The Theory of Banking (by Hans-Hermann Hoppe) - Introduction to Austrian Economics, 4of11

Find the whole series here: http://vforvoluntary.com/austrian-economics

Recorded September 2005, Klampenborg - Denmark.

Courtesy of Copenhagen Institute and Liberator.
http://coin.dk/
http://liberator.dk/

Download podcasts of this lecture series:
1 to 6 -- http://www.mediafire.com/?5r261ir33f1jo0f
7 to 11 -- http://www.mediafire.com/?jf51brw5qqwpr1i

Hans-Hermann Hoppe
http://en.wikipedia.org/wiki/Hans-Hermann_Hoppe

Ludwig von Mises Institute
http://mises.org/

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[seven8000]

I've seen all the Videos (Zeitgeist, Money as debt, Moneymasters,) etc. Still I have three (3) questions: (1) can the FRB buy directly treasury bonds from the government ? (2) does the FRB give the treasury any money gained from the interest of treasury bond or does it give it to its stockholders and (3) is it true that if all debt is payed back money would really disappear ?

[Nielsio]

@seven8000 I recommend asking these questions on the forum of the Mises Institute (mises DOT org).

[sony8877]

hans herman hoppe - history has him heroic

[PanzerDivisionBOM]

@sosofresh360

I was thinking of the work of my fellow countryman, Johan Norberg, in his book on the global financial crisis. He covered a variety of possible causes, including the recent changes in the regulatory structure and the risk assessment built on mathematical models with no common sense.

The Mises Wiki article does not mention Basel II by name, but does talk about the exotic assets and the government intervention in the subprime mortgage sector among others.

[sosofresh360]

@PanzerDivisionBOM Or also Financial engineering as well, it's worth while to look at Joseph Schumpeter concept of "Creative Destruction", it perfectly resonates with those highly risky but yet highly creative exotic instruments that were created in the laboratories of Wall Street. I've never come across an Austrian that has covered either of these, as of my limited reading of course, not much so im not challenging u, perhaps u could guide me to an Austrian who covers these concepts. Thanks.

[sosofresh360]

@PanzerDivisionBOM Or also Financial engineering as well, it's worth while to look at Joseph Schumpetters concept of "Creative Destruction", it perfectly resonates with those highly risky but yet highly creative exotic instruments that were created in the laboratories of Wall Street. I've never come across an Austrian that has covered either of these, as of my limited reading of course, not much so im not challenging u, perhaps u could guide me to an Austrian who covers these concepts. Thanks.

[sosofresh360]

@PanzerDivisionBOM, ok sure he may not have covered all the mechanics, but neither have Austrians, or at least the limited articles I have read in Austrian Theory, ever mentioned credit agencies as contributing a significant factor to the crisis. Credit agencies were the ones who rated those junk securities as AAA through a method called "structuring", but all it really is a bribe from multinational to rating agent. 

[PanzerDivisionBOM]

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- mention of Basel II. The shadow banking system which developed under those regulations has only one counterpart in history that I know of - Blat, the sanctioned Soviet system of organized black markets.

Finally, I might remark that Austrian Libertarians share Wolff's dissatisfaction with the current state of affairs. When Wolff talks of Capitalism, he means a Corporatist or "mixed" economy, different than the free market which Austrolibertarians advocate.

[PanzerDivisionBOM]

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- economic theory. He opposes foreign trade qua foreign trade as the pre-Classical mercantilists, and he seems to think that employment is an end in itself. Even Classical economic theory is sufficient to show the absurdity in this.

His characterization of the Great Depression is inaccurate. I leave to the eminent Austrian scholars to explain the particulars.

It also seems highly suspect to me that anyone can attempt to explain the causes of the current crisis without -

-

[PanzerDivisionBOM]

@sosofresh360

I've now seen about half of that video, and I feel I dare venture a few initial remarks.

First, he has some good points about the current crisis, with which the Austrians mostly agree. Shuffling good money into bad companies doesn't make those companies less bad. Bush's and Obama's policies have amounted to nothing more than such shuffling, and contribute only to prolonging and worsening the problem.

Unfortunately, Wolff's analysis is stunted by incorrect -

-

[sosofresh360]

watch?v=n30zO0ABFqc

[sosofresh360]

@PanzerDivisionBOM I agree but u should watch this lecture by Dr.Richard Wolff of the New School University and how this contraction is very different from the others. Uses charts and all to show u how and why the crisis deepens and why it'll last longer that others. Very much worth watching and informative i highly suggest it...here the link

[sosofresh360]

Check out how this Great Recession is different from those experienced in the past, a lecture given by Dr.Wolff of the New School University. Check it out