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The Monetary Creation Stakes

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Hello, I am glad to see so many of you.

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I have been working for 6 years on[br]2 unusual but fundamental subjects

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that are discussed nowhere in the[br]media, though.

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I came to that step by step.

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Like many of us I was politically[br]inactive before 2005

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and I woke up to this during the[br]debates about

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the european union constitution.

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Reading this text I got scared because[br]this text was incompatible

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with our national constitution and it[br]was clearly made to overcome it.

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I knew that this treaty was a bad[br]constitution because

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it left people helpless against abuses[br]of power.

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I saw it and denounced it.

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I was lucky to be heard.

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This kind of luck changes a man because

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my point spread widely and quickly[br]on internet.

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People started to discuss and[br]criticize it,

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I spent nights to answer them,

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I had to sharpen my arguments and

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all this helped me to greatly improve[br]on the subject.

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Finally...

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I am trying to summarize briefly what[br]brought me to this in 2005.

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After 2 months I got nearly 800,000[br]visits on my website,

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about 40,000 a day during the[br]last month.

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It is quite something for a[br]normal person.

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I had never been in politics before and

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My audience was never larger than a[br]classroom before that.

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People sent me like 400 emails a day,[br]some enthusiastic, some moving.

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But I got some incisive emails too,

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calling me a fraud or an idiot,

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some very nasty emails.

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I spent nights to answer them first[br]but there were too many.

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Therefore I started to answer people[br]on my web site.

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I answered to these people[br]once for all because

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everybody told me almost[br]the same thing.

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So I published my answers to these[br]emails on my web site.

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And you pay a particular attention[br]to your answers when you know

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that you will be read by 40,000 people[br]during the next 24 hours,

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some of them seeking the first[br]slightest mistake.

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It urges you on to read much,[br]to sharpen your arguments,

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you seek help from any clever[br]source around you.

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Therefore, in my first text, I begged[br]for people's participation.

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It was incredible for me to have[br]an opinion

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that differed so much compared to[br]what I heard on the radio.

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I wrote:[br]"please, tell me where I am wrong.

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I must be wrong, I am no match for[br]leading experts

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like Giscard d'Estaing or Delors[br]that built European Union.

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In my text I wrote:[br]"I might be wrong somewhere.

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So please just tell me and I will[br]correct my mistakes.

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But as far as I know,[br]this is my current position".

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And...

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it worked. People helped me and[br]the final text is still

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available on internet, it is called[br]"Une Mauvaise Constitution".

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And it is still very relevant since[br]this very constitution

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was finally adopted.[br]You know that this so called

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"new" constitution is a simple[br]compilation of the older treaty.

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The original treaty was[br]simply differently rewritten.

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With minor changes, but basically[br]the same rules applied.

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You know that the constitution[br]voted in 2008 by the parliament

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was rejected by referendum[br]in the first place.

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This is for me an authentic treason,[br]a Coup d'Etat.

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This is deeply legal for having been[br]voted by the parliament

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but this is exactly what I call an[br]abuse of power.

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This is precisely what I want[br]to discuss today.

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This is the heart of my work,[br]what I am working hard for.

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I...

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I seek efficient solutions against[br]abuses of power.

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any case of abuses of power:[br]abuses from socialists,

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abuses from capitalists,[br]abuses from people...

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I intend to organize the society in a[br]way that abuses are not possible.

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And in general, abuses of power[br]are done by rich people.

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Not exclusively, people also[br]might commit abuses.

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For example a popular gathering[br]might become

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a furious mob and might commit[br]injustices and abuses.

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But it is most frequently done[br]by rich people.

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We will see when and how.

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So I want to resist abuses of power.

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For that I intend to identify the[br]cause of the causes of abuses.

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I mean that problems have[br]more than one source

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and

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I observe that people I argue with,[br]politicians from any party...

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usually consider a unique aspect of[br]power abuse, and fight it separately.

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For example, one will take care of[br]and only of ecology.

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He will focus on that, he will spend[br]all his energy on that

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and he will drop other topics

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He will not try to discover why ecology[br]is no political concern,

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why people who might want to fight for[br]ecology have no political power

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and how comes that people who destroy[br]environment have political power...

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both political and economical power.

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Usually no one tries to understand[br]that but when I seek for

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the origin that enables the ecological[br]destruction of the planet

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I find a political cause...

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and an economical cause.

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I observe that large scale destructions[br]are done by rich people

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who rule politically by means of[br]election.

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Ecology is just an example, there are[br]many topics like that.

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For example, feminism...[br]Currently, left people are focused on

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fighting for feminism,[br]fighting against racism

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and have many similar positions[br]I may agree with.

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But all this is not the main problem[br]for me.

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The multiplicity of social strugles[br]is dividing us...

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because people fight consequences[br]instead of fighting causes.

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As if...

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As if we had water-flood.

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There is a faucet fully turned on,[br]and there is a water-flood.

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Everyone is mopping up and no one is[br]considering turning off the faucet

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As another example, imagine our social[br]activity flowing like a river.

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This river is extremely polluted by a[br]pink foam representing unemployment.

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On one side of the river, people are[br]fighting against unemployment.

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But these people never try to[br]investigate upstream,

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never far enough to discover the[br]source of the problem.

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And on the other side, people with[br]another concern are doing their best

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to repair ecologic damages, to urge[br]people to respect the environment,

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but once again, without looking for[br]the original problem.

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I am interested in all these topics and

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when I try to identify the[br]deepest cause of all these problems,

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I always get the same answer.[br]We always find...

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rich people...

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with power...

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because they bought election.

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They paid for the winner's campaign.

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You always have manufacturers and[br]bankers, namely rich people.

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We will see that banks arose[br]out of storekeepers.

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So basically banks and manufacturers[br]are alike,

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it is the wealth accumulation that[br]enables political corruption.

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So...

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My works are focused on 2 big topics:

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the monetary creation, this will be[br]the first part of my talk.

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This is a wide topic and I could spend[br]a whole day on that

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so I will try to be as synthetic[br]as possible.

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I may come back to that later and go[br]into the subject in greater depth

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during a discussion, according to[br]your wishes.

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In the second part of my talk, we will[br]discuss the joined political aspect:

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I think that we won't take money control[br]back from bankers without sortition.

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For me, election is the problem. It is[br]desperately considered as a sacred cow.

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I can understand that[br]multinational company

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support the election principle.[br]And they do it.

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But there is something strange about[br]left humanist people

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who yearn for a peaceful society[br]where arms dealers do not decide.

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Oddly enough, they defend the election[br]that enables rich people to buy power.

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This will be the second topic[br]of my talk.

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I will show you the[br]athenian democracy.

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It is a great system that[br]raises objections.

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I have been working for a[br]long time on that system

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so I am able to refute all[br]these objections so far.

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But maybe you will ask me[br]new questions.

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This is exactly what I expect[br]from this meeting:

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new objections that I have not[br]considered so far.

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First, let's talk about money.

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Well...

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We are currently facing many[br]social problems.

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Society is under pressure[br]because of difficulties

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which seem mainly caused by[br]unemployment.

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In our economy where few are[br]self sufficient...

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we need money to trade[br]between each other.

