Richard Werner, Ph.D., created a monetary policy known as quantitative easing, which is intended to help banks get out of financial crises more rapidly and avoid long-term recession

In 2020, this policy was misused to intentionally create inflation

Werner’s London-based community interest company, Local First, provides communities with the know-how to set up local community banks

Creating lots of local community banks will decentralize finance, make communities more resilient and help us avoid the implementation of central bank digital currencies (CBDCs)

The intent behind CBDCs is complete control by central banks over populations. The central controllers will decide if, when and how you may spend your money, and can use this monetary control to enforce compliance with any and all global governance agendas

In the featured video, Ivor Cummins interviews professor Richard Werner, author of “Princes of the Yen — Japan’s Central Bankers and the Transformation of the Economy”1 on “The Fat Emperor Podcast.” Werner has a Ph.D., in economics from Oxford University. He was a visiting scholar with the bank of Japan back in the 1990s.

In 1995, he created a monetary policy known as quantitative easing, which is intended to help banks get out of financial crises more rapidly and avoid long-term recession.

More recently, Werner created a community interest company called Local First, which provides communities with the know-how to set up local community banks. In this interview, he breaks down how the world works from a central banking standpoint, how ordinary people are affected by these policies, what we can expect from central bank digital currencies (CBDCs) and more.

How Central Bankers Rule the World

In his book, “Princes of the Yen,” Werner describes how there’s a small group of insiders inside the central bank, running the whole show. While they direct the media’s attention to interest rates, that’s a bit of a decoy. They’re not focused on the price of money but rather the quantity of money, measured in terms of quantity of credit creation.

This tiny core group of insiders are selected in their early 30s when they join the Bank of Japan and told that they will become governor of the bank in 30 years’ time. These are referred to as the “princes.” They control the boom-and-bust cycles in Japan, through their control of the quantity of credit. 

Similar factions exist in other central banks as well, Werner says, and these central bankers are not accountable for their actions. They use this power to engineer events that serve their own purposes (typically connected to increasing their own power).

In 2003, Werner warned that the European Central Bank (ECB) was “a monster” that would create bank credit-driven asset bubbles and property bubbles, followed by banking crises and recessions, which is precisely what happened.

The Central Bank Plan to Monopolize Global Finance

Werner points out that while central banks are promoting CBDCs as digital currency, we’ve had digital currency for decades, so there’s nothing new about the digital aspect of this currency. Cash — paper banknotes and coins — are but a small part — about 3% in most countries — of the total money supply. The rest is digital.

Today, central banks are the only ones authorized to issue banknotes, but regular banks create 97% of the money through lending. They’re not allowed to issue paper notes. Instead, they issue deposit entries into your bank account, which is digital. So, Werner notes, you could say we’ve been using bank digital currency (BDC) for decades.

The difference between BDCs and CBDCs is the centralized aspect. So, what’s happening now is that central banks, which are the regulators of banks, are stepping in to directly compete with the banks they’re regulating. Werner likens it to the umpire joining the game. That obviously makes it an unfair game.

“It is a big danger,” Werner tells Cummins.2 “And you can see where this is going. If we allow central bank digital currencies, sooner or later they will drive out the private sector competition. They will drive out the banks.

And, of course, we also have this other problem … that whenever we get a banking crisis and a financial crisis, the regulators get more power because each time they argue, ‘Oh that now happened, it’s different from before and that’s because we still don’t have enough power. We need to have more powers’ …

This is a regulatory moral hazard. If the regulator gets rewarded for failure … you can be sure that we’ll have more crises, because they’ll be given more powers. Now they want to introduce CBDCs, and of course, the best time from their viewpoint is … another banking crisis, so that people want to move their money out of banks …

That’s the easiest way to introduce this, which means we have a massive incentive now for regulators, for central planners, to create another huge financial crisis so that they can then take over.

