Yanis Varoufakis - University of Ioannina Technology, Money, War 31/03/2022
A subtitle by 4star (****) or swordfish1 Technology, money, war discussion with Giannis Varoufakis The title, I think clarifies what is the topic of our meeting today I will talk to you around 35 minutes and please get ready, with interventions and questions to have an interesting conversation, which is sure to take place technology, money, war include the word politics in the frame not party discussion ! politics why these 4 subjects war money politics money connected from the beginning of the humanity of prehistory, not even of history two introductory words when we think of the first form of money we think of coins. The evolution of metallurgy technology was the beginning of history from prehistory, we went to history when people discovered iron so the Iron Age because copper It was the time of the Trojan War of Prehistory, of Mythology The story begins to run fast with what the "way" economic way of creation is discovered iron and especially steel weapons, tools and at the same time we see that it was the period when the coins they are now starting to play the role of the average transaction in cash economies. Today money is digital. Technological developments,in other words, go hand in hand with the transformations of what we call money The war ! Lets not forget that the first central bank the bank of England Why was the Bank of England created? for the King to finance his wars and what he did I do not know if you know but the Bank of England was a private bank and remains a private bank Although they are essentially public, they are not as public as the public health system in Britain. how was it created? The king made a deal with a banker for exactly 3 bankers a consortium and the deal was as follows I will give you, as King as Monarch, the right of exclusive publication of the currency which all British citizens are obliged to of the UK then accept if you run a shop you have to accept a money and to you the banker I give you the right to cut it (circulate the currency) this is a monopoly, I give you a monopoly with what in return ! You will finance my war. Whenever you see that (you do not see you imagine it) in the context of the introduction I introduce these interfaces between war money technology since I was referring to a war of money and a bank in England I want to talk to you about the war in Ukraine not that of today the one in 1850 Have you heard of the Crimean War? You know that Russian Ukrainians fought in the Crimean War British and French and you know that 700,000 soldiers were killed in 2 years was a horrific war the war in Ukraine then was not only in the Crimea It is called the Crimean War because it started there with the landing of British troops So what is of great interest and we will end up in today's war I'm sure is the following that at the time tens of hundreds were killed thousands of British French Russian soldiers it was essentially a Russo-British war so with the Ukrainians being with the Russians or some being with the Russians and the French being with the British The Bank of England, the central bank to which I have just referred continued in the midst of the slain in the midst of war to repay loans taken by the Bank of England from the tsar of Russia from the central bank of Russia of Moscow and at the same time the central bank of Russia was repaying bond loans that had been taken from British private bankers this for a comparison with what is happening today that with sanctions against Putin's Russia the british central bank the american central bank the european central bank have cut off access to Russia's central bank in money belonging to the Bank of Russia and in other words they have around 800 to 900 billion dollars the Russians, the Russian central bank that can not use them because the central banks of britain, america, europe and force them to make payment arrangements against English private to German private in other words something is happening with this war which is quite different from what happened with an even more bloody stained war in the middle of the 19th century these are simple to connect all these puzzle pieces so war politics money technology Let me get away from historical references and go to a detailed question which I will call "the great misunderstanding" and it's about how we humans understand money There is a huge misunderstanding in the way most people understand money Because we are used to thinking going to an archeological museum one sees the coins the ancient turtles so, the ancient drachmas you think that once the money was, it was material form metallic form until very recently and now find (my friends) what has happened has passed has become without physical existence that's why we do not understand it's why we may have problems We believe that money started as a thing one thing, one object is a piece of gold, a piece of silver an alloy of gold with silver even salt because the salt was used in many corners of the globe as a medium of exchange cigarettes in prison, there is no prison in the world that does not use cigarettes for exchanges! so, they evolve as currency and in the concentration camps we know this and in the movies so we tend to think that at least until recently until we have plastic cards the paper money, money had a value that to a large extent emanated from the value of the metal object of matter of which it was made of that is, it is very difficult, I remember as a child I had heard that one five thousand (5000 drachma banknote before the issuance of the euro) because we then had drachmas or a 100 drachma banknote (100 drachma banknote), it cost half a drachma and I was confused that the katostariko can cost half a drachma another the cost of production and another what it is the monetary value of this banknote this is the big misunderstanding, that we tend to consider money as an object which has a source value or at least that it should be so because it agreed until recently and in fact, how many of you are related to the Department of Economics? how many do you study economics? No one! I came here and no one came studying economics Something says this (Smiling to those present) If you had a relationship with the finance department, if you were studying economics even simple economics or very sophisticated economics The story that the manuals tell about money is that "in the beginning no the Barter English exchange (in English) in the beginning it was anti-realism, that is, one humanoid went to another humanoid and tell him to give me an apple of your own orange I do not have oranges you do not have apples, take an apple and give me an orange and so the economic exchanges on the basis of barter began until at some point one of these goods whether it was gold or salt... it does not matter
