

"We Don't Need Central Banks" w/ Richard Werner (WiM581)
57 snips May 9, 2025
Richard Werner, a Professor of Banking and Finance at the University of Southampton, challenges traditional views on central banks and their role in the economy. He argues that decentralization and local banks can lead to more genuine economic growth. The discussion delves into the historical evolution of currency, the effectiveness of interest rate management by central banks, and advocates for a community-centric approach to money. Werner also critiques the concentration of wealth and promotes Bitcoin mining as a viable strategy for fostering entrepreneurship.
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Central Banks as Cartels
- Central banks originated as cartels of big banks, not as essential institutions.
- They often exercise power secretly to create recessions or asset bubbles benefiting few.
The Ancient Tally Stick Money
- Tally sticks were an ancient wooden money system with carved notches representing amounts.
- This system allowed secure, verifiable tax payments in medieval England.
Interest Rates Follow Growth
- Empirical research finds that interest rates positively correlate with economic growth, not negatively.
- Central bank claims that lower rates lead to higher growth are unsupported by data.