Money and Banks

The task of the theory of money consists merely in dealing with that component in the valuation of money which is conditioned by its function as a

Money originates by free markets via barter and gold and silver, not by governments via fiat. A story of Halloween candy demonstrates this.  The double coincidence of wants is solved by money. Money that will last will be six things: generally marketable, divisible, high value per unit weight (portable), durable, recognizable, and homogeneous.

Recorded at the Mises Circle in Newport Beach, California, on November 14th, 2009. Sponsored by Louis E. Carabini.

The notion of a neutral money is no less contradictory than that of a money of stable purchasing power.

Most people would admit to hoarding money only with a tinge of guilt, because to be a hoarder carries with it the suggestion of being a miser—a Scrooge. And yet, every participant in an economy based on indirect exchange holds some amount of money and can be said to be hoarding it; that is, declining to spend it. Hoarding is a strategy for achieving personal goals or for dealing with economic uncertainty.

In light of the recent multitude of chances for the population at large to be gently introduced to the shenanigans of our Federal Reserve System, I have hope that the lights may come on for enough people before it is too late.

The demand for a medium of exchange is the composite of two partial demands: the intention to use it in consumption and production and the intentio

we should jettison our fiat money system in favor of a gold or multicommodity-metal system (such as gold, platinum, silver, and copper). While we're at it, we should jettison fractional-reserve banking in favor of full-reserve banking.

Money is the thing which serves as the generally accepted and commonly used medium of exchange.