Friday, July 8, 2011

New blog Free Banking


The first article I read was by someone named Larry White.

Scroll down to the article where he mentions "those who believe in the rule of law".


First, I don't believe in the rule of law. I believe in natural law.

Second, there is nothing inherently immoral about money creating, even token money creation.

What is immoral is that we have a society where people are essentially forced to use US currency, hence it becomes fiat currency.

So the question then becomes, is the gold standard a second best alternative to a society with a truly free monetary system?

No, its not a "second best" option. Because a government imposed gold standard leads to economic depressions imposed by the government. I suspect NGDP targeting is the real second best option.

The heart of my disagreements with the Austrians are:
1. How attractive would a 100% gold reserve standard be in a free society? (Not very, in my opinion).
2. Is fractional reserve banking fraud? (In my opinion, no).
3. What is the second best option while we wait on a free society?

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