The Gold Standard The Gold Standard Institute

Issue #41 15 May 2014 1

The Gold Standard
The journal of The Gold Standard Institute

Editor Philip Barton
Regular contributors Rudy Fritsch
Keith Weiner
Sebastian Younan
Occasional contributors Thomas Bachheimer
Ronald Stoeferle
Publius
John Butler
Charles Vollum

The Gold Standard Institute

The purpose of the Institute is to promote an
unadulterated Gold Standard

www.goldstandardinstitute.net

President Philip Barton
President Europe Thomas Bachheimer
President USA Keith Weiner
President Australia Sebastian Younan
Editor-in-Chief Rudy Fritsch


Membership Levels

Annual Member US$100 per year
Lifetime Member US$3,500
Gold Member US$15,000
Gold Knight US$350,000
Annual Corporate Member US$2,000
Contents
Editorial ........................................................................... 1
News ................................................................................. 2
The remarkable metamorphosis of the Yuan ............ 2
Retiring ............................................................................. 3
The Lazy 1970s vs. the Frenetic 2000s ..................... 5
New Austrian Economics ............................................. 6

Editorial
TGSI has been pounding the table in favor of the
Unadulterated Gold Standard for lo these many
years... is it time for a tighter focus, is it time to start
pounding the table for the Unadulterated Gold
Coin standard?
The Unadulterated Gold Standard is different from
the Classical Gold Standard as practiced in the
nineteenth century in that it excludes Fiduciary
media... that is, bank notes in circulation backed by
loose promises vs. bank notes backed by physical
Gold in the vault, and by Gold Bills of Exchange
that mature into Gold in less than 91 days in the
portfolio.
Fiduciary media open the floodgates of
manipulation; indeed, monetization of government
debt is the classic example. Treasury bonds on the
asset side of the Central Banks balance sheet match
bank notes (Dollars, Euros, etc.) on the liability side.
This process is unlimited; Governments can and do
and have issued bonds to the sky... and the CBs can
and do and have created (printed) Dollars to the
sky.
So, is eliminating unlimited Fiat currency printing the
main thrust of the Unadulterated Gold Standard...
and does it accomplish this aim? Well, the answer is
a clear no... and yes. In fact, eliminating unlimited
printing is treating a symptom, not curing the
disease.
The disease of our monetary system lies in the
concentration of power in a (very) few hands; a few
hands that can be corrupt, can be misguided, can be
coerced... and can act contrary to the best interest of
the real economy, and contrary to the best interest of
the average wage earner. These few hands act in
their own self-interest... while ever pretending that
they act for the common good.
Let us remember the Golden Rule; he who has the
Gold makes the rules. If Gold lies in a (very) few
hands, then rules are written by those hands. If Gold
lies in millions of hands throughout the land, then
many diverse hands will write the rules.
It is vital to differentiate a Gold Bullion standard,
The Gold Standard The Gold Standard Institute
Issue #41 15 May 2014 2

whether unadulterated or not, from a Gold Coin
standard. Bullion in the form of bars is mainly for
the very rich; a Kilo bar of Gold today buys around
$40,000 USD... a figure much too big for every day
trade. A hundred ounce bar is valued at around
$120,000. Guess what a Comex good delivery 400
Oz bar costs?
On the other hand, the Gold Sovereign coin, the
Gold Franc, the Gold Napoleon all weigh in at 7.98
g, around 0.2566 Troy oz... at a current cost of about
$400. These coins in circulation were the heart of the
Classical Gold standard. A $400 coin is much more
amenable to being held and circulated by the masses;
especially if accompanied by Silver coins that
evaluate at around $25; about 1/15 th value of the
same mass of Gold.
Only the Unadulterated Gold Coin Standard ensures
not only that money is honest, but most importantly
ensures that this honest money stays in the hands of
ordinary people, not in the hands of powerful
(pseudo) elites. One Sovereign coin represents one
Sovereign vote. A true democracy; where sovereign
power lies in the hands of the people.
Lets start pounding the table for the Unadulterated
Gold Coin Standard.
Rudy J. Fritsch
News
Forbes: Inflation is Counterfeiting.

Forbes: Super clear article by Keith Weiner on the
destruction of capital caused by falling interest rates.
Recommended reading.

Two interviews in German with Thomas
Bachheimer: Wirtschafts Blatt and Epoch Times.

