“America Is Falling Behind China” – Trump Pressured To END Forever Wars Causing U.S. Decline
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Summary
In this episode, I sit down with former Vice President Joe Biden to discuss his advice to President Trump on how to get him back on track. We talk about his views on the Iran deal, the Iran nuclear deal, and the Iran sanctions, as well as his thoughts on the China trade deal.
Transcript
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What advice would you give to President Trump today? If you're in his ear, he asks you a question, what do you tell him?
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You're with him, you say, hey, Richard, so what do you think I should be doing?
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Well, I think he should go back to what he promised the American people and what they loved him for.
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You know, the things he said originally, that he doesn't want these forever wars.
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This one has all the makings of another forever war, you know, 20 years Afghanistan. I mean, pretty crazy.
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so go back to what they love you for and i believe that's really who you are that's what you really
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want let's all work together and get the real president trump back and there's things he can
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do of course there's opposition forces the deep say is very very powerful we've seen that and is
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in power and is using the power bases including the eu as a as you know as quite a serious opponent
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There's his sponsors that have paid a lot of money, and we know how they feel.
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You know, they gave a lot of money to Charlie Kirk, and they feel they owned him.
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And then if you do something they don't like, they feel it seems they have the right to do all sorts of things.
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You know, certainly threaten him as Candace Owens has documented, you know, happened.
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I would say get back to what you promised to do, which is reinvest in America, reshore the defense base.
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I mean, he said yesterday in a different speech, we're at war, so we don't have money for all these other things.
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I'm paraphrasing, but there's this constant refrain from everyone in America that we have to outperform China.
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China is at risk of winning in this, or China is at risk of winning at that.
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China did not go into and spend $8 trillion or $10 trillion in stupid foreign wars that
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And so I would say to President Trump, stick with what you said you were going to do.
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Redirect money into our domestic industrial base, into our domestic infrastructure.
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um he's done i i think a lot of what they've accomplished in uh under secretary kennedy
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has been very admirable very supportive of that this is just such a out of left field turn
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i i don't i don't fully understand it and i would just encourage him to get back to
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why are we investing you know 200 billion dollars there they're looking for incremental to support
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this right why are we not spending that to 200 billion in domestic infrastructure growth there's
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a whole lot of ways you could spend the money see i thought he was going to come out and say the
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gulf states are paying for the 200 billion dollars i thought he was going to come out and say hey
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this war is going to be paid by the gulf states because you know the 18 trillion dollars you were
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going to say something well of course um i mean entirely agree with luke and and i would add
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that actually there's a lot of things you can do where you don't have to spend money
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You set up a new bank, and the bank will be able to lend 20 times as much.
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Well, why is only China delivering 10% growth every year, GDP?
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There's nothing to stop the U.S., but we need to increase the number of banks.
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Actually, what is happening is the number of banks keeps going down.
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Last time you and I spoke, when you talked about the history with China, I made a video about that.
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And what I noticed is that U.S. went all the way up to 14,000 banks.
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I don't know what, we're at 4,500, 4,300 today?
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You know, a lot of the bigger banks are picking up the smaller banks.
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So you're going back to start lending more money to create more small businesses.
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Now, when America was in its high growth phase, 15% growth, 20% growth,
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and we're talking the second half of the 19th century,
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We were down to 5,000 banks and falling in every state in Ohio.
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You know, the number of banks is going down and down as they're being forced by the regulators to close.
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It's only a good thing for the central planners who want to give us zero growth, degrowth, because they want to restrict everything.
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But actually, what we need is to implement what America was created for, individual freedom and the ability to implement through hard work, to implement things that give us abundance.
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Now, you need the right financial framework, and America used to have it, tens of thousands of banks.
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Germany used to have almost 30,000 banks just 100 years ago.
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Because I don't think China ever got to a number like that.
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Well, the U.S. had at its peak more in the end of the 19th century.
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You know, 40 years ago, America had 14,000 banks.
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A lot of small – $100 small business loan 100 years ago.
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There was even an era, and I think we should really go back to this era, of free banking where everyone was –
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Ask the question how many banks U.S. had 100 years ago, Rob.
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And so the model used to be at some stage in America that you could just set up a bank.
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Even in the U.K., you could just go to the post office, you pay five pounds,
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which was, of course, much more money than nowadays, and you could register a new bank.
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If you meet certain criteria, you've done it, you know, signed off by an auditor that you've got it, you automatically get your license.
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At the moment, it's the bureaucrats humming and hawing.
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But somebody may push back and say, OK, Richard, you're the godfather of quantitative easing, right?
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Some may say that created a lot of issues if we loosen up too much.
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Like if you go back and look at you're saying hardcore deregulation.
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A lot of these banks that did the no income, no assets, loans, the WAMUs went from $330 billion to $1.9 billion, all these guys.
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And my original quantitative easing was for the central bank to help the banks that are doing the real job, which is business lending.
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There's three scenarios, three types of lending and three types of outcomes.
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When banks lend, they create money out of nothing.
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You know, I did the first empirical study in a 5,000-year history of banking proving that because that was considered the conspiracy theory by those who didn't want the public to know the reality that when a bank gives a loan, even a mortgage, the money for the mortgage, the money for the loan is newly created, and the bank is allowed to add it to the money supply.
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And everyone can figure out, well, if they're adding new money, that has an impact.
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That's the fractional reserve model, which is also not the reality.
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The reality is 100% of the loan money is newly created by the bank.
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But how much do I need to have in reserves to be able to lend it out?
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For every million dollars, what do I need to have in reserves?
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Look, in many countries, the reserve requirement is zero.
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England, Sweden, Australia, the reserve requirement is zero.
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The reserves are not really what's holding things back.
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We have currently in many countries the capital adequacy model where capital is a limit, you know.
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And anyway, you know, that's really beside the point because most banks are far below the maximum they're allowed to lend.
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So there's no point even discussing, oh, you know, how can they, you know, what's holding them back?
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Well, it's not the capital that's holding banks back.
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Actually, the regulators have made life very hard for those banks that do the productive lending.
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