Richard Werner Tells Tucker Carlson Wrong To View Banks As 'Intermediaries,' Says They Have 'Unique Power' That Economists Overlook

Economist Richard Werner argues that banks should not be viewed merely as intermediaries, as they possess a unique power to create money. He criticizes traditional banking theories, stating that they overlook this crucial aspect, which distorts economic debates, especially as the U.S. economy slows. Werner presents three banking theories, emphasizing that understanding banks' role in money creation is essential for accurate economic forecasting. This discussion is timely, given the recent decline in credit demand and expectations of Federal Reserve rate cuts amid economic challenges.