SUBTITLES:
Subtitles generated by robot
00:10
today
the great reset has already started
hello again it's martin north from
digital finance analytics welcome latest
post covering finance and proper news
with a distinctively australian flavor
today i'm joined by lisa barwick from
the citizens party hi there
hi martin great to have you on the show
and we've got a really really
important topic to discuss today because
i tell you i reckon there are more
youtube shows up there at the moment
about the great reset and every pundit's
00:56
got his view or her view about what's
going on
and what i want to try and do is strip
away some of the sort of hype
and try and understand what's really
going on
we're going to demystify it a little bit
for people today
and what we're going to present is
a sequence of events that indicate that
the
great reset has started and is in fact
well underway
but it's not necessarily what you think
there's a
an effort to change the very nature of
01:27
banking
and in particular to prevent the kinds
of banking facilities that would allow
us to rebuild and nations to rebuild our
economy
so we're going to go through that step
by step
yeah and i think it's also worth saying
that this really questions
fundamentals like democracy and who
makes decisions and
who's accountable and how do those large
international organizations
intersect with local decision-making and
local politics
01:56
and who holds who accountable
yes exactly and we have to get people
involved in politics to change these
legislations these decisions and that
can be done
well we showed with the cash ban it can
be done if we get uh
enough um you know reaction and a
response but the first thing to do is to
try and understand a little bit about
the trajectory so
why don't we start with the global
financial crisis and in fact
a bit before that because what we saw
02:27
was the development
of i guess ever more powerful central
banks so
you know people who are not elected
people who represent
we're not quite sure so the federal
reserve of course is owned by
banks um other central banks are at a
lesser or greater extent owned by
the governments who sort of put them up
there but the central banks
under the bank for international
settlements get together and
talk a lot about how to control the
financial system
exactly and i mean just to start with
02:59
the global financial crisis 2008 is
probably a useful start point because
a series of shifts began really at that
point
because under crisis circumstances the
u.s federal
federal reserve entered into what
former wall street banker and author
naomi prince
described as an unprecedented collusion
where they coordinated a quantitative
easing program
um that was unheard of in history to
and it was she described at naomi prinz
03:29
as a the most massive transfer
of power to unelected bankers where they
were able to
funnel money into the biggest of banks
through the bailout programs and then
later the bail-in program which you've
talked about
many times on your show martin was
introduced which was supposed to reduce
that too big to fail concentration of
banks
but which in reality and in practice in
many examples that have occurred
04:00
throughout europe
has ended up concentrating banks more
because a lot of those
uh bail-ins have had to be accompanied
by bailouts and in most of the cases
that i've researched
those banks that were bailed out and
bailed in ended up being swallowed
up by larger banks in any case
so and that even siphoned more money
into the system because
of governments paying out on deposit
guarantee schemes
that went into those bigger financial
04:31
structures and many people not seeing
their money back from those deposit
guarantee schemes
uh for up to five years um
so there's been a variety of ways and
the other thing about the bail-in that
i'd mention
is it gave the bank for international
settlements
unprecedented oversight of
national regulatory capabilities
and we saw that here where apra was told
what to do with its bail in legislation
which was passed in february 2018
05:03
uh and even though that was passed a
year later the international monetary
fund came in and said
well we're not satisfied with how you've
done it we want the
bailing of deposits to be explicitly
called for and applicable and they also
specified
that we should end the treasurer's
ability to direct apra and end
parliament's oversight and their ability
to
disallow apra actions
so yeah you're talking about this
05:34
completely uh
unaccountable faction of banks
from the bis to central banks and other
parties
that are dictating policy and that you
know since 2008 really
became extreme right and the key note
here is
financial stability is what they're
talking about
in other words what they're doing is
protecting the financial system so all
that liquidity
that was created was pumped into the
financial system to support
stock markets and you know banks share
prices and all of those things the bond
06:05
markets
this is nothing to do with the real
economy exactly
something which is becoming very obvious
is that
um with the concentration of banks
into the two big fail banks smaller
banks
um commercial banks community banks
public banks
postal banks they're all disappearing
and as you've mentioned things like
negative interest rates
um which i think is getting into our
next point have uh
06:36
really affected the capability of small
banks to exist
absolutely yeah so what's one of the
things if you look at europe for example
where they've taken
rates into negative territory um massive
quantitative easing
what that is doing is putting pressure
on
the financial margins of particularly
smaller banks compared with larger ones
and we're seeing all around the world
now smaller banks disappearing getting
gobbled up
um even some fintechs being you know
gobble up too
so this is a concentration of power in a
07:07
smaller
number of larger often international
financial organizations
that really are operating above national
borders and above um you know
local supervision because they're part
of this global
superstructure that's been built
connected to the bank for international
settlements supported by central banks
and the central banks as they
issue more or more liquidity through
quantitative easing continues to drive
rates lower
they are manipulating the yield curve by
07:38
essentially buying at particular points
along the yield curve to set the price
and that is driving the price of money
down and
that process which has rolled on for at
least a decade now and continues to roll
in a more accelerated
way now no one has been able to figure
out
how to get out of that so this is a
one-way process where
rates go lower and lower and lower into
negative territory
and where effectively on the back of
trying to support the financial system
the real economy gets taken to the
08:08
cleaners
exactly um and further to that
um there's now a debate about whether we
need
commercial banks in existence at all so
when you're talking about
lending into the real economy um
that would just become a joke if
commercial banks don't exist but
one of the things that we saw at the
beginning of last year coming into march
as the with the covert crisis striking
the united states
is that they initiated relief programs
08:39
where the treasury created a certain
amount of
credit made it available to the federal
reserve the federal loans reserve
started these lending programs
to go into various
purchases and so forth i mean and they
even did things like purchasing
um uh corporate bonds and so forth so
the fed took
on a bond portfolio which
you know is even has dubious legality to
it
but there were certain um funds that
were supposed to go to so-called main
09:11
street
lending and it didn't happen and so you
have this direction
of credit again completely getting
funneled in
to financial speculation
rather than the real economy um
now the other factor about of course
commercial banking is
uh if a central bank digital currency
comes into
effect the
philadelphia federal reserve has
speculated that
09:43
commercial banks would be obsolete
because part of the plan that the
federal reserve has outlined
is that any stimulus program like they
did through
the covered crisis each individual
person would have a
fed bank account personal fed bank
account so this is kind of like personal
qe if you like
um or helicopter money and where that
money goes straight into your account
and of course in any kind of crisis as
they spell out in their in their
document
10:16
deposits people would be much feel much
safer to have their deposits in the
central bank
than in a commercial bank so having
attracted
um deposits away from commercial banks
commercial banks would essentially go
out of existence and there's been some
people
um like one article i was reading i
think it was in the um
the financial times or the economist
which was saying you know that's not
necessarily a bad thing
to have no commercial banks anymore so
you this concentration of
10:46
power that we're discussing is just
there's no end to it it's phenomenal
well and of course the question there is
if um central banks are pulling those
levers
without essentially much political
oversight
and i would argue that politicians are
deliberately turning their back and
looking the other way and
we're seeing whistling the tune and
saying there's nothing to do with me
it's the central bank's fault right
what that basically means is that there
are people making these sorts of
decisions and laying out these plans
without any um you know tick
11:17
from anybody who's been elected let
alone
um an ordinary voters you know who are
not aware of what this is all looking
like
right so we are seeing this happening in
a way which is
one quite sneaky and too deliberately
obfuscated i believe that
a lot of the stuff that's going on is
deliberately being
uh played through in a way that is not
transparent
and i don't think the um the truth is
out there
you know frankly i think it's
deliberately being obfuscated simply
11:48
because
if people really woke up to what this
means then there
would be an outcry yeah and a lot of
elements are there to be found if you go
looking
elements of the truth but it's a matter
of people looking in the first place
and secondly being able to put those
elements together
to actually see top down what's being
constructed here
and i know for my own part just
following financial and economic
goings on over the last two to three
years
12:17
um it's only been step by step when you
see
one event then another and you begin to
put the picture together and you think
wow ah this is not looking good
um so now the
other thing i wanted to talk about from
what you just raised
is um a real shift point which struck
myself and obviously a lot of people was
the
jackson hole summit of central bankers
that took place in august 2019
uh because well number one that was
12:49
where mark carney gave his speech
calling for a central bank
digital currency to replace the us
dollar
and he talked about a new financial
architecture so this is part of that
whole
architecture of what the great reset
