Money and Banks

Recorded at Mises University 2007.

...it’s easier to use the new $200,000 note issued by

As the mortgage-backed securities market meltdown accelerates, Bloomberg reports

Aside from the error identified by Shostak this morning, another error concerning financial markets is th

This is a story about Linda Combs, who cleaned up the government’s

The present glut in the money markets, with excessively cheap money and its attendant evils and dangers to the credit structure of the country, is due to the concurrence of three main causes.

From BigWhiteGuy.com (”Adventures of a BigWhiteGuy living in Hong Kong”), comes

We have today a hybrid of two forms of banking — loan banking (non-inflationary) and deposit banking (inflationary if not 100% reserve holdings).  The cause of booms is the credit expansion by central banks that is not backed by pools of private savings.

In the history of money, bartering was awkward because wants were not divisible. Direct exchange depended upon a double coincidence of wants. Demand for a medium of exchange grew until a general medium of exchange emerged, like gold and silver.

As new money is created by the banking system, it enters the price system as the recipients spend it.