Comment: How deep is the memory hole?

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How deep is the memory hole?

Murray Rothbard threw Lysander Spooner down the memory hole with his hit piece titled:

As with taking a step back from Total Crime made legal to The Constitution so is it a step back from Total Crime made legal to Gold and Silver as "government" money.

Rothbard was freedom light, or legal banking monopoly power (so long as it is Gold monopoly power), according to Gary North.


In theory, there are two possible solutions, neither of which has any possibility of being implemented in my lifetime or yours.

One solution is free banking. This was Ludwig von Mises' suggestion. There would be no bank regulation, no central bank monopolies, no bank licensing, and no legal barriers to entry. Let the most efficient banks win! In other words, the solution is a free market in money.

Another solution is 100% reserve banking. Banks would not be allowed to issue more receipts for gold or silver than they have on deposit. Anything else is fraud. There would be regulation and supervision to make sure deposits matched loans. This was Murray Rothbard's solution. The question is: Regulation by whom? With what authority?

There would be no government-issued money. There would be no government mint. There would be no legal tender laws. There would be no barriers to entry into coin production.

There would also be no free services. There is no such thing as a free lunch.

Anything other than free banking or 100% reserve banking is a pseudo-gold standard or silver standard. It is just one more invitation to confiscation.

There is no organized movement today to establish either free banking or 100% reserve banking. There has never been a movement to impose 100% reserve banking. It has been well over a century since a handful of economists and pamphlet writers recommended free banking.

Anyone who tells you that it would be easy to switch over to a gold standard has either no understanding of the politics of money and banking or else has been smoking some funny-smelling leaves.

1. Gold can (or cannot) monopolize money markets without crimes made legal ("government" monopoly).

2. Gold is a niche market for purchasing power storage (hedging).

3. Competition (true free market) forces the cost of money down and the quality of money up.

Discussions concerning The Constitution (Law Power) and Gold as Money (Economic Power) can't really start until the lies are all stripped away.