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How did I do with this new children's book draft? Thanks. https://docs.google.com/present/edit?id=0AcRoi3t5YXTeZGZ0ZnF6bmdfMTM4ZnFqdGZjZHQ&hl=en
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[quote user="Jonathan M. F. Catalán"] [quote user="Wilmot of Rochester"] I'm uncertain why an increase in the supply for money should cause malinvestments, all things remaining equal. [/quote] The key to Austrian business cycle theory, I think, is capital theory; that is, that an increase in the money supply will make
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[quote user="Jonathan M. F. Catalán"] [quote]I think it would speed up the demise of FRBs if the general public were keenly aware that their "deposits" were in fact loans to banks...[/quote] This seems to contradict what you wrote above it. You agree, then, that loaning out a demand deposit is wrong, and therefore the demand
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[quote user="Jonathan M. F. Catalán"] [quote user="scineram"] A demand deposit is a loan to the bank. [/quote] No, it's not. [/quote] I agree with scineram here. Although I quibble with the term "demand deposit". I like these terms: safe deposit = money you deposit in a safe deposit box kept in the bank's
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[quote user="scineram"] This entire thread and a lot others are a debate about that thesis. There is no need for google. [/quote] Would it be too much trouble just to summarize the argument against him for me? I'm lazy and don't want to scour a lot of threads to deduce the core argument against him. Just something simple like "Rothbard
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[quote user="Angurse"] [quote user="Juan"]By the money cranks, yeah.[/quote] Yeah, Rothbard, Hülsmann, etc... [/quote] I sense your acrimony against Rothbard, but alas I don't understand it. Not well read enough I guess! I googled "Rothbard is wrong" and could only find shabby critique of his self-ownership axiom
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[quote user="Monopsony"]With that logic we should expect Canadian banks to be dropping like flies [/quote] I'm actually Canadian. And I used to work for two Canadian banks no less. I'm not an expert on Canadian banking history but I can tell you that Canada has very few banks. Five up until the 1980's. Five. So if they had "dropped
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[quote user="Monopsony"] Don't group me with bernanke/contemporary bankers. I can go on for hours about what a failure our system currently is. However, my main point is that the blame does not reside with fractional-reserve banking. [/quote] I'm sorry about the Bernake secrecy remark in responding to you. You were clear earlier about
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[quote user="Monopsony"] You guys act as if it's some big secret that deposits are loaned out. [/quote] Bankers would never be secret about anything, would they?...oh yeah, Bernake refused Bloomberg's FOIA request. My point is that their sneaky language promotes confusion on the part of the public. This confusion helps to ensure their
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On the theme of criticizing bankers' vocabulary, the term "Fractional Reserve Banking" is full of holes too if you ask me. It reminds me of the kid who figures out that jargonish partial truth-telling can be a handy tool: "But mom, I didn't lie. I did tell you that there might be a Scheduling Uncertainty Occurence..." Handy