Detailed Index – Professor Richard Werner’s Talk:
1 – Why is banking so important for the economy, society and the sustainable development of regions and communities?
2 – What causes the recurring boom-bust cycles and crises?
3 – What policies or banking systems have historically been most successful in avoiding these cycles and crises?
4 – What kind of banking system and banking policy do we need?
5 – While we are at it, can we solve the major problems of our time with this?
6 – What are the policies which are being pushed that we need to oppose?
4:40 – Banks create the Money
7:00 – Where is your Money Safe?
8:50 – Trade Secrets of Banking – Banks don’t lend Money, Banks don’t take Deposits!
10:40 – The bank doesn’t pay-out, it will just record its debt to you, which is called “a deposit” and we use it as Money.
12:45 – Credit Swiss & Barclays Bank – Create their own Capital
16:25 – Cash & QE
17:35 – The money supply is created and allocated by Banks
22:30 – Colwyn Report 1918 – nothing’s Changed!
22:40 – Bank Collusion
24:00 – Banking Market Concentration – The ‘Herfindahl-Hirschman Index’ – (H-HI)
26:30 – Number of financial institutions (Banks & Credit Unions) – Debate
27:00 – H-H Index for Germany
29:00 – The Creation of Boom-Bust Cycles
30:50 – Credit for GDP transactions – financial circulation credit (Asset Credit Creation)
36:10 – The East Asian Economic Miracle – Credit Guidance
40:30 – Abuse of Power by the Bank of Japan – A warning to All
47:10 – The German Banking System
51:20 – Hampshire Community Bank Project – Local First CIC
56:40 – Dangers of Centralise Money creation & allocation (Central Banks)
58:00 – The Alternative to bailing out the Banks. Ireland – what the Central Bank could have done
1:00:00 – Japanese Bank Restructuring 1945-47 and 1990s
1:06:00 – Iceland
1:06:50 – Activities of the ECB
1:07:00 – EU war on Community Banks
1:08:30 – Negative Interest Rate Policy of the ECB, favours speculators to the detriment of the economy
1:10:25 – War on Cash
1:11:45 – Lower Interest Rates do not stimulate the economy
1:14:00 – Quantity of money not the price of money that drives the Economy – Bank credit for GDP transactions drives the economy
1:15:45 – Current Central Bank War on Cash
1:19:30 – ‘Princes of the Yen’, Central Bank Truth Documentary on YouTube (247,000 views, Nov 2016) & Book plus other Publications.
Prof Werner’s Books on Amazon: https://www.amazon.com/Richard-Werner…
‘Princes of the Yen’: Central Bank Truth Documentary https://youtu.be/p5Ac7ap_MAY
1:20:00 – Irish Government – Stop the issuance of Government Bonds – 12% Vs 4%
Table of Contents
How to End the European Crisis – at no further cost and without the need for political changes by Richard A. Werner, D.Phil. (Oxon) Professor of International Banking
Executive Summary
There is a solution to the twin problem of large non-performing loans in the banking systems and the funding crisis for sovereign borrowers that is affecting especially Spain, Portugal, Ireland, Cyprus, Greece, but to some extent also Italy and other countries.
The needed policies constitute ‘true quantitative easing’: The author argued in 1994 and 1995 in Japan, introducing the expression ‘quantitative easing’, that there was no need for a recession due to the bad debt problems in the banking system. Necessary and sufficient condition for a recovery is an expansion in credit creation used for GDP transactions – the original definition of ‘quantitative easing’. The expression was later used by central banks to refer to the type of traditional monetarist policy (bank reserve expansion) that had been warned would be insufficient.
True quantitative easing can be achieved quickly and without extra costs in a two-part process as follows:
1. The central bank purchases all actual and likely non-performing assets from the banks at face value (book value) and transfers them to its balance sheet.
2. The government stops the issuance of government bonds. Instead, it funds any future borrowing requirement (including all scheduled ‘rollovers’ of bonds) by entering into loan contracts with the domestic banks, borrowing at the much lower prime rate.
Ideally, these two measures are combined, and part and parcel of a larger policy package. For a fuller list of measures, see our CBFSD Discussion Paper No. 1-12.1
But they can also be implemented separately, so if ECB and national central bank support cannot be gained for measure 1, national governments can end the negative vicious cycle and end their sovereign debt problems by going ahead on their own with part 2.
