[This article is part of the Understanding Money Mechanics series, by Robert P. Murphy. The series will be published as a book in 2021.]

In this chapter we will define some of the conventional “monetary aggregates,” such as M1 and M2. Then we will summarize the textbook description of how the Federal Reserve and commercial banking system “create money” when the Fed buys assets and the commercial banks extend new loans.

[Adapted from “A Practical Approach to Legal-Pluralist Anarchism: Eugen Ehrlich, Evgeny Pashukanis, and Meaningful Freedom through Incremental Jurisprudential Change“ from the Journal of Libertarian Studies.]

The Nation, which enthusiastically has supported every totalitarian communist regime that has existed in the past century (and that includes Pol Pot’s Cambodia and North Korea) is now firmly riding the Bernie Sanders bandwagon.

“Open borders” is a phrase usually heard in the context of international borders only.

We hear far less about the issue of open borders between member states within a confederation or union of states.

After all, no one thinks twice of crossing the borders between member states within the United States of America. Increasingly, one is similarly unimpressed when crossing from one EU member state to another in Europe. 

Liechtenstein has long been recognized as one of the most free and prosperous countries in the world. However, there has been little analysis of Liechtenstein’s development because the scant research that existed was in German and therefore inaccessible to most American scholars. Furthermore, many saw no need to study Liechtenstein, viewing it as an accident of history with an anachronistic political system. Liechtenstein’s monarchy, unlike the monarchies in most other European states, retains extensive powers and is involved in the day-today operations of government.

Murray Rothbard stated the nonaggression principle (NAP) in this way:

No one may threaten or commit violence (“aggress”) against another man’s person or property. Violence may be employed only against the man who commits such violence; that is, only defensively against the aggressive violence of another. In short, no violence may be employed against a nonaggressor.

Why is the threat of violence a NAP violation? Why not confine NAP violations to the use of violence? Rothbard answered in this way:

Last night’s State of the Union was particularly noteworthy for its showmanship. Scholarships were given away, medals were awarded, families reunited. At a time when national politics is bad theater, President Trump is clearly its most gifted star.

Trump also knows what sells. As a political figure, he’s motivated not by any consistent ideology, but rather by transactional legislation. Following the performance, an MSNBC pundit noted that the speech was a “microtargeted ad” to various demographics aimed at expanding his base before next year’s election.

In attempting to promote the libertarian viewpoint, particularly in its anarchic variety, one is faced with a variety of problems.