WEBVTT Kind: captions Language: en 00:00:00.210 --> 00:00:01.579 align:start position:0% okay<00:00:00.690> why<00:00:00.810> don't<00:00:00.870> we<00:00:00.989> go<00:00:01.140> ahead<00:00:01.260> and<00:00:01.380> get 00:00:01.579 --> 00:00:01.589 align:start position:0% okay why don't we go ahead and get 00:00:01.589 --> 00:00:03.679 align:start position:0% okay why don't we go ahead and get started<00:00:01.800> here<00:00:02.429> so<00:00:02.460> what<00:00:03.179> we're<00:00:03.300> talking<00:00:03.629> about 00:00:03.679 --> 00:00:03.689 align:start position:0% started here so what we're talking about 00:00:03.689 --> 00:00:05.809 align:start position:0% started here so what we're talking about now<00:00:04.020> is<00:00:04.049> rothbard<00:00:04.830> Ian's<00:00:05.069> versus<00:00:05.490> free 00:00:05.809 --> 00:00:05.819 align:start position:0% now is rothbard Ian's versus free 00:00:05.819 --> 00:00:08.540 align:start position:0% now is rothbard Ian's versus free bankers<00:00:06.330> on<00:00:06.540> fractional<00:00:07.109> reserve<00:00:07.379> banking<00:00:07.649> so 00:00:08.540 --> 00:00:08.550 align:start position:0% bankers on fractional reserve banking so 00:00:08.550 --> 00:00:10.580 align:start position:0% bankers on fractional reserve banking so let<00:00:08.760> me<00:00:08.940> just<00:00:09.510> define<00:00:09.690> the<00:00:10.110> term<00:00:10.349> at<00:00:10.500> the 00:00:10.580 --> 00:00:10.590 align:start position:0% let me just define the term at the 00:00:10.590 --> 00:00:12.950 align:start position:0% let me just define the term at the outset<00:00:10.950> to<00:00:11.010> make<00:00:11.219> sure<00:00:11.429> I<00:00:11.790> assume<00:00:12.509> most<00:00:12.690> of<00:00:12.840> you 00:00:12.950 --> 00:00:12.960 align:start position:0% outset to make sure I assume most of you 00:00:12.960 --> 00:00:14.419 align:start position:0% outset to make sure I assume most of you here<00:00:13.049> know<00:00:13.230> what<00:00:13.380> these<00:00:13.500> terms<00:00:13.650> mean<00:00:13.860> but<00:00:14.250> just 00:00:14.419 --> 00:00:14.429 align:start position:0% here know what these terms mean but just 00:00:14.429 --> 00:00:16.609 align:start position:0% here know what these terms mean but just in<00:00:14.519> case<00:00:14.549> you<00:00:14.849> don't<00:00:14.969> so<00:00:15.870> there<00:00:16.260> was<00:00:16.350> this<00:00:16.440> guy 00:00:16.609 --> 00:00:16.619 align:start position:0% in case you don't so there was this guy 00:00:16.619 --> 00:00:18.170 align:start position:0% in case you don't so there was this guy Murray<00:00:16.859> Rothbard<00:00:17.160> perhaps<00:00:17.820> you've<00:00:17.940> heard<00:00:18.060> of 00:00:18.170 --> 00:00:18.180 align:start position:0% Murray Rothbard perhaps you've heard of 00:00:18.180 --> 00:00:20.480 align:start position:0% Murray Rothbard perhaps you've heard of them<00:00:18.300> and<00:00:18.570> so<00:00:18.779> a<00:00:18.810> rothbard<00:00:19.470> en<00:00:19.830> means<00:00:20.130> up<00:00:20.369> to 00:00:20.480 --> 00:00:20.490 align:start position:0% them and so a rothbard en means up to 00:00:20.490 --> 00:00:23.120 align:start position:0% them and so a rothbard en means up to now<00:00:20.640> the<00:00:21.539> term<00:00:21.720> fractional<00:00:22.470> reserve<00:00:22.769> banking 00:00:23.120 --> 00:00:23.130 align:start position:0% now the term fractional reserve banking 00:00:23.130 --> 00:00:27.500 align:start position:0% now the term fractional reserve banking so<00:00:23.990> here<00:00:24.990> the<00:00:25.260> idea<00:00:25.500> is<00:00:25.980> you<00:00:26.640> go<00:00:26.789> into<00:00:27.000> a<00:00:27.029> bank 00:00:27.500 --> 00:00:27.510 align:start position:0% so here the idea is you go into a bank 00:00:27.510 --> 00:00:30.320 align:start position:0% so here the idea is you go into a bank you<00:00:28.349> I<00:00:28.380> will<00:00:28.980> just<00:00:29.099> use<00:00:29.130> modern<00:00:29.730> context<00:00:30.179> with 00:00:30.320 --> 00:00:30.330 align:start position:0% you I will just use modern context with 00:00:30.330 --> 00:00:31.849 align:start position:0% you I will just use modern context with with<00:00:30.630> modern<00:00:30.990> types<00:00:31.199> of<00:00:31.349> money<00:00:31.500> just<00:00:31.679> to<00:00:31.769> make 00:00:31.849 --> 00:00:31.859 align:start position:0% with modern types of money just to make 00:00:31.859 --> 00:00:33.650 align:start position:0% with modern types of money just to make it<00:00:31.949> simple<00:00:32.369> for<00:00:32.910> those<00:00:33.030> who<00:00:33.180> have<00:00:33.420> never<00:00:33.540> heard 00:00:33.650 --> 00:00:33.660 align:start position:0% it simple for those who have never heard 00:00:33.660 --> 00:00:35.450 align:start position:0% it simple for those who have never heard this<00:00:34.170> spelled<00:00:34.469> out<00:00:34.620> before<00:00:35.010> for<00:00:35.190> a<00:00:35.219> lot<00:00:35.309> of<00:00:35.399> you 00:00:35.450 --> 00:00:35.460 align:start position:0% this spelled out before for a lot of you 00:00:35.460 --> 00:00:37.400 align:start position:0% this spelled out before for a lot of you this<00:00:35.520> is<00:00:35.610> gonna<00:00:35.760> be<00:00:35.940> real<00:00:36.210> simple<00:00:36.390> stuff<00:00:36.630> so 00:00:37.400 --> 00:00:37.410 align:start position:0% this is gonna be real simple stuff so 00:00:37.410 --> 00:00:39.260 align:start position:0% this is gonna be real simple stuff so you<00:00:37.469> go<00:00:37.770> into<00:00:38.070> a<00:00:38.100> bank<00:00:38.610> and<00:00:38.790> you<00:00:38.910> give<00:00:39.059> them<00:00:39.149> a 00:00:39.260 --> 00:00:39.270 align:start position:0% you go into a bank and you give them a 00:00:39.270 --> 00:00:41.660 align:start position:0% you go into a bank and you give them a thousand<00:00:39.719> dollars<00:00:40.079> and<00:00:40.379> then<00:00:40.980> your<00:00:41.160> checking 00:00:41.660 --> 00:00:41.670 align:start position:0% thousand dollars and then your checking 00:00:41.670 --> 00:00:43.790 align:start position:0% thousand dollars and then your checking account<00:00:42.000> balance<00:00:42.540> goes<00:00:42.750> up<00:00:42.930> by<00:00:43.110> one<00:00:43.320> thousand 00:00:43.790 --> 00:00:43.800 align:start position:0% account balance goes up by one thousand 00:00:43.800 --> 00:00:45.470 align:start position:0% account balance goes up by one thousand dollars<00:00:44.129> and<00:00:44.309> so<00:00:44.340> you<00:00:44.489> are<00:00:44.910> walking<00:00:45.180> around 00:00:45.470 --> 00:00:45.480 align:start position:0% dollars and so you are walking around 00:00:45.480 --> 00:00:48.260 align:start position:0% dollars and so you are walking around town<00:00:45.870> thinking<00:00:46.410> you<00:00:47.039> have<00:00:47.309> in<00:00:47.700> the<00:00:47.850> bank 00:00:48.260 --> 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if instead if they were to keep full 00:00:56.430 --> 00:00:59.299 align:start position:0% if instead if they were to keep full reserves<00:00:57.000> you<00:00:57.539> know<00:00:58.050> in<00:00:58.199> the<00:00:58.379> vault<00:00:58.620> or<00:00:59.039> you 00:00:59.299 --> 00:00:59.309 align:start position:0% reserves you know in the vault or you 00:00:59.309 --> 00:01:01.430 align:start position:0% reserves you know in the vault or you know<00:00:59.399> another<00:00:59.579> some<00:00:59.820> secure<00:01:00.180> place<00:01:00.480> in<00:01:01.320> a 00:01:01.430 --> 00:01:01.440 align:start position:0% know another some secure place in a 00:01:01.440 --> 00:01:03.229 align:start position:0% know another some secure place in a sense<00:01:01.680> backing<00:01:02.190> up<00:01:02.340> all<00:01:02.579> of<00:01:02.730> those<00:01:02.820> checking 00:01:03.229 --> 00:01:03.239 align:start position:0% sense backing up all of those checking 00:01:03.239 --> 00:01:04.520 align:start position:0% sense backing up all of those checking account<00:01:03.510> deposits<00:01:04.019> we<00:01:04.140> would<00:01:04.260> say<00:01:04.379> they<00:01:04.500> have 00:01:04.520 --> 00:01:04.530 align:start position:0% account deposits we would say they have 00:01:04.530 --> 00:01:06.980 align:start position:0% account deposits we would say they have a<00:01:04.650> hundred<00:01:04.920> percent<00:01:05.129> reserves<00:01:05.700> if<00:01:06.060> instead 00:01:06.980 --> 00:01:06.990 align:start position:0% a hundred percent reserves if instead 00:01:06.990 --> 00:01:10.010 align:start position:0% a hundred percent reserves if instead though<00:01:07.290> they<00:01:07.500> only<00:01:07.680> had<00:01:08.040> half<00:01:08.909> of<00:01:09.270> the<00:01:09.600> actual 00:01:10.010 --> 00:01:10.020 align:start position:0% though they only had half of the actual 00:01:10.020 --> 00:01:11.480 align:start position:0% though they only had half of the actual money<00:01:10.260> that<00:01:10.470> people<00:01:10.710> think<00:01:10.920> they<00:01:11.130> could<00:01:11.280> show 00:01:11.480 --> 00:01:11.490 align:start position:0% money that people think they could show 00:01:11.490 --> 00:01:13.880 align:start position:0% money that people think they could show up<00:01:11.580> at<00:01:11.700> any<00:01:11.820> time<00:01:11.909> and<00:01:12.479> say<00:01:13.080> give<00:01:13.290> me<00:01:13.320> my<00:01:13.500> money 00:01:13.880 --> 00:01:13.890 align:start position:0% up at any time and say give me my money 00:01:13.890 --> 00:01:15.950 align:start position:0% up at any time and say give me my money please<00:01:14.520> cuz<00:01:15.000> you<00:01:15.119> know<00:01:15.180> I<00:01:15.240> was<00:01:15.450> storing<00:01:15.780> it 00:01:15.950 --> 00:01:15.960 align:start position:0% please cuz you know I was storing it 00:01:15.960 --> 00:01:17.240 align:start position:0% please cuz you know I was storing it here<00:01:16.080> give<00:01:16.229> me<00:01:16.259> my<00:01:16.439> money<00:01:16.650> it's<00:01:16.860> an<00:01:16.950> attacking 00:01:17.240 --> 00:01:17.250 align:start position:0% here give me my money it's an attacking 00:01:17.250 --> 00:01:19.670 align:start position:0% here give me my money it's an attacking account<00:01:17.670> I<00:01:17.880> go<00:01:18.570> to<00:01:18.659> the<00:01:18.750> ATM<00:01:19.140> it<00:01:19.320> says<00:01:19.530> I<00:01:19.650> have 00:01:19.670 --> 00:01:19.680 align:start position:0% account I go to the ATM it says I have 00:01:19.680 --> 00:01:22.130 align:start position:0% account I go to the ATM it says I have it<00:01:20.009> available<00:01:20.130> so<00:01:20.610> I'd<00:01:20.880> like<00:01:21.090> it<00:01:21.330> if<00:01:21.900> they 00:01:22.130 --> 00:01:22.140 align:start position:0% it available so I'd like it if they 00:01:22.140 --> 00:01:24.649 align:start position:0% it available so I'd like it if they actually<00:01:22.350> could<00:01:22.680> only<00:01:22.860> satisfy<00:01:23.460> half<00:01:23.850> of<00:01:24.210> all 00:01:24.649 --> 00:01:24.659 align:start position:0% actually could only satisfy half of all 00:01:24.659 --> 00:01:26.560 align:start position:0% actually could only satisfy half of all the<00:01:24.780> total<00:01:25.020> outstanding<00:01:25.409> checking<00:01:26.159> account 00:01:26.560 --> 00:01:26.570 align:start position:0% the total outstanding checking account 00:01:26.570 --> 00:01:28.999 align:start position:0% the total outstanding checking account deposits<00:01:27.570> that<00:01:27.720> way<00:01:27.869> they<00:01:28.409> would<00:01:28.560> have<00:01:28.590> 50 00:01:28.999 --> 00:01:29.009 align:start position:0% deposits that way they would have 50 00:01:29.009 --> 00:01:30.830 align:start position:0% deposits that way they would have 50 percent<00:01:29.369> reserves<00:01:29.759> okay<00:01:30.090> so<00:01:30.150> fractional 00:01:30.830 --> 00:01:30.840 align:start position:0% percent reserves okay so fractional 00:01:30.840 --> 00:01:33.289 align:start position:0% percent reserves okay so fractional reserve<00:01:31.140> banking<00:01:31.650> means<00:01:31.890> when<00:01:32.579> bangs<00:01:32.850> conduct 00:01:33.289 --> 00:01:33.299 align:start position:0% reserve banking means when bangs conduct 00:01:33.299 --> 00:01:34.940 align:start position:0% reserve banking means when bangs conduct their<00:01:33.450> operations<00:01:33.479> such<00:01:34.350> that<00:01:34.590> they<00:01:34.740> only 00:01:34.940 --> 00:01:34.950 align:start position:0% their operations such that they only 00:01:34.950 --> 00:01:38.420 align:start position:0% their operations such that they only keep<00:01:35.310> on<00:01:35.520> reserve<00:01:35.939> a<00:01:36.439> fraction<00:01:37.439> of<00:01:37.650> what<00:01:38.280> they 00:01:38.420 --> 00:01:38.430 align:start position:0% keep on reserve a fraction of what they 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position:0% their money out to keep that much in reserve<00:01:46.649> to<00:01:46.890> in<00:01:47.100> a<00:01:47.189> sense<00:01:47.369> back<00:01:47.640> that<00:01:47.939> up<00:01:48.090> okay 00:01:48.530 --> 00:01:48.540 align:start position:0% reserve to in a sense back that up okay 00:01:48.540 --> 00:01:52.749 align:start position:0% reserve to in a sense back that up okay so<00:01:48.600> that's<00:01:48.869> what<00:01:49.110> that<00:01:49.860> this<00:01:50.070> debate<00:01:50.340> is<00:01:50.729> about 00:01:52.749 --> 00:01:52.759 align:start position:0% so that's what that this debate is about 00:01:52.759 --> 00:01:56.030 align:start position:0% so that's what that this debate is about okay<00:01:53.790> also<00:01:54.360> a<00:01:54.390> note<00:01:54.750> you<00:01:55.320> saw<00:01:55.560> in<00:01:55.740> the<00:01:55.860> title 00:01:56.030 --> 00:01:56.040 align:start position:0% okay also a note you saw in the title 00:01:56.040 --> 00:01:58.219 align:start position:0% okay also a note you saw in the title that<00:01:56.430> it<00:01:56.549> had<00:01:56.700> free<00:01:57.000> bankers<00:01:57.450> in<00:01:57.659> quotation 00:01:58.219 --> 00:01:58.229 align:start position:0% that it had free bankers in quotation 00:01:58.229 --> 00:02:00.920 align:start position:0% that it had free bankers in quotation marks<00:01:58.430> okay<00:01:59.430> and<00:01:59.640> so<00:01:59.820> this<00:01:59.969> is<00:02:00.180> each<00:02:00.869> year 00:02:00.920 --> 00:02:00.930 align:start position:0% marks okay and so this is each year 00:02:00.930 --> 00:02:02.600 align:start position:0% marks okay and so this is each year fewer<00:02:01.469> and<00:02:01.560> fewer<00:02:01.680> people<00:02:01.860> get<00:02:02.100> this<00:02:02.250> this<00:02:02.460> is 00:02:02.600 --> 00:02:02.610 align:start position:0% fewer and fewer people get this this is 00:02:02.610 --> 00:02:03.969 align:start position:0% fewer and fewer people get this this is dr.<00:02:02.939> evil<00:02:03.149> because<00:02:03.299> he<00:02:03.390> would<00:02:03.479> talk<00:02:03.630> about 00:02:03.969 --> 00:02:03.979 align:start position:0% dr. evil because he would talk about 00:02:03.979 --> 00:02:08.029 align:start position:0% dr. evil because he would talk about laser-beam<00:02:04.979> okay<00:02:05.759> and<00:02:05.969> so<00:02:06.240> the<00:02:06.869> reason<00:02:07.320> in<00:02:07.590> my 00:02:08.029 --> 00:02:08.039 align:start position:0% laser-beam okay and so the reason in my 00:02:08.039 --> 00:02:10.669 align:start position:0% laser-beam okay and so the reason in my talk<00:02:08.970> you<00:02:09.479> know<00:02:09.569> in<00:02:09.720> the<00:02:09.989> title<00:02:10.319> and<00:02:10.410> so<00:02:10.530> forth 00:02:10.669 --> 00:02:10.679 align:start position:0% talk you know in the title and so forth 00:02:10.679 --> 00:02:12.350 align:start position:0% talk you know in the title and so forth that<00:02:11.039> we<00:02:11.160> have<00:02:11.310> free<00:02:11.580> bankers<00:02:12.000> and<00:02:12.150> free 00:02:12.350 --> 00:02:12.360 align:start position:0% that we have free bankers and free 00:02:12.360 --> 00:02:14.000 align:start position:0% that we have free bankers and free banking<00:02:12.750> in<00:02:12.870> quotation<00:02:13.440> marks 00:02:14.000 --> 00:02:14.010 align:start position:0% banking in quotation marks 00:02:14.010 --> 00:02:16.339 align:start position:0% banking in quotation marks is<00:02:14.209> because<00:02:15.209> in<00:02:15.450> a<00:02:15.540> sense<00:02:15.750> that's<00:02:15.989> a<00:02:16.110> misnomer 00:02:16.339 --> 00:02:16.349 align:start position:0% is because in a sense that's a misnomer 00:02:16.349 --> 00:02:18.979 align:start position:0% is because in a sense that's a misnomer alright<00:02:17.129> if<00:02:17.280> what<00:02:17.670> you<00:02:17.790> mean<00:02:17.849> by<00:02:18.209> free<00:02:18.540> banking 00:02:18.979 --> 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barding<00:02:34.590> is<00:02:34.650> a<00:02:34.680> free<00:02:34.980> banker<00:02:35.280> -<00:02:35.459> right<00:02:35.730> because 00:02:35.809 --> 00:02:35.819 align:start position:0% barding is a free banker - right because 00:02:35.819 --> 00:02:37.490 align:start position:0% barding is a free banker - right because they're<00:02:36.000> an<00:02:36.090> anarcho-capitalist<00:02:37.019> and<00:02:37.290> so 00:02:37.490 --> 00:02:37.500 align:start position:0% they're an anarcho-capitalist and so 00:02:37.500 --> 00:02:39.229 align:start position:0% they're an anarcho-capitalist and so there's<00:02:38.010> not<00:02:38.160> going<00:02:38.250> to<00:02:38.310> be<00:02:38.370> a<00:02:38.519> state<00:02:38.879> to<00:02:39.090> lay 00:02:39.229 --> 00:02:39.239 align:start position:0% there's not going to be a state to lay 00:02:39.239 --> 00:02:41.780 align:start position:0% there's not going to be a state to lay down<00:02:39.269> regulations<00:02:40.430> insisting<00:02:41.430> on<00:02:41.489> a<00:02:41.579> certain 00:02:41.780 --> 00:02:41.790 align:start position:0% down regulations insisting on a certain 00:02:41.790 --> 00:02:44.960 align:start position:0% down regulations insisting on a certain reserve<00:02:42.120> requirement<00:02:42.780> okay<00:02:43.200> so<00:02:43.730> it's<00:02:44.730> just 00:02:44.960 --> 00:02:44.970 align:start position:0% reserve requirement okay so it's just 00:02:44.970 --> 00:02:46.430 align:start position:0% reserve requirement okay so it's just for<00:02:45.120> convenience<00:02:45.329> because<00:02:46.019> the<00:02:46.140> way<00:02:46.290> this 00:02:46.430 --> 00:02:46.440 align:start position:0% for convenience because the way this 00:02:46.440 --> 00:02:48.110 align:start position:0% for convenience because the way this debate<00:02:46.739> has<00:02:46.799> played<00:02:47.220> out<00:02:47.250> in<00:02:47.519> the<00:02:47.640> journals 00:02:48.110 --> 00:02:48.120 align:start position:0% debate has played out in the journals 00:02:48.120 --> 00:02:50.509 align:start position:0% debate has played out in the journals the<00:02:48.959> the<00:02:49.260> group<00:02:49.500> of<00:02:49.650> people<00:02:49.950> and<00:02:50.099> I'll<00:02:50.190> in<00:02:50.459> a 00:02:50.509 --> 00:02:50.519 align:start position:0% the the group of people and I'll in a 00:02:50.519 --> 00:02:52.400 align:start position:0% the the group of people and I'll in a minute<00:02:50.790> show<00:02:51.000> you<00:02:51.060> who<00:02:51.269> the<00:02:51.420> participants 00:02:52.400 --> 00:02:52.410 align:start position:0% minute show you who the participants 00:02:52.410 --> 00:02:53.539 align:start position:0% minute show you who the participants have<00:02:52.530> been<00:02:52.560> or<00:02:53.040> some<00:02:53.220> of<00:02:53.310> the<00:02:53.370> major 00:02:53.539 --> 00:02:53.549 align:start position:0% have been or some of the major 00:02:53.549 --> 00:02:56.420 align:start position:0% have been or some of the major participants<00:02:54.120> the<00:02:55.049> ones<00:02:55.319> that<00:02:55.620> are<00:02:55.799> arguing 00:02:56.420 --> 00:02:56.430 align:start position:0% participants the ones that are arguing 00:02:56.430 --> 00:02:59.960 align:start position:0% participants the ones that are arguing in<00:02:57.150> favor<00:02:57.569> of<00:02:57.959> saying<00:02:58.590> hey<00:02:58.769> in<00:02:59.010> a<00:02:59.129> even<00:02:59.790> in<00:02:59.879> a 00:02:59.960 --> 00:02:59.970 align:start position:0% in favor of saying hey in a even in a 00:02:59.970 --> 00:03:02.809 align:start position:0% in favor of saying hey in a even in a free<00:03:00.150> society<00:03:00.359> total<00:03:00.959> libertarian<00:03:01.530> world<00:03:01.819> we 00:03:02.809 --> 00:03:02.819 align:start position:0% free society total libertarian world we 00:03:02.819 --> 00:03:05.869 align:start position:0% free society total libertarian world we think<00:03:03.120> that<00:03:03.480> banks<00:03:04.049> would<00:03:04.489> should<00:03:05.489> be<00:03:05.609> allowed 00:03:05.869 --> 00:03:05.879 align:start position:0% think that banks would should be allowed 00:03:05.879 --> 00:03:08.599 align:start position:0% think that banks would should be allowed to<00:03:05.959> set<00:03:06.959> whatever<00:03:07.140> reserve<00:03:07.829> requirement<00:03:08.489> they 00:03:08.599 --> 00:03:08.609 align:start position:0% to set whatever reserve requirement they 00:03:08.609 --> 00:03:11.420 align:start position:0% to set whatever reserve requirement they want<00:03:08.819> right<00:03:09.480> just<00:03:09.690> like<00:03:09.890> what<00:03:10.890> what<00:03:11.040> the<00:03:11.190> fees 00:03:11.420 --> 00:03:11.430 align:start position:0% want right just like what what the fees 00:03:11.430 --> 00:03:13.069 align:start position:0% want right just like what what the fees would<00:03:11.700> be<00:03:11.790> on<00:03:11.910> a<00:03:11.940> checking<00:03:12.390> account<00:03:12.480> or<00:03:12.930> how 00:03:13.069 --> 00:03:13.079 align:start position:0% would be on a checking account or how 00:03:13.079 --> 00:03:14.990 align:start position:0% would be on a checking account or how many<00:03:13.140> armed<00:03:13.680> guards<00:03:14.069> a<00:03:14.160> bank<00:03:14.370> has<00:03:14.579> that's<00:03:14.819> not 00:03:14.990 --> 00:03:15.000 align:start position:0% many armed guards a bank has that's not 00:03:15.000 --> 00:03:17.720 align:start position:0% many armed guards a bank has that's not a<00:03:15.030> matter<00:03:15.299> of<00:03:15.799> government<00:03:16.799> regulation<00:03:17.549> and 00:03:17.720 --> 00:03:17.730 align:start position:0% a matter of government regulation and 00:03:17.730 --> 00:03:19.640 align:start position:0% a matter of government regulation and certainly<00:03:18.450> that's<00:03:18.599> not<00:03:18.810> something<00:03:19.109> intrinsic 00:03:19.640 --> 00:03:19.650 align:start position:0% certainly that's not something intrinsic 00:03:19.650 --> 00:03:21.110 align:start position:0% certainly that's not something intrinsic to<00:03:19.739> the<00:03:19.889> legal<00:03:20.250> code<00:03:20.459> and<00:03:20.700> even<00:03:20.819> in<00:03:21.030> a 00:03:21.110 --> 00:03:21.120 align:start position:0% to the legal code and even in a 00:03:21.120 --> 00:03:23.330 align:start position:0% to the legal code and even in a libertarian<00:03:21.510> world<00:03:22.019> that<00:03:22.799> that's<00:03:23.010> just<00:03:23.160> you 00:03:23.330 --> 00:03:23.340 align:start position:0% libertarian world that that's just you 00:03:23.340 --> 00:03:24.949 align:start position:0% libertarian world that that's just you know<00:03:23.400> Bank<00:03:23.669> policy<00:03:23.910> and<00:03:24.450> you<00:03:24.690> know<00:03:24.780> how<00:03:24.900> many 00:03:24.949 --> 00:03:24.959 align:start position:0% know Bank policy and you know how many 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are all things that bank<00:03:31.200> should<00:03:31.410> decide<00:03:31.829> based<00:03:32.220> on<00:03:32.400> profit<00:03:32.819> and 00:03:32.900 --> 00:03:32.910 align:start position:0% bank should decide based on profit and 00:03:32.910 --> 00:03:35.300 align:start position:0% bank should decide based on profit and loss<00:03:33.090> considerations<00:03:33.959> likewise<00:03:34.950> the 00:03:35.300 --> 00:03:35.310 align:start position:0% loss considerations likewise the 00:03:35.310 --> 00:03:37.610 align:start position:0% loss considerations likewise the so-called<00:03:35.549> free<00:03:36.090> bankers<00:03:36.630> in<00:03:36.930> the<00:03:36.959> context<00:03:37.530> of 00:03:37.610 --> 00:03:37.620 align:start position:0% so-called free bankers in the context of 00:03:37.620 --> 00:03:41.300 align:start position:0% so-called free bankers in the context of this<00:03:37.769> debate<00:03:38.120> they<00:03:39.120> argue<00:03:39.959> that<00:03:40.260> banks<00:03:41.130> should 00:03:41.300 --> 00:03:41.310 align:start position:0% this debate they argue that banks should 00:03:41.310 --> 00:03:43.370 align:start position:0% this debate they argue that banks should set<00:03:41.790> whatever<00:03:41.940> reserve<00:03:42.299> requirements<00:03:42.989> is 00:03:43.370 --> 00:03:43.380 align:start position:0% set whatever reserve requirements is 00:03:43.380 --> 00:03:45.800 align:start position:0% set whatever reserve requirements is profit<00:03:43.769> maximizing<00:03:44.280> and<00:03:44.700> they<00:03:44.910> think<00:03:45.389> in 00:03:45.800 --> 00:03:45.810 align:start position:0% profit maximizing and they think in 00:03:45.810 --> 00:03:47.720 align:start position:0% profit maximizing and they think in practice<00:03:46.440> it<00:03:46.650> would<00:03:46.769> be<00:03:46.950> well<00:03:47.310> below<00:03:47.549> a 00:03:47.720 --> 00:03:47.730 align:start position:0% practice it would be well below a 00:03:47.730 --> 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in a free society the<00:03:56.489> banks<00:03:56.940> would<00:03:57.060> tend<00:03:57.329> to<00:03:57.389> have<00:03:57.569> towards<00:03:57.900> 100 00:03:58.220 --> 00:03:58.230 align:start position:0% the banks would tend to have towards 100 00:03:58.230 --> 00:03:59.990 align:start position:0% the banks would tend to have towards 100 percent<00:03:58.560> reserves<00:03:58.859> or<00:03:59.040> outright<00:03:59.730> hundred 00:03:59.990 --> 00:04:00.000 align:start position:0% percent reserves or outright hundred 00:04:00.000 --> 00:04:01.970 align:start position:0% percent reserves or outright hundred percent<00:04:00.239> reserves<00:04:00.569> and<00:04:01.230> also<00:04:01.680> there's<00:04:01.919> some 00:04:01.970 --> 00:04:01.980 align:start position:0% percent reserves and also there's some 00:04:01.980 --> 00:04:05.330 align:start position:0% percent reserves and also there's some economic<00:04:02.599> dispute<00:04:03.599> in<00:04:04.590> this<00:04:04.769> debate<00:04:04.950> that<00:04:05.250> I'm 00:04:05.330 --> 00:04:05.340 align:start position:0% economic dispute in this debate that I'm 00:04:05.340 --> 00:04:07.640 align:start position:0% economic dispute in this debate that I'm gonna<00:04:05.430> focus<00:04:05.669> on<00:04:05.970> as<00:04:06.329> we<00:04:06.480> go<00:04:06.569> through<00:04:06.810> this<00:04:06.989> but 00:04:07.640 --> 00:04:07.650 align:start position:0% gonna focus on as we go through this but 00:04:07.650 --> 00:04:10.159 align:start position:0% gonna focus on as we go through this but again<00:04:08.040> so<00:04:08.250> that<00:04:08.370> my<00:04:08.459> point<00:04:08.669> being<00:04:08.910> in<00:04:09.540> a<00:04:09.900> sense 00:04:10.159 --> 00:04:10.169 align:start position:0% again so that my point being in a sense 00:04:10.169 --> 00:04:11.839 align:start position:0% again so that my point being in a sense I'm<00:04:10.379> a<00:04:10.410> free<00:04:10.709> banker<00:04:11.040> and<00:04:11.160> Joe<00:04:11.310> Salerno<00:04:11.579> is<00:04:11.790> a 00:04:11.839 --> 00:04:11.849 align:start position:0% I'm a free banker and Joe Salerno is a 00:04:11.849 --> 00:04:13.490 align:start position:0% I'm a free banker and Joe Salerno is a free<00:04:12.030> banker<00:04:12.389> and<00:04:12.569> Walter<00:04:12.930> blocks<00:04:13.139> a<00:04:13.290> free 00:04:13.490 --> 00:04:13.500 align:start position:0% free banker and Walter blocks a free 00:04:13.500 --> 00:04:15.949 align:start position:0% free banker and Walter blocks a free banker<00:04:13.919> in<00:04:14.910> a<00:04:15.030> certain<00:04:15.329> sense<00:04:15.569> but<00:04:15.810> in<00:04:15.900> the 00:04:15.949 --> 00:04:15.959 align:start position:0% banker in a certain sense but in the 00:04:15.959 --> 00:04:17.449 align:start position:0% banker in a certain sense but in the context<00:04:16.349> of<00:04:16.470> this<00:04:16.560> debate<00:04:16.859> we<00:04:17.010> wouldn't<00:04:17.340> be 00:04:17.449 --> 00:04:17.459 align:start position:0% context of this debate we wouldn't be 00:04:17.459 --> 00:04:18.650 align:start position:0% context of this debate we wouldn't be and<00:04:17.729> it's<00:04:17.820> just<00:04:17.970> for<00:04:18.120> matters<00:04:18.419> of<00:04:18.479> convenience 00:04:18.650 --> 00:04:18.660 align:start position:0% and it's just for matters of convenience 00:04:18.660 --> 00:04:21.250 align:start position:0% and it's just for matters of convenience it's<00:04:19.500> not<00:04:19.709> because<00:04:20.039> actually<00:04:20.400> were<00:04:20.519> for 00:04:21.250 --> 00:04:21.260 align:start position:0% it's not because actually were for 00:04:21.260 --> 00:04:23.870 align:start position:0% it's not because actually were for necessarily<00:04:22.260> government<00:04:22.590> regulation<00:04:23.190> since 00:04:23.870 --> 00:04:23.880 align:start position:0% necessarily government regulation since 00:04:23.880 --> 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this<00:04:32.660> if<00:04:32.870> you 00:04:33.540 --> 00:04:33.550 align:start position:0% younger I didn't realize this if you 00:04:33.550 --> 00:04:36.570 align:start position:0% younger I didn't realize this if you join<00:04:34.550> these<00:04:34.789> debates<00:04:35.210> on<00:04:35.599> the<00:04:35.990> internet 00:04:36.570 --> 00:04:36.580 align:start position:0% join these debates on the internet 00:04:36.580 --> 00:04:38.740 align:start position:0% join these debates on the internet number<00:04:37.580> one<00:04:37.879> you<00:04:38.000> should<00:04:38.030> reconsider<00:04:38.449> your 00:04:38.740 --> 00:04:38.750 align:start position:0% number one you should reconsider your 00:04:38.750 --> 00:04:41.860 align:start position:0% number one you should reconsider your life<00:04:38.900> choices<00:04:39.199> but<00:04:39.620> number<00:04:39.919> two<00:04:40.539> you'll<00:04:41.539> often 00:04:41.860 --> 00:04:41.870 align:start position:0% life choices but number two you'll often 00:04:41.870 --> 00:04:43.869 align:start position:0% life choices but number two you'll often see<00:04:42.080> it<00:04:42.349> just<00:04:42.560> bandied<00:04:42.949> about<00:04:43.069> that<00:04:43.550> oh<00:04:43.699> yeah 00:04:43.869 --> 00:04:43.879 align:start position:0% see it just bandied about that oh yeah 00:04:43.879 --> 00:04:46.300 align:start position:0% see it just bandied about that oh yeah only<00:04:44.180> those<00:04:44.330> wacky<00:04:45.229> Rothbard<00:04:45.800> Ian's<00:04:46.069> and<00:04:46.250> I 00:04:46.300 --> 00:04:46.310 align:start position:0% only those wacky Rothbard Ian's and I 00:04:46.310 --> 00:04:47.860 align:start position:0% only those wacky Rothbard Ian's and I know<00:04:46.370> I<00:04:46.490> contributed<00:04:47.210> perhaps<00:04:47.539> to<00:04:47.720> that 00:04:47.860 --> 00:04:47.870 align:start position:0% know I contributed perhaps to that 00:04:47.870 --> 00:04:50.290 align:start position:0% know I contributed perhaps to that belief<00:04:48.770> with<00:04:49.099> the<00:04:49.190> title<00:04:49.520> of<00:04:49.610> my<00:04:49.759> talk<00:04:49.789> being 00:04:50.290 --> 00:04:50.300 align:start position:0% belief with the title of my talk being 00:04:50.300 --> 00:04:52.689 align:start position:0% belief with the title of my talk being Rothbard<00:04:50.810> Ian's<00:04:51.050> versus<00:04:51.470> but<00:04:52.129> don't<00:04:52.370> walk 00:04:52.689 --> 00:04:52.699 align:start position:0% Rothbard Ian's versus but don't walk 00:04:52.699 --> 00:04:54.430 align:start position:0% Rothbard Ian's versus but don't walk away<00:04:52.879> thinking<00:04:53.240> oh<00:04:53.539> yeah<00:04:53.750> it's<00:04:53.900> only<00:04:54.050> this 00:04:54.430 --> 00:04:54.440 align:start position:0% away thinking oh yeah it's only this 00:04:54.440 --> 00:04:57.460 align:start position:0% away thinking oh yeah it's only this crank<00:04:54.800> --is--<00:04:55.009> group<00:04:55.729> of<00:04:55.940> economists<00:04:56.479> in<00:04:57.020> the 00:04:57.460 --> 00:04:57.470 align:start position:0% crank --is-- group of economists in the 00:04:57.470 --> 00:04:59.080 align:start position:0% crank --is-- group of economists in the following<00:04:57.800> in<00:04:57.949> the<00:04:58.039> wake<00:04:58.069> of<00:04:58.220> Murray<00:04:58.550> Rathbun 00:04:59.080 --> 00:04:59.090 align:start position:0% following in the wake of Murray Rathbun 00:04:59.090 --> 00:05:01.300 align:start position:0% following in the wake of Murray Rathbun and<00:04:59.120> his<00:04:59.360> weird<00:04:59.539> views<00:04:59.960> about<00:05:00.229> banking<00:05:00.800> policy 00:05:01.300 --> 00:05:01.310 align:start position:0% and his weird views about banking policy 00:05:01.310 --> 00:05:04.120 align:start position:0% and his weird views about banking policy who<00:05:02.030> could<00:05:02.240> endorse<00:05:02.860> 100%<00:05:03.860> reserve<00:05:03.979> banking 00:05:04.120 --> 00:05:04.130 align:start position:0% who could endorse 100% reserve banking 00:05:04.130 --> 00:05:06.189 align:start position:0% who could endorse 100% reserve banking that<00:05:04.639> that's<00:05:04.819> not<00:05:05.000> true<00:05:05.060> at<00:05:05.389> all<00:05:05.509> so<00:05:05.840> there's<00:05:06.139> a 00:05:06.189 --> 00:05:06.199 align:start position:0% that that's not true at all so there's a 00:05:06.199 --> 00:05:08.860 align:start position:0% that that's not true at all so there's a rich<00:05:06.500> history<00:05:06.740> in<00:05:07.280> this<00:05:07.460> so<00:05:08.150> for<00:05:08.389> example 00:05:08.860 --> 00:05:08.870 align:start position:0% rich history in this so for example 00:05:08.870 --> 00:05:11.320 align:start position:0% rich history in this so for example perving<00:05:09.500> Fisher<00:05:09.889> was<00:05:10.099> he<00:05:10.490> had<00:05:10.610> a<00:05:10.639> quite<00:05:11.150> famous 