Merced Sun-Star: 1849 Mormon Gold coin sold at
auction. Made from Gold from the California Gold
rush and one of only 46 minted.
Peninsula Qatar: Dubai plans huge new Gold
refinery.

Gulf Today: Turkey contributed to papers strength
in March.

Mineweb: Referendum in Switzerland to decide 20%
Gold rule.

India Times: The Kerala Temple, famous for its vast
Gold hoard amongst other treasures, was placed in
the safekeeping of the State government of Kerala
for security reasons! Youll never guess what
happened.

NPR: Gold obsession pays dividend for Indian
women.
The remarkable metamorphosis of the
Yuan
Chinas Yuan has until recently been a heavily
controlled currency, and pegged tightly to the US
dollar. This makes the changes that have been taking
place since 2009 all the more remarkable:
1. In a first step of opening the currency system
towards the West, the government allowed the
400 largest corporations to make intra-Asian
deals without having to report individual
transactions to Beijing.
2. The increase in gold reserves by approx. 500
to now 1000 tons is as such not exceptional.
These 1,000 tons represent approx. 1.6% of
Chinese US Dollar reserves, which in 2009
was a relatively small gold stock by
international standards. However, one should
not disregard the fact that China never
engages in haphazard actions but rather
pursues long-term economic policies. This
allows the conclusion that the biggest country
on earth is on track to amass a large stock of
gold reserves.
The Gold Standard The Gold Standard Institute
Issue #41 15 May 2014 3

But back to the present: the Chinese government has
consistently followed through on the measures it
began in 2009. The economic opening towards the
West and steadily growing exports culminating in its
rise to the worlds biggest trading nation brought
about the necessity of liberalising the currency to the
same extent as the economy. Now the Peoples Bank
of China (PBoC) and the German Bundesbank
agreed to install a clearing bank in Frankfurt to
handle transactions denominated in Yuan. This is a
first in modern Chinese trade history.
This groundbreaking agreement will lead to two
major improvements:
Trade between China and Europe will be
much easier;
Chinese companies will have better access to
European capital markets.
Both issues are also of major importance to
German companies especially export-oriented
small and medium-sized ones as it makes their life
much easier, says Michael Kemmer, President of
the German banking association (Bankenverband).
But also on a global scale the importance of this
agreement should not be underestimated, since trade
between China and Europe need not be handled via
the US Dollar anymore. The direct convertibility of
Yuan and Euro saves European trading partners
approx. EUR 5bn per year and their Chinese
counterparts benefit as well.
At the same time, the fluctuation margin of Yuan
versus Dollar has been increased which makes the
currency more flexible and also should help Chinese
exporters via depreciation.
Gold backing and economic opening in conjunction
pose a major threat to the global US Dollar
hegemony. These measures work towards Chinas
strategy of counterbalancing the Dollars dominant
position, according to a Chinese economist. They
form a part of the Russo-Asian strategy of putting a
massive dent in the US pre-eminence. The days of
the Dollar as the worlds sole reserve currency seem
to be drawing to a close. Furthermore, the China
Morning Post recently reported that approx. 40
central banks are significantly invested in Yuan while
reducing their US Dollar exposure, despite the
hitherto close Dollar peg of the Yuan.
Watch this space, as this shift in the global currency
system will affect us all in no small measure!
Thomas Bachheimer
President the Gold Standard Institute Europe
Retiring
The Australian political arena is currently in the
midst of a long and drawn out debate consuming
newspaper headlines and television commentary.
The debate concerns the proposed changes to the
national retirement age. Australias Treasurer Joe
Hockey has indicated that the retirement age, to be
handed down in next months budget, will be raised
from 67 years old to 70 years old starting in 2023.
The proposal has created both friend and foe as all
sides of the political landscape opine. Interestingly
though, for all the talk that has been going on and
there has been an earful it can all be summarised as
largely non-speak as all sides seem to be agreeing
with each other on principle.
Though this move is being spun as a requirement of
a population which is living longer, the more
economically savvy would probably realise that the
Treasurer is representing a treasury which in fact has
no treasure (so they will most likely mortgage the
unborn with greater and greater deficits). The
tragedy of this debate is not what is being said, but
rather what is not being asked. This publication will
ask, what will not, and answer, what should be:
1. Should there be a government supported retirement pension?
No. A government cannot guarantee a pension any
more than it can guarantee the weather. In providing
pension support, the government must expropriate
the resources of those who are still working to
support those who dont. This is a fact, as a
government is incapable of producing. By
expropriating the resources of another, the
government invariably violates property rights. This
is a contradictory function of government. How can
the government defend individual rights and
simultaneously violate property rights? The answer is
it cannot. One destroys the other.
The Gold Standard The Gold Standard Institute
Issue #41 15 May 2014 4

