A response to those who think the ethics of Ayn Rand’s philosophy, Objectivism, is consistent with fractional reserve banking. In the first part of this video, Paul McKeever gives the general history of how gold came to be money, how banks came into being, how banks started to lend on a fractional reserve, how and why central banks were formed, and how gold was replaced with paper. In the second part, Paul explains the true nature of inflation, and exactly what it was that Ayn Rand found to be ethically wrong about it.
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Interesting video, and your well spoken. I swear I was watching you and I kept thinking older Ben Affleck w/beard for some reason.
Interesting to see the poppy. I know remembrance day from my years in England, but I didn’t realize it’s Commonwealth-wide.
I am so glad I have never saved money. These vids show me that these parasites should not be trusted with it. I will never support capitalism by shares, savings or anything else.
BTW I live very well thank you. I work for 4 to 6 hour per day, 2 or 3 days per week and lack nothing.
@ORagnar Aristotle was a liar
@ORagnar the fed is a privately owned org. same with the state haha. Capitalism is crap. Individualist-socialist revolution !:D
@ORagnar
Rand was a fraud just like your argument taken from theology. She states that separation of church & state is “complete”, whatever that means. Fact is, the twin pillars of church & state (i.e. the Masonic, Jachin & Boaz) are not mutually exclusive since both are bridged by God (Masons are deist, not atheist).
Also, your leveraging is a fraud. No reserve leverages investment without moving the fulcrum of interest (which adds nothing to the reserve) to balance the difference.
@bondurango — Ayn Rand was not a fraud. She has, in fact, the most reality based philosophy known to me. Aristotle would be second down the line. Have you read her book “Introduction to Objectivist Epistemology?” It’s very heavy stuff.
She was against the Fed, because she believed in separation of economics and the state.
When I referred to leveraging, I was referring to the amount of money invested by banks, versus the amount of money in reserve.
@ORagnar
Ayn Rand was a fraud. Her followers worship her like a god. Objectivism is religion & it’s only thru faith, a disciple can proclaim she opposed the Fed.
The Fed is an outsourced, private contractor with an EXCLUSIVE contract to bypass the Treasury & issue paper currency. Nothing in the Constitution says the contractor MUST be a monopoly, a fractional bank or even a bank, at all.
The Treasury has the right to issue currency, interest free, with no leveraging, at all.
@ORagnar, the reason for the current leverage level is government: the moment we as a society asked our government to “protect” us from the risk of bank failure, risk information began to disappear. For instance, does FDIC insurance actually reduce banking risks? With risk information loss also comes the additional distortions which the regulatory capture brings. Our future path is clear: less centralization.
In other words, allow banks to inflate, deflate, live or die. Our biggest risk is the “all eggs in one basket” issue with using a central bank (the Federal Reserve system) to manage our entire money supply. Keep fractional banking but reintroduce market discipline back into the system.
@bondurango — Ayn Rand was not a fraud. She did want to eliminate the Fed, but it was much more encompassing than that, she wanted a separation of state and economics.
However, she wasn’t against fractional reserve banking, which is perfectly safe as it was practiced in the 1800s, when banks were only leveraged about 2 or 3 to 1. Today leveraging is at 30 to 1, thanks to government intervention.
Eliminating fractional reserve would reduce wealth creation potential. Consider returning to individual bank currencies as long as we can avoid rent-seeking (e.g., monopolies) and regulatory capture (government corruption). Some banks will fail. Too bad. As long as risk information flows accurately and reliably, customers can manage their risks in a modern, information rich, global market of banks. Capitalism is as fair an economic system as one can develop.
Ayn Rand & her objectivist followers are frauds. They cannot point to any undisputable evidence that she wanted to abolish the Fed. She was a monopoly capitalist & the Fed is a monopoy trust in violation of anti-trust laws. It’s a “power” utility generating currency based on the principle that money grows on trees. It’s value is based on the coercive power of government to ensure our currency denominates the value of oil (not gold), which is the defacto commodifcation of our “petro” dollar.
get out of debt. work hard and don’t pay the looters. DON”T PAY THEM DON”T JOIN THEM
you’re gonna crash one day if u keep talking & thinking while driving