** Not Worth a Continental: Grappling with Greenbackers. What’s Wrong with Directly Issued Government Money? A vitally important discussion between Drew Hjelm and Aaron Brown **
Unfortunately we live in a world where the prevailing understanding of Money is the intellectual equivalent of “The Earth is Flat”.
Fortunately we have made excellent progress in our efforts to educate the public in the basics of Austrian Economics, which we like to refer to as “Reality Economics” – because Reality is not optional.
At Radio Free Market we present the A-B-C building blocks about Money and Banking that everyone should have been taught in High School (or earlier) but tragically were not.
We happily notice that more and more people recognize the fantastic errors in the Keynesian Model and the wrong headed statements of its adherents.
But is Keynesianism the only threat to sound money and banking?
There are some who call themselves conservatives or even libertarians who want to End The Fed and end Central Banking and then – incredibly – give complete control of the Money and Banking system to the Government – directly!
They are known as Greenbackers and this Monetary Socialist movement is the Next Intellectual Monster that – after Keynesianism is defeated – needs to be confronted and corrected.
At the root, Greenbackers see the Government Backed Bank System as being corrupt (which is correct) BUT only want to get rid of the Bankers – not the Government or its monopoly of force that makes a Central Bank possible!
Many are ardent libertarians in many other ways, where they would like to see more freedom and less Government intrusion, yet they are still “statist enough” to want the Government to have a Central Control of the entire Money/Banking System.
They merely want to change horses and keep riding in the same direction.
They also hate gold and silver and yearn for a paper money standard, but let politicians and bureaucrats be directly in control of the creation of that paper money that is not backed by anything.
Where did this idea come from that Government politicians and bureaucrats can print money and be trusted not to abuse that power?
Actually there is quite a history to this idea that goes back well over 150 years; unfortunately they either ignore history or present a history that never happened or is quite incomplete in its presentation. We encourage everyone to start off by reading this excellent overview of this movement.
What was the effect of Greenbackism during the Civil War and why do the Greenbackers ignore that prices went up 75% during that period?
Why did Hitler embrace this idea in WWII?
Answer: Because Greenbackism is a very useful tool to “The Warfare State”. (read more here)
How is it that Greenbackers continue to believe that “Good intentions lead to good results”?
Many people who are new to libertarianism and the excellent idea to END THE FED are nevertheless led astray by the extremely flawed notions of Monetary Socialism that is embodied in the Greenbacker Movement.
This show is the first of many to come that will discuss this vitally important issue. It will give you a brand new perspective on why to keep government out of money.
This show was created and features a conversation between Aaron Brown and Drew Hjelm, both of whom are graduates of Mises University 2010 and 2011 and serve as Co-Guest Hosts. Both of these gentlemen are deeply educated in Economics and will be a part of this ongoing educational effort.
Other Recommended Articles
Interest Rates in a Gold Coin Standard
Ellen Brown Switches Sides, Praises Bernanke and the Federal Reserve, and Calls QE2 the FED’s Self-Redemption.
Sitting Ducks: Why the Tea Party Movement Is Vulnerable to Economic Charlatans, Ignoramuses, and Statists
What Has Government Done To Our Money? **
By Murray Rothbard
** NB: This classic book by Murray Rothbard is recommended by Ron Paul as the first book to read for those who want a solid understanding of Monetary Economics.
(reference: Ron Paul, The Revolution, A Manifesto, Grand Central Publishing, 2008 page 169)
Economic Calculation in the Socialist Commonwealth
By Ludwig von Mises
The Case for Gold.
By Ron Paul
Books by Greenbackers promoting their ideas
Play mp3 here RFM_Aaron_and_Drew_Final_021112