Nine-Year-Old Discusses Monetary Inflation and What Is Wrong with US Foreign Policy
The Daily Bell is pleased to present this exclusive interview with a nine-year-old boy named Jesse.
Introduction: Jesse is a typical young boy who enjoys exploring ideas and concepts. He is an average student, who tends to enjoy recess more than doing classroom work. His teachers often say that Jesse is remarkably in tune with higher-level concepts – a trait that may have resulted from an overwhelming amount of exposure to free-market thinkers. One of those free-market thinkers was Harry Browne. Jesse knew Harry and even visited with him at his home in Tennessee shortly before he passed away. Additionally, Jesse has spent a lot of time with the well-known silver analyst David Morgan and his family. Last week's interview here at the Daily Bell was with Pat Gorman. He, too, is a friend of Jesse's, as are Terry Coxon, Ron Holland and Shawn Perger. Most recently this nine-year old boy read Richard Maybury's Whatever Happened to Penny Candy? After he finished reading the book, we decided to ask Jesse a few questions about the world around us. What follows is a completely unedited interview. All questions that were asked are included in the precise order in which they were asked.
Daily Bell: What is the Daily Bell?
Jesse: The Daily Bell is group of people that try to tell the truth in the world.
Daily Bell: About what types of things?
Jesse: You tell the truth about what is happening in the world. Like about things in different countries that other people think is not true.
Daily Bell: Like what type of countries?
Jesse: Like Libya.
Daily Bell: What about Libya?
Jesse: Like about what happened to Gadaffi's sons.
Daily Bell: OK. Moving on. Are you familiar with Richard Maybury?
Jesse: Not that I know of.
Daily Bell: How about Uncle Eric?
Jesse: Yes, I know who he is.
Daily Bell: How do you know him?
Jesse: Because I read the book Whatever Happened to Penny Candy? He wrote it.
Daily Bell: What was Penny Candy about?
Jesse: The book was about inflation and recession. And real money and not so precious money.
Daily Bell: What is real money?
Jesse: Real money is what you find in mines – gold and silver.
Daily Bell: Have you ever been to a mine?
Daily Bell: What is the other kind of money called?
Jesse: Paper money.
Daily Bell: What is that?
Jesse: Paper money is stuff printed off the computer.
Daily Bell: What is wrong with paper money?
Jesse: Well, paper money is just paper. They just have stuff drawn on it. There is nothing special about it.
Daily Bell: Why is gold or silver a better form of money?
Jesse: Because it is really rare. And because it is not printed off a computer and it is not fake.
Daily Bell: What do you mean by fake?
Jesse: Fake is where it is just a regular plain piece of paper that is cut in the shape of a dollar and pictures are put on it. Anyone could basically do that.
Daily Bell: Who makes the paper money?
Jesse: Well, that's a tough question. But I am guessing the politicians run the machines.
Daily Bell: Who is Ben Bernanke?
Jesse: He is the man who runs the Federal Reserve.
Daily Bell: What is the Federal Reserve?
Jesse: It's where the paper money is made. I think in a basement.
Daily Bell: Why do they have the ability to do that?
Jesse: Because the presidents give them the ability to make the money with machines.
Daily Bell: Why do they do that?
Jesse: To make the people believe that it is real money. The presidents say it is real by giving them the ability to make it.
Daily Bell: What is it called when the Federal Reserve prints a whole bunch of new paper money and injects it into the money supply?
Jesse: Money inflation.
Daily Bell: Why is monetary inflation bad?
Jesse: Because they make more money and when they make more money all of the innocent people lose. They lose because the new money makes the old money go down. It disintegrates so they can't buy as much. It makes prices go higher. It is kind of where people give the stores more money. Like say something was $56. Then the store makes the price $62 dollars. That's inflation.
Daily Bell: Are the rising prices money inflation?
Jesse: No. It is actually price inflation.
Daily Bell: What causes price inflation?
Jesse: Adding more money into the system.
Daily Bell: How does that hurt people?
Jesse: It hurts because people can't buy as much food to live. It makes it harder for them to live... to survive, basically.
Daily Bell: Is gold inflatable?
Jesse: No. No, it isn't.
Daily Bell: Why?
Jesse: Because it is not like the money that they make on the machines. It is the money from mines. It comes from underground and people have to dig it out. They can't just make it on a machine.
Daily Bell: What is socialism?
Jesse: Socialism is where the government lies and tells people they can have things for free.
Daily Bell: Why would government make such promises?
Jesse: So they can get more money from the Federal Reserve.
Daily Bell: Why would the people who run the Federal Reserve like that?
Jesse: Because they have the machines and they can make themselves a lot more money by lending it to the government.
Daily Bell: How do they make money by lending it to the government?
Jesse: Because the government has to pay interest. The government taxes the people in the country to pay them back on the money they made on the machines.
Daily Bell: How much do you think it costs the Federal Reserve to make the money on the machines?
Jesse: They just need a whole lot of paper and paint.
Daily Bell: Why do you think people let this process happen?
Jesse: I think because they don't know it's happening, really.
