Summary
The conversation explores the potential impact of central bank digital currencies (CBDCs) on the economy and the role of banks. The guest argues that CBDCs would lead to a dystopian scenario and a Soviet-style economy. He criticizes the current economic models used by central banks, stating that they do not consider banks or money. The guest explains that banks create money out of nothing and that governments do not create money but borrow it. He discusses the power dynamics in markets and the role of money. The conversation also touches on the role of central banks in creating inflation and the potential consequences of CBDCs. The conversation explores the dangers of central bank digital currencies (CBDCs) and the potential impact on the banking system and individual freedoms. It highlights the consolidation of banks and the central planners’ conflict of interest in regulating banks. The conversation also discusses the success of China’s economic growth through the creation of small banks and the importance of funding small and medium-sized enterprises. It emphasizes the need to prevent the introduction of CBDCs and the potential dystopian consequences of programmable digital currencies. The conversation concludes with a call to action to mobilize against CBDCs and safeguard financial and economic freedom.
Takeaways
• CBDCs could lead to a dystopian scenario and a Soviet-style economy
• Current economic models used by central banks do not consider banks or money
• Banks create money out of nothing, while governments borrow money
• Power dynamics in markets are influenced by the short side principle
• Central banks have the power to create inflation through their policies
• CBDCs could disrupt the role of banks and centralize power in the hands of central banks Central bank digital currencies (CBDCs) pose a threat to the banking system and individual freedoms.
• The consolidation of banks and the conflict of interest of central planners in regulating banks is a concern.
• China’s economic growth was achieved through the creation of small banks and funding small and medium-sized enterprises.
• Preventing the introduction of CBDCs is crucial to safeguard financial and economic freedom.
• CBDCs have the potential for dystopian consequences and should be opposed.
• Mobilizing against CBDCs and raising awareness is essential to protect financial and economic freedom.
Chapters
00:00 The Dystopian Scenario of CBDCs and a Soviet-Style Economy
07:46 Banks Create Money Out of Nothing, Governments Borrow Money
15:09 Central Banks’ Power to Create Inflation
39:35 Preventing the Introduction of CBDCs
48:04 Mobilizing Against CBDCs to Safeguard Financial Freedom
About the Author:
Professor Richard A. Werner, born in Germany in 1967, holds a First Class Honours B.Sc. in Economics from the London School of Economics and a doctorate in Economics from the University of Oxford. He has also studied at the University of Tokyo.
Richard is a Member of Linacre College, Oxford, and is a university professor in banking and finance. He is also a founding chair of Local First, a community interest company establishing not-for-profit community banks in the UK (including the Hampshire Community Bank). His recommended charity is the Association for Research on Banking and the Economy (www.arbe.org.uk).
You can follow him on X @scientificecon or his website https://professorwerner.org/