**Is there a nation or country that has an economy based on Austrian school?**

Ten years ago, Somalia ran out of cash, so they ordered a planeload from Britain. It landed at Mogadishu airport but the airport was being fought over by two or three warlords at the same time, so the plane unloaded huge pallets of cash and it sat there for months while the warlords argued over who controlled the warehouse in which it was stored by the delivery agents. Cash ran out in the markets of Modadishu, and finally a mission of merchants joined forces with the mullahs in town and succeeded in convincing the warlords to let them through and get the new cash into circulation. It was the first success of the mullahs, and they gained the peoples' trust. Within three years, the islamic courts became the dominant power in Mogadishu, drove out the warlords, and created a stable islamic government. All because they helped bring a planeload of fiat money to the people!

Such an economy could not be sustained.

and the medium of control was currency.

You mean there is some rogue country out there that can get away with being just?

Stomp them out now!

Good lord! Anyone throwing this freedom talk around should be silenced!

Go back to your cell and watch Fox News....they will scare you back into accepting the governments protection from everything including your constitution.

Remember, if the executive branch hadn't subverted the constitution you might have been killed by a terrorist.

Now the government is going to saddle up and protect you from free markets.

I have been told that free markets can foreclose your house, wipe out your retirement account and put you out of work all at once.

Thank god the government will protect us from those killer free markets! They are just awful!

Help!

Mr. Cheney! Please get out of the bunker, put down your shotgun and subvert the constitution! It is about to put me out of work!

I have only one suggestion.

Step away from the TV...slowly take the remote and press the "off" button. Take a deep breath...it's over now...it was just a movie and now it's over.

R3ovlUTION Mexico allows a competing currancy. At Bank Azteca
http://news.silverseek.co...

Inhabitants of the San Blas Archipelago, off the coast of Panama, use coconuts as currency.

"Every island in the San Blas archipelago, no matter how enticingly deserted, and every palm tree on it, is owned by someone. This means that every coconut you see on a tree or lying in the sand, is also owned by someone. The coconuts are used as part of the Kuna economy, so you should never help yourself."

For more information, click here

America had central banks before the Fed (see http://en.wikipedia.org/w... for example) but for much of our history -- and as Section 10 of the Constitution still requires -- our money was gold and silver. The US became the wealthiest (and most free) nation in the world during that time; anyone who tells you a gold standard "can't work" clearly doesn't know what he's talking about. For that matter, much of the world was on a gold standard of one sort or another until the early 20th century.

Up until FDR forced Americans to turn in their gold in 1933, your grandparents (or great-grandparents, or whatnot) could slap a $20 bill on the counter at a bank or a hardware store and exchange it for a one-ounce $20 gold coin. Up until 1964, silver US coins actually contained significant amounts of silver.

Wouldn't it be nice to know your dollars would retain their value? Wouldn't it make business and other planning easier? Wouldn't it make your savings more secure? That's exactly how things used to be in this country: a dollar actually bought MORE in 1900 than it did a hundred years earlier.

From Grand Theft America, October 31, 2008:
http://www.strike-the-roo...

The Vampire State Collapses, Having Drained Its Host

Nearly a century ago, two audacious mechanisms were put into place to drain wealth and power from the American people and to funnel that wealth and power to an elite. Today's crisis has arisen because essentially all of our wealth and power has by now been taken from us, and the illusion of normalcy can no longer be maintained.

The "two audacious mechanisms" for taking wealth from the American people are, of course, income taxation and fiat currency.

The answer is .....unfortunately, No. There are some that are more free market, but that's as far as it goes.

www.mises.org is a fabulous resource for things like this.

Of course in Europe you have Monaco and Andorra, but just because a country doesn't have a Central Bank does not mean that they would practice either sound monetary economics or Austrian Economics.

http://www.1776solution.b...

I would remind you that extremism in the defense of liberty is no vice! And let me remind you also that moderation in the pursuit of justice is no virtue. Barry Goldwater

I don't know the answer to your question but I'd say that it wouldn't matter if one did because it'd be viewed as a "terrorist nation" due to it not playing ball with the worldwide fraud/debt system.

doesn't communicate well since Austria doesn't practive Misesian,
certainly not Rothbardian economics.

I've been told Hong Kong had some very free-market laws at one point
But no nation has really solved the fractional reserve banking problem the last couple of centuries

Medieval Iceland was almost a purely free market society, even the law arose from private courts and from law making bodies which could literally be bought at a price. They still had a "state" but it was disconnected from geographical location and was in a sense voluntary since the people could freely choose which "goddard" (spelling?) to protect him. The poor, if they were aggressed against, could even sell their claim to a more powerful person who would then pursue the compensation for his own benefit. So it provided an extremely effective check on power and protection of human rights. They lasted 300 years before their first civil war (eventually the various set regions were monopolized), but they lasted an impressively long time and had a body of law that was extremely rich and complex. David Friedman compares Medieval Iceland to Athens in terms of cultural development.

However, because they still had in some sense delegated authority (although technically it was voluntary until it was monopolized) they eventually had internal conflict. It is an amazing testament to how stable a free market society could be, even considering that the Vikings were pretty much brutes! Just think what America could be like if it were purely voluntary! It would be incredible.

Down with the state (and sorry, but that includes the Constitution)!