Daily Bell: Have you travelled to many countries?
Jesse: Yes. I have lived in the United States, Canada and Europe. I have travelled in Egypt, Finland, Dubai, London, Colombia and the Cayman Islands.
Daily Bell: Do you think most of the people you met in those countries were similar or different?
Jesse: I think most of the people I met were good and nice.
Daily Bell: Why, then, do you think it is necessary for the United States to have military bases in over 100 countries around the world? Or do you?
Jesse: No, I don't think that is good at all.
Daily Bell: Why?
Jesse: Because it is other people's homes and they wouldn't like the US army walking around their streets with guns.
Daily Bell: What do you think the US military's job should be?
Jesse: Leaving those countries alone and going back to the United States.
Daily Bell: What would be the main job of the US military if it went home?
Jesse: Their job would be guarding their country.
Daily Bell: Who pays the bill for the US military to have all these bases in other people's countries?
Jesse: The Federal Reserve.
Daily Bell: Yes, I understand that the Federal Reserve makes the money, but who actually loses in the process?
Jesse: The people who have money and need it to buy food and clothes to survive.
Daily Bell: Thank you for sharing your thoughts with us.
Jesse: You're welcome, Dad.
Well, there you have it, folks. A nine-year-old boy has a pretty good idea as to what money is and what it is not. He also seems to grasp the wrong-headedness of those who believe that the US military-industrial complex should continue to interfere in other people's backyards.
By presenting this interview, which truly was entirely unedited, we hope it shines a ray of hope that others out there today, who seem totally dislocated from reality, can wake up. If Jesse is able to understand these concepts, why can't others? We believe they can.
That's why top free-market thinkers gather at this humble portal – to share their ideas and opinions in the hope of inspiring others to seek their own version of truth. There are more and more people out there who desire to understand the world around them. And The Foundation for the Advancement of Free-Market Thinking (FAFMT) is dedicated to helping those who seek such knowledge to find it. To learn more, click here.
We thank Jesse Wile for his time here today and hope that you found this interview inspiring. Speaking as a father, I could not be prouder of my young man.
Editor's note: If you have children or grandchildren, or simply know of some young people who you would like to help understand the world, consider ordering a few sets of the Richard Maybury's Uncle Eric series and giving them as gifts. It is one of the best gifts any young person could ever receive, in our opinion. For more information on the Uncle Eric series, Click Here.
Posted by EntropyAnn on 10/02/11 11:30 PM
A very smart boy. He'll be in the uniquely good position in the years to come to actually know what he's doing while putting his own small part of the world together after the current one falls apart. Although, one might say the world was in shambles years ago, and only recently have we begun admitting as much to ourselves.
Posted by arandall on 09/22/11 02:44 AM
What a fine young man Jessie is! That was one of the best interviews I have read in a long time.I'm a newcomer to the Austrian School, thanks to Richard Maybury and Henry Hazlet, and others.Now I can see what is happening, and going to happen in the future with confidence, and I have already started my silver and gold fund. I love the Daily Bell. Your website is truly: "news you can use" indeed!
Posted by Cannonfodder on 09/09/11 08:39 PM
Impressed is an understatement. Your son obviously knows much more about the political and financial world than most adults. His wisdom and critical thinking will serve him well as he makes his journey through life. Oddly enough, it could have been an interview with my 13-year old. He brings some interesting stories home from school where he tries to enlighten everyone. Most don't get it. Just a few days ago he related that one of his teachers told him, "a ten dollar bill will always be worth ten dollars." to which my son responded that, "even though it still represents ten dollars, those dollars will buy less each year because all governments are inflating the money supply."
Posted by Leslie on 08/22/11 04:16 PM
Congratulations to both DB and Jesse for this interview! This was great. I have had my children read the Uncle Eric books as well. They too have walked away with very precise and concise picture of money and basic economics.
The interview was precious. If only 10% of the American population knew this much, we would have everything corrected in no time. We always need to remember... it only takes 5% to win a revolution and it has been done with less than that!
Posted by Zenbillionaire on 08/09/11 04:20 PM
"Jews per say are no better or worse than most the rest of us"
[place tongue in cheek before reading]
I expect you can say that because one of your signature recipes isn't Clam Chowder. It honestly hurts me when my friends refuse to even try it on religious principal. No matter how often I attempt to explain the wonders of refrigeration and the miracles of modern technology that have, in my horribly secular opinion, made much of the old testament and similar writings obsolete (including those concerning Philistines) I make little or no progress. Jews, per se, can be stubborn.
[remove tongue from cheek]
Posted by Zenbillionaire on 08/09/11 04:04 PM
A chip off the old block I'd say. Good thing he inherited his mother's looks :)
Posted by Lyuba32 on 08/08/11 11:47 PM
"Daily Bell: What causes price inflation?
Jesse: Adding more money into the system.
Daily Bell: How does that hurt people?
Jesse: It hurts because people can't buy as much food to live. It makes it harder for them to live... to survive, basically.'
Jesse, you rock. Thank you for your insight. What you said above in regard to price inflation really hit home today as I walking through my local Costco.