one of them was emerging in the middle of the transaction as is the case in prisons where even non-smokers want to have cigarettes since cigarettes are a medium of exchange whoever has cigarettes can get other things... in jail this is the theory that has gone through the minds of most people as has passed the theory that the loans given by a bank is someone else's savings and this is not one belief that most people have when it comes to Katerina to take a loan of 10,000 from the bank, in order for the bank to give them, they must to take these 2 from Kostas's savings first ¨The idea that money is a thing¨ which evolved into money within the barter process and the idea that the money a banker lends to a bank arises from savings elsewhere are related to some very pioneering moments of economic life indeed when we were if we were in a village even the only good that exists is corn so there are no other goods there are other 2-3 such there is no money it really is the corn it's at the same time the thing you save and the thing you borrow because if you need seeds to plant in your field and you do not have you will go to the next door or to the neighbor and you will tell him you give me some seeds? these are the adjacent savings in corn It is also money, it is also used for exchanges and it is both an investment and it is also a loan you owe it to him, your crop is doing well, you hope you return this seed plus interest rate, ie plus 10% more seed than the one you got these primitive thoughts stories are the basis the structure the foundation of this great misunderstanding in reality neither money nor savings finance loans and this is something we need to understand and it is not that this is not happening today it never happened I will give you an example The first recorded form of money is not coins they are pieces of clay with numbers written on it The ancient Greeks called them shells, the shells you know are not shells it was crushed clay This was the first form of money we know from Archeology. Long before there was metallic money it belonged to the Assyrians in Mesopotamia and how the landowner or the King, operated the system who had the fields hired you as an agricultural farmer and he told you to come and work here at the beginning of the agrarian revolution shortly after the discovery of the possibility that man has to cultivate fields and to produce grain and start as we know at least in Eurasia in Mesopotamia and on a piece of clay he wrote and thus begins and the writing the writing begins thus you know this so the first use of writing was an accounting system for essentially 'I owe you so many kilos of wheat' who wrote it on this piece of clay that is, when we have the harvest you will gain so many kilos you and your family a -i owe you- was from English I owe you -i owe you-this was it over this piece of clay with the number above the man who cultivating the fields the worker and go to one to someone who had cows and he produced cheese or milk and he told him look, in 6 months I have to get so many kilos of wheat nice? take this clay or i am giving it to you as my warranty to lend me cheese to feed my family and so you started making money on these pieces of clay began to be the money in circulation at the base of -i owe you- in other words it never applied to any society in humanity what we say in the books in the textbooks of finance that first the economic activity started and then some goods turned into money not the debt started first the -i owe you's- the debt transferred the transferable -i owe you's- this is it, they are pieces of debt which are transferable and can go from one to the other and function as money. Let's go to the first coins because this is when I first read that when Ifirst learned this thing at an old age because there is no standard textbook of monetary theory of coins It arose from archaeological and anthropological studies the first coinage again in Assyria in Mesopotamia emerged but when the metallurgists of that time managed to produce cast iron iron and later with different styles to turn it into steel they did not even have the ability to make small metal things instead of pieces of clay nor did they have the reason to do so much more to make plows, these weapons were more useful. At one point one of the kings in Mesopotamia to give greater faith to give more faith to the mind of the farmers that these pieces of clay had value ' what he did he ordered from some metallurgists large iron plates and what was the story that when you get a piece of clay you have a share of this big iron plate that's yours is like being a shareholder in this big iron plate which was so big that she could not get up, no one could move it the first coins in other words were intact no one could use them nor did the ruler have to have fifty people to carry them and what is the interest fact do you know what is the interesting thing about it? that they started working in relation to -i owe you's- which were the pieces of clay 20 years before they were produced the ruler ordered the production of these iron plates but it took 20 years to make them 30 sometimes 50 and that is, the value of the clay began to be linked to a piece of metal which had not been produced for decades because I tell you this because when they tell me today what Bitcoin is is an idea of what the Euro is an idea is the Euro especially now that we have a plastic Euro an idea is not it? you can not catch where the world is going ? those values that we had were lost, that once you took the money and bit it, you understood its value. the value "nonsense" always the currency was an idea Money has always been an informal contract based on fidelity this is why we talk about credit so this is why we talk about financial system faith comes from there it is no coincidence that the coin comes from the same verb as I think something has value we think a monetary unit has value we think it has ..value
it is not inherent in value to derive from what is the material appearance of money. If what I tell you is true and what I believe to be true is now clear from the anthropological and Archaeological studies that on all continents on each continent which has been a cash economy development the money was essentially transferable -i owe you's- if this is the case then ultimately what money is is an abstract appearance promises -i owe you- is a promise you gave me a kilo of wheat I will give you a kilo and something dram after in one year with interest that's a promise If you take a look at the dollar banknote so write on -promise to pay- I do promise to pay it doesnt say i pay with this paper I promise to pay is a promise In other words, even if you see it etymologically in the Greek language this hand that is common to money and debt It is no coincidence that money is a form of transferable debt promise, debt is a promise give me this and I will give me your cow or what I know I'm getting married today in the village so you have a lamb and i want to slaughter it i hope it does not attack me if you are vegεterians vegans and so on let's talk historically now and I will owe you this lamp this baby goat When you get married I will give you this and some other hens this is how the collaboration begins the economy the transactions the debt that becomes money and the money that becomes a debt has always been valid so if I'm right in what I'm saying then the whole monetary system is nothing more than a cluster of one a set of promises A promises to B. in C to D in E between strong and weak between the ruler and the workers between the workers between the rulers between the state institutions and the citizens between citizens and state institutions. Now what we know very well is that <b> the strong </b> <b> he is the one who has the ability </b> <b> break promises. </b>
This means social power. To be able to promise things and then decide for yourself which of these promises will fail or can fail. The weak thus have no possibility to fail .. a promise These promises were told to us in 2010 from our "friends" from Berlin and Frankfurt that debt is sacred our debt theirs was not sacred! after the Second World War so the occupation loan given by themselves to themselves from the bank of Greece this is not sacred! This means having power because it is not a matter of wanting to break some promises some promises that you finally make of things you can only fail to do it's because you made a mistake it's because it had a flood and your crop failed and so you can not give the grains you promised to someone who has these -i owe you's- that you will give. So if we look at it from this point of view, money is not only technologically dependent it depends on the technology you have, metallurgy, digital technology, etc.
it is not only cultural and it is not based solely in the social relations between people relations of trust faithful but it is deeply political. because who has the power to decide which promises are broken and which are not he is the one who has political power. Has the ability to tell others what to do. and what not to do.