00:05:11.320 --> 00:05:11.330 align:start position:0% perving Fisher was he had a quite famous 00:05:11.330 --> 00:05:13.749 align:start position:0% perving Fisher was he had a quite famous proposal<00:05:12.110> and<00:05:12.740> if<00:05:12.830> you<00:05:12.949> know<00:05:13.039> you<00:05:13.130> go<00:05:13.340> Google 00:05:13.749 --> 00:05:13.759 align:start position:0% proposal and if you know you go Google 00:05:13.759 --> 00:05:15.670 align:start position:0% proposal and if you know you go Google Irving<00:05:14.090> Fisher<00:05:14.330> 100%<00:05:14.900> reserves<00:05:15.199> you'll<00:05:15.440> see 00:05:15.670 --> 00:05:15.680 align:start position:0% Irving Fisher 100% reserves you'll see 00:05:15.680 --> 00:05:18.490 align:start position:0% Irving Fisher 100% reserves you'll see it<00:05:15.800> that<00:05:16.069> in<00:05:16.220> the<00:05:16.610> 1930s<00:05:17.389> they<00:05:17.539> came<00:05:17.780> out<00:05:17.810> the 00:05:18.490 --> 00:05:18.500 align:start position:0% it that in the 1930s they came out the 00:05:18.500 --> 00:05:22.029 align:start position:0% it that in the 1930s they came out the chicago<00:05:19.099> school<00:05:19.159> of<00:05:19.729> that<00:05:19.940> time<00:05:20.240> was<00:05:21.139> in<00:05:21.590> favor 00:05:22.029 --> 00:05:22.039 align:start position:0% chicago school of that time was in favor 00:05:22.039 --> 00:05:23.830 align:start position:0% chicago school of that time was in favor of<00:05:22.190> 100%<00:05:22.880> reserve<00:05:23.000> banking<00:05:23.180> because<00:05:23.719> they 00:05:23.830 --> 00:05:23.840 align:start position:0% of 100% reserve banking because they 00:05:23.840 --> 00:05:25.959 align:start position:0% of 100% reserve banking because they thought<00:05:24.080> that<00:05:24.319> would<00:05:24.530> have<00:05:24.650> helped<00:05:24.979> prevent 00:05:25.959 --> 00:05:25.969 align:start position:0% thought that would have helped prevent 00:05:25.969 --> 00:05:27.040 align:start position:0% thought that would have helped prevent some<00:05:26.210> of<00:05:26.240> the<00:05:26.360> problems<00:05:26.719> with<00:05:26.810> a<00:05:26.870> Great 00:05:27.040 --> 00:05:27.050 align:start position:0% some of the problems with a Great 00:05:27.050 --> 00:05:30.670 align:start position:0% some of the problems with a Great Depression<00:05:28.449> Friedrich<00:05:29.449> Hayek<00:05:29.690> also<00:05:30.199> at<00:05:30.409> times 00:05:30.670 --> 00:05:30.680 align:start position:0% Depression Friedrich Hayek also at times 00:05:30.680 --> 00:05:33.370 align:start position:0% Depression Friedrich Hayek also at times in<00:05:30.889> his<00:05:31.039> career<00:05:31.419> came<00:05:32.419> out<00:05:32.599> in<00:05:32.719> favor<00:05:32.960> of<00:05:33.110> it 00:05:33.370 --> 00:05:33.380 align:start position:0% in his career came out in favor of it 00:05:33.380 --> 00:05:35.770 align:start position:0% in his career came out in favor of it such<00:05:33.680> that<00:05:33.710> Larry<00:05:34.669> white<00:05:35.060> actually<00:05:35.389> has 00:05:35.770 --> 00:05:35.780 align:start position:0% such that Larry white actually has 00:05:35.780 --> 00:05:38.110 align:start position:0% such that Larry white actually has written<00:05:35.990> an<00:05:36.139> article<00:05:36.560> I'm<00:05:37.219> not<00:05:37.729> gonna<00:05:37.849> get<00:05:38.030> the 00:05:38.110 --> 00:05:38.120 align:start position:0% written an article I'm not gonna get the 00:05:38.120 --> 00:05:40.149 align:start position:0% written an article I'm not gonna get the title<00:05:38.389> perfect<00:05:38.750> but<00:05:38.900> along<00:05:39.259> the<00:05:39.440> lines<00:05:39.680> of<00:05:39.949> how 00:05:40.149 --> 00:05:40.159 align:start position:0% title perfect but along the lines of how 00:05:40.159 --> 00:05:41.589 align:start position:0% title perfect but along the lines of how come<00:05:40.400> hi<00:05:40.580> didn't<00:05:41.060> agree<00:05:41.150> with<00:05:41.240> the<00:05:41.419> free 00:05:41.589 --> 00:05:41.599 align:start position:0% come hi didn't agree with the free 00:05:41.599 --> 00:05:43.149 align:start position:0% come hi didn't agree with the free bankers<00:05:42.020> you<00:05:42.229> know<00:05:42.289> something<00:05:42.590> like<00:05:42.710> that<00:05:42.919> so 00:05:43.149 --> 00:05:43.159 align:start position:0% bankers you know something like that so 00:05:43.159 --> 00:05:45.640 align:start position:0% bankers you know something like that so this<00:05:43.699> isn't<00:05:44.090> controversial<00:05:44.900> my<00:05:45.199> claim<00:05:45.440> here 00:05:45.640 --> 00:05:45.650 align:start position:0% this isn't controversial my claim here 00:05:45.650 --> 00:05:48.309 align:start position:0% this isn't controversial my claim here that<00:05:45.680> people<00:05:46.550> in<00:05:46.759> the<00:05:46.969> free<00:05:47.599> banker<00:05:47.990> camp 00:05:48.309 --> 00:05:48.319 align:start position:0% that people in the free banker camp 00:05:48.319 --> 00:05:50.110 align:start position:0% that people in the free banker camp acknowledged<00:05:49.190> that<00:05:49.310> Hayek<00:05:49.669> at<00:05:49.789> least<00:05:49.969> at 00:05:50.110 --> 00:05:50.120 align:start position:0% acknowledged that Hayek at least at 00:05:50.120 --> 00:05:52.089 align:start position:0% acknowledged that Hayek at least at points<00:05:50.360> in<00:05:50.389> his<00:05:50.569> career<00:05:50.900> said<00:05:51.650> things<00:05:51.979> that 00:05:52.089 --> 00:05:52.099 align:start position:0% points in his career said things that 00:05:52.099 --> 00:05:53.350 align:start position:0% points in his career said things that were<00:05:52.310> favorable<00:05:52.580> to<00:05:52.909> the<00:05:53.060> hundred<00:05:53.300> percent 00:05:53.350 --> 00:05:53.360 align:start position:0% were favorable to the hundred percent 00:05:53.360 --> 00:05:56.830 align:start position:0% were favorable to the hundred percent Reserve<00:05:53.810> people<00:05:54.610> Milton<00:05:55.610> Friedman<00:05:55.940> also<00:05:56.029> at 00:05:56.830 --> 00:05:56.840 align:start position:0% Reserve people Milton Friedman also at 00:05:56.840 --> 00:05:59.230 align:start position:0% Reserve people Milton Friedman also at some<00:05:57.169> points<00:05:57.469> in<00:05:57.590> his<00:05:57.710> career<00:05:57.919> wrote<00:05:58.849> in<00:05:58.969> favor 00:05:59.230 --> 00:05:59.240 align:start position:0% some points in his career wrote in favor 00:05:59.240 --> 00:06:00.939 align:start position:0% some points in his career wrote in favor of<00:05:59.449> a<00:05:59.509> hundred<00:05:59.659> percent<00:05:59.810> reserve<00:06:00.289> banking<00:06:00.740> for 00:06:00.939 --> 00:06:00.949 align:start position:0% of a hundred percent reserve banking for 00:06:00.949 --> 00:06:03.189 align:start position:0% of a hundred percent reserve banking for various<00:06:01.310> technical<00:06:01.460> reasons<00:06:01.789> and<00:06:02.389> then<00:06:02.930> more 00:06:03.189 --> 00:06:03.199 align:start position:0% various technical reasons and then more 00:06:03.199 --> 00:06:05.980 align:start position:0% various technical reasons and then more recently<00:06:03.550> so<00:06:04.550> this<00:06:04.729> was<00:06:04.940> just<00:06:04.969> a<00:06:05.389> few<00:06:05.719> years 00:06:05.980 --> 00:06:05.990 align:start position:0% recently so this was just a few years 00:06:05.990 --> 00:06:07.540 align:start position:0% recently so this was just a few years ago<00:06:06.169> and<00:06:06.620> one<00:06:06.770> of<00:06:06.860> those<00:06:06.919> I<00:06:07.130> think<00:06:07.159> it<00:06:07.370> was<00:06:07.460> it 00:06:07.540 --> 00:06:07.550 align:start position:0% ago and one of those I think it was it 00:06:07.550 --> 00:06:09.040 align:start position:0% ago and one of those I think it was it like<00:06:07.669> the<00:06:07.789> Jackson<00:06:08.240> Hole<00:06:08.419> conference<00:06:08.990> you 00:06:09.040 --> 00:06:09.050 align:start position:0% like the Jackson Hole conference you 00:06:09.050 --> 00:06:10.420 align:start position:0% like the Jackson Hole conference you know<00:06:09.169> where<00:06:09.319> monetary<00:06:09.800> economist<00:06:10.250> gonna 00:06:10.420 --> 00:06:10.430 align:start position:0% know where monetary economist gonna 00:06:10.430 --> 00:06:12.700 align:start position:0% know where monetary economist gonna present<00:06:10.699> papers<00:06:11.229> Nobel<00:06:12.229> laureate<00:06:12.590> ed 00:06:12.700 --> 00:06:12.710 align:start position:0% present papers Nobel laureate ed 00:06:12.710 --> 00:06:15.670 align:start position:0% present papers Nobel laureate ed Prescott<00:06:13.370> okay<00:06:14.029> so<00:06:14.090> not<00:06:14.360> some<00:06:14.779> crank<00:06:15.349> at<00:06:15.500> some 00:06:15.670 --> 00:06:15.680 align:start position:0% Prescott okay so not some crank at some 00:06:15.680 --> 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thought<00:06:23.029> studying<00:06:23.509> what 00:06:23.830 --> 00:06:23.840 align:start position:0% because they thought studying what 00:06:23.840 --> 00:06:26.350 align:start position:0% because they thought studying what happened<00:06:24.319> during<00:06:25.159> the<00:06:25.279> financial<00:06:25.460> crisis<00:06:26.210> of 00:06:26.350 --> 00:06:26.360 align:start position:0% happened during the financial crisis of 00:06:26.360 --> 00:06:27.760 align:start position:0% happened during the financial crisis of default<00:06:27.020> you<00:06:27.080> know<00:06:27.139> that<00:06:27.289> it's<00:06:27.409> struck<00:06:27.650> in 00:06:27.760 --> 00:06:27.770 align:start position:0% default you know that it's struck in 00:06:27.770 --> 00:06:30.820 align:start position:0% default you know that it's struck in fall<00:06:28.009> of<00:06:28.039> 2008<00:06:28.870> Prescott<00:06:29.870> and<00:06:30.139> his<00:06:30.409> co-author 00:06:30.820 --> 00:06:30.830 align:start position:0% fall of 2008 Prescott and his co-author 00:06:30.830 --> 00:06:33.070 align:start position:0% fall of 2008 Prescott and his co-author thought<00:06:31.279> oh<00:06:31.520> you<00:06:31.580> know<00:06:31.729> what<00:06:32.000> if<00:06:32.210> we<00:06:32.389> actually 00:06:33.070 --> 00:06:33.080 align:start position:0% thought oh you know what if we actually 00:06:33.080 --> 00:06:35.409 align:start position:0% thought oh you know what if we actually if<00:06:33.649> there<00:06:34.070> were<00:06:34.190> an<00:06:34.399> option<00:06:34.880> of<00:06:35.089> a<00:06:35.180> hundred 00:06:35.409 --> 00:06:35.419 align:start position:0% if there were an option of a hundred 00:06:35.419 --> 00:06:36.639 align:start position:0% if there were an option of a hundred percent<00:06:35.479> reserve<00:06:35.899> checking<00:06:36.380> account 00:06:36.639 --> 00:06:36.649 align:start position:0% percent reserve checking account 00:06:36.649 --> 00:06:38.950 align:start position:0% percent reserve checking account balances<00:06:37.219> a<00:06:37.520> lot<00:06:38.149> of<00:06:38.300> the<00:06:38.360> stuff<00:06:38.630> that<00:06:38.810> you 00:06:38.950 --> 00:06:38.960 align:start position:0% balances a lot of the stuff that you 00:06:38.960 --> 00:06:39.310 align:start position:0% balances a lot of the stuff that you know<00:06:39.080> the 00:06:39.310 --> 00:06:39.320 align:start position:0% know the 00:06:39.320 --> 00:06:41.830 align:start position:0% know the the<00:06:39.410> imbalances<00:06:40.220> that<00:06:40.280> develop<00:06:40.850> that<00:06:40.970> reared 00:06:41.830 --> 00:06:41.840 align:start position:0% the imbalances that develop that reared 00:06:41.840 --> 00:06:43.870 align:start position:0% the imbalances that develop that reared their<00:06:41.990> ugly<00:06:42.020> head<00:06:42.440> in<00:06:42.680> the<00:06:43.160> fall<00:06:43.340> of<00:06:43.370> 2008 00:06:43.870 --> 00:06:43.880 align:start position:0% their ugly head in the fall of 2008 00:06:43.880 --> 00:06:45.520 align:start position:0% their ugly head in the fall of 2008 maybe<00:06:44.480> that<00:06:44.690> could<00:06:44.840> have<00:06:44.960> been<00:06:45.110> mitigated 00:06:45.520 --> 00:06:45.530 align:start position:0% maybe that could have been mitigated 00:06:45.530 --> 00:06:48.810 align:start position:0% maybe that could have been mitigated okay<00:06:46.310> so<00:06:46.450> there<00:06:47.450> these<00:06:47.690> people<00:06:47.900> aren't<00:06:48.290> all 00:06:48.810 --> 00:06:48.820 align:start position:0% okay so there these people aren't all 00:06:48.820 --> 00:06:50.740 align:start position:0% okay so there these people aren't all you<00:06:49.820> know<00:06:49.880> coming<00:06:50.150> at<00:06:50.360> it<00:06:50.390> from<00:06:50.510> the 00:06:50.740 --> 00:06:50.750 align:start position:0% you know coming at it from the 00:06:50.750 --> 00:06:52.900 align:start position:0% you know coming at it from the perspective<00:06:50.870> that<00:06:51.350> I'm<00:06:51.590> gonna<00:06:51.740> outlay<00:06:52.160> and/or 00:06:52.900 --> 00:06:52.910 align:start position:0% perspective that I'm gonna outlay and/or 00:06:52.910 --> 00:06:55.050 align:start position:0% perspective that I'm gonna outlay and/or outline<00:06:53.300> in<00:06:53.450> a<00:06:53.510> little<00:06:53.720> bit<00:06:53.840> here<00:06:54.080> from<00:06:54.500> the 00:06:55.050 --> 00:06:55.060 align:start position:0% outline in a little bit here from the 00:06:55.060 --> 00:06:57.850 align:start position:0% outline in a little bit here from the Austrian<00:06:56.060> you<00:06:56.270> know<00:06:56.360> meet<00:06:56.690> Mises<00:06:57.110> rothbard 00:06:57.850 --> 00:06:57.860 align:start position:0% Austrian you know meet Mises rothbard 00:06:57.860 --> 00:07:00.760 align:start position:0% Austrian you know meet Mises rothbard line<00:06:58.310> in<00:06:58.760> terms<00:06:59.390> of<00:06:59.690> why<00:07:00.080> they<00:07:00.410> would<00:07:00.530> be<00:07:00.560> in 00:07:00.760 --> 00:07:00.770 align:start position:0% line in terms of why they would be in 00:07:00.770 --> 00:07:02.170 align:start position:0% line in terms of why they would be in favor<00:07:00.980> of<00:07:01.070> a<00:07:01.130> hard<00:07:01.280> percent<00:07:01.520> reserve<00:07:01.730> banking 00:07:02.170 --> 00:07:02.180 align:start position:0% favor of a hard percent reserve banking 00:07:02.180 --> 00:07:03.430 align:start position:0% favor of a hard percent reserve banking so<00:07:02.330> don't<00:07:02.480> misunderstand<00:07:02.630> I'm<00:07:03.110> not<00:07:03.260> saying 00:07:03.430 --> 00:07:03.440 align:start position:0% so don't misunderstand I'm not saying 00:07:03.440 --> 00:07:05.710 align:start position:0% so don't misunderstand I'm not saying these<00:07:03.530> people<00:07:03.800> are<00:07:03.890> all<00:07:04.150> crypto<00:07:05.150> Austrians 00:07:05.710 --> 00:07:05.720 align:start position:0% these people are all crypto Austrians 00:07:05.720 --> 00:07:08.410 align:start position:0% these people are all crypto Austrians but<00:07:06.020> the<00:07:06.500> point<00:07:06.770> is<00:07:06.980> this<00:07:07.460> idea<00:07:07.940> that<00:07:08.150> the<00:07:08.390> only 00:07:08.410 --> 00:07:08.420 align:start position:0% but the point is this idea that the only 00:07:08.420 --> 00:07:10.390 align:start position:0% but the point is this idea that the only people<00:07:08.900> who<00:07:09.020> could<00:07:09.200> possibly<00:07:09.380> be<00:07:09.800> in<00:07:10.010> favor<00:07:10.250> of 00:07:10.390 --> 00:07:10.400 align:start position:0% people who could possibly be in favor of 00:07:10.400 --> 00:07:12.730 align:start position:0% people who could possibly be in favor of 100%<00:07:10.940> reserve<00:07:11.060> banking<00:07:11.210> are<00:07:11.780> weirdo<00:07:12.170> rothbard 00:07:12.730 --> 00:07:12.740 align:start position:0% 100% reserve banking are weirdo rothbard 00:07:12.740 --> 00:07:14.590 align:start position:0% 100% reserve banking are weirdo rothbard Ian's<00:07:12.950> that's<00:07:13.100> that's<00:07:13.400> not<00:07:13.580> true<00:07:13.910> okay 00:07:14.590 --> 00:07:14.600 align:start position:0% Ian's that's that's not true okay 00:07:14.600 --> 00:07:15.670 align:start position:0% Ian's that's that's not true okay there's<00:07:14.810> other<00:07:14.930> things<00:07:14.990> we're<00:07:15.350> off<00:07:15.650> by 00:07:15.670 --> 00:07:15.680 align:start position:0% there's other things we're off by 00:07:15.680 --> 00:07:17.170 align:start position:0% there's other things we're off by Erdogan's<00:07:16.130> are<00:07:16.220> unique<00:07:16.520> for<00:07:16.700> but<00:07:16.850> not<00:07:17.000> this 00:07:17.170 --> 00:07:17.180 align:start position:0% Erdogan's are unique for but not this 00:07:17.180 --> 00:07:20.230 align:start position:0% Erdogan's are unique for but not this one<00:07:18.040> later<00:07:19.040> in<00:07:19.220> the<00:07:19.310> week<00:07:19.460> I'll<00:07:19.880> do<00:07:20.030> all<00:07:20.120> on 00:07:20.230 --> 00:07:20.240 align:start position:0% one later in the week I'll do all on 00:07:20.240 --> 00:07:24.040 align:start position:0% one later in the week I'll do all on those<00:07:20.360> other<00:07:20.570> ones<00:07:22.210> okay<00:07:23.210> so<00:07:23.270> just<00:07:23.810> to<00:07:23.900> give 00:07:24.040 --> 00:07:24.050 align:start position:0% those other ones okay so just to give 00:07:24.050 --> 00:07:25.210 align:start position:0% those other ones okay so just to give you<00:07:24.140> an<00:07:24.230> idea<00:07:24.320> some<00:07:24.650> of<00:07:24.680> the<00:07:24.800> names<00:07:24.950> of<00:07:25.130> the 00:07:25.210 --> 00:07:25.220 align:start position:0% you an idea some of the names of the 00:07:25.220 --> 00:07:27.970 align:start position:0% you an idea some of the names of the people<00:07:25.340> involved<00:07:25.940> here<00:07:26.210> so<00:07:26.900> in<00:07:27.110> the<00:07:27.230> so<00:07:27.950> called 00:07:27.970 --> 00:07:27.980 align:start position:0% people involved here so in the so called 00:07:27.980 --> 00:07:30.940 align:start position:0% people involved here so in the so called free<00:07:28.430> banker<00:07:28.940> camp<00:07:29.420> and<00:07:29.930> also<00:07:30.290> by<00:07:30.620> the<00:07:30.680> way<00:07:30.830> the 00:07:30.940 --> 00:07:30.950 align:start position:0% free banker camp and also by the way the 00:07:30.950 --> 00:07:32.380 align:start position:0% free banker camp and also by the way the reason<00:07:31.070> I<00:07:31.190> put<00:07:31.370> Austria<00:07:31.820> in<00:07:31.880> quotation<00:07:32.360> marks 00:07:32.380 --> 00:07:32.390 align:start position:0% reason I put Austria in quotation marks 00:07:32.390 --> 00:07:33.610 align:start position:0% reason I put Austria in quotation marks here<00:07:32.660> it's<00:07:32.780> not<00:07:32.900> that<00:07:33.080> I'm<00:07:33.140> throwing<00:07:33.500> elbows 00:07:33.610 --> 00:07:33.620 align:start position:0% here it's not that I'm throwing elbows 00:07:33.620 --> 00:07:36.400 align:start position:0% here it's not that I'm throwing elbows at<00:07:34.070> somebody<00:07:34.400> it's<00:07:35.060> because<00:07:35.420> Celgene<00:07:35.960> himself 00:07:36.400 --> 00:07:36.410 align:start position:0% at somebody it's because Celgene himself 00:07:36.410 --> 00:07:38.560 align:start position:0% at somebody it's because Celgene himself doesn't<00:07:37.100> like<00:07:37.370> labels<00:07:37.850> so<00:07:38.090> he<00:07:38.180> doesn't<00:07:38.450> want 00:07:38.560 --> 00:07:38.570 align:start position:0% doesn't like labels so he doesn't want 00:07:38.570 --> 00:07:39.940 align:start position:0% doesn't like labels so he doesn't want to<00:07:38.660> be<00:07:38.720> called<00:07:38.930> an<00:07:39.050> Austrian<00:07:39.440> economist<00:07:39.800> not 00:07:39.940 --> 00:07:39.950 align:start position:0% to be called an Austrian economist not 00:07:39.950 --> 00:07:40.960 align:start position:0% to be called an Austrian economist not because<00:07:40.100> he<00:07:40.160> has<00:07:40.250> a<00:07:40.280> problem<00:07:40.490> with<00:07:40.670> Austrian 00:07:40.960 --> 00:07:40.970 align:start position:0% because he has a problem with Austrian 00:07:40.970 --> 00:07:42.760 align:start position:0% because he has a problem with Austrian economics<00:07:41.390> but<00:07:41.480> because<00:07:41.840> you<00:07:42.530> know<00:07:42.590> that 00:07:42.760 --> 00:07:42.770 align:start position:0% economics but because you know that 00:07:42.770 --> 00:07:44.650 align:start position:0% economics but because you know that constrains<00:07:43.220> him<00:07:43.490> and<00:07:43.670> he's<00:07:43.760> his<00:07:43.910> own<00:07:44.030> man<00:07:44.090> that 00:07:44.650 --> 00:07:44.660 align:start position:0% constrains him and he's his own man that 00:07:44.660 --> 00:07:45.760 align:start position:0% constrains him and he's his own man that sort<00:07:44.870> of<00:07:44.900> thing<00:07:45.050> right<00:07:45.200> so<00:07:45.320> that's<00:07:45.440> why<00:07:45.650> I'm 00:07:45.760 --> 00:07:45.770 align:start position:0% sort of thing right so that's why I'm 00:07:45.770 --> 00:07:47.050 align:start position:0% sort of thing right so that's why I'm putting<00:07:45.800> the<00:07:46.100> label<00:07:46.370> here<00:07:46.490> I'm<00:07:46.580> not<00:07:46.730> taking 00:07:47.050 --> 00:07:47.060 align:start position:0% putting the label here I'm not taking 00:07:47.060 --> 00:07:49.660 align:start position:0% putting the label here I'm not taking digs<00:07:47.240> at<00:07:47.360> people<00:07:47.770> so<00:07:48.770> Celgene<00:07:49.250> and<00:07:49.370> white<00:07:49.520> are 00:07:49.660 --> 00:07:49.670 align:start position:0% digs at people so Celgene and white are 00:07:49.670 --> 00:07:52.630 align:start position:0% digs at people so Celgene and white are the<00:07:49.790> two<00:07:49.970> most<00:07:50.150> famous<00:07:50.710> and<00:07:51.710> prolific<00:07:51.890> in<00:07:52.460> the 00:07:52.630 --> 00:07:52.640 align:start position:0% the two most famous and prolific in the 00:07:52.640 --> 00:07:55.330 align:start position:0% the two most famous and prolific in the free<00:07:53.360> banker<00:07:53.750> camp<00:07:54.020> who<00:07:54.380> come<00:07:54.830> at<00:07:54.950> this<00:07:55.040> stuff 00:07:55.330 --> 00:07:55.340 align:start position:0% free banker camp who come at this stuff 00:07:55.340 --> 00:07:58.150 align:start position:0% free banker camp who come at this stuff either<00:07:55.760> explicitly<00:07:56.420> as<00:07:56.630> Austrians<00:07:57.260> or<00:07:57.440> from<00:07:58.070> a 00:07:58.150 --> 00:07:58.160 align:start position:0% either explicitly as Austrians or from a 00:07:58.160 --> 00:07:59.860 align:start position:0% either explicitly as Austrians or from a very<00:07:58.370> Austrian<00:07:58.910> friendly<00:07:59.240> point<00:07:59.450> of<00:07:59.570> view<00:07:59.720> and 00:07:59.860 --> 00:07:59.870 align:start position:0% very Austrian friendly point of view and 00:07:59.870 --> 00:08:01.990 align:start position:0% very Austrian friendly point of view and so<00:07:59.960> they<00:08:00.190> understand<00:08:01.190> the<00:08:01.310> points<00:08:01.700> that<00:08:01.820> Roth 00:08:01.990 --> 00:08:02.000 align:start position:0% so they understand the points that Roth 00:08:02.000 --> 00:08:03.310 align:start position:0% so they understand the points that Roth bardeen's<00:08:02.420> bring<00:08:02.630> up<00:08:02.750> in<00:08:02.870> this<00:08:02.960> debate 00:08:03.310 --> 00:08:03.320 align:start position:0% bardeen's bring up in this debate 00:08:03.320 --> 00:08:05.290 align:start position:0% bardeen's bring up in this debate Steve<00:08:04.070> Horowitz<00:08:04.550> is<00:08:04.670> another<00:08:04.910> one<00:08:05.150> who's 00:08:05.290 --> 00:08:05.300 align:start position:0% Steve Horowitz is another one who's 00:08:05.300 --> 00:08:07.990 align:start position:0% Steve Horowitz is another one who's written<00:08:05.510> a<00:08:05.630> lot<00:08:05.780> on<00:08:05.960> this<00:08:06.280> on<00:08:07.280> the<00:08:07.460> other<00:08:07.640> side 00:08:07.990 --> 00:08:08.000 align:start position:0% written a lot on this on the other side 00:08:08.000 --> 00:08:09.760 align:start position:0% written a lot on this on the other side again<00:08:08.300> not<00:08:08.630> that<00:08:08.780> I'm<00:08:08.870> enumerate<00:08:09.290> every<00:08:09.320> buddy 00:08:09.760 --> 00:08:09.770 align:start position:0% again not that I'm enumerate every buddy 00:08:09.770 --> 00:08:10.900 align:start position:0% again not that I'm enumerate every buddy but<00:08:09.950> just<00:08:10.100> some<00:08:10.190> of<00:08:10.280> the<00:08:10.340> big<00:08:10.520> names<00:08:10.730> you'll 00:08:10.900 --> 00:08:10.910 align:start position:0% but just some of the big names you'll 00:08:10.910 --> 00:08:12.310 align:start position:0% but just some of the big names you'll see<00:08:11.120> if<00:08:11.240> you<00:08:11.330> read<00:08:11.540> some<00:08:11.720> of<00:08:11.750> the<00:08:11.870> classic 00:08:12.310 --> 00:08:12.320 align:start position:0% see if you read some of the classic 00:08:12.320 --> 00:08:14.050 align:start position:0% see if you read some of the classic exchanges<00:08:13.010> in<00:08:13.160> this<00:08:13.280> on<00:08:13.490> this<00:08:13.580> topic 00:08:14.050 --> 00:08:14.060 align:start position:0% exchanges in this on this topic 00:08:14.060 --> 00:08:16.630 align:start position:0% exchanges in this on this topic you<00:08:14.540> got<00:08:14.720> Guiteau<00:08:14.990> Hulse<00:08:15.200> min<00:08:15.560> walter<00:08:16.370> block 00:08:16.630 --> 00:08:16.640 align:start position:0% you got Guiteau Hulse min walter block 00:08:16.640 --> 00:08:18.970 align:start position:0% you got Guiteau Hulse min walter block Joe<00:08:17.600> Salerno 00:08:18.970 --> 00:08:18.980 align:start position:0% Joe Salerno 00:08:18.980 --> 00:08:21.310 align:start position:0% Joe Salerno oh<00:08:19.010> wait<00:08:19.670> that's<00:08:19.910> Eric<00:08:20.240> Clapton<00:08:20.600> sorry<00:08:20.870> my 00:08:21.310 --> 00:08:21.320 align:start position:0% oh wait that's Eric Clapton sorry my 00:08:21.320 --> 00:08:22.480 align:start position:0% oh wait that's Eric Clapton sorry my mistake 00:08:22.480 --> 00:08:22.490 align:start position:0% mistake 00:08:22.490 --> 00:08:25.330 align:start position:0% mistake you've<00:08:22.790> got<00:08:23.000> the<00:08:23.180> present<00:08:24.050> Murphy<00:08:24.920> and<00:08:25.160> then 00:08:25.330 --> 00:08:25.340 align:start position:0% you've got the present Murphy and then 00:08:25.340 --> 00:08:28.150 align:start position:0% you've got the present Murphy and then also<00:08:25.990> when<00:08:26.990> I<00:08:27.020> was<00:08:27.260> younger<00:08:27.650> I<00:08:27.680> was<00:08:27.860> on<00:08:28.040> the 00:08:28.150 --> 00:08:28.160 align:start position:0% also when I was younger I was on the 00:08:28.160 --> 00:08:29.920 align:start position:0% also when I was younger I was on the other<00:08:28.310> side<00:08:28.640> okay<00:08:29.240> and<00:08:29.270> I<00:08:29.390> wasn't<00:08:29.660> thinking 00:08:29.920 --> 00:08:29.930 align:start position:0% other side okay and I wasn't thinking 00:08:29.930 --> 00:08:31.390 align:start position:0% other side okay and I wasn't thinking clearly<00:08:30.140> back<00:08:30.440> then 00:08:31.390 --> 00:08:31.400 align:start position:0% clearly back then 00:08:31.400 --> 00:08:34.149 align:start position:0% clearly back then okay<00:08:32.180> but<00:08:32.390> that<00:08:33.289> this<00:08:33.560> wasn't<00:08:33.890> merely<00:08:34.070> a 00:08:34.149 --> 00:08:34.159 align:start position:0% okay but that this wasn't merely a 00:08:34.159 --> 00:08:35.680 align:start position:0% okay but that this wasn't merely a vehicle<00:08:34.310> for<00:08:34.610> me<00:08:34.700> to<00:08:34.729> use<00:08:34.909> a<00:08:34.940> cheap<00:08:35.180> joke<00:08:35.419> here 00:08:35.680 --> 00:08:35.690 align:start position:0% vehicle for me to use a cheap joke here 00:08:35.690 --> 00:08:38.440 align:start position:0% vehicle for me to use a cheap joke here this<00:08:36.200> is<00:08:36.380> true<00:08:36.710> that<00:08:36.979> when<00:08:37.640> I<00:08:37.669> was<00:08:38.029> younger<00:08:38.300> I 00:08:38.440 --> 00:08:38.450 align:start position:0% this is true that when I was younger I 00:08:38.450 --> 00:08:41.110 align:start position:0% this is true that when I was younger I actually<00:08:38.839> agreed<00:08:39.650> more<00:08:39.919> with<00:08:40.159> the<00:08:40.640> people<00:08:40.969> who 00:08:41.110 --> 00:08:41.120 align:start position:0% actually agreed more with the people who 00:08:41.120 --> 00:08:43.060 align:start position:0% actually agreed more with the people who you<00:08:41.450> know<00:08:41.750> call<00:08:41.930> themselves<00:08:42.349> free<00:08:42.620> bankers 00:08:43.060 --> 00:08:43.070 align:start position:0% you know call themselves free bankers 00:08:43.070 --> 00:08:44.950 align:start position:0% you know call themselves free bankers and<00:08:43.279> so<00:08:43.760> that's<00:08:43.940> partly<00:08:44.210> why<00:08:44.420> I'm<00:08:44.570> stressing 00:08:44.950 --> 00:08:44.960 align:start position:0% and so that's partly why I'm stressing 00:08:44.960 --> 00:08:47.430 align:start position:0% and so that's partly why I'm stressing things<00:08:45.350> that<00:08:45.589> you<00:08:45.950> know<00:08:46.040> to<00:08:46.820> get<00:08:46.940> rid<00:08:47.120> of 00:08:47.430 --> 00:08:47.440 align:start position:0% things that you know to get rid of 00:08:47.440 --> 00:08:48.910 align:start position:0% things that you know to get rid of misconceptions<00:08:48.440> because<00:08:48.620> some<00:08:48.770> of<00:08:48.860> that 00:08:48.910 --> 00:08:48.920 align:start position:0% misconceptions because some of that 00:08:48.920 --> 00:08:50.769 align:start position:0% misconceptions because some of that stuff<00:08:49.190> that<00:08:49.220> I<00:08:49.370> I<00:08:49.760> used<00:08:50.120> to<00:08:50.240> think<00:08:50.390> to<00:08:50.540> and<00:08:50.690> then 00:08:50.769 --> 00:08:50.779 align:start position:0% stuff that I I used to think to and then 00:08:50.779 --> 00:08:52.870 align:start position:0% stuff that I I used to think to and then as<00:08:50.900> I<00:08:51.230> read<00:08:51.440> more<00:08:51.650> and<00:08:51.920> realize<00:08:52.640> what<00:08:52.790> the 00:08:52.870 --> 00:08:52.880 align:start position:0% as I read more and realize what the 00:08:52.880 --> 00:08:55.000 align:start position:0% as I read more and realize what the claims<00:08:53.150> actually<00:08:53.630> were<00:08:53.779> okay<00:08:54.410> so<00:08:54.470> again<00:08:54.800> these 00:08:55.000 --> 00:08:55.010 align:start position:0% claims actually were okay so again these 00:08:55.010 --> 00:08:56.470 align:start position:0% claims actually were okay so again these these<00:08:55.220> are<00:08:55.370> some<00:08:55.550> of<00:08:55.640> the<00:08:55.730> people<00:08:56.000> who<00:08:56.150> if<00:08:56.450> you 00:08:56.470 --> 00:08:56.480 align:start position:0% these are some of the people who if you 00:08:56.480 --> 00:08:58.240 align:start position:0% these are some of the people who if you read<00:08:56.750> the<00:08:56.839> exchanges<00:08:57.410> have<00:08:57.560> been<00:08:57.710> weighing<00:08:58.040> in 00:08:58.240 --> 00:08:58.250 align:start position:0% read the exchanges have been weighing in 00:08:58.250 --> 00:09:01.329 align:start position:0% read the exchanges have been weighing in on<00:08:58.339> both<00:08:58.550> sides<00:08:58.820> of<00:08:58.970> the<00:08:59.029> issue<00:09:00.010> okay<00:09:01.010> another 00:09:01.329 --> 00:09:01.339 align:start position:0% on both sides of the issue okay another 00:09:01.339 --> 00:09:03.760 align:start position:0% on both sides of the issue okay another thing<00:09:01.460> that<00:09:02.000> it's<00:09:02.300> necessary<00:09:02.870> to<00:09:03.050> clear<00:09:03.529> up 00:09:03.760 --> 00:09:03.770 align:start position:0% thing that it's necessary to clear up 00:09:03.770 --> 00:09:05.920 align:start position:0% thing that it's necessary to clear up you'll<00:09:04.430> see<00:09:04.490> this<00:09:04.850> right<00:09:05.180> at<00:09:05.300> the<00:09:05.390> outset<00:09:05.779> in 00:09:05.920 --> 00:09:05.930 align:start position:0% you'll see this right at the outset in 00:09:05.930 --> 00:09:07.870 align:start position:0% you'll see this right at the outset in some<00:09:06.080> of<00:09:06.170> these<00:09:06.230> debates<00:09:06.650> is<00:09:06.950> that<00:09:07.580> some 00:09:07.870 --> 00:09:07.880 align:start position:0% some of these debates is that some 00:09:07.880 --> 00:09:09.370 align:start position:0% some of these debates is that some people<00:09:08.270> will<00:09:08.480> say<00:09:08.750> and<00:09:08.960> even<00:09:09.050> trained 00:09:09.370 --> 00:09:09.380 align:start position:0% people will say and even trained 00:09:09.380 --> 00:09:11.130 align:start position:0% people will say and even trained economists<00:09:09.920> like<00:09:10.010> I<00:09:10.100> I've<00:09:10.520> seen<00:09:10.550> this<00:09:10.910> happen 00:09:11.130 --> 00:09:11.140 align:start position:0% economists like I I've seen this happen 00:09:11.140 --> 00:09:14.980 align:start position:0% economists like I I've seen this happen where<00:09:12.339> they'll<00:09:13.339> learn<00:09:14.210> that<00:09:14.270> are<00:09:14.690> you<00:09:14.779> kidding 00:09:14.980 --> 00:09:14.990 align:start position:0% where they'll learn that are you kidding 00:09:14.990 --> 00:09:16.390 align:start position:0% where they'll learn that are you kidding me<00:09:15.170> there's<00:09:15.320> some<00:09:15.470> economists<00:09:15.950> out<00:09:16.100> there<00:09:16.279> who 00:09:16.390 --> 00:09:16.400 align:start position:0% me there's some economists out there who 00:09:16.400 --> 00:09:19.660 align:start position:0% me there's some economists out there who are<00:09:16.850> in<00:09:16.940> favor<00:09:17.150> 100%<00:09:17.750> reserve<00:09:17.900> banking<00:09:18.670> not 00:09:19.660 --> 00:09:19.670 align:start position:0% are in favor 100% reserve banking not 00:09:19.670 --> 00:09:20.769 align:start position:0% are in favor 100% reserve banking not realizing<00:09:20.270> that<00:09:20.300> there's<00:09:20.540> this<00:09:20.630> whole 00:09:20.769 --> 00:09:20.779 align:start position:0% realizing that there's this whole 00:09:20.779 --> 00:09:23.170 align:start position:0% realizing that there's this whole tradition<00:09:20.990> of<00:09:21.410> you<00:09:21.650> know<00:09:21.770> top-flight<00:09:22.310> Nobel 