tag:blogger.com,1999:blog-8897997766931633186.post7922606630416826881..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: Mises on Gold and Fractional ReservesBill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-8897997766931633186.post-6622112414609068162015-10-27T00:47:13.223-04:002015-10-27T00:47:13.223-04:00I don’t really prefer doing gold as it’s highly ri...I don’t really prefer doing gold as it’s highly risky, so that’s why we need to be very careful in how we work out things. I am very secure doing Currency trading given that i work with 11 times award winning company OctaFX, it makes trading so much easier with their swap free account option, it really makes everything easy for me and allows me to get results in my favor all the time while they also have 24/5 active customer service.Khalifanoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-86818519732217728632012-09-21T06:53:26.326-04:002012-09-21T06:53:26.326-04:00I supported Johnson for the Republican nomination ...I supported Johnson for the Republican nomination in 2012 until he dropped out, and then switched my support to Paul. Johnson sought the Libertarian nomination and I supported that effort. (Paul for Republican and Johnson for Libertarian.) Paul did not succeed and Johnson did. I support Johnson for President in November. Mayor Bill Woolseyhttps://www.blogger.com/profile/15439136665155575382noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-34086491367529079102012-09-21T01:50:24.332-04:002012-09-21T01:50:24.332-04:00Bill, would you vote for Gary Johnson now? What do...Bill, would you vote for Gary Johnson now? What do you think of him? (I suppose a lot of the GMU people would be voting for him, correct?)Saturoshttps://www.blogger.com/profile/01914831276101897944noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-67180253437958216672012-09-20T15:07:43.539-04:002012-09-20T15:07:43.539-04:00Saturos:
Ron Paul actually proposed that people b...Saturos:<br /><br />Ron Paul actually proposed that people be able to use alternative monies--the Hayek norm. I am all in favor of that, though I don't think it would make much difference as a practical matter.<br /><br />Paul also favors auditing the Fed, which I think is a great idea. I favor a complete shakeup of the Fed.<br /><br />Now, I do know that Paul favors a gold standard is at least sympathetic to the fractional reserve banking is fraud argument. I don't agree with either of those things.<br /><br />But I think Paul was much better than the alternatives on foreign policy, personal liberties issues like the Drug War, and I also agree with his view that the economic role of government should be greatly reduced.Mayor Bill Woolseyhttps://www.blogger.com/profile/15439136665155575382noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-57000345686781766162012-09-20T15:01:56.182-04:002012-09-20T15:01:56.182-04:00I am no expert on what Cantillon said exactly.
Th...I am no expert on what Cantillon said exactly.<br /><br />The inflation tax creates a revenue that can be directed towards certain products or provided as a transfer payment.<br /><br />An inflation tax requires no excess supply of money. <br /><br />If there is an excess supply of money, this could impact the allocation of resources. I doubt this is important.<br /><br />I don't think that the inflation tax particularly benefits bankers. <br /><br />I don't think an excess supply of money particularly benefits bankers. <br /><br />Any claim that the bankers get the new money first, or early, and so they benefit, is confused.<br /><br />Bankers are not "given" money as part of the process.<br /><br />Mayor Bill Woolseyhttps://www.blogger.com/profile/15439136665155575382noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-85965682306355604812012-09-20T14:05:15.269-04:002012-09-20T14:05:15.269-04:00"I do grant that they use the "who recei..."I do grant that they use the "who received the new money first" argument to claim that the inflationary process benefits bankers. The argument is confused."<br /><br />Confused how exactly? Are you suggesting that the Cantillon Effect is a myth? Or just that the specific argument from Rothbardians is flawed?Georgenoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-23724694275122774722012-09-20T13:46:29.916-04:002012-09-20T13:46:29.916-04:00Great post. I'd add that the Patriot Movement ...Great post. I'd add that the Patriot Movement (not a presence here in the UK, obviously) seem to have ideas about money that are remarkably similar to Major Douglas and the Social Credit movement.W. Pedenhttp://en.wikipedia.org/wiki/Social_creditnoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-5903787021116047982012-09-20T13:37:24.523-04:002012-09-20T13:37:24.523-04:00So Bill, you are comfortable backing Ron Paul for ...So Bill, you are comfortable backing Ron Paul for president, despite his avowed intent to "End the Fed" and institute a gold standard? Despite the fact that the single most pressing issue for America right now is whether it can get a better monetary policy, and Ron Paul is definitely a step in the wrong direction? As a certain Australian politician once said, "Please explAIN".Saturoshttps://www.blogger.com/profile/01914831276101897944noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-87413621203346936602012-09-20T02:47:35.123-04:002012-09-20T02:47:35.123-04:00Off topic, but have you seen this video by Lawrenc...Off topic, but have you seen this video by Lawrence White? I think it's fantastic and should be spread as widely as possible. <br /><br />http://mercatus.org/video/should-we-end-fedJohn Snoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-22558559691309938152012-09-19T14:34:22.666-04:002012-09-19T14:34:22.666-04:00Ryan:
Thank you for the comment.
The theories...Ryan:<br /><br />Thank you for the comment. <br /><br />The theories I described are common in the Patriot movement, and they do infect amateur Austrian commentary. <br /><br />On the other hand, some Rothbardians also treat banks as villains and some are inclined to conspiracy theory. However, Rothbardians tend to steer away from claims that paying too much interest to the money lenders is the problem. Rothbardians are very much focused on how banking makes interest rates too low.<br /><br />I do grant that they use the "who receives the money first," argument to claim that the inflationary process benefits bankers. The argument is confused.Mayor Bill Woolseyhttps://www.blogger.com/profile/15439136665155575382noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-75054117757342431542012-09-19T12:30:40.108-04:002012-09-19T12:30:40.108-04:00This is a great post, and I believe you have corre...This is a great post, and I believe you have correctly stated the theories of Mises and Rothbard, highlighting the essential differences that make me a fan of the former and a critic of the latter.<br /><br />My only quibble is here: <i><br />One view is that central banking is about a conspiracy of international bankers to earn unjustified profit from the issue of currency. The element of truth to this is that early central banks, like the Bank of England and the Bank of the United States, were private. They issued currency that paid no interest to fund loans to government and the private sector that did pay interest. The private owners earned profits from borrowing at zero interest. The government was using tax dollars to pay interest to the private owners of the central bank.</i><br /><br />I think much of this belief stems from the Austrian belief that money is non-neutral (not, as you say, a Patriot theory). Mises remarked (please don't ask me for a page number, ha ha) that because money is non-neutral, the first recipients, if you will, of newly created money-substitutes experience a total windfall, whereas by the time the money has had time to circulate a bit, later recipients merely experience inflation.<br /><br />So if the Fed increases the money supply by making banks its "first stop" for new bills, according to Mises' theory, those banks gain the aforementioned windfall.<br /><br />Correct me if I'm wrong, but *short-run* monetary non-neutrality is also an orthodox position. Therefore, I think this criticism of the monetary regime has real merit. <br /><br />I would certainly like the Fed to increase the money supply through me. They are certainly welcome to give me any amount of money they please, and I promise to spend it immediately to stimulate the economy. Why won't the Fed do that?RP Longhttps://www.blogger.com/profile/15028013805248797978noreply@blogger.com