We are moving forward now, because I want to move forward as quickly as possible in our discussion in today's technology. Let's go to digital money. There are 2 types of digital money right now Public and private. All money 97% of Euros circulating in the Eurozone are digital. Only 3% are printed. Do you know that? If you see the total amount circulating in the market 3 in 100 Euros are paper or coins and 97 are digital they do not exist.
This is public digital money. There is also private digital money. Starting with a very interesting someone's text posted on the internet with a pseudonym Of Japanese origin. From which Bitcoin emerged.
Which has many similarities with public digital money and 2 substantial differences. The essential difference (let's go to the differences before we go (we do not need to talk about the similarities) The essential differences are that is horizontal as opposed to public money which is vertical what does it mean that public money is vertical The money produced by the European Central Bank leaves Frankfurt by decision of specific bureaucrats in a building in Frankfurt how it is channeled where it is channeled like that it is a bureaucratic political process this money goes to private banks private organizations such as Visa such as Mastercard and you have your plastic card that you are issued by the bank (Eurobank-National) does not matter there the Visa on it when you go to have a coffee with Visa from here the cellar I do not know if you accept coffee (Starbucks) I do not know where you go you spend a coffee which costs 2 Euros what happens is there a global system, a cluster a ledger world an accounting book digital of course that has millions in billions lines, rows, one of it is you are you the one who got the coffee of 2 Euros these 2 numbers if you had credit faith 100 becomes 98 and this 2 add to the other line which is the cafeteria. But it is hierarchical One is checking this ledger by Visa or Mastercard the European Central Bank. With Bitcoin you have a very completely different process does not exist center there is no pyramid and control from above the book this accounting is broken into infinite pieces and every user of the Bitcoin payment system has little access in one piece it is like having a puzzle, which you have broken into all the pieces each of us to have a piece of the puzzle no one to have the whole picture and in order for any transaction to take place, we must all work together to put our pieces together to check that indeed the 2 Euros yours or the 2 pieces I do not know the 2 millimeters of Bitcoin they go from one to the other. so ? This is why Bitcoin technology is based in the decentralized accounting book and in a collaborative process where we all contribute something in the confirmation of transactions I have to tell you that when I read this in 2010 I read the code I was impressed because it is indeed a revolutionary technology does not mean that it is democratic because it is decentralized because when such a private digital currency starts by default it has no value in the beginning what was the value of Bitcoin when it first launched a few cents The more it succeeds, the greater its value which what it means means that Bitcoin pioneers are by definition oligarchs Currently 93% of Bitcoin has never been released some have it is a bitcoin oligarchy and can not be different The second big difference from public digital money is that (and I think that's very important) decentralized Bitcoin the decentralized system by default by default can not be done otherwise provide its users one amount of money that is given may change over time but the rate of change is a given. In Bitcoin they are constantly increasing with a formula which is if you want in the DNA of Bitcoin has been entered into the Bitcoin code by those who made it and will reach 21 million at some point if we remember correctly 21 -22 somewhere there at some point and it will stop growing it makes sense it's like gold gold we do not know what is the amount of gold on earth a part of it has not been discovered yet is still in the earth but we can imagine it to see the earth as aliens so gold is finite that is why gold could never be a currency because the amount of money circulating in the economy it can never be fixed if it is we are destroyed.
why ? Take for example what happened during the pandemic during the pandemic all the shops were closed closed handicrafts closed factories closed closed closed if states could not make new money out of thin air to distribute it to shopkeepers etc imagine , we are already troubled after the pandemic financially imagine where we would be like we can do our critique and you know I do it no problem and the European Central Bank and Staikouras(greek politician with Nea Dimokratia ) and Mitsotakis (Prime Minister) etc but if these interventions were not made through the creation of new public money to replace the economic activity that occurred during the crisis whether this is the crisis due to a capitalist crisis of collapse recession as in 1929 as in 2008 as in 2010 or it's because of the pandemic if you can not through a political process to assimilate the amount of money the slightest economic crises or health crises the cost of the crisis is also increasing passes the stratosphere is hurled if we had Bitcoin I would say it differently right now we would have an unemployment rate of 30% because its quantity cannot be varied is by definition recession money and oligarchic money. I move on to another chapter I will talk for another 4 minutes War, Ukraine The West blocks access of the central bank of Russia in the international payment system of the central banks of the rest ..of the West controlling the global payment system It is unique that what is done has never been done before That's why I made the comparison with the Crimean War where it had not been done then it had not been done in the period of the Cold War had not taken place during the Vietnam War that many more people were killed than are being killed today not that the deaths should be compared quantitatively between them but let us not forget What do you think will be left in the history of this war in Ukraine because unfortunately this war like all the previous ones will be forgotten the deaths the injuries the misery will be forgotten we have a tendency to forget them and move on to the next chapter What I think will not be forgotten is the impact that these sanctions will have. in the digital money of the future and how it is affected the evolution of both technologies and monetary systems and in general of geostrategic and political conjuncture.
