The "Great Reset" Has Already Started

The "Great Reset" Has Already Started

SUBTITLE'S INFO:

Language: English

Type: Robot

Number of phrases: 919

Number of words: 4918

Number of symbols: 23069

DOWNLOAD SUBTITLES:

DOWNLOAD AUDIO AND VIDEO:

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

DOWNLOAD SUBTITLES: