2025-07-28: Richard Werner Exposes the Evils of the Fed & the Link Between Banking, War, and the CIA
Source: Tucker Carlson Interview with Professor Richard Werner
Key Topic: Banking system revelations, money creation, and economic manipulation
Executive Summary
Professor Richard Werner, author of "Princes of the Yen," reveals explosive truths about how banks actually operate, how money is created, and how central banks deliberately manipulate economies. His book became #1 in Japan (beating Harry Potter) but was systematically suppressed in the West, leading to CIA surveillance.
The Great Banking Deception: Banks Create Money Out of Nothing
The Three False Theories of Banking
Werner's Revolutionary Discovery:
"Banks are not financial intermediaries. Banks are special. They have a unique power that no other player in the economy has and that is the power to create money."
The Empirical Test:
"I was the first to do an empirical test of the three theories of banking... When you take out a loan, the money that you're given as the borrower didn't previously exist. It is net new purchasing power that is being created and added to the money supply."
The Shocking Reality:
"Any bank creates money. When you take out a loan, the money that you're given as the borrower didn't previously exist... Banks create money out of nothing."
Why Economics Has Failed for 200 Years
The Fundamental Problem:
"Macroeconomics has been a failure for 200 years. No progress... There was a study in the journal of economic perspectives in 2019 by two Stanford University professors about progress in economics and they mention that oh sadly we haven't had any progress in macroeconomics for at least a century."
The Missing Piece:
"The solution to all this and why economics has made no progress is bank credit... Banking has been frozen out of economics for a long time. There's no banks in economic models and theories."
The 2008 Crisis Revelation:
"When the 2008 crisis happened... the honest answer of all the professors of economics would have been well I'm sorry I can't answer that question... We have no banks in our models. So, of course, I can't talk about banks."
The Three Scenarios of Bank Credit Creation
Scenario 1: Asset Purchases (Destructive)
"When banks create credit for asset purchases... you get asset inflation that by the way will always lead to a banking crisis... they're creating a lot of money and they're pumping it into the real estate market... Real estate prices are pushed up."
Scenario 2: Consumption (Inflationary)
"When banks lend for consumption, consumer loans... we get more consumer spending. But have we increased the quantity of goods and services in the system? No. So this creates inflation."
Scenario 3: Productive Investment (Beneficial)
"When banks create credit for productive business investment... it's actually the driving factor for growth and prosperity... you get very high economic growth without inflation without asset inflation."
The Deliberate Destruction of Japan's Economy
The Bank of Japan's Intentional Bubble Creation
Werner's Shocking Discovery:
"The Bank of Japan created the asset bubble of the 1980s on purpose. And I could even show that it was intentional... they've admitted that was the goal."
The Motive:
"Why did they want [a massive recession]? In order to blow up the successful system? Japan was far too successful. It had to be destroyed."
Foreign Influence:
"The one country that was most unhappy about Japan was the United States of America... the central bank was used essentially as a traitor to blow up the system."
Banking Structure and Democracy
The Connection Between Banks and Political Power
Werner's Key Insight:
"The fewer sources of bank credit you have, the more centralized your society is, the more control there is in a smaller number of hands, the less democratic your country is."
Small Banks = Democracy:
"What we found in the study is... Big banks want to do big deals with big customers... Who lends to small firms? Only small banks... Small and medium-sized enterprises employ 65-70% of everyone in every country in the world."
The Fed's Bank Destruction:
"The Fed killed 10,000 banks in the 30s... Central banks want to consolidate and reduce the number of banks but the more banks the better for an economy for the country for the middle class."
The Historical Banking Fraud
From Goldsmiths to Modern Banking
The Original Fraud:
"The goldsmiths then realized next, well, hang on, maybe we don't even need to lend the gold... So what happened was the goldsmith loan contract signed... Here's your deposit receipt... did this person the borrower when they walked to the goldsmith, did they have gold with them? No. But they're leaving the goldsmith with a document that confirms they've deposited gold... that's fraud."
The Legal Framework:
"Banks don't take deposits and banks don't lend money... At law, there's no such thing as a bank deposit. It's simply a loan... We lend to them."
Suppression and CIA Surveillance
Media Censorship in Japan
Corporate Pressure:
"Our advertisers... it was our biggest advertiser and told us Richard Werner can't be on this show... the bank had to say that because the central bank asked to do so."
The CIA Warning and Publisher Blackout
Direct Threat:
"I got the call from the US embassy... there's a senior person from the state department who wants to arrange a meeting with you... when we met, the main message was, you know, the CIA is watching you. That was the message."
Complete Publisher Suppression:
"After that visit all the US publishers sent back their polite letters turning down my book. I mean imagine this is a book that was the number one bestseller in Japan."
The Pirated Translation:
"Her job is to translate it back into English... it was one of the major places in Japan that are considered official... it was clear there's somebody outside Japan who wants to read... the translation is circulating in Washington."
