Libertarian Alliance Conference 2010: Steve Baker MP, Honest Money and the Future of Banking

laconf2010, Steve Baker MP, Honest Money and the Future of Banking from Sean Gabb on Vimeo.

One comment

  • There is nothing wrong with money lending for interest – Aristotle was mistaken.

    However, one should only lend out what one actually has.

    If one has, for example, a thousand Pounds and one “lends out” a hundred thousand Pounds or a million Pounds – one has, at least as the ordinary person would judge such things, committed a form of fraud.

    But whatever the laws of fraud may say – one has certainly engaged in a terrible folly.

    Expanding “broad money” (bank credit) beyond REAL SAVINGS (the actual sacrifice pf consumption – Keynes was just wrong when he claimed that credit expansion was “saving – as real as any other form”), creates a bubble economy – and this bubble must eventually burst.

    Banks who engage in this “crediting to the account” (and other book keeping tricks) should be allowed to go bankrupt (they should not be bailed out).

    As for money itself……

    It should be a real commodity (such as physical gold and silver) that people choose to value before it becomes money and apart from its use as money, and the subjective nature of economic value does NOT change this.


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