The central bank of China 3 years ago launched a digital public money which, however, is based on distributed ledger technology, I do not know what it is called in the end of Bitcoin. It was Beta tested 3 years ago, that is, it started to be used by 100 million Chinese citizens this digital state public algorithmic money. I have been dreaming since 2014 before 2015 of creating a payment system here in Greece which would be denominated in Euros but would be digital and owned essentially on TaxisNet (the Greek digital tax portal) in our digital system which supports the Hellenic Tax Office of the Ministry of Finance I was very interested in what the Chinese were doing I was also interested in Bitcoin. I was also interested in China's state-owned Bitcoin Well I tell you this is my point of view so it does not mean that I am right China's central bank was essentially building something like a huge digital highway.
Spectacular freeway because the technology they have invested in this digital Chinese money digital yuan digital renminbi is amazing is much more interesting than Visa or Mastercard's technology and even Bitcoin itself but it's like you made a huge freeway beautiful many lanes at once the railway to be more ecological a huge railway and do not move wagons on trains. Why okay they did beta testing with 100 million Chinese from last week on this digital monetary highway run $ 800 million a day which is the money that Russia receives by selling natural gas and oil in India to China and other countries using this digital freeway built by China. I think this will stay and after the war in Ukraine its impact I know I have and I tell you this that I discussed it with people in Frankfurt at the European Central Bank that I will not say their names because if I say them people will lose their jobs that he talked to me as you can imagine! are so panicked at the european central bank as well as in the federal reserve at the US Federal Reserve why ? they see that the future is there They want Lagarde wants a digital Euro Powell wants digital dollars Do you know where it stuck? and there I will close to catch the conversation They stuck in private banks. Which They will cut their throats if they dare to do what they did in China.
Why ? Private banks Deutsche Bank Societe Generale Barclays Bank of America City Piraeus and National bank of Greece have a monopoly exclusive relationship with the central bank have you heard about the quantitative easing that all these years Mario Draghi and now Lagarde are printing money supposedly to move the economy what does it mean I print money they do not print money it is not that they cut Euros on paper and give them by helicopter in the world I wish they did that I wish they do not do what they do These are the private banks I mentioned have central bank accounts You and I can not have a central bank account is it understood ? if you want to open an account you have to go to one of these bankrupt awful ones of ours at National Bank Of Greece in Eurobank in Piraeus at the central bank if you go and say I want to open an account they will tell you go my child from here on out But all the banks! the banks have an account with the european central bank like american to american british to british and what happens to this account like that? no real money comes in what you become is gives a possibility of overdraft The central bank in Deutsche Bank, that is, withdraws money from here like you if you go to get a loan from the National so 10 thousand where you had zero you suddenly see 10 thousand and it is your loan this is what the central bank in Deutsche Bank does only that does not give 10 thousand gives 10 billion so? Nice! (Smiling) and then there this bank lends to Siemens to Volkswagen they take the money go to the stock market and buy shares and this is how the so-called capitalist model works. What did China do to make this digital currency work? gave digital accounts to the citizens to these 100 million citizens why digital currency works like when you have a (Wallet) a Bitcoin wallet do you have an account with bitcoin essentially to have an account with chinese digital money you as an individual must have an account like that This is not what the bankers of the West want. because they will essentially lose their monopoly on their exclusive relationship with the central bank for think about it if all of us all as citizens of the eurozone you had a digital wallet with Frankfurt with the European Central Bank what would be the explanation given by Mrs. Lagarde that she prints money, she prints money .. she gives the possibility overdraft at Deutsche Bank and not at you; why give it to the banks if you want the economy to recover give 2000 euros 1000! 200! in the digital wallets of the citizens! to go out to spend and pay off their debts and everything You see who she is .. because they panic! because they want to introduce digital euros but they do not know how to tell Deutsche Bank Because Deutsche Bank is essentially their boss, Lagarde is not Deutsche Bank's boss.
Deutsche Bank is Lagarde's boss and has a problem with why on the one hand the private banks held their hands like that not to produce digital euros on the other hand they see China to have put forward for good the digital Renminbi the digital yuan which not only Putin uses now you will see here we are here you are and here I am A German businessman which begins and sees that when money in dollars or euros they are not completely guaranteed you can lose them like Putin lost them Putin lost $ 800 billion $ 900 billion which was frozen by Biden and you and business in fact as a German with Shanghai you buy things you sell things and China tells you I'll give you a digital wallet if you want to deal with yuan why not take what it costs you? Zero! You can buy you can sell things in China like that! It is digital in an application on your mobile You are German in Stuttgart and you have the Chinese digital money here (holding his mobile phone) so you have sold something in China it is coming to Yuan which you can convert into dollars at any time you can buy fertilizers from Russia without bypassing Biden's sanctions and the Europeanb Union I believe this war with new technologies with new geopolitical change that we feel all these days more and more the way in which electronic platforms Amazon like Google like Ebay RbnB Uber Netflix Spotify they essentially set aside markets and replace them with digital platforms we are on the verge if we have not already entered in a very dystopian post-capitalism for me what we live is not capitalism I call it techno-feudalism and I write a book about it I wanted to warm you up a bit with this presentation to hear your questions your views your positions We started! Thank you. (Applause) - Good evening We talked about "a wording about this we heard "You said that this Chinese highway was created In addition is given the opportunity for any oligarch in Europe to move -And citizen not only oligarch And you give -Exactly And we see the attitude of America and Europe Right now Desperately trying to bail out private banks Which are supported by central banks And the victims of this struggle of the banks are the citizens themselves Through the energy crisis and rising prices We are therefore sacrificing the citizens themselves in order to secure our system so that we do not adapt to the system that prevails in China; And how a system that leaves them alone citizens to have a central bank account It is oligarchic and Supports the new capitalism and the new techno-feudalism.? - You will say the last one again. This is what you mean about China?