2. But how do you provide a pension for those during
senescence?
Like any other material good, an individual must be
freely able to pursue the value they require.
Retirement like any other good must be earned. No
one can guarantee a lifestyle. Retirement requires
one to forgo immediate consumption for the future.
3. But is it right to force those who are currently receiving a
pension back out of retirement?
No. For those who are currently in a government
supported retirement the government should
continue to support those individuals. This is
because they have been taxed in the past under the
pretence that they will be able to access this support
in the future. The government must uphold its
obligation to those dependent upon the system (and
those close to being so) but allow younger
generations to leave the system.
4. Leave the system? What does this mean practically?
This means allowing individuals to be able to
support themselves by their own effort. This would
entail reducing government taxes and services whilst
repealing most forms of regulation and government
control.
5. That would be revolutionary and cause great distress, would
there be anything else?
It is true that this would cause great change as
individual autonomy is respected, but it would
transform the society from one of dependence to
one of mutually beneficial cooperation. The real
distress will occur is the current trend of further
control and deteriorating liberty continues.
The final requirement would require freely
circulating gold and silver coinage, which is to
abandon legal tender laws. This is no small or easy
task. Yet the monetary system is in terrible treat of
implosion under its tower of irredeemable paper.
The rediscovery of a gold standard must take place
with an introduction of gold bonds trading side by
side with government bonds. That should allow
private pension funds an opportunity to bring
solvency to their funds.
6. Why are gold bonds necessary?
They are necessary as, besides those dependent upon
government retirement, many individuals, believing
that they were being responsible for themselves,
have invested their retirement savings into funds
which are themselves heavily dependent upon
government bonds (consider the 30 year T bond
with its declining yield as pension funds today rush
in for whatever yield they can find, further flattening
the yield). By allowing gold bonds to trade side by
side with government bonds, these funds will be
given the opportunity to rebalance their portfolios.
7. Why cant the government merely balance the budget like it
has done in the past and still continue providing pension
support?
The ability to balance the budget, especially for the
US government, is almost impossible as the
irredeemable monetary system is predicated upon the
expansion of greater and greater debt. Balancing the
budget will not solve the medium to long term
instability of the monetary system.
8. So without having a revolution, what can the concerned
individual do to prepare for their twilight years?
Owning gold and silver as part of ones money
holding is wise. The less debt one accumulates is
optimal especially as the economy slides towards
deflation.
Yet one should actively inform friends and
colleagues about the merit of a free society. Consider
writing to your Member of Parliament or
congressman expressing you concerning with the
tyranny of the state. It is never too late to do the
right thing.
It is most likely that the retirement pension age will
be raised to 70 years old. You will hear both political
sides cry wolf but you will not hear any defend the
individual. In a free society the government would
have no interest in the private affairs of its citizens
retirement. To observe how far one has drifted,
consider how both sides of politics believes that you
are their property to dispose of.
Sebastian Younan
President the Gold Standard Institute Australia
The Gold Standard The Gold Standard Institute
Issue #41 15 May 2014 5

