If you are like me, you are not intricately familiar about central banking, the case for or against central banking and the likes. I never really studied the federal reserve/central banking and thus why I don't really comment on it.
However our good friend Save Capitalism has and it would be a good stepping stone into understanding the Fed.
Aloha Cappy Cap! Your Hawaiian agent in the field has some reading assignments for you!
ReplyDeleteFederal Reserve Studies 101:
Origins of the Federal Reserve by Murray Rothbard
http://mises.org/daily/3823
Federal Reserve Studies 102:
The Creature From Jekyll Island by Edward Griffin
http://www.scribd.com/doc/6479760/The-Creature-from-Jekyll-Island-by-Edward-Griffin
Federal Reserve Studies 201:
The Case Against the Fed by Murray Rothbard
http://lewrockwell.com/rothbard/rothbard202.html
Federal Reserve Studies - The Cliff Notes version:
Fractional Reserve Banking by Murray Rothbard
http://www.lewrockwell.com/rothbard/frb.html
Welcome to the mouth of the rabbit hole. Would you care to see how far it goes?
lozlzolzolzol
I admit I did not read a good portion of the linked blog article. A perpetually inflated fiat money system is not mathematically impossible. It is either politically possible or not, based on how much inflation taxation and government regulation the people can and will bear. Currency first means political acceptance. You can always leave a willing sucker a tenth of what he has over and over again. Zero is never reached. If he works productively, all the better. The money units can slide indefinitely. We could have one-cent bills and make change in hundredths of a cent I would call dougs if I ran the system. lol
ReplyDeleteThe best explanation of fiat money I have seen is in the animated short (45 minutes) Money as Debt: http://video.google.com/videoplay?docid=5352106773770802849
I think I have explained it well too. So many people get it wrong to various degrees. For those to whom a picture is worth a thousand words, I recommend my webpage at realitydoug.tripod.com, and you don't need the popups from the 'free' web hosting of tripod, so block them.
I still remember the first time I was told how banks work.
ReplyDeleteMy overwhelming question was:
'Wait, you're saying the banks give away our money and hope they get it back before we need it? Isn't that illegal?'
I have since learned that full-reserve banking essentially does not exist except in theory.
http://www.youtube.com/watch?v=RGN1xJv6Mcc
ReplyDeleteNotice that Brad Sherman stated that if congress didn't pass the bank bailout bill, there would be "open" martial law? What is the difference between "open" martial law and martial law?
What does he know that we don't?
Perhaps it has to do with something FDR issued in 1933. Just before he issued an executive order banning gold ownership. An executive order, was it passed by Congress?
http://realcurrencies.wordpress.com
ReplyDeleteBest resource on the web, definately exposes the Austrians and 'real gold currency'.
You can't have full reserve banking if you are going to make interest on your deposits instead of paying the bank to keep your money. The problem I see with this article is that if you eliminate all the "evil" versions of banking, the bank becomes a giant safe deposit box for your stuff and you'd have to pay fees to keep it running. You might as well buy a good fireproof safe. And take cash with you every time you went shopping or on a trip.
ReplyDeleteMurray Rothbard was a great man. Fortunately he wrote clearly, and almost amusingly. He has written a good book on banking, and I right now am immersed in his "Austrian Perspectives on the History of Economics". Fortunately, several of his books are available on Kindle, especially good for the "Austrian Perspectives ..." because it is bloody big in hard copy - over 1000 pages and $50.00 in price.
ReplyDeleteAs for central banking, Andrew Jackson hated it and while President closed down the First Bank of America.