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| Joined: | Mon Nov 21st, 2005 |
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For the past few months, the government has been working to drive down this speculative investing. On Feb. 26, China's State Council launched a new "special task force" that accurately could be referred to as the "get-those-idiots-to-stop-borrowing-to-gamble-on-the-stock-exchanges" team. Its express goal is to get the Chinese domestic security brokers to lay off such speculative decision-making, while also putting a crimp in the source of the subsidized capital.
http://www.lewrockwell.com/north/north512.html
One solution is free banking. This was Ludwig von Mises’ suggestion. There would be no bank regulation, no central bank monopolies, no bank licensing, and no legal barriers to entry. Let the most efficient banks win! In other words, the solution is a free market in money.
Another solution is 100% reserve banking. Banks would not be allowed to issue more receipts for gold or silver than they have on deposit. Anything else is fraud. There would be regulation and supervision to make sure deposits matched loans. This was Murray Rothbard’s solution. The question is: Regulation by whom? With what authority?
A. Free market in money
B. The other choice
http://www.hti.umich.edu/cgi/t/text/pageviewer-idx?c=labadie;cc=labadie;idno=2916966.0001.001;size=l;frm=frameset;seq=3;view=image;page=root
http://www.perfecteconomy.com/index.html
Last edited on Sat Mar 3rd, 2007 06:32 pm by Joe Kelley