An introduction to political economy focusing on money, banking and funding of government.
Money & Banking
Perhaps the money of the future isn’t some sophisticated crypto token, but a private promise to consume a widely used service.
By helping to cut the dollar’s tether to gold, Volcker helped Washington’s politicians engage in perpetual fiscal profligacy.
I know that it’s good to have alternatives to government-created currencies. The dollar’s value is only backed by politicians’ promises. I sure won’t trust those.
By removing the market’s solution to collapsing banks, this unraveling forced electorate-sensitive governments to take up the residual risk and backstop the financial system that Scottish banks themselves so effectively regulated in the past.
Inflation—the government’s expansion of the money supply—creates the appearance of business prosperity along with the fact of general impoverishment, which results in blaming poverty on business and profits.
Rothbard does not refute White’s thesis that Scottish banking was less regulated and hence more stable and well-functioning than England’s banking system in the same 145-year period.
Any official effort to link the dollar to gold today would be just another act of monetary central planning.
Blame the Bankers, Not Freedom in Banking
That there was widespread support for the Scottish bank suspension did not, however, mean that the suspension left the Scottish public unscathed.
Does the Scottish suspension suggest that fractional reserve banking is, inconsistent with genuine freedom in banking, including the consistent honoring of bank customers’ property rights?
If we can’t kill it entirely, we should be thinking about ways to make the Fed less political, not more.
The Financial Crisis of 2008-9 and The Great Recession Was Caused By The Government And Not Capitalism
The financial crisis of 2008-9 — accompanied by the Great Recession was caused by government intervention, mainly in mortgage finance and the housing sector.
I don’t trust politicians, generally, but I especially don’t trust them with money. Since the U.S. went off the gold standard, the dollar has lost 80 percent of its value.
At a time when the appeal of and demands for a new “democratic” socialism seem to have caught the imagination of many among the young and are reflected in the promises of a good number of political candidates running for high office, there is one...
The creation of money doesn’t create wealth, unless money itself is wealth — as it was when it was gold and silver.
How the government fundamentally caused the financial meltdown of 2008.
Government planners fail to “manage” market economies as the indicators they use are themselves false signals hiding from view the reality of the complex market system.