Abolish the Fed and Let the Market Take Care of Fractional-Reserve Banking

05/20/2014 Mises Wire Joseph T. Salerno

A very interesting post on the bionic mosquito blog elaborates the insights of Hans Hoppe and myself into a persuasive argument that the only reason that modern fractional-reserve demand deposits are accepted as money today is because of the federal deposit insurance guarantee backed up by the Fed as the monopoly money issuer and bailer-outer-of-last-resort.

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