Here is a summary I prepared of my interview with Dr. Stan Monteith on Radio Liberty, December 3, 2013.
2m – Canada now more economically free than the United States
3m – most recent to free enterprise in U.S. was for nearly 30 years after the end of the privately owned Second (central) Bank of the United States
3m – no World War prior to privately owned Federal Reserve central bank
3m – James Madison was against the power of Congress to charter a central bank prior to being President, once President, he chartered the Second Bank of the United States
4m – 4 revolutionary changes in 1913 – bogus direct personal income tax, direct election of senators, Federal Reserve and
5m – Rise of Petrodollar since 1947
6m – Canada more economically free because of its relatively increasing adherence to U.S. founding constitutional principles, and a deviation away from Canadian founding principles
6m – government privilege of banks creating credit tied to national currency
7m – Dick Cheney against bailout of big car manufacturers, but no problem with bailing out the big bankers
8m – reform of decentralization, decoupling of bank-issued credit to U.S. dollar
8m – gold standard was setting U.S. dollar relative to an ounce of gold
16m – U.S. has second-worst representation in its House of Representatives relative to any country in the world
16m – I identify Canada as more economically free and decentralized than U.S. in past few years due to better national representation and influence of majority French-speaking province of Quebec pushing for more decentralization to protect its powers
18m – most money in Canada is debt, just like U.S.
18m – Canada’s central bank is publicly owned, but still tied into privately owned Bank for International Settlements
18m – BIS regulation that you can’t borrow directly from your own central bank
19m – interest income from Federal Reserve goes back to the Treasury — over $70 billion recently, but most interest stays with the privately owned member banks
20m – usury originally defined as any amount of interest
20m – not possible for everyone to exponentially increase their productivity relative to compounding debt
27m – Tom J. “UsuryFree” Kennedy calls in, asking about usury-free community currencies
28m – Ithaca Hours, Mountain Hours
28m – Wayne Walton founded usury-free Mountain Hours
29m – local businesses will accept a portion of payment in MHs, or 100%
29m – an associate of the founder, Joby Weeks, lost money with his involvement with Ron Paul Liberty Dollars, and found that paper-based MHs circulated better than the gold coins, because gold was more valuable to hold on to, as a store of wealth, rather than function as a medium of exchange, which is the primary function of money
31m – value of local currencies determined in the marketplace, and they function to promote monetary reform
33m – community currencies are backed by the honesty and integrity of each entrepreneur, and the quality of goods and services they offer
34m – U.S. Constitution does not allow the federal government to “back up” the money supply with precious metals, nor does it allow it to declare any currency legal tender for private debts or payment of goods and services
42m – agree with caller who said the primary reason for giving Congress the power to coin money was to facilitate commerce that was running into problems with states minting and printing their own coins and notes, respectively
42m – Gresham’s Law, whereby bad currencies drive out good currencies, in the presence of legal tender laws – e.g. of Federal Reserve Notes and credit driving out gold, because gold is more valuable to hold on to
43m – difficulty of determining value of precious metal coins, because of how they were stamped by different states
43m – Congress’ power to coin money isn’t restricted to only gold and silver — copper coins were also coined — but no power to make them legal tender for private debts
44m – if States decide to make legal tender laws, they are then required to make gold and silver coin a tender in payment of debts (and not goods and services)
44m – caller supported local currencies for sequestering value locally, but need for currencies to facilitate international trade
47m – biggest problem now with monetary system is usury
47m – can’t have gold backed currency with usury, or eventually the private bankers will own all the money supply, or assets secured by their debts
47m – agree with Milton Friedman who told Bill Still that if you don’t end fractional reserve banking, you’ve done nothing to reform the system
48m – fractional reserve banking a ticking time bomb, and agree with those who say it’s fraud, because it’s your deposit functioning as a lottery ticket
48m – Islamic Banking charges fees instead of usury
For my previous interviews on Radio Liberty, see here.
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From the October 7, 2013 Economic Policy Journal article, Is Bitcoin Money: What Economists Have To Say, Tom Woods said:
Dr. Edwin Vieira