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In a world where money is rare

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and people who create it[br]do not create enough,

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we have to work to earn it,

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so we strongly depend on jobs,

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i.e. work that is willingly[br]given by an employer.

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And...

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When we consider unemployment,[br]there is something strange about it.

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Jobs enable people to work[br]in exchange for payment.

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We do not lack workers,[br]we have plenty of them.

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And we do not lack things to do, we[br]have plenty of useful things to do.

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For example, we need to isolate[br]buildings with

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triple glazing to heat them[br]with less energy.

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We need to build housing for everyone.

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Well, I won't tell more,[br]there is plenty of

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things to do for us all to live[br]with dignity.

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So there are people who are[br]ready to work

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and many things to do.[br]We simply lack money.

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And...

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And... is it complicated to[br]create money ?

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No. It is not.[br]So why are we lacking money ?

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This is exactly my point:

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understand why we lack money and[br]discover the origin of that.

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What is money ? Who creates it ?[br]Is it hard to create ?

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What are theories around that ?

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I will be quick on that, but it is[br]useful to know

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the theory accepted by present[br]economists.

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And also to know alternative[br]theories found in

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human history.[br]Some are very interesting.

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And also monetary experiments,[br]also very interesting.

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I do not know all of them but...

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I will tell what I have discovered[br]so far and

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you may also share your knowledge[br]with me.

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Because the number of money experiments[br]is amazing and fascinating.

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So,

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how is money created today ?

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I brought many books you may refer to.

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I will often mention them in my talk.

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About history of money...

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When you learn about money,[br]how old it is,

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which form it took...[br]you discover a fascinating story.

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With a book dealing with history of[br]money you will go through

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human history and you will better[br]understand the world today.

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Because the way money became[br]a privilege for few people,

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has a great impact on the way[br]we live in peace and prosper.

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This is decisive for peace.[br]In other words,

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wars are mainly caused by bankers.

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So it is crucial to understand this.

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I have a huge amount of books[br]dealing with money creation.

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I selected the best of them for you.

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There is a first great man, Galbraith,

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he is dead, he has a son still living,

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He wrote[br]"Money: Whence It Came, Where It Went",

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it is full of british humor,[br]it is very nice to read.

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He described greeds, cheatings,[br]dirty tricks, plots...

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Galbraith has a great credibility,[br]he worked with important people.

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He was a great economist together[br]with a journalist and a humanist.

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He took a stand for people against[br]oligarchy, bureaucracy and injustice.

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And his book...[br][Which period ?]

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Mid and late 20th century,[br]he died a few years ago.

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And his son seems to be like him,[br]a good man too.

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In this book, the definition of[br]money is great.

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I put a mark on that...

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I want to read it, it is very short.

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He warns us...

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There is something funny about that...

0:18:45.770,0:18:52.209
He explains that money is made[br]complicated on purpose,

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to confuse us like doctors[br]a long time ago, like lawyers...

0:18:58.650,0:19:05.089
They maintain a technical jargon[br]to keep underlings apart.

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"The reader should proceed in these[br]pages in the knowledge

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that money is nothing more and[br]nothing less than what he or she

0:19:14.270,0:19:18.859
always thought it was - what is[br]commonly offered or received

0:19:18.860,0:19:23.449
for the purchase or sale of goods,[br]services or other things"

0:19:23.450,0:19:26.799
Anything else is useless confusion.

0:19:26.800,0:19:30.449
Indeed, when we address money creation

0:19:30.450,0:19:34.099
and how this was stolen to the people,

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we will see that it is not complicated.

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There is a second book that I like,[br]also very nice to read:

0:19:47.385,0:19:52.919
"La pensée monétaire de l'âge classique[br]à nos jours" by Christian Tutin

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"Tutin", T-U-T-I-N,

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He quoted the best parts of[br]contemporary experts on money:

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from Locke to Hayek including[br]Law, Cantillon, Hume, Thornton,

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Ricardo, Marx, Fisher and of course[br]Keynes and Friedman.

0:20:20.850,0:20:24.449
But it is not hard to read[br]because it is the

0:20:24.450,0:20:28.049
best about money written[br]by the best authors.

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It is actually a fierce[br]debate between

0:20:31.590,0:20:35.129
those people to determine[br]what money is.

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So a good book to understand[br]the stakes.

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I won't do history of money,[br]I will tell you what it is now.

0:20:49.880,0:20:53.869
Today we have two kinds of money.

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First, there is the money we use,

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this money is mostly created[br]by private banks.

0:21:03.420,0:21:06.756
And there is money created[br]by the state.

0:21:06.757,0:21:10.092
A small part of it is paper money,

0:21:10.093,0:21:13.429
the other part is exchanged[br]between banks.

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So there are two kind of money.

0:21:16.120,0:21:20.159
The money exchanged between banks[br]is not our concern.

0:21:20.160,0:21:24.199
You will never see it,[br]it is just for banks.

0:21:24.200,0:21:28.909
And there is the money that[br]we exchange between us.

0:21:28.910,0:21:33.619
It is hardly created by the state,[br]it is mostly created by private banks.

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How and when is it done ?[br]Let us take an example

0:21:38.210,0:21:42.799
to see how money appears[br]and then disappears.

0:21:42.800,0:21:48.724
Let's say, you need $100,000[br]for your house.

0:21:48.725,0:21:54.649
You go to the bank and say:[br]"please loan me $100,000".

0:21:54.650,0:21:58.874
The banker does not have[br]this amount of money,

0:21:58.875,0:22:03.099
however if you are reliable[br]he says "no problem".

0:22:03.100,0:22:08.099
If you are not reliable,[br]there is a chance that you

0:22:08.100,0:22:13.099
do not pay off your debt[br]and it will become the banker's

0:22:13.100,0:22:18.099
responsability to pay it back.[br]So he pays attention to it.

0:22:18.100,0:22:25.949
I should stand up for that.[br]The banker has a balance sheet.

0:22:25.950,0:22:29.759
I had a drawing for that.

0:22:29.760,0:22:33.049
There are assets and liabilities.

0:22:33.050,0:22:39.999
I am a bank, assets are what I am owed[br]and liabilities are what I owe.

0:22:40.000,0:22:48.399
Liabilities are what I owe,[br]so you want $100,000, here they are.

0:22:48.400,0:22:52.499
This is on my account,[br]I owe you $100,000.

0:22:52.500,0:22:56.219
There is still something wrong,[br]it is not balanced yet.

0:22:56.220,0:23:02.099
I have to write the same amount[br]on both sides of the balance sheet.

0:23:02.100,0:23:06.049
For now it is not balanced,[br]but what I wrote here

0:23:06.050,0:23:09.999
as liabilities, as debt of my bank,[br]is new money.

0:23:10.000,0:23:12.239
I shall explain how it[br]circulates after that.

0:23:12.240,0:23:17.219
And the credit operation is not[br]completed yet. The banker says:

0:23:17.220,0:23:22.199
"I owe you $100,000" and in the[br]same time: "you owe me $100,000".

0:23:22.200,0:23:26.194
On the other side, as assets[br]he writes $100,000.

0:23:26.195,0:23:30.189
He says: "now you owe me $100,000".

