David McWilliams

So in a way, this is the push and pull approach.

So listeners, if you have suffered monetary economics, you will have suffered this view, which is that the central bank create the money and they push this money into the system.

What you're saying is that in actual fact, something much more interesting happens is that the central banks are pulled around

by the commercial banks who create dollars out of nothing with no permission.

And of course, we hear about all these guidelines and these Bank of International Settlements and this, that, and the other.

But in actual fact, the system is quite chaotic.

And just sticking with that idea before we go on to another fascinating part of the book and argument in the book is to what extent now does the existence of euro dollars.

So I think just to give the listeners a sense, there's about 12 trillion euro dollars out there created by banks who are not regulated by the Fed in a total American supply of dollars of around 20 trillion.

I'm thinking these are around the figures.

Now, what are the global implications?

for an increasingly globalized world where banks that are not regulated by the United States have been issuing dollars.

We saw the UAE last week.

We spoke with the UAE on this podcast very recently, about three or four weeks ago, rang up the Fed and said, you know what?

We would like you to open these swap lines with us because we're worried that we might not necessarily have enough dollars.

What are the implications for America of the fact that it has...

Well, I'm almost sure that's going to happen given the way things have gone in the last while.

But that's fascinating.

That's the idea of weaponizing the dollar, weaponizing the vulnerabilities of the system.

And as you said, attaching political and our geostrategic

consequences to the rest of the world needing dollars let's talk about the difference between currency and finance and again i know listener this might sound like a big jump but these are really fundamental parts of understanding the nature of money and you have delved into this you've gone into the weeds you've figured this out explain the difference between money and finance