00:09:23.170 --> 00:09:23.180 align:start position:0% tradition of you know top-flight Nobel 00:09:23.180 --> 00:09:25.120 align:start position:0% tradition of you know top-flight Nobel prize-winning<00:09:23.630> economists<00:09:24.200> who<00:09:24.350> fall<00:09:24.950> into 00:09:25.120 --> 00:09:25.130 align:start position:0% prize-winning economists who fall into 00:09:25.130 --> 00:09:27.670 align:start position:0% prize-winning economists who fall into that<00:09:25.190> camp<00:09:25.520> for<00:09:25.820> various<00:09:26.170> reasons<00:09:27.170> and 00:09:27.670 --> 00:09:27.680 align:start position:0% that camp for various reasons and 00:09:27.680 --> 00:09:29.140 align:start position:0% that camp for various reasons and they'll<00:09:28.220> say<00:09:28.400> don't<00:09:28.580> they<00:09:28.670> honor<00:09:28.790> that's<00:09:29.029> how 00:09:29.140 --> 00:09:29.150 align:start position:0% they'll say don't they honor that's how 00:09:29.150 --> 00:09:30.460 align:start position:0% they'll say don't they honor that's how banking<00:09:29.540> works<00:09:29.690> like<00:09:29.930> you<00:09:30.020> couldn't<00:09:30.260> have 00:09:30.460 --> 00:09:30.470 align:start position:0% banking works like you couldn't have 00:09:30.470 --> 00:09:32.170 align:start position:0% banking works like you couldn't have banking<00:09:30.950> how<00:09:31.490> could<00:09:31.640> it<00:09:31.730> how<00:09:31.820> could<00:09:31.940> you<00:09:32.060> have 00:09:32.170 --> 00:09:32.180 align:start position:0% banking how could it how could you have 00:09:32.180 --> 00:09:34.990 align:start position:0% banking how could it how could you have somebody<00:09:32.480> you<00:09:32.660> know<00:09:32.770> savers<00:09:33.770> go<00:09:34.460> they<00:09:34.820> give 00:09:34.990 --> 00:09:35.000 align:start position:0% somebody you know savers go they give 00:09:35.000 --> 00:09:37.150 align:start position:0% somebody you know savers go they give funds<00:09:35.270> to<00:09:35.510> the<00:09:35.660> intermediary<00:09:36.380> institution 00:09:37.150 --> 00:09:37.160 align:start position:0% funds to the intermediary institution 00:09:37.160 --> 00:09:38.199 align:start position:0% funds to the intermediary institution and<00:09:37.310> then<00:09:37.400> it<00:09:37.490> lends<00:09:37.670> it<00:09:37.790> out<00:09:37.850> to<00:09:38.000> other<00:09:38.150> people 00:09:38.199 --> 00:09:38.209 align:start position:0% and then it lends it out to other people 00:09:38.209 --> 00:09:40.540 align:start position:0% and then it lends it out to other people and<00:09:38.750> and<00:09:39.290> how<00:09:39.470> how<00:09:40.040> would<00:09:40.100> that<00:09:40.279> even<00:09:40.339> work 00:09:40.540 --> 00:09:40.550 align:start position:0% and and how how would that even work 00:09:40.550 --> 00:09:42.340 align:start position:0% and and how how would that even work without<00:09:40.910> having<00:09:41.510> fractional<00:09:42.110> reserve 00:09:42.340 --> 00:09:42.350 align:start position:0% without having fractional reserve 00:09:42.350 --> 00:09:44.860 align:start position:0% without having fractional reserve banking<00:09:42.560> alright<00:09:43.490> and<00:09:43.640> so<00:09:44.330> this<00:09:44.480> and<00:09:44.660> this<00:09:44.720> is 00:09:44.860 --> 00:09:44.870 align:start position:0% banking alright and so this and this is 00:09:44.870 --> 00:09:47.170 align:start position:0% banking alright and so this and this is how<00:09:44.959> many<00:09:45.170> people<00:09:45.860> think<00:09:46.279> about<00:09:46.490> it<00:09:46.700> not<00:09:47.120> just 00:09:47.170 --> 00:09:47.180 align:start position:0% how many people think about it not just 00:09:47.180 --> 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and then they're you know they<00:09:52.070> have<00:09:52.250> to<00:09:52.370> be<00:09:52.459> able<00:09:52.520> to<00:09:52.610> lend<00:09:52.760> it<00:09:52.880> out<00:09:52.970> to 00:09:53.019 --> 00:09:53.029 align:start position:0% they have to be able to lend it out to 00:09:53.029 --> 00:09:54.850 align:start position:0% they have to be able to lend it out to earn<00:09:53.330> interest<00:09:53.600> otherwise<00:09:53.930> how<00:09:54.260> you<00:09:54.620> know<00:09:54.709> how 00:09:54.850 --> 00:09:54.860 align:start position:0% earn interest otherwise how you know how 00:09:54.860 --> 00:09:56.380 align:start position:0% earn interest otherwise how you know how are<00:09:54.950> they<00:09:55.070> gonna<00:09:55.190> pay<00:09:55.400> me<00:09:55.550> interest<00:09:55.730> so<00:09:56.209> that's 00:09:56.380 --> 00:09:56.390 align:start position:0% are they gonna pay me interest so that's 00:09:56.390 --> 00:09:58.930 align:start position:0% are they gonna pay me interest so that's the<00:09:57.140> the<00:09:57.560> dilemma<00:09:58.100> that<00:09:58.310> people<00:09:58.520> have<00:09:58.700> they 00:09:58.930 --> 00:09:58.940 align:start position:0% the the dilemma that people have they 00:09:58.940 --> 00:10:01.210 align:start position:0% the the dilemma that people have they think<00:09:59.450> that<00:09:59.570> this<00:09:59.690> has<00:09:59.870> to<00:10:00.080> be<00:10:00.260> something 00:10:01.210 --> 00:10:01.220 align:start position:0% think that this has to be something 00:10:01.220 --> 00:10:02.829 align:start position:0% think that this has to be something intrinsic<00:10:01.790> to<00:10:01.940> banking<00:10:02.240> itself<00:10:02.630> that 00:10:02.829 --> 00:10:02.839 align:start position:0% intrinsic to banking itself that 00:10:02.839 --> 00:10:04.690 align:start position:0% intrinsic to banking itself that fractional<00:10:03.290> reserve<00:10:03.500> banking<00:10:03.740> necessarily 00:10:04.690 --> 00:10:04.700 align:start position:0% fractional reserve banking necessarily 00:10:04.700 --> 00:10:06.100 align:start position:0% fractional reserve banking necessarily goes<00:10:04.850> hand<00:10:05.089> in<00:10:05.120> hand<00:10:05.180> with<00:10:05.480> just<00:10:05.510> banking 00:10:06.100 --> 00:10:06.110 align:start position:0% goes hand in hand with just banking 00:10:06.110 --> 00:10:07.840 align:start position:0% goes hand in hand with just banking because<00:10:06.529> otherwise<00:10:06.830> how<00:10:07.160> would<00:10:07.220> it<00:10:07.339> even<00:10:07.520> be 00:10:07.840 --> 00:10:07.850 align:start position:0% because otherwise how would it even be 00:10:07.850 --> 00:10:10.870 align:start position:0% because otherwise how would it even be profitable<00:10:08.570> so<00:10:09.020> that's<00:10:09.410> not<00:10:09.770> correct<00:10:10.190> alright 00:10:10.870 --> 00:10:10.880 align:start position:0% profitable so that's not correct alright 00:10:10.880 --> 00:10:12.880 align:start position:0% profitable so that's not correct alright so<00:10:11.000> and<00:10:11.150> and<00:10:11.390> what's<00:10:11.570> what's<00:10:12.230> happening<00:10:12.709> here 00:10:12.880 --> 00:10:12.890 align:start position:0% so and and what's what's happening here 00:10:12.890 --> 00:10:14.440 align:start position:0% so and and what's what's happening here is<00:10:13.010> your<00:10:13.250> blend<00:10:13.580> if<00:10:13.760> that's<00:10:14.150> where<00:10:14.300> you're 00:10:14.440 --> 00:10:14.450 align:start position:0% is your blend if that's where you're 00:10:14.450 --> 00:10:16.840 align:start position:0% is your blend if that's where you're coming<00:10:14.779> from<00:10:14.810> you're<00:10:15.050> blending<00:10:15.560> together<00:10:16.459> two 00:10:16.840 --> 00:10:16.850 align:start position:0% coming from you're blending together two 00:10:16.850 --> 00:10:18.519 align:start position:0% coming from you're blending together two different<00:10:16.970> distinct<00:10:17.510> functions<00:10:17.930> that<00:10:18.140> banks 00:10:18.519 --> 00:10:18.529 align:start position:0% different distinct functions that banks 00:10:18.529 --> 00:10:21.370 align:start position:0% different distinct functions that banks serve<00:10:19.130> in<00:10:19.400> the<00:10:19.459> modern<00:10:19.760> world<00:10:19.940> okay<00:10:20.839> so<00:10:20.870> one 00:10:21.370 --> 00:10:21.380 align:start position:0% serve in the modern world okay so one 00:10:21.380 --> 00:10:23.380 align:start position:0% serve in the modern world okay so one thing<00:10:21.410> is<00:10:21.709> they<00:10:22.070> can<00:10:22.339> maintain<00:10:22.730> what's<00:10:23.180> called 00:10:23.380 --> 00:10:23.390 align:start position:0% thing is they can maintain what's called 00:10:23.390 --> 00:10:26.590 align:start position:0% thing is they can maintain what's called demand<00:10:23.720> deposits<00:10:24.440> meaning<00:10:25.430> you<00:10:25.970> can<00:10:26.180> get<00:10:26.360> that 00:10:26.590 --> 00:10:26.600 align:start position:0% demand deposits meaning you can get that 00:10:26.600 --> 00:10:28.720 align:start position:0% demand deposits meaning you can get that money<00:10:26.870> upon<00:10:27.380> demand<00:10:27.980> that's<00:10:28.370> where<00:10:28.550> the<00:10:28.610> title 00:10:28.720 --> 00:10:28.730 align:start position:0% money upon demand that's where the title 00:10:28.730 --> 00:10:31.300 align:start position:0% money upon demand that's where the title comes<00:10:29.000> from<00:10:29.300> and<00:10:29.600> so<00:10:30.380> just<00:10:30.770> think<00:10:31.010> of<00:10:31.100> like<00:10:31.250> a 00:10:31.300 --> 00:10:31.310 align:start position:0% comes from and so just think of like a 00:10:31.310 --> 00:10:33.280 align:start position:0% comes from and so just think of like a checking<00:10:31.910> account<00:10:31.970> like<00:10:32.630> that<00:10:32.810> that's<00:10:33.050> what<00:10:33.260> a 00:10:33.280 --> 00:10:33.290 align:start position:0% checking account like that that's what a 00:10:33.290 --> 00:10:35.650 align:start position:0% checking account like that that's what a demand<00:10:33.650> deposit<00:10:33.800> would<00:10:34.250> be<00:10:34.430> and<00:10:34.670> so<00:10:35.390> why<00:10:35.630> would 00:10:35.650 --> 00:10:35.660 align:start position:0% demand deposit would be and so why would 00:10:35.660 --> 00:10:38.500 align:start position:0% demand deposit would be and so why would you<00:10:35.870> use<00:10:36.050> a<00:10:36.260> demand<00:10:36.709> deposit<00:10:37.000> that's<00:10:38.000> 100 00:10:38.500 --> 00:10:38.510 align:start position:0% you use a demand deposit that's 100 00:10:38.510 --> 00:10:41.650 align:start position:0% you use a demand deposit that's 100 percent<00:10:38.630> reserves<00:10:39.910> because<00:10:40.910> it's<00:10:41.209> for<00:10:41.480> safety 00:10:41.650 --> 00:10:41.660 align:start position:0% percent reserves because it's for safety 00:10:41.660 --> 00:10:43.390 align:start position:0% percent reserves because it's for safety and<00:10:41.930> convenience<00:10:42.140> right<00:10:42.800> all<00:10:42.920> the<00:10:43.040> reasons 00:10:43.390 --> 00:10:43.400 align:start position:0% and convenience right all the reasons 00:10:43.400 --> 00:10:44.500 align:start position:0% and convenience right all the reasons that<00:10:43.459> years<00:10:43.700> why<00:10:43.880> would<00:10:43.910> you<00:10:44.089> keep<00:10:44.209> your<00:10:44.390> money 00:10:44.500 --> 00:10:44.510 align:start position:0% that years why would you keep your money 00:10:44.510 --> 00:10:45.370 align:start position:0% that years why would you keep your money in<00:10:44.690> a<00:10:44.720> bank 00:10:45.370 --> 00:10:45.380 align:start position:0% in a bank 00:10:45.380 --> 00:10:47.440 align:start position:0% in a bank well<00:10:45.650> because<00:10:45.980> it's<00:10:46.160> somebody<00:10:46.580> mugs<00:10:46.910> you<00:10:47.150> you 00:10:47.440 --> 00:10:47.450 align:start position:0% well because it's somebody mugs you you 00:10:47.450 --> 00:10:48.790 align:start position:0% well because it's somebody mugs you you know<00:10:47.540> they're<00:10:47.660> not<00:10:47.750> gonna<00:10:47.870> get<00:10:48.050> access<00:10:48.530> to<00:10:48.560> all 00:10:48.790 --> 00:10:48.800 align:start position:0% know they're not gonna get access to all 00:10:48.800 --> 00:10:50.950 align:start position:0% know they're not gonna get access to all of<00:10:48.830> your<00:10:49.100> you'll<00:10:49.640> find<00:10:49.850> your<00:10:50.330> monetary<00:10:50.720> wealth 00:10:50.950 --> 00:10:50.960 align:start position:0% of your you'll find your monetary wealth 00:10:50.960 --> 00:10:52.450 align:start position:0% of your you'll find your monetary wealth if<00:10:51.530> you've<00:10:51.710> got<00:10:51.860> a<00:10:51.890> bunch<00:10:52.070> of<00:10:52.220> it<00:10:52.340> in<00:10:52.400> the 00:10:52.450 --> 00:10:52.460 align:start position:0% if you've got a bunch of it in the 00:10:52.460 --> 00:10:54.700 align:start position:0% if you've got a bunch of it in the secure<00:10:52.820> institution<00:10:53.450> just<00:10:53.480> the<00:10:53.810> convenience 00:10:54.700 --> 00:10:54.710 align:start position:0% secure institution just the convenience 00:10:54.710 --> 00:10:56.110 align:start position:0% secure institution just the convenience you're<00:10:54.830> writing<00:10:55.160> big<00:10:55.340> checks<00:10:55.670> to<00:10:55.850> people 00:10:56.110 --> 00:10:56.120 align:start position:0% you're writing big checks to people 00:10:56.120 --> 00:10:58.180 align:start position:0% you're writing big checks to people you're<00:10:56.270> sliding<00:10:56.540> your<00:10:56.720> debit<00:10:57.140> card<00:10:57.170> all<00:10:57.680> that 00:10:58.180 --> 00:10:58.190 align:start position:0% you're sliding your debit card all that 00:10:58.190 --> 00:11:02.380 align:start position:0% you're sliding your debit card all that stuff<00:10:58.400> is<00:10:58.520> possible<00:10:59.060> because<00:10:59.780> of<00:11:00.130> this<00:11:01.390> number 00:11:02.380 --> 00:11:02.390 align:start position:0% stuff is possible because of this number 00:11:02.390 --> 00:11:04.150 align:start position:0% stuff is possible because of this number one<00:11:02.690> this<00:11:02.960> point<00:11:03.230> number<00:11:03.440> one<00:11:03.590> here<00:11:03.800> where<00:11:03.950> you 00:11:04.150 --> 00:11:04.160 align:start position:0% one this point number one here where you 00:11:04.160 --> 00:11:06.430 align:start position:0% one this point number one here where you it's<00:11:04.550> your<00:11:04.790> money<00:11:05.000> and<00:11:05.300> you're<00:11:05.810> just<00:11:05.990> storing 00:11:06.430 --> 00:11:06.440 align:start position:0% it's your money and you're just storing 00:11:06.440 --> 00:11:07.960 align:start position:0% it's your money and you're just storing it<00:11:06.530> somewhere<00:11:06.560> safely<00:11:07.250> and<00:11:07.610> then<00:11:07.700> they<00:11:07.790> come 00:11:07.960 --> 00:11:07.970 align:start position:0% it somewhere safely and then they come 00:11:07.970 --> 00:11:09.370 align:start position:0% it somewhere safely and then they come up<00:11:08.060> with<00:11:08.150> convenient<00:11:08.720> ways<00:11:08.870> that<00:11:09.110> you<00:11:09.200> can 00:11:09.370 --> 00:11:09.380 align:start position:0% up with convenient ways that you can 00:11:09.380 --> 00:11:11.650 align:start position:0% up with convenient ways that you can transfer<00:11:09.890> it<00:11:09.920> to<00:11:10.100> others<00:11:10.430> that<00:11:11.150> don't<00:11:11.390> involve 00:11:11.650 --> 00:11:11.660 align:start position:0% transfer it to others that don't involve 00:11:11.660 --> 00:11:13.420 align:start position:0% transfer it to others that don't involve you<00:11:11.960> physically<00:11:12.470> being<00:11:12.650> in<00:11:12.770> possession<00:11:13.070> of<00:11:13.310> it 00:11:13.420 --> 00:11:13.430 align:start position:0% you physically being in possession of it 00:11:13.430 --> 00:11:14.500 align:start position:0% you physically being in possession of it and<00:11:13.520> handing<00:11:13.790> it<00:11:13.850> over<00:11:13.910> to<00:11:14.060> somebody<00:11:14.420> because 00:11:14.500 --> 00:11:14.510 align:start position:0% and handing it over to somebody because 00:11:14.510 --> 00:11:16.060 align:start position:0% and handing it over to somebody because then<00:11:14.720> that's<00:11:14.870> inconvenient<00:11:15.380> and<00:11:15.620> also<00:11:15.920> it's 00:11:16.060 --> 00:11:16.070 align:start position:0% then that's inconvenient and also it's 00:11:16.070 --> 00:11:18.130 align:start position:0% then that's inconvenient and also it's risky<00:11:16.490> because<00:11:17.090> you<00:11:17.180> could<00:11:17.300> be<00:11:17.390> liable<00:11:17.750> to<00:11:17.810> you 00:11:18.130 --> 00:11:18.140 align:start position:0% risky because you could be liable to you 00:11:18.140 --> 00:11:19.990 align:start position:0% risky because you could be liable to you know<00:11:18.230> getting<00:11:18.410> mugged<00:11:18.650> alright<00:11:19.400> so<00:11:19.550> that<00:11:19.730> is 00:11:19.990 --> 00:11:20.000 align:start position:0% know getting mugged alright so that is 00:11:20.000 --> 00:11:22.120 align:start position:0% know getting mugged alright so that is what<00:11:20.930> a<00:11:20.960> demand<00:11:21.290> deposit<00:11:21.440> or<00:11:21.800> checking 00:11:22.120 --> 00:11:22.130 align:start position:0% what a demand deposit or checking 00:11:22.130 --> 00:11:24.550 align:start position:0% what a demand deposit or checking account<00:11:22.190> balance<00:11:22.880> would<00:11:23.000> be<00:11:23.060> and<00:11:23.420> then<00:11:24.350> a 00:11:24.550 --> 00:11:24.560 align:start position:0% account balance would be and then a 00:11:24.560 --> 00:11:26.380 align:start position:0% account balance would be and then a whole<00:11:24.770> separate<00:11:25.280> function<00:11:25.820> of<00:11:26.000> what<00:11:26.180> modern 00:11:26.380 --> 00:11:26.390 align:start position:0% whole separate function of what modern 00:11:26.390 --> 00:11:30.250 align:start position:0% whole separate function of what modern banks<00:11:26.870> do<00:11:27.080> in<00:11:27.230> practice<00:11:27.470> is<00:11:28.120> to<00:11:29.120> act<00:11:29.480> as<00:11:29.750> credit 00:11:30.250 --> 00:11:30.260 align:start position:0% banks do in practice is to act as credit 00:11:30.260 --> 00:11:32.920 align:start position:0% banks do in practice is to act as credit intermediaries<00:11:31.130> and<00:11:31.700> so<00:11:31.970> this<00:11:32.150> you<00:11:32.660> can<00:11:32.780> call 00:11:32.920 --> 00:11:32.930 align:start position:0% intermediaries and so this you can call 00:11:32.930 --> 00:11:35.440 align:start position:0% intermediaries and so this you can call these<00:11:33.080> things<00:11:33.260> time<00:11:33.650> deposits<00:11:34.280> meaning<00:11:34.640> the 00:11:35.440 --> 00:11:35.450 align:start position:0% these things time deposits meaning the 00:11:35.450 --> 00:11:37.270 align:start position:0% these things time deposits meaning the person<00:11:35.630> deposits<00:11:36.350> the<00:11:36.470> money<00:11:36.650> for<00:11:36.920> a<00:11:36.950> given 00:11:37.270 --> 00:11:37.280 align:start position:0% person deposits the money for a given 00:11:37.280 --> 00:11:39.580 align:start position:0% person deposits the money for a given amount<00:11:37.460> of<00:11:37.610> time<00:11:37.670> right<00:11:38.510> it's<00:11:39.020> not<00:11:39.110> a<00:11:39.170> demand 00:11:39.580 --> 00:11:39.590 align:start position:0% amount of time right it's not a demand 00:11:39.590 --> 00:11:41.230 align:start position:0% amount of time right it's not a demand deposit<00:11:39.710> they<00:11:40.130> can't<00:11:40.400> request<00:11:40.790> that<00:11:41.000> upon 00:11:41.230 --> 00:11:41.240 align:start position:0% deposit they can't request that upon 00:11:41.240 --> 00:11:43.930 align:start position:0% deposit they can't request that upon demand<00:11:41.570> their<00:11:42.320> money's<00:11:42.650> tied<00:11:43.010> up<00:11:43.040> for<00:11:43.880> a 00:11:43.930 --> 00:11:43.940 align:start position:0% demand their money's tied up for a 00:11:43.940 --> 00:11:45.820 align:start position:0% demand their money's tied up for a contractually<00:11:44.570> specified<00:11:45.200> length<00:11:45.410> of<00:11:45.590> time 00:11:45.820 --> 00:11:45.830 align:start position:0% contractually specified length of time 00:11:45.830 --> 00:11:48.070 align:start position:0% contractually specified length of time and<00:11:46.160> so<00:11:46.730> think<00:11:47.000> of<00:11:47.060> that<00:11:47.120> like<00:11:47.420> is<00:11:47.510> a<00:11:47.540> genuine 00:11:48.070 --> 00:11:48.080 align:start position:0% and so think of that like is a genuine 00:11:48.080 --> 00:11:48.940 align:start position:0% and so think of that like is a genuine savings<00:11:48.500> account 00:11:48.940 --> 00:11:48.950 align:start position:0% savings account 00:11:48.950 --> 00:11:50.710 align:start position:0% savings account okay<00:11:49.100> so<00:11:49.160> again<00:11:49.520> even<00:11:49.850> here<00:11:50.180> it<00:11:50.300> gets<00:11:50.450> tricky 00:11:50.710 --> 00:11:50.720 align:start position:0% okay so again even here it gets tricky 00:11:50.720 --> 00:11:53.440 align:start position:0% okay so again even here it gets tricky because<00:11:50.840> for<00:11:51.770> a<00:11:51.800> lot<00:11:52.040> of<00:11:52.070> you<00:11:52.370> probably<00:11:53.300> the 00:11:53.440 --> 00:11:53.450 align:start position:0% because for a lot of you probably the 00:11:53.450 --> 00:11:54.760 align:start position:0% because for a lot of you probably the distinction<00:11:53.780> between<00:11:53.990> a<00:11:54.200> checking<00:11:54.590> and<00:11:54.650> a 00:11:54.760 --> 00:11:54.770 align:start position:0% distinction between a checking and a 00:11:54.770 --> 00:11:56.710 align:start position:0% distinction between a checking and a savings<00:11:54.800> account<00:11:55.190> at<00:11:55.610> your<00:11:55.760> local<00:11:56.180> bank<00:11:56.510> that 00:11:56.710 --> 00:11:56.720 align:start position:0% savings account at your local bank that 00:11:56.720 --> 00:11:58.810 align:start position:0% savings account at your local bank that you<00:11:56.840> use<00:11:57.110> in<00:11:57.560> practice<00:11:58.100> you<00:11:58.370> don't<00:11:58.520> really<00:11:58.640> see 00:11:58.810 --> 00:11:58.820 align:start position:0% you use in practice you don't really see 00:11:58.820 --> 00:12:01.000 align:start position:0% you use in practice you don't really see what<00:11:58.940> the<00:11:59.000> differences<00:11:59.480> but<00:12:00.260> theoretically 00:12:01.000 --> 00:12:01.010 align:start position:0% what the differences but theoretically 00:12:01.010 --> 00:12:02.980 align:start position:0% what the differences but theoretically speaking<00:12:01.790> these<00:12:01.970> are<00:12:02.030> distinct<00:12:02.630> functions 00:12:02.980 --> 00:12:02.990 align:start position:0% speaking these are distinct functions 00:12:02.990 --> 00:12:06.490 align:start position:0% speaking these are distinct functions that<00:12:03.140> banks<00:12:03.440> serve<00:12:03.650> okay<00:12:04.520> and<00:12:04.700> so<00:12:04.850> here<00:12:05.500> the 00:12:06.490 --> 00:12:06.500 align:start position:0% that banks serve okay and so here the 00:12:06.500 --> 00:12:07.480 align:start position:0% that banks serve okay and so here the easiest<00:12:06.770> way<00:12:06.920> to<00:12:06.950> think<00:12:07.160> about<00:12:07.340> is<00:12:07.460> a 00:12:07.480 --> 00:12:07.490 align:start position:0% easiest way to think about is a 00:12:07.490 --> 00:12:09.670 align:start position:0% easiest way to think about is a certificate<00:12:07.850> of<00:12:08.150> deposit<00:12:08.330> or<00:12:08.750> a<00:12:08.840> CD<00:12:09.320> if<00:12:09.590> you 00:12:09.670 --> 00:12:09.680 align:start position:0% certificate of deposit or a CD if you 00:12:09.680 --> 00:12:10.510 align:start position:0% certificate of deposit or a CD if you know<00:12:09.800> what<00:12:09.890> that<00:12:09.980> is<00:12:10.040> right<00:12:10.160> so<00:12:10.250> you<00:12:10.310> might<00:12:10.430> be 00:12:10.510 --> 00:12:10.520 align:start position:0% know what that is right so you might be 00:12:10.520 --> 00:12:12.040 align:start position:0% know what that is right so you might be driving<00:12:10.730> you<00:12:11.060> see<00:12:11.210> the<00:12:11.300> bank<00:12:11.450> sing<00:12:11.660> uh<00:12:11.750> you 00:12:12.040 --> 00:12:12.050 align:start position:0% driving you see the bank sing uh you 00:12:12.050 --> 00:12:14.290 align:start position:0% driving you see the bank sing uh you know<00:12:12.140> CDs<00:12:12.650> at<00:12:12.890> one<00:12:13.280> point<00:12:13.550> two<00:12:13.790> percent<00:12:13.940> or 00:12:14.290 --> 00:12:14.300 align:start position:0% know CDs at one point two percent or 00:12:14.300 --> 00:12:16.510 align:start position:0% know CDs at one point two percent or whatever<00:12:14.420> it<00:12:14.660> is<00:12:14.780> and<00:12:15.440> so<00:12:15.560> there<00:12:15.830> the<00:12:15.980> idea<00:12:16.130> is 00:12:16.510 --> 00:12:16.520 align:start position:0% whatever it is and so there the idea is 00:12:16.520 --> 00:12:18.130 align:start position:0% whatever it is and so there the idea is let's<00:12:16.700> say<00:12:16.880> you<00:12:16.940> give<00:12:17.210> the<00:12:17.360> bank<00:12:17.570> a<00:12:17.690> thousand 00:12:18.130 --> 00:12:18.140 align:start position:0% let's say you give the bank a thousand 00:12:18.140 --> 00:12:20.620 align:start position:0% let's say you give the bank a thousand dollars<00:12:18.530> and<00:12:18.800> then<00:12:19.400> they<00:12:19.550> give<00:12:19.790> you<00:12:20.000> a<00:12:20.270> piece 00:12:20.620 --> 00:12:20.630 align:start position:0% dollars and then they give you a piece 00:12:20.630 --> 00:12:22.360 align:start position:0% dollars and then they give you a piece of<00:12:20.780> paper<00:12:20.930> that's<00:12:21.260> legally<00:12:21.650> binding<00:12:21.680> saying 00:12:22.360 --> 00:12:22.370 align:start position:0% of paper that's legally binding saying 00:12:22.370 --> 00:12:24.630 align:start position:0% of paper that's legally binding saying the<00:12:22.520> the<00:12:22.940> bearer<00:12:23.240> of<00:12:23.360> this<00:12:23.540> certificate 00:12:24.630 --> 00:12:24.640 align:start position:0% the the bearer of this certificate 00:12:24.640 --> 00:12:27.460 align:start position:0% the the bearer of this certificate twelve<00:12:25.640> months<00:12:25.940> in<00:12:26.030> the<00:12:26.120> future<00:12:26.510> is<00:12:26.780> entitled 00:12:27.460 --> 00:12:27.470 align:start position:0% twelve months in the future is entitled 00:12:27.470 --> 00:12:30.160 align:start position:0% twelve months in the future is entitled to<00:12:27.830> one<00:12:28.400> thousand<00:12:28.850> fifty<00:12:29.150> dollars<00:12:29.510> let's<00:12:29.960> say 00:12:30.160 --> 00:12:30.170 align:start position:0% to one thousand fifty dollars let's say 00:12:30.170 --> 00:12:31.690 align:start position:0% to one thousand fifty dollars let's say okay<00:12:30.620> so<00:12:30.680> that<00:12:30.860> would<00:12:30.950> be<00:12:31.040> a<00:12:31.070> five<00:12:31.280> percent 00:12:31.690 --> 00:12:31.700 align:start position:0% okay so that would be a five percent 00:12:31.700 --> 00:12:33.340 align:start position:0% okay so that would be a five percent implicit<00:12:32.000> rate<00:12:32.330> of<00:12:32.450> return<00:12:32.720> or<00:12:32.750> yield<00:12:33.140> on<00:12:33.320> that 00:12:33.340 --> 00:12:33.350 align:start position:0% implicit rate of return or yield on that 00:12:33.350 --> 00:12:36.610 align:start position:0% implicit rate of return or yield on that thing<00:12:33.770> and<00:12:34.040> so<00:12:34.820> what<00:12:35.000> you're<00:12:35.120> doing<00:12:35.480> is<00:12:35.630> you're 00:12:36.610 --> 00:12:36.620 align:start position:0% thing and so what you're doing is you're 00:12:36.620 --> 00:12:38.170 align:start position:0% thing and so what you're doing is you're lending<00:12:37.220> your<00:12:37.310> money<00:12:37.370> to<00:12:37.640> the<00:12:37.730> bank<00:12:37.940> for<00:12:38.150> a 00:12:38.170 --> 00:12:38.180 align:start position:0% lending your money to the bank for a 00:12:38.180 --> 00:12:41.320 align:start position:0% lending your money to the bank for a year<00:12:38.570> okay<00:12:39.110> it's<00:12:39.500> and<00:12:40.130> if<00:12:40.280> you<00:12:40.490> lend<00:12:40.940> you<00:12:41.180> give 00:12:41.320 --> 00:12:41.330 align:start position:0% year okay it's and if you lend you give 00:12:41.330 --> 00:12:42.400 align:start position:0% year okay it's and if you lend you give them<00:12:41.480> a<00:12:41.510> thousand<00:12:41.900> dollars 00:12:42.400 --> 00:12:42.410 align:start position:0% them a thousand dollars 00:12:42.410 --> 00:12:44.260 align:start position:0% them a thousand dollars they're<00:12:42.980> giving<00:12:43.250> you<00:12:43.340> a<00:12:43.370> claim<00:12:43.760> on<00:12:43.970> the<00:12:44.090> money 00:12:44.260 --> 00:12:44.270 align:start position:0% they're giving you a claim on the money 00:12:44.270 --> 00:12:46.060 align:start position:0% they're giving you a claim on the money that's<00:12:44.570> not<00:12:44.750> money<00:12:45.020> that<00:12:45.200> you<00:12:45.320> hold<00:12:45.530> right<00:12:45.950> the 00:12:46.060 --> 00:12:46.070 align:start position:0% that's not money that you hold right the 00:12:46.070 --> 00:12:47.650 align:start position:0% that's not money that you hold right the CD<00:12:46.280> is<00:12:46.490> not<00:12:46.670> money<00:12:46.970> it's<00:12:47.150> not<00:12:47.240> part<00:12:47.540> of<00:12:47.600> the 00:12:47.650 --> 00:12:47.660 align:start position:0% CD is not money it's not part of the 00:12:47.660 --> 00:12:51.880 align:start position:0% CD is not money it's not part of the money<00:12:47.840> supply<00:12:48.020> and<00:12:49.180> if<00:12:50.180> you<00:12:50.480> oh<00:12:50.900> shoot<00:12:51.560> I<00:12:51.740> need 00:12:51.880 --> 00:12:51.890 align:start position:0% money supply and if you oh shoot I need 00:12:51.890 --> 00:12:53.890 align:start position:0% money supply and if you oh shoot I need money<00:12:52.130> you<00:12:52.340> know<00:12:52.460> two<00:12:52.520> weeks<00:12:52.700> from<00:12:53.030> now<00:12:53.090> the 00:12:53.890 --> 00:12:53.900 align:start position:0% money you know two weeks from now the 00:12:53.900 --> 00:12:55.600 align:start position:0% money you know two weeks from now the bank<00:12:54.170> doesn't<00:12:54.500> owe<00:12:54.590> it<00:12:54.770> to<00:12:54.800> you<00:12:55.040> you<00:12:55.340> can't 00:12:55.600 --> 00:12:55.610 align:start position:0% bank doesn't owe it to you you can't 00:12:55.610 --> 00:12:56.860 align:start position:0% bank doesn't owe it to you you can't just<00:12:55.760> show<00:12:55.970> up<00:12:56.000> and<00:12:56.150> say<00:12:56.300> hey<00:12:56.450> you<00:12:56.510> know<00:12:56.690> what 00:12:56.860 --> 00:12:56.870 align:start position:0% just show up and say hey you know what 00:12:56.870 --> 00:12:58.740 align:start position:0% just show up and say hey you know what that<00:12:57.350> thousand<00:12:57.770> dollars<00:12:57.980> has<00:12:58.070> been<00:12:58.130> rollover 00:12:58.740 --> 00:12:58.750 align:start position:0% that thousand dollars has been rollover 00:12:58.750 --> 00:12:59.880 align:start position:0% that thousand dollars has been rollover for<00:12:58.870> two<00:12:58.990> weeks<00:12:59.020> can<00:12:59.320> you<00:12:59.380> give<00:12:59.500> me<00:12:59.590> that<00:12:59.680> plus 00:12:59.880 --> 00:12:59.890 align:start position:0% for two weeks can you give me that plus 00:12:59.890 --> 00:13:01.890 align:start position:0% for two weeks can you give me that plus a<00:12:59.920> little<00:13:00.130> bit<00:13:00.220> of<00:13:00.370> the<00:13:00.460> interest<00:13:00.850> that's<00:13:01.690> not 00:13:01.890 --> 00:13:01.900 align:start position:0% a little bit of the interest that's not 00:13:01.900 --> 00:13:03.360 align:start position:0% a little bit of the interest that's not what<00:13:02.110> you're<00:13:02.230> entitled<00:13:02.470> to<00:13:02.680> it<00:13:02.830> says<00:13:02.980> no<00:13:03.130> on 00:13:03.360 --> 00:13:03.370 align:start position:0% what you're entitled to it says no on 00:13:03.370 --> 00:13:05.280 align:start position:0% what you're entitled to it says no on this<00:13:03.730> date<00:13:04.000> you<00:13:04.210> know<00:13:04.330> that's<00:13:04.510> 12<00:13:04.780> months<00:13:05.200> in 00:13:05.280 --> 00:13:05.290 align:start position:0% this date you know that's 12 months in 00:13:05.290 --> 00:13:07.500 align:start position:0% this date you know that's 12 months in the<00:13:05.320> future<00:13:05.500> you<00:13:06.430> get<00:13:06.550> a<00:13:06.580> thousand<00:13:07.030> 50<00:13:07.270> so<00:13:07.390> what 00:13:07.500 --> 00:13:07.510 align:start position:0% the future you get a thousand 50 so what 00:13:07.510 --> 00:13:09.330 align:start position:0% the future you get a thousand 50 so what you<00:13:07.630> can<00:13:07.810> do<00:13:07.990> is<00:13:08.170> sell<00:13:08.470> that<00:13:08.650> thing<00:13:08.950> in<00:13:09.220> the 00:13:09.330 --> 00:13:09.340 align:start position:0% you can do is sell that thing in the 00:13:09.340 --> 00:13:11.310 align:start position:0% you can do is sell that thing in the secondary<00:13:09.790> market<00:13:10.000> if<00:13:10.330> you<00:13:10.420> want<00:13:10.660> and 00:13:11.310 --> 00:13:11.320 align:start position:0% secondary market if you want and 00:13:11.320 --> 00:13:14.130 align:start position:0% secondary market if you want and somebody<00:13:11.710> else<00:13:11.920> might<00:13:12.220> give<00:13:12.460> you<00:13:12.670> a<00:13:13.140> little 00:13:14.130 --> 00:13:14.140 align:start position:0% somebody else might give you a little 00:13:14.140 --> 00:13:16.080 align:start position:0% somebody else might give you a little bit<00:13:14.320> more<00:13:14.500> than<00:13:14.710> $1,000<00:13:15.490> for<00:13:15.670> it<00:13:15.760> because<00:13:15.880> they 00:13:16.080 --> 00:13:16.090 align:start position:0% bit more than $1,000 for it because they 00:13:16.090 --> 00:13:17.310 align:start position:0% bit more than $1,000 for it because they know<00:13:16.300> if<00:13:16.420> they<00:13:16.510> hold<00:13:16.720> on<00:13:16.840> to<00:13:16.870> that<00:13:17.110> thing 00:13:17.310 --> 00:13:17.320 align:start position:0% know if they hold on to that thing 00:13:17.320 --> 00:13:20.010 align:start position:0% know if they hold on to that thing they're<00:13:17.470> 