- Yes to China - Say the last part again -Since the system gives freedom to the citizens themselves Have a central bank account How the People's Republic of China and the general banks over there They have a more techno-feudal view of things more capitalist. - Fine at first yes The answer to your first question is a huge yes, This is what they do. Lets do not forget that in 2008 A huge bubble of Private Money burst Because what has been happening since the late '70s is that Wall Street and the City of London And participated in this feast and German banks and French banks Greek banks began to bet And they were making more and more complicated bets Which were debt based bets I mean to give you an example I hope I do not tire you with this but it is interesting Say it it does not have to move on to the next subject Look, take Kostas like that Costas has a million dollars we say now And he is thinking of going to buy shares In a company that thinks it will have a 20% increase within a year the value of the share Nice but he is also scared what if it does not have and if he has a 50% drop I will lose $ 500,000 What they did in the beginning was buy the shares and they also pay an amount to insure the losses not be more than a certain amount That is, you take a million shares and you give 100 thousand To buy the so-called option the option to sell these shares at a minimum price of 800,000 So the maximum you can lose from one million to 800,000 is to lose 200,000.
So if you win you won and the money you paid the 100,000 to get the option you lost as you lose when you have insured your car for an accident and you have no accident you lose the insurance premiums. So but if you have an accident at least that way you reduce your damage This and This sounds very logical. But then they started thinking new things on Wall Street E.g. Instead of buying an option to sell I will buy an option to buy So you take a million shares and you give another 100,000 to buy the right to buy another million at the original price. So If the value of the shares you bought goes up, you get 20% 20% 200 thousand on one million of the shares you bought And you have an option to buy another million At the lowest price last year So you can sell this option on it's own And you profit... you give 100,000 And you profit 200,000 from this option And then you think why to buy shares I will only buy options So But if this option forces you to buy it And the price does not increase decrease And you have bought many such options for 10 million So You have 10 times the damage And what happens in a period when the stock markets went up and they went and bought options They profit huge percentages because it was like an escalator going up So you went from one escalator to the next With huge profits And the more you borrow, to buy options So you have a betting debt combination And after what they did, was use these bets and cutthem in pieces They made new financial products called cdo This process was also called Financial engineering If that was possible, I had students then were telling me "I wanted to go and become a financial engineering" I said I would cut off your head But they did They made huge sums of money and made fun of me , ok my story When I was at university outside Greece At some point all these products started working to money Why no one knew.. it was so hard ..you realised from
what I told you I told you the simplest. Sounds a little complicated This in the ninth is the complexity of each package of each product That is, those who made them had reached the point of not understanding what was inside. Those who made them Why they also made using algorithms And the opacity the fact that they did not understand What was inside it was giving them even more value because everyone had decided that they can not understand what they have inside So they were thinking simple [ nicely if the price goes up their price is just that we care about only interested in their price going up so we buy it and their price was going up even more And that was now private money. This collapses in 2008.
the bubble bursts and all the banks go bankrupt of the West But all! With the exception of Goldman Sachs Okay let's not go in because Goldman Sachs is the only one that did not collapse Because he knew and pulled before and let everyone else collapse Just like Rockefeller He was the only one who did not went bankrupt in 1929 Goldman Sachs was the only one that did not go bankrupt but everyone else went bankrupt. European Greek British American So No Chinese Why had not participated in this scheme And what do governments do then April 2009 gathers the G20, the G7 and G20 in London and decide that central banks will print as much money as needed to rescue them bankers Not only banks and bankers Under the condition of austerity for the vast majority of citizens And this combination comes what happened here in Greece In 2010 Banks were rescued Constantly Every few months we give more billions and more billions and billions with more austerity for the people , So what You say that citizens are sacrificed. In favor of the banks is not new It is done so and now. It is not just that the citizens are being sacrificed. Look and see the contradictions of capitalism America's own power is being sacrificed Because if America is strong and is a hegemonic country it is not because America's economy is now less than 10% of its economy world economy While it was 50% a few decades ago. The power of the United States depends on two things military power fact that it is based in 170 countries of the world Something has to do with strength of And even more important The dollar Which dollar is the unique reserve currency Which we buy even when we do not we want to buy nothing from the Americans That is the Japanese currency the yen You buy it Only if you want to buy a Japanese car That is you have to take euros to convert them into yen to buy Mazda Toyota Nice or on vacation in Japan This applies to everything currencies other than the dollar The dollar is the only currency that whenever you put gasoline in your motorbike Maybe the gasoline comes out of one Refinery belonging to a Greek From oil we got from Algeria Me ship belonging to a Colombian There should be no American in the middle And yet each Every time you put gasoline in your motorbike, the demand for the dollar increases for the reason that this oil is paid in dollars to get it from Algeria to get it from egypt Get it from saudi arabia Get it from Indonesia You have to buy dollars To buy oil So This Dollar Monarchy Is America's Great Power But you see now that in the context of promoting oil interests companies from texas, arms manufacturing companies that currently party The German Chancellor announces that he will buy 100 billion weapons From whom he will buy them from the Americans They also want the war to continue they want peace the last thing they want right now is peace Sell LNG liquefied natural gas Now They have signed a contract last days for the next decade From Texas. But at the same time They give an advantage to the Chinese digital currency The central Bank of America is terrified of this in my opinion But what to do Must put them with the military industrial establishment with the oil With them Pentagon CIA hawks who want to control fully Europe and have succeeded This war in Ukraine was Extremely useful For those in Washington who wanted to control and humiliate Berlin primarily And Paris And they sacrifice the prospect of maintaining the empire of the dollar So it is no coincidence that there are people with whom I I would not like to be in the same room Example Henry Kissinger Thomas el friedman New York Times columnist So the people who had come out Kissinger He is a war criminal. He brought us the Kissinger junta