Publisher Intimidation:
"The first thing he said when he saw me is Richard thanks for sending me your book I read your book it's the best business book I've ever read... Of course, we'll publish it... Two weeks later I was back in Tokyo. Email from this guy... Unfortunately, we can't publish it."
The Greenspan Encounter: How Fed Chairs Are Silenced
Werner's Direct Confrontation with Alan Greenspan
The Memorable Meeting:
"Richard Werner, credit creation, the paper on Japan. Yeah, I read it twice in the economist and then the actual paper... would you venture to comment on my paper?... Turns out and walks away."
Greenspan's Hidden Knowledge:
"I looked up Greenspan's publications... how many times he's used credit creation... zero never... but he was playing ball this is a taboo he's never used it."
The Pre-Fed Truth:
"I discovered there's a book edited by Ayn Rand and he wrote a chapter in it in 1967 when he was not yet at the Fed... about credit creation and how gold is a much better way to run the system because once you give central banks this much power they will create too much credit."
The Silencing Pattern:
"He criticized the Fed for creating the asset bubble of the 1920s in the US and then the great depression in the 1930s... He then was offered a job at the Fed, but he was basically told never to talk about this again."
The Warburg Brothers: Central Banking During World War I
The Most Shocking Revelation About WWI
Brothers Running Enemy Central Banks:
"Who were the key players in the German central bank the Reichsbank which was 100% privately owned was somebody called Max Warburg... and who was at the pinnacle in fact was a founder of the Federal Reserve... was somebody called Paul Warburg his brother."
During Active Warfare:
"From 1917, the US and Germany were at war... The soldiers dying in the trenches and their economies organized as war economies at the pinnacle of the war economies are the central banks... Two countries are at war... these two countries are at war... but these brothers [were running the central banks]."
Post-War Survival:
"Max Warberg stayed in power at the Reichsbank. He was the one who signed off on Hitler's proposed head of the central bank even in the 1930s."
Werner's Revolutionary QE Proposals - Later Stolen by Central Banks
The Original Quantitative Easing (1995)
QE1 - Bank Bailout:
"QE1 is for the central bank when you have a bust banking system with all these non-performing loans the central bank just buy them up... at face value... You've solved the banking crisis. There's no more banking crisis... It doesn't create money at all. It just cleans up the bank balance sheets at zero cost to society."
QE2 - Forced Credit Creation:
"QE2 is the central bank buys performing assets from non-banks... the central bank needs just to buy real estate in Tokyo... and turn it into parks... it creates money. It forces banks to create credit."
Bernanke's Theft:
"Bernanke... implemented my QE1... he borrowed my proposal of purchasing the non-performing assets from banks he didn't credit me when he gave this speech."
Central Banking and Warfare
The Bank of England's War Purpose:
"In the very act law act of parliament the law founding it it says this institution... the purpose is to make war... the Federal Reserve was established... 1914 the year the first world war started... months before the war."
The Tax Connection:
"When you have these central banks privately owned central banks established... we'll issue money for you... and we'll lend you the money... how do we get our money back?... that's why taxes were introduced. The federal income tax didn't exist before the creation of the Fed."
The Interest Rate Myth Demolished
Empirical Proof of the Opposite Reality
The Shocking Truth:
"How many empirical data-based fact-based studies exist that demonstrate... we lower rates it leads to higher growth we raise rates it slows growth... none."
Werner's Revolutionary Study:
"What we found is that the relationship between interest rates and economic growth is the opposite of what they tell us... The correlation is positive and the causation... is from growth to interest rates... high growth leads to high rates. Low growth leads to low rates."
The Methodology Problem:
"This approach is particularly useful if you have a predetermined conclusion you'd like to come to because then you can actually start out with your preferred conclusion work backwards."
China's Banking Revolution: From One Bank to Thousands
Deng Xiaoping's Discovery of the Banking Secret
Learning from Japan:
"Deng Xiaoping... went to Japan... he said I have come... to seek the elixir of high economic growth... they told him... it's all about banking. Banks create credit and credit is needed for growth."
The Transformation:
"Once he found out the secret, the elixir of high economic growth, he went back to China and what did he do? He founded thousands of banks, small banks, local banks, regional banks, provincial banks, village banks, savings banks, thousands. There's almost as many now in China as in America. Almost 5,000 banks."
The Mathematical Advantage:
"Which system is better? Those five guys at the central bank trying to do this for 600 million people or the 5 million loan officers... China delivered double-digit economic growth for four decades... when you have 15% growth, then every four and a half years you double national income."
The Debt Trap System: How Banks Exploit Developing Countries
The Foreign Savings Scam
The False Narrative:
"They're told... you need to get you need to borrow foreign savings. The World Bank is willing to lend you some... who are the foreign lenders getting the money from? They created out of nothing."
The Moral Manipulation:
"They turn the culpability, the moral responsibility onto the victims of the scam... the virtuous people have just saved a lot of money. Well we know the savings rate is pretty low in the US if not negative."
