Was it just a Freudian slip that Greenspand started his recent encomium for Keynesian debasement with a reference to the Gold standard? It was probably inadvertent, but the contrast suggested between real, hard money, freely chosen by market processes, not arbitrarily by the State and its Financiers, was no less resonant for the fact that it was implicit, rather than as shockingly explicit as in Bernanke's recent speech on the subject.
The existence of the money multiplier is the outcome of fractional reserve banking, writes Frank Shostak, which the current banking system makes possible. The money multiplier is not only real; it is a good tool to help us understand the process by which the banking system creates inflationary credit and all of its associated effects.
Murray Rothbard had a remarkable ability to throw unexpected light on historical controversies. Again and again in his work, he pointed out factors that earlier authors had overlooked.
Liberty is incompatible with taxation, writes Tibor Machan. This is despite the famous saying by Oliver Wendell Holmes that "Taxation is the price we pay for civilization." In fact, taxation is a most uncivilized way of obtaining funds, given that it boils down to nothing less than extortion.
No one can contend that the Federal Reserve System has brought economic stability or conquered the trade cycle, writes Hans Sennholz. On the contrary, its critics are convinced that a politically conceived and administered money monopoly, such as the Federal Reserve System, is the worst of all money systems. It will breed business cycles as long as it lives.
What is essential for us today is to continue the research, the writing, the advocacy for sound money, for a dollar that is as good as gold, for a monetary system that is separate from the state. It is a beautiful vision indeed, writes Lew Rockwell, one in which the people and not the government and its connected interest groups maintain control of their money and its safe keeping.
What we see in Japan has nothing to do with the mythical liquidity trap, writes Frank Shostak, and everything to do with an explosion in debt, a reckless monetary policy, and tight government controls of businesses via the ministry of trade and industry. To put it bluntly, the Japanese have been depriving themselves of real funding in return for American government promises to repay the debt.
The idea of resorting to work and entrepreneurialism as a means to material well-being has historically become a poor second to the idea of acquiring resources through theft. This robbery is always most effectively perpetrated when disguised and when legally underwritten by the threat of political violence–-i.e., when it is committed by the State.
There is something about monetary phenomena that make them a particularly misunderstood aspect of economic life. Deflation is no exception. There seems to be little understanding as to what it is, what causes it, and whether or not it is something that should be prevented. The effects of deflation, like the quality of drinking water, cannot be considered without regard to its source.
So long greenbacks; hello pinkbacks. So says the Bureau of Engraving and Printing, which promises to start changing the color of money next fall, beginning with the $20 bill.