At least Ioannidis is responsible for the Cyprus issue Kissinger is a war criminal And yet we say Ta same things For Ukraine today Why why Kissinger looks ahead As an old man he sees far what they are doing today It undermines the dollar's empire Serving the interests of the industrial oils of the Pentagon and so on. We are in a situation where the ruler The United States of America is becoming more and more powerful undermining its medium-term validity Which Means That Your Generation Will faces a much more uncertain future. Now you said you asked me something about China too Look China is an ongoing experiment On the one hand you are right It is a form of feudalism With a lot technology Digital Evolution On the other hand And I will say this as a Democrat If I was living in Beijing I would probably be in prison now To make it clear like this But I must say that at the local level At the regional level We have one interesting flourishing of democratic processes in China Right now We are talking. Regional governments are overthrown through elections
elections with no parties that come down But people come down For our governor say And the chosen one of the Communist Party loses And is replaced power It's interesting this You see Let's say the Big Chinese's corresponding Silicon Valley Ali Baba and all those companies that are the same important with Google, Apple,Microsoft, and others China puts them Both feet in a shoe You see the Evergrande a huge contractor company Who build houses by the millions And where it is essentially a feudal company that builds entire cities He builds them, exploits them, rents them and so on. His government Zi deliberately led her into bankruptcy And I even read a speech he gave and I was really surprised by what I heard He said that The future imposes on us The transfer of 20% of GDP to the working class In order to have this transfer of 20% of GDP in the working class There must be a corresponding reduction of 25% of the percentage of GDP that goes to investment Why most investment go to real estate This is a very advanced thought It's one totalitarian regime But which leaves degrees of Freedom Unless in risk the same And you see at least that as far as money is concerned democratizes money. I do not want to waste time on other shows but I think of the democracies and authoritarian regimes that experts say I am now reading Slavoi's book first the tragedy and then the farce First as a tragedy and then as a rank And he writes in a point that we also had 2008 but in our mind in the climate change In the need for water and food for African children But with what struck The great crisis Suddenly the democratic people of America Obama Bush I do not remember who he was then they suddenly said we have to go to this state of emergency In the state In this business so as to power the banks And now we see what you say is the regime of China that it is trying to provide its citizens with 20% in order to grow And keeps them all low the feudal lords and all the oligarchs that can emerge through the market So we see that the regimes which are accused by the West as authoritarian They have a vision of caring for and improving the lives of many I mean those who are neoliberal democrats. They work in one in a regime that utilizes all the components of the economy for its profit This is true. Yes, I agree with the Serb, of course I can not but to agree with Slavoi It will fall fire to burn me As you know He will call me and he will curse me he is right and it is a good book I must say that I am glad that I do not live as my parents did at a time when the secret police are diving at you at all times and you disappear and I do not live in a similar regime in China today because in China you disappear in the middle of the night I must state this. On the other hand, we here live in authoritarian regimes Which are just a little smarter In the way they exercise their Despotic authoritarian power They let us talk We do not go to the Gulag But what we say is not heard And when heard Like my friend Julian Assange Exterminate We must not forget this.
Look, I think we have to be absolutely critical Both in the regimes we live in As much as in China-type regimes In terms of authoritarianism human by human But it is true that this capitalist feudal model we have here It is in much greater crisis than the Chinese model Which makes it even more reclusive What a revanchist towards a lot of people Even more indifferent to the hardships of many people the savior save himself is here For the oligarchs And in fact, you see, let's say electricity in Greece today. Mytilineos is incredible. Peristeris Vardinogiannis It is unbelievable they are not interested in anything They do not even care about their legalization Zhi in China Who I said would put me prison me personally I speak on staff ZI is interested in its legitimacy, he is interested in increasing the income of the working class Because he knows that the possibilities of the Communist Party to remain in things thus conforms is proportional to the acceptance it has of the working class Here we have a regime in the West that no longer cares misery of many Because they have found a clever way To manage it When many are impoverished beyond a certain limit Take America Working Class For example There is nothing worse than being an American proletarian The life of the American proletarian is much worse of the poor Indian The poor Indian has much less money but has a dignity Has a social web Has a village Has culture has traditions If you are in Milwaukee and you have lost your job you live as per hourly wage Amazon Your life is so much worse than being a poor Indian villager. so what do you do there how do you express the indignation of the people vote Trump become racists want to build wall between America and Mexico join the neo-fascist wing as was the case in the 1920s and 1930s in Europe and then comes the same system that created their misery to appear to us in the most liberal to the most middle class etc in America to our counterparts as those who will save them from the fascists from Trump Biden did not come out, Trump is a product of Obama, whose vice president was Biden This is it, it is a product of the transfer of wealth by many on Obama's wall street he had promised them that they would see a white day and what he does transports everything to the wall street all the wealth and condemns the people who voted for him and his own people, Obama to growing inequality growing poverty and growing police violence Obama did this to Biden nicely Trump comes out which is the toxic reaction the neo-fascist reaction to this impoverishment and Biden emerges as the savior of the system from the effects of their own policies This is worse than what is happening in China for me since you asked me. Can we wait for something like that to happen in other countries around the west world becouse we can see that in greece unfortunately left wing is and other parties are created and take advantage people in great need and the right wing ...is it a problem We also see the percentages in the polls that have been coming out in recent months..going to more (...) I think the last 10 years have proved that what you say Macron has already done, why did he become president? would anyone ever vote for Macron? Macron became president with 22%.