The Lazy 1970s vs. the Frenetic
2000s
Many people today see the Feds Quantitative Easing
as money printing. They remember what happened
in the 1970s, and they instantly jump to conclusions.
However, we live in a different world. To illustrate
this, consider the following story about Joe, a
promising and eager young manager in a struggling
manufacturing company.
Joe excitedly walks into the boardroom and pitches
his idea. Lets borrow a billion dollars. We can use
it to build a massive warehouse and to buy massive
quantities of our raw materials!
The senior management team stares at him. The
CEO demands, Why?
We need to have a stockpile at every level. We
should start with 3 months of raw materials, and a
three-month buffer of work-in-progress in between
every one of the 27 steps of our manufacturing line.
And even better, we need to warehouse finished
product. We shouldnt ship anything that hasnt been
sitting for at least 4 months. Ideally six, but we can
start with four. Joe has the bit in his teeth now.
He rushes on. Bernanke has printed so much
money, and Yellen is going to continue. We already
have massive inflation and its going to get worse! By
borrowing to buy stuff that is only going up in price,
we can make extra profits and protect ourselves
from supply shocks as the cost of commodities rises
out of sight!
The CFO leans over to whisper in the ear of a young
assistant, Bill. Bill does a quick Google search and
finds the price of copper, which is one of the most
important raw materials the company buys. Bill puts
the copper chart up on the screen. It has fallen a
third over the past few years.
Joe will be lucky to remain employed when he leaves
the room. To be fair to him, his mistake is simply to
try to implement a business strategy around what
most casual observers and many economists believe.
Sometimes, the best way to debunk an idea is to take
it seriously.
Though it makes no sense today, holding inventory
was not the crazy idea of a young fool back in the
1970s. It was how many businesses conducted
business. In that era, the game was to accumulate
inventories. The more, the better. First people were
trading excess cash for inventories. I can recall my
parents stockpiling things like canned tuna fish. It
was better to keep ones wealth stored in a durable
food product than in a bank account. Consumer
prices were rising about 20 percent per year.
Next, companies began selling bonds to finance
inventory growth. This pushes down the bond price,
which is the same thing as pushing up the interest
rate. And of course it pushes up prices.
In the 1970s, cash was trash. Inventories rose
relentlessly in value, at least as measured in terms of
the dollar. This, by the way, is a great example of
how irredeemable money distorts the economy. You
arent producing any more, or creating any kind of
new wealth, and yet, you are rewarded with a profit.
Now we have the opposite condition. Since the
interest rate began falling in the early 1980s,
companies have been finding ways to reduce
inventory accumulation. The Lean manufacturing
movement began to gain acceptance at this time.
Lean, also known as the Toyota Way, defines
inventorysuch as work-in-progress sitting on a
shelfas waste. Lean is all about eliminating waste.
Today, cash is king. Excess inventory quickly
becomes obsolete.
Companies are not borrowing to hold inventory, but
to expand production when they can make a profit
above the cost of capital. Since the interest rate
keeps falling, the hurdle to get over for minimum
acceptable profit keeps going lower.
Think of it this way, if you manufactured handheld
electronic devices, would you want to keep inventory
a minute longer than you had to? Of course not,
because your competitor is about to release a new
model that will make your product less desirable, or
even unsalable. How about clothing? Cars?
In the 1970s, the interest rate was rising. When a
worn-out plant needed replacing, it may not have
The Gold Standard The Gold Standard Institute
Issue #41 15 May 2014 6

been feasible to borrow to replace it. Thats because
the new interest rate was much higher than at the
time when the plant was first acquired, a decade or
more earlier.
This is the connection between the rate of interest
and the rate of profit. Its impossible to borrow at a
higher rate than the profit one hopes to earn. A
rising rate will therefore lead to rising margins, and a
falling rate to falling margins.
Other than the problem of financing plant
replacement, business was easy. Sleepy
conglomerates had travel policies that allowed
managers and executives to fly first class, even for
domestic travel. With the cost of borrowing rising all
the time, profit margins were expanding. And there
was the kicker, holding inventory before selling it
fattened margins further.
Business had a lazy pace to it, as I look at it today
(though business managers at the time might not
have agreed with that characterization).
In comparison, today it is the opposite. Limitless
oceans of dirt-cheap credit issue forth, like effluent
from the worlds central banks. The problem is not
replacing worn-out plant when the cost of capital is
higher. The problem is that every competitor has
ever-cheaper cost of capital. The challenge is that
rapid product cycles are driving rapid obsolescence.
It is harder and harder to recoup design and tooling
expenses. Inventory that sits for a week may have to
be liquidated at a massive discount. Profit margins
are under constant pressure.
Business executives routinely fly coach, even for
international travel.
If the word for the 1970s business environment was
lazy, the word for todays climate is frenetic.
Neither is the ideal behavior for a rational enterprise.
They are the direct fault of the regime of
irredeemable paper money.
Everyones attention is misdirected towards prices. Is
the Consumer Price Index rising? Is it rising more
than expected? How about the producer price index?
Is that dropping into the dread D-worddeflation?
Its the greatest economic sleight of hand ever
perpetrated.
Instead of zeroing in on prices, we should be looking
at the enormous distortions of our centrally banked
irredeemable currency. We have bubbles,
malinvestment, insolvencies, volatility, with
exponentially rising debt and derivatives outstanding.
Keith Weiner
President of the Gold Standard Institute USA
New Austrian Economics
Unless you have been following my writing in this
journal from the beginning, you may not know how
I came to be involved with TGSI in the first place...
and my story is pertinent to this article, so bear with
me for a short recap.
It all began in 1956, and the Hungarian revolution.
My dad was a true Hungarian patriot, and when the
Soviet tanks rolled to suppress Hungarian freedom,
he had little choice; stay in Hungary and face the
music... or run for it.
Well, he chose to run and took his family with him...
my Mom and me. We ended up in Canada, starting a
new life with nothing but the shirts on our backs. My
father spoke neither French nor English, but he was
a tool and die maker, could read the language of
engineering drawings, and soon had a machinists
job... indeed two jobs, the second one at night
repairing outboard motors.
My dad also had a simple philosophy; better to be
your own boss in a small business than to work for a
boss in a big job. As soon as he accumulated a bit of
capital (no borrowing for him) he bought a piece of
land, built a small work shop, and installed a multi
spindle automatic screw machine.
He quit the second job, and started to do contract
work on his machine; Ferro Products Co. Ltd. was
born. Soon my Mom was working there as well, and
once the company was up and running, Dad quit his
first job and ran the company full time. Soon enough
I also started to work there, as a teenager... and have
been at this my whole life.
Where it got interesting was about ten years ago;
Ferro Products had developed the Allsteel line of
The Gold Standard The Gold Standard Institute
Issue #41 15 May 2014 7

