Money and Banks

We have reached this point: the government keepers of money do not even understand what money is or why inflation is harmful. To them, the real threat to the economy is “deflation.”

Federal oversight of each recycled metal transaction would be an intrusion into the daily life of the individual and business on an unseen scale.

A common belief among economists is that the central bank determines what interest rates should be. But is that accurate? Indeed, there is more to the story.

Contra Marx, the laws of economics are immutable and are the same no matter what historical epoch exists. Economies cannot flourish unless market prices, private property rights, and profits and losses are unhampered.

When the bankers called for a central bank in the US, they claimed to only want a way to stop bank runs. It turns out that they wanted—and got—much more. The permanent regime of inflation and asset bubbles is the result.

Not all news from the gold and monetary fronts is bad. In fact, gold made a number of advancements in seven states, including exemptions from taxes and attempts by states to restrict Federal Reserve behavior. Gold is alive and well.

The Fed lowers interest rates ostensibly to “stimulate” the economy. But while the Fed claims it is strengthening the economy, it actually weakens it through its easy-money policies.

Mises Fellow Kristoffer Hansen joins Bob to discuss the controversy surrounding Mises' perspective on fractional reserve banking and free banking.

Despite claims from the Keynesian “experts” that gold is a “barbarous relic,” the markets are saying that gold is more valuable than ever.

Jonathan Newman is interviewed by Kerry Lutz on the Financial Survival Network.