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| Reference |
Bank - Wikipedia, the free encyclopedia
"A bank is a business that provides banking services for profit. Traditional banking services include receiving deposits of money, lending money and processing transactions. Some banks (called Banks of Issue) issue banknotes as legal tender. Many banks offer ancillary financial services to make additional profit; for example: selling insurance products, investment products or stock broking. ..." |
| Articles |
Anatomy of the Bank Run, by Murray N. Rothbard, The Free Market, Sep 1985
Explains fractional reserve banking, deposit insurance and monetary inflation
"... the depositor who thinks he has $10,000 in a bank is misled; in a proportionate sense, there is only, say, $1,000 or less there. And yet, both the checking depositor and the savings depositor think that they can withdraw their money at any time on demand. Obviously, such a system, which is considered fraud when practiced by other businesses, rests on a confidence trick ..." |
Cartels: Economists and Central Bankers, by Gary North, 11 Jul 2007
Related Topic: Murray N. Rothbard
Discusses why economics textbooks never delve into the necessity of central banking
"Those few people who understand the inherent moral fraud in all fractional reserve banking find that they are not understood by their peers. They also find that their arguments are not taken seriously by academic economists. They find it difficult to explain why the entire profession has made a monumental methodological error in not applying the theory of monopoly to central banking." |
The Prophet of the Great Depression, by Frank Shostak, 4 Oct 2006
"We can thus see here that as long as banks facilitate commodity credit, they should be seen as agents of wealth generation. In contrast, whenever banks embark on the lending of circulation credit they in fact become agents of real wealth destruction. As opposed to commodity credit, circulation credit is not supported by any real saving. This type of credit is just an empty claim created by banks." |
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Inflation Deflation Red-flation Blue-flation, by Matthew Beller, Mises.org Daily Article, 24 Jul 2008
Related Topics: Inflation
Explains what is inflation, what is money, contrasts "bad" vs. "not-bad" inflation and analyzes the Federal Reserve's recent and potential actions
"When a depositor places a sum of money in a checking account at a fractional-reserve bank, the bank may loan out 90% of his deposit to another person with the assumption that the depositor will not withdraw all of his funds. When the bank extends such a loan, the depositor has effectively loaned his money to the borrower, but without his knowledge. In fact, both the depositor and the lender will have legal title to the same sum of money at the same time." |
Ludwig von Mises: Scholar, Creator, Hero, by Murray N. Rothbard, 1988
Related Topics: Ludwig von Mises, Ludwig von Mises Institute, Mont Pelerin Society, Socialism
"Mises distinguished two separate kinds of functions undertaken by banks: channeling savings into productive credit ('commodity credit'), and acting as a money-warehouse in holding cash for safekeeping. Both are legitimate and non-inflationary functions; the trouble comes when the money-warehouses issue and lend out phony warehouse receipts (notes or demand deposits) to cash that does not exist in the bank's vaults ('fiduciary credit')." |
The Mystery of Banking, by Joseph T. Salerno, The Mystery of Banking, Sep 2008
Related Topics: Murray N. Rothbard
Foreword to the 2008 Mises Institute edition
"Rothbard's presentation of the basic principles of money-and-banking theory in the first eleven chapters of the book guides the reader in unraveling the mystery of how the central bank operates to create money through the fractional-reserve banking system and how this leads to inflation of the money supply and a rise in overall prices in the economy." |
| Books |
The Mystery of Banking [PDF], by Murray N. Rothbard, 1983
Electronic text available at the Ludwig von Mises Institute |
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| Podcasts |
The Banks Are Broken, by Joseph T. Salerno, The Lew Rockwell Show, 22 Jul 2008
Lew asks Salerno why the entire banking industry is threatened if a big bank is allowed to go bankrupt |
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