metal forming machinery (still around, but no longer
manufactured in Canada) and prospered... but then
the wheels came off.
Manufacturing in North America collapsed, and as
you are no doubt aware, headed offshore... mainly to
China. I wanted to understand why a company that
had been successful and profitable for decades
suddenly produced losses and had to be shut down. I
figured that the answers lay in economics, the
underpinning of investments. Well, I was wrong... at
least as far as mainstream economics is concerned.
Ideas such as the efficient market hypothesis, such
as supply and demand curves and other bits seemed
absurd, with no relationship to the real business
world I came from. Then I discovered Austrian
Economics, grounded in Human Action... and felt I
had found the answers to my many questions.
Indeed, I became a bit of a Von Mises disciple,
having absorbed his tome Human Action. I thought
I had all the answers... until I read some criticism of
Mises and his work by, of all people, some
Hungarian called Fekete. Well, I was determined to
debunk his stuff... how dare anyone criticize the
work of the great Mises.
Fekete claimed that on page 436 of Human Action,
Mises states that a fully mature claim against Gold is
as good as Gold itself. Well, I certainly know better
than this; we escaped Hungary by presenting the
border guards Gold watches... not paper claims, not
Forint, not Dollars... claims against Gold are NOT
Gold itself. Did Mises really say this?
I pulled Human Action off my shelf, opened it to
page 436 and sure enough, there it was in black and
white; Mises has conflated claims against Gold with
Gold itself. So much for my hero worship of Mises,
and a new respect for Professor Fekete. I started my
search for economic answers all over again. I
downloaded and read every page I could find of
Professor Feketes work, and after months of study
things started to fall into place.
I started to understand the Classical Gold Standard,
its benefits, its failings, and what it would take to
return the world to honest money... and the
disastrous consequences of trying to carry on with
the current Fiat system. I was disappointed when I
finished reading all the Fekete articles and stories...
economics 101, The Second Greatest Story Ever
Told, The Ten Pillars of Sound Money, economics
102... because there was no more. I was eager to
study more of the Professors work, but I had run
out of material.
Imagine my delight when I heard that the Professor
was starting Gold Standard University Live! I
could actually meet the Professor, and hear him talk
in person. I booked a flight to Hungary in a flash.
By the second session of GSU Live, I knew that this
was a really important happening. Professor Fekete
has knowledge that is vital to the world economy,
knowledge nearly lost. Perhaps he was the last
person left on Earth who had experience and
knowledge of how the Classical Gold Standard
actually worked, and of how it was sabotaged and
replace by the current Fiat disaster... certainly he is
the only monetary scientist with this knowledge.
I corralled the Professor while we were relaxing in a
local Hungarian spa, and pledged my personal
commitment to do whatever I could to preserve
and disseminate his knowledge of Gold and the
Gold Standard. The die was cast.
Interestingly, at this same session I met a lanky,
friendly Australian chap by the name of Philip
Barton... who I first thought was the editor of the
Australian newsletter The Privateer... but who turned
out to be a restaurateur from Melbourne. Now if you
are curious as to what an Australian restaurant owner
was doing at a session of Gold Standard University
Live in Hungary, so was I.
Turns out that Philip was not so sure himself. Philip
was a rooky at economics, and somewhat lost. In
fact, he kept asking me what did the Professor mean
when he said ____ ? Fill in the blank. I explained
things, and so our friendship started. It continued
after he returned to Australia... and for months, I
kept getting e-mails from Philip with what did the
Professor mean when he said ____ ... and I kept
answering.
Eventually, Philip suggested I should write a book,
as he was not the only person who did not quite get
what the Professor was talking about... and so I did...
write a book, that is. In fact, the spark that ignited
Beyond Mises as well as TGSI was struck at this
session. Indeed, once I understood that Philip was
The Gold Standard The Gold Standard Institute
Issue #41 15 May 2014 8

