Latest / The Paul Barron Crypto Show / Jerome Powell Commits To Crypto Banking!🔥U.S. Senate Hearing🚨

Transcript

Jerome Powell Commits To Crypto Banking!🔥U.S. Senate Hearing🚨 · The Paul Barron Crypto Show

• 0:07
  Speaker 1: Jerome Powell has joined the crypto army. Today we're going
• 0:10
  Speaker 1: to be breaking it down for you. Don't want to
• 0:11
  Speaker 1: miss this one. There's some good clips here. My name
• 0:14
  Speaker 1: is Paul Barrew. Welcome back in the tech path. I
• 0:15
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  Speaker 1: But check out coinbase right there. Let's get into it today.
• 0:47
  Speaker 1: I want to lead off Jerome Powell Senate hearing with
• 0:50
  Speaker 1: this clip to give you some insight to what's going on.
• 0:53
  Speaker 2: Take a look, you scrugged seemingly all mention of diversity
• 0:58
  Speaker 2: and inclusion from the Fed's website. You withdrew from an
• 1:02
  Speaker 2: international central bank group that shares information on climate related
• 1:07
  Speaker 2: risks to the financial system. You instituted a hiring freeze
• 1:11
  Speaker 2: that will limit the number of cops on the wall
• 1:13
  Speaker 2: street beat. I can see the immediate political appeal of
• 1:17
  Speaker 2: your strategy, but ultimately it will fail. Sure, Donald Trump
• 1:23
  Speaker 2: may be happier with you right now, but waiting deeper
• 1:27
  Speaker 2: into politics to please him over the long run will
• 1:31
  Speaker 2: burn the reputation and the independence of the FED and
• 1:36
  Speaker 2: put our entire economy at risk. I urge you don't
• 1:40
  Speaker 2: fall into these traps. I urge you to move more
• 1:44
  Speaker 2: rapidly to bring down interest rates, beginning with a meaningful
• 1:49
  Speaker 2: rate cut next month.
• 1:51
  Speaker 1: If you guys, remember Senator Warren has been on this
• 1:54
  Speaker 1: case for quite some time. In the big scenario here,
• 1:56
  Speaker 1: this was back in June of twenty two, and she
• 1:58
  Speaker 1: was trying to call for or the FED to basically
• 2:02
  Speaker 1: go in and get interest rate increases when the Fed
• 2:06
  Speaker 1: themselves was trying to avoid a recession, and of course
• 2:09
  Speaker 1: that was what Jeroal Powell and his band of merry
• 2:12
  Speaker 1: men were working on, and of course that has architected
• 2:15
  Speaker 1: somewhat of a soft landing. If you go to this
• 2:17
  Speaker 1: next clip, this will get into him talking about that
• 2:21
  Speaker 1: very issue and how they did it right and she
• 2:24
  Speaker 1: was wrong. Take a look.
• 2:26
  Speaker 3: Do you recall a year or two ago when inflation
• 2:30
  Speaker 3: was raging, Economists and other experts said that you were
• 2:34
  Speaker 3: going to have to provoke high unemployment put our country
• 2:40
  Speaker 3: into recession in order to get inflation down. Do you
• 2:44
  Speaker 3: recall that very very well? Are we in a recession?
• 2:49
  Speaker 3: We are not trade places right now with Germany in
• 2:53
  Speaker 3: terms of the economy.
• 2:55
  Speaker 4: No, I sure wouldn't. How about China, No, wouldn't trade places.
• 3:00
  Speaker 3: We have experienced a soft landing, haven't.
• 3:04
  Speaker 4: We Not for me to say, really.
• 3:09
  Speaker 3: Have we experienced a hard landing? Are we in a recession?
• 3:13
  Speaker 4: No, we're not.
• 3:14
  Speaker 3: I call that a soft land You deserve some credit
• 3:17
  Speaker 3: for that, Thank you. I don't know why you don't
• 3:25
  Speaker 3: take the credit. Everybody else from Washington d C. Does.
• 3:31
  Speaker 1: All right, So there you have it, a victory lap
• 3:33
  Speaker 1: over Senator Warren. And of course, one of the things
• 3:35
  Speaker 1: that continues to be a staple coming out of these
• 3:39
  Speaker 1: hearings is this whole idea of the Fed's censorship. And
• 3:42
  Speaker 1: of course we've shown this before, but remember the big
• 3:45
  Speaker 1: scenario here, and I don't know if you guys can
• 3:47
  Speaker 1: see it, but it basically gets down into the reputational
• 3:50
  Speaker 1: risk of the FED that all of this was driven
• 3:54
  Speaker 1: out of from the censorship. I understand if you're brand
• 3:57
  Speaker 1: new to crypto and maybe your brand new to our channel.
