Murray Rothbard: After the Collapse

Off Topic Politics & World Issues
1

After the outright and utter collapse of our economic system, a process which is in its earliest stages right now, what should be done to avoid another such catastrophe from happening?

"The money and banking system of the free society therefore, Rothbard argued, should be based on a system of 100 percent gold reserves.

He also argued that this would eliminate the “business cycle.” Banking would have two divisions: one would be pure warehousing, in which the depositor paid a fee to store his actual gold or silver and for which the actual amount deposited would always be in the vault for 100 percent redemption on demand.

The other division of the banking establishment would be for saving and lending, in which sums would be deposited for a stipulated period of time during which depositors could not make a withdrawal (except under specifically prearranged terms and penalties). These saved sums would then be available for lending purposes for contracted periods of a loan."

http://www.fff.org/freedom/0999c.asp

I would add that people should learn that wishes don’t make something true and that prosperity can’t come from printing up paper.

2

Absolutely.

A banking system based on 100% reserves would go a long way to making free people more prosperous. Naturally, businesses would also be more sound because only the those that met the demands of customers most efficiently would stay in business.

The possibility of a bank run and no bailouts would also keep banks from over extending credit. In other words people could actually build wealth by saving instead of having it stolen out of their pockets with a printing press.

3

Rothbard is a genius but his no compromise solutions will never be taken seriously. He would cripple the political power our elected officials have over us and the economy. Never happen, atleast not if it is made obvious. The only way we reverse the damage that has been done to this country is the same way we ended up with what we have now. Small, inconspicuous change over time.

What’s scary is that recent changes have been niether small, nor inconspicuous.

Rothbard’s assesment of the great depression is insanely thorough. I think I have a book on CD and a recorded lecture or seminar from him. Brilliant.