serious, that he and TGSI would work to preserve
and disseminate the Professors invaluable
knowledge, I extended my commitment to do
whatever I could to support the Gold Standard
Institute.
Well, Philip went back to Australia, and meanwhile
European friends of the Professor took up his cause
as well. Soon Fekete Research was announced, then
the New Austrian School of Economics. The key
difference is that NASoE is committed not only to
preserve and disseminate the Professors work... but
to carry it further. I am tickled pink that my
commitment has come full circle.
The last bit of this story is that a young, energetic,
erudite... and passionate... Professor joined NASoE.
He is extremely well read in economics history,
understands the Professors work, and is committed
to the cause of honest money, to Gold, to the
Unadulterated Gold Coin Standard... and is now
director of NASoE. His name is Professor Juan
Ramn Rallo.
NASoE held a conference in Madrid, Spain a few
weeks ago. I was one of the speakers... and so was
Professor Rallo. As usual, my knowledge expanded, I
gained new insights... and this time, one of the new
insight came from Professor Rallos closing talk.
He walked up to the whiteboard and drew a couple
of vertical lines, dividing the board into three
sections. On the left he wrote the name of classical
economist David Ricardo. On the right he wrote the
notorious name of John Law. In the middle went the
name of famous natural philosopher Adam Smith.
Under the David Ricardo column went names like
Von Mises, Murray Rothbard, Milton Friedman, the
Chicago School... and he called this column the
monetarists... those who believe that only money
can perform as a medium of exchange... that credit
cannot. Now this is patently wrong; in world trade,
credit does the heavy lifting. If there is a balance of
trade between two nations, only goods and credit
change hands... money stays in the vault.
Money only moves if there is a trade unbalance.
With balanced trade, the credits net out; if I owe you
$10, and you owe me $10, we need not exchange
notes; we merely net out the credit. This is simple
enough for a child to understand... but not,
apparently, for highly educated economists.
The right column, under John Law of Assignats
fame... whose nutty ideas ruined the French
economy, brought about the French revolution and
Napoleon Bonaparte... Had amongst others the
name of John Maynard Keynes. Professor Rallo
called this column the monetary cranks; those who
believe that credit and money are interchangeable.
What happened to France under the Assignat is now
happening to the US under the Dollar, and to
Europe under the Euro, for the very same reason;
credit and money are conflated. So called credit
money is being borrowed into existence, without
limit. Just as John Laws Assignats were printed
without limit.
In reality, credit and money are poles apart. Money
extinguishes debt (credit) just as water extinguishes
fire. No wonder Professor Rallo calls those who
refuse to see this, including highly educated
economists, monetary cranks.
In the center column under Adam Smith went Carl
Menger, the father of Austrian economics, several
others, ending with Antal Fekete. The center column
is reserved for those economic thinkers who
recognize that money and credit are very different,
but recognize also that both serve a vital role in the
economy. Not seeing the role of credit in clearing
trade is just as big a sin as not recognizing the
differences between credit and money.
Most interesting; Von Mises, arguably the greatest
Austrian economist of the twentieth century is in
the same category as Ricardo, Friedman, et all... in
the monetarist camp... while Professor Fekete, a
monetary crank according to many pundits, is in the
lineage of Adam Smith, originator of the Real Bills
Doctrine, and Carl Menger, the father of Austrian
economics. Maybe the New Austrian School of
Economics should be called the True Austrian
School of Economics.
I place Professor Juan Rallo into the center column,
directly in the lineage of Adam Smith, Carl Menger,
and Professor Fekete..
Rudy J. Fritsch
Editor in Chief