• 3:59
  Speaker 1: There a time when the FED was basically directing banks
• 4:03
  Speaker 1: to not allow you to bank there if you had
• 4:04
  Speaker 1: some sort of cryptoactivity, and that was a major problem.
• 4:08
  Speaker 1: Was called choke point two point zero. As it was real,
• 4:10
  Speaker 1: it happened. They just had a hearing on it. Go
• 4:12
  Speaker 1: back and check out some of our videos to understand that.
• 4:15
  Speaker 1: But this, of course is the scenario that is playing out.
• 4:18
  Speaker 1: And in this next scenario, Pal finally goes in and
• 4:22
  Speaker 1: flips the script. Take a look.
• 4:24
  Speaker 3: They're worried about their reputational risk. Would you think that
• 4:29
  Speaker 3: faire no?
• 4:31
  Speaker 5: I sure wouldn't.
• 4:32
  Speaker 4: I too, am troubled by the quantity of these reports.
• 4:36
  Speaker 4: It may be that this whole thing with reputation risk
• 4:38
  Speaker 4: needs to be thought about it. But I think this
• 4:41
  Speaker 4: needs a fresh look and I think it's time for that,
• 4:44
  Speaker 4: and we're going to do that.
• 4:45
  Speaker 3: Well, I've asked our chairman and he has agreed to
• 4:48
  Speaker 3: invite some of the CEOs of some of the banks
• 4:52
  Speaker 3: that have been the banking people, the CEOs, not their lawyers,
• 4:58
  Speaker 3: not their pr consult not their priests, them the CEOs
• 5:04
  Speaker 3: to come in and let's talk about this and find
• 5:06
  Speaker 3: out what the hell's been going on. Thank you, Sen Kennedy.
• 5:12
  Speaker 1: All right, So a lot of a lot of scenarios
• 5:14
  Speaker 1: playing out right now within the banking system. The good
• 5:16
  Speaker 1: thing is is that this reputational risk of the fat
• 5:19
  Speaker 1: is seems to be under control now. Senator Lummis and
• 5:23
  Speaker 1: Powell both actually agreed to this in this next clip
• 5:27
  Speaker 1: that gives us some insight to where maybe this is
• 5:29
  Speaker 1: going to go from here. Take a look.
• 5:31
  Speaker 5: Your staff has repeatedly stymied information requests from this committee
• 5:38
  Speaker 5: with respect to wyoming and digital assets. One of the
• 5:42
  Speaker 5: staff that's sitting behind you today, do you commit on
• 5:46
  Speaker 5: behalf of yourself and the Federal Reserve staff to comply
• 5:51
  Speaker 5: fully with all document demands issued by this committee in
• 5:55
  Speaker 5: a timely manner. Sure, do you commit to disciplining or
• 6:01
  Speaker 5: removing any staff that are found to have engaged in
• 6:05
  Speaker 5: d banking activity furthering Operation Choke point two point zero.
• 6:12
  Speaker 4: I can't make an open ended, committed to to remove anybody,
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  Speaker 4: but I will tell you that I am struck and
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  Speaker 4: my colleagues and I are struck by the growing number
• 6:20
  Speaker 4: of cases of what appears to be D banking, and
• 6:24
  Speaker 4: we're determined to take a fresh look at that. In fact,
• 6:27
  Speaker 4: I took the thing that you showed during the debanking
• 6:31
  Speaker 4: hearing when I saw that we were taking that concept
• 6:34
  Speaker 4: out of the manual that we've been using for for
• 6:37
  Speaker 4: account access for master accounts. We're just going to take
• 6:40
  Speaker 4: that out. We're not taking that out of the manual.
• 6:43
  Speaker 4: So I thank you for that.
• 6:45
  Speaker 5: Thank you, mister Chairman. My time, sup.
• 6:47
  Speaker 6: All right.
• 6:48
  Speaker 1: So that is a huge statement coming in from Chair Powell.
• 6:51
  Speaker 1: Is that one, they're recognizing that D banking in fact
• 6:54
  Speaker 1: did exist and in the quantity now that is starting
• 6:57
  Speaker 1: to surprise them. And two is that they're willing to
• 7:00
  Speaker 1: completely restructure that the way their way of dealing with
• 7:04
  Speaker 1: these banks is being constructed. So that's a huge, huge
• 7:07
  Speaker 1: win for Crypto, But in general, I think it's just
• 7:10
  Speaker 1: a win for Americans, for us to see a D
• 7:12
  Speaker 1: banking problem here in the United states coming in from
• 7:15
  Speaker 1: the Fed is absolutely terrible. The fact that they've accepted
• 7:18
  Speaker 1: it and realized that it was happening is big. Let's
• 7:20
  Speaker 1: go on to another point, and that is stable coins
• 7:23
  Speaker 1: versus cbdc's chair Palel thoughts give some thoughts on where
• 7:27
  Speaker 1: he thinks stable coins should be. Take a look.
