The Mystery of Banking

Posted on 13 July 2017 by Murray N. Rothbard

Talk about great timing Rothbard s extraordinary book unravels the mystery of banking what is legitimate enterprise and what is a government backed shell game that can t last His explanation is clear enough for anyone to follow and yet precise and rigorous enough to be the best, textbook for college classes on the topic This is because its expositional clarity in its hitosry and theory is essentially unrivaled Most notably, he uses the T account method of explaining the relationship between deposits and loans, showing the inherent instability of fractional reserve banking and how it sets the stage for centralization, inflation, and the boost bust cycle.But there is here It is an explanation of money s origins and its meaning in the free market The abstract theory is here but always with real application in history and in modern banking practice Never does a paragraph go by without an example drawn from his massive knowledge of the subject. Read The Mystery of Banking – kino-fada.fr The Mystery of Banking by Murray N Rothbard Austrians have made pretty much all of their books free, which is part of why their ideas are far reaching.This book reads like a well written textbook and has basically three parts 1 A primer on supply and demand for money Those are parts I quoted from in my previous post.2 An explanation of how fractional reserve banking works.3 A history of banking in the U.K and U.S., with some prescriptions to how an ideal Rothbardian system would work.Wh The Mystery of Banking by Murray N Rothbard Austrians have made pretty much all of their books free, which is part of why their ideas are far reaching.This book reads like a well written textbook and has basically three parts 1 A primer on supply and demand for money Those are parts I quoted from in my previous post.2 An explanation of how fractional reserve banking works.3 A history of banking in the U.K and U.S., with some prescriptions to how an ideal Rothbardian system would work.While Von Mises and Rothbard build and develop from much earlier monetarists, they reach radically different conclusions from them Any increase in the overall pri...The Mystery of Banking exposes fractional reserve banking as a highly sophisticated ponzi scheme through practical, theoretical and historical perspectives It is an inherently fraudulent and inflationary monetary system that is operated by a central bank granted special privilege from government decree Money is pyramided on top of reserves where credit is arbitrarily created out of thin air and injected into the economy as if it were actual savings The early holders of the new money benefit a The Mystery of Banking exposes fractional reserve banking as a highly sophisticated ponzi scheme through practical, theoretical and historical perspectives It is an inherently fraudulent and inflationary monetary system that is operated by a central bank granted special privilege from government decree Money is pyramided on top of reserves where credit is arbitrarily created out of thin air and injected into the economy as if it were actual savings The early holders of the new money benefit at the expense of the rest of society the most afflicted are fixed income groups because the new money increases demand thus, it drives up prices also known as inflation.Money is subject to supply and demand schedules just as any other commodity except money is determined by purchasing power provided by an inverse sloping curve By increasing the money supply, it adds noeconomic value because money can t be exhausted in productio...Probably the best analysis out there of fractional reserve banking, the public subsidies granted to private banks, and the devastating effects this has on the economy, Essentially, central banking exists to co ordinate inflation amongst banks in order that natural limits on credit expansion are removed A central bank can effectively control expansion of the monetary base via reserve requirements and creation of new base money, client commerical banks then pyramid circulating bank credit on to Probably the best analysis out there of fractional reserve banking, the public subsidies granted to private banks, and the devastating effects this has on the economy, Essentially, central banking exists to co ordinate inflation amongst banks in order that natural limits on credit expansion are removed A central bank can effectively control expansion of the monetary base via reserve requirements and creation of new base money, client commerical banks then pyramid circulating bank credit on top of this This frees banks from the restraints of the profit and loss system by allowing them to create credit out of thin air, instead of being dependent on customer deposits for funds Once these conditio...I actually read this as a PDF This is classic Rothbard Well written, well within the reach of the average person, and even humorous Like What Has Government Done to Our Money , it s short and sweet This one quickly covers the concept of money, then gets into how increasingly sophisticated civilization has made it a bit harder to comprehend the actual definition of money supply, and then deals with the meat of the mystery of banking the conflating of loan banking and