0:23:30.190,0:23:35.569
When a bank gives someone credit,[br]two debts are created.

0:23:35.570,0:23:40.949
Bank and borrower together[br]create two debts.

0:23:40.950,0:23:47.379
The debt of the bank is paid now, and[br]the debt of the borrower is paid later.

0:23:47.380,0:23:50.999
Difference lies in term.

0:23:51.000,0:23:53.249
[3 debts are created][br]What is the 3rd ?

0:23:53.250,0:23:58.329
[interests][br]Interests... indeed...

0:23:58.330,0:24:03.409
but interests are taken[br]from existing money.

0:24:03.410,0:24:08.264
The money is only created[br]from the amount that

0:24:08.265,0:24:13.119
people borrow and that is[br]granted from banks.

0:24:13.120,0:24:17.999
Then, you pay off your debt with[br]interests. For now I leave that apart.

0:24:19.500,0:24:24.289
There is $100,000 on both side of the[br]balance sheet and then people pay back.

0:24:24.290,0:24:29.079
$10,000 back, $10,000 back, money is[br]progressively destroyed on both sides.

0:24:29.080,0:24:32.999
And at the end, money disappears.

0:24:37.470,0:24:42.702
Money disappears. If everybody paid his[br]debts, there would be no money left.

0:24:42.703,0:24:46.699
Almost nothing,[br]just banknotes and coins.

0:24:46.700,0:24:52.349
[money as debt][br]Money as debt, indeed.

0:24:52.350,0:24:58.082
Any money that circulates through[br]bank accounts is called

0:24:58.083,0:25:03.814
"demand deposit". It appears and[br]disappears just as I said.

0:25:03.815,0:25:09.999
Money appears together with debts,

0:25:10.000,0:25:15.969
and disappears together with[br]repayments.

0:25:15.970,0:25:20.749
More than 90% of the money today[br]was created like that.

0:25:25.610,0:25:28.819
So... how comes...

0:25:28.820,0:25:32.814
I should also tell[br]how it circulates.

0:25:32.815,0:25:38.249
The person has this amount of money[br]on his bank account.

0:25:38.250,0:25:44.949
With that he will pay his suppliers[br]and his workers.

0:25:44.950,0:25:51.649
A part of this money will leave his[br]account for another in a bank B.

0:25:51.650,0:25:57.024
And it works the same way with assets[br]and liabilities, so let's say

0:25:57.025,0:26:02.399
$10,000 have gone, there are $90,000[br]left and $10,000 arrive here.

0:26:02.400,0:26:05.409
And money just go.

0:26:05.410,0:26:10.916
It is just a new entry on the[br]"liabilities" column of a balance sheet.

0:26:10.917,0:26:16.422
Money is created as liabilities[br]and circulates through liabilities

0:26:16.423,0:26:21.929
of banks with the help of checks,[br]credit cards, transfers...

0:26:21.930,0:26:27.764
If you take an overview of the bank[br]system, you see that money consists

0:26:27.765,0:26:33.599
of liabilities of all banks and[br]circulates thanks to checks, etc...

0:26:34.700,0:26:36.499
Yes ?[br][It is like a unique bank]

0:26:36.500,0:26:42.774
Exactly ! They create money together,[br]they lend to different people.

0:26:42.775,0:26:49.049
For example, I am J.P. Morgan, I hold[br]10% of the stock market,

0:26:49.050,0:26:54.649
it means that I am in charge of 10%[br]of the people's money,

0:26:54.650,0:27:01.529
and each time it lends 100, 90 go[br]elsewhere and 10 remain for me.

0:27:01.530,0:27:06.724
In the same time, the other banks[br]lend money too and

0:27:06.725,0:27:11.919
10% of these loans eventually[br]come into my accounts.

0:27:11.920,0:27:17.699
So if all the banks together[br]create $1,000 during a day,

0:27:17.700,0:27:23.479
$100 are for me, whatever[br]the source of the loan is.

0:27:23.480,0:27:29.579
Each bank has to lend in proportion of[br]the market share of its deposits.

0:27:29.580,0:27:34.952
If a bank lends more than the[br]others in proportion,

0:27:34.953,0:27:40.326
money will go to other banks[br]and it will have to

0:27:40.327,0:27:45.699
raise capital, that is it[br]will have to pay...

0:27:45.700,0:27:49.919
I think that it is useless to go[br]deeper into the detail.

0:27:49.920,0:27:56.059
We will come back to that when[br]we talk about objections.

0:27:56.060,0:28:01.947
Bankers pretend that it is a[br]strong restriction to

0:28:01.948,0:28:07.836
money creation that banks[br]are in competition like that.

0:28:07.837,0:28:13.724
But if they lend money at the same[br]pace, there is nothing to compensate.

0:28:13.725,0:28:18.622
The money supply consists of[br]the sum of all

0:28:18.623,0:28:23.519
credits that have not[br]been paid off yet.

0:28:23.520,0:28:31.419
It is like a bathtub that fills up with[br]a faucet that represents new loans.

0:28:31.420,0:28:37.489
So any new credit contributes to[br]fill the tub of money supply.

0:28:37.490,0:28:42.129
And repayments are like the[br]plughole from which water

0:28:42.130,0:28:46.769
flows out regularly according to[br]the schedule of repayments.

0:28:46.770,0:28:52.999
So the amount of money supply fills[br]and empties like a bathtub...

0:28:55.210,0:29:00.594
...but it fills in a way[br]that has nothing to do

0:29:00.595,0:29:05.979
with our needs.[br]Actually we need money to trade.

0:29:08.340,0:29:17.284
Image is a bit old but it is like blood[br]in the body that enables to trade.

0:29:17.285,0:29:21.917
Blood circulates in our body,[br]it takes particles

0:29:21.918,0:29:26.549
somewhere and bring them somewhere else.

0:29:26.550,0:29:29.989
Too much blood is bad,[br]to little is bad as well.

0:29:29.990,0:29:33.007
It is important to have[br]the right amount of blood

0:29:33.008,0:29:36.024
as it is important to have[br]the right amount of money.

0:29:36.025,0:29:41.337
In optimistic periods,[br]when we trust in the future,

0:29:41.338,0:29:46.649
we, humans tend to borrow much.

0:29:46.650,0:29:55.889
In the same time,[br]bankers tend to lend much.

0:29:55.890,0:30:01.804
This leads to the creation of[br]much money. money supply inflates

0:30:01.805,0:30:07.719
and it leads people to take[br]more and more risks than they should.

0:30:07.720,0:30:13.692
I am simplifying. On the contrary,[br]and this is what I worry about,

0:30:13.693,0:30:19.666
there is the reversed situation.[br]People's mood switches from

0:30:19.667,0:30:25.639
optimism to pessimism,[br]like during the real estate crisis.

0:30:25.640,0:30:33.269
And the market is under the "sheep"[br]effect, all agents behave the same way.

0:30:33.270,0:30:38.272
When everything is fine,[br]the market is optimistic,

0:30:38.273,0:30:43.276
and when it starts to turn, the actors[br]start to depress all together,

0:30:43.277,0:30:48.279
they stop borrowing,[br]bank stop lending...