really represents in financial terms
but the other thing was that prior to
that meeting
blackrock which is the world's largest
asset management fund and has
several former central bankers on its
board
drafted a paper in which they talked
13:21
about
um something which has been dubbed since
dubbed
uh monetary regime change
and this is where he said the
unaccountability really comes in and
where politicians are absolving
themselves as a responsibility because
we're conducting this transfer of power
where in effect we would be giving
central banks which are independent
which function completely independently
of elected governments
and other financial powers because some
of the
13:51
uh for instance fed programs that i
mentioned through
the covert bailout uh were conducted by
blackrock blackrock was given
the job without tender who actually run
some of these
bond funds and so forth that would buy
up corporate bonds and whatnot
um so you've got this combination of
central banks
and hedge funds asset management big
banks that are working together
uh and what the monetary regime change
14:21
was about was to give
these powers these private powers a
greater
oversight and decision making on fiscal
policy so
on where the government is spending its
money
and so you would have this element of um
private control
over far more than just monetary policy
but taking it that next step
and how they described it was um uh
philip hildebrand the vice chair of
blackrock said
we're going to see a regime change in
14:54
monetary policy that's as
big a deal as the one we saw between
pre-crisis
and post-crisis which was the
introduction of quantitative easing we
talked about
and one element of this he said an
important one will be a blurring
of fiscal and monetary activities and
responsibilities
so that's another big aspect of this um
where those private powers are going for
as much as they can to take the car
about
what should be decisions made by elected
15:24
officials
yeah and i'll just add to that because
of course there's also another revolving
door
if you think of janet yellend who used
to
run the fed she's now effectively in the
treasury department in the u.s
we've got uh the head of the um ecb
who used to be at the imf and uh mario
draghi
who used to be the ecb is now um in
italian politics
right i know so you can start to see how
um
the structure of the political and
15:55
financial dimensions are actually being
fused together like this
exactly um and if i can i might
uh just quote a couple of other people
on this monetary regime change because
i think it really uh stresses the point
of what's
afoot here um after jackson hold the
president of the saint louis fed james
bullard
said to the financial times that a
financial regime shift
is in pro in process which he said means
that cherished
notions of central banking are being
16:26
rethought
and there were a few other things after
that but after the
march 2020 covert interventions there
was a host of people
reflecting on this because they started
to put
two and two together so on the 15th of
april 2020 in the washington post and
bloomberg there was an article
mnuchin's partnership with powell blurs
lines between fed and the treasury
saying that central bank has been
granted a bigger role in u.s
fiscal policy you had scott minard the
chairman of guggenheim investments and
16:58
member of federal reserve bank of new
york's
investment advisory committee on the
11th of june 2020 saying they have
essentially told the world that there is
now a backstop on corporate debt
we have now socialized credit risk and
we have forever changed the nature of
how
our our economy functions uh
matt tayeby he had an article on the
13th of may 2020 about this too
but i wanted to cite what he said in
september 2018
talking about the 2008 bailout fiasco he
17:28
described it as a bank
state merger which converted wall street
into a vehicle for annually
privatizing a big chunk of america's gdp
into the hands of a few executives
then you had on the 30th of april 2020
economist
columnist economic columnist for the
washington post steve perlstein who said
the fed has assumed the role as a
financial backstop and
lender of last resort to every major
corporation
it's no longer just banks that are too
17:58
big to fail it's now the entire
corporate sector so this is with these
corporate bond
buy-ups and then finally jim bianco
bianco research todd bloomberg on the
27th of march 2020
this scheme essentially merges the fed
and treasury
into one organization now i mean this is
something that um
we've written about in our publications
of the citizens party
that essentially is the definition of
fascism
18:29
um when in 1938 when
franklin delano roosevelt was trying to
deconstruct the cartelization and the
control that it existed through the war
years
he said the first truth is that the
liberty of a democracy is not safe if
the people tolerate the growth of
private power to a point where it
becomes stronger than the democratic
state itself
that in its essence is fascism ownership
of government by an
individual by a group or by any other
controlling private power
so and mussolini himself who was the
19:01
first
to bring corporate entities
into the process of government said that
fascism should more appropriately
be called corporatism because it is a
merger of state and corporate power
so what we're seeing with this fed
treasury um
cooperation on fiscal policy
uh and on you know control
of bailouts and regulation top down
is essentially that kind of
concentration of power
19:32