8050<00:13:18.460> you<00:13:18.910> know<00:13:19.030> in<00:13:19.210> 11<00:13:19.630> months<00:13:19.900> and 00:13:20.010 --> 00:13:20.020 align:start position:0% they're 8050 you know in 11 months and 00:13:20.020 --> 00:13:22.260 align:start position:0% they're 8050 you know in 11 months and change<00:13:20.190> so<00:13:21.190> but<00:13:21.400> you're<00:13:21.700> not<00:13:21.820> it's<00:13:22.090> not 00:13:22.260 --> 00:13:22.270 align:start position:0% change so but you're not it's not 00:13:22.270 --> 00:13:24.030 align:start position:0% change so but you're not it's not contractually<00:13:22.840> guaranteed<00:13:23.110> to<00:13:23.710> you<00:13:23.800> and<00:13:23.950> if 00:13:24.030 --> 00:13:24.040 align:start position:0% contractually guaranteed to you and if 00:13:24.040 --> 00:13:25.830 align:start position:0% contractually guaranteed to you and if interest<00:13:24.190> rates<00:13:24.460> shift<00:13:25.360> in<00:13:25.570> the<00:13:25.660> meantime 00:13:25.830 --> 00:13:25.840 align:start position:0% interest rates shift in the meantime 00:13:25.840 --> 00:13:27.450 align:start position:0% interest rates shift in the meantime from<00:13:26.230> when<00:13:26.320> you<00:13:26.410> gave<00:13:26.590> that<00:13:26.620> thousand<00:13:27.130> dollars 00:13:27.450 --> 00:13:27.460 align:start position:0% from when you gave that thousand dollars 00:13:27.460 --> 00:13:29.490 align:start position:0% from when you gave that thousand dollars the<00:13:28.300> amount<00:13:28.570> you<00:13:28.690> get<00:13:28.870> for<00:13:29.020> that<00:13:29.080> then<00:13:29.290> like<00:13:29.350> if 00:13:29.490 --> 00:13:29.500 align:start position:0% the amount you get for that then like if 00:13:29.500 --> 00:13:31.560 align:start position:0% the amount you get for that then like if interest<00:13:29.920> rates<00:13:30.010> go<00:13:30.220> way<00:13:30.820> up<00:13:30.850> in<00:13:31.270> the<00:13:31.360> meantime 00:13:31.560 --> 00:13:31.570 align:start position:0% interest rates go way up in the meantime 00:13:31.570 --> 00:13:33.660 align:start position:0% interest rates go way up in the meantime then<00:13:32.380> maybe<00:13:32.590> you<00:13:32.770> can<00:13:32.920> sell<00:13:33.190> it<00:13:33.340> and<00:13:33.400> only<00:13:33.550> get 00:13:33.660 --> 00:13:33.670 align:start position:0% then maybe you can sell it and only get 00:13:33.670 --> 00:13:36.600 align:start position:0% then maybe you can sell it and only get $700<00:13:34.330> back<00:13:34.570> okay<00:13:35.050> so<00:13:35.110> that's<00:13:35.350> that's<00:13:36.070> the<00:13:36.310> way 00:13:36.600 --> 00:13:36.610 align:start position:0% $700 back okay so that's that's the way 00:13:36.610 --> 00:13:38.420 align:start position:0% $700 back okay so that's that's the way these<00:13:36.730> things<00:13:36.790> work<00:13:37.210> all<00:13:37.420> right<00:13:37.450> so<00:13:37.690> that's 00:13:38.420 --> 00:13:38.430 align:start position:0% these things work all right so that's 00:13:38.430 --> 00:13:42.000 align:start position:0% these things work all right so that's but<00:13:39.430> either<00:13:39.940> way<00:13:40.180> notice<00:13:40.570> that's<00:13:41.500> a<00:13:41.680> totally 00:13:42.000 --> 00:13:42.010 align:start position:0% but either way notice that's a totally 00:13:42.010 --> 00:13:45.900 align:start position:0% but either way notice that's a totally distinct<00:13:42.520> function<00:13:43.090> and<00:13:43.270> so<00:13:44.110> the<00:13:45.040> last<00:13:45.400> little 00:13:45.900 --> 00:13:45.910 align:start position:0% distinct function and so the last little 00:13:45.910 --> 00:13:47.630 align:start position:0% distinct function and so the last little clue<00:13:46.780> here<00:13:46.990> just<00:13:47.140> in<00:13:47.230> case<00:13:47.260> you're<00:13:47.530> confused 00:13:47.630 --> 00:13:47.640 align:start position:0% clue here just in case you're confused 00:13:47.640 --> 00:13:51.360 align:start position:0% clue here just in case you're confused under<00:13:48.640> 100%<00:13:49.240> reserves<00:13:50.070> there<00:13:51.070> would<00:13:51.190> have<00:13:51.310> to 00:13:51.360 --> 00:13:51.370 align:start position:0% under 100% reserves there would have to 00:13:51.370 --> 00:13:53.490 align:start position:0% under 100% reserves there would have to be<00:13:51.550> some<00:13:51.940> way<00:13:52.120> that<00:13:52.330> banks<00:13:52.570> would<00:13:52.930> be<00:13:52.990> paid<00:13:53.470> for 00:13:53.490 --> 00:13:53.500 align:start position:0% be some way that banks would be paid for 00:13:53.500 --> 00:13:56.280 align:start position:0% be some way that banks would be paid for providing<00:13:54.340> the<00:13:54.460> services<00:13:55.030> of<00:13:55.420> offering 00:13:56.280 --> 00:13:56.290 align:start position:0% providing the services of offering 00:13:56.290 --> 00:13:58.080 align:start position:0% providing the services of offering demand<00:13:56.620> deposits<00:13:57.130> okay 00:13:58.080 --> 00:13:58.090 align:start position:0% demand deposits okay 00:13:58.090 --> 00:13:59.820 align:start position:0% demand deposits okay so<00:13:58.270> so<00:13:58.720> yes<00:13:58.960> they<00:13:59.140> have<00:13:59.290> to<00:13:59.410> make<00:13:59.560> that<00:13:59.680> money 00:13:59.820 --> 00:13:59.830 align:start position:0% so so yes they have to make that money 00:13:59.830 --> 00:14:02.460 align:start position:0% so so yes they have to make that money somehow<00:14:00.160> and<00:14:00.790> in<00:14:01.660> practice<00:14:02.200> if<00:14:02.320> they're 00:14:02.460 --> 00:14:02.470 align:start position:0% somehow and in practice if they're 00:14:02.470 --> 00:14:04.650 align:start position:0% somehow and in practice if they're allowed<00:14:02.710> to<00:14:02.980> engage<00:14:03.550> in<00:14:03.730> fractional<00:14:04.330> reserve 00:14:04.650 --> 00:14:04.660 align:start position:0% allowed to engage in fractional reserve 00:14:04.660 --> 00:14:07.620 align:start position:0% allowed to engage in fractional reserve banking<00:14:04.920> then<00:14:05.920> yeah<00:14:06.160> they<00:14:06.400> they<00:14:07.089> just<00:14:07.360> they 00:14:07.620 --> 00:14:07.630 align:start position:0% banking then yeah they they just they 00:14:07.630 --> 00:14:09.990 align:start position:0% banking then yeah they they just they eat<00:14:08.140> those<00:14:08.380> costs<00:14:08.740> because<00:14:09.580> they're<00:14:09.790> lending 00:14:09.990 --> 00:14:10.000 align:start position:0% eat those costs because they're lending 00:14:10.000 --> 00:14:11.579 align:start position:0% eat those costs because they're lending the<00:14:10.210> money<00:14:10.390> out<00:14:10.540> into<00:14:10.690> earning<00:14:10.960> interest<00:14:11.320> from 00:14:11.579 --> 00:14:11.589 align:start position:0% the money out into earning interest from 00:14:11.589 --> 00:14:13.500 align:start position:0% the money out into earning interest from other<00:14:11.800> borrowers<00:14:12.130> and<00:14:12.670> so<00:14:13.360> they're 00:14:13.500 --> 00:14:13.510 align:start position:0% other borrowers and so they're 00:14:13.510 --> 00:14:15.570 align:start position:0% other borrowers and so they're implicitly<00:14:14.020> paying<00:14:14.530> for<00:14:14.800> it<00:14:14.950> that<00:14:15.220> way<00:14:15.430> and 00:14:15.570 --> 00:14:15.580 align:start position:0% implicitly paying for it that way and 00:14:15.580 --> 00:14:16.800 align:start position:0% implicitly paying for it that way and then<00:14:15.730> they're<00:14:15.820> giving<00:14:16.089> you<00:14:16.210> less<00:14:16.450> you<00:14:16.720> know 00:14:16.800 --> 00:14:16.810 align:start position:0% then they're giving you less you know 00:14:16.810 --> 00:14:18.600 align:start position:0% then they're giving you less you know that<00:14:16.960> they<00:14:17.050> have<00:14:17.200> a<00:14:17.230> spread<00:14:17.589> so<00:14:18.310> that's<00:14:18.490> the 00:14:18.600 --> 00:14:18.610 align:start position:0% that they have a spread so that's the 00:14:18.610 --> 00:14:20.460 align:start position:0% that they have a spread so that's the way<00:14:18.730> a<00:14:18.760> fractional<00:14:19.270> reserve<00:14:19.510> bank<00:14:19.990> does<00:14:20.260> it 00:14:20.460 --> 00:14:20.470 align:start position:0% way a fractional reserve bank does it 00:14:20.470 --> 00:14:22.230 align:start position:0% way a fractional reserve bank does it but<00:14:21.040> if<00:14:21.130> a<00:14:21.220> bank<00:14:21.430> were<00:14:21.580> being<00:14:21.820> run<00:14:22.030> according 00:14:22.230 --> 00:14:22.240 align:start position:0% but if a bank were being run according 00:14:22.240 --> 00:14:24.420 align:start position:0% but if a bank were being run according to<00:14:22.390> a<00:14:22.450> hundred<00:14:22.660> percent<00:14:22.750> reserves<00:14:23.310> they<00:14:24.310> would 00:14:24.420 --> 00:14:24.430 align:start position:0% to a hundred percent reserves they would 00:14:24.430 --> 00:14:25.890 align:start position:0% to a hundred percent reserves they would have<00:14:24.580> those<00:14:24.730> two<00:14:24.940> distinct<00:14:25.330> functions<00:14:25.480> so 00:14:25.890 --> 00:14:25.900 align:start position:0% have those two distinct functions so 00:14:25.900 --> 00:14:28.620 align:start position:0% have those two distinct functions so there<00:14:26.050> would<00:14:26.170> still<00:14:26.290> be<00:14:26.410> savers<00:14:27.210> using<00:14:28.210> banks 00:14:28.620 --> 00:14:28.630 align:start position:0% there would still be savers using banks 00:14:28.630 --> 00:14:31.020 align:start position:0% there would still be savers using banks and<00:14:28.810> banks<00:14:29.589> would<00:14:29.740> still<00:14:30.040> you<00:14:30.580> know<00:14:30.670> perform 00:14:31.020 --> 00:14:31.030 align:start position:0% and banks would still you know perform 00:14:31.030 --> 00:14:33.570 align:start position:0% and banks would still you know perform their<00:14:31.270> role<00:14:31.390> as<00:14:31.540> credit<00:14:31.870> intermediaries<00:14:32.620> just 00:14:33.570 --> 00:14:33.580 align:start position:0% their role as credit intermediaries just 00:14:33.580 --> 00:14:34.920 align:start position:0% their role as credit intermediaries just think<00:14:34.030> through<00:14:34.180> for<00:14:34.210> a<00:14:34.360> second<00:14:34.630> why<00:14:34.720> that's 00:14:34.920 --> 00:14:34.930 align:start position:0% think through for a second why that's 00:14:34.930 --> 00:14:36.600 align:start position:0% think through for a second why that's important<00:14:35.440> just<00:14:35.500> make<00:14:35.800> sure<00:14:35.920> I'm<00:14:36.250> not<00:14:36.430> losing 00:14:36.600 --> 00:14:36.610 align:start position:0% important just make sure I'm not losing 00:14:36.610 --> 00:14:39.270 align:start position:0% important just make sure I'm not losing anybody<00:14:36.910> so<00:14:37.839> something<00:14:38.500> like<00:14:38.530> buying<00:14:38.890> a<00:14:39.070> house 00:14:39.270 --> 00:14:39.280 align:start position:0% anybody so something like buying a house 00:14:39.280 --> 00:14:43.470 align:start position:0% anybody so something like buying a house if<00:14:40.170> you<00:14:41.170> wanted<00:14:41.860> to<00:14:42.089> you<00:14:43.089> know<00:14:43.180> there's<00:14:43.360> a 00:14:43.470 --> 00:14:43.480 align:start position:0% if you wanted to you know there's a 00:14:43.480 --> 00:14:45.390 align:start position:0% if you wanted to you know there's a young<00:14:43.810> couple<00:14:43.839> they<00:14:44.290> both<00:14:44.440> have<00:14:44.650> jobs<00:14:44.920> and<00:14:45.280> so 00:14:45.390 --> 00:14:45.400 align:start position:0% young couple they both have jobs and so 00:14:45.400 --> 00:14:46.980 align:start position:0% young couple they both have jobs and so it<00:14:45.550> maybe<00:14:45.940> makes<00:14:46.300> sense<00:14:46.570> for<00:14:46.750> them<00:14:46.839> to<00:14:46.870> go 00:14:46.980 --> 00:14:46.990 align:start position:0% it maybe makes sense for them to go 00:14:46.990 --> 00:14:48.630 align:start position:0% it maybe makes sense for them to go ahead<00:14:47.110> and<00:14:47.320> get<00:14:47.410> into<00:14:47.589> a<00:14:47.620> house<00:14:47.890> before<00:14:48.490> they 00:14:48.630 --> 00:14:48.640 align:start position:0% ahead and get into a house before they 00:14:48.640 --> 00:14:51.150 align:start position:0% ahead and get into a house before they can<00:14:48.790> pay<00:14:48.940> for<00:14:48.970> it<00:14:49.270> themselves<00:14:49.480> and<00:14:50.110> so<00:14:50.980> what 00:14:51.150 --> 00:14:51.160 align:start position:0% can pay for it themselves and so what 00:14:51.160 --> 00:14:52.800 align:start position:0% can pay for it themselves and so what happens<00:14:51.520> they<00:14:51.850> go<00:14:52.000> to<00:14:52.060> a<00:14:52.120> bank<00:14:52.420> they<00:14:52.630> get<00:14:52.780> a 00:14:52.800 --> 00:14:52.810 align:start position:0% happens they go to a bank they get a 00:14:52.810 --> 00:14:54.240 align:start position:0% happens they go to a bank they get a 30-year<00:14:53.260> mortgage<00:14:53.290> or<00:14:53.740> whatever<00:14:53.950> or<00:14:54.100> maybe 00:14:54.240 --> 00:14:54.250 align:start position:0% 30-year mortgage or whatever or maybe 00:14:54.250 --> 00:14:55.680 align:start position:0% 30-year mortgage or whatever or maybe you<00:14:54.400> know<00:14:54.520> in<00:14:54.910> a<00:14:55.030> free<00:14:55.210> society<00:14:55.360> without 00:14:55.680 --> 00:14:55.690 align:start position:0% you know in a free society without 00:14:55.690 --> 00:14:57.660 align:start position:0% you know in a free society without government<00:14:56.140> intervention<00:14:56.530> maybe<00:14:56.980> ten-year 00:14:57.660 --> 00:14:57.670 align:start position:0% government intervention maybe ten-year 00:14:57.670 --> 00:14:59.220 align:start position:0% government intervention maybe ten-year mortgages<00:14:58.089> would<00:14:58.210> be<00:14:58.330> the<00:14:58.450> norm<00:14:58.660> I<00:14:58.810> think<00:14:59.170> it 00:14:59.220 --> 00:14:59.230 align:start position:0% mortgages would be the norm I think it 00:14:59.230 --> 00:15:01.079 align:start position:0% mortgages would be the norm I think it would<00:14:59.320> be<00:14:59.410> lower<00:14:59.589> than<00:14:59.770> 30<00:15:00.160> but<00:15:00.760> let's<00:15:00.940> say 00:15:01.079 --> 00:15:01.089 align:start position:0% would be lower than 30 but let's say 00:15:01.089 --> 00:15:03.990 align:start position:0% would be lower than 30 but let's say that's<00:15:01.210> the<00:15:01.360> case<00:15:01.630> so<00:15:01.900> the<00:15:02.710> way<00:15:03.370> that<00:15:03.400> works<00:15:03.730> in 00:15:03.990 --> 00:15:04.000 align:start position:0% that's the case so the way that works in 00:15:04.000 --> 00:15:06.780 align:start position:0% that's the case so the way that works in practice<00:15:04.450> is<00:15:04.720> lots<00:15:05.680> of<00:15:05.890> people<00:15:06.370> around<00:15:06.490> the 00:15:06.780 --> 00:15:06.790 align:start position:0% practice is lots of people around the 00:15:06.790 --> 00:15:09.240 align:start position:0% practice is lots of people around the community<00:15:06.990> save<00:15:07.990> little<00:15:08.380> a<00:15:08.440> little<00:15:08.740> bit<00:15:08.920> and 00:15:09.240 --> 00:15:09.250 align:start position:0% community save little a little bit and 00:15:09.250 --> 00:15:10.860 align:start position:0% community save little a little bit and give<00:15:09.820> it<00:15:09.940> to<00:15:09.970> the<00:15:10.150> bank<00:15:10.390> and<00:15:10.600> then<00:15:10.720> the<00:15:10.780> bank 00:15:10.860 --> 00:15:10.870 align:start position:0% give it to the bank and then the bank 00:15:10.870 --> 00:15:12.450 align:start position:0% give it to the bank and then the bank has<00:15:11.320> lots<00:15:12.010> and<00:15:12.190> lots 00:15:12.450 --> 00:15:12.460 align:start position:0% has lots and lots 00:15:12.460 --> 00:15:14.430 align:start position:0% has lots and lots people<00:15:12.700> doing<00:15:12.880> that<00:15:13.090> and<00:15:13.300> gives<00:15:13.480> interest<00:15:14.290> to 00:15:14.430 --> 00:15:14.440 align:start position:0% people doing that and gives interest to 00:15:14.440 --> 00:15:17.190 align:start position:0% people doing that and gives interest to those<00:15:14.560> savers<00:15:15.130> and<00:15:15.310> then<00:15:16.060> the<00:15:16.210> banks<00:15:16.600> staff 00:15:17.190 --> 00:15:17.200 align:start position:0% those savers and then the banks staff 00:15:17.200 --> 00:15:19.350 align:start position:0% those savers and then the banks staff identify<00:15:18.070> the<00:15:18.130> creditworthiness<00:15:18.670> of<00:15:19.270> the 00:15:19.350 --> 00:15:19.360 align:start position:0% identify the creditworthiness of the 00:15:19.360 --> 00:15:22.500 align:start position:0% identify the creditworthiness of the various<00:15:19.750> loan<00:15:20.290> applicants<00:15:20.950> and<00:15:21.070> so<00:15:21.910> if<00:15:22.210> you 00:15:22.500 --> 00:15:22.510 align:start position:0% various loan applicants and so if you 00:15:22.510 --> 00:15:24.180 align:start position:0% various loan applicants and so if you didn't<00:15:22.780> have<00:15:22.900> the<00:15:23.050> bank<00:15:23.260> doing<00:15:23.500> that<00:15:23.800> it<00:15:24.070> would 00:15:24.180 --> 00:15:24.190 align:start position:0% didn't have the bank doing that it would 00:15:24.190 --> 00:15:25.830 align:start position:0% didn't have the bank doing that it would be<00:15:24.310> really<00:15:24.460> difficult<00:15:24.970> for<00:15:25.060> a<00:15:25.270> young<00:15:25.630> couple 00:15:25.830 --> 00:15:25.840 align:start position:0% be really difficult for a young couple 00:15:25.840 --> 00:15:27.510 align:start position:0% be really difficult for a young couple to<00:15:26.050> take<00:15:26.200> out<00:15:26.320> a<00:15:26.350> mortgage<00:15:26.590> right<00:15:27.400> you 00:15:27.510 --> 00:15:27.520 align:start position:0% to take out a mortgage right you 00:15:27.520 --> 00:15:29.370 align:start position:0% to take out a mortgage right you wouldn't<00:15:27.700> be<00:15:27.850> able<00:15:27.910> to<00:15:28.030> go<00:15:28.180> to<00:15:28.240> knock<00:15:29.170> on<00:15:29.350> a 00:15:29.370 --> 00:15:29.380 align:start position:0% wouldn't be able to go to knock on a 00:15:29.380 --> 00:15:30.960 align:start position:0% wouldn't be able to go to knock on a thousand<00:15:29.860> doors<00:15:30.040> of<00:15:30.310> people<00:15:30.790> in<00:15:30.880> your 00:15:30.960 --> 00:15:30.970 align:start position:0% thousand doors of people in your 00:15:30.970 --> 00:15:32.880 align:start position:0% thousand doors of people in your neighborhood<00:15:31.120> and<00:15:32.080> say<00:15:32.290> hey<00:15:32.410> can<00:15:32.620> you<00:15:32.740> each 00:15:32.880 --> 00:15:32.890 align:start position:0% neighborhood and say hey can you each 00:15:32.890 --> 00:15:35.430 align:start position:0% neighborhood and say hey can you each lend<00:15:33.250> us<00:15:33.400> a<00:15:33.780> thousand<00:15:34.780> dollars<00:15:35.080> or<00:15:35.200> whatever 00:15:35.430 --> 00:15:35.440 align:start position:0% lend us a thousand dollars or whatever 00:15:35.440 --> 00:15:36.750 align:start position:0% lend us a thousand dollars or whatever the<00:15:35.560> number<00:15:35.740> has<00:15:35.920> to<00:15:36.040> be<00:15:36.130> to<00:15:36.220> make<00:15:36.250> it<00:15:36.370> work<00:15:36.580> out 00:15:36.750 --> 00:15:36.760 align:start position:0% the number has to be to make it work out 00:15:36.760 --> 00:15:38.190 align:start position:0% the number has to be to make it work out right<00:15:36.970> and<00:15:37.180> we'll<00:15:37.600> pay<00:15:37.780> you<00:15:37.840> back<00:15:38.050> a<00:15:38.080> little 00:15:38.190 --> 00:15:38.200 align:start position:0% right and we'll pay you back a little 00:15:38.200 --> 00:15:39.030 align:start position:0% right and we'll pay you back a little bit<00:15:38.440> each<00:15:38.560> month 00:15:39.030 --> 00:15:39.040 align:start position:0% bit each month 00:15:39.040 --> 00:15:40.800 align:start position:0% bit each month right<00:15:39.280> because<00:15:39.550> then<00:15:39.730> that<00:15:40.660> particular 00:15:40.800 --> 00:15:40.810 align:start position:0% right because then that particular 00:15:40.810 --> 00:15:42.900 align:start position:0% right because then that particular couple<00:15:41.590> they<00:15:41.770> lose<00:15:41.950> their<00:15:42.130> jobs<00:15:42.400> or<00:15:42.550> they<00:15:42.670> skip 00:15:42.900 --> 00:15:42.910 align:start position:0% couple they lose their jobs or they skip 00:15:42.910 --> 00:15:44.880 align:start position:0% couple they lose their jobs or they skip town<00:15:43.090> or<00:15:43.300> whatever<00:15:43.540> you've<00:15:44.290> lost<00:15:44.500> all<00:15:44.740> your 00:15:44.880 --> 00:15:44.890 align:start position:0% town or whatever you've lost all your 00:15:44.890 --> 00:15:46.680 align:start position:0% town or whatever you've lost all your savings<00:15:45.190> if<00:15:45.520> you<00:15:45.850> were<00:15:45.970> the<00:15:46.060> one<00:15:46.090> lending<00:15:46.570> them 00:15:46.680 --> 00:15:46.690 align:start position:0% savings if you were the one lending them 00:15:46.690 --> 00:15:47.940 align:start position:0% savings if you were the one lending them all<00:15:46.870> your<00:15:47.050> money<00:15:47.230> so<00:15:47.410> that's<00:15:47.590> why<00:15:47.770> it<00:15:47.890> makes 00:15:47.940 --> 00:15:47.950 align:start position:0% all your money so that's why it makes 00:15:47.950 --> 00:15:50.940 align:start position:0% all your money so that's why it makes sense<00:15:48.220> all<00:15:49.030> the<00:15:49.570> savers<00:15:49.960> go<00:15:50.170> through<00:15:50.530> some<00:15:50.860> of 00:15:50.940 --> 00:15:50.950 align:start position:0% sense all the savers go through some of 00:15:50.950 --> 00:15:52.860 align:start position:0% sense all the savers go through some of these<00:15:51.010> central<00:15:51.730> institutions<00:15:52.450> that<00:15:52.660> then 00:15:52.860 --> 00:15:52.870 align:start position:0% these central institutions that then 00:15:52.870 --> 00:15:55.620 align:start position:0% these central institutions that then disperse<00:15:53.710> the<00:15:53.860> money<00:15:54.010> and<00:15:54.340> so<00:15:55.060> that's<00:15:55.510> how 00:15:55.620 --> 00:15:55.630 align:start position:0% disperse the money and so that's how 00:15:55.630 --> 00:15:57.990 align:start position:0% disperse the money and so that's how they<00:15:55.750> deal<00:15:56.200> with<00:15:56.230> risk<00:15:56.590> all<00:15:56.950> right<00:15:57.070> so<00:15:57.280> that<00:15:57.460> is 00:15:57.990 --> 00:15:58.000 align:start position:0% they deal with risk all right so that is 00:15:58.000 --> 00:16:00.720 align:start position:0% they deal with risk all right so that is totally<00:15:58.480> compatible<00:15:58.810> consistent<00:15:59.680> with<00:15:59.830> 100% 00:16:00.720 --> 00:16:00.730 align:start position:0% totally compatible consistent with 100% 00:16:00.730 --> 00:16:04.260 align:start position:0% totally compatible consistent with 100% reserve<00:16:01.120> banking<00:16:01.440> it's<00:16:02.440> just<00:16:02.770> the<00:16:02.950> people<00:16:03.310> for 00:16:04.260 --> 00:16:04.270 align:start position:0% reserve banking it's just the people for 00:16:04.270 --> 00:16:06.600 align:start position:0% reserve banking it's just the people for example<00:16:04.360> who<00:16:04.810> buy<00:16:05.050> a<00:16:05.080> CD<00:16:05.530> and<00:16:05.980> then<00:16:06.100> give<00:16:06.310> funds 00:16:06.600 --> 00:16:06.610 align:start position:0% example who buy a CD and then give funds 00:16:06.610 --> 00:16:08.070 align:start position:0% example who buy a CD and then give funds to<00:16:06.790> the<00:16:06.910> bank<00:16:07.120> that<00:16:07.240> then<00:16:07.450> it<00:16:07.570> lends<00:16:07.780> it<00:16:07.960> out 00:16:08.070 --> 00:16:08.080 align:start position:0% to the bank that then it lends it out 00:16:08.080 --> 00:16:10.470 align:start position:0% to the bank that then it lends it out they<00:16:08.770> would<00:16:08.980> know<00:16:09.190> they<00:16:09.670> can't<00:16:09.910> show<00:16:10.120> up<00:16:10.210> next 00:16:10.470 --> 00:16:10.480 align:start position:0% they would know they can't show up next 00:16:10.480 --> 00:16:11.850 align:start position:0% they would know they can't show up next Tuesday<00:16:10.780> and<00:16:10.900> get<00:16:11.080> access<00:16:11.410> to<00:16:11.440> their<00:16:11.680> money 00:16:11.850 --> 00:16:11.860 align:start position:0% Tuesday and get access to their money 00:16:11.860 --> 00:16:13.680 align:start position:0% Tuesday and get access to their money right<00:16:12.310> that's<00:16:12.490> that's<00:16:12.640> not<00:16:12.910> the<00:16:13.210> arrangement 00:16:13.680 --> 00:16:13.690 align:start position:0% right that's that's not the arrangement 00:16:13.690 --> 00:16:16.950 align:start position:0% right that's that's not the arrangement they<00:16:13.780> had<00:16:13.900> with<00:16:14.080> the<00:16:14.170> bank<00:16:15.150> if<00:16:16.150> the<00:16:16.630> bank<00:16:16.810> is 00:16:16.950 --> 00:16:16.960 align:start position:0% they had with the bank if the bank is 00:16:16.960 --> 00:16:18.510 align:start position:0% they had with the bank if the bank is doing<00:16:17.290> that<00:16:17.350> though<00:16:17.560> it<00:16:17.740> does<00:16:17.920> somehow<00:16:18.220> have 00:16:18.510 --> 00:16:18.520 align:start position:0% doing that though it does somehow have 00:16:18.520 --> 00:16:21.780 align:start position:0% doing that though it does somehow have to<00:16:18.870> come<00:16:19.870> up<00:16:19.900> with<00:16:20.400> compensation<00:16:21.400> it<00:16:21.520> has<00:16:21.610> to 00:16:21.780 --> 00:16:21.790 align:start position:0% to come up with compensation it has to 00:16:21.790 --> 00:16:25.410 align:start position:0% to come up with compensation it has to charge<00:16:22.090> for<00:16:22.510> the<00:16:23.440> cost<00:16:23.680> of<00:16:23.920> running<00:16:24.070> the<00:16:24.420> 100% 00:16:25.410 --> 00:16:25.420 align:start position:0% charge for the cost of running the 100% 00:16:25.420 --> 00:16:29.580 align:start position:0% charge for the cost of running the 100% reserve<00:16:25.510> system<00:16:27.480> okay<00:16:28.510> another<00:16:28.930> element<00:16:29.230> of 00:16:29.580 --> 00:16:29.590 align:start position:0% reserve system okay another element of 00:16:29.590 --> 00:16:32.550 align:start position:0% reserve system okay another element of this<00:16:29.740> debate<00:16:30.100> is<00:16:30.660> fraud<00:16:31.660> versus<00:16:32.080> economic 00:16:32.550 --> 00:16:32.560 align:start position:0% this debate is fraud versus economic 00:16:32.560 --> 00:16:35.400 align:start position:0% this debate is fraud versus economic consequences<00:16:33.220> so<00:16:33.460> rothbard<00:16:34.060> and<00:16:34.360> some<00:16:35.110> people 00:16:35.400 --> 00:16:35.410 align:start position:0% consequences so rothbard and some people 00:16:35.410 --> 00:16:39.060 align:start position:0% consequences so rothbard and some people in<00:16:35.740> that<00:16:36.310> tradition<00:16:37.080> example<00:16:38.080> DeSoto<00:16:38.590> hapa 00:16:39.060 --> 00:16:39.070 align:start position:0% in that tradition example DeSoto hapa 00:16:39.070 --> 00:16:42.750 align:start position:0% in that tradition example DeSoto hapa block<00:16:39.670> they<00:16:40.090> they<00:16:40.900> think<00:16:41.290> it's<00:16:42.010> important<00:16:42.610> in 00:16:42.750 --> 00:16:42.760 align:start position:0% block they they think it's important in 00:16:42.760 --> 00:16:44.670 align:start position:0% block they they think it's important in order<00:16:42.910> to<00:16:43.210> get<00:16:43.360> people<00:16:43.630> to<00:16:43.780> see<00:16:44.020> the<00:16:44.050> weirdness 00:16:44.670 --> 00:16:44.680 align:start position:0% order to get people to see the weirdness 00:16:44.680 --> 00:16:47.580 align:start position:0% order to get people to see the weirdness or<00:16:45.190> live<00:16:46.150> fractional<00:16:46.720> reserve<00:16:46.960> banking<00:16:47.170> just 00:16:47.580 --> 00:16:47.590 align:start position:0% or live fractional reserve banking just 00:16:47.590 --> 00:16:48.480 align:start position:0% or live fractional reserve banking just doesn't<00:16:47.830> make<00:16:47.890> any<00:16:47.950> sense 00:16:48.480 --> 00:16:48.490 align:start position:0% doesn't make any sense 00:16:48.490 --> 00:16:50.310 align:start position:0% doesn't make any sense they<00:16:49.030> want<00:16:49.240> to<00:16:49.330> show<00:16:49.570> that<00:16:49.780> it's<00:16:49.960> inherently 00:16:50.310 --> 00:16:50.320 align:start position:0% they want to show that it's inherently 00:16:50.320 --> 00:16:52.110 align:start position:0% they want to show that it's inherently fraudulent<00:16:51.070> they're<00:16:51.580> in<00:16:51.700> there<00:16:51.850> so<00:16:52.000> they 00:16:52.110 --> 00:16:52.120 align:start position:0% fraudulent they're in there so they 00:16:52.120 --> 00:16:55.500 align:start position:0% fraudulent they're in there so they argue<00:16:52.630> that<00:16:53.560> there's<00:16:53.890> a<00:16:53.950> sense<00:16:54.280> in<00:16:54.520> which<00:16:54.730> it's 00:16:55.500 --> 00:16:55.510 align:start position:0% argue that there's a sense in which it's 00:16:55.510 --> 00:16:58.050 align:start position:0% argue that there's a sense in which it's multiple<00:16:56.170> people<00:16:56.500> with<00:16:57.220> claims<00:16:57.580> on<00:16:57.760> the<00:16:57.850> same 00:16:58.050 --> 00:16:58.060 align:start position:0% multiple people with claims on the same 00:16:58.060 --> 00:17:00.150 align:start position:0% multiple people with claims on the same piece<00:16:58.270> of<00:16:58.450> property<00:16:58.840> right<00:16:59.110> so<00:16:59.500> you<00:16:59.560> you<00:16:59.950> put 00:17:00.150 --> 00:17:00.160 align:start position:0% piece of property right so you you put 00:17:00.160 --> 00:17:02.490 align:start position:0% piece of property right so you you put your<00:17:00.280> thousand<00:17:00.700> dollars<00:17:00.970> into<00:17:01.210> a<00:17:01.300> bank<00:17:01.600> into<00:17:02.470> a 00:17:02.490 --> 00:17:02.500 align:start position:0% your thousand dollars into a bank into a 00:17:02.500 --> 00:17:04.350 align:start position:0% your thousand dollars into a bank into a checking<00:17:02.770> account<00:17:02.980> and<00:17:03.400> you<00:17:03.970> think<00:17:04.240> it's 00:17:04.350 --> 00:17:04.360 align:start position:0% checking account and you think it's 00:17:04.360 --> 00:17:06.270 align:start position:0% checking account and you think it's yours<00:17:04.780> and<00:17:04.990> then<00:17:05.410> if<00:17:05.500> the<00:17:05.589> bank<00:17:05.830> goes<00:17:06.040> and 00:17:06.270 --> 00:17:06.280 align:start position:0% yours and then if the bank goes and 00:17:06.280 --> 00:17:07.980 align:start position:0% yours and then if the bank goes and lends<00:17:06.459> out<00:17:06.640> nine<00:17:06.910> hundred<00:17:07.270> of<00:17:07.390> it<00:17:07.510> to<00:17:07.780> somebody 00:17:07.980 --> 00:17:07.990 align:start position:0% lends out nine hundred of it to somebody 00:17:07.990 --> 00:17:10.980 align:start position:0% lends out nine hundred of it to somebody else<00:17:09.030> you're<00:17:10.030> still<00:17:10.270> walking<00:17:10.420> around<00:17:10.810> town 00:17:10.980 --> 00:17:10.990 align:start position:0% else you're still walking around town 00:17:10.990 --> 00:17:13.440 align:start position:0% else you're still walking around town thinking<00:17:11.530> you<00:17:11.770> have<00:17:11.980> $1,000<00:17:12.700> in<00:17:12.850> the<00:17:12.940> bank<00:17:12.970> and 00:17:13.440 --> 00:17:13.450 align:start position:0% thinking you have $1,000 in the bank and 00:17:13.450 --> 00:17:16.650 align:start position:0% thinking you have $1,000 in the bank and yet<00:17:13.600> somebody<00:17:13.839> else<00:17:14.110> now<00:17:14.380> thinks<00:17:15.330> he<00:17:16.330> or<00:17:16.480> she 00:17:16.650 --> 00:17:16.660 align:start position:0% yet somebody else now thinks he or she 00:17:16.660 --> 00:17:18.270 align:start position:0% yet somebody else now thinks he or she has<00:17:16.839> nine<00:17:17.050> hundred<00:17:17.320> dollars<00:17:17.530> in<00:17:17.620> the<00:17:17.680> bank<00:17:17.740> and 00:17:18.270 --> 00:17:18.280 align:start position:0% has nine hundred dollars in the bank and 00:17:18.280 --> 00:17:19.829 align:start position:0% has nine hundred dollars in the bank and there<00:17:18.640> you're<00:17:18.850> both<00:17:19.030> pointing<00:17:19.510> to<00:17:19.570> the<00:17:19.690> same 00:17:19.829 --> 00:17:19.839 align:start position:0% there you're both pointing to the same 00:17:19.839 --> 00:17:21.150 align:start position:0% there you're both pointing to the same thousand<00:17:20.350> dollars<00:17:20.589> that's<00:17:20.770> in<00:17:20.860> the<00:17:20.949> vault 00:17:21.150 --> 00:17:21.160 align:start position:0% thousand dollars that's in the vault 00:17:21.160 --> 00:17:23.160 align:start position:0% thousand dollars that's in the vault right<00:17:21.820> that's<00:17:22.030> the<00:17:22.209> idea<00:17:22.540> or<00:17:22.720> maybe<00:17:22.900> they<00:17:23.020> took 00:17:23.160 --> 00:17:23.170 align:start position:0% right that's the idea or maybe they took 00:17:23.170 --> 00:17:24.390 align:start position:0% right that's the idea or maybe they took the<00:17:23.320> nine<00:17:23.470> hundred<00:17:23.740> and<00:17:23.860> gave<00:17:24.010> it<00:17:24.100> to<00:17:24.190> somebody 00:17:24.390 --> 00:17:24.400 align:start position:0% the nine hundred and gave it to somebody 00:17:24.400 --> 00:17:25.949 align:start position:0% the nine hundred and gave it to somebody else<00:17:24.640> and<00:17:24.699> they're<00:17:24.820> looking<00:17:25.089> at<00:17:25.180> the<00:17:25.270> current 00:17:25.949 --> 00:17:25.959 align:start position:0% else and they're looking at the current 00:17:25.959 --> 00:17:27.720 align:start position:0% else and they're looking at the current see<00:17:26.049> the<00:17:26.169> green<00:17:26.350> pieces<00:17:26.529> of<00:17:26.679> paper<00:17:26.770> so<00:17:27.610> they 00:17:27.720 --> 00:17:27.730 align:start position:0% see the green pieces of paper so they 00:17:27.730 --> 00:17:29.310 align:start position:0% see the green pieces of paper so they