0:30:48.280,0:30:51.489
whereas people keep on paying off.[br]The bathtub keeps on

0:30:51.490,0:30:54.699
emptying according to the schedule[br]of repayments while

0:30:54.700,0:30:57.909
it stops filling and thus you have[br]less and less money...

0:30:57.910,0:31:01.349
and more unemployment.

0:31:01.350,0:31:08.214
The strict connection between[br]money and unemployment is hard to draw

0:31:08.215,0:31:15.079
but this argument has been held[br]by many theorists for a long time.

0:31:15.080,0:31:17.619
And...

0:31:17.620,0:31:21.399
the most famous is Keynes.

0:31:21.400,0:31:30.439
I think it is not stupid to correlate[br]the amount of money with unemployment.

0:31:30.440,0:31:36.334
I am led to think so[br]because of some

0:31:36.335,0:31:42.229
experiments with alternative form[br]of currency.

0:31:43.360,0:31:50.364
In many cases of alternative currency[br]in history, I observe that...

0:31:50.365,0:31:54.616
First of all,[br]you need a serious crisis to create

0:31:54.617,0:31:58.867
a new currency:[br]when unemployment rate is very high,

0:31:58.868,0:32:03.119
when craftsmen and storekeeper[br]can not work...

0:32:03.120,0:32:08.442
In such situations districts take[br]locally control of the money

0:32:08.443,0:32:13.764
and start to pay civil servants[br]with money they create themselves.

0:32:13.765,0:32:21.219
Money is something highly conventional.[br]You just need trust to make it work.

0:32:21.220,0:32:24.639
And in any experiment I know,[br]it takes only a

0:32:24.640,0:32:28.059
couple of weeks to make[br]unemployment disappear.

0:32:28.060,0:32:31.999
Activity starts again when[br]you bring money to it.

0:32:33.390,0:32:38.049
I mean that there is a relation[br]between unemployment and

0:32:38.050,0:32:42.709
the introduction of new money when[br]there is not enough.

0:32:42.710,0:32:46.622
But you have to pay attention[br]not to create too much money,

0:32:46.623,0:32:50.536
else its value might collapse[br]and then you might face

0:32:50.537,0:32:54.449
other kind of disasters.[br]But if you create money moderately...

0:32:54.450,0:32:57.799
you have a solution to unemployment.

0:32:57.800,0:33:02.949
But if you give the money you create[br]to rich people like today,

0:33:02.950,0:33:08.099
to people who do not spend it and[br]accumulate (like a sickness)

0:33:08.100,0:33:13.249
then you will not solve your[br]problem of employment.

0:33:13.250,0:33:16.949
You need to give money to those[br]who spend it.

0:33:16.950,0:33:23.339
Jean-Marcel Jeanneney, a minister of[br]de Gaulle wrote a book called

0:33:23.340,0:33:29.729
"Ecoute la France qui gronde".[br]It is out of print, hard to find,

0:33:29.730,0:33:36.119
maybe as a second-hand but I published[br]the best parts of it on my website.

0:33:36.120,0:33:40.847
First, this guy explains that creating[br]too much money generates hyperinflation:

0:33:40.848,0:33:45.574
money loses its value and it is a[br]disaster for everybody.

0:33:45.575,0:33:52.112
He reminds of Assignats during the[br]french revolution,

0:33:52.113,0:33:58.649
the John Law's system,[br]the german hyperinflation in the 1920s.

0:33:58.650,0:34:05.974
He knows that. However he suggests that[br]the state should create paper money,

0:34:05.975,0:34:13.299
not money for private banks, nothing[br]you need to pay off but banknotes.

0:34:13.300,0:34:22.654
And then, without going through banks,[br]distribute FF3,000 to any individual,

0:34:22.655,0:34:32.009
kids, elder, men, women and observe[br]empirically what happens.

0:34:32.010,0:34:33.699
Does it create inflation ?

0:34:33.700,0:34:36.009
If not, then we do it again[br]6 months later.

0:34:36.010,0:34:38.189
Else we stop for a time.

0:34:38.190,0:34:43.999
He proposed to distribute money to[br]people. But the original aspect lies

0:34:44.000,0:34:49.809
in that money is given to people[br]who spend it. This changes everything.

0:34:49.810,0:34:55.444
Currently we create billions that we[br]give to people who do not spend it.

0:34:55.445,0:35:01.079
They possibly lend it but with[br]expensive interests.

0:35:07.740,0:35:16.999
About money creation I omitted[br]a point that should be mentioned.

0:35:20.020,0:35:25.479
Until 1973 in France,[br]and 1913 in the U.S.

0:35:27.420,0:35:30.309
the state was allowed to create money[br]like private banks.

0:35:30.310,0:35:34.654
Banks could create money like I said[br]but state could also

0:35:34.655,0:35:38.999
create the money he needed for itself[br]and its investments.

0:35:39.000,0:35:44.769
For that it just needed to borrow[br]from its central bank.

0:35:44.770,0:35:49.539
And as central bank belongs[br]to the state, and

0:35:49.540,0:35:54.309
we are the state, the loan was[br]without interest.

0:35:55.340,0:36:00.899
When the state paid off,[br]it did not pay interest.

0:36:03.900,0:36:12.099
But eventually France, U.S. and Europe[br]were victim of a monetary coup d'état.

0:36:12.100,0:36:17.474
The monetary creation was left[br]to private banks exclusively

0:36:17.475,0:36:22.849
so that states cannot borrow[br]from their central banks anymore.

0:36:22.850,0:36:26.374
In other words, oblige the states[br]to borrow

0:36:26.375,0:36:29.899
from private banks[br]for their investements

0:36:29.900,0:36:34.049
and oblige them to pay interests.

0:36:34.050,0:36:40.789
And in any country where it happened,[br]public debt appeared.

0:36:42.200,0:36:47.754
Public debt was successfully used[br]to enslave Third World countries,

0:36:47.755,0:36:53.309
to steal their raw materials[br]and resources.

0:36:53.310,0:36:56.549
This happens now to developed countries.

0:36:56.550,0:37:02.319
Progressively, the state

0:37:02.320,0:37:05.759
is forbidden to create its money

0:37:05.760,0:37:08.549
and is forced to borrow

0:37:09.330,0:37:13.159
on the stock market, that is[br]from rich people.

0:37:15.210,0:37:23.289
This way, the elected representatives[br]enslaved the state, made it dependant.

0:37:23.290,0:37:30.869
This happens clearly in Europe today.[br]Greece, Portugal, Ireland

0:37:30.870,0:37:34.519
are beeing strangled[br]by the debt system and there is

0:37:34.520,0:37:38.169
most likely no way around it[br]for the other countries.

0:37:38.170,0:37:42.479
[It is interesting to say that[br]in 1973 this was decided

0:37:42.480,0:37:46.789
by Pompidou and Giscard d'Estaing.[br]And who was Pompidou ?]

0:37:46.790,0:37:52.239
Pompidou was the manager of the[br]Rothschild bank.

0:37:52.240,0:37:56.346
[As an example of what became[br]world politics, when Gaddafi

0:37:56.347,0:38:00.452
came to Paris, he pitched his tent[br]in the garden of the

0:38:00.453,0:38:04.559
Rothschild family.[br]Just another interesting relation.]

