The Unadulterated Gold Standard Part I*

*It turns out that we did not publish Part 1 of Keith’s article on “The Unadulterated Gold Standard”. So apologies to readers who read Part II before Part I. Here it is. — JH

 The choice of the word “unadulterated” is not accidental.  There were many different kinds of gold standard, [...]


Money & Credit: Why Duration Mismatch Will Always Fail

I have written a number of pieces on fractional reserve banking and duration mismatch.  I have argued that the former is perfectly fine, both morally and economically, but the latter is not fine.  I have dissected the arguments made against fractional reserve banking, and pointed out that it is nothing more than a bank lending [...]


JPMorgan and Central Banking

Whenever I struggle with an issue, such as banking regulation and the JPM situation, I find that the eminent Dr. Frank Shostak has already solved the problem. I’ve been thinking a lot about the current banking system and how it perpetuates Too Big To Fail banks. There is a free market solution to the banking system, actually, a [...]


Gold Stocks vs. Gold Flows

Today, people who believe that gold is money think that one should hoard gold.  They seek to take possession personally.  Or when they have it stored professionally, they look for a private vault outside the banking system where they can (hopefully) trust their warehouse receipt.  And why shouldn’t they avoid the banking system?

 The corruption of the [...]


Essay: The Loan — An Exchange Of Wealth For Income

As the title of this essay suggests, a loan is an exchange of wealth for income.  Like everything else in a free market (imagine happier days of yore), it is a voluntary trade.  Contrary to the endemic language of victimization, both parties regard themselves as gaining thereby, or else they would not enter into the [...]


KeithGram: Fractional Reserve Banking Is Not The Problem

Mish has a teardown of the latest outrage of Bank of America. It seems BoA’s counterparties are uncomfortable with BoA’s derivatives position and/or equity and would like either more collateral (yeah, right?) or else move the risk to the division which owns the retail banking and deposits from the public.

Moral Hazard: 1


Keith Weiner: Irredeemable Currency vs. Gold Video

Our own Keith Weiner discusses “Irredeemable Currency vs. Gold.” For the rest of this lecture, please see it here.



Inflation: Where Cronyism Meets Poverty

Inflation is built into a monetary system that is designed, so it seems, to help political and financial classes exercise power over ordinary citizens, and to make us pay for the privilege.

As Sir Josiah Stamp, Director of Bank of England (1928 – 1941), said,

If you want to continue to be slaves of the [...]


Fractional Reserve is Not the Problem

In the United States, there are once again TV commercials advertising Adjustable Rate Mortgages (ARMs) for residential real estate.  Today, I saw one from Quicken Loans promoted with the tagline “why pay more in interest charges now just to know what rate you will have in 2018?” (they are offering a 7-year “teaser” rate and then [...]


Fractional Reserve Banking Debate: Part III

Following my last piece on fractional reserve banking responding to Mike “Mish” Shedlock, he has written another post that touches on my original paper.  He says, “Not only is FDIC a problem, it is outright fraudulent to guarantee deposits that cannot possibly be guaranteed in a fractional reserve Ponzi-scheme system.”

I don’t think his view [...]


Fractional Reserve Banking: Some Comments On The Debate

I wish to thank Keith Weiner and Mike Shedlock for their discussion on fractional reserve banking (FRB). For what it’s worth, Mish, I don’t think that Keith got it wrong or that he had intended to write a definitive article on the topic. I appreciate the fact that you have written about duration mismatch over [...]