“But if the problem isn’t in the application of the system, but it is the system, then all efforts to reform practice will fail, and fail miserably. This is what we believe the logic of economic argument leads one to conclude about central banking and government monopoly over the currency. We also believe that the logic of economics leads one to challenge the fiscal institutions of the modern tax state as well. Our current system, whether in Europe, or in the US, or in Latin America, or in Asia, is one where the social democratic system of fiscal centralization and central banking produces, rather than restrains, a cycle of deficits, debt and debasement of the currency. The world economy is in crisis precisely because of the institutional structures in operates within. Time for economists to do their job, we would say, and propose logically consistent institutional structures that will produce fiscal responsibility and sound money.”Read more.
Central Banking, Limited Purpose Banking, Free Banking…
Coordination Problem, October 4, 2010.
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