Of course, then that’s the end of it, because the banking system is not going to recover from this. Now, do we really want this, where essentially the number of banks goes down so much that there’s really only one bank left?

In their 23 years or so of existence, the ECB has killed around 5,000 banks in Europe already, and it wasn’t the big guys … Thousands of banks are gone in America too, and, of course, JP Morgan and the rest are hoovering them up so they’re just becoming big fat mega banks …

It seems the ECB is set up to be the … only bank they want left in Europe, and that’s going to happen if we allow CBDCs. So, we really have to step up now and say, ‘We don’t need this; we already have digital currencies, thank you very much.’”

Perceived Need for CBDCs Must be Fabricated

Indeed, the central bankers know they’re going to have to get creative, because CBDCs have “no convincing value proposition,” meaning there’s no perceived need for them.

So, they have the unenviable task of selling us on a solution for a problem we don’t have, while simultaneously trying to hide the fact that what they’re proposing is a digital slave system, where they will have full control over if, when and where you can spend the money you’ve earned.

As noted in the interview,3 this is also the reason why they haven’t fully rolled out CBCDs yet. They must create or fabricate the need first, and that will likely be a series of financial crises that damage trust in the banks.With CBDCs, the central bank will decide if, when and how you may spend your money, and can use this monetary control to enforce compliance with any and all global governance agendas.

There are also technical issues that need to be addressed. If the electricity gets shut off, you can still use cash. Not so with CBDCs. A network of technologies needs to work at the same time in order for CBDCs to function as intended. And, due to the centralization, the system is not only more complex but also far less resilient.

Lastly, there’s the issue of trust. According to a report cited in the interview, European citizens are leery and suspect governments and central banks want CBDCs to monitor, control and restrict transactions. And they’re exactly right. That’s what CBDCs are ultimately for, so the central planners need to figure out how to hide this intention, or somehow sell it as a good thing.

CBDCs Are a Population Control Mechanism

October 19, 2020, Agustin Carstens, general manager for the bank of international settlements (BIS) — the central bank of the central banks — explained the intent behind this new centrally-controlled digital currency:4

“Our analysis on CBDC, in particular for the general use, we tend to establish the equivalence with cash, and there is a huge difference there. For example, in cash we don’t know … who’s using a $100 bill today. We don’t know who is using the 1,000 peso bill today.

A key difference with the CBDC is that Central Bank will have absolute control on the rules and regulations that will determine the use of that expression of Central Bank liability. And also, we will have the technology to enforce that. Those … two issues are extremely important and that makes a huge difference with respect to what cash is.”

Indeed, as explained by Werner, the issuer of the CBDC, the central bank, will have the power to decide whether you can use your own money. You basically must apply for permission to use it for a given purchase, and that request can be denied.

“So, it’s a conditional currency, based on you actually getting that permit,” Werner says.5“Now, if you happen to be some kind of critic of government policy or a critic of central banks, this could be difficult. Or if you dare to step out of the 15-minute city zone, maybe you’ll find that it’s not working.

Of course … they’ll come up with excuses why you can’t do what you want to do. They’ll never tell you the real reason, but the official reason is likely to be something like your carbon footprint, which is another vague concept … For every bank transaction you get a carbon CO2 rating or a quantified number, and then, if you’ve used up your common budget, you can’t use it.

I mean, you can come up with any number of schemes. The point is, the issue of the CBDC is, the central bank has the power — and essentially it’s going to be arbitrary power — to say yes or no to what you want to do with what you thought is your money.”

What’s more, you can be sure there’ll be no one to complain to if your CBDCs get turned off by mistake or if a purchase attempt is denied and you want to appeal. Just look at how difficult it is to get a problem resolved with any of our social media companies.

The CBDC system will be vastly larger, more complex and more automated than any social media company on the planet. Most of it will be run by algorithms and artificial intelligence, without any human input at all. “There’s no real right to appeal,” Werner says. “That’s going to be the reality.”

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