and merger of power where the private
um sector can dictate absolutely it is
pretty scary when you actually lay out
like that isn't it
and there's a couple of consequences the
first is that effectively
you know free markets and and capitalism
has gone out the window
because now everything is being
supported nothing can fail
right so what that basically means is
that uh you know the idea that capital
flows to the more productive solutions
has gone um basically everything is
20:03
being supported just by
being supported by central banks the
second point which is worth thinking
about is that
banks are less and less able to make
money from the normal things they
actually
uh make money from like lending and
deposits
so they're getting more and more
involved in speculation which is one of
the reasons why the derivative sector is
going through the roof
and if you look at the multiple um you
know
to the underlying that derivatives now
represent it's a really
scary issue in terms of when that and if
20:34
that goes wrong
and the third point is that none of this
none of this stuff that that we're
talking about here is hitting the real
economy
so it's no real surprise that the real
economy is not performing
that uh you know unemployment is higher
wages growth is non-existent
and there's a huge inequality being
created so there's a small proportion of
people who are benefiting from this
those who are benefiting from the growth
in the financial markets but the rest of
society
both here in other countries is just
21:04
being squeezed and squeezed and squeezed
so
you can see the social consequences of
these policies being playing out
yeah absolutely and one of the big
factors in that
which comes into this concentration of
the banks
that we've been talking about is the uh
repeal of glass-steagall legislation in
1999 which
prevented deposit-taking banks from
engaging in speculation as you said
um banks have been more and more driven
21:35
with the negative rates with everything
with the whole situation globally into
speculation
um of course prior to 1999 when glass
digger was repealed they couldn't do
that
but from 1999 um every bank had the
opportunity to gamble so it's just too
tempting for them to do that
uh and over five or around about five
thousand banks disappeared after 1999
just as that
process of that fallout took place so we
have to begin to
22:05
re-implement the types of actual
regulation
which will ensure that credit can be
directed
back into the real economy and
also why you see such a freak out here
in australia
over um the christine holgate watchers
affair it's not
the cert what you see on the surface is
not the real issue um
you know these financial big financial
players
are horrified about the prospect of
public banks or postal banks
22:37
being created because it's a means of
people to put their deposit somewhere
which is safe
kept hived away from any bailinable
capacity
um government protected and so forth but
it's also a capacity as we've seen in
the case
uh in japan with the japan post bank
where those
deposits can then be invested
um through treasury and government
functions into
uh investment or infrastructure banks
that can actually be put towards
um the real economy yes and that is
23:08
really the point we know that there is a
valid role for banks
to help society grow and develop you
know we saw it after the
after the second world war and so that
there is a there is a path to
create real value for real people right
but you've also got
that flying in the face of what we're
actually seeing which is
preservation of financial stability the
inflationary
um forces that are basically making the
central banks expand and expand and
expand their control
23:38
and i just want to come back the other
thing that you touch on this digital
currency it becomes a critical
cornerstone of
their success in other words if you
allow people to hold money outside the
financial system and you know and in
cash
then they can't take the rates to where
they want them they can't actually
control and dictate but as soon as
digital currencies become
the only way to transact then
effectively that's the last piece of the
puzzle
which is why i for one i'm very
24:08
concerned about
all of the trajectory talking about
central bank digital currencies and and
how they might play out
because you've got to see it in this
broader context you know this isn't just
a convenience thing this isn't just
well it's easier than notes you know
it's about control it's about monitoring
and i'd highlight that in some countries
around the world you know things like
social scores and
where you can spend your money is
already in train
so this is also another means of control
so one reason why we should be very
cautious
24:38
of the whole concept of of digital
currencies becoming the norm
yeah and um interestingly after that
jackson hole summit where mark carney
raised that um which was august 2019
by the end of that year carney made a
statement in an imf
paper that he wrote just straight out
saying look a new financial system is
under construction
um and i wanted to add another element
of that um
which raises perhaps more questions than
answers uh
25:09
but if you think back to the
september 2019 repo crisis uh
you know that that all froze up and yet
at the same time there were
big bankers that were saying they had
money it wasn't that they didn't have
money but they stopped lending to hedge
funds and so forth
the whole thing was thrown into such
disarray that
it became the impetus for other changes
which aren't
