Money and BanksMoney and Banking
In a true market — i.e., without a central bank — banks are intermediaries of real savings in their lending activities, thus promoting genuine and real economic growth.
The US dollar continues to enjoy the confidence of markets, governments, and central banks. But faith in the US dollar is weakening, and many are trying to help the process along.
Would it be possible for the boom-bust cycle to emerge in the free market economy where the central bank does not exist and where gold is money?
Attempts at stabilizing the economy distort economic signals and cause economic instability, rather than preventing it.
Media and CultureStrategy
As the foundation of the economy weakens, bank lending weakens also. And then money begins to disappear from the banking system.
Ultimately, what matters for the well-being of individuals is not that they are employed as such, but their purchasing power in terms of the goods and services that they earn.
The sooner we stop conflating “technology” with “coin,” the sooner we will have a better understanding of what is and is not sound money.