0:38:04.560,0:38:07.249
I didn't know that.

0:38:07.250,0:38:12.714
Anyway. We actually often call[br]this 1973 law, the Rothschild's law

0:38:12.715,0:38:18.179
because it incredibly served[br]the interests of banks.

0:38:19.200,0:38:24.629
And we are the ressources of the[br]states. The work of millions of people

0:38:24.630,0:38:30.739
is thus for a large part dedicated[br]to pay the debt service,

0:38:30.740,0:38:35.569
to pay the banks, the creditors[br]of the state, on public spending.

0:38:35.570,0:38:38.774
Since the state is not allowed[br]to borrow from

0:38:38.775,0:38:41.979
its central bank, it has to borrow[br]from private banks.

0:38:41.980,0:38:45.884
So what happend in 1973[br]is deeply against

0:38:45.885,0:38:49.789
general interest. It is a coup d'état.

0:38:49.790,0:38:54.084
And... the same thing happened[br]the same way

0:38:54.085,0:38:58.379
in the U.S. in 1913 and with[br]the same banks.

0:38:58.380,0:39:00.829
So...

0:39:04.660,0:39:07.824
I think that the most relevant[br]book about this

0:39:07.825,0:39:10.989
period is[br]"Secrets of the Federal Reserve".

0:39:10.990,0:39:14.039
I think that it is the best book[br]to understand

0:39:14.040,0:39:17.089
the monetary swindle of that period.

0:39:17.090,0:39:25.189
It has existed for a long time but[br]it was translated into french recently.

0:39:26.860,0:39:33.004
That's bomb.[br]When you read that you get outraged.

0:39:33.005,0:39:39.149
It is easy to read, like a detective[br]story. And it explains how...

0:39:39.150,0:39:44.129
[Eustace Mullins][br]Eustace Mullins: M-U-L-L-I-N-S.

0:39:47.050,0:39:52.559
It explains how a couple of bankers who[br]were detested by the american people...

0:39:52.560,0:39:57.529
The americans just emerged from a[br]dreadful crisis. They had been ruined,

0:39:57.530,0:40:02.499
they lost their savings and people[br]hated banks and Wall Street.

0:40:02.500,0:40:08.349
[This was initiated by J.P. Morgan][br]Yes, but I cannot tell everything now.

0:40:08.350,0:40:10.274
But...

0:40:10.275,0:40:17.862
How a couple of bankers literally[br]conspired: they hid on a private island

0:40:17.863,0:40:25.449
with a member of the Parliament[br]to develop a project of central bank.

0:40:25.450,0:40:30.142
But a private central bank.[br]A bank which looks like a

0:40:30.143,0:40:34.836
public bank but is not,[br]which is called "Federal Reserve"

0:40:34.837,0:40:39.529
and which is neither federal[br]nor american nor is a reserve.

0:40:43.000,0:40:49.189
They wanted this project to be voted by[br]the congress. It failed the first time,

0:40:49.190,0:40:55.379
then they tried again in 1913...[br]The plot of Jekyll island was in 1910.

0:40:55.380,0:41:00.999
All this looks like a detective story.

0:41:01.000,0:41:08.104
The servants were given vacation.[br]They had hired new foreign servants

0:41:08.105,0:41:15.209
just for this meeting, just for one week[br]so that nobody could recognise them.

0:41:16.860,0:41:20.606
Mullins' work is really interesting.[br]He pieced this

0:41:20.607,0:41:24.352
puzzle together:[br]he relied on thousands of old

0:41:24.353,0:41:28.099
articles... even on books written[br]by the conspirators.

0:41:28.100,0:41:32.099
After the system were installed, some of[br]them started to talk as they got older.

0:41:32.100,0:41:35.334
He managed to complete the puzzle.[br]He did a huge

0:41:35.335,0:41:38.569
research work, very complicated and[br]very interesting.

0:41:38.570,0:41:42.752
And we discover the same procedure,[br]the same rules,

0:41:42.753,0:41:46.936
the same outrageous rights given[br]to the central bank

0:41:46.937,0:41:51.119
compared to states in the current[br]european system.

0:41:55.510,0:42:01.679
This book describe also the way[br]this project has been voted.

0:42:01.680,0:42:06.784
These bankers financed the campaign[br]of the three

0:42:06.785,0:42:11.889
candidates... The two main candidates[br]who could win

0:42:11.890,0:42:16.994
the election had both a project[br]of federal bank.

0:42:16.995,0:42:21.212
they were described as contradictory[br]whereas

0:42:21.213,0:42:25.429
they were alike, they led to[br]the same thing.

0:42:25.430,0:42:32.464
Finally, Woodrow Wilson was elected[br]in 1913. The first thing he did was to

0:42:32.465,0:42:39.499
vote this project of federal reserve[br]in a quick and dirty way, in december.

0:42:41.510,0:42:48.349
He did it against public opinion and[br]against general interest. Since then...

0:42:48.350,0:42:53.589
I think it is relevant to describe[br]America as an occupied territory.

0:42:53.590,0:42:58.339
These people have had their money[br]stolen and thus have been

0:42:58.340,0:43:03.089
enslaved by some privileged guys[br]with power beyond imagination.

0:43:03.090,0:43:08.389
You have to realize that by taking over[br]the dollar, they took over the world.

0:43:08.390,0:43:13.414
Eustace Mullins did a major[br]investigative work to expose the owners

0:43:13.415,0:43:18.439
of banks. There are shares and control[br]shares which are more important...

0:43:18.440,0:43:23.999
Nowadays this secret is kept as well[br]as the nuclear launch code.

0:43:24.000,0:43:29.559
Today it is almost impossible to know[br]who controls banks.

0:43:29.560,0:43:35.049
Back then the information was[br]still available and the trail of

0:43:35.050,0:43:40.539
the ownership of the Federal Reserve[br]led to the City in London.

0:43:40.540,0:43:45.019
That's the last straw ![br]Can you imagine how harsh it is

0:43:45.020,0:43:49.499
for american people ?[br]And it led mainly to Rothschild.

0:43:53.300,0:43:57.489
This deserve to be discussed in public.

0:43:57.490,0:44:01.679
Mullins might be wrong on some points,[br]we have to check.

0:44:01.680,0:44:05.044
The problem is that we cannot[br]discuss that

0:44:05.045,0:44:08.409
without being called a fascist[br]or an antisemite.

0:44:08.410,0:44:14.509
It seems that antisemitism was made up[br]to protect Rothschild. When we talk

0:44:14.510,0:44:20.609
about him we are immediately called an[br]antisemite, a fascist... Hitler soon.

0:44:20.610,0:44:27.259
Well I don't think I have much[br]in common with Hitler and fascists.

0:44:30.600,0:44:38.079
So, among alternative solutions,[br]there is "Freigeld" (free money).

0:44:38.080,0:44:44.589
"Freigeld" is a concept proposed by[br]Silvio Gesell. He was a famous

0:44:44.590,0:44:51.099
and appreciated economist who[br]proposed something interesting.

0:44:51.100,0:44:57.899
Keynes considered Gesell's concept[br]with respect.

0:44:57.900,0:45:01.574
Gesell tried to prevent people[br]from accumulating money.

