Seven oh five if you're a fifty five cars de Talk station. Brian Thomas swishing everyone a very happy Tuesday in an early Thanksgiving last day of the week for me as I move into vacation. But I am so pleased to be here today because from the Mesa's Institute, I'm pleased to welcome to the fifty five KRC Morning
Show Thomas de Lorenzo. He is the president of the Mesas Institute, former professor of economics at Loyal University, Maryland, a longtime member of the Senior Faculty of the Mesas Institute, author of so many books I can't listen them in the time we have allocated for this discussion, but here to talk about the new documentary released by the Mesa's Institute, playing with Fire, Money, Banking and the Federal Reserve. Tom de Lorenzo, Welcome to the fifty five Carricity Morning Show.
It's my distinct pleasure to welcome me to my program.
Well, thank you very much, Brian, I'm pleased to be with you.
Well, let us initially discuss okay, and I will admit upfront now I joke about this all the time, so my listeners know probably what's coming. This is where my you know, sixteen years of practicing law and my twenty years of being on radio almost and my MENSA membership mean absolutely nothing. I don't understand the Federal Reserve. I don't get it. I don't understand it. Now I have, you know, a high level understanding of the Austrian School
of economics, which is what the Mesis Institute supports. I'm familiar with the Chicago School of economics, the Milton Friedman style, and I know the Keenesian economic theory is a bunch of nonsensical, ridiculous idiots. So that's about boiled down what I've got here. But thank you for this documentary so we all can understand what the FED is, where it
came from, and why it's so dangerous. So let's begin with the Mesis Institute and just general principles of Australians are Austrian rather school of economics, the.
Austrian school, because some of the founders of the ideas came to America from from Austria. Friedrich Hayak is probably the best.
Known among Americans of that. And it's free.
Market economics, international peace through history as things we focus on, and it's a research and educational institution, and we try to educate anyone and everyone, and it's not it's not a think tank. We don't preserve, we don't published papers for congressional staffers and things like that. That we're mostly research and educational institution and that's what we do. And the new documentary is aimed at helping people like yourself, like all Americans.
It's not an accident that no one knows what the heck the FED does.
When when Tucker Carlson interviewed Ron Paul a couple of months ago, Tucker said, you know when this came up when Ron was running for president, he said, I was getting paid to know about this stuff. That was where he was working on interpers for of Fox at the time. And he said, and even I knew nothing at all about the FED. And so that's the purpose of our documentary and any of your listeners can look at it, see it for free. It's thirty eight minutes on the
mesas dot org slash fire. It's m I sees dot org slash fire, and it's at a very introductory level explaining what the FED is, and it makes the case for abolishing it. And it features Ron Paul and the famous Wall Street investor James Grant, and myself and a number of other people from the Mesa's Institute.
Wonderful. My producer, Just Trekker will add that to my blog page mesas dot org and a link to the documentary so our listeners can easily find it, and I know they will thoroughly enjoy understanding it. Let us just talk generally speaking of this concept of running the printing press. I don't, I mean, I understand how they do it. It's basically flip a switch, you print out several trillion dollars, and the next thing you know, you've watered down the
monetary supply. See inflationary reality. We have so many charts we can go to what's a dollar worth now compared to what it was worth in pick a year nineteen eighty nineteen thirty. You can see it's been watered down completely. That is the natural order of things. The more you print dollar wise, the less value each of them has. We're talking about a piece of paper, not something that has physical value. We simply rely on it as a means of easily exchanging, you know, easily buying and selling
goods and services. But it's meaningless as a thing.
Yeah, it's only based on the promises of politicians.
But it wasn't always that way. Our money used to be attached.
To gold and that ended, but it was ended by Nixon in the nearly seventies where you could redeem dollars for gold, and then they just said, sorry, no more, you can't do that. And that's why we had the economic complosion of the seventies, stagflation. We were no longer there was no longer any restraints on the ability to to counterfeit money. And you know, conservatives have been complaining for decades about overspending. Overspending. The Fed is the key
to the whole thing. There was a law passed in the thirties that gave the FED the right to just counterfeit money, legally counterfeit money, then use that money to buy government bonds as a way of infusing money into the banking system, and that's what creates all the inflation. And that law can be ended tomorrow.
The Congress could we send that lot tomorrow. It doesn't have to.
Abolish the FED. It could just do that one step and that would that would keep the Fed from escalating the money supply, and we should be seeing deflation now with all the technological advance that we have, especially with artificial intelligence and all that, but we don't because we the FED puts so much money in circulation, and it primarily benefits the banking industry, the Wall Street speculators, the people who get their hands on this money first that
once it's printed by the FED, and then the average American just suffers through the never ending wooman bus cycles and the great recessions and price inflation. And the dollar is worth about two cents now compared to what it was in nineteen thirteen when the FED was created.
What would the world or our country, let's focus on obviously, the United States is our currency. What would the country look like if that had never happened, if they stuck to a gold standard, if your cash was redeemable for physical gold.
Oh, we would have far less inflation, for sure, and we would have far less bloom and bus cycles.
You know.
The Great Recession of eight followed the recession a bust in the stock market in the year two thousand.
Every decade we have one of these busts.
