Back Up a Minute: Confusing Capitalism with Fractional Reserve Banking

Please Read this. Von Mises has a terrific site for those interested in further reading. Seriously, in a time when the enemies of Capitalism which to change, confuse and pervert meaning in order to retain their control (Such as Krugman et al.) it is paramount you have a working understanding of Free Market economics. You’re not getting that education from any mainstream outlet today. Cheers, Mike.

pundit from another planet

For the Ludwig Von Mises Institute‘s Mises Daily, August 06, 2014 Frank Hollenbeck writes:

Today, capitalism is blamed for our current disastrous economic and financial situation and a history of incessant booms and busts. Support for capitalism is eroding worldwide. In a recent global poll, 25 percent (up 2 percent from 2009) of respondents viewed free enterprise as “fatally flawed and needs to be replaced.” The number of Spaniards who hold this view increased from 29 percent in 2009 to 42 percent, the highest amongst those polled. In Indonesia, the percentage went from 17 percent to 32 percent.

Most, if not all, booms and busts originate with excess credit creation from the financial sector. These respondents, incorrectly, assume that this financial system structured on fractural reserve banking is an integral part of capitalism. It isn’t. It is fraud and a violation of property rights, and should be treated…

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About Mike

Background is in Media with a little History Major thrown in just to be annoying. View all posts by Mike

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