0:45:01.575,0:45:05.249
Indeed, other people need[br]unused money to circulate.

0:45:05.250,0:45:11.212
So, in order to dissuade people[br]to keep unused money with them

0:45:11.213,0:45:17.176
he proposed that money might[br]lose its value each month. For that,

0:45:17.177,0:45:23.139
stamps had to be purchased and[br]attached to the money to keep it valid.

0:45:23.140,0:45:28.949
Indeed, this encourages people to[br]get rid of it since it loses its value.

0:45:28.950,0:45:33.099
But if you think about it,[br]Keynes' solution

0:45:33.100,0:45:37.249
involving a bit of inflation[br]is equivalent.

0:45:37.250,0:45:41.819
Inflation makes your banknotes[br]lose their value progressively.

0:45:41.820,0:45:46.679
"Freigeld" and inflation[br]are very similar.

0:45:46.680,0:45:50.624
Not exactly identical though.[br]Anyway, it was

0:45:50.625,0:45:54.569
Keynes' solution to[br]"Euthanize the rentiers".

0:45:54.570,0:45:56.839
That is a rentier...

0:45:58.920,0:46:06.739
Inflation reduce the gold pile[br]of a rentier. Workers, however...

0:46:08.700,0:46:12.064
About protecting people[br]against inflation...

0:46:12.065,0:46:15.429
I am a bit lost with my books but...

0:46:15.430,0:46:20.914
Concerning solutions to[br]withstand inflation...

0:46:20.915,0:46:25.827
Maurice Allais was not in favor of[br]inflation, but explained that a little,

0:46:25.828,0:46:30.739
2% was necessary - due to landed[br]property, I will not explain that.

0:46:30.740,0:46:37.829
So, these 2% that Allais suggested[br]to maintain, were compensated

0:46:37.830,0:46:44.919
by a general indexation system[br]like France knew after 1945.

0:46:44.920,0:46:47.744
During 30 years in France,[br]people's income were

0:46:47.745,0:46:50.569
indexed to inflation with the[br]sliding wage scale.

0:46:50.570,0:46:55.679
Wages were indexed, loans were indexed,[br]rents were indexed and thus,

0:46:55.680,0:47:00.789
for the workers and the little people,[br]inflation was painless.

0:47:00.790,0:47:05.299
Only the wealth of people[br]keeping banknotes decreased.

0:47:06.690,0:47:10.774
Actually, speculators often managed[br]to earn more than inflation.

0:47:10.775,0:47:14.859
Only the wealth of people keeping[br]piles of banknotes decreased.

0:47:14.860,0:47:17.779
And more people than you think[br]keep banknotes.

0:47:17.780,0:47:19.929
For those people...

0:47:22.100,0:47:24.519
money melt away.

0:47:24.520,0:47:34.399
So "Freigeld" is a solution to prevent[br]people from accumulating too much money.

0:47:34.400,0:47:39.369
Concerning the maleficence that happend[br]in -73 when the state

0:47:39.370,0:47:44.339
abandoned monetary creation,[br]I see as consequences...

0:47:46.120,0:47:48.109
a ruined state.

0:47:49.500,0:47:54.634
You have to understand that[br]rich people have much to fear

0:47:54.635,0:47:59.769
from a strong state that[br]they could not control.

0:47:59.770,0:48:04.729
So the strategy applied by[br]so called "liberals"

0:48:04.730,0:48:09.689
all around the world aims[br]to destroy the states.

0:48:09.690,0:48:14.899
And an efficient way to do that[br]is to ruin it.

0:48:14.900,0:48:19.454
Ruin by depriving it of resources[br]and Galbraith emphasizes

0:48:19.455,0:48:24.009
that great crisis are preceded[br]by cuts in rich people's taxes.

0:48:24.010,0:48:26.339
It is the sign of a crisis.

0:48:26.340,0:48:30.009
When taxes of rich people[br]start to decrease strongly,

0:48:30.010,0:48:33.679
this means that we are getting[br]close to a crisis.

0:48:33.680,0:48:37.389
I think that Galbraihs is right.[br]Since recently, you can see

0:48:37.390,0:48:41.099
that often, rich people pay[br]almost no taxes anymore.

0:48:41.100,0:48:44.409
And when rich people do not pay taxes,[br]the amount

0:48:44.410,0:48:47.719
of money that state lacks is a[br]bottomless pit.

0:48:47.720,0:48:52.939
So first, the state is ruined[br]by depriving it of its resources.

0:48:54.820,0:48:58.224
Second, by getting it into debt,[br]state is

0:48:58.225,0:49:01.629
burdened with the interests of the loan.

0:49:01.630,0:49:04.139
It is burdened with additional expenses.

0:49:05.660,0:49:09.464
You have to realize that the[br]interests of the debt,

0:49:09.465,0:49:13.269
not the refund, just the interests,[br]cost France...

0:49:14.460,0:49:20.519
It costs us 45, 50 billions euros[br]a year.

0:49:20.520,0:49:26.504
It is considerable ![br]50 billions just for a debt,

0:49:26.505,0:49:32.489
it is just the interests,[br]I insist, an unnecessary debt.

0:49:32.490,0:49:37.049
A debt that is not necessary.[br]If the state...

0:49:37.050,0:49:43.549
had kept the right to create money[br]for itself...

0:49:43.550,0:49:46.709
If it was allowed to borrow[br]from its central bank,

0:49:46.710,0:49:49.869
that is to create money it needs...

0:49:49.870,0:49:52.489
it would not pay interests.

0:49:52.490,0:49:56.834
Besides, the amount of deficits...

0:49:56.835,0:50:01.179
André-Jacques Holbecq wrote[br]a short book, very simple...

0:50:03.350,0:50:07.569
This short book: "La dette publique,[br]une affaire rentable"

0:50:07.570,0:50:11.789
and this other one: "Argent, dettes[br]et banques"...

0:50:11.790,0:50:15.534
Two good short books by[br]André-Jacques Holbecq

0:50:15.535,0:50:19.279
that explain well and[br]enable to understand.

0:50:21.480,0:50:24.879
He did quite a hard work because[br]statistics were not

0:50:24.880,0:50:28.279
available anymore, so he had to[br]go hunting for them.

0:50:29.320,0:50:37.099
Since 1973, public spending[br]did not grow. It did not grow.

0:50:37.100,0:50:40.629
In proportion, it is roughly unchanging.[br]So how come we are

0:50:40.630,0:50:44.159
more and more in debt ?[br]Well look, it is the debt service.

0:50:44.160,0:50:47.614
At the beginning in -73, debt was little,

0:50:47.615,0:50:51.069
so debt service was little[br]and thus the deficit was shallow.

0:50:51.070,0:50:56.019
And then, year after year,[br]deficit is roughly equal to...

0:50:56.020,0:51:00.969
not exactly, but it is very close,[br]the deficit

0:51:00.970,0:51:05.919
of the french state correspond[br]to debt service.

0:51:05.920,0:51:10.042
By reducing resources of the state,[br]by increasing its expenses

0:51:10.043,0:51:14.166
and year after year...[br]you have to realize that since -73,

0:51:14.167,0:51:18.289
members of the Parliament decided[br]not to balance this growing deficit.

