I consider myself an anarcho-capitalist, but I’m still pretty new to it.
One thing that I haven’t found a lot of information about is private minting of money.
I guess I don’t understand how it would work, what would the business get in exchange for their currency? And also, once they make their coins, how do they continue to make money?
Would they have to make all of their coins make out of actual precious metals? Or at least have all of their money backed up by some precious metals to give it some set value?
This is probably a large topic, so does anyone know of an article or book that deals with this? Or you can answer directly, either way.
I would suggest Selgin’s book on the British experience. Essentially it comes down to this. Money is a good and can be supplied by the market like every other good.
So private companies would make the money and then just go around and spend it, is that pretty much how it would be dispersed? I guess that makes sense, it just seems too simple.
They produce money so whatever they produce amounts to their revenue. All wages, rent, and interest are paid with the money they produce. What ever is left over above costs is their profit. The value of the money will determine the amount of money to be produced. If the value is high, it will be profitable to employ factors for the production of money. If the value decreases, it will be less profitable to employ those factors and less money will be produced. In theory, Equilibrium can be maintained according to the demand for money. ############ I would caution you from inferring from the above that artificial credit, therefore, can be expanded by Fractional Reserve Banking in order to meet this demand for money (A few have suggested this, e.g., Horwitz, White, Selgin). The creation of bank credit out of thin air necessitates a deceptive element where the creation of money by mints does not. The expansion of credit also has the micro effects of distorting the interest rate and inducing the business cycle.
Yea I kind of don’t understand the question for this. I doubt that there would emerge a company that which just print coins, more that various banks would use and issue them… It’s really not hard to grasp. Just think of what we have now but with competing currencies and actual solid money.
Just a random question but I’ve been reluctant to make a thread on this, can somone tell me exactly how a 100% reserve banking system would lend out money?
If history has proven anything, it has proven that banks will not adhear to a 100% reserve requirement. The “gold standard” proven this because by law they were required to maintain all loans at parady with gold, and history proved that that part of the act was never enforced. Then it also beggs the question why would honest men only loan a promise to pay (receipt) if they really just had the gold?
Pretty much. I mean today, most of them will exchange them for Federal Reserve Notes. But if you are talking about a free society, where there are no Federal Reserve notes, then they would spend them or trade them for something else to hold in reserve to trade at a later date. But it is just like any other product or service. All people are doing is trading their products and services for other products and services. Money just makes transactions much easier, which is why money is valued, and hence produced.
When in history has their been unregulated banking? If a bank issued a note that stated it was worth 1 oz. of gold, when in reality it was not, how long do you think the bank would stay in business once it was found to be committing fraud?
When in history has their been unregulated banking? If a bank issued a note that stated it was worth 1 oz. of gold, when in reality it was not, how long do you think the bank would stay in business once it was found to be committing fraud?
The real question is how long would it take the banking system who funds all the the elections to change the rules so they wouldn’t have to make good on their promises to pay?
But why would a bank issue own currency? Is it so that it can eliminate uncertainity? Or is money issuing a profitable enterprise in isolation already?
Senoriage. SP? They would take a portion of the gold/silver/copper/ whatever money happens to be as a cost of minting and do what they wanted with it from there.
The bank has gold, carrying around gold is ineficient. Having gold but not using it is a waste. Therefore banks that wish to survive must issue or accept a certain kind of mint. The end.