George Gilder: Populist Revolt Driven by Currency Trading Controlled by Ten Big Banks

Economist George Gilder identifies currency trading as a major element fueling today’s populist revolt in America.

During an interview today with Breitbart News Daily host Stephen K. Bannon, the author of “The Scandal of Money: Why Wall Street Recovers but the Economy Never Does” adds that he thinks the current system may ultimately turn America toward socialism in a search for answers.

Gilder agreed that the average American understands that the system is broken and credited that understanding with the rise of the current populist revolt, most likely including the rise of Donald Trump as a Republican presidential contender. He cited currency trading as a key problem underlying the issue.

In a few days the Bureau of International Settlements is going to estimate the total amount of currency trading. The last time they did it three years ago and currency trading came out twenty-six times bigger than all GDPs in the world, seventy-three times as big as trade in all goods and services in the world and hundreds of times bigger than all trade in the stock markets – $5.4 trillion a day in currency trading and out of it, we don’t even get a measuring stick that can accurately value currencies. … Ten banks do 77% of all this trading and they can make money out of it but we don’t even get a measuring stick to gauge our savings, or expand our investments, or evaluate our opportunities.

Gilder’s concern is that the above system would turn America toward socialism.

Gilder also said today’s main economic models are failing. “You know a paradigm has failed when the Congressional Budget Office has to correct Gross Domestic Product estimates by $1.6 trillion this year and the International monetary Fund has to correct global GDP by $18 trillion.”

He also cited Mancur Olson, Jr. in saying, “Bureaucracies and regulatory bodies become an encrustation on a culture and stop it from breathing. At a certain point, you can no longer function.” Gilder pointed out that Barack Obama’s inability to find so-called shovel ready projects for $1 trillion in stimulus spending wasn’t because there aren’t projects that need to be done, but because of over-regulation holding them up.

Gilder also faulted politicians of both parties for not discussion deregulation enough. “I think deregulation is the great imperative of our time,” said Gilder, while calling for “deregulation of all industries.” He went on to point out that no bureaucracy of any sort remains effective for longer than ten years, calling for Sunset Laws to keep America’s regulatory structure current. “After ten years, every bureaucracy becomes an obstacle to progress and inapplicable to the problems it addresses,” said Gilder. “You’ve got to have sunset rules for bureaucracies.”

Gilder said that’s also true for the Federal Reserve. “It has now taken over the whole economy. We’ve had a covert socialist coup in America with the Federal Reserve, now essentially running the banks and through the banks, essentially regulating the entire economy.”

Breitbart News Daily airs on SiriusXM Patriot 125 weekdays from 6:00AM to 9:00AM EST. Hear the interview:


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