And they're all caused by the FED. And that we would have far fewer than that. There's a lot of research in the field of economics now that shows that our economy is much more unstable after the FED was created than it was before the FED was created. We've never had a perfect world. Nothing on earth is perfect, but the FED has made things much worse and not better. Has in controlled inflation, as in controlled unemployment, any.
Better than otherwise would have been.
And we used to have competing currencies and so, and we're starting to go that way, you know, with all the bitcoin and other cryptocurrencies, we're starting to go in a direction of competition. And some states are making it much easier to use gold and silver also as currency, or at least backing a currency. So I think in the future we're going to have to move in that direction even more than we are now.
But wouldn't I mean, if we just stuck to a gold standard, then wouldn't they basically the size and scope and expectations that people have of what we can get from the federal government. Wouldn't it be dramatically reduced. Wouldn't the government be extraordinarily smaller than it is now?
Well?
Sure, that's why you know, the Constitution gives the federal government. The ability to coin current money, coling money doesn't give it the ability to print money, print paper money at all, and so they knew what they were doing, and so yeah, we would the government. The constitution is pretty much a dead letter because of the FED. The government can do anything at once and print up the money and pay for it, and it creates what economists call a fiscal illusion.
You know, if the government said, okay, we're going to send another one hundred billion dollars to Ukraine, and so we're going to impose attacks of ten thousand dollars to every working family to pay for it, you see a far fewer Ukrainian flag bumper states.
I love that one small sliver of the unbelievable, you know, the outlay from government. But you hit the nail on the head right there. We would have to be asked to dive and dig into our own pockets to find any given situation. I suppose that's a lot like the war war bonds back in World War Two. To a certain degree.
Yeah, it is.
And it's you know, we're approaching the holiday season now and so government has one big Santa Claus, you know, something for nothing, you know, Uncle Sam is really Uncle Santa, and you know, he prints up money and just spends wildly to make the politicians themselves popular, and they all play Santa Claus, you know, four hundred and thirty five Santa Clauses in Congress, basically, but it.
Never seems to stop. Under the current circumstances, what do you perceive to be the future here in the United States? Obviously, the printing press is running the morning we print the bigger our credit card debt. That's way most people kind of view it, paying debt service to our creditors. It keeps getting bigger. A larger and larger share of the government money is being paid to service this massive debt that's not going to last. It can't. It's going to
collapse on itself. I mean, that's the way I perceive it.
That's right, that's right.
You know, we have such a strong economy and so many work hard working people and so much capital investment that's saving us for the time being from being Venezuela. And we're not going to turn into Venezuela tomorrow as far as that goes. But we can do tremendously better.
Even what President Trump is talking about in eliminating the brags that he eliminated four regulations for every new one, and I think in his new term there should be no new ones and eliminate maybe one hundred a day of government regulations because most of them, the vast majority, serve no purpose other purpose other than justifying the loser jobs of government bureaucrats. And that would just free up a tremendous amount of entrepreneurship and investment and work in America,
just that apart from the FED. And of course a move in the direction of more honest money will be inevitable. I think you'll see different states saying that you can use this currency, that currency more, pay your taxes with bitcoin or whatever cryptocurrency comes down the pike in the future.
Now, in terms of oh, shoot, I lost my train of thought, Tom, I apologized. That does happen from time to time. I'm just so baffled by this. Oh I recall now I've heard Ron Paul and I maybe even Ran his son mentioned this before. I come from a lot of people the idea of auditing the FAT. It has a certain appeal and ring to it because it exists as the standalone body with so much control and
power over our lives. Is that a meaningful act? Will that result in something other than perhaps enlightening more people about what you are outlining in this playing with fire money banking in the Federal Reserve.
Well, well, you know it's meaningful because every time someone like Ron Paul proposed it in Congress, the entire banking industry would circle the wagons and send millions to Congress to bribe the the members of Congress to kill it immediately. They don't want people to know what's going on, and every once in a while we get a glimpse of it. There was a General Accounting Office audit about twenty five years ago of a FED a certain sort of a wasn't a full blown on it, but it was piecemeal
and they found such things as you know. They had fleets of corporate jets, huge art collections that the head janitor, this is, this is almost thirty years ago. The head janitor was making one hundred and sixty three thousand a year plus benefits. Jeez, And that's if it's in the public interest. If what's there and they're doing is in the public interest, why can't the public take a look at how they're spending all this money.
Amen, you get no argument from me. Thomas De Lorenzo, President of the Mesa's Institute. You'll find Playing with Fire, money Banking and the Federal Reserve linked on my blog page fifty five caresy dot com, or go directly to MESIS dot org, m i SES dot org and if you want to hit that directly. It's been a real pleasure having you on the program, Sir. I truly appreciate the work that you're doing on the light that you're shedding on this profound problem we face.
Well, thank you very much, Brian and I have a great day, and you.
Have a great day too, and a wonderful Thanksgiving. Tom, take care of yourself seven eighteen Right now, fifty five KRC the talk station. Yeah, head, I don't know, fifty five KRC dot com and check that out and I'll learn something too, because I'm going to be doing that exact same thing myself today. Another thing you want to check out Zimmer Zimmer Heating and air Conditioning three generations is Zimmer folks helping out their customers, keeping your house safe, efficient, comfortable.
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