think<00:17:27.970> yep<00:17:28.120> this<00:17:28.569> is<00:17:28.720> this<00:17:28.990> is<00:17:29.110> in<00:17:29.230> my 00:17:29.310 --> 00:17:29.320 align:start position:0% think yep this is this is in my 00:17:29.320 --> 00:17:31.159 align:start position:0% think yep this is this is in my possession<00:17:29.649> and<00:17:30.039> yet<00:17:30.640> you're<00:17:30.909> still 00:17:31.159 --> 00:17:31.169 align:start position:0% possession and yet you're still 00:17:31.169 --> 00:17:33.990 align:start position:0% possession and yet you're still conducting<00:17:32.169> your<00:17:32.289> operations<00:17:32.980> is<00:17:33.250> if<00:17:33.880> you 00:17:33.990 --> 00:17:34.000 align:start position:0% conducting your operations is if you 00:17:34.000 --> 00:17:35.549 align:start position:0% conducting your operations is if you have<00:17:34.179> the<00:17:34.299> full<00:17:34.480> thousand<00:17:34.990> dollars<00:17:35.289> at<00:17:35.440> your 00:17:35.549 --> 00:17:35.559 align:start position:0% have the full thousand dollars at your 00:17:35.559 --> 00:17:37.049 align:start position:0% have the full thousand dollars at your disposal<00:17:35.950> right<00:17:36.580> because<00:17:36.730> it's<00:17:36.850> it's 00:17:37.049 --> 00:17:37.059 align:start position:0% disposal right because it's it's 00:17:37.059 --> 00:17:39.029 align:start position:0% disposal right because it's it's available<00:17:37.270> to<00:17:37.570> you<00:17:37.600> upon<00:17:37.960> demand<00:17:38.320> all<00:17:38.919> right 00:17:39.029 --> 00:17:39.039 align:start position:0% available to you upon demand all right 00:17:39.039 --> 00:17:42.570 align:start position:0% available to you upon demand all right so<00:17:39.750> some<00:17:40.750> people<00:17:40.990> in<00:17:41.350> this<00:17:41.470> in<00:17:41.860> this<00:17:42.279> these 00:17:42.570 --> 00:17:42.580 align:start position:0% so some people in this in this these 00:17:42.580 --> 00:17:45.060 align:start position:0% so some people in this in this these debates<00:17:43.210> argue<00:17:43.899> that<00:17:44.080> that's<00:17:44.409> nonsensical 00:17:45.060 --> 00:17:45.070 align:start position:0% debates argue that that's nonsensical 00:17:45.070 --> 00:17:46.440 align:start position:0% debates argue that that's nonsensical there's<00:17:45.340> something<00:17:45.549> there's<00:17:45.669> fraud<00:17:45.940> going<00:17:46.210> on 00:17:46.440 --> 00:17:46.450 align:start position:0% there's something there's fraud going on 00:17:46.450 --> 00:17:48.389 align:start position:0% there's something there's fraud going on there<00:17:46.750> the<00:17:47.320> bank<00:17:47.559> is<00:17:47.740> simultaneously 00:17:48.389 --> 00:17:48.399 align:start position:0% there the bank is simultaneously 00:17:48.399 --> 00:17:50.340 align:start position:0% there the bank is simultaneously promising<00:17:49.059> to<00:17:49.179> two<00:17:49.330> people<00:17:49.539> you<00:17:49.750> can<00:17:49.929> show<00:17:50.169> up 00:17:50.340 --> 00:17:50.350 align:start position:0% promising to two people you can show up 00:17:50.350 --> 00:17:52.799 align:start position:0% promising to two people you can show up and<00:17:50.760> collect<00:17:51.760> this<00:17:51.909> money<00:17:52.149> if<00:17:52.299> you<00:17:52.419> want<00:17:52.630> we've 00:17:52.799 --> 00:17:52.809 align:start position:0% and collect this money if you want we've 00:17:52.809 --> 00:17:54.299 align:start position:0% and collect this money if you want we've got<00:17:52.840> it<00:17:53.169> for<00:17:53.350> you<00:17:53.500> when<00:17:53.740> they<00:17:54.010> know<00:17:54.159> in 00:17:54.299 --> 00:17:54.309 align:start position:0% got it for you when they know in 00:17:54.309 --> 00:17:56.100 align:start position:0% got it for you when they know in practice<00:17:54.520> they<00:17:54.880> can<00:17:55.120> if<00:17:55.360> there's<00:17:55.539> a<00:17:55.600> bank<00:17:55.840> run 00:17:56.100 --> 00:17:56.110 align:start position:0% practice they can if there's a bank run 00:17:56.110 --> 00:17:58.830 align:start position:0% practice they can if there's a bank run you<00:17:56.980> know<00:17:57.070> then<00:17:57.250> the<00:17:57.549> lie<00:17:57.760> is<00:17:57.820> exposed<00:17:58.270> in<00:17:58.750> the 00:17:58.830 --> 00:17:58.840 align:start position:0% you know then the lie is exposed in the 00:17:58.840 --> 00:18:00.659 align:start position:0% you know then the lie is exposed in the bank<00:17:59.049> is<00:17:59.409> caught<00:17:59.679> with<00:17:59.799> its<00:17:59.950> pants<00:18:00.250> down<00:18:00.370> right 00:18:00.659 --> 00:18:00.669 align:start position:0% bank is caught with its pants down right 00:18:00.669 --> 00:18:02.909 align:start position:0% bank is caught with its pants down right that's<00:18:00.850> so<00:18:01.510> some<00:18:01.720> people<00:18:01.960> stress<00:18:02.260> that<00:18:02.620> and 00:18:02.909 --> 00:18:02.919 align:start position:0% that's so some people stress that and 00:18:02.919 --> 00:18:07.139 align:start position:0% that's so some people stress that and there's<00:18:03.399> a<00:18:03.460> whole<00:18:04.679> legal<00:18:05.700> history<00:18:06.700> that<00:18:06.940> look 00:18:07.139 --> 00:18:07.149 align:start position:0% there's a whole legal history that look 00:18:07.149 --> 00:18:09.360 align:start position:0% there's a whole legal history that look to<00:18:07.270> Soto<00:18:07.539> gets<00:18:07.809> into<00:18:08.200> about<00:18:08.919> the<00:18:09.039> different 00:18:09.360 --> 00:18:09.370 align:start position:0% to Soto gets into about the different 00:18:09.370 --> 00:18:12.659 align:start position:0% to Soto gets into about the different the<00:18:09.909> difference<00:18:10.299> between<00:18:11.309> lending<00:18:12.309> something 00:18:12.659 --> 00:18:12.669 align:start position:0% the difference between lending something 00:18:12.669 --> 00:18:14.190 align:start position:0% the difference between lending something to<00:18:12.760> somebody<00:18:12.970> versus<00:18:13.450> giving<00:18:13.630> to<00:18:13.870> them<00:18:14.020> in<00:18:14.140> a 00:18:14.190 --> 00:18:14.200 align:start position:0% to somebody versus giving to them in a 00:18:14.200 --> 00:18:16.440 align:start position:0% to somebody versus giving to them in a caretaker<00:18:14.679> fashion<00:18:15.399> really<00:18:15.970> if<00:18:16.059> you<00:18:16.149> if<00:18:16.360> you 00:18:16.440 --> 00:18:16.450 align:start position:0% caretaker fashion really if you if you 00:18:16.450 --> 00:18:18.389 align:start position:0% caretaker fashion really if you if you check<00:18:16.750> a<00:18:16.779> coat<00:18:17.140> at<00:18:17.380> your<00:18:17.559> restaurant<00:18:18.100> you<00:18:18.309> know 00:18:18.389 --> 00:18:18.399 align:start position:0% check a coat at your restaurant you know 00:18:18.399 --> 00:18:19.590 align:start position:0% check a coat at your restaurant you know you<00:18:18.490> go<00:18:18.580> into<00:18:18.730> a<00:18:18.789> restaurant<00:18:19.210> there's<00:18:19.360> a<00:18:19.419> coat 00:18:19.590 --> 00:18:19.600 align:start position:0% you go into a restaurant there's a coat 00:18:19.600 --> 00:18:21.389 align:start position:0% you go into a restaurant there's a coat check<00:18:19.630> and<00:18:20.440> you<00:18:20.529> give<00:18:20.710> them<00:18:20.799> the<00:18:20.890> garment<00:18:21.279> and 00:18:21.389 --> 00:18:21.399 align:start position:0% check and you give them the garment and 00:18:21.399 --> 00:18:23.610 align:start position:0% check and you give them the garment and then<00:18:21.490> they<00:18:21.549> give<00:18:21.700> you<00:18:21.789> a<00:18:21.850> ticket<00:18:22.440> you<00:18:23.440> don't 00:18:23.610 --> 00:18:23.620 align:start position:0% then they give you a ticket you don't 00:18:23.620 --> 00:18:25.169 align:start position:0% then they give you a ticket you don't think<00:18:23.890> that<00:18:23.980> actually<00:18:24.220> what<00:18:24.669> they're<00:18:24.820> doing 00:18:25.169 --> 00:18:25.179 align:start position:0% think that actually what they're doing 00:18:25.179 --> 00:18:27.600 align:start position:0% think that actually what they're doing is<00:18:25.500> lending<00:18:26.500> the<00:18:26.649> coat<00:18:26.860> out<00:18:27.010> to<00:18:27.130> other<00:18:27.279> people 00:18:27.600 --> 00:18:27.610 align:start position:0% is lending the coat out to other people 00:18:27.610 --> 00:18:28.799 align:start position:0% is lending the coat out to other people who<00:18:27.730> need<00:18:27.940> it<00:18:27.970> and<00:18:28.210> they're<00:18:28.299> just<00:18:28.330> saying<00:18:28.630> oh 00:18:28.799 --> 00:18:28.809 align:start position:0% who need it and they're just saying oh 00:18:28.809 --> 00:18:30.510 align:start position:0% who need it and they're just saying oh well<00:18:29.020> get<00:18:29.200> will<00:18:29.470> have<00:18:29.649> a<00:18:29.679> garment<00:18:30.220> for<00:18:30.370> here 00:18:30.510 --> 00:18:30.520 align:start position:0% well get will have a garment for here 00:18:30.520 --> 00:18:33.000 align:start position:0% well get will have a garment for here when<00:18:30.640> you<00:18:30.700> come<00:18:30.850> trust<00:18:31.510> us<00:18:31.659> right<00:18:31.929> you<00:18:32.830> see<00:18:32.950> how 00:18:33.000 --> 00:18:33.010 align:start position:0% when you come trust us right you see how 00:18:33.010 --> 00:18:34.649 align:start position:0% when you come trust us right you see how that<00:18:33.159> works<00:18:33.340> and<00:18:33.490> if<00:18:33.730> you<00:18:33.880> saw<00:18:34.330> that<00:18:34.480> they<00:18:34.600> were 00:18:34.649 --> 00:18:34.659 align:start position:0% that works and if you saw that they were 00:18:34.659 --> 00:18:36.180 align:start position:0% that works and if you saw that they were doing<00:18:34.990> that<00:18:35.020> you<00:18:35.140> would<00:18:35.350> think<00:18:35.620> so<00:18:36.070> it 00:18:36.180 --> 00:18:36.190 align:start position:0% doing that you would think so it 00:18:36.190 --> 00:18:37.799 align:start position:0% doing that you would think so it wouldn't<00:18:36.429> merely<00:18:36.669> be<00:18:36.970> that<00:18:37.210> okay<00:18:37.330> I<00:18:37.510> better 00:18:37.799 --> 00:18:37.809 align:start position:0% wouldn't merely be that okay I better 00:18:37.809 --> 00:18:39.330 align:start position:0% wouldn't merely be that okay I better not<00:18:38.020> show<00:18:38.289> up<00:18:38.380> and<00:18:38.500> give<00:18:38.620> you<00:18:38.710> this<00:18:38.799> ticket<00:18:39.039> and 00:18:39.330 --> 00:18:39.340 align:start position:0% not show up and give you this ticket and 00:18:39.340 --> 00:18:41.909 align:start position:0% not show up and give you this ticket and you<00:18:40.149> don't<00:18:40.299> have<00:18:40.390> my<00:18:40.570> coat<00:18:40.809> it's<00:18:41.409> beyond<00:18:41.740> that 00:18:41.909 --> 00:18:41.919 align:start position:0% you don't have my coat it's beyond that 00:18:41.919 --> 00:18:43.230 align:start position:0% you don't have my coat it's beyond that if<00:18:42.039> you<00:18:42.130> found<00:18:42.370> out<00:18:42.610> that<00:18:42.669> they<00:18:42.940> were<00:18:43.000> lending 00:18:43.230 --> 00:18:43.240 align:start position:0% if you found out that they were lending 00:18:43.240 --> 00:18:44.700 align:start position:0% if you found out that they were lending the<00:18:43.450> coat<00:18:43.630> out<00:18:43.750> to<00:18:43.870> other<00:18:43.990> people<00:18:44.200> you<00:18:44.649> know 00:18:44.700 --> 00:18:44.710 align:start position:0% the coat out to other people you know 00:18:44.710 --> 00:18:46.230 align:start position:0% the coat out to other people you know you<00:18:44.830> see<00:18:44.950> what<00:18:45.070> are<00:18:45.130> you<00:18:45.190> doing<00:18:45.460> okay<00:18:45.909> so<00:18:45.940> that 00:18:46.230 --> 00:18:46.240 align:start position:0% you see what are you doing okay so that 00:18:46.240 --> 00:18:47.669 align:start position:0% you see what are you doing okay so that so<00:18:46.690> there's<00:18:46.870> there's<00:18:47.230> that<00:18:47.409> type<00:18:47.649> of 00:18:47.669 --> 00:18:47.679 align:start position:0% so there's there's that type of 00:18:47.679 --> 00:18:49.769 align:start position:0% so there's there's that type of arrangement<00:18:47.919> and<00:18:48.580> so<00:18:48.730> de<00:18:48.940> Soto<00:18:49.240> and<00:18:49.360> some 00:18:49.769 --> 00:18:49.779 align:start position:0% arrangement and so de Soto and some 00:18:49.779 --> 00:18:52.649 align:start position:0% arrangement and so de Soto and some others<00:18:49.990> in<00:18:50.169> this<00:18:50.429> tradition<00:18:51.480> argue<00:18:52.480> that 00:18:52.649 --> 00:18:52.659 align:start position:0% others in this tradition argue that 00:18:52.659 --> 00:18:54.930 align:start position:0% others in this tradition argue that historically<00:18:53.230> that's<00:18:54.220> how<00:18:54.460> it<00:18:54.640> should<00:18:54.850> have 00:18:54.930 --> 00:18:54.940 align:start position:0% historically that's how it should have 00:18:54.940 --> 00:18:56.159 align:start position:0% historically that's how it should have been<00:18:55.059> handled<00:18:55.270> and<00:18:55.720> then<00:18:55.809> it<00:18:55.899> was<00:18:56.020> government 00:18:56.159 --> 00:18:56.169 align:start position:0% been handled and then it was government 00:18:56.169 --> 00:18:58.380 align:start position:0% been handled and then it was government intervention<00:18:56.860> they<00:18:56.980> claimed<00:18:57.309> that<00:18:57.610> we're 00:18:58.380 --> 00:18:58.390 align:start position:0% intervention they claimed that we're 00:18:58.390 --> 00:18:59.639 align:start position:0% intervention they claimed that we're that<00:18:58.570> you<00:18:58.630> know<00:18:58.720> the<00:18:58.840> bankers<00:18:59.200> had<00:18:59.320> a<00:18:59.350> lot<00:18:59.559> of 00:18:59.639 --> 00:18:59.649 align:start position:0% that you know the bankers had a lot of 00:18:59.649 --> 00:19:01.380 align:start position:0% that you know the bankers had a lot of sway<00:18:59.980> in<00:19:00.130> the<00:19:00.220> legal<00:19:00.549> community<00:19:00.760> and<00:19:01.090> with<00:19:01.270> the 00:19:01.380 --> 00:19:01.390 align:start position:0% sway in the legal community and with the 00:19:01.390 --> 00:19:03.990 align:start position:0% sway in the legal community and with the with<00:19:01.750> the<00:19:01.899> government<00:19:02.679> and<00:19:03.070> that<00:19:03.520> that's<00:19:03.730> how 00:19:03.990 --> 00:19:04.000 align:start position:0% with the government and that that's how 00:19:04.000 --> 00:19:06.090 align:start position:0% with the government and that that's how they<00:19:04.210> got<00:19:04.360> the<00:19:04.779> rulings<00:19:05.200> to<00:19:05.350> be<00:19:05.470> such<00:19:05.710> that<00:19:05.740> it 00:19:06.090 --> 00:19:06.100 align:start position:0% they got the rulings to be such that it 00:19:06.100 --> 00:19:07.289 align:start position:0% they got the rulings to be such that it was<00:19:06.220> considered<00:19:06.669> oh<00:19:06.789> when<00:19:07.029> you<00:19:07.120> make<00:19:07.270> a 00:19:07.289 --> 00:19:07.299 align:start position:0% was considered oh when you make a 00:19:07.299 --> 00:19:09.389 align:start position:0% was considered oh when you make a deposit<00:19:07.630> with<00:19:07.870> a<00:19:07.990> bank<00:19:08.320> really<00:19:09.010> what<00:19:09.250> you're 00:19:09.389 --> 00:19:09.399 align:start position:0% deposit with a bank really what you're 00:19:09.399 --> 00:19:10.919 align:start position:0% deposit with a bank really what you're doing<00:19:09.429> is<00:19:09.760> lending<00:19:10.210> them<00:19:10.390> money<00:19:10.419> so<00:19:10.809> they 00:19:10.919 --> 00:19:10.929 align:start position:0% doing is lending them money so they 00:19:10.929 --> 00:19:12.930 align:start position:0% doing is lending them money so they still<00:19:11.260> owe<00:19:11.350> you<00:19:11.409> money<00:19:11.740> back<00:19:12.039> but<00:19:12.789> the 00:19:12.930 --> 00:19:12.940 align:start position:0% still owe you money back but the 00:19:12.940 --> 00:19:15.600 align:start position:0% still owe you money back but the property<00:19:13.720> switches<00:19:14.140> you<00:19:14.860> know<00:19:14.950> title<00:19:15.520> the 00:19:15.600 --> 00:19:15.610 align:start position:0% property switches you know title the 00:19:15.610 --> 00:19:18.149 align:start position:0% property switches you know title the title<00:19:15.640> switches<00:19:16.330> hands<00:19:16.899> that<00:19:17.620> that's<00:19:17.919> the<00:19:18.070> way 00:19:18.149 --> 00:19:18.159 align:start position:0% title switches hands that that's the way 00:19:18.159 --> 00:19:19.980 align:start position:0% title switches hands that that's the way the<00:19:18.190> legal<00:19:18.580> ruling<00:19:18.850> went<00:19:19.090> and<00:19:19.299> so<00:19:19.690> people<00:19:19.929> in 00:19:19.980 --> 00:19:19.990 align:start position:0% the legal ruling went and so people in 00:19:19.990 --> 00:19:21.210 align:start position:0% the legal ruling went and so people in this<00:19:20.110> tradition<00:19:20.380> argue<00:19:20.679> that<00:19:20.770> it<00:19:20.919> shouldn't 00:19:21.210 --> 00:19:21.220 align:start position:0% this tradition argue that it shouldn't 00:19:21.220 --> 00:19:22.500 align:start position:0% this tradition argue that it shouldn't have<00:19:21.309> gone<00:19:21.340> that<00:19:21.640> way<00:19:21.760> that<00:19:21.909> that<00:19:22.059> that<00:19:22.120> is 00:19:22.500 --> 00:19:22.510 align:start position:0% have gone that way that that that is 00:19:22.510 --> 00:19:27.990 align:start position:0% have gone that way that that that is nonsensical<00:19:23.279> okay<00:19:26.340> the<00:19:27.340> way<00:19:27.520> the<00:19:27.730> free 00:19:27.990 --> 00:19:28.000 align:start position:0% nonsensical okay the way the free 00:19:28.000 --> 00:19:30.529 align:start position:0% nonsensical okay the way the free bankers<00:19:28.450> then<00:19:28.630> counter<00:19:29.289> that<00:19:29.500> is<00:19:29.740> they'll<00:19:29.980> say 00:19:30.529 --> 00:19:30.539 align:start position:0% bankers then counter that is they'll say 00:19:30.539 --> 00:19:33.630 align:start position:0% bankers then counter that is they'll say they'll<00:19:31.539> argue<00:19:31.960> with<00:19:32.320> history<00:19:32.740> and<00:19:32.950> say<00:19:33.399> look 00:19:33.630 --> 00:19:33.640 align:start position:0% they'll argue with history and say look 00:19:33.640 --> 00:19:35.430 align:start position:0% they'll argue with history and say look if<00:19:33.730> this<00:19:33.850> was<00:19:34.000> a<00:19:34.029> voluntary<00:19:34.600> choice<00:19:34.899> everybody 00:19:35.430 --> 00:19:35.440 align:start position:0% if this was a voluntary choice everybody 00:19:35.440 --> 00:19:38.039 align:start position:0% if this was a voluntary choice everybody has<00:19:35.649> known<00:19:35.860> for<00:19:36.190> a<00:19:36.370> long<00:19:36.520> time<00:19:36.850> that<00:19:37.690> the<00:19:37.840> bank 00:19:38.039 --> 00:19:38.049 align:start position:0% has known for a long time that the bank 00:19:38.049 --> 00:19:39.050 align:start position:0% has known for a long time that the bank doesn't<00:19:38.289> you<00:19:38.679> know 00:19:39.050 --> 00:19:39.060 align:start position:0% doesn't you know 00:19:39.060 --> 00:19:41.150 align:start position:0% doesn't you know have<00:19:39.240> your<00:19:39.450> money<00:19:39.990> in<00:19:40.080> a<00:19:40.230> little<00:19:40.470> drawer<00:19:41.010> with 00:19:41.150 --> 00:19:41.160 align:start position:0% have your money in a little drawer with 00:19:41.160 --> 00:19:42.320 align:start position:0% have your money in a little drawer with your<00:19:41.310> name<00:19:41.460> on<00:19:41.670> it<00:19:41.820> everybody<00:19:42.150> knows 00:19:42.320 --> 00:19:42.330 align:start position:0% your name on it everybody knows 00:19:42.330 --> 00:19:44.270 align:start position:0% your name on it everybody knows fractions<00:19:42.780> every<00:19:43.020> baking<00:19:43.290> happens<00:19:43.680> otherwise 00:19:44.270 --> 00:19:44.280 align:start position:0% fractions every baking happens otherwise 00:19:44.280 --> 00:19:45.530 align:start position:0% fractions every baking happens otherwise how<00:19:44.580> could<00:19:44.760> they<00:19:44.820> pay<00:19:45.000> you<00:19:45.060> interest<00:19:45.300> on 00:19:45.530 --> 00:19:45.540 align:start position:0% how could they pay you interest on 00:19:45.540 --> 00:19:48.410 align:start position:0% how could they pay you interest on checking<00:19:45.930> accounts<00:19:45.990> so<00:19:46.920> it's<00:19:47.100> voluntary<00:19:47.670> you 00:19:48.410 --> 00:19:48.420 align:start position:0% checking accounts so it's voluntary you 00:19:48.420 --> 00:19:50.030 align:start position:0% checking accounts so it's voluntary you know<00:19:48.480> the<00:19:48.570> market<00:19:48.930> has<00:19:49.080> ruled<00:19:49.350> and<00:19:49.500> in<00:19:49.830> history 00:19:50.030 --> 00:19:50.040 align:start position:0% know the market has ruled and in history 00:19:50.040 --> 00:19:52.430 align:start position:0% know the market has ruled and in history we<00:19:50.430> don't<00:19:50.460> see<00:19:50.850> a<00:19:51.150> lot<00:19:51.930> of<00:19:51.960> hundred<00:19:52.230> percent 00:19:52.430 --> 00:19:52.440 align:start position:0% we don't see a lot of hundred percent 00:19:52.440 --> 00:19:54.320 align:start position:0% we don't see a lot of hundred percent reserve<00:19:52.650> banks<00:19:53.010> do<00:19:53.160> we<00:19:53.310> and<00:19:53.490> so<00:19:53.850> it<00:19:53.940> shows<00:19:54.150> that 00:19:54.320 --> 00:19:54.330 align:start position:0% reserve banks do we and so it shows that 00:19:54.330 --> 00:19:56.000 align:start position:0% reserve banks do we and so it shows that doesn't<00:19:54.570> pass<00:19:54.720> the<00:19:54.900> market<00:19:55.200> test<00:19:55.410> all<00:19:55.890> right 00:19:56.000 --> 00:19:56.010 align:start position:0% doesn't pass the market test all right 00:19:56.010 --> 00:19:57.410 align:start position:0% doesn't pass the market test all right so<00:19:56.100> I'm<00:19:56.220> just<00:19:56.370> here<00:19:56.520> summarizing<00:19:57.090> some<00:19:57.270> of<00:19:57.300> the 00:19:57.410 --> 00:19:57.420 align:start position:0% so I'm just here summarizing some of the 00:19:57.420 --> 00:20:00.200 align:start position:0% so I'm just here summarizing some of the back<00:19:57.600> and<00:19:57.810> forth<00:19:58.050> but<00:19:58.890> what<00:19:59.010> I<00:19:59.070> want<00:19:59.370> to<00:19:59.490> stress 00:20:00.200 --> 00:20:00.210 align:start position:0% back and forth but what I want to stress 00:20:00.210 --> 00:20:03.080 align:start position:0% back and forth but what I want to stress is<00:20:00.540> that<00:20:00.570> that's<00:20:01.550> when<00:20:02.550> I<00:20:02.580> was<00:20:02.790> younger<00:20:03.000> I 00:20:03.080 --> 00:20:03.090 align:start position:0% is that that's when I was younger I 00:20:03.090 --> 00:20:04.610 align:start position:0% is that that's when I was younger I thought<00:20:03.360> that<00:20:03.570> was<00:20:03.690> the<00:20:03.810> crux<00:20:04.020> of<00:20:04.200> the<00:20:04.320> debate 00:20:04.610 --> 00:20:04.620 align:start position:0% thought that was the crux of the debate 00:20:04.620 --> 00:20:08.210 align:start position:0% thought that was the crux of the debate and<00:20:04.830> what<00:20:05.280> Joe<00:20:05.670> Salerno<00:20:06.090> has<00:20:06.920> stressed<00:20:07.920> is 00:20:08.210 --> 00:20:08.220 align:start position:0% and what Joe Salerno has stressed is 00:20:08.220 --> 00:20:10.520 align:start position:0% and what Joe Salerno has stressed is that<00:20:09.000> that's<00:20:09.420> really<00:20:09.660> not<00:20:09.870> the<00:20:10.080> issue<00:20:10.110> when<00:20:10.500> it 00:20:10.520 --> 00:20:10.530 align:start position:0% that that's really not the issue when it 00:20:10.530 --> 00:20:12.620 align:start position:0% that that's really not the issue when it comes<00:20:10.620> to<00:20:10.980> the<00:20:11.100> business<00:20:11.490> cycle<00:20:11.700> okay<00:20:12.270> so<00:20:12.330> for 00:20:12.620 --> 00:20:12.630 align:start position:0% comes to the business cycle okay so for 00:20:12.630 --> 00:20:14.840 align:start position:0% comes to the business cycle okay so for Salerno<00:20:13.170> and<00:20:13.290> I<00:20:13.380> agree<00:20:13.620> with<00:20:13.770> him<00:20:13.950> the<00:20:14.520> really 00:20:14.840 --> 00:20:14.850 align:start position:0% Salerno and I agree with him the really 00:20:14.850 --> 00:20:16.490 align:start position:0% Salerno and I agree with him the really interesting<00:20:15.120> and<00:20:15.540> fruitful<00:20:16.080> part<00:20:16.320> of<00:20:16.410> the 00:20:16.490 --> 00:20:16.500 align:start position:0% interesting and fruitful part of the 00:20:16.500 --> 00:20:18.440 align:start position:0% interesting and fruitful part of the discussion<00:20:17.010> as<00:20:17.130> economists<00:20:17.730> because<00:20:18.270> you 00:20:18.440 --> 00:20:18.450 align:start position:0% discussion as economists because you 00:20:18.450 --> 00:20:21.590 align:start position:0% discussion as economists because you know<00:20:18.510> we're<00:20:18.660> not<00:20:18.780> legal<00:20:19.500> theorists<00:20:20.070> is<00:20:20.600> to 00:20:21.590 --> 00:20:21.600 align:start position:0% know we're not legal theorists is to 00:20:21.600 --> 00:20:23.990 align:start position:0% know we're not legal theorists is to focus<00:20:21.990> on<00:20:22.170> does<00:20:22.710> fractional<00:20:23.340> reserve<00:20:23.580> banking 00:20:23.990 --> 00:20:24.000 align:start position:0% focus on does fractional reserve banking 00:20:24.000 --> 00:20:26.900 align:start position:0% focus on does fractional reserve banking cause<00:20:24.300> the<00:20:25.020> Austrian<00:20:25.560> boom-bust<00:20:26.070> cycle<00:20:26.490> all 00:20:26.900 --> 00:20:26.910 align:start position:0% cause the Austrian boom-bust cycle all 00:20:26.910 --> 00:20:28.910 align:start position:0% cause the Austrian boom-bust cycle all right<00:20:27.060> and<00:20:27.390> so<00:20:27.570> it's<00:20:27.930> it's<00:20:28.170> not<00:20:28.230> that<00:20:28.500> Salerno 00:20:28.910 --> 00:20:28.920 align:start position:0% right and so it's it's not that Salerno 00:20:28.920 --> 00:20:30.980 align:start position:0% right and so it's it's not that Salerno is<00:20:29.120> conceding<00:20:30.120> one<00:20:30.240> way<00:20:30.390> or<00:20:30.480> the<00:20:30.570> other<00:20:30.600> on<00:20:30.900> the 00:20:30.980 --> 00:20:30.990 align:start position:0% is conceding one way or the other on the 00:20:30.990 --> 00:20:32.150 align:start position:0% is conceding one way or the other on the fraud<00:20:31.200> issue<00:20:31.380> he's<00:20:31.590> just<00:20:31.770> saying<00:20:31.950> let's<00:20:32.100> not 00:20:32.150 --> 00:20:32.160 align:start position:0% fraud issue he's just saying let's not 00:20:32.160 --> 00:20:35.030 align:start position:0% fraud issue he's just saying let's not focus<00:20:32.640> on<00:20:32.940> that<00:20:33.180> and<00:20:33.390> let's<00:20:34.260> instead<00:20:34.800> as 00:20:35.030 --> 00:20:35.040 align:start position:0% focus on that and let's instead as 00:20:35.040 --> 00:20:37.130 align:start position:0% focus on that and let's instead as economists<00:20:35.640> focus<00:20:35.970> on<00:20:36.150> this<00:20:36.630> issue<00:20:36.810> of<00:20:37.050> the 00:20:37.130 --> 00:20:37.140 align:start position:0% economists focus on this issue of the 00:20:37.140 --> 00:20:39.860 align:start position:0% economists focus on this issue of the business<00:20:37.470> cycle<00:20:37.650> and<00:20:37.830> so<00:20:38.040> that's<00:20:38.330> what<00:20:39.330> I<00:20:39.360> have 00:20:39.860 --> 00:20:39.870 align:start position:0% business cycle and so that's what I have 00:20:39.870 --> 00:20:43.160 align:start position:0% business cycle and so that's what I have done<00:20:39.990> also<00:20:40.200> and<00:20:40.710> so<00:20:41.220> here<00:20:41.670> it<00:20:42.540> really<00:20:42.900> does<00:20:43.140> I 00:20:43.160 --> 00:20:43.170 align:start position:0% done also and so here it really does I 00:20:43.170 --> 00:20:45.650 align:start position:0% done also and so here it really does I think<00:20:44.180> clear<00:20:45.180> up<00:20:45.330> some<00:20:45.510> of<00:20:45.540> the 00:20:45.650 --> 00:20:45.660 align:start position:0% think clear up some of the 00:20:45.660 --> 00:20:49.220 align:start position:0% think clear up some of the misconceptions<00:20:46.010> and<00:20:47.010> I<00:20:47.100> and<00:20:47.400> so<00:20:47.610> if<00:20:48.240> you<00:20:49.050> were 00:20:49.220 --> 00:20:49.230 align:start position:0% misconceptions and I and so if you were 00:20:49.230 --> 00:20:52.460 align:start position:0% misconceptions and I and so if you were leaning<00:20:49.500> towards<00:20:50.130> the<00:20:50.810> free<00:20:51.810> banker<00:20:52.200> side 00:20:52.460 --> 00:20:52.470 align:start position:0% leaning towards the free banker side 00:20:52.470 --> 00:20:54.110 align:start position:0% leaning towards the free banker side saying<00:20:52.830> come<00:20:52.950> on<00:20:53.010> it's<00:20:53.160> voluntary<00:20:53.670> you<00:20:53.970> know<00:20:54.090> I 00:20:54.110 --> 00:20:54.120 align:start position:0% saying come on it's voluntary you know I 00:20:54.120 --> 00:20:55.550 align:start position:0% saying come on it's voluntary you know I don't<00:20:54.510> really<00:20:54.570> how<00:20:54.990> could<00:20:55.140> it<00:20:55.230> be<00:20:55.260> fraudulent 00:20:55.550 --> 00:20:55.560 align:start position:0% don't really how could it be fraudulent 00:20:55.560 --> 00:20:57.320 align:start position:0% don't really how could it be fraudulent if<00:20:55.980> everybody<00:20:56.250> knows<00:20:56.400> what's<00:20:56.610> going<00:20:56.850> on<00:20:56.970> and 00:20:57.320 --> 00:20:57.330 align:start position:0% if everybody knows what's going on and 00:20:57.330 --> 00:20:59.420 align:start position:0% if everybody knows what's going on and the<00:20:58.200> hundred<00:20:58.590> percent<00:20:58.800> reservist<00:20:59.220> have<00:20:59.400> a 00:20:59.420 --> 00:20:59.430 align:start position:0% the hundred percent reservist have a 00:20:59.430 --> 00:21:01.790 align:start position:0% the hundred percent reservist have a response<00:20:59.880> that<00:21:00.000> by<00:21:00.270> the<00:21:00.330> way<00:21:00.540> so<00:21:01.290> you<00:21:01.710> know 00:21:01.790 --> 00:21:01.800 align:start position:0% response that by the way so you know 00:21:01.800 --> 00:21:03.350 align:start position:0% response that by the way so you know hapa<00:21:02.190> or<00:21:02.370> walter<00:21:02.790> block<00:21:03.000> they'll<00:21:03.180> say 00:21:03.350 --> 00:21:03.360 align:start position:0% hapa or walter block they'll say 00:21:03.360 --> 00:21:05.360 align:start position:0% hapa or walter block they'll say something<00:21:03.750> like<00:21:03.900> if<00:21:04.500> somebody<00:21:04.950> and<00:21:05.130> we<00:21:05.220> have<00:21:05.310> a 00:21:05.360 --> 00:21:05.370 align:start position:0% something like if somebody and we have a 00:21:05.370 --> 00:21:06.740 align:start position:0% something like if somebody and we have a voluntary<00:21:05.730> contract<00:21:06.270> if<00:21:06.360> someone<00:21:06.570> agrees 00:21:06.740 --> 00:21:06.750 align:start position:0% voluntary contract if someone agrees 00:21:06.750 --> 00:21:08.090 align:start position:0% voluntary contract if someone agrees that<00:21:07.110> you're<00:21:07.530> gonna<00:21:07.620> give<00:21:07.800> them<00:21:07.890> a<00:21:07.950> hundred 00:21:08.090 --> 00:21:08.100 align:start position:0% that you're gonna give them a hundred 00:21:08.100 --> 00:21:09.320 align:start position:0% that you're gonna give them a hundred dollars<00:21:08.550> and<00:21:08.730> he's<00:21:08.850> going<00:21:08.940> to<00:21:09.000> give<00:21:09.180> you<00:21:09.300> a 00:21:09.320 --> 00:21:09.330 align:start position:0% dollars and he's going to give you a 00:21:09.330 --> 00:21:11.870 align:start position:0% dollars and he's going to give you a square<00:21:09.660> circle<00:21:10.040> that's<00:21:11.040> still<00:21:11.280> a<00:21:11.310> nonsensical 00:21:11.870 --> 00:21:11.880 align:start position:0% square circle that's still a nonsensical 00:21:11.880 --> 00:21:13.760 align:start position:0% square circle that's still a nonsensical contract<00:21:12.450> even<00:21:12.660> if<00:21:12.750> it's<00:21:12.900> voluntary<00:21:13.380> right 00:21:13.760 --> 00:21:13.770 align:start position:0% contract even if it's voluntary right 00:21:13.770 --> 00:21:14.930 align:start position:0% contract even if it's voluntary right cuz<00:21:13.890> a<00:21:13.920> square<00:21:14.190> circle<00:21:14.520> doesn't<00:21:14.670> make<00:21:14.820> any 00:21:14.930 --> 00:21:14.940 align:start position:0% cuz a square circle doesn't make any 00:21:14.940 --> 00:21:17.210 align:start position:0% cuz a square circle doesn't make any sense<00:21:15.210> so<00:21:15.470> that's<00:21:16.470> you<00:21:16.710> know<00:21:16.740> that's<00:21:16.890> how<00:21:17.100> they 00:21:17.210 --> 00:21:17.220 align:start position:0% sense so that's you know that's how they 00:21:17.220 --> 00:21:18.860 align:start position:0% sense so that's you know that's how they deal<00:21:17.430> with<00:21:17.460> that<00:21:17.700> sort<00:21:17.850> of<00:21:17.970> argument<00:21:18.420> but<00:21:18.630> the 00:21:18.860 --> 00:21:18.870 align:start position:0% deal with that sort of argument but the 00:21:18.870 --> 00:21:21.860 align:start position:0% deal with that sort of argument but the point<00:21:19.080> is<00:21:19.220> as<00:21:20.220> Salerno<00:21:20.730> says<00:21:20.760> that's<00:21:21.180> we<00:21:21.720> can 00:21:21.860 --> 00:21:21.870 align:start position:0% point is as Salerno says that's we can 00:21:21.870 --> 00:21:23.150 align:start position:0% point is as Salerno says that's we can put<00:21:22.020> that<00:21:22.140> to<00:21:22.320> the<00:21:22.440> side<00:21:22.650> and<00:21:22.680> that's<00:21:23.010> an 00:21:23.150 --> 00:21:23.160 align:start position:0% put that to the side and that's an 00:21:23.160 --> 00:21:24.620 align:start position:0% put that to the side and that's an interesting<00:21:23.280> issue<00:21:23.610> but<00:21:23.970> as<00:21:24.090> economists 00:21:24.620 --> 00:21:24.630 align:start position:0% interesting issue but as economists 