3 ms·
You might want to read Rothbard's What Has Government Done to Our Money. It's available free both in pdf and mp3 at mises.org. The tl;dr reply to the arguments
by dpatru 16y ago
You might want to read Rothbard's What Has Government Done to Our Money. It's available free both in pdf and mp3 at mises.org.
The tl;dr reply to the arguments in podcast 3 (banks fail if forced to redeem paper for gold) is that fractional reserve banking is incompatible with the gold standard. The gold standard treats paper money as mere warehouse receipts for gold. But bankers tend to issue more receipts than they have in gold, i.e., they commit fraud. When the public cash in their paper, the banks run out of gold, something that shouldn't happen if the bank only issued paper for gold in the first place. Rather than blame the bankers and put them in prison, governments have taken away people's right to use gold as money and even to own gold. Far from an argument against the gold standard, the history related in your reference 3 (about the collapse of the English and American banking industries) is a lesson of government tyranny, bank fraud, and an argument for real money as a check on government power.