Following up another thread from a couple of weeks ago: As you know, Mises.org has recently published Jesús Huerta de Soto's Money, Bank Credit, and Economic Cycles, which makes a vigorous case against fractional reserve banking. Although I agree with Derek that fractional reserve banking should not be outlawed--"Let the market take care of it," indeed--I was interested in Huerta de Soto's case. I've read only the first chapter so far, but it's promising enough that I just downloaded the second. (The third edition, 2006, is available for downloading free from the author's website, www.jesushuertadesoto.com.) De Soto is arguing that failure to meet demand for deposits is tantamount to theft, a view he traces to Roman law. (In the next chapter I gather he will document the shift to the present view.) If that's the way it were culturally perceived, I would say, then judgments by arbitration agencies might well serve as a significant brake on the practice.
Dear MIke And Everyone Else;
For those of you interested in fractional reserve banking and what the heck is it this url is from Lew Rockwell.com and 91 articles on fractional reserve banking or some phase of it and some relationship it has to GOLD.
The first article is by Murray Rothbard and gives a good overview of it and what it is and how it works and the wreckage it doeseth wroth on the economy.
Ron Getty
SF Libertarian
http://www.google.com/custom?hl=en&lr=&ie=ISO-8859-1&cof=AWFID%3A65dad07a461e3427%3BL%3Ahttp%3A%2F%2Fwww.lewrockwell.com%2Flewroc1a.gif%3BLH%3A93%3BLW%3A500%3BBGC%3A%23FFFFFF%3BT%3A%23000000%3BLC%3A%230000CC%3BVLC%3A%230000CC%3BALC%3A%230000CC%3BGALT%3A%23008000%3BGFNT%3A%23000000%3BGIMP%3A%23000000%3BDIV%3A%230000CC%3BLBGC%3A%23FFFFFF%3BAH%3Acenter%3B&domains=lewrockwell.com&q=fractional+reserve+banking&btnG=Search&sitesearch=lewrockwell.com
"Acree, Michael" <acreem@...> wrote:
Following up another thread from a couple of weeks ago: As you know, Mises.org has recently published Jes�s Huerta de Soto's Money, Bank Credit, and Economic Cycles, which makes a vigorous case against fractional reserve banking. Although I agree with Derek that fractional reserve banking should not be outlawed--"Let the market take care of it," indeed--I was interested in Huerta de Soto's case. I've read only the first chapter so far, but it's promising enough that I just downloaded the second. (The third edition, 2006, is available for downloading free from the author's website, www.jesushuertadesoto.com.) De Soto is arguing that failure to meet demand for deposits is tantamount to theft, a view he traces to Roman law. (In the next chapter I gather he will document the shift to the present view.) If that�s the way it were culturally perceived, I would say, then judgments by arbitration agencies might well serve as a significant brake on the practice.
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Dear Mike And Everyone Else;
The correct web address is www.jesushuertadesoto.com unfortunately the period at the end of the url on Mike's original reads as part of the url and won't connect.
Once you get to the web site on the main page at the bottom go to entrar - then look for Articules Ingleses on the left side - then go to free banking for the fractional reserve banking article in Ingleses.
There are several other Ingleses articles on his site which also at first glance appear very readable and knowledgable about Libertaian economics and even an article on some early Spanish 1600's Libertarian thinkers whom Hayek quoted and referenced as a foundation for the Austrian School of Economics.
Ron Getty
SF Libertarian
"Acree, Michael" <acreem@...> wrote:
Following up another thread from a couple of weeks ago: As you know, Mises.org has recently published Jes�s Huerta de Soto's Money, Bank Credit, and Economic Cycles, which makes a vigorous case against fractional reserve banking. Although I agree with Derek that fractional reserve banking should not be outlawed--"Let the market take care of it," indeed--I was interested in Huerta de Soto's case. I've read only the first chapter so far, but it's promising enough that I just downloaded the second. (The third edition, 2006, is available for downloading free from the author's website, www.jesushuertadesoto.com.) De Soto is arguing that failure to meet demand for deposits is tantamount to theft, a view he traces to Roman law. (In the next chapter I gather he will document the shift to the present view.) If that�s the way it were culturally perceived, I would say, then judgments by arbitration agencies might well serve as a significant brake on the practice.
SPONSORED LINKS
U s government grant Libertarian party California politics
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It may be in the short term, but it seems possible to me that the steady state of the system may not be.
-- Steve
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Actually, I was referring to the steady state of a system without a federal reserve. It's self regulating *because* individual lenders are allowed to fail. In a system where lenders and depositors know they always have a safety net (like Fannie Mae knows the government will buy it's bad loans), it seems to me that the self regulator is removed.
It seems to me that problem really isn't the amount of debt - it's the judiciousness of the lending. For example, mortgages rely on a proper assessment of what the bank can sell the property for in the case of borrower default. If this estimate is over estimated on the majority of mortgages, you've got a possible collapse situation. But why should they be judicious if they can rely on a bailout?
-- Steve