Wednesday, August 13, 2014

The Guy Ron Paul Hired to Work on Monetary Policy

-Tom Woods
Yeah, you want to listen to that guy. I talked to Paul-Martin Foss, now executive director of the Carl Menger Center for the Study of Money and Banking, on my show today. Have a listen!


-Paul-Martin Foss
The Perfect Banking System

The perfect banking system, like the perfect monetary system, is one which serves the needs of consumers and savers, and not the needs of the government. It is a system in which entrants are free to enter and leave the market with a minimum of restrictions, and in which no banks are bailed out.

Almost since their creation, banks have been involved in a symbiotic relationship with government. Governments often found themselves short of money needed to engage in war. Banks, due to their deposit base, were a ready source of funds but needed assurances that their loans to the government would be paid back. They received this in the form of government protection of their business which developed into a system under which only those with a charter from the government would be permitted to engage in banking.