To my best understadning, the central bank of Republic of China (Taiwan) is not controlled by private bankers like the Federal Reserve. It is directly under the control of the executive branch of the government. It prints currency without interest for the government. It controls the exchange rate of the New Taiwan Dollar and lends to banks in Taiwan. This model is not exactly a free market model, but because the government doesn't pay interest for the currency, so the government has no need to raise taxes to pay for the interest. That's why income taxes can be kept relatively low. Also, Taiwan still has a large amount of gold reserves to keep its currency strong. So, one thing the US can do, I think, is to get rid of the Fed and print money directly from the Treasure, such as the US Notes and the Greeebacks. Or nationalize the Fed and make it print money without interest for the country.

Perhaps the dark side of the moon.

Laissez-faire Blog

They sure are audacious and innovative. (I am not joking) a bunch of guys spontaneouly organized and earned 100 million dollars in Oil.

There is however, an Austrian Economist within the Central Bank of Central Banks, The Bank for International Settlements. I beleive his name is William White.

http://www.1776solution.b...

I would remind you that extremism in the defense of liberty is no vice! And let me remind you also that moderation in the pursuit of justice is no virtue. Barry Goldwater

in the english channel - guernsey and jersey.

NOTE PARAGRAPH 6

they are debt free:
Channel Islands model of debt-free money
Patricia Knox

Adapted extract from a submission to the Institute. - (i don't know what institute)

The British government, like most other governments, has delegated money-creation to the central bank. Money is therefore loaned at interest to the government by the central bank, instead of being issued debt-free by the government. Increasing amounts of tax revenue are therefore being used to repay the debt to the Bank of England. Since there is no mechanism for writing off any government debt, present day tax money is being used to pay interest on the accumulated debt of the past 300 years. High interest rates only aggravate the situation.

The banks should pay governments for a licence to create money. Governments should not pay interest.

As each year goes by, an increased percentage of tax revenue is swallowed up by the Bank of England, and social services are withdrawn as there is not enough money left to fund them.

Debt is like a cancer in society. It causes the ills of unemployment, bankruptcy, poverty and destitution, which lead, in turn, to crime and ill health. At some point in the future, at least in some countries, the rate of money-creation, increasing at an exponential rate, will be overtaken by the size of the government debt, increasing at an even faster exponential rate.

At that point, all wealth will go to pay an unrepayable loan, and there will be no social services. This is already the case in Third World countries, where the real wealth of those countries is exported to pay an unrepayable debt, and where every newborn baby is already in debt to foreign banks.

In the Channel Islands it is different. There, the government has not delegated the money-creating powers to the banks. There, the government creates debt-free money and spends it into the economy, rather than lending it into the economy, so that the government has no debt to the banks. Partly as a result, Jersey and Guernsey experience prosperity unknown in many countries. Income tax is only 20%. There is no VAT, inheritance tax or capital gains tax.

Governments everywhere should take back their power to create interest-free money, and nations would thus reach a new level of prosperity. An essential first step would be to make all loans unenforceable, like gambling debts are now, and then money lenders would become more responsible in their lending. Equity finance, where the investor shares in either profit or loss, rather than loans on fixed interest, would become the approved method of finance.

Patricia Knox, Pen Llywenan, Bodedern, Holyhead, Gwynedd, Wales LL65 4TS (tel 01407 740767).

http://www.voy.com/61461/...

Ron Paul is My President

You can research as much as you want, but every self-proclaimed national leader is a lover of power and money. These people are among the most ignorant, self-absorbed sub-human life forms you could ever meet (that's putting it nicely). They despise reason because it doesn't look attractive (to their benefit) in the short run. They honor foolishness and justify stupidity. Their folly will eventually ruin their nation so they'll just keep justifying their actions, assuring the public that everything is running just like it should (government insurance anyone? [good distraction to reality, right?]) Sound familiar?

The asininity of the Federal Reserve System, as well as the clueless activity of our national government, is not the exception but the rule the world over. See what we're up against?

Some African, Eastern, and European nations keep trying, but their greedy figureheads always win. The best anybody can ever do is to have a mixture of currencies.

--Cliff, Sioux City, Iowa
---------------------------------
My reasoning sounds pretty reasonable to me.
Secret key to happiness: Stay happy. Shhh!

perhaps as well? They would not have non-fiat money, but free flow in capital and currencies, except that it is secret.

The Vatican, perhaps? Maybe there are countries that have a mixture of fiat money and free trading in commodities. In Hong Kong one can buy (virtual) gold online even.

Panama has no central bank or at least they didn´t have one back in 2007. Read about it at mises: http://mises.org/story/25..., very interesting article. Panama is probably the most Austrian country out there

yes, Switzerland and Austria have central banks. Hong Kong has a monetary authority, that is not 100% a central bank, I think. Asia and the Middle East love commodities, we also heard Iran bought a lot of gold recently, and in India and China it is very valuable. I think the Fed is probably selling part of the gold to China. As the global crisis increase, I think smaller Asian countries like Singapore and also Kuwait or Dubai may start thinking along backing at least part of their money supply by gold or other commodities.
The point is, if the Fed would back the USD by gold, the other central banks will all eventually follow. Perhaps the initiate could come from outside the US. The Fed may eventually lower interest rates to 0% and after that and with the USD plunging, they may have to be replaced, as happened in the past.

that one is worth looking up and discovering an answer for.

I scanned through an article briefly a the other day about the strength of the economy in Panama. I do not believe the article mentioned a central bank there. Maybe worth checking out?

"There are none so blind as those who will not see. The most deluded people are those who choose to ignore what they already know." -John Heywood 1546
Dr. Ron Paul is my HERO!

?

eagerly awaiting an answer

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“The Roots of Violence: Wealth without work, Pleasure without conscience, Knowledge without character, Commerce without morality, Science without humanity, Worship without sacrific

Good Question.