The Fed and Fractional Reserve Banking Caused the Great Depression - Milton Friedman

Milton Friedman explains the Great Depression. This clip comes from a 10 hour series of documentaries, available online: http://www.ideachannel.com/

Causes of the Great Depression:
The Federal Government's Monetary Policy
The Federal Reserve
The Absence of the Gold Standard
Fractional Reserve Banking

"Friedman was not blaming the gold standard for the depression, but the banks! The banks lend your money out when you put it into your account, without taking the money out of your account. (Fractional-reserve banking) Thus, your money is lent to someone else and deposited in theirs, while still remaining in your account.

This causes the total monetary supply to increase, thereby producing inflation and lowering the value of ever dollar in existence. The great depression was caused primarily by the banks that criminally caused inflation and, as Milton Friedman, F. A. Hayek, and Ben Bernanke (the chairman of the Federal Reserve) have said, by the monetary policy of the Federal Reserve whereby they intentionally caused deflation to counteract the inflation caused by the banks. This is what caused the depression!

Those two things (fractional-reserve banking and the Fed) are also the cause of the current economic recession. It was not the gold standard that caused the depression, but the lack of one! We were NOT adhering to the gold standard (that's the problem). If we had been, neither inflation nor deflation would have been a problem and the depression wouldn't have happened. And again, today we are falling into similar dangers because of a lack of adherence to the gold standard."

- an interesting quote from YouTube user AustroLibertarian89.

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[tsbloyer]

What year was this produced?