and I would vote for him in the second round so that the fascist Le Pen would not come out Merkel's Merkel's why she left after heavy and branches recognized; left because she presented herself as our savior from the beasts she created either it's golden dawn here or it is (alternate deutsche) in germany so it's vox in spain exactly what you describe has been happening for 10 years! As far as Greece is concerned, here we had an opportunity in 2015 and the only culprits for the fact that we are re-entering this process it's us and i put myself in the middle. Another, another (Ask a question) (Sorry i can not make out what they are saying so i skip) Come on! Good question! Look is not only can not bypass is will eat them dark darkness for thinks we are a bank-centric Europe banks when they do well have power because they do well when they go bankrupt they have power because they go bankrupt and force the European Central Bank to cut money to save them so that's they want everything theirs! and you know Americans have a very nice expression and useful follow the money look at who has funded the channels and the political parties the banks and some oligarchs living off the banks this is the power we have are their bosses in other words is there a chance Christine Lagarde will survive if christine lagart has the apprenticeship of the holy spirit or yours or mine and wake up tomorrow morning and say we will do it like the Chinese we will give all citizens digital wallets the next day he will not be president of the european central bank You will see. Something will happen in her life and she will not be the president of the European Central Bank She was already being held in France for criminal offenses That's the question, now will you allow me to make a short parenthesis I said I will not speak politically but some people asked me why you left university and got involved in politics so it's not a matter of having good ideas here good ideas we have good ideas there are and it's not even a matter of convincing Christine Lagarde that our ideas are good she knows! the issue is the overthrow I close the party political parenthesis. Other! Closer to the mouth the microphone here's the listener's question(unable to understand due to volume) When you say it is liquidated what do you mean to use it -to use of course Of course Definitely use it here the the listener's question here Let me not tell you right away that they are already thinking about it they are already planning it because money is money do not forget that half of American industrial production takes place in China why not use it? Look Better or worse from which point of view I want to see it happen because I want the story to run, I want it to move forward to hurry because what we live we want to see change on the other hand things can get much worse if we have a break of globalization right now in two or three pieces, that is, from where we had one world capitalist system globalized capitalist system with russia inside with china to Break a Chinese-Russian-American-European and a third that is inside India I do not know what the 2nd or 3rd if it breaks in 2nd or 3rd and now the competitions between these blocks are becoming more intense there is also the danger of going into a new form of world war type I not second because what was the first world war you had such peripheral forces which were almost in a state of self-sufficiency each in relation to the other and they were hated for their living space and you have the first world war something tragic can happen there is no guarantee so we do not have to just wait we have to ask things listener question here Look We are active all over Europe because of exactly what you say because the time has come for progressive Europeans to copy the fascists and the bankers because bankers are internationalists bankers are deeply international. So They Do Not Distinguish The Greek Banker With The German Banker With The American Banker With The Egyptian Banker With The Brazilian Banker It's one thing It's a group, The Fascists are the same as the Fascists The bolsonaro with Trump with Lepen the michaloliakos with one ..Favorites
So it's time for us all in Europe to unite and that is what we are trying to do With Diem and the rest And in this context we suggest specific things We also proposed in the European elections of 2019 for digital payment systems Pan-European National Regional Neighbors In fact blockchain-like algorithmic systems This technology is on our side We could do wonders. The Eurobond looked at the Eurobond what it's That Debt E you can not have a common debt if you have a common currency When you have a common currency and you have no common debt you have this fragmentation You have debt jails like Greece You have stagnant money like in Germany You have the complete irrationality We have in the European Union for this Biden looks at Europe and laughs The same and Putin so Putin and biden have something in common They see Europe and laugh Because we are ridiculous we are ridiculous continent Continent united Europe tells you Which divided Europe could not exist Go Next Question here It's not possible so look now you are forcing me to speak politically , so If you see our party on the day25 is part of it Pan-European diem25 And when we say piece it is not just that we are contracted it is one thing That is we all make decisions together the Germans the Portuguese with the French We are not so many We are not a huge movement But we try to show Exactly what you say Where is the future? The future is in a transnational but also internationalist Transnational not international Transnational That is when you are a Member of our movement in Germany you are also a member of our movement in Greece Germans vote for the policies that we bring down in the Greek Parliament We vote for the policies promoted in Germany Unless we create a transnational political movement that demands the obvious There is no hope The truth is that we are far from succeeding and we should try. There is no alternative An alternative is to raise our hands up And to surrender this is not interesting We do not have a good time with surrendering We at least Question here The west! United States of America and Europe ! yes Obviously yes is already done The Indians have already done that right now they are selling things to them Russians through China's digital currency And Russians to Hindus Yes Question part here Look at the sanctions they hit at different levels Do not lose the big picture Let's say for example now they have a huge problem with their planes The passenger planes are boeing If they do not get spare parts What will happen to their planes They have these sanctions are very harsh they have an impact Just The West's ability to control cash flow will decline in the medium term More and more precisely because they threw out the central Bank of Russia.