00:21:24.630 --> 00:21:27.320 align:start position:0% interesting issue but as economists let's<00:21:24.780> focus<00:21:24.930> on<00:21:25.340> whether<00:21:26.340> or<00:21:26.580> not<00:21:26.700> fractional 00:21:27.320 --> 00:21:27.330 align:start position:0% let's focus on whether or not fractional 00:21:27.330 --> 00:21:28.880 align:start position:0% let's focus on whether or not fractional reserve<00:21:27.540> banking<00:21:27.960> causes<00:21:28.410> the<00:21:28.500> business 00:21:28.880 --> 00:21:28.890 align:start position:0% reserve banking causes the business 00:21:28.890 --> 00:21:31.100 align:start position:0% reserve banking causes the business cycle<00:21:29.100> so<00:21:30.090> here<00:21:30.360> for<00:21:30.510> just<00:21:30.660> a<00:21:30.750> little<00:21:30.840> bit<00:21:31.020> of 00:21:31.100 --> 00:21:31.110 align:start position:0% cycle so here for just a little bit of 00:21:31.110 --> 00:21:32.870 align:start position:0% cycle so here for just a little bit of context<00:21:31.680> before<00:21:31.950> I<00:21:32.010> move<00:21:32.160> on<00:21:32.310> let<00:21:32.580> me<00:21:32.700> just 00:21:32.870 --> 00:21:32.880 align:start position:0% context before I move on let me just 00:21:32.880 --> 00:21:35.780 align:start position:0% context before I move on let me just make<00:21:33.660> sure<00:21:33.720> you<00:21:33.990> realize<00:21:34.350> this<00:21:34.620> don't<00:21:35.610> get 00:21:35.780 --> 00:21:35.790 align:start position:0% make sure you realize this don't get 00:21:35.790 --> 00:21:36.950 align:start position:0% make sure you realize this don't get caught<00:21:36.000> into<00:21:36.180> a<00:21:36.270> trap 00:21:36.950 --> 00:21:36.960 align:start position:0% caught into a trap 00:21:36.960 --> 00:21:39.140 align:start position:0% caught into a trap where<00:21:37.260> if<00:21:37.740> somebody<00:21:38.070> asks<00:21:38.580> you<00:21:38.700> oh<00:21:38.730> so<00:21:38.850> you 00:21:39.140 --> 00:21:39.150 align:start position:0% where if somebody asks you oh so you 00:21:39.150 --> 00:21:40.880 align:start position:0% where if somebody asks you oh so you knew<00:21:39.690> Austrians<00:21:40.260> what<00:21:40.410> do<00:21:40.470> you<00:21:40.560> think<00:21:40.800> about 00:21:40.880 --> 00:21:40.890 align:start position:0% knew Austrians what do you think about 00:21:40.890 --> 00:21:43.400 align:start position:0% knew Austrians what do you think about what<00:21:41.190> causes<00:21:41.400> the<00:21:41.610> business<00:21:42.000> cycle<00:21:42.180> if<00:21:42.540> you 00:21:43.400 --> 00:21:43.410 align:start position:0% what causes the business cycle if you 00:21:43.410 --> 00:21:44.960 align:start position:0% what causes the business cycle if you say<00:21:43.650> the<00:21:43.830> Federal<00:21:44.130> Reserve<00:21:44.490> er<00:21:44.520> if<00:21:44.700> you<00:21:44.790> say 00:21:44.960 --> 00:21:44.970 align:start position:0% say the Federal Reserve er if you say 00:21:44.970 --> 00:21:47.750 align:start position:0% say the Federal Reserve er if you say central<00:21:45.390> bank's<00:21:45.690> caused<00:21:45.900> it<00:21:46.200> then<00:21:47.190> the 00:21:47.750 --> 00:21:47.760 align:start position:0% central bank's caused it then the 00:21:47.760 --> 00:21:49.550 align:start position:0% central bank's caused it then the obvious<00:21:47.940> retort<00:21:48.540> is<00:21:48.690> to<00:21:48.840> say<00:21:49.050> oh<00:21:49.080> well 00:21:49.550 --> 00:21:49.560 align:start position:0% obvious retort is to say oh well 00:21:49.560 --> 00:21:50.630 align:start position:0% obvious retort is to say oh well apparently<00:21:50.100> you<00:21:50.220> don't<00:21:50.310> know<00:21:50.430> your<00:21:50.610> history 00:21:50.630 --> 00:21:50.640 align:start position:0% apparently you don't know your history 00:21:50.640 --> 00:21:51.980 align:start position:0% apparently you don't know your history don't<00:21:51.120> you<00:21:51.210> know<00:21:51.330> there<00:21:51.450> were<00:21:51.510> all<00:21:51.600> sorts<00:21:51.930> of 00:21:51.980 --> 00:21:51.990 align:start position:0% don't you know there were all sorts of 00:21:51.990 --> 00:21:52.860 align:start position:0% don't you know there were all sorts of financial 00:21:52.860 --> 00:21:52.870 align:start position:0% financial 00:21:52.870 --> 00:21:55.620 align:start position:0% financial and<00:21:53.320> panics<00:21:53.740> and<00:21:54.090> depressions<00:21:55.090> with<00:21:55.240> a<00:21:55.270> small 00:21:55.620 --> 00:21:55.630 align:start position:0% and panics and depressions with a small 00:21:55.630 --> 00:21:57.870 align:start position:0% and panics and depressions with a small D<00:21:55.930> like<00:21:56.650> in<00:21:56.740> the<00:21:56.800> United<00:21:57.070> States<00:21:57.340> even<00:21:57.670> before 00:21:57.870 --> 00:21:57.880 align:start position:0% D like in the United States even before 00:21:57.880 --> 00:22:00.470 align:start position:0% D like in the United States even before the<00:21:58.150> Federal<00:21:58.420> Reserve<00:21:58.720> and<00:21:58.990> even<00:21:59.320> in<00:21:59.559> periods 00:22:00.470 --> 00:22:00.480 align:start position:0% the Federal Reserve and even in periods 00:22:00.480 --> 00:22:02.130 align:start position:0% the Federal Reserve and even in periods where<00:22:01.480> there<00:22:01.600> might<00:22:01.720> not<00:22:01.870> have<00:22:01.930> been<00:22:02.050> a 00:22:02.130 --> 00:22:02.140 align:start position:0% where there might not have been a 00:22:02.140 --> 00:22:03.630 align:start position:0% where there might not have been a National<00:22:02.650> Bank<00:22:02.800> established 00:22:03.630 --> 00:22:03.640 align:start position:0% National Bank established 00:22:03.640 --> 00:22:05.970 align:start position:0% National Bank established okay<00:22:03.910> and<00:22:04.120> so<00:22:04.330> strictly<00:22:05.200> spin<00:22:05.590> it<00:22:05.710> and<00:22:05.860> that's 00:22:05.970 --> 00:22:05.980 align:start position:0% okay and so strictly spin it and that's 00:22:05.980 --> 00:22:09.270 align:start position:0% okay and so strictly spin it and that's correct<00:22:06.309> so<00:22:06.850> strictly<00:22:07.240> speaking<00:22:07.890> the<00:22:08.890> theory 00:22:09.270 --> 00:22:09.280 align:start position:0% correct so strictly speaking the theory 00:22:09.280 --> 00:22:10.650 align:start position:0% correct so strictly speaking the theory of<00:22:09.309> the<00:22:09.460> business<00:22:09.640> cycle<00:22:10.059> that<00:22:10.300> Mises 00:22:10.650 --> 00:22:10.660 align:start position:0% of the business cycle that Mises 00:22:10.660 --> 00:22:13.049 align:start position:0% of the business cycle that Mises developed<00:22:11.200> in<00:22:11.410> what<00:22:12.010> has<00:22:12.250> been<00:22:12.460> translated<00:22:12.790> as 00:22:13.049 --> 00:22:13.059 align:start position:0% developed in what has been translated as 00:22:13.059 --> 00:22:14.760 align:start position:0% developed in what has been translated as a<00:22:13.120> theory<00:22:13.420> of<00:22:13.480> money<00:22:13.630> and<00:22:13.750> credit<00:22:13.870> is<00:22:14.200> 1912 00:22:14.760 --> 00:22:14.770 align:start position:0% a theory of money and credit is 1912 00:22:14.770 --> 00:22:17.610 align:start position:0% a theory of money and credit is 1912 book<00:22:15.059> that's<00:22:16.059> a<00:22:16.210> theory<00:22:16.540> of<00:22:16.570> how<00:22:16.870> fractional 00:22:17.610 --> 00:22:17.620 align:start position:0% book that's a theory of how fractional 00:22:17.620 --> 00:22:19.260 align:start position:0% book that's a theory of how fractional reserve<00:22:17.890> banking<00:22:18.160> or<00:22:18.580> what<00:22:18.850> he<00:22:18.940> called<00:22:19.150> the 00:22:19.260 --> 00:22:19.270 align:start position:0% reserve banking or what he called the 00:22:19.270 --> 00:22:22.320 align:start position:0% reserve banking or what he called the issuance<00:22:19.690> of<00:22:19.840> fiduciary<00:22:20.590> media<00:22:21.150> causes<00:22:22.150> the 00:22:22.320 --> 00:22:22.330 align:start position:0% issuance of fiduciary media causes the 00:22:22.330 --> 00:22:25.370 align:start position:0% issuance of fiduciary media causes the boom-bust<00:22:22.690> cycle<00:22:23.200> right<00:22:23.650> so<00:22:23.880> central<00:22:24.880> bank's 00:22:25.370 --> 00:22:25.380 align:start position:0% boom-bust cycle right so central bank's 00:22:25.380 --> 00:22:27.840 align:start position:0% boom-bust cycle right so central bank's exacerbate<00:22:26.380> the<00:22:26.500> problem<00:22:26.980> but<00:22:27.100> the<00:22:27.340> issues 00:22:27.840 --> 00:22:27.850 align:start position:0% exacerbate the problem but the issues 00:22:27.850 --> 00:22:29.520 align:start position:0% exacerbate the problem but the issues not<00:22:28.000> central<00:22:28.450> banking<00:22:28.780> per<00:22:28.990> se 00:22:29.520 --> 00:22:29.530 align:start position:0% not central banking per se 00:22:29.530 --> 00:22:34.230 align:start position:0% not central banking per se the<00:22:29.950> issue<00:22:30.100> is<00:22:30.840> fiduciary<00:22:31.840> media<00:22:32.230> okay<00:22:32.500> and<00:22:33.370> so 00:22:34.230 --> 00:22:34.240 align:start position:0% the issue is fiduciary media okay and so 00:22:34.240 --> 00:22:36.270 align:start position:0% the issue is fiduciary media okay and so this<00:22:34.600> leads<00:22:34.840> into<00:22:34.929> my<00:22:35.080> next<00:22:35.140> point<00:22:35.860> about<00:22:36.160> the 00:22:36.270 --> 00:22:36.280 align:start position:0% this leads into my next point about the 00:22:36.280 --> 00:22:39.210 align:start position:0% this leads into my next point about the new<00:22:36.400> ones<00:22:36.580> position<00:22:36.790> of<00:22:37.150> Mises<00:22:37.860> when<00:22:38.860> I<00:22:38.890> was 00:22:39.210 --> 00:22:39.220 align:start position:0% new ones position of Mises when I was 00:22:39.220 --> 00:22:41.070 align:start position:0% new ones position of Mises when I was younger<00:22:39.700> and<00:22:39.850> looking<00:22:40.240> at<00:22:40.330> this<00:22:40.480> debate<00:22:40.630> I 00:22:41.070 --> 00:22:41.080 align:start position:0% younger and looking at this debate I 00:22:41.080 --> 00:22:44.310 align:start position:0% younger and looking at this debate I thought<00:22:41.710> both<00:22:41.950> sides<00:22:42.340> had<00:22:42.700> great<00:22:43.300> points<00:22:43.929> that 00:22:44.310 --> 00:22:44.320 align:start position:0% thought both sides had great points that 00:22:44.320 --> 00:22:46.049 align:start position:0% thought both sides had great points that you<00:22:44.530> know<00:22:44.620> the<00:22:44.710> so-called<00:22:45.190> free<00:22:45.610> bankers 00:22:46.049 --> 00:22:46.059 align:start position:0% you know the so-called free bankers 00:22:46.059 --> 00:22:48.690 align:start position:0% you know the so-called free bankers could<00:22:46.900> produce<00:22:47.080> lots<00:22:47.590> of<00:22:47.770> quotes<00:22:48.040> for<00:22:48.309> Mises 00:22:48.690 --> 00:22:48.700 align:start position:0% could produce lots of quotes for Mises 00:22:48.700 --> 00:22:51.000 align:start position:0% could produce lots of quotes for Mises in<00:22:48.850> support<00:22:49.330> of<00:22:49.450> their<00:22:49.600> position<00:22:49.890> so<00:22:50.890> it 00:22:51.000 --> 00:22:51.010 align:start position:0% in support of their position so it 00:22:51.010 --> 00:22:54.450 align:start position:0% in support of their position so it seemed<00:22:51.250> to<00:22:51.340> me<00:22:51.520> and<00:22:51.730> the<00:22:53.190> anti-free<00:22:54.190> banker 00:22:54.450 --> 00:22:54.460 align:start position:0% seemed to me and the anti-free banker 00:22:54.460 --> 00:22:56.850 align:start position:0% seemed to me and the anti-free banker Harper<00:22:54.790> sent<00:22:54.970> reservists<00:22:55.600> let's<00:22:55.840> say<00:22:56.110> they 00:22:56.850 --> 00:22:56.860 align:start position:0% Harper sent reservists let's say they 00:22:56.860 --> 00:22:58.140 align:start position:0% Harper sent reservists let's say they also<00:22:57.040> could<00:22:57.340> produce<00:22:57.490> a<00:22:57.670> bunch<00:22:57.850> of<00:22:57.940> quotes 00:22:58.140 --> 00:22:58.150 align:start position:0% also could produce a bunch of quotes 00:22:58.150 --> 00:23:00.270 align:start position:0% also could produce a bunch of quotes from<00:22:58.330> Mises<00:22:58.750> that<00:22:59.530> seemed<00:22:59.770> to<00:22:59.860> support<00:23:00.010> what 00:23:00.270 --> 00:23:00.280 align:start position:0% from Mises that seemed to support what 00:23:00.280 --> 00:23:02.490 align:start position:0% from Mises that seemed to support what they<00:23:00.370> were<00:23:00.429> saying<00:23:00.790> and<00:23:01.090> so<00:23:01.660> I<00:23:01.690> concluded<00:23:02.380> at 00:23:02.490 --> 00:23:02.500 align:start position:0% they were saying and so I concluded at 00:23:02.500 --> 00:23:03.990 align:start position:0% they were saying and so I concluded at the<00:23:02.530> time<00:23:02.770> that<00:23:02.980> you<00:23:03.160> know<00:23:03.250> Mises<00:23:03.610> either<00:23:03.820> was 00:23:03.990 --> 00:23:04.000 align:start position:0% the time that you know Mises either was 00:23:04.000 --> 00:23:05.610 align:start position:0% the time that you know Mises either was contradicting<00:23:04.570> himself<00:23:04.690> or<00:23:05.050> that<00:23:05.170> his<00:23:05.260> views 00:23:05.610 --> 00:23:05.620 align:start position:0% contradicting himself or that his views 00:23:05.620 --> 00:23:07.290 align:start position:0% contradicting himself or that his views just<00:23:05.950> changed<00:23:06.580> you<00:23:06.790> know<00:23:06.850> he<00:23:06.940> had<00:23:07.059> a<00:23:07.120> long 00:23:07.290 --> 00:23:07.300 align:start position:0% just changed you know he had a long 00:23:07.300 --> 00:23:09.210 align:start position:0% just changed you know he had a long career<00:23:07.480> and<00:23:07.840> you<00:23:08.110> know<00:23:08.200> his<00:23:08.290> views<00:23:08.440> changed 00:23:09.210 --> 00:23:09.220 align:start position:0% career and you know his views changed 00:23:09.220 --> 00:23:10.549 align:start position:0% career and you know his views changed and<00:23:09.400> that's<00:23:09.820> what<00:23:10.030> I<00:23:10.059> thought<00:23:10.240> was<00:23:10.390> happening 00:23:10.549 --> 00:23:10.559 align:start position:0% and that's what I thought was happening 00:23:10.559 --> 00:23:14.520 align:start position:0% and that's what I thought was happening but<00:23:11.559> actually<00:23:12.960> within<00:23:13.960> the<00:23:14.050> last<00:23:14.260> several 00:23:14.520 --> 00:23:14.530 align:start position:0% but actually within the last several 00:23:14.530 --> 00:23:16.110 align:start position:0% but actually within the last several years<00:23:14.860> the<00:23:15.100> more<00:23:15.220> I<00:23:15.280> was<00:23:15.429> studying<00:23:15.640> this<00:23:15.910> and 00:23:16.110 --> 00:23:16.120 align:start position:0% years the more I was studying this and 00:23:16.120 --> 00:23:17.880 align:start position:0% years the more I was studying this and reading<00:23:16.300> the<00:23:16.990> work<00:23:17.170> of<00:23:17.350> Salerno<00:23:17.770> in 00:23:17.880 --> 00:23:17.890 align:start position:0% reading the work of Salerno in 00:23:17.890 --> 00:23:20.940 align:start position:0% reading the work of Salerno in particular<00:23:18.400> showed<00:23:19.300> me<00:23:19.510> that<00:23:19.690> no<00:23:20.170> on<00:23:20.470> most<00:23:20.770> of 00:23:20.940 --> 00:23:20.950 align:start position:0% particular showed me that no on most of 00:23:20.950 --> 00:23:22.890 align:start position:0% particular showed me that no on most of these<00:23:21.010> issues<00:23:21.190> so<00:23:21.460> I'm<00:23:21.580> putting<00:23:22.090> a<00:23:22.179> question 00:23:22.890 --> 00:23:22.900 align:start position:0% these issues so I'm putting a question 00:23:22.900 --> 00:23:24.240 align:start position:0% these issues so I'm putting a question mark<00:23:23.140> here<00:23:23.320> that<00:23:23.470> you<00:23:23.590> maybe<00:23:23.800> somebody<00:23:24.160> can 00:23:24.240 --> 00:23:24.250 align:start position:0% mark here that you maybe somebody can 00:23:24.250 --> 00:23:25.940 align:start position:0% mark here that you maybe somebody can produce<00:23:24.400> a<00:23:24.550> quote<00:23:24.970> that<00:23:25.120> I<00:23:25.210> won't<00:23:25.390> be<00:23:25.510> able<00:23:25.630> to 00:23:25.940 --> 00:23:25.950 align:start position:0% produce a quote that I won't be able to 00:23:25.950 --> 00:23:28.440 align:start position:0% produce a quote that I won't be able to explain<00:23:26.950> in<00:23:27.100> this<00:23:27.190> way<00:23:27.400> but<00:23:28.059> for<00:23:28.150> just<00:23:28.330> about 00:23:28.440 --> 00:23:28.450 align:start position:0% explain in this way but for just about 00:23:28.450 --> 00:23:29.910 align:start position:0% explain in this way but for just about all<00:23:28.540> the<00:23:28.809> ones<00:23:29.020> you<00:23:29.230> know<00:23:29.320> the<00:23:29.350> major<00:23:29.620> ones 00:23:29.910 --> 00:23:29.920 align:start position:0% all the ones you know the major ones 00:23:29.920 --> 00:23:32.070 align:start position:0% all the ones you know the major ones that<00:23:30.040> ostensibly<00:23:30.820> look<00:23:31.270> like<00:23:31.480> it's<00:23:31.690> Mises 00:23:32.070 --> 00:23:32.080 align:start position:0% that ostensibly look like it's Mises 00:23:32.080 --> 00:23:36.330 align:start position:0% that ostensibly look like it's Mises praising<00:23:32.650> free<00:23:33.490> banking<00:23:34.030> so<00:23:34.780> he<00:23:34.990> is<00:23:35.200> but<00:23:35.950> it's 00:23:36.330 --> 00:23:36.340 align:start position:0% praising free banking so he is but it's 00:23:36.340 --> 00:23:39.090 align:start position:0% praising free banking so he is but it's not<00:23:36.610> because<00:23:37.030> he's<00:23:37.270> admitting<00:23:37.840> that<00:23:38.620> very<00:23:38.860> low 00:23:39.090 --> 00:23:39.100 align:start position:0% not because he's admitting that very low 00:23:39.100 --> 00:23:41.400 align:start position:0% not because he's admitting that very low reserve<00:23:39.970> requirements<00:23:40.630> are<00:23:40.750> consistent<00:23:41.350> with 00:23:41.400 --> 00:23:41.410 align:start position:0% reserve requirements are consistent with 00:23:41.410 --> 00:23:43.710 align:start position:0% reserve requirements are consistent with you<00:23:41.980> know<00:23:42.100> an<00:23:42.250> economy<00:23:42.850> that's<00:23:43.000> free<00:23:43.210> from<00:23:43.420> the 00:23:43.710 --> 00:23:43.720 align:start position:0% you know an economy that's free from the 00:23:43.720 --> 00:23:46.260 align:start position:0% you know an economy that's free from the business<00:23:44.050> cycle<00:23:44.309> that's<00:23:45.309> not<00:23:45.550> what<00:23:45.760> he's<00:23:45.910> he's 00:23:46.260 --> 00:23:46.270 align:start position:0% business cycle that's not what he's he's 00:23:46.270 --> 00:23:47.580 align:start position:0% business cycle that's not what he's he's claiming<00:23:46.570> if<00:23:46.750> you<00:23:46.840> go<00:23:46.960> and<00:23:47.110> look<00:23:47.200> at<00:23:47.350> a<00:23:47.380> lot<00:23:47.530> of 00:23:47.580 --> 00:23:47.590 align:start position:0% claiming if you go and look at a lot of 00:23:47.590 --> 00:23:50.669 align:start position:0% claiming if you go and look at a lot of these<00:23:47.800> ones<00:23:48.330> Mises<00:23:49.330> is<00:23:49.540> consistently<00:23:50.380> saying 00:23:50.669 --> 00:23:50.679 align:start position:0% these ones Mises is consistently saying 00:23:50.679 --> 00:23:54.060 align:start position:0% these ones Mises is consistently saying on<00:23:51.010> the<00:23:51.100> one<00:23:51.250> hand<00:23:51.610> that<00:23:52.380> the<00:23:53.380> issuance<00:23:53.800> of 00:23:54.060 --> 00:23:54.070 align:start position:0% on the one hand that the issuance of 00:23:54.070 --> 00:23:56.910 align:start position:0% on the one hand that the issuance of fiduciary<00:23:54.700> media<00:23:55.090> so<00:23:55.840> fiduciary<00:23:56.350> media<00:23:56.710> just 00:23:56.910 --> 00:23:56.920 align:start position:0% fiduciary media so fiduciary media just 00:23:56.920 --> 00:24:00.210 align:start position:0% fiduciary media so fiduciary media just means<00:23:57.130> money<00:23:57.400> that's<00:23:57.750> it's<00:23:58.750> like<00:23:58.900> a<00:23:59.220> ticket 00:24:00.210 --> 00:24:00.220 align:start position:0% means money that's it's like a ticket 00:24:00.220 --> 00:24:01.740 align:start position:0% means money that's it's like a ticket that<00:24:00.340> the<00:24:00.429> bank<00:24:00.640> issues<00:24:01.090> that's<00:24:01.300> not<00:24:01.480> backed 00:24:01.740 --> 00:24:01.750 align:start position:0% that the bank issues that's not backed 00:24:01.750 --> 00:24:03.690 align:start position:0% that the bank issues that's not backed up<00:24:01.929> by<00:24:01.990> actual<00:24:02.350> money<00:24:02.620> in<00:24:02.740> the<00:24:02.800> vault<00:24:02.830> so<00:24:03.550> it's 00:24:03.690 --> 00:24:03.700 align:start position:0% up by actual money in the vault so it's 00:24:03.700 --> 00:24:05.370 align:start position:0% up by actual money in the vault so it's a<00:24:03.760> claim<00:24:04.030> on<00:24:04.270> money<00:24:04.510> that's<00:24:04.750> not<00:24:04.870> backed<00:24:05.170> up<00:24:05.320> by 00:24:05.370 --> 00:24:05.380 align:start position:0% a claim on money that's not backed up by 00:24:05.380 --> 00:24:06.750 align:start position:0% a claim on money that's not backed up by genuine<00:24:05.890> money<00:24:06.100> in<00:24:06.220> the<00:24:06.310> vault 00:24:06.750 --> 00:24:06.760 align:start position:0% genuine money in the vault 00:24:06.760 --> 00:24:09.240 align:start position:0% genuine money in the vault so<00:24:07.179> to<00:24:07.240> issue<00:24:07.630> fiduciary<00:24:08.290> media<00:24:08.650> means<00:24:08.950> to 00:24:09.240 --> 00:24:09.250 align:start position:0% so to issue fiduciary media means to 00:24:09.250 --> 00:24:10.980 align:start position:0% so to issue fiduciary media means to engage<00:24:09.460> in<00:24:09.760> fractional<00:24:10.150> reserve<00:24:10.419> banking 00:24:10.980 --> 00:24:10.990 align:start position:0% engage in fractional reserve banking 00:24:10.990 --> 00:24:13.110 align:start position:0% engage in fractional reserve banking so<00:24:11.410> Mises<00:24:11.770> has<00:24:11.950> crystal-clear<00:24:12.610> quotes<00:24:12.970> even 00:24:13.110 --> 00:24:13.120 align:start position:0% so Mises has crystal-clear quotes even 00:24:13.120 --> 00:24:14.580 align:start position:0% so Mises has crystal-clear quotes even in<00:24:13.330> human<00:24:13.600> action<00:24:13.929> right<00:24:14.080> so<00:24:14.169> it's<00:24:14.290> not<00:24:14.380> just 00:24:14.580 --> 00:24:14.590 align:start position:0% in human action right so it's not just 00:24:14.590 --> 00:24:15.900 align:start position:0% in human action right so it's not just when<00:24:14.770> he's<00:24:14.950> younger<00:24:15.190> but<00:24:15.309> even<00:24:15.580> in<00:24:15.669> human 00:24:15.900 --> 00:24:15.910 align:start position:0% when he's younger but even in human 00:24:15.910 --> 00:24:18.630 align:start position:0% when he's younger but even in human action<00:24:16.240> where<00:24:16.390> he<00:24:16.510> says<00:24:16.860> that<00:24:17.860> the<00:24:18.220> issuance 00:24:18.630 --> 00:24:18.640 align:start position:0% action where he says that the issuance 00:24:18.640 --> 00:24:21.750 align:start position:0% action where he says that the issuance of<00:24:18.910> new<00:24:19.210> fiduciary<00:24:20.169> media<00:24:20.559> sets<00:24:21.549> in<00:24:21.730> motion 00:24:21.750 --> 00:24:21.760 align:start position:0% of new fiduciary media sets in motion 00:24:21.760 --> 00:24:24.450 align:start position:0% of new fiduciary media sets in motion the<00:24:22.510> boom-bust<00:24:22.870> cycle<00:24:23.350> you<00:24:23.679> know<00:24:23.770> period<00:24:24.280> end 00:24:24.450 --> 00:24:24.460 align:start position:0% the boom-bust cycle you know period end 00:24:24.460 --> 00:24:25.169 align:start position:0% the boom-bust cycle you know period end of<00:24:24.549> story 00:24:25.169 --> 00:24:25.179 align:start position:0% of story 00:24:25.179 --> 00:24:26.850 align:start position:0% of story and<00:24:25.450> he<00:24:25.510> says<00:24:25.750> now<00:24:25.900> if<00:24:26.020> it's<00:24:26.380> just<00:24:26.559> a<00:24:26.620> little 00:24:26.850 --> 00:24:26.860 align:start position:0% and he says now if it's just a little 00:24:26.860 --> 00:24:28.260 align:start position:0% and he says now if it's just a little bit<00:24:27.010> then<00:24:27.130> it's<00:24:27.250> gonna<00:24:27.370> be<00:24:27.520> a<00:24:27.549> small<00:24:28.090> business 00:24:28.260 --> 00:24:28.270 align:start position:0% bit then it's gonna be a small business 00:24:28.270 --> 00:24:31.880 align:start position:0% bit then it's gonna be a small business cycle<00:24:28.750> but<00:24:28.870> the<00:24:28.960> point<00:24:29.169> being<00:24:29.230> there's<00:24:30.070> no 00:24:31.880 --> 00:24:31.890 align:start position:0% cycle but the point being there's no 00:24:31.890 --> 00:24:34.440 align:start position:0% cycle but the point being there's no there's<00:24:32.890> no<00:24:33.010> such<00:24:33.220> thing<00:24:33.429> as<00:24:33.460> is<00:24:33.760> in<00:24:33.910> a<00:24:34.059> correct 00:24:34.440 --> 00:24:34.450 align:start position:0% there's no such thing as is in a correct 00:24:34.450 --> 00:24:37.650 align:start position:0% there's no such thing as is in a correct amount<00:24:34.780> or<00:24:35.020> an<00:24:35.520> amount<00:24:36.520> of<00:24:36.700> fiduciary<00:24:37.390> me<00:24:37.510> that 00:24:37.650 --> 00:24:37.660 align:start position:0% amount or an amount of fiduciary me that 00:24:37.660 --> 00:24:39.330 align:start position:0% amount or an amount of fiduciary me that would<00:24:37.780> not<00:24:37.929> set<00:24:38.200> into<00:24:38.440> motion<00:24:38.620> the<00:24:39.010> business 00:24:39.330 --> 00:24:39.340 align:start position:0% would not set into motion the business 00:24:39.340 --> 00:24:40.830 align:start position:0% would not set into motion the business cycle<00:24:39.520> all<00:24:39.880> right<00:24:40.000> so<00:24:40.120> he<00:24:40.240> says<00:24:40.660> that 00:24:40.830 --> 00:24:40.840 align:start position:0% cycle all right so he says that 00:24:40.840 --> 00:24:43.560 align:start position:0% cycle all right so he says that explicitly<00:24:41.790> elsewhere<00:24:42.790> in<00:24:42.880> human<00:24:43.179> action 00:24:43.560 --> 00:24:43.570 align:start position:0% explicitly elsewhere in human action 00:24:43.570 --> 00:24:45.750 align:start position:0% explicitly elsewhere in human action he's<00:24:44.320> in<00:24:44.500> favor<00:24:44.679> of<00:24:44.890> what<00:24:45.130> he<00:24:45.220> calls<00:24:45.460> free 00:24:45.750 --> 00:24:45.760 align:start position:0% he's in favor of what he calls free 00:24:45.760 --> 00:24:47.460 align:start position:0% he's in favor of what he calls free banking<00:24:46.240> so<00:24:46.570> it<00:24:46.690> looks<00:24:46.870> like<00:24:46.929> what<00:24:47.169> man<00:24:47.320> this 00:24:47.460 --> 00:24:47.470 align:start position:0% banking so it looks like what man this 00:24:47.470 --> 00:24:49.680 align:start position:0% banking so it looks like what man this guy<00:24:47.620> he's<00:24:47.950> inconsistent<00:24:48.400> if<00:24:48.790> you<00:24:49.360> read<00:24:49.570> it 00:24:49.680 --> 00:24:49.690 align:start position:0% guy he's inconsistent if you read it 00:24:49.690 --> 00:24:51.620 align:start position:0% guy he's inconsistent if you read it though<00:24:49.960> with<00:24:50.350> this<00:24:50.559> interpretation 00:24:51.620 --> 00:24:51.630 align:start position:0% though with this interpretation 00:24:51.630 --> 00:24:54.120 align:start position:0% though with this interpretation everything<00:24:52.630> makes<00:24:52.809> perfect<00:24:53.200> sense<00:24:53.380> is<00:24:53.679> that 00:24:54.120 --> 00:24:54.130 align:start position:0% everything makes perfect sense is that 00:24:54.130 --> 00:24:56.970 align:start position:0% everything makes perfect sense is that Mises<00:24:54.730> doesn't<00:24:55.150> trust<00:24:55.419> the<00:24:55.660> state<00:24:56.049> at<00:24:56.799> least 00:24:56.970 --> 00:24:56.980 align:start position:0% Mises doesn't trust the state at least 00:24:56.980 --> 00:24:58.200 align:start position:0% Mises doesn't trust the state at least as<00:24:57.190> of<00:24:57.340> his<00:24:57.460> writing<00:24:57.730> and<00:24:57.850> human<00:24:58.059> action 00:24:58.200 --> 00:24:58.210 align:start position:0% as of his writing and human action 00:24:58.210 --> 00:25:00.780 align:start position:0% as of his writing and human action elsewhere<00:24:59.110> in<00:24:59.200> his<00:24:59.320> career<00:24:59.650> by<00:24:59.799> the<00:24:59.830> way<00:25:00.100> he 00:25:00.780 --> 00:25:00.790 align:start position:0% elsewhere in his career by the way he 00:25:00.790 --> 00:25:02.280 align:start position:0% elsewhere in his career by the way he does<00:25:00.970> explicitly<00:25:01.540> call<00:25:01.750> for<00:25:01.990> legal 00:25:02.280 --> 00:25:02.290 align:start position:0% does explicitly call for legal 00:25:02.290 --> 00:25:03.210 align:start position:0% does explicitly call for legal requirement<00:25:02.860> of<00:25:02.919> a<00:25:02.950> hundred<00:25:03.160> percent 00:25:03.210 --> 00:25:03.220 align:start position:0% requirement of a hundred percent 00:25:03.220 --> 00:25:05.789 align:start position:0% requirement of a hundred percent reserves<00:25:03.700> all<00:25:04.480> right<00:25:04.600> so<00:25:04.780> just<00:25:05.020> to<00:25:05.290> show<00:25:05.740> you 00:25:05.789 --> 00:25:05.799 align:start position:0% reserves all right so just to show you 00:25:05.799 --> 00:25:08.310 align:start position:0% reserves all right so just to show you that<00:25:05.919> even<00:25:06.790> to<00:25:07.000> go<00:25:07.120> so<00:25:07.419> far<00:25:07.690> as<00:25:07.809> that<00:25:07.990> is 00:25:08.310 --> 00:25:08.320 align:start position:0% that even to go so far as that is 00:25:08.320 --> 00:25:10.380 align:start position:0% that even to go so far as that is something<00:25:08.799> that<00:25:08.890> Mises<00:25:09.280> dabbled<00:25:09.700> with<00:25:09.760> at<00:25:10.210> one 00:25:10.380 --> 00:25:10.390 align:start position:0% something that Mises dabbled with at one 00:25:10.390 --> 00:25:11.970 align:start position:0% something that Mises dabbled with at one point<00:25:10.570> in<00:25:10.720> his<00:25:10.809> career<00:25:11.020> where<00:25:11.260> he<00:25:11.830> thought 00:25:11.970 --> 00:25:11.980 align:start position:0% point in his career where he thought 00:25:11.980 --> 00:25:14.130 align:start position:0% point in his career where he thought that<00:25:12.130> was<00:25:12.280> the<00:25:12.309> only<00:25:12.429> way<00:25:12.669> to<00:25:12.730> ensure<00:25:12.910> a<00:25:13.450> sound 00:25:14.130 --> 00:25:14.140 align:start position:0% that was the only way to ensure a sound 00:25:14.140 --> 00:25:17.039 align:start position:0% that was the only way to ensure a sound money<00:25:14.500> but<00:25:15.190> for<00:25:16.150> the<00:25:16.210> passages<00:25:16.660> in<00:25:16.720> human 00:25:17.039 --> 00:25:17.049 align:start position:0% money but for the passages in human 00:25:17.049 --> 00:25:19.370 align:start position:0% money but for the passages in human action<00:25:17.380> it's<00:25:17.559> clear<00:25:18.010> what<00:25:18.309> he's<00:25:18.520> saying<00:25:18.850> is 00:25:19.370 --> 00:25:19.380 align:start position:0% action it's clear what he's saying is 00:25:19.380 --> 00:25:22.350 align:start position:0% action it's clear what he's saying is you<00:25:20.380> can't<00:25:20.710> trust<00:25:20.980> the<00:25:21.220> state<00:25:21.490> right<00:25:22.090> if<00:25:22.210> they 00:25:22.350 --> 00:25:22.360 align:start position:0% you can't trust the state right if they 00:25:22.360 --> 00:25:23.940 align:start position:0% you can't trust the state right if they even<00:25:22.600> if<00:25:22.750> they<00:25:22.870> insisted<00:25:23.470> on<00:25:23.559> a<00:25:23.620> hundred 00:25:23.940 --> 00:25:23.950 align:start position:0% even if they insisted on a hundred 00:25:23.950 --> 00:25:26.039 align:start position:0% even if they insisted on a hundred percent<00:25:24.040> reserve<00:25:24.490> requirement<00:25:25.179> the<00:25:25.809> next 00:25:26.039 --> 00:25:26.049 align:start position:0% percent reserve requirement the next 00:25:26.049 --> 00:25:27.539 align:start position:0% percent reserve requirement the next time<00:25:26.230> there's<00:25:26.410> a<00:25:26.470> major<00:25:26.710> war<00:25:27.070> and<00:25:27.280> they<00:25:27.370> want 00:25:27.539 --> 00:25:27.549 align:start position:0% time there's a major war and they want 00:25:27.549 --> 00:25:29.700 align:start position:0% time there's a major war and they want to<00:25:27.610> run<00:25:27.820> the<00:25:27.910> printing<00:25:28.210> press<00:25:28.500> they<00:25:29.500> would 00:25:29.700 --> 00:25:29.710 align:start position:0% to run the printing press they would 00:25:29.710 --> 00:25:31.440 align:start position:0% to run the printing press they would just<00:25:29.860> relax<00:25:30.190> that<00:25:30.309> requirement<00:25:30.790> and<00:25:31.210> so<00:25:31.330> they 00:25:31.440 --> 00:25:31.450 align:start position:0% just relax that requirement and so they 00:25:31.450 --> 00:25:32.760 align:start position:0% just relax that requirement and so they would<00:25:31.570> tell<00:25:31.720> the<00:25:31.840> banks<00:25:32.080> don't<00:25:32.200> worry<00:25:32.440> you<00:25:32.620> can 00:25:32.760 --> 00:25:32.770 align:start position:0% would tell the banks don't worry you can 00:25:32.770 --> 00:25:34.620 align:start position:0% would tell the banks don't worry you can go<00:25:32.890> ahead<00:25:32.980> and<00:25:33.190> you<00:25:33.400> know<00:25:33.490> issue<00:25:33.700> money<00:25:34.360> above 00:25:34.620 --> 00:25:34.630 align:start position:0% go ahead and you know issue money above 00:25:34.630 --> 00:25:35.820 align:start position:0% go ahead and you know issue money above and<00:25:34.809> beyond<00:25:35.049> what<00:25:35.230> you<00:25:35.320> haven't<00:25:35.559> you<00:25:35.740> know 00:25:35.820 --> 00:25:35.830 align:start position:0% and