um set in stone yet but some of the
proposals included
jp morgan in october 2019 in a client
note
25:41
proposing a permanent lending facility
where the big banks would no longer
have to provide that liquidity in the
overnight
lending and repo markets but where the
fed would do all of that
and that's also another thing that's
dubious legally for the fed to do
uh and then in um january 2020
there was a proposal that was discussed
in the wall street journal on the 14th
of january where the fed was discussing
the ability for
that they could directly lend to hedge
26:12
funds
um so usually hedge funds have to get
that overnight liquidity
um where they've got margin calls and so
forth from
that repo machinery that plumbing
architecture
but the fed would you know bypass that
so and then it's something that also
comes up with the whole gamestop thing
because
you know there's the theory that it was
the people versus the hedge funds but
then there's also the theory
because of the amounts of money and
volume of trading involved
that maybe it was a falling out amongst
26:43
thieves of big investment banks versus
hedge funds
and we know hedge funds at the end of
2019 as this repo crisis was going on
was seeing an unprecedented a number of
withdrawals a number of them were
shutting down the bank for international
settlements had come out and said
hedge funds you know could really be the
linchpin of a new
oncoming crash so there's a whole series
of question marks
around what's going on there and of
course
in march 2020
during the covert crisis there was a
much bigger repo
27:15
bailout many many more volume of
injections
and think i think a magnitude larger
actually than what had occurred
in uh september 2019 and they started
doing
um morning offerings afternoon offerings
they started adding all kind of
different term lengths
um two weeks four weeks you know so
there was
a huge amount that went on so we've got
i mean i think the very biggest question
here is
our financial system as it stands today
globally
27:46
is completely bankrupt completely white
handed out
and we really have to create a new
you know fair and just financial
architecture not with the great reset
version
but something based around putting it
back in the hands
of the people and allowing governments
to use a financial infrastructure
to get the job done and rebuilding
economies that are
on the brink of collapse absolutely and
that's really
the critical point we are at an
inflection point here right
28:17
where effectively i think if we allow
central banks to continue to play the
cars that they've got
uh we'll end up with the sort of
nightmare future we've been
articulating but there is an opportunity
here if we sort of grab back control and
say no no no hang on
there's another agenda which is actually
way more important which is
you know the reconstruction of the real
economy and building real jobs
and essentially getting stuff back
inside
democratic control all of those things
right but that of course
28:47
requires both political and
economic will right and my concern is
that many people within
uh shall i call in the mainstream of
thinking at the moment seem to be just
uh
dancing along with the central banks and
saying there's nothing to see here right
whereas we know that this is a critical
point
at which decisions need to be taken and
need to be taken differently
to be able to secure our future yeah
and i'd add to that um that leaving
things like the great reset in the realm
of something mystical there's this
29:19
all-powerful
group somewhere behind the scenes that's
pulling all the strings and we can't do
anything about it
well that's just simply not true you
know the
these are all institutions whether it be
mark carney through his roles in the
bank of england the bank for
international settlements whether it be
the world economic forum these are all
individuals they have
their point of view and they have their
distinct
idea of what they want to do and they do
have a lot of money and they influence
governments
but equally the population which are
larger in number than they are
29:50
have a voice as well and making that
voice heard as you pointed out at the
beginning
of the discussion with the cash ban for
instance we saw that if you can put the
pressure on politicians
they can be swayed yeah they can be
swayed by the big boys too
but they can equally be swayed by the
people if the people begin to get
engaged
absolutely and i think that's the key
message really from from this this
conversation which is that
you know the great reset hasn't yet
finalized right
there's a lot of work in progress here
but we've also got a chance to steer it
30:20
and take it somewhere much more
more advantageous for ordinary
australians and ordinary people around
the world
but only if we actively engage with the
issues
and actively engage with the trajectory
of head and i guess that we may we'll
be having some further chats in the
future about
things particularly that people can do
to be able to help steer the
conversation but
the purpose of this show today was to
try and outline
what's really going on right and to
30:52
paint on one hand
a bit of a nightmarish outcome but also
make the point that it's not
set in concrete it's not certain and
there is still an opportunity to steer
it into a different direction
if we are smart enough to grab the
opportunity
yep for sure really appreciate your time
today thank you very much
and i'm sure we'll chat again uh down
the track
31:15
thanks martin thanks bye
you
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