• 7:30
  Speaker 3: Stable coins in particular.
• 7:32
  Speaker 4: We definitely support these efforts to create a regulatory framework
• 7:37
  Speaker 4: around stable coins. Stable coins may have a big future
• 7:40
  Speaker 4: with consumers and businesses. We can't know that now, but
• 7:45
  Speaker 4: it is important for the development of stable coins in it,
• 7:47
  Speaker 4: you know, a safe and sound manner and manner that
• 7:49
  Speaker 4: protects consumers and savers and all that there be a
• 7:52
  Speaker 4: regulatory framework. So we're you know, we see these bills
• 7:55
  Speaker 4: and we're in contact as we were in the last
• 7:57
  Speaker 4: Congress and trying to try to add our technical thoughts
• 8:01
  Speaker 4: and how to do this. And we think it's a
• 8:04
  Speaker 4: very constructive exercise.
• 8:07
  Speaker 1: I love his statement there, constructive exercise. One thing I'm
• 8:10
  Speaker 1: going to say here is that this is the chair
• 8:13
  Speaker 1: of the Federal Reserve, the largest central bank in the world,
• 8:17
  Speaker 1: and it is in a position right now where it
• 8:20
  Speaker 1: is essentially saying stable coins are good for the market.
• 8:23
  Speaker 1: This means it's good for the US dollar and the
• 8:26
  Speaker 1: potential of stable coins being propagated around the world and
• 8:30
  Speaker 1: a lot of emerging markets, etc. That are going to
• 8:33
  Speaker 1: eventually start to convert more and more to the dollar.
• 8:36
  Speaker 1: So he understands this. This is a very good scenario
• 8:39
  Speaker 1: that props up the US dollar and it's mastery I
• 8:42
  Speaker 1: think in the economic side of it of where stable
• 8:45
  Speaker 1: coins could go. So a lot of opportunity here. And
• 8:48
  Speaker 1: the key here is whether or not CBDCs would invade
• 8:52
  Speaker 1: on this turf, because this is the big question everybody asks.
• 8:55
  Speaker 1: Jerome Powell answers that question right here.
• 8:58
  Speaker 6: Something that concerns me a lot is the idea that
• 9:01
  Speaker 6: we would even look like China in any way. So
• 9:05
  Speaker 6: can I have your commitment that, as long as you're
• 9:07
  Speaker 6: the Chairman of the Federal Reserve System, that we will
• 9:10
  Speaker 6: never have a central bank digital currency. Yes, thank you
• 9:15
  Speaker 6: for that. I think that's extremely important. It makes me
• 9:18
  Speaker 6: very happy to hear you say that.
• 9:21
  Speaker 1: Okay, that's a rarity is actually getting an answer from
• 9:25
  Speaker 1: some of these people who go on there. I like
• 9:26
  Speaker 1: the fact that Chair Palace pretty much said, yeap, not
• 9:29
  Speaker 1: going to happen. That gives more i think succinct power
• 9:33
  Speaker 1: to what's going to happening happen with the potential of
• 9:37
  Speaker 1: central bank and the comparison of how this is going
• 9:39
  Speaker 1: to pair up with stable coins. So all this very
• 9:41
  Speaker 1: good for crypto going forward. Now, the thing we've got
• 9:44
  Speaker 1: to be looking at is we've got another hearing that's
• 9:46
  Speaker 1: taking place and kind of zoom in on that. This
• 9:48
  Speaker 1: one right here is the Federal Reserve Semi Annual Monetary
• 9:50
  Speaker 1: Policy Report. Yes, there will be some things here again
• 9:53
  Speaker 1: Chair Powell will be under the kind of the under
• 9:55
  Speaker 1: the guise of what's going on in Congress. But the
• 9:58
  Speaker 1: good thing is it's going to give us some more
• 9:59
  Speaker 1: indication of how the Fed could possibly reduce the monetary
• 10:03
  Speaker 1: policy and get into quantitative easoning. That's the thing that
• 10:06
  Speaker 1: everybody is concerned about in the market right now. What
• 10:09
  Speaker 1: does that roadmap look like? We will get to that
• 10:12
  Speaker 1: as soon as that hearing comes out. The other hearing
• 10:15
  Speaker 1: that we're looking at this week is going to be
• 10:17
  Speaker 1: our Golden Age of Digital Assets hearing, and this is
• 10:19
  Speaker 1: the one that is charting the path forward.
• 10:22
  Speaker 6: Guys.
• 10:22
  Speaker 1: This is where we get to go and we really
• 10:24
  Speaker 1: start to innovate here in the United States around the
• 10:27
  Speaker 1: crypto and blockchain industry, so we'll cover that one for
• 10:30
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• 10:44
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