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"There's Idiots Running The Fed" - Palantir Co-Founder Fears The 'Fetishism' Of Experts In America

Tyler Durden's Photo
by Tyler Durden
Thursday, May 27, 2021 - 05:00 PM

Never one for understatement, Palantir co-founder Joe Lonsdale appeared on CNBC this week to discuss cryptocurrencies and the world's central banks efforts to re-centralize control of what the establishment is clearly losing control over.

As Henry Kissinger reportedly once said, "Who controls money control the world" echoing the infamous quote from Mayer Amschel Rothschild: "Permit me to issue and control the money of a nation, and I care not who makes its laws!"

So, is it any surprise that the loss of faith in those "who control the money" has sparked a decentralized "control" of the money - cryptocurrencies - that are, for all intent and purpose above both political and legal interference.

And that is where we hear from Mr.Lonsdale as he reflects on the disruptive success of various DeFi platforms and calls from establishmentarian types like JPMorgan CEO Jamie Dimon demanding more regulation (of these upstarts):

"Well, Jamie Dimon is terrified of the fact that he can't keep his best people... the most talented people don't want to be in banks because aren't allowed to be creative... because regulators have made their lives really hard."

So, for the brightest people looking to do all the fun and cool stuff "are leaving Goldman Sachs to join startups."

"This means the old financial legacy of capitalism is being sucked dry and destroyed by this centralized government regulatory system as all the smartest people are fleeing to do creative things."

And that's why Jamie Dimon wants regulatory crackdowns, "to make it more difficult for [the startups] to innovate... and stopping those people from doing what they want is not good for our country."

The Silicon Valley billionaire discusses various areas of the economy - such as healthcare and finance - where disruption is ripe for better use of data:

"The whole economy is shifting right now to take advantage of the cloud, take advantage of big data, and we're still in the early stages in all these industries."

Then the conversation shifted to cryptocurrencies and The Fed, and the Palantir co-founder left CNBC's anchors speechless with his truth bombs...

"We have this fetishism in this country of experts and their centralized status...

...what's really scary about The Fed right now is that usually when I talk to my smartest friends in New York, they say, 'you know what, I might disagree with The Fed, but they are really smart'.

People on both sides of the political divide that I talk to right now are saying 'wow, there's really idiots running The Fed'... this is really scary... and China knows this right now as well."

Lonsdale goes to note that China is pushing for financial institutions to stick with the Yuan, warning that:

"The Fed has gone crazy, they're going to destroy the dollar... and we promise not to destroy the renminbi... We're gonna keep our yields higher, keep your money in China, it's safer."

Personally, Lonsdale says he doesn't like that idea at all but notes that:

"a lot of smart people are betting against the dollar, betting against The Fed, and betting against the centralized system of finance in America because we have crazy people in charge"

He goes on to warn that "it would be terrible" if The Fed tried to do its own 'centralized' digital currency, warning that's:

a "very status quo top-down thing to do, you want to be decentralized... you don't want them in control of the system... that's the big fight that's going on right now."

He ends even more ominously - if that's possible - warning that:

China is "making an active play, warning that you know and I know the people at The Fed have lost their minds...

They're printing dollars like crazy and going along with whatever Janet Yellen needs, printing way more than they should...

This Fed has lost its mind... and China's taking advantage of that and they want to make a play to hurt the dollar's reserve status."

Watch the full interview here:

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