My favorite whole bean coffee (2 ½ lbs.) has gone up from $18.99 to $21.99.
Also, my favorite organic sugar (10 lb. bag) has gone up from $8.99 to $10.99.
Now, I have to spend $5 more for the same two items than I did a month ago. Not good. :(
Posted by Danny B on 08/08/11 10:18 PM
"The Israeli market crashed this morning dropping 7%. "
We must all recognize that a great number of jewish bankers through history have proved to be very shrewd at finances. That hasn't made israel immune to financial problems. In the mid 80s, they knocked 3 zeros of the shekel.
Click to view link
Obviously, GOV and bankers are 2 different animals.
From a historical perspective, the FED has done a better than average job of maintaining the value of the dollar. Not a popular observation.
Zim knocked off 13 zeros. The list includes Mexico, Brazil, Russia, Germany Yugoslavia. ETC. I'm NOT a cheerleader for the FED but, Look at Argentina.
Posted by Abu Aardvark on 08/08/11 11:40 AM
I still haven't made up my mind. Am I more delighted, because the boy knows about these things, or am I rather horrified, because still far to many grown-ups don't.
A tough one. But thank you Mr. Wile & The Daily Bell for letting me choose.
Posted by travis690 on 08/08/11 08:44 AM
I was hoping that when Jesse was asked about who Ben Bernanke is, that he would have answered either, "A counterfeiter," or "A criminal."
Posted by free on 08/07/11 11:32 PM
The Obamabot brian, good one.
Posted by free on 08/07/11 11:31 PM
Do you really think so?
Posted by eugpenn on 08/07/11 09:43 PM
What an Outstanding and Intelligent young man!! He knows more than Any Obamabot brain washed Moron!!
Posted by johnblenkins on 08/07/11 07:02 PM
I'm glad you bought that up.Whilst I agree in part that there is a conspiracy
in which the Zionist bankers play a full part in defrauding the masses.
Jews per say are no better or worse than most the rest of us.
Only today for the first time the BBC has reported Israeli city's
are throbbing with thousands of protesting Jews.
(RT has been on this story for three weeks.)
Over exactly the same price inflation and eroding living standards.
That have bought the Greek, Spanish, Portuguese to the streets.
Ironically prompted by their neighbours Egypt.
Price inflation is even handed without bias or racism.
All know a Penny Candy is a penny no more.
We are all in the same boat, in the west at least.
Yet TPTB will set us about each other in war as they do in the Punch and
Judy of national politics.
If we final see this for the distraction it is and come together to
fight the Banksters their political water carriers and the crucible of
Corporate/Contract/Admiralty law. Then debt slavery will end.
What is more the Zionist/Christian or what ever shade or creed of financial criminal.
will be slung in jail to fractionally reserve their butts
to the bull queens. To see that is inspirational in its self.
Reply from The Daily Bell
The Israeli market crashed this morning dropping 7%.
Posted by TruthTeller on 08/07/11 05:29 PM
Just tell it like it is. The Federal Reserve is OWNED and CONTROLLED by the Zionist Jews. It is a foreign entity.
It CONTROLS our economy!
Reply from The Daily Bell
Well... that wasn't really part of Maybury's Penny Candy book.
Posted by johnblenkins on 08/07/11 04:43 PM
Very inspirational Jesse, one of the few who has never been asleep.
Most of us on this site have woken up. In no small part, thanks to the sterling
work your old man and his merry elves do.Stumbling here half asleep knowing
something was amiss. If and when 1 in 10 understand what Jesse clearly does
we might have a chance to rid the parasitic bankers of our backs.
Subject: Sons Of Liberty Academy Newsletter August 7th
1. The Bankers/Wall Street own the False Left Right Paradigm:
Wake Some People Up! . . . ? Read More: 4 Old Cartoons Explain The World
Posted by vengh on 08/07/11 03:27 PM
excellent! Young Jesse puts our politicians to shame. A product of admirable parenting.
Posted by Summer on 08/07/11 03:21 PM
How sweet! Wow, 9 years old and so clever, what a lovely boy, inside and out!
Posted by EdwardUlyssesCate on 08/07/11 02:33 PM
Nice story! I seem to recall there was a book titled "All I Really Need to Know I Learned in Kindergarten." Don't make promises you can't keep, and keep promises you make.
Paper money is nothing more than a promise, and when monetary promises are not being kept, folks turn to gold and silver to barter. Of course, governments do not want folks to believe in such simple concepts, because it interferes with those in government profiting by lyin' and stealin'. Even a nine-year old understands that.
Posted by Aloysius McGuinness on 08/07/11 02:10 PM
Mr. Wile, so do we thank "Tabula Rasa" or genetic prediposition for your boy's aptitude?
(BTW could you set up a live, U.S. prime-time knock'm-sock'm debate between the Great Befuddled Muddler Ben "the Bonehead" Bernanke versus the Sly'n Wily underdog counter-puncher "Don't-Mess-With-Me" Jump'n Jessie?)
Too bad Howard Cosell has moved on. It would be a classic.