more people
Speaker 1: about what you are outlining in this playing with fire
Speaker 1: money banking in the Federal Reserve.
Speaker 2: Well, well, you know it's meaningful because every time someone
Speaker 2: like Ron Paul proposed it in Congress, the entire banking
Speaker 2: industry would circle the wagons and send millions to Congress
Speaker 2: to bribe the the members of Congress to kill it immediately.
Speaker 2: They don't want people to know what's going on, and
Speaker 2: every once in a while we get a glimpse of it.
Speaker 2: There was a General Accounting Office audit about twenty five
Speaker 2: years ago of a FED a certain sort of a
Speaker 2: wasn't a full blown on it, but it was piecemeal
Speaker 2: and they found such things as you know. They had
Speaker 2: fleets of corporate jets, huge art collections that the head janitor,
Speaker 2: this is, this is almost thirty years ago. The head
Speaker 2: janitor was making one hundred and sixty three thousand a
Speaker 2: year plus benefits. Jeez, And that's if it's in the
Speaker 2: public interest. If what's there and they're doing is in
Speaker 2: the public interest, why can't the public take a look
Speaker 2: at how they're spending all this money.
Speaker 1: Amen, you get no argument from me. Thomas De Lorenzo,
Speaker 1: President of the Mesa's Institute. You'll find Playing with Fire,
Speaker 1: money Banking and the Federal Reserve linked on my blog
Speaker 1: page fifty five caresy dot com, or go directly to
Speaker 1: MESIS dot org, m i SES dot org and if
Speaker 1: you want to hit that directly. It's been a real
Speaker 1: pleasure having you on the program, Sir. I truly appreciate
Speaker 1: the work that you're doing on the light that you're
Speaker 1: shedding on this profound problem we face.
Speaker 2: Well, thank you very much, Brian and I have a
Speaker 2: great day, and you.
Speaker 1: Have a great day too, and a wonderful Thanksgiving. Tom,
Speaker 1: take care of yourself seven eighteen Right now, fifty five
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