Detlev Schlichter on "Paper Money Collapse" (Libertarian Alliance)

http://papermoneycollapse.com - On Monday the 11th of October 2010 Detlev Schlichter gave a talk on "Paper Money Collapse - The Folly of Elastic Money and the Coming Monetary Breakdown" to the Libertarian Alliance in London. Detlev is a long-standing libertarian who has worked for almost 20 years in the financial industry as a trader and portfolio manager. He has recently completed work on a book of Austrian Economics aimed at an audience in the City of London and the world of finance.

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• Detlev
• Schlichter
• Gold
• Paper
• Money
• Collapse
• Financial
• Crises
• Austrian
• School
• Economics
• Libertarian
• Alliance

[WizardKing78]

The paper-money system is the greatest fraud in human history. Fiat money is no longer backed by gold but worthless government bonds; themselves based on paper.

[malkdk]

Thank you for uploading this video. That was really an eye-opener.

[malkdk]

@nivekvb so actually, even though the money in your example is represented by a piece of paper it is what Detlev calls "commodity money" and is the solution he proposes to the current situation. so you are proposing the same solution as he is, which is returning to a form of money that is backed by a commodity (whether it be gold or "dentist work") rather than money that can be limitlessly produced without cost by central banks.

[malkdk]

@nivekvb at 09:15 Detlev elaborates on what he means when he says "paper money". when he uses this term he is referring to easily-produced fiat "paper money" not backed by anything. in your example the "paper money" *is* backed by something, ie. there is an underlying asset that this piece of paper represents. this is what he refers to as "commodity money".

[nivekvb]

See below: We can now create an IOU system that works across society. The IOU's are generated by work done and are signed by the people who had the work done for them. If, like my dentist, he is well respected, that voucher can be used again. I might say to my grocer can I give you this voucher for an hours work at my dentist in exchange for goods. This voucher can then be used over and over again until someone finally cashes it at my dentist. So why not have a paper money system without banks

[nivekvb]

This jerk hasn't got a clue as there is nothing wrong with paper money. What he is complaining about is how banks can create money out of thin air. We need to nationalise finance and return the monetary system back to the people, and we don't need any gold or any precious metals to make it work. Now, say, I do 8 hours work for my dentist in his garden and then he gives me a voucher -an IOU - for one hours dentistry at his surgery.This is paper money but it was created by real work being done

[dynomike1964]

This fucker is telling us to zig when he in fact will zag .

[bebeinpa]

Thank you for posting this. As Schlichter says, the Austrian School Economic theories are rarely if ever taught at the University level.

[lcpdesign]

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