beyond what you haven't you know 00:25:35.830 --> 00:25:37.560 align:start position:0% and beyond what you haven't you know issue<00:25:35.980> credit<00:25:36.669> above<00:25:37.059> and<00:25:37.179> beyond<00:25:37.330> what<00:25:37.450> you 00:25:37.560 --> 00:25:37.570 align:start position:0% issue credit above and beyond what you 00:25:37.570 --> 00:25:39.419 align:start position:0% issue credit above and beyond what you have<00:25:37.750> from<00:25:38.350> savers<00:25:38.620> giving<00:25:39.010> you<00:25:39.070> in<00:25:39.190> the<00:25:39.280> vault 00:25:39.419 --> 00:25:39.429 align:start position:0% have from savers giving you in the vault 00:25:39.429 --> 00:25:41.970 align:start position:0% have from savers giving you in the vault go<00:25:39.730> ahead<00:25:40.210> and<00:25:40.330> do<00:25:40.419> that<00:25:40.540> it's<00:25:40.720> fine<00:25:40.929> so<00:25:41.290> his 00:25:41.970 --> 00:25:41.980 align:start position:0% go ahead and do that it's fine so his 00:25:41.980 --> 00:25:45.180 align:start position:0% go ahead and do that it's fine so his point<00:25:42.250> was<00:25:42.520> the<00:25:43.390> best<00:25:43.630> way<00:25:43.900> to<00:25:43.929> ensure<00:25:44.410> the 00:25:45.180 --> 00:25:45.190 align:start position:0% point was the best way to ensure the 00:25:45.190 --> 00:25:47.250 align:start position:0% point was the best way to ensure the long-run<00:25:45.700> stability<00:25:46.360> of<00:25:46.450> the<00:25:46.570> money<00:25:47.080> and 00:25:47.250 --> 00:25:47.260 align:start position:0% long-run stability of the money and 00:25:47.260 --> 00:25:48.750 align:start position:0% long-run stability of the money and banking<00:25:47.590> sector<00:25:47.980> and<00:25:48.160> to<00:25:48.190> prevent<00:25:48.580> the 00:25:48.750 --> 00:25:48.760 align:start position:0% banking sector and to prevent the 00:25:48.760 --> 00:25:51.120 align:start position:0% banking sector and to prevent the boom-bust<00:25:49.120> cycle<00:25:49.600> which<00:25:50.010> emanates<00:25:51.010> from 00:25:51.120 --> 00:25:51.130 align:start position:0% boom-bust cycle which emanates from 00:25:51.130 --> 00:25:53.700 align:start position:0% boom-bust cycle which emanates from fractional<00:25:51.760> reserve<00:25:51.970> banking<00:25:52.210> is<00:25:53.049> to<00:25:53.530> just 00:25:53.700 --> 00:25:53.710 align:start position:0% fractional reserve banking is to just 00:25:53.710 --> 00:25:54.960 align:start position:0% fractional reserve banking is to just not<00:25:53.830> have<00:25:54.010> the<00:25:54.040> government<00:25:54.220> get<00:25:54.520> involved<00:25:54.880> at 00:25:54.960 --> 00:25:54.970 align:start position:0% not have the government get involved at 00:25:54.970 --> 00:25:56.730 align:start position:0% not have the government get involved at all<00:25:55.059> because<00:25:55.330> Mises<00:25:55.780> thought<00:25:55.990> normal<00:25:56.380> market 00:25:56.730 --> 00:25:56.740 align:start position:0% all because Mises thought normal market 00:25:56.740 --> 00:26:00.180 align:start position:0% all because Mises thought normal market forces<00:25:57.150> would<00:25:58.150> constrain<00:25:58.750> banks<00:25:59.320> so<00:25:59.950> that<00:26:00.100> if 00:26:00.180 --> 00:26:00.190 align:start position:0% forces would constrain banks so that if 00:26:00.190 --> 00:26:02.940 align:start position:0% forces would constrain banks so that if any<00:26:00.340> one<00:26:00.610> bank<00:26:00.880> expanded<00:26:01.540> too<00:26:01.870> rapidly<00:26:02.320> by 00:26:02.940 --> 00:26:02.950 align:start position:0% any one bank expanded too rapidly by 00:26:02.950 --> 00:26:05.270 align:start position:0% any one bank expanded too rapidly by lowering<00:26:03.309> its<00:26:03.400> reserve<00:26:03.700> requirements<00:26:04.419> then 00:26:05.270 --> 00:26:05.280 align:start position:0% lowering its reserve requirements then 00:26:05.280 --> 00:26:09.360 align:start position:0% lowering its reserve requirements then there<00:26:06.280> would<00:26:06.429> be<00:26:07.350> adverse<00:26:08.350> clearing<00:26:08.950> with 00:26:09.360 --> 00:26:09.370 align:start position:0% there would be adverse clearing with 00:26:09.370 --> 00:26:11.970 align:start position:0% there would be adverse clearing with respect<00:26:10.090> to<00:26:10.150> the<00:26:10.270> other<00:26:10.390> banks<00:26:10.809> and<00:26:10.929> so<00:26:11.710> pretty 00:26:11.970 --> 00:26:11.980 align:start position:0% respect to the other banks and so pretty 00:26:11.980 --> 00:26:13.620 align:start position:0% respect to the other banks and so pretty soon<00:26:12.100> the<00:26:12.250> reserves<00:26:12.669> of<00:26:12.940> the<00:26:13.000> one<00:26:13.179> bank<00:26:13.450> that 00:26:13.620 --> 00:26:13.630 align:start position:0% soon the reserves of the one bank that 00:26:13.630 --> 00:26:15.630 align:start position:0% soon the reserves of the one bank that was<00:26:13.690> expanding<00:26:14.230> rapidly<00:26:14.380> so<00:26:15.220> let's<00:26:15.400> say<00:26:15.490> all 00:26:15.630 --> 00:26:15.640 align:start position:0% was expanding rapidly so let's say all 00:26:15.640 --> 00:26:17.940 align:start position:0% was expanding rapidly so let's say all the<00:26:15.790> banks<00:26:16.720> in<00:26:16.780> the<00:26:16.870> community<00:26:17.169> have<00:26:17.290> 95% 00:26:17.940 --> 00:26:17.950 align:start position:0% the banks in the community have 95% 00:26:17.950 --> 00:26:19.980 align:start position:0% the banks in the community have 95% reserves<00:26:18.580> and<00:26:18.880> then<00:26:19.390> one<00:26:19.570> bank<00:26:19.809> gets 00:26:19.980 --> 00:26:19.990 align:start position:0% reserves and then one bank gets 00:26:19.990 --> 00:26:20.610 align:start position:0% reserves and then one bank gets aggressive 00:26:20.610 --> 00:26:20.620 align:start position:0% aggressive 00:26:20.620 --> 00:26:22.529 align:start position:0% aggressive and<00:26:20.710> lowers<00:26:21.010> its<00:26:21.130> reserve<00:26:21.400> ratio<00:26:21.789> down<00:26:21.970> to<00:26:22.090> 50% 00:26:22.529 --> 00:26:22.539 align:start position:0% and lowers its reserve ratio down to 50% 00:26:22.539 --> 00:26:24.960 align:start position:0% and lowers its reserve ratio down to 50% so<00:26:23.049> it's<00:26:23.590> issuing<00:26:23.980> more<00:26:24.100> loans<00:26:24.400> it's<00:26:24.760> doing 00:26:24.960 --> 00:26:24.970 align:start position:0% so it's issuing more loans it's doing 00:26:24.970 --> 00:26:26.370 align:start position:0% so it's issuing more loans it's doing more<00:26:25.090> business<00:26:25.510> it's<00:26:25.659> earning<00:26:25.900> more<00:26:26.020> interest 00:26:26.370 --> 00:26:26.380 align:start position:0% more business it's earning more interest 00:26:26.380 --> 00:26:28.740 align:start position:0% more business it's earning more interest payments<00:26:26.830> so<00:26:27.400> that<00:26:27.520> looks<00:26:27.730> good<00:26:27.940> but<00:26:28.240> the 00:26:28.740 --> 00:26:28.750 align:start position:0% payments so that looks good but the 00:26:28.750 --> 00:26:30.600 align:start position:0% payments so that looks good but the point<00:26:29.049> is<00:26:29.200> that<00:26:29.380> banks<00:26:29.650> customers<00:26:30.279> now<00:26:30.400> they 00:26:30.600 --> 00:26:30.610 align:start position:0% point is that banks customers now they 00:26:30.610 --> 00:26:32.430 align:start position:0% point is that banks customers now they have<00:26:30.850> more<00:26:31.059> notes<00:26:31.390> in<00:26:31.809> their<00:26:32.110> possession 00:26:32.430 --> 00:26:32.440 align:start position:0% have more notes in their possession 00:26:32.440 --> 00:26:34.529 align:start position:0% have more notes in their possession other<00:26:32.830> things<00:26:33.130> equal<00:26:33.279> then<00:26:34.179> all<00:26:34.299> the<00:26:34.390> other 00:26:34.529 --> 00:26:34.539 align:start position:0% other things equal then all the other 00:26:34.539 --> 00:26:37.799 align:start position:0% other things equal then all the other banks<00:26:35.409> customers<00:26:36.070> do<00:26:36.279> so<00:26:37.090> in<00:26:37.240> the<00:26:37.330> course<00:26:37.630> of 00:26:37.799 --> 00:26:37.809 align:start position:0% banks customers do so in the course of 00:26:37.809 --> 00:26:39.240 align:start position:0% banks customers do so in the course of normal<00:26:38.169> operations<00:26:38.830> there's<00:26:39.039> going<00:26:39.130> to<00:26:39.190> be 00:26:39.240 --> 00:26:39.250 align:start position:0% normal operations there's going to be 00:26:39.250 --> 00:26:42.299 align:start position:0% normal operations there's going to be more<00:26:39.659> notes<00:26:40.659> issued<00:26:40.990> by<00:26:41.230> the<00:26:41.380> expanding<00:26:41.950> Bank 00:26:42.299 --> 00:26:42.309 align:start position:0% more notes issued by the expanding Bank 00:26:42.309 --> 00:26:44.460 align:start position:0% more notes issued by the expanding Bank than<00:26:42.669> all<00:26:42.789> the<00:26:42.909> other<00:26:43.059> ones<00:26:43.330> so<00:26:43.570> at<00:26:44.110> the<00:26:44.200> end<00:26:44.350> of 00:26:44.460 --> 00:26:44.470 align:start position:0% than all the other ones so at the end of 00:26:44.470 --> 00:26:46.110 align:start position:0% than all the other ones so at the end of the<00:26:44.529> week<00:26:44.710> or<00:26:44.890> the<00:26:44.980> month<00:26:45.010> when<00:26:45.700> the<00:26:45.820> bank's 00:26:46.110 --> 00:26:46.120 align:start position:0% the week or the month when the bank's 00:26:46.120 --> 00:26:48.029 align:start position:0% the week or the month when the bank's all<00:26:46.240> setup<00:26:46.480> with<00:26:46.750> each<00:26:46.870> other<00:26:47.110> the<00:26:47.860> other 00:26:48.029 --> 00:26:48.039 align:start position:0% all setup with each other the other 00:26:48.039 --> 00:26:50.190 align:start position:0% all setup with each other the other banks<00:26:48.429> are<00:26:48.490> gonna<00:26:48.610> have<00:26:48.789> more<00:26:48.970> claims<00:26:49.450> on<00:26:49.870> the 00:26:50.190 --> 00:26:50.200 align:start position:0% banks are gonna have more claims on the 00:26:50.200 --> 00:26:52.799 align:start position:0% banks are gonna have more claims on the expanding<00:26:50.770> Bank<00:26:50.980> than<00:26:51.220> vice<00:26:51.400> versa<00:26:51.520> and<00:26:52.059> so<00:26:52.600> on 00:26:52.799 --> 00:26:52.809 align:start position:0% expanding Bank than vice versa and so on 00:26:52.809 --> 00:26:54.480 align:start position:0% expanding Bank than vice versa and so on that<00:26:53.110> they're<00:26:53.649> gonna<00:26:53.770> say<00:26:53.919> okay<00:26:54.159> here<00:26:54.370> you 00:26:54.480 --> 00:26:54.490 align:start position:0% that they're gonna say okay here you 00:26:54.490 --> 00:26:56.549 align:start position:0% that they're gonna say okay here you know<00:26:54.580> we've<00:26:54.730> got<00:26:54.909> a<00:26:55.149> thousand<00:26:55.870> ounces<00:26:55.990> of<00:26:56.320> gold 00:26:56.549 --> 00:26:56.559 align:start position:0% know we've got a thousand ounces of gold 00:26:56.559 --> 00:26:59.519 align:start position:0% know we've got a thousand ounces of gold that<00:26:57.250> you<00:26:57.429> owe<00:26:57.460> us<00:26:57.580> and<00:26:58.120> we<00:26:58.750> only<00:26:58.929> owe<00:26:59.080> you<00:26:59.140> 200 00:26:59.519 --> 00:26:59.529 align:start position:0% that you owe us and we only owe you 200 00:26:59.529 --> 00:27:02.250 align:start position:0% that you owe us and we only owe you 200 ounces<00:26:59.860> of<00:27:00.159> gold<00:27:00.340> and<00:27:00.669> so<00:27:01.029> you<00:27:01.570> owe<00:27:01.600> us<00:27:01.750> on<00:27:02.049> that 00:27:02.250 --> 00:27:02.260 align:start position:0% ounces of gold and so you owe us on that 00:27:02.260 --> 00:27:04.350 align:start position:0% ounces of gold and so you owe us on that 800<00:27:02.710> ounces<00:27:02.830> so<00:27:03.340> go<00:27:03.460> ahead<00:27:03.520> and<00:27:03.610> settle<00:27:03.850> up<00:27:04.029> and 00:27:04.350 --> 00:27:04.360 align:start position:0% 800 ounces so go ahead and settle up and 00:27:04.360 --> 00:27:06.630 align:start position:0% 800 ounces so go ahead and settle up and so<00:27:05.020> the<00:27:05.110> point<00:27:05.289> is<00:27:05.500> that<00:27:05.679> the<00:27:05.890> genuine<00:27:06.429> money 00:27:06.630 --> 00:27:06.640 align:start position:0% so the point is that the genuine money 00:27:06.640 --> 00:27:08.340 align:start position:0% so the point is that the genuine money stock<00:27:07.090> would<00:27:07.360> flow<00:27:07.659> out<00:27:07.899> of<00:27:07.929> that<00:27:08.080> one 00:27:08.340 --> 00:27:08.350 align:start position:0% stock would flow out of that one 00:27:08.350 --> 00:27:10.710 align:start position:0% stock would flow out of that one expanding<00:27:08.860> bank's<00:27:09.130> vaults<00:27:09.549> in<00:27:10.210> the<00:27:10.360> other<00:27:10.510> so 00:27:10.710 --> 00:27:10.720 align:start position:0% expanding bank's vaults in the other so 00:27:10.720 --> 00:27:14.730 align:start position:0% expanding bank's vaults in the other so that's<00:27:10.899> why<00:27:11.520> in<00:27:12.539> equilibrium<00:27:13.570> no<00:27:14.080> single<00:27:14.529> bank 00:27:14.730 --> 00:27:14.740 align:start position:0% that's why in equilibrium no single bank 00:27:14.740 --> 00:27:16.500 align:start position:0% that's why in equilibrium no single bank can<00:27:14.980> expand<00:27:15.490> too<00:27:15.909> rapidly 00:27:16.500 --> 00:27:16.510 align:start position:0% can expand too rapidly 00:27:16.510 --> 00:27:19.830 align:start position:0% can expand too rapidly relative<00:27:17.320> to<00:27:17.890> its<00:27:18.070> peers<00:27:18.539> okay<00:27:19.539> and<00:27:19.720> so<00:27:19.809> that 00:27:19.830 --> 00:27:19.840 align:start position:0% relative to its peers okay and so that 00:27:19.840 --> 00:27:21.659 align:start position:0% relative to its peers okay and so that I've<00:27:20.080> shown<00:27:20.470> you<00:27:20.500> that<00:27:20.830> one<00:27:21.010> bank<00:27:21.250> can't<00:27:21.490> have 00:27:21.659 --> 00:27:21.669 align:start position:0% I've shown you that one bank can't have 00:27:21.669 --> 00:27:23.279 align:start position:0% I've shown you that one bank can't have significantly<00:27:22.179> lower<00:27:22.360> reserve<00:27:22.750> requirements 00:27:23.279 --> 00:27:23.289 align:start position:0% significantly lower reserve requirements 00:27:23.289 --> 00:27:25.470 align:start position:0% significantly lower reserve requirements than<00:27:23.409> everybody<00:27:23.590> else<00:27:23.919> but<00:27:24.789> now<00:27:24.909> why<00:27:25.149> can't 00:27:25.470 --> 00:27:25.480 align:start position:0% than everybody else but now why can't 00:27:25.480 --> 00:27:27.659 align:start position:0% than everybody else but now why can't all<00:27:25.600> the<00:27:25.750> bank's<00:27:26.020> just<00:27:26.110> as<00:27:26.260> a<00:27:26.289> cartel<00:27:26.799> agree<00:27:27.549> to 00:27:27.659 --> 00:27:27.669 align:start position:0% all the bank's just as a cartel agree to 00:27:27.669 --> 00:27:29.370 align:start position:0% all the bank's just as a cartel agree to inflate<00:27:28.120> well<00:27:28.809> as<00:27:28.929> long<00:27:29.080> as<00:27:29.200> it's<00:27:29.320> an 00:27:29.370 --> 00:27:29.380 align:start position:0% inflate well as long as it's an 00:27:29.380 --> 00:27:31.470 align:start position:0% inflate well as long as it's an unregulated<00:27:29.880> SEC<00:27:30.880> turning<00:27:31.179> or<00:27:31.270> just<00:27:31.390> like 00:27:31.470 --> 00:27:31.480 align:start position:0% unregulated SEC turning or just like 00:27:31.480 --> 00:27:33.810 align:start position:0% unregulated SEC turning or just like it's<00:27:31.630> as<00:27:31.720> open<00:27:31.990> as<00:27:32.080> opening<00:27:33.010> a<00:27:33.100> pizza<00:27:33.399> shop<00:27:33.580> or 00:27:33.810 --> 00:27:33.820 align:start position:0% it's as open as opening a pizza shop or 00:27:33.820 --> 00:27:34.260 align:start position:0% it's as open as opening a pizza shop or something 00:27:34.260 --> 00:27:34.270 align:start position:0% something 00:27:34.270 --> 00:27:36.149 align:start position:0% something somebody<00:27:34.870> else<00:27:35.020> can<00:27:35.169> set<00:27:35.350> up<00:27:35.440> a<00:27:35.529> bank<00:27:35.740> right<00:27:36.039> so 00:27:36.149 --> 00:27:36.159 align:start position:0% somebody else can set up a bank right so 00:27:36.159 --> 00:27:38.100 align:start position:0% somebody else can set up a bank right so if<00:27:36.220> all<00:27:36.399> the<00:27:36.549> existing<00:27:36.820> banks<00:27:37.360> collude<00:27:37.929> and 00:27:38.100 --> 00:27:38.110 align:start position:0% if all the existing banks collude and 00:27:38.110 --> 00:27:40.230 align:start position:0% if all the existing banks collude and get<00:27:38.260> together<00:27:38.380> and<00:27:38.830> say<00:27:39.399> let's<00:27:39.610> all<00:27:39.820> agree<00:27:40.000> to 00:27:40.230 --> 00:27:40.240 align:start position:0% get together and say let's all agree to 00:27:40.240 --> 00:27:42.630 align:start position:0% get together and say let's all agree to lower<00:27:40.450> reserve<00:27:40.779> requirements<00:27:41.289> the<00:27:41.350> 50%<00:27:42.039> will 00:27:42.630 --> 00:27:42.640 align:start position:0% lower reserve requirements the 50% will 00:27:42.640 --> 00:27:44.820 align:start position:0% lower reserve requirements the 50% will all<00:27:42.820> inflate<00:27:43.330> in<00:27:43.480> unison<00:27:43.929> and<00:27:44.200> so<00:27:44.710> our 00:27:44.820 --> 00:27:44.830 align:start position:0% all inflate in unison and so our 00:27:44.830 --> 00:27:46.590 align:start position:0% all inflate in unison and so our reserves<00:27:45.220> you<00:27:45.730> know<00:27:45.820> won't<00:27:46.059> get<00:27:46.210> drained<00:27:46.450> from 00:27:46.590 --> 00:27:46.600 align:start position:0% reserves you know won't get drained from 00:27:46.600 --> 00:27:47.700 align:start position:0% reserves you know won't get drained from each<00:27:46.779> other<00:27:46.990> because<00:27:47.169> well<00:27:47.320> I'll<00:27:47.409> do<00:27:47.559> it 00:27:47.700 --> 00:27:47.710 align:start position:0% each other because well I'll do it 00:27:47.710 --> 00:27:49.799 align:start position:0% each other because well I'll do it together<00:27:48.270> somebody<00:27:49.270> could<00:27:49.390> just<00:27:49.510> start<00:27:49.690> a<00:27:49.779> new 00:27:49.799 --> 00:27:49.809 align:start position:0% together somebody could just start a new 00:27:49.809 --> 00:27:52.350 align:start position:0% together somebody could just start a new bank<00:27:50.140> that<00:27:50.440> has<00:27:50.679> 60%<00:27:51.010> reserves<00:27:51.610> and<00:27:52.059> then<00:27:52.179> that 00:27:52.350 --> 00:27:52.360 align:start position:0% bank that has 60% reserves and then that 00:27:52.360 --> 00:27:54.090 align:start position:0% bank that has 60% reserves and then that bank<00:27:52.630> would<00:27:52.840> over<00:27:53.049> time<00:27:53.080> get<00:27:53.620> all<00:27:53.830> of<00:27:53.980> the 00:27:54.090 --> 00:27:54.100 align:start position:0% bank would over time get all of the 00:27:54.100 --> 00:27:56.039 align:start position:0% bank would over time get all of the reserves<00:27:54.460> from<00:27:55.240> the<00:27:55.390> other<00:27:55.539> ones<00:27:55.779> okay<00:27:55.990> so 00:27:56.039 --> 00:27:56.049 align:start position:0% reserves from the other ones okay so 00:27:56.049 --> 00:27:58.470 align:start position:0% reserves from the other ones okay so that's<00:27:56.350> that's<00:27:57.220> the<00:27:57.429> kind<00:27:57.610> of<00:27:57.730> logic<00:27:57.940> Mises 00:27:58.470 --> 00:27:58.480 align:start position:0% that's that's the kind of logic Mises 00:27:58.480 --> 00:27:59.909 align:start position:0% that's that's the kind of logic Mises had<00:27:58.630> in<00:27:58.779> mind<00:27:58.990> and<00:27:59.260> so<00:27:59.320> that's<00:27:59.500> why<00:27:59.620> he<00:27:59.799> was 00:27:59.909 --> 00:27:59.919 align:start position:0% had in mind and so that's why he was 00:27:59.919 --> 00:28:01.649 align:start position:0% had in mind and so that's why he was saying<00:28:00.190> as<00:28:00.370> a<00:28:00.399> practical<00:28:00.490> matter<00:28:01.210> the<00:28:01.419> best 00:28:01.649 --> 00:28:01.659 align:start position:0% saying as a practical matter the best 00:28:01.659 --> 00:28:05.370 align:start position:0% saying as a practical matter the best way<00:28:01.929> to<00:28:02.820> constrain<00:28:03.820> the<00:28:03.850> practice<00:28:04.659> of<00:28:04.870> issuing 00:28:05.370 --> 00:28:05.380 align:start position:0% way to constrain the practice of issuing 00:28:05.380 --> 00:28:07.740 align:start position:0% way to constrain the practice of issuing fiduciary<00:28:06.279> media<00:28:06.669> or<00:28:07.029> to<00:28:07.240> keep<00:28:07.390> reserve 00:28:07.740 --> 00:28:07.750 align:start position:0% fiduciary media or to keep reserve 00:28:07.750 --> 00:28:11.010 align:start position:0% fiduciary media or to keep reserve requirements<00:28:08.409> high<00:28:09.279> is<00:28:09.669> to<00:28:10.600> not<00:28:10.779> have<00:28:10.809> the 00:28:11.010 --> 00:28:11.020 align:start position:0% requirements high is to not have the 00:28:11.020 --> 00:28:12.149 align:start position:0% requirements high is to not have the government<00:28:11.350> be<00:28:11.440> involved<00:28:11.679> with<00:28:11.830> it<00:28:11.919> at<00:28:12.039> all 00:28:12.149 --> 00:28:12.159 align:start position:0% government be involved with it at all 00:28:12.159 --> 00:28:13.740 align:start position:0% government be involved with it at all just<00:28:12.190> leave<00:28:12.549> it<00:28:12.700> to<00:28:12.789> genuine<00:28:13.179> market<00:28:13.480> forces 00:28:13.740 --> 00:28:13.750 align:start position:0% just leave it to genuine market forces 00:28:13.750 --> 00:28:15.360 align:start position:0% just leave it to genuine market forces because<00:28:13.990> he<00:28:14.110> thought<00:28:14.320> competition<00:28:15.220> would 00:28:15.360 --> 00:28:15.370 align:start position:0% because he thought competition would 00:28:15.370 --> 00:28:18.389 align:start position:0% because he thought competition would quickly<00:28:16.200> penalize<00:28:17.200> any<00:28:17.590> one<00:28:17.890> bank<00:28:18.130> that<00:28:18.250> tried 00:28:18.389 --> 00:28:18.399 align:start position:0% quickly penalize any one bank that tried 00:28:18.399 --> 00:28:19.889 align:start position:0% quickly penalize any one bank that tried to<00:28:18.429> expand<00:28:18.850> too<00:28:19.000> rapidly<00:28:19.480> okay 00:28:19.889 --> 00:28:19.899 align:start position:0% to expand too rapidly okay 00:28:19.899 --> 00:28:23.340 align:start position:0% to expand too rapidly okay notice<00:28:20.590> how<00:28:21.130> central<00:28:21.610> banks<00:28:22.000> do<00:28:22.779> the<00:28:22.899> opposite 00:28:23.340 --> 00:28:23.350 align:start position:0% notice how central banks do the opposite 00:28:23.350 --> 00:28:25.080 align:start position:0% notice how central banks do the opposite of<00:28:23.440> what<00:28:23.500> they're<00:28:23.679> supposed<00:28:23.919> to<00:28:24.010> do<00:28:24.190> what 00:28:25.080 --> 00:28:25.090 align:start position:0% of what they're supposed to do what 00:28:25.090 --> 00:28:27.060 align:start position:0% of what they're supposed to do what would<00:28:25.270> check<00:28:25.570> that's<00:28:25.840> that's<00:28:26.200> feedback 00:28:27.060 --> 00:28:27.070 align:start position:0% would check that's that's feedback 00:28:27.070 --> 00:28:28.169 align:start position:0% would check that's that's feedback mechanism<00:28:27.580> I<00:28:27.610> just<00:28:27.789> walked<00:28:28.000> you<00:28:28.090> through 00:28:28.169 --> 00:28:28.179 align:start position:0% mechanism I just walked you through 00:28:28.179 --> 00:28:31.860 align:start position:0% mechanism I just walked you through where<00:28:29.080> if<00:28:29.200> all<00:28:29.440> the<00:28:29.590> banks<00:28:30.450> collude<00:28:31.450> together 00:28:31.860 --> 00:28:31.870 align:start position:0% where if all the banks collude together 00:28:31.870 --> 00:28:33.840 align:start position:0% where if all the banks collude together you<00:28:32.649> could<00:28:32.740> just<00:28:32.919> start<00:28:33.100> up<00:28:33.190> a<00:28:33.250> new<00:28:33.280> bank<00:28:33.580> well 00:28:33.840 --> 00:28:33.850 align:start position:0% you could just start up a new bank well 00:28:33.850 --> 00:28:34.510 align:start position:0% you could just start up a new bank well what<00:28:34.179> if 00:28:34.510 --> 00:28:34.520 align:start position:0% what if 00:28:34.520 --> 00:28:37.090 align:start position:0% what if it's<00:28:35.390> hard<00:28:35.630> to<00:28:35.690> open<00:28:35.840> a<00:28:36.020> bank<00:28:36.230> right<00:28:36.740> right<00:28:36.950> now 00:28:37.090 --> 00:28:37.100 align:start position:0% it's hard to open a bank right right now 00:28:37.100 --> 00:28:38.410 align:start position:0% it's hard to open a bank right right now it's<00:28:37.280> you<00:28:37.430> can't<00:28:37.610> just<00:28:37.730> open<00:28:37.790> a<00:28:38.000> bank<00:28:38.210> that's 00:28:38.410 --> 00:28:38.420 align:start position:0% it's you can't just open a bank that's 00:28:38.420 --> 00:28:39.580 align:start position:0% it's you can't just open a bank that's that<00:28:38.720> there's<00:28:38.930> all<00:28:39.020> sorts<00:28:39.260> of<00:28:39.320> regulations 00:28:39.580 --> 00:28:39.590 align:start position:0% that there's all sorts of regulations 00:28:39.590 --> 00:28:41.800 align:start position:0% that there's all sorts of regulations you<00:28:39.980> have<00:28:40.130> to<00:28:40.220> jump<00:28:40.580> through<00:28:40.730> so<00:28:41.420> that's<00:28:41.570> the 00:28:41.800 --> 00:28:41.810 align:start position:0% you have to jump through so that's the 00:28:41.810 --> 00:28:43.920 align:start position:0% you have to jump through so that's the way<00:28:41.900> they<00:28:42.050> limit<00:28:42.350> competition<00:28:42.500> and<00:28:43.130> the<00:28:43.700> other 00:28:43.920 --> 00:28:43.930 align:start position:0% way they limit competition and the other 00:28:43.930 --> 00:28:48.070 align:start position:0% way they limit competition and the other problem<00:28:44.930> with<00:28:46.030> expanding<00:28:47.030> too<00:28:47.150> rapidly<00:28:47.600> is<00:28:47.870> if 00:28:48.070 --> 00:28:48.080 align:start position:0% problem with expanding too rapidly is if 00:28:48.080 --> 00:28:49.480 align:start position:0% problem with expanding too rapidly is if there's<00:28:48.500> a<00:28:48.560> run<00:28:48.800> you<00:28:49.010> get<00:28:49.100> caught<00:28:49.310> with<00:28:49.460> your 00:28:49.480 --> 00:28:49.490 align:start position:0% there's a run you get caught with your 00:28:49.490 --> 00:28:51.820 align:start position:0% there's a run you get caught with your pants<00:28:49.790> down<00:28:49.910> and<00:28:50.360> so<00:28:51.170> what<00:28:51.350> does<00:28:51.440> the<00:28:51.560> central 00:28:51.820 --> 00:28:51.830 align:start position:0% pants down and so what does the central 00:28:51.830 --> 00:28:55.060 align:start position:0% pants down and so what does the central bank<00:28:52.100> do<00:28:52.310> it's<00:28:52.690> the<00:28:53.690> primary<00:28:54.020> reason<00:28:54.560> for<00:28:54.710> its 00:28:55.060 --> 00:28:55.070 align:start position:0% bank do it's the primary reason for its 00:28:55.070 --> 00:28:56.770 align:start position:0% bank do it's the primary reason for its existence<00:28:55.190> is<00:28:55.760> what<00:28:55.940> it's<00:28:56.120> a<00:28:56.240> lender<00:28:56.600> of<00:28:56.630> last 00:28:56.770 --> 00:28:56.780 align:start position:0% existence is what it's a lender of last 00:28:56.780 --> 00:29:00.100 align:start position:0% existence is what it's a lender of last resort<00:28:57.370> that's<00:28:58.370> what<00:28:58.640> it<00:28:58.730> says<00:28:59.060> it's<00:28:59.240> doing<00:28:59.600> so 00:29:00.100 --> 00:29:00.110 align:start position:0% resort that's what it says it's doing so 00:29:00.110 --> 00:29:01.450 align:start position:0% resort that's what it says it's doing so just<00:29:00.140> think<00:29:00.500> through<00:29:00.650> what<00:29:00.770> that<00:29:00.950> means<00:29:01.190> that 00:29:01.450 --> 00:29:01.460 align:start position:0% just think through what that means that 00:29:01.460 --> 00:29:03.790 align:start position:0% just think through what that means that means<00:29:01.580> when<00:29:01.850> private<00:29:02.150> banks<00:29:02.780> get<00:29:03.590> into 00:29:03.790 --> 00:29:03.800 align:start position:0% means when private banks get into 00:29:03.800 --> 00:29:07.510 align:start position:0% means when private banks get into trouble<00:29:04.220> and<00:29:04.400> they're<00:29:05.210> illiquid<00:29:05.660> right<00:29:06.650> then 00:29:07.510 --> 00:29:07.520 align:start position:0% trouble and they're illiquid right then 00:29:07.520 --> 00:29:09.100 align:start position:0% trouble and they're illiquid right then the<00:29:07.670> central<00:29:07.910> bank<00:29:08.150> comes<00:29:08.390> in<00:29:08.600> and<00:29:08.750> rescues 00:29:09.100 --> 00:29:09.110 align:start position:0% the central bank comes in and rescues 00:29:09.110 --> 00:29:11.650 align:start position:0% the central bank comes in and rescues them<00:29:09.290> so<00:29:09.890> again<00:29:10.040> the<00:29:10.370> very<00:29:10.610> things<00:29:10.970> that<00:29:11.120> Mises 00:29:11.650 --> 00:29:11.660 align:start position:0% them so again the very things that Mises 00:29:11.660 --> 00:29:13.770 align:start position:0% them so again the very things that Mises thought<00:29:11.840> in<00:29:11.990> the<00:29:12.080> market<00:29:12.560> would<00:29:13.160> penalize 00:29:13.770 --> 00:29:13.780 align:start position:0% thought in the market would penalize 00:29:13.780 --> 00:29:16.090 align:start position:0% thought in the market would penalize overly<00:29:14.780> aggressive<00:29:15.200> expansion<00:29:15.710> on<00:29:15.800> the<00:29:15.830> part 00:29:16.090 --> 00:29:16.100 align:start position:0% overly aggressive expansion on the part 00:29:16.100 --> 00:29:17.800 align:start position:0% overly aggressive expansion on the part of<00:29:16.160> the<00:29:16.220> banks<00:29:16.610> that's<00:29:17.210> what<00:29:17.420> the<00:29:17.510> central 00:29:17.800 --> 00:29:17.810 align:start position:0% of the banks that's what the central 00:29:17.810 --> 00:29:21.340 align:start position:0% of the banks that's what the central bank<00:29:17.900> by<00:29:18.200> its<00:29:18.350> very<00:29:18.500> nature<00:29:20.080> dismantles<00:29:21.080> or 00:29:21.340 --> 00:29:21.350 align:start position:0% bank by its very nature dismantles or 00:29:21.350 --> 00:29:23.890 align:start position:0% bank by its very nature dismantles or minimizes<00:29:22.190> okay<00:29:22.640> so<00:29:22.700> you<00:29:23.000> see<00:29:23.480> how<00:29:23.630> it's<00:29:23.780> the 00:29:23.890 --> 00:29:23.900 align:start position:0% minimizes okay so you see how it's the 00:29:23.900 --> 00:29:25.810 align:start position:0% minimizes okay so you see how it's the opposite<00:29:24.590> of<00:29:24.650> what<00:29:24.800> you<00:29:24.920> think<00:29:25.100> that<00:29:25.280> the 00:29:25.810 --> 00:29:25.820 align:start position:0% opposite of what you think that the 00:29:25.820 --> 00:29:27.360 align:start position:0% opposite of what you think that the public<00:29:26.150> has<00:29:26.270> been<00:29:26.420> taught<00:29:26.600> the<00:29:26.750> central<00:29:27.110> bank 00:29:27.360 --> 00:29:27.370 align:start position:0% public has been taught the central bank 00:29:27.370 --> 00:29:29.740 align:start position:0% public has been taught the central bank weeds<00:29:28.370> out<00:29:28.640> you<00:29:29.060> know<00:29:29.150> fly-by-night 00:29:29.740 --> 00:29:29.750 align:start position:0% weeds out you know fly-by-night 00:29:29.750 --> 00:29:32.470 align:start position:0% weeds out you know fly-by-night organizations<00:29:30.380> and<00:29:30.530> keeps<00:29:30.710> the<00:29:30.830> public<00:29:31.480> using 00:29:32.470 --> 00:29:32.480 align:start position:0% organizations and keeps the public using 00:29:32.480 --> 00:29:33.790 align:start position:0% organizations and keeps the public using sound<00:29:32.750> currency<00:29:33.020> when<00:29:33.350> it's<00:29:33.470> the<00:29:33.560> other<00:29:33.680> way 00:29:33.790 --> 00:29:33.800 align:start position:0% sound currency when it's the other way 00:29:33.800 --> 00:29:37.180 align:start position:0% sound currency when it's the other way around<00:29:34.210> but<00:29:35.210> in<00:29:35.360> terms<00:29:35.570> of<00:29:35.690> this<00:29:35.780> debate<00:29:36.190> what 00:29:37.180 --> 00:29:37.190 align:start position:0% around but in terms of this debate what 00:29:37.190 --> 00:29:39.160 align:start position:0% around but in terms of this debate what I'm<00:29:37.280> saying<00:29:37.550> is<00:29:37.730> certainly<00:29:38.510> in<00:29:38.630> human<00:29:38.900> action 00:29:39.160 --> 00:29:39.170 align:start position:0% I'm saying is certainly in human action 00:29:39.170 --> 00:29:40.600 align:start position:0% I'm saying is certainly in human action the<00:29:39.290> other<00:29:39.380> ones<00:29:39.620> that<00:29:39.740> have<00:29:39.830> been<00:29:39.860> brought<00:29:40.460> to 00:29:40.600 --> 00:29:40.610 align:start position:0% the other ones that have been brought to 00:29:40.610 --> 00:29:43.840 align:start position:0% the other ones that have been brought to my<00:29:40.730> attention<00:29:41.050> when<00:29:42.050> Mises<00:29:42.590> at<00:29:42.920> times<00:29:43.250> praises 00:29:43.840 --> 00:29:43.850 align:start position:0% my attention when Mises at times praises 00:29:43.850 --> 00:29:46.390 align:start position:0% my attention when Mises at times praises free<00:29:44.120> banking<00:29:44.630> it's<00:29:45.560> not<00:29:45.830> because<00:29:46.190> he's 00:29:46.390 --> 00:29:46.400 align:start position:0% free banking it's not because he's 00:29:46.400 --> 00:29:48.190 align:start position:0% free banking it's not because he's saying<00:29:46.640> fractional<00:29:47.390> reserve<00:29:47.630> banking<00:29:47.870> is 00:29:48.190 --> 00:29:48.200 align:start position:0% saying fractional reserve banking is 00:29:48.200 --> 00:29:51.130 align:start position:0% saying fractional reserve