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Tuesday, July 17, 2012

The Stunning Lack of Historical Curiosity of the 100%-Reservers

A main "historical method" of the 100%-ers seems to be to imagine how they think free banking would have worked, and then to assert that it actually worked that way. e.g. "I imagine that no fractional reserve accounts ever had a 'when available' clause, and therefore, none did!"

Here, George Selgin uses actual warehouse receipts and actual fractional reserve notes to make nonsense of Rothbard's claim that FRB notes were "counterfeit" warehouse receipts.

A sub-species of the above "method": I often see 100%-ers "correcting" George on how free banking worked. Here is what you are up against: Sandy Ikeda told me that he once stood with George in the Bobst Library at NYU. George indicated a huge wall of books on money and banking, and said: "I'm going to read every one of those." Sandy concluded, "And you know, I think he pretty much has."

You, 100%-reserver, have read three articles at Mises.org on the subject. Don't be an ass and try to tell George he doesn't know how free banking actually functioned!

3 comments:

  1. When you make fun of the 100% reserve guys, I feel like you are making fun of a relative who has special needs. Yes, free banking will allow the people to decide how much fractional reserve banking they are down with, but stop punching the down's syndrome kids in the belly already!

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    Replies
    1. August, I understand, but if they just back off insulting George and whatnot, I'd lay off their belly.

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  2. If only Rothbard and Salerno had read some books. Damn.

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