Category Archives: Rothbard
by Murray Rothbard, originally published in his For A New Liberty (Auburn, Ala.: Mises Institute, 2006 ), p. 84.
Let us try to transcend the fact that for as long as we can remember, the State has monopolized police and judicial services in society. Suppose that we were all starting completely from scratch, and that millions of us had been dropped down upon the earth, fully grown and developed, from some other planet. Debate begins as to how protection (police and judicial services) will be provided. Someone says:
Let’s all give all of our weapons to Joe Jones over there, and to his relatives. And let Jones and his family decide all disputes among us. In that way, the Joneses will be able to protect all of us from any aggression or fraud that anyone else may commit. With all the power and all the ability to make ultimate decisions on disputes in the hands of Jones, we will all be protected from one another. And then let us allow the Joneses to obtain their income from this great service by using their weapons, and by exacting as much revenue by coercion as they shall desire.
by Murray Rothbard, with an introduction from the editor
Ron Paul is doing well raising money and gaining attention for the cause of free-markets. In 2007 he raised more money in one day than any other political fund-raiser: over 6 million dollars, breaking his own record set a few months earlier of over 4 million dollars. One way he might be able to raise money and illustrate the fact that fractional reserve banking is fraudulent is if all his supporters took all their on-demand deposits out of the bank at the same time, and then gave some fraction of it to the campaign.
Ideally, this will lead to a run on the banks (as people learn that the banks do not actually have the money people have deposited on hand, but have lent it out, turning an on-demand deposit into a loan), fractional reserve banking will be exposed as fraudulent and Paul will become President. Read the rest of this entry