The Banking Reality:
"Foreign money never enters the borrowing country... Barclays calls around South African banks... The South African bank will create that money out of nothing which is something South African banks could have done without the round trip abroad which indebts the country."
Economic Growth: A Statistical Illusion Created by Bankers
The Physics of Economic Growth
The Fundamental Truth:
"Ask a physicist who studies physics, what is economic growth? And they'll say, well, I don't know it in physics there is no growth... You can only transform energy from one state to another. Matter is neither created nor destroyed... So what is this economic? Well, it's economic growth... it's a statistical illusion created by statisticians."
The Banking Origins:
"When did this start? The way we calculate national income and GDP... it started just before the creation of the Bank of England. Why? Because the bankers were going to lend to England and they wanted to figure out what is the ability to pay of these people in England... to assess the creditworthiness of the borrower."
The Interest Rate Connection:
"What is GDP? It was created by the bankers to gauge the ability to service national debt... what is the interest rate you're going to charge? Well, you want to charge the maximum without blowing up the system... it is the same as the economic growth rate."
The CBDC Trap: Ultimate Financial Control
The Real Purpose of Central Bank Digital Currencies
Not About Digitization:
"What's actually new? You know, we've been using BDC, bank digital currency, for for half a century almost... What is new about CBDC? What's the C central the centralization? It's about centralizing things."
Breaking the Banking Contract:
"Central banks are about to break this old contract... The deal was central banks supposed to be specialized to stand behind the banks, back them up when needed, but not replace the banks... CBDC is the central banks opening accounts for the general public at the central bank."
Total Control Mechanism:
"The programmability is really scary instant compliance... they can then write the rules and they have the technology to enforce those rules... it's not really money. It's potential money. You have to apply. May I please use it to buy XYZ? Oh, sorry... your carbon footprint has been used up."
Assessment and Implications
Werner's revelations expose the most comprehensive deception in modern history - a complete inversion of how we understand money, economics, and power. His empirical proof that banks create money out of nothing, combined with evidence of deliberate economic manipulation by central banks, demonstrates that virtually everything taught about economics is deliberately false.
The Scale of the Deception
Complete Academic Capture: The systematic exclusion of banking from economic models for 200+ years, despite banks being the most important economic actors, reveals deliberate intellectual sabotage. Werner's discovery that interest rate theory - the foundation of central banking policy - has zero empirical support yet is treated as gospel shows the depth of the deception.
Historical Manipulation: The Warburg brothers running enemy central banks during WWI while soldiers died in trenches exposes the true nature of modern warfare - a banking operation where the same families profit from all sides. The revelation that central banks were created specifically to fund wars, with taxes introduced as collateral, reframes the entire modern state system.
Systematic Suppression: The CIA's direct intimidation of Werner, the complete blackout of his #1 bestselling book by US publishers, and the systematic media censorship prove these revelations threaten the core power structure. The fact that Fed chairs like Greenspan know the truth but are silenced shows the system's totalitarian nature.
The Control Mechanism Exposed
Banking = Political Control: Werner's proof that fewer banks equals more authoritarianism provides the key to understanding modern political systems. The Fed's systematic destruction of 10,000+ banks directly correlates with America's democratic decline and wealth concentration.
The Debt Trap System: The revelation that "foreign aid" is actually money created from nothing, designed to indebt countries and steal their assets, exposes the true nature of international development. This same mechanism operates domestically through asset bubble creation.
CBDC: The Final Solution: Central Bank Digital Currencies represent the endgame - total financial control where every transaction requires permission. This would complete the transition from market economics to technocratic authoritarianism.
The Path Forward
Werner's Revolutionary Solution:
"Every country in the world can have high sustainable equitable economic growth without crisis and without inflation... All we need is for bank credit creation to be mainly used for productive business investment and can be done and has been done."
The Key Requirements:
- Decentralized Banking: Thousands of small, local banks funding small businesses
- Productive Credit: Bank loans only for business investment, not asset speculation
- Democratic Control: Banking serving communities, not extracting from them
- State Banking: Public alternatives to break Federal Reserve monopoly
Historical Proof: China's transformation from one bank to 5,000 banks, delivering 40 years of double-digit growth and lifting more people from poverty than ever before, proves Werner's model works.
The Ultimate Revelation
Werner has exposed that the current system is not capitalism or free markets, but a sophisticated form of feudalism where a small banking oligarchy creates money from nothing and uses it to buy up the world's real assets. The entire structure - from academic economics to central banking to international development - exists to disguise and perpetuate this theft.
The Most Important Truth:
"We can have peace and abundance but we must address the financial system, the banking system and the best system is when you decentralize the power... power corrupts and absolute power corrupts absolutely."
This interview represents perhaps the most important economic education available anywhere - a complete roadmap for understanding how the world actually works versus how we're told it works, and most importantly, how to fix it.
Werner's Final Warning: The introduction of CBDCs would complete the transition to total financial authoritarianism. Stopping this may be humanity's last chance to preserve economic freedom and democratic governance.