0:51:18.290,0:51:22.754
They could balance it by reducing[br]spendings or increasing taxes.

0:51:22.755,0:51:24.949
They did not. They left the debt grow.

0:51:24.950,0:51:29.309
Now we are told: "Parliament were lax"

0:51:29.310,0:51:31.409
or "they were weak"

0:51:31.410,0:51:37.819
or "they did it to be re-elected,[br]to remain popular".

0:51:37.820,0:51:40.019
Possible, but I don't buy that.

0:51:40.020,0:51:45.089
I do not. It is possible...

0:51:45.090,0:51:51.589
I think that all this[br]fits together too well...

0:51:51.590,0:51:56.119
This decision, year after year[br]to let the debt grow so that

0:51:56.120,0:52:00.649
the state is progressively[br]enslaved by those who lend money.

0:52:00.650,0:52:05.229
And eventually, the state will[br]depend on these people. All this

0:52:05.230,0:52:09.809
matches so perfectly the interests[br]of those who finance election...

0:52:11.210,0:52:13.989
that I can hardly believe that[br]it is a coincidence.

0:52:13.990,0:52:18.729
I know, it is conspiracist, paranoid...

0:52:19.970,0:52:25.009
Nevertheless, since -73, members of the[br]Parliament, the so-called "left-wing"

0:52:25.010,0:52:30.049
like the so-called "right-wing",[br]all of them let the debt grow.

0:52:31.480,0:52:35.729
I find it too easy to forgive them[br]pretending that

0:52:35.730,0:52:39.979
"they were weak, they wanted[br]to be re-elected".

0:52:39.980,0:52:43.539
For me all this looks like[br]an attempt to bring

0:52:43.540,0:52:47.099
the state to heel.[br]To bring the state to heel.

0:52:47.100,0:52:54.809
This is consistent with the destruction[br]of nations by the European Union.

0:52:54.810,0:53:00.926
This is along the same lines.[br]The European Union construction takes

0:53:00.927,0:53:07.042
part in the destruction of the nations.[br]The state that our revolutionary

0:53:07.043,0:53:13.159
fathers built in 1789 to get rid[br]of the old aristocratic system.

0:53:13.160,0:53:15.789
And we are beeing stolen that...

0:53:17.865,0:53:22.199
by those who were the privileged of this[br]system. This is a counter-revolution.

0:53:22.200,0:53:26.514
A lot of people write books called[br]"counter-revolution".

0:53:26.515,0:53:30.829
We are witnessing a counter-revolution.

0:53:30.830,0:53:35.549
The privileged are erasing...

0:53:37.620,0:53:41.109
what we gained in 1789.

0:53:44.710,0:53:45.369
Well...

0:53:48.240,0:53:55.119
I am reaching the end of my talk about[br]money, and I kept the best for the end.

0:54:01.590,0:54:05.679
Creating money aims to finance economy.

0:54:05.680,0:54:09.304
No matter whether state is allowed[br]to create money or

0:54:09.305,0:54:12.929
how much is created, our goal is[br]to finance economy.

0:54:12.930,0:54:19.759
For many years, for centuries, this[br]task was entrusted to the stock market.

0:54:19.760,0:54:26.719
To public companies and to the stock[br]market. Those who have too much money...

0:54:26.720,0:54:30.947
come to the stock market[br]to make it available.

0:54:30.948,0:54:35.174
And those who need it to[br]start a business, come to borrow it.

0:54:39.130,0:54:43.889
I think that stock markets[br]are justified in case money is rare.

0:54:43.890,0:54:48.649
And it is created by some[br]privileged people who keep it rare.

0:54:50.215,0:54:53.759
But if we consider, that money[br]should not be rare,

0:54:53.760,0:54:57.564
if we consider this as a society,[br]we could then design

0:54:57.565,0:55:01.369
a system where we would take back[br]the control of the money.

0:55:01.370,0:55:06.119
And we would create... not too much[br]money because we do not want to

0:55:06.120,0:55:10.869
live through those bad experiences where[br]everything collapsed because of it.

0:55:10.870,0:55:15.619
People were ruined and the situation[br]was worse than before.

0:55:15.620,0:55:17.879
Without creating too much...

0:55:17.880,0:55:21.709
I guess that we could create[br]more money than today and also

0:55:21.710,0:55:25.539
dispatch it to other targets[br]than what private banks do.

0:55:25.540,0:55:29.444
But if we manage to take back[br]public control of

0:55:29.445,0:55:33.349
monetary creation, we do not need[br]the stock market anymore.

0:55:35.190,0:55:39.839
We need neither the stock market,[br]nor savings, nor rich people's money.

0:55:41.260,0:55:44.749
So let us grant the control[br]of the monetary creation...

0:55:44.750,0:55:48.239
not to politicians...

0:55:48.240,0:55:53.139
I will come back to that later, but to[br]public power, to citizens. This could be

0:55:53.140,0:55:58.039
an assembly, possibly randomly selected[br]that decide how much money to create.

0:55:58.040,0:56:00.119
We shall discuss that[br]because it might be

0:56:00.120,0:56:02.199
too technical for[br]randomly selected people.

0:56:02.200,0:56:05.884
Anyway, some public power instance,[br]an incarnation of

0:56:05.885,0:56:09.569
what we, the people are,[br]could decide how much money we need.

0:56:10.680,0:56:15.154
This may be a way to finance economy[br]instead of private banks.

0:56:15.155,0:56:20.499
There is another way I wanted to talk[br]about, a wonderful work, very exciting.

0:56:22.890,0:56:27.559
This were brought to me by[br]Franck Lepage. Franck Lepage is

0:56:27.560,0:56:32.229
an exciting campaigner, you should[br]get to know him if you do not.

0:56:33.160,0:56:36.679
You can type his name into Google,[br]you will find his

0:56:36.680,0:56:40.199
"gesticulated conferences" where[br]Frank tells important things.

0:56:40.200,0:56:44.159
I cannot tell much for[br]it is not related to money:

0:56:44.160,0:56:48.119
his main topic is about a[br]popular education. It concerns

0:56:48.120,0:56:52.079
culture as political education[br]of young adults to avoid wars.

0:56:53.320,0:56:57.849
Culture is reduced to art,[br]which is a disaster.

0:56:57.850,0:57:02.379
Culture should include education[br]of young adults on ethics.

0:57:02.380,0:57:07.329
For example Orwell's Common Decency,[br]a kind of generosity...

0:57:09.310,0:57:19.169
altruism that can be developed[br]and taught with a dedicated education.

0:57:19.170,0:57:25.244
So, Frank's work is about popular[br]education: the scuttling of the culture

0:57:25.245,0:57:31.319
reduced to art and without political[br]aspect. It is an essential work but...

0:57:31.320,0:57:34.719
we may talk about that later[br]together with random

0:57:34.720,0:57:38.119
selection which is also a tool[br]for popular education.

0:57:39.120,0:57:42.999
Frank introduced me to[br]Bernard Friot's work.

0:57:44.455,0:57:50.799
I cannot talk in detail about[br]Friot's work.

0:57:52.030,0:57:57.039
I encourage you to watch Friot's[br]conferences, each of them is

0:57:57.040,0:58:02.049
2 hours long. I saw 4 or 5 myself,[br]I met him, I expect to do it again.