Question here You are right but look to see the problem that the Chinese have The Chinese do not want to go so well They are afraid of success you know why they have 3 trillions of American bonds in their hands Hypothetically that they could pushing a button and America was disappearing They would lose their savings No want the dollar to go bad the Chinese want to break the monopoly of the dollar system I do not want to see the dollar to disappears They do not have such warlike perceptions towards The United States understands that their own interest is inextricably linked to the interest of American capitalism. more rational In the way they handle this thing The But the United States has much bigger contradictions between them and there is no one to command As I said before But the interests of the military Industrial Complex But not its interests Wall Street But it's the interests of the oil so but it's congressional Pentagon It's unbelievable how America manages to be hegemonic And at the same time as to be scattered, If you see even in the junta that you are very little ones to remember and know 1967 When the coup took place here So. There was a CIA staff that worked with the colonels and they planned the coup that took place. But there was another staff. American who did not know about the first staff that worked was the pentagon and the State department of the State Department that worked with the King and generals to stage a coup. And when it happened to the colonels the others said What happened guys we already fired it No he says you did not fire it you fired it the other staff It's the conflicts In the meantime to listen to His people State Department Talking About the CIA Like Talking About Putin And The CIA Talking Despicably About The State department China is much more organized.
Question here I have to say yes I do not like the European Central Bank The European Central Bank never said that They did not care The European Central Bank central bank is an executive body He closed our banks 15 Why did I tell her yes Draghi told me and he and I believe he did not wanted he did not like This thing. What happened is this To be clear Since 2000 1998 to be exact Until 2008 What did Greece contribute to this miracle called the eurozone? What we had to offer was a question. which most people asked Why they put us in what they wanted What we produce we do not produce anything We said you were left because you were Right You were the center The answer is We had very low private debt And That It was a huge incentive for German private banks to join the euro Why private banks in Germany have always had a long history problem a timeless problem They had money I could not borrow Because when you are in surplus you produce Volkswagen Mercedes refrigerators Propellers of huge ships in Korea and so on. You constantly export. You export.that means money is coming from everywhere and goes to the private banks in Frankfurt Deutsche Bank banks and so on And there it stagnates Why the Germans also have savings They also have profits They do not need to borrow. The banker's nightmare who is money he can not lend Stagnant money is the banker's nightmare of having money that is not his own's other people's but to lend it to someone So because there was so much money supply in Germany the price of money was too low to have an oversupply of potatoes The price of potatoes is low So Deutsche Bank did not win by lending to the Germans and did not find Germans who they wanted to borrow And if he found they were not willing to pay serious interest rates They see here we are hungry We are For Volkswagen for refrigerators for vacation And we had an amazing thing we did not have private debt You are small you do not know In 2000 no one had credit card No mortgage They had their house Okay crooked bad lame poor It was theirs though And they did not owe For a Deutsche Bank banker Someone who does not owe and has his own house It's their urn Come here my child Come here to I will lend you You will have your house secured And you will lend Before 2000 they could not do that Because we had drachmas And I tell you that if it is devalued the drachma how will they give me a mark But when we enter the euro it tells you here they are This is them !They have a house For guarantees For a guarantee They have no debt and they have and euro Our children And they started coming to me and many others who went Credit cards were coming In the mail he had not asked for You did not ask for it, they came to us and said start using it now You have 5,000 to use immediately. This was where the money came from
So basically what was happening Sell the Volkswagen And give you the money as a loan to buy it This at some point will burst will not burst Not them but he was interested And when I had asked the question then I had opposed Greece's entry into the euro I remember asking a German Banker No you tell me you give you give you loans At some point it will burst And what will you do now We will take their houses You have heard about Hercules About the reds loans They do not do This is done. But when the bubble did not burst the way no one expected Merkel did not believe it And never understood Why they thought you borrowed a million If the bubble bursts you will lose 1 million Not so You will lose 1 trillion Why Merkel and all the others did not count all these bets The options I told you before So they get into a state of panic What happened at 10 was that the got into a state of panic banks start to collapse German Banks the French Banks Anyway Due to the bets they had placed in America, the cannon of the Greek Comes that owed to Franco-German banks 200 billion And I could not raise it Merkel had already given 600 billion to bankers Before the Greek debt burst And then they tell them that you have to give so much more because the Greek debt erupted She says guys, it's not possible, I passed the Bundestag from the Parliament, once I can not go again Find me a Formula And the formula they found for her Do you know who the Solidarity with the Greeks was? The Greeks went bankrupt Now no our Greeks These cicadas of the South Who play Bouzouki and sing and do not work So this image they created and created deliberately But what to do the European solidarity we owe them And they then sent 110 billion with Kastelorizo in May 10 To Papandreou and Papakonstantinou And all that as they went back to the Franco-German banks ,To pass this from the Parliament but For Merkel to pass this from the Parliament A loan in which was necessary for the Franco-German banks so It was a bailout for their banks it was not for us Lying to MPs her own So