00:08:17.180We're just going to go through the receipts, bro, before your perp walk.
00:08:20.880So we'll get to all that a little later.
00:08:23.160I want to start with one of the most serious people in the country and someone that is a – that people in the White House, people at Treasury, capital markets, and, of course, the MAGA movement takes very seriously when she's ever doing an interview or giving analysis.
00:08:46.760Judy, you know, the president – we've got some clips we want to show you a little later.
00:08:49.960But the president went to the Federal Reserve on the same day Scott Besson, the secretary of the treasury, saying, hey, look, this is just not about a new chairman.
00:08:57.020We need a fundamental review, strategic review of exactly what we're doing here as a central bank.
00:10:03.700And I think that the chair, Jerome Powell, was setting himself up as some kind of an emperor who was going to sit in judgment.
00:10:15.420And, yes, an elected president could come in and put forward their supply-side program of lower taxes and less regulation and smarter trade policy and better energy policy.
00:10:27.280And the Fed would just sit there in judgment and decide if it would allow those things.
00:10:33.580And it really came to a head when Chair Powell made that speech at the Economic Club in Chicago.
00:10:40.960And I think he bought the farm when he did that.
00:10:44.400Because, finally, the disconnect between the world of central banking and all the Americans who voted for President Trump and want those policy changes, who want an economy that's growing, who want an emphasis on the private sector, the real economy, they just said, now, wait a minute.
00:11:04.560He's talking about tariff-caused inflation as if that's a done deal.
00:11:10.900And it's time to call the Fed out on—it can no longer just say, oh, then you're threatening the sanctity of central bank independence or markets might get roiled.
00:11:24.080I'm telling you, we're going to see the central bankers double down.
00:11:27.380Because when Chair Powell goes to Europe and he gets toasted by Christine Lagarde, the head of the European Central Bank, and he gets a standing ovation as she says, oh, yes, we all hope to be as brave as he is in resisting—I presume she means being fired.
00:11:49.120I mean, no one got fired when we hit 9 percent inflation, the highest, in 40 years.
00:11:55.060And yet the Fed talks about transparency and accountability.
00:11:59.220But it's kind of cheap grace, because in the end, the Fed just keeps perpetuating its own power.
00:12:08.560It has wrong models, wrong mechanisms.
00:12:13.500I welcome when Treasury Secretary Scott Besson said we need fundamental reform.
00:12:19.760It matters a lot more than whether the Fed reduces 25 basis points in July versus September.
00:12:25.620And even the building renovation project, that's just the thread that we can now pull to unravel all of the problems at the Fed.
00:12:35.360Running at an operating loss since September 2022, over $900 billion in unrealized capital losses on its own portfolio.
00:12:45.620And for me, the worst, the Fed paying interest on reserve balances, which means it doesn't engage in open market operations to set monetary policy.
00:12:57.320In a free market economy, it fixes the interest rate, the price of loanable capital.
00:13:04.880And it does it by paying banks not to make loans and not to put their money in Treasury securities, which would bring down those rates, which do affect the real economy.
00:13:15.740So I'm happy I'll be meeting with Republican senators next week at their steering committee meeting.
00:13:22.440You have a number of senators who are finally willing to exercise, I think, their constitutionally mandated oversight responsibility.
00:13:30.740Section 1, Article 8, they're supposed to regulate the money.
00:13:38.080We're going to take a short commercial break.
00:13:39.280Judy Shelton is with us this morning on one of the most fundamental issues in this country about the central bank, currency, interest rates, all of it.
00:13:49.300Update, as we told you, Fishback has got a court hearing on Monday about whether under the Sunshine Laws, I think from the 1970s, 1980s, they can even have a private meeting.
00:14:01.280These meetings can be private and not open to the public on Tuesday at the Fed.
00:14:06.260The Fed, yesterday, I think their lawyers claimed it would be a grave disservice to the public if these things are transparent.
00:14:21.480End of the dollar empire, birchgold.com slash Bannon.
00:14:24.660Find out all about the prime reserve currency.
00:14:26.720One thing I want to ask Judy about is about this fight from the very beginning of our republic about central banks.
00:14:33.860If you get into the dollar empire, go to birchgold.com slash Bannon.
00:14:37.900The first, I think, two free installments actually talk about that in the 19th century when we really had debates all the time about currency.
00:15:12.060It just cannot keep up with that demand.
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