0:58:02.050,0:58:07.059
The work of this man is essential...[br]and revolutionary.

0:58:07.060,0:58:14.269
Before reading the book you should[br]watch several videos because he...

0:58:14.270,0:58:18.774
he improvises in his videos and[br]they are never the same,

0:58:18.775,0:58:23.279
there is always something new and[br]they are rich.

0:58:24.270,0:58:30.134
One has to master his own vocabulary[br]about job, wage, contribution.

0:58:30.135,0:58:35.999
He gives his definition of "job",[br]his definition of "work" which is...

0:58:36.000,0:58:39.074
very useful. I shall summarize[br]so that you

0:58:39.075,0:58:42.149
understand how it articulates[br]with my talk.

0:58:43.090,0:58:47.604
I am trying to finance economy[br]without rich people's savings.

0:58:47.605,0:58:53.087
I would like we, the many non-rich[br]people, to have a normal economic

0:58:53.088,0:58:58.569
activity, to live a decent life[br]without requiring rich people's money.

0:58:58.570,0:59:02.709
without requiring capital,[br]without capitalism.

0:59:02.710,0:59:06.849
Without the money accumulated by...

0:59:08.015,0:59:09.989
those who have money.

0:59:09.990,0:59:14.359
Taking back money creation[br]is a first idea. And Friot's idea...

0:59:16.280,0:59:19.999
That's another bomb. Friot says:

0:59:22.445,0:59:26.922
There is something in our[br]current real life,

0:59:26.923,0:59:31.399
this is no utopia, this is no dream.

0:59:31.400,0:59:37.144
In our real life,[br]there is an anticapitalist financing

0:59:37.145,0:59:42.889
system that works very well,[br]namely our pension system.

0:59:42.890,0:59:48.647
In what way is it a major[br]solution that demonstrate that

0:59:48.648,0:59:54.404
we are able to finance something[br]without saving money first ?

0:59:54.405,1:00:02.929
Well look how our grandparents designed[br]the pension system after the war.

1:00:03.640,1:00:07.069
It is easy, very easy.

1:00:07.070,1:00:12.504
We do not know what will happen[br]in 20 years, but next year we know

1:00:12.505,1:00:17.939
how many people are going to work[br]and how many will be retired.

1:00:17.940,1:00:22.694
We apply the rule of three and[br]thus we know the proportion of

1:00:22.695,1:00:27.449
the wages that must be deducted[br]to pay the pension next year.

1:00:28.370,1:00:33.072
Each year we decide the part[br]of the wages that must be

1:00:33.073,1:00:37.774
taken to pay the pension next year.[br]It is unsinkable.

1:00:37.775,1:00:42.722
Of course, for the baby boomer's[br]pension you must raise

1:00:42.723,1:00:47.671
the contribution rate, like today.[br]By the way, this rate

1:00:47.672,1:00:52.619
has kept growing since the end[br]of the 2nd world war.

1:00:52.620,1:00:57.598
The rate rises a bit each year.[br]This happens in a period of growth,

1:00:57.599,1:01:02.577
when wealth rises even more quickly.[br]Each time, we create

1:01:02.578,1:01:07.555
much more wealth and we take[br]a bit more of this new wealth

1:01:07.556,1:01:12.534
for pensions. It is painless and[br]the system is unsinkable.

1:01:12.535,1:01:17.019
Except if you scuttle it voluntarily.

1:01:17.020,1:01:23.204
When business leaders gained to[br]freeze the employer contributions...

1:01:23.205,1:01:27.812
when they stopped to increase...[br]to adjust the part taken on

1:01:27.813,1:01:32.421
wages for pensions, they scuttled it.[br]And then pretended that

1:01:32.422,1:01:37.029
the system was not viable.[br]But they unbalanced it voluntarily.

1:01:37.030,1:01:41.854
This is sheer sabotage ![br]The system was designed

1:01:41.855,1:01:46.679
to be self-balanced,[br]without the slightest deficit.

1:01:47.800,1:01:52.399
And it worked very well[br]with huge amounts.

1:01:53.350,1:01:57.889
Pensions are 230 billions a year.

1:01:59.500,1:02:03.759
And state is not needed.[br]These are social funds betwen us.

1:02:03.760,1:02:06.514
No state needed, no saving needed,[br]no loan needed,

1:02:06.515,1:02:09.269
and there is no interest to pay.

1:02:12.070,1:02:16.384
These are important commitments,[br]230 billions

1:02:16.385,1:02:20.699
over 30, 40, 50 years.[br]And it works very well.

1:02:21.910,1:02:27.189
Already 45% of the global salary[br]is paid by funds.

1:02:27.190,1:02:31.334
Not only retirement but also health,[br]unemployment... any social insurance.

1:02:31.335,1:02:36.192
Almost half of our income[br]is already paid

1:02:36.193,1:02:41.049
by firms to funds and then[br]by funds to us.

1:02:41.050,1:02:44.794
It is already happening,[br]and there is no need to borrow.

1:02:44.795,1:02:49.079
No need to pay interests.[br]No starting capital or savings needed.

1:02:49.080,1:02:56.509
Friot says: this system has existed[br]since the 2nd world war.

1:02:56.510,1:03:01.044
It has worked perfectly since then.[br]It should be

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applied to every professional[br]categories, to everyone.

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And above all, since it works[br]for pensions...

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then let us do the same for salaries.

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A firm would not pay its[br]employee directly. It would

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pay a fund that would pay him.[br]It would be shared.

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One may doubt it would work,[br]but it is already

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working for pensions,[br]why not for salaries ?

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And for investment.

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Instead of entrusting the stock market[br]that does not finance economy anymore.

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You know that all together[br]the stock market deplete wealth.

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Each year, if you compare[br]what the market takes from economy

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and what it gives to businesses,[br]it deplete wealth.

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It is useless. For a long time,[br]the market has not financed economy.

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I discovered Friot's idea[br]a couple of months ago.

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It should be explored but[br]it is very appealing.

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Friot's idea is:

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"Let us follow...

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the successful example of pensions[br]for 60 years.

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Let us extend this system to other[br]problematic topics", like investment.

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The part of GDP that goes[br]to investment is catastrophic.

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We are far from the 25% of the GDP[br]we need.

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But if firms were asked[br]a contribution in investment,

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if firms that need to invest were able[br]to get money from an investment fund,

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we would have 25% for investment instead[br]of relying on a useless stock market.

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I think that none of these reform is[br]possible in the context of election.

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Because elected representative,[br]for a large part...

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a part that is hidden...

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are answerable to their sponsors.

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And if those sponsors are rich people...

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the richest are not storekeepers,[br]they are banks.

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So it would be an illusion[br]to believe that

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representative would change[br]anything about banks.

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It would be equivalent to a suicide.

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So what I am about to tell about[br]sortition in place of election

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is the political complement[br]to this work on financing.

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I would be glad to hear[br]your opinions about financing systems

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because I am still doing[br]research on that.

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There might be things that[br]I have not fully understood,

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or that I missed.[br]I am still seeking...

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new material.

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http://etienne.chouard.free.fr/Europe