deposit banking There I actually read this as a PDF This is classic Rothbard Well written, well within the reach of the average person, and even humorous Like What Has Government Done to Our Money , it s short and sweet This one quickly covers the concept of money, then gets into how increasingly sophisticated civilization has made it a bit harder to comprehend the actual definition of money supply, and then deals with the meat of the mystery of banking the conflating of loan banking and deposit banking There is then talk of the development of central banks, some his...A fantastic read for our current times, as yet another bank credit bubble bursts around us Rothbard does an excellent job explaining the technicalities of money and banking in a refreshingly readable way I also found his narrative histories of central banking in Britain and the United States in the later chapters of the book to be immensely informative The author s steadfast attention to the fact that the bankers and thier friends in government are the chief and essentially the only benefic A fantastic read for our current times, as yet another bank credit bubble bursts around us Rothbard does an excellent job explaining the technicalities of money and banking in a refreshingly readable way I also found his narrative histories of central banking in Britain and the United States in the later chapters of the book to be immensely informative The author s stea...A good overview of the inner workings of fractional reserve banking The strongest characteristic of this book is that it can be easily understood by just about anyone Second strongest feature of it is that this edition contains a critique of the book itself, the author readily admits that in treating the free Scottish banking system relied on poorly researched historical data a truly commendable attitude on the part of the author.I do recommend this book to anyone interested in learning about A good overview of the inner workings of fractional reserve banking The strongest characteristic of this book is that it can be easily understood by just about anyone Second strongest feature of it is that this edition contains a critique of the book itself, the author readily admits that in treating the free Scottish banking system relied on poorly researched historical data a truly commendable attitude on the part of the author.I do r...I m going to copy a review of this book from my original article at The Mystery of Banking by Murray N Rothbard inclines toward the idealism of free banking, and it insists that fractional reserve banking system is the force behind perpetual boom and bust cycle of inflationary economies where banks are likely to find themselves in bankruptcy and requiring bailouts from central banks, in our case it would be the Federal Reserve Whether you and I even c I m going to copy a review of this book from my original article at The Mystery of Banking by Murray N Rothbard inclines toward the idealism of free banking, and it insists that fractional reserve banking system is the force behind perpetual boom and bust cycle of inflationary economies where banks are likely to find themselves in bankruptcy and requiring bailouts from central banks, in our case it would be the Federal Reserve Whether you and I even care or want to believe in a free banking system, this book is still a great read for us since it s so good at explaining the inner workings of our modern fractional reserve banking system To clarify if you misread, free banking isn t the same as fractional reserve banking, and this book supports the ideal of free banking system I surmise even a person who has the most naive perspectives on economy and banking in general will be able to eventually understand fully of th...This is a great book I m rating it five stars for its content and clarity It s information that I wish that I would have understood in junior high It s information that the vast majority of the world never learns Alas, we are beaten over the head by it daily.The book begins with a review of supply and demand theory written in a very approachable manor It then proves that the amount of money in the system is irrelevant as long as its stable The book then launches into a review of how the mo This is a great book I m rating it five stars for its content and clarity It s information that I wish that I would have understood in junior high It s information that the vast majority of the world never learns Alas, we are beaten over the head by it daily.The book begins with a review of supply and demand theory written in a very approachable manor It then proves that the amount of money in the system is irrelevant as long as its stable The book then launches into a revie...The Mystery of Banking is a full on attack of the central banking system by Rothbard Rothbard began with basic concepts such as supply and demand, Says law, gold standard, etc to complex ideas on demand deposit, fiat money, reserve banking etc While attacking the fiat money...Presents a great argument for a gold standard, free banking, non fractional banking, and the abolishment of the federal reserve There is a good exposition of the current fractional banking system, the history leading up to it, and arguments as well as a pl...

13 July 2017

Murray N. Rothbard