banking is actually<00:29:48.590> benign<00:29:48.980> in<00:29:49.690> and<00:29:50.690> promotes 00:29:51.130 --> 00:29:51.140 align:start position:0% actually benign in and promotes 00:29:51.140 --> 00:29:53.230 align:start position:0% actually benign in and promotes coordination<00:29:52.130> and<00:29:52.250> the<00:29:52.340> loan<00:29:52.490> markets<00:29:53.000> that's 00:29:53.230 --> 00:29:53.240 align:start position:0% coordination and the loan markets that's 00:29:53.240 --> 00:29:54.310 align:start position:0% coordination and the loan markets that's not<00:29:53.390> what<00:29:53.510> he's<00:29:53.630> saying<00:29:53.660> he's<00:29:53.960> just<00:29:54.020> saying 00:29:54.310 --> 00:29:54.320 align:start position:0% not what he's saying he's just saying 00:29:54.320 --> 00:29:56.500 align:start position:0% not what he's saying he's just saying that<00:29:54.470> that's<00:29:54.620> the<00:29:54.770> best<00:29:54.950> way<00:29:55.070> practically<00:29:55.790> - 00:29:56.500 --> 00:29:56.510 align:start position:0% that that's the best way practically - 00:29:56.510 --> 00:29:57.970 align:start position:0% that that's the best way practically - in<00:29:57.020> other<00:29:57.140> words<00:29:57.230> don't<00:29:57.590> trust<00:29:57.830> the 00:29:57.970 --> 00:29:57.980 align:start position:0% in other words don't trust the 00:29:57.980 --> 00:30:00.430 align:start position:0% in other words don't trust the government<00:29:58.130> to<00:29:58.640> maintain<00:29:59.420> 100%<00:29:59.720> reserves 00:30:00.430 --> 00:30:00.440 align:start position:0% government to maintain 100% reserves 00:30:00.440 --> 00:30:02.580 align:start position:0% government to maintain 100% reserves because<00:30:00.770> you<00:30:00.950> can't<00:30:01.370> trust<00:30:01.490> them<00:30:01.700> to<00:30:01.820> do<00:30:01.940> that 00:30:02.580 --> 00:30:02.590 align:start position:0% because you can't trust them to do that 00:30:02.590 --> 00:30:04.840 align:start position:0% because you can't trust them to do that okay<00:30:03.590> the<00:30:03.740> one<00:30:04.130> last<00:30:04.340> thing<00:30:04.490> I'll<00:30:04.640> say<00:30:04.670> this 00:30:04.840 --> 00:30:04.850 align:start position:0% okay the one last thing I'll say this 00:30:04.850 --> 00:30:07.690 align:start position:0% okay the one last thing I'll say this before<00:30:05.060> moving<00:30:05.390> on<00:30:05.600> is<00:30:06.040> it<00:30:07.040> gets<00:30:07.280> a<00:30:07.370> little<00:30:07.490> bit 00:30:07.690 --> 00:30:07.700 align:start position:0% before moving on is it gets a little bit 00:30:07.700 --> 00:30:10.930 align:start position:0% before moving on is it gets a little bit subtle<00:30:08.060> but<00:30:08.210> Mises<00:30:08.630> does<00:30:08.900> at<00:30:09.170> times<00:30:09.940> admit 00:30:10.930 --> 00:30:10.940 align:start position:0% subtle but Mises does at times admit 00:30:10.940 --> 00:30:12.970 align:start position:0% subtle but Mises does at times admit that<00:30:11.240> if<00:30:11.960> it<00:30:12.200> weren't<00:30:12.380> for<00:30:12.500> fractional 00:30:12.970 --> 00:30:12.980 align:start position:0% that if it weren't for fractional 00:30:12.980 --> 00:30:14.740 align:start position:0% that if it weren't for fractional reserve<00:30:13.280> banking<00:30:13.520> the<00:30:13.880> purchasing<00:30:14.420> power<00:30:14.600> of 00:30:14.740 --> 00:30:14.750 align:start position:0% reserve banking the purchasing power of 00:30:14.750 --> 00:30:17.230 align:start position:0% reserve banking the purchasing power of money<00:30:15.020> would<00:30:15.320> have<00:30:15.410> risen<00:30:15.680> rapidly<00:30:16.240> at 00:30:17.230 --> 00:30:17.240 align:start position:0% money would have risen rapidly at 00:30:17.240 --> 00:30:18.730 align:start position:0% money would have risen rapidly at certain<00:30:17.510> points<00:30:17.810> in<00:30:17.900> history<00:30:18.050> like<00:30:18.290> as<00:30:18.530> more 00:30:18.730 --> 00:30:18.740 align:start position:0% certain points in history like as more 00:30:18.740 --> 00:30:21.490 align:start position:0% certain points in history like as more people<00:30:19.070> started<00:30:19.370> using<00:30:19.460> gold<00:30:20.110> over<00:30:21.110> the<00:30:21.230> you 00:30:21.490 --> 00:30:21.500 align:start position:0% people started using gold over the you 00:30:21.500 --> 00:30:23.980 align:start position:0% people started using gold over the you know<00:30:21.590> over<00:30:21.620> the<00:30:21.890> earth<00:30:22.070> that<00:30:22.660> that<00:30:23.660> would<00:30:23.870> have 00:30:23.980 --> 00:30:23.990 align:start position:0% know over the earth that that would have 00:30:23.990 --> 00:30:25.630 align:start position:0% know over the earth that that would have increased<00:30:24.350> the<00:30:24.560> purchasing<00:30:24.980> power<00:30:25.130> of<00:30:25.430> gold 00:30:25.630 --> 00:30:25.640 align:start position:0% increased the purchasing power of gold 00:30:25.640 --> 00:30:27.460 align:start position:0% increased the purchasing power of gold so<00:30:25.790> there<00:30:25.970> would<00:30:26.090> have<00:30:26.180> been<00:30:26.270> price<00:30:26.960> deflation 00:30:27.460 --> 00:30:27.470 align:start position:0% so there would have been price deflation 00:30:27.470 --> 00:30:30.610 align:start position:0% so there would have been price deflation measured<00:30:28.100> in<00:30:28.250> gold<00:30:28.430> ounces<00:30:29.110> except<00:30:30.110> for<00:30:30.350> the 00:30:30.610 --> 00:30:30.620 align:start position:0% measured in gold ounces except for the 00:30:30.620 --> 00:30:32.140 align:start position:0% measured in gold ounces except for the credit<00:30:30.950> expansion<00:30:31.280> that<00:30:31.580> fraction<00:30:31.910> reserve 00:30:32.140 --> 00:30:32.150 align:start position:0% credit expansion that fraction reserve 00:30:32.150 --> 00:30:35.380 align:start position:0% credit expansion that fraction reserve banking<00:30:32.540> offered<00:30:32.900> so<00:30:33.280> it<00:30:34.280> best<00:30:34.640> you<00:30:34.820> can<00:30:35.090> put 00:30:35.380 --> 00:30:35.390 align:start position:0% banking offered so it best you can put 00:30:35.390 --> 00:30:37.180 align:start position:0% banking offered so it best you can put that<00:30:35.600> as<00:30:35.780> one<00:30:35.990> of<00:30:36.020> the<00:30:36.200> things<00:30:36.440> in<00:30:36.650> favor<00:30:36.950> of 00:30:37.180 --> 00:30:37.190 align:start position:0% that as one of the things in favor of 00:30:37.190 --> 00:30:38.950 align:start position:0% that as one of the things in favor of fractional<00:30:37.550> reserve<00:30:37.610> banking<00:30:38.210> to<00:30:38.450> be<00:30:38.570> held<00:30:38.810> up 00:30:38.950 --> 00:30:38.960 align:start position:0% fractional reserve banking to be held up 00:30:38.960 --> 00:30:40.810 align:start position:0% fractional reserve banking to be held up against<00:30:39.440> the<00:30:39.980> fact<00:30:40.190> that<00:30:40.280> it<00:30:40.430> causes<00:30:40.610> the 00:30:40.810 --> 00:30:40.820 align:start position:0% against the fact that it causes the 00:30:40.820 --> 00:30:42.660 align:start position:0% against the fact that it causes the business<00:30:41.180> cycle<00:30:41.360> so<00:30:41.630> I<00:30:41.660> still<00:30:42.050> have<00:30:42.230> not<00:30:42.320> seen 00:30:42.660 --> 00:30:42.670 align:start position:0% business cycle so I still have not seen 00:30:42.670 --> 00:30:45.280 align:start position:0% business cycle so I still have not seen anybody<00:30:43.670> showing<00:30:44.180> me<00:30:44.270> quotes<00:30:44.540> from<00:30:44.840> Mises 00:30:45.280 --> 00:30:45.290 align:start position:0% anybody showing me quotes from Mises 00:30:45.290 --> 00:30:46.600 align:start position:0% anybody showing me quotes from Mises saying<00:30:45.620> that<00:30:45.800> doesn't<00:30:46.040> cause<00:30:46.160> the<00:30:46.280> business 00:30:46.600 --> 00:30:46.610 align:start position:0% saying that doesn't cause the business 00:30:46.610 --> 00:30:48.700 align:start position:0% saying that doesn't cause the business cycle<00:30:46.990> incidentally 00:30:48.700 --> 00:30:48.710 align:start position:0% cycle incidentally 00:30:48.710 --> 00:30:50.139 align:start position:0% cycle incidentally maybe<00:30:49.010> Mises<00:30:49.370> was<00:30:49.490> wrong<00:30:49.730> right<00:30:49.940> so<00:30:50.029> this 00:30:50.139 --> 00:30:50.149 align:start position:0% maybe Mises was wrong right so this 00:30:50.149 --> 00:30:51.789 align:start position:0% maybe Mises was wrong right so this isn't<00:30:50.330> a<00:30:50.600> definitive<00:30:50.960> knockdown<00:30:51.620> argument 00:30:51.789 --> 00:30:51.799 align:start position:0% isn't a definitive knockdown argument 00:30:51.799 --> 00:30:54.639 align:start position:0% isn't a definitive knockdown argument but<00:30:52.279> my<00:30:52.429> point<00:30:52.730> is<00:30:53.000> it's<00:30:53.870> not<00:30:54.049> merely<00:30:54.380> some 00:30:54.639 --> 00:30:54.649 align:start position:0% but my point is it's not merely some 00:30:54.649 --> 00:30:55.899 align:start position:0% but my point is it's not merely some crank<00:30:54.980> --is--<00:30:55.159> thing<00:30:55.399> that<00:30:55.520> murray<00:30:55.669> rothbard 00:30:55.899 --> 00:30:55.909 align:start position:0% crank --is-- thing that murray rothbard 00:30:55.909 --> 00:30:57.700 align:start position:0% crank --is-- thing that murray rothbard believed<00:30:56.539> that<00:30:56.720> the<00:30:56.899> the<00:30:57.169> position<00:30:57.590> that 00:30:57.700 --> 00:30:57.710 align:start position:0% believed that the the position that 00:30:57.710 --> 00:31:00.850 align:start position:0% believed that the the position that salerno's<00:30:58.250> advancing<00:30:59.240> here<00:30:59.510> that<00:31:00.260> fractional 00:31:00.850 --> 00:31:00.860 align:start position:0% salerno's advancing here that fractional 00:31:00.860 --> 00:31:02.769 align:start position:0% salerno's advancing here that fractional reserve<00:31:01.100> banking<00:31:01.340> per<00:31:01.789> se<00:31:02.120> is<00:31:02.360> what<00:31:02.510> causes 00:31:02.769 --> 00:31:02.779 align:start position:0% reserve banking per se is what causes 00:31:02.779 --> 00:31:04.960 align:start position:0% reserve banking per se is what causes the<00:31:03.049> Austrian<00:31:03.529> boom-bust<00:31:03.919> cycle<00:31:04.309> with 00:31:04.960 --> 00:31:04.970 align:start position:0% the Austrian boom-bust cycle with 00:31:04.970 --> 00:31:07.240 align:start position:0% the Austrian boom-bust cycle with something<00:31:05.419> that<00:31:05.690> Mises<00:31:06.620> himself<00:31:07.070> I<00:31:07.190> think 00:31:07.240 --> 00:31:07.250 align:start position:0% something that Mises himself I think 00:31:07.250 --> 00:31:10.180 align:start position:0% something that Mises himself I think pretty<00:31:07.580> clearly<00:31:08.380> developed<00:31:09.380> and<00:31:09.710> believed<00:31:09.980> in 00:31:10.180 --> 00:31:10.190 align:start position:0% pretty clearly developed and believed in 00:31:10.190 --> 00:31:12.610 align:start position:0% pretty clearly developed and believed in and<00:31:10.460> since<00:31:11.149> Mises<00:31:11.630> developed<00:31:12.230> Austrian 00:31:12.610 --> 00:31:12.620 align:start position:0% and since Mises developed Austrian 00:31:12.620 --> 00:31:13.779 align:start position:0% and since Mises developed Austrian business<00:31:12.710> cycle<00:31:12.950> theory<00:31:13.340> that's<00:31:13.549> a<00:31:13.640> pretty 00:31:13.779 --> 00:31:13.789 align:start position:0% business cycle theory that's a pretty 00:31:13.789 --> 00:31:15.549 align:start position:0% business cycle theory that's a pretty good<00:31:14.000> indication<00:31:14.450> that<00:31:14.630> you<00:31:15.260> know<00:31:15.320> the<00:31:15.440> two 00:31:15.549 --> 00:31:15.559 align:start position:0% good indication that you know the two 00:31:15.559 --> 00:31:18.669 align:start position:0% good indication that you know the two are<00:31:15.679> linked<00:31:16.750> okay<00:31:17.750> so<00:31:17.809> what<00:31:18.140> is<00:31:18.260> the<00:31:18.440> free 00:31:18.669 --> 00:31:18.679 align:start position:0% are linked okay so what is the free 00:31:18.679 --> 00:31:21.490 align:start position:0% are linked okay so what is the free banker<00:31:19.039> response<00:31:19.580> on<00:31:19.940> this<00:31:20.570> this<00:31:21.260> type<00:31:21.470> of 00:31:21.490 --> 00:31:21.500 align:start position:0% banker response on this this type of 00:31:21.500 --> 00:31:25.210 align:start position:0% banker response on this this type of issue<00:31:21.760> so<00:31:23.260> Celgene<00:31:24.260> at<00:31:24.470> all<00:31:24.590> they<00:31:24.799> argue<00:31:25.190> that 00:31:25.210 --> 00:31:25.220 align:start position:0% issue so Celgene at all they argue that 00:31:25.220 --> 00:31:28.000 align:start position:0% issue so Celgene at all they argue that under<00:31:25.490> free<00:31:25.700> banking<00:31:26.440> it's<00:31:27.440> a<00:31:27.529> pretty<00:31:27.710> subtle 00:31:28.000 --> 00:31:28.010 align:start position:0% under free banking it's a pretty subtle 00:31:28.010 --> 00:31:30.430 align:start position:0% under free banking it's a pretty subtle point<00:31:28.370> and<00:31:28.669> and<00:31:29.179> so<00:31:29.360> if<00:31:29.600> you're<00:31:29.779> really<00:31:30.049> into 00:31:30.430 --> 00:31:30.440 align:start position:0% point and and so if you're really into 00:31:30.440 --> 00:31:32.049 align:start position:0% point and and so if you're really into this<00:31:30.559> stuff<00:31:30.620> I<00:31:30.919> encourage<00:31:31.309> you<00:31:31.429> to<00:31:31.460> read<00:31:31.909> out 00:31:32.049 --> 00:31:32.059 align:start position:0% this stuff I encourage you to read out 00:31:32.059 --> 00:31:34.000 align:start position:0% this stuff I encourage you to read out and<00:31:32.240> this<00:31:32.390> literature<00:31:32.750> and<00:31:33.110> see<00:31:33.740> it<00:31:33.830> because 00:31:34.000 --> 00:31:34.010 align:start position:0% and this literature and see it because 00:31:34.010 --> 00:31:36.519 align:start position:0% and this literature and see it because this<00:31:34.159> was<00:31:34.340> more<00:31:34.610> nuanced<00:31:35.419> than<00:31:35.659> I<00:31:36.320> initially 00:31:36.519 --> 00:31:36.529 align:start position:0% this was more nuanced than I initially 00:31:36.529 --> 00:31:38.590 align:start position:0% this was more nuanced than I initially thought<00:31:36.770> going<00:31:37.190> into<00:31:37.399> it<00:31:37.580> and<00:31:37.850> so<00:31:38.270> what<00:31:38.450> he 00:31:38.590 --> 00:31:38.600 align:start position:0% thought going into it and so what he 00:31:38.600 --> 00:31:41.399 align:start position:0% thought going into it and so what he argues<00:31:39.140> is<00:31:39.440> that<00:31:39.980> they<00:31:40.640> only<00:31:40.820> issue 00:31:41.399 --> 00:31:41.409 align:start position:0% argues is that they only issue 00:31:41.409 --> 00:31:44.139 align:start position:0% argues is that they only issue additional<00:31:42.409> fiduciary<00:31:43.190> media<00:31:43.490> when<00:31:44.059> the 00:31:44.139 --> 00:31:44.149 align:start position:0% additional fiduciary media when the 00:31:44.149 --> 00:31:46.240 align:start position:0% additional fiduciary media when the community<00:31:44.600> wants<00:31:44.929> to<00:31:45.049> save<00:31:45.289> more<00:31:45.590> okay<00:31:46.010> so<00:31:46.039> let 00:31:46.240 --> 00:31:46.250 align:start position:0% community wants to save more okay so let 00:31:46.250 --> 00:31:47.560 align:start position:0% community wants to save more okay so let me<00:31:46.279> just<00:31:46.340> take<00:31:46.580> a<00:31:46.610> minute<00:31:46.789> here<00:31:46.940> we<00:31:47.120> still<00:31:47.480> got 00:31:47.560 --> 00:31:47.570 align:start position:0% me just take a minute here we still got 00:31:47.570 --> 00:31:49.870 align:start position:0% me just take a minute here we still got plenty<00:31:47.750> of<00:31:47.870> time<00:31:48.020> let<00:31:48.620> me<00:31:48.679> just<00:31:48.830> make<00:31:49.549> sure<00:31:49.760> you 00:31:49.870 --> 00:31:49.880 align:start position:0% plenty of time let me just make sure you 00:31:49.880 --> 00:31:53.230 align:start position:0% plenty of time let me just make sure you get<00:31:50.029> his<00:31:50.179> argument<00:31:50.830> so<00:31:51.830> the<00:31:52.070> claim<00:31:52.370> is<00:31:52.399> again 00:31:53.230 --> 00:31:53.240 align:start position:0% get his argument so the claim is again 00:31:53.240 --> 00:31:56.230 align:start position:0% get his argument so the claim is again what's<00:31:53.659> fiduciary<00:31:54.230> media<00:31:54.590> it's<00:31:55.340> let's<00:31:56.000> let's 00:31:56.230 --> 00:31:56.240 align:start position:0% what's fiduciary media it's let's let's 00:31:56.240 --> 00:31:57.310 align:start position:0% what's fiduciary media it's let's let's imagine<00:31:56.390> it's<00:31:56.840> gold 00:31:57.310 --> 00:31:57.320 align:start position:0% imagine it's gold 00:31:57.320 --> 00:31:59.950 align:start position:0% imagine it's gold Gold<00:31:57.710> is<00:31:57.890> the<00:31:57.919> money<00:31:58.370> in<00:31:58.460> this<00:31:58.610> economy<00:31:58.880> and<00:31:59.390> so 00:31:59.950 --> 00:31:59.960 align:start position:0% Gold is the money in this economy and so 00:31:59.960 --> 00:32:01.899 align:start position:0% Gold is the money in this economy and so prices<00:32:00.169> are<00:32:00.470> quoted<00:32:00.860> in<00:32:00.919> ounces<00:32:01.279> of<00:32:01.429> gold<00:32:01.640> or 00:32:01.899 --> 00:32:01.909 align:start position:0% prices are quoted in ounces of gold or 00:32:01.909 --> 00:32:03.340 align:start position:0% prices are quoted in ounces of gold or you<00:32:02.179> know<00:32:02.270> pounds<00:32:02.570> of<00:32:02.659> gold<00:32:02.750> what-have-you 00:32:03.340 --> 00:32:03.350 align:start position:0% you know pounds of gold what-have-you 00:32:03.350 --> 00:32:05.980 align:start position:0% you know pounds of gold what-have-you and<00:32:03.679> there's<00:32:04.549> banks<00:32:05.029> that<00:32:05.240> are<00:32:05.330> private<00:32:05.809> right 00:32:05.980 --> 00:32:05.990 align:start position:0% and there's banks that are private right 00:32:05.990 --> 00:32:08.139 align:start position:0% and there's banks that are private right we're<00:32:06.590> imagining<00:32:07.130> a<00:32:07.190> free<00:32:07.370> society<00:32:07.549> here 00:32:08.139 --> 00:32:08.149 align:start position:0% we're imagining a free society here 00:32:08.149 --> 00:32:10.810 align:start position:0% we're imagining a free society here there's<00:32:08.480> no<00:32:08.630> political<00:32:08.950> system<00:32:09.950> so<00:32:10.549> there's 00:32:10.810 --> 00:32:10.820 align:start position:0% there's no political system so there's 00:32:10.820 --> 00:32:13.840 align:start position:0% there's no political system so there's free<00:32:11.240> banks<00:32:11.659> they're<00:32:12.440> private<00:32:12.919> and<00:32:13.279> they 00:32:13.840 --> 00:32:13.850 align:start position:0% free banks they're private and they 00:32:13.850 --> 00:32:16.630 align:start position:0% free banks they're private and they issue<00:32:14.120> claims<00:32:15.049> on<00:32:15.380> the<00:32:15.559> gold<00:32:15.770> right<00:32:16.250> so<00:32:16.460> rather 00:32:16.630 --> 00:32:16.640 align:start position:0% issue claims on the gold right so rather 00:32:16.640 --> 00:32:19.180 align:start position:0% issue claims on the gold right so rather than<00:32:16.850> walking<00:32:17.120> around<00:32:17.510> with<00:32:17.740> ten<00:32:18.740> pounds<00:32:18.919> of 00:32:19.180 --> 00:32:19.190 align:start position:0% than walking around with ten pounds of 00:32:19.190 --> 00:32:21.340 align:start position:0% than walking around with ten pounds of gold<00:32:19.340> on<00:32:19.610> you<00:32:19.820> which<00:32:19.970> is<00:32:20.000> heavy<00:32:20.360> you<00:32:20.690> have 00:32:21.340 --> 00:32:21.350 align:start position:0% gold on you which is heavy you have 00:32:21.350 --> 00:32:23.320 align:start position:0% gold on you which is heavy you have pieces<00:32:21.620> of<00:32:21.890> paper<00:32:22.070> that's<00:32:22.669> saying<00:32:22.940> the<00:32:23.059> the 00:32:23.320 --> 00:32:23.330 align:start position:0% pieces of paper that's saying the the 00:32:23.330 --> 00:32:25.750 align:start position:0% pieces of paper that's saying the the bearer<00:32:23.630> of<00:32:23.720> this<00:32:23.929> note<00:32:23.990> is<00:32:24.980> entitled<00:32:25.370> to<00:32:25.549> one 00:32:25.750 --> 00:32:25.760 align:start position:0% bearer of this note is entitled to one 00:32:25.760 --> 00:32:27.549 align:start position:0% bearer of this note is entitled to one ounce<00:32:25.880> of<00:32:26.029> gold<00:32:26.090> let's<00:32:26.480> say<00:32:26.690> all<00:32:27.350> right<00:32:27.470> and 00:32:27.549 --> 00:32:27.559 align:start position:0% ounce of gold let's say all right and 00:32:27.559 --> 00:32:28.659 align:start position:0% ounce of gold let's say all right and you<00:32:27.620> got<00:32:27.710> a<00:32:27.770> bunch<00:32:27.980> of<00:32:28.070> those<00:32:28.220> things<00:32:28.490> in<00:32:28.610> your 00:32:28.659 --> 00:32:28.669 align:start position:0% you got a bunch of those things in your 00:32:28.669 --> 00:32:30.610 align:start position:0% you got a bunch of those things in your pocket<00:32:29.120> or<00:32:29.480> you<00:32:29.779> have<00:32:29.929> a<00:32:29.960> checking<00:32:30.230> account 00:32:30.610 --> 00:32:30.620 align:start position:0% pocket or you have a checking account 00:32:30.620 --> 00:32:32.139 align:start position:0% pocket or you have a checking account you<00:32:30.830> have<00:32:31.250> a<00:32:31.279> checkbook<00:32:31.700> you<00:32:31.820> can<00:32:31.940> write 00:32:32.139 --> 00:32:32.149 align:start position:0% you have a checkbook you can write 00:32:32.149 --> 00:32:36.610 align:start position:0% you have a checkbook you can write checks<00:32:32.480> on<00:32:32.690> and<00:32:33.020> so<00:32:33.770> what<00:32:34.809> Celgene<00:32:35.809> and<00:32:36.080> white 00:32:36.610 --> 00:32:36.620 align:start position:0% checks on and so what Celgene and white 00:32:36.620 --> 00:32:38.230 align:start position:0% checks on and so what Celgene and white and<00:32:36.770> these<00:32:36.860> people<00:32:37.039> are<00:32:37.250> arguing<00:32:37.760> is<00:32:37.909> to<00:32:38.090> say 00:32:38.230 --> 00:32:38.240 align:start position:0% and these people are arguing is to say 00:32:38.240 --> 00:32:40.810 align:start position:0% and these people are arguing is to say the<00:32:38.360> only<00:32:38.510> situation<00:32:39.380> in<00:32:39.649> which<00:32:40.340> the<00:32:40.549> private 00:32:40.810 --> 00:32:40.820 align:start position:0% the only situation in which the private 00:32:40.820 --> 00:32:43.990 align:start position:0% the only situation in which the private banks<00:32:41.330> would<00:32:41.510> find<00:32:41.840> it<00:32:42.080> profitable<00:32:42.440> to<00:32:43.130> print 00:32:43.990 --> 00:32:44.000 align:start position:0% banks would find it profitable to print 00:32:44.000 --> 00:32:46.299 align:start position:0% banks would find it profitable to print up<00:32:44.179> more<00:32:44.210> of<00:32:44.539> these<00:32:44.630> tickets<00:32:45.140> and<00:32:45.409> issue<00:32:46.039> them 00:32:46.299 --> 00:32:46.309 align:start position:0% up more of these tickets and issue them 00:32:46.309 --> 00:32:50.080 align:start position:0% up more of these tickets and issue them as<00:32:46.490> loans<00:32:47.000> into<00:32:47.299> the<00:32:47.419> community<00:32:47.899> and<00:32:49.090> thereby 00:32:50.080 --> 00:32:50.090 align:start position:0% as loans into the community and thereby 00:32:50.090 --> 00:32:51.909 align:start position:0% as loans into the community and thereby lower<00:32:50.330> the<00:32:50.510> rate<00:32:50.690> of<00:32:50.809> interest<00:32:50.960> right<00:32:51.799> so 00:32:51.909 --> 00:32:51.919 align:start position:0% lower the rate of interest right so 00:32:51.919 --> 00:32:53.740 align:start position:0% lower the rate of interest right so that's<00:32:52.070> what<00:32:52.370> Mises<00:32:52.880> is<00:32:53.029> saying<00:32:53.270> would<00:32:53.450> set<00:32:53.659> up 00:32:53.740 --> 00:32:53.750 align:start position:0% that's what Mises is saying would set up 00:32:53.750 --> 00:32:56.799 align:start position:0% that's what Mises is saying would set up the<00:32:53.840> boom-bust<00:32:54.200> cycle<00:32:54.649> that<00:32:55.309> the<00:32:55.850> banks<00:32:56.210> they 00:32:56.799 --> 00:32:56.809 align:start position:0% the boom-bust cycle that the banks they 00:32:56.809 --> 00:32:59.080 align:start position:0% the boom-bust cycle that the banks they issue<00:32:56.990> more<00:32:57.320> fiduciary<00:32:57.860> media<00:32:58.190> it's<00:32:58.880> not 00:32:59.080 --> 00:32:59.090 align:start position:0% issue more fiduciary media it's not 00:32:59.090 --> 00:33:01.210 align:start position:0% issue more fiduciary media it's not backed<00:32:59.360> up<00:32:59.480> by<00:32:59.539> genuine<00:32:59.960> saving<00:33:00.500> in<00:33:00.710> order<00:33:01.100> to 00:33:01.210 --> 00:33:01.220 align:start position:0% backed up by genuine saving in order to 00:33:01.220 --> 00:33:02.050 align:start position:0% backed up by genuine saving in order to advance 00:33:02.050 --> 00:33:02.060 align:start position:0% advance 00:33:02.060 --> 00:33:04.210 align:start position:0% advance that<00:33:02.180> those<00:33:02.510> more<00:33:02.780> loans<00:33:03.050> out<00:33:03.290> there<00:33:03.530> the<00:33:04.040> rate 00:33:04.210 --> 00:33:04.220 align:start position:0% that those more loans out there the rate 00:33:04.220 --> 00:33:05.530 align:start position:0% that those more loans out there the rate of<00:33:04.310> interest<00:33:04.520> comes<00:33:04.790> down<00:33:05.000> it's<00:33:05.210> not<00:33:05.390> the 00:33:05.530 --> 00:33:05.540 align:start position:0% of interest comes down it's not the 00:33:05.540 --> 00:33:07.870 align:start position:0% of interest comes down it's not the correct<00:33:05.870> interest<00:33:06.200> rate<00:33:06.500> it<00:33:07.070> sets<00:33:07.430> up<00:33:07.610> an 00:33:07.870 --> 00:33:07.880 align:start position:0% correct interest rate it sets up an 00:33:07.880 --> 00:33:09.520 align:start position:0% correct interest rate it sets up an artificial<00:33:08.300> boom<00:33:08.690> and<00:33:08.960> then<00:33:09.080> when<00:33:09.170> the<00:33:09.230> banks 00:33:09.520 --> 00:33:09.530 align:start position:0% artificial boom and then when the banks 00:33:09.530 --> 00:33:11.050 align:start position:0% artificial boom and then when the banks chickened<00:33:09.860> out<00:33:09.950> and<00:33:10.010> stopped<00:33:10.340> pumping<00:33:10.670> in<00:33:10.910> so 00:33:11.050 --> 00:33:11.060 align:start position:0% chickened out and stopped pumping in so 00:33:11.060 --> 00:33:13.990 align:start position:0% chickened out and stopped pumping in so much<00:33:11.210> extra<00:33:11.960> credit<00:33:12.320> the<00:33:13.160> bust<00:33:13.370> happens<00:33:13.790> right 00:33:13.990 --> 00:33:14.000 align:start position:0% much extra credit the bust happens right 00:33:14.000 --> 00:33:17.080 align:start position:0% much extra credit the bust happens right so<00:33:14.150> that's<00:33:14.270> Mises<00:33:14.870> position<00:33:15.560> the<00:33:16.280> way<00:33:16.490> the 00:33:17.080 --> 00:33:17.090 align:start position:0% so that's Mises position the way the 00:33:17.090 --> 00:33:18.730 align:start position:0% so that's Mises position the way the free<00:33:17.300> bankers<00:33:17.660> counter<00:33:17.990> that<00:33:18.140> is<00:33:18.290> they<00:33:18.440> say<00:33:18.590> no 00:33:18.730 --> 00:33:18.740 align:start position:0% free bankers counter that is they say no 00:33:18.740 --> 00:33:21.070 align:start position:0% free bankers counter that is they say no actually<00:33:19.400> the<00:33:19.550> only<00:33:19.730> time<00:33:20.180> if<00:33:20.630> you<00:33:20.840> run 00:33:21.070 --> 00:33:21.080 align:start position:0% actually the only time if you run 00:33:21.080 --> 00:33:23.380 align:start position:0% actually the only time if you run through<00:33:21.320> the<00:33:22.070> logic<00:33:22.550> and<00:33:22.730> you<00:33:22.820> see<00:33:23.060> what<00:33:23.270> are 00:33:23.380 --> 00:33:23.390 align:start position:0% through the logic and you see what are 00:33:23.390 --> 00:33:27.280 align:start position:0% through the logic and you see what are the<00:33:23.950> incentives<00:33:24.950> facing<00:33:25.790> a<00:33:26.060> commercial<00:33:27.020> bank 00:33:27.280 --> 00:33:27.290 align:start position:0% the incentives facing a commercial bank 00:33:27.290 --> 00:33:28.750 align:start position:0% the incentives facing a commercial bank in<00:33:27.530> this<00:33:27.770> type<00:33:27.980> of<00:33:28.010> system<00:33:28.310> that<00:33:28.640> they're 00:33:28.750 --> 00:33:28.760 align:start position:0% in this type of system that they're 00:33:28.760 --> 00:33:30.700 align:start position:0% in this type of system that they're envisioning<00:33:29.270> theirs<00:33:29.930> and<00:33:30.050> the<00:33:30.140> only<00:33:30.290> time 00:33:30.700 --> 00:33:30.710 align:start position:0% envisioning theirs and the only time 00:33:30.710 --> 00:33:32.620 align:start position:0% envisioning theirs and the only time they<00:33:30.920> would<00:33:31.070> want<00:33:31.280> to<00:33:31.370> issue<00:33:31.550> more<00:33:32.000> fiduciary 00:33:32.620 --> 00:33:32.630 align:start position:0% they would want to issue more fiduciary 00:33:32.630 --> 00:33:35.170 align:start position:0% they would want to issue more fiduciary media<00:33:32.990> and<00:33:33.460> thereby<00:33:34.460> push<00:33:34.700> down<00:33:34.880> the<00:33:35.000> rate<00:33:35.150> of 00:33:35.170 --> 00:33:35.180 align:start position:0% media and thereby push down the rate of 00:33:35.180 --> 00:33:38.200 align:start position:0% media and thereby push down the rate of interest<00:33:35.390> is<00:33:35.890> when<00:33:36.890> people<00:33:37.400> in<00:33:37.640> the<00:33:37.730> community 00:33:38.200 --> 00:33:38.210 align:start position:0% interest is when people in the community 00:33:38.210 --> 00:33:40.690 align:start position:0% interest is when people in the community want<00:33:38.390> to<00:33:38.600> save<00:33:38.810> more<00:33:39.110> so<00:33:40.070> they're<00:33:40.280> agreeing 00:33:40.690 --> 00:33:40.700 align:start position:0% want to save more so they're agreeing 00:33:40.700 --> 00:33:42.670 align:start position:0% want to save more so they're agreeing that<00:33:41.180> yes<00:33:41.390> if<00:33:42.050> you<00:33:42.170> have<00:33:42.380> an<00:33:42.470> initial 00:33:42.670 --> 00:33:42.680 align:start position:0% that yes if you have an initial 00:33:42.680 --> 00:33:44.290 align:start position:0% that yes if you have an initial equilibrium<00:33:43.190> and<00:33:43.640> then<00:33:43.730> all<00:33:43.820> of<00:33:43.850> a<00:33:43.970> sudden<00:33:44.000> the 00:33:44.290 --> 00:33:44.300 align:start position:0% equilibrium and then all of a sudden the 00:33:44.300 --> 00:33:46.900 align:start position:0% equilibrium and then all of a sudden the banks<00:33:44.630> went<00:33:45.230> to<00:33:45.320> lower<00:33:45.500> reserve<00:33:46.250> ratios<00:33:46.760> and 00:33:46.900 --> 00:33:46.910 align:start position:0% banks went to lower reserve ratios and 00:33:46.910 --> 00:33:48.790 align:start position:0% banks went to lower reserve ratios and print<00:33:47.120> up<00:33:47.240> more<00:33:47.270> tickets<00:33:47.810> even<00:33:48.500> there's<00:33:48.680> not 00:33:48.790 --> 00:33:48.800 align:start position:0% print up more tickets even there's not 00:33:48.800 --> 00:33:50.260 align:start position:0% print up more tickets even there's not more<00:33:48.950> gold<00:33:49.250> in<00:33:49.340> the<00:33:49.460> vault<00:33:49.580> so<00:33:49.940> there's<00:33:50.120> more 00:33:50.260 --> 00:33:50.270 align:start position:0% more gold in the vault so there's more 00:33:50.270 --> 00:33:51.690 align:start position:0% more gold in the vault so there's more people<00:33:50.480> in<00:33:50.630> the<00:33:50.690> community<00:33:50.810> holding<00:33:51.440> tickets 00:33:51.690 --> 00:33:51.700 align:start position:0% people in the community holding tickets 00:33:51.700 --> 00:33:54.850 align:start position:0% people in the community holding tickets saying<00:33:52.700> you<00:33:53.420> know<00:33:53.540> do<00:33:54.080> the<00:33:54.440> owner<00:33:54.590> of<00:33:54.770> this 00:33:54.850 --> 00:33:54.860 align:start position:0% saying you know do the owner of this 00:33:54.860 --> 00:33:56.980 align:start position:0% saying you know do the owner of this ticket<00:33:55.130> can<00:33:55.400> go<00:33:55.490> to<00:33:55.550> Acme<00:33:56.030> bank<00:33:56.300> at<00:33:56.630> any<00:33:56.720> branch 00:33:56.980 --> 00:33:56.990 align:start position:0% ticket can go to Acme bank at any branch 00:33:56.990 --> 00:33:58.390 align:start position:0% ticket can go to Acme bank at any branch and<00:33:57.290> get<00:33:57.350> an<00:33:57.470> ounce<00:33:57.590> of<00:33:57.740> gold<00:33:57.920> there's<00:33:58.160> more<00:33:58.340> of 00:33:58.390 --> 00:33:58.400 align:start position:0% and get an ounce of gold there's more of 00:33:58.400 --> 00:34:00.370 align:start position:0% and get an ounce of gold there's more of those<00:33:58.520> tickets<00:33:58.730> now<00:33:59.450> that<00:33:59.660> the<00:33:59.720> community<00:34:00.200> is 00:34:00.370 --> 00:34:00.380 align:start position:0% those tickets now that the community is 00:34:00.380 --> 00:34:03.340 align:start position:0% those tickets now that the community is holding<00:34:00.890> in<00:34:01.310> the<00:34:02.090> in<00:34:02.300> order<00:34:02.450> to<00:34:02.570> get<00:34:02.810> that<00:34:02.900> flow 00:34:03.340 --> 00:34:03.350 align:start position:0% holding in the in order to get that flow 00:34:03.350 --> 00:34:04.960 align:start position:0% holding in the in order to get that flow to<00:34:03.410> go<00:34:03.770> out<00:34:03.950> there<00:34:04.190> the<00:34:04.400> rate<00:34:04.610> of<00:34:04.730> interest 00:34:04.960 --> 00:34:04.970 align:start position:0% to go out there the rate of interest 00:34:04.970 --> 00:34:07.750 align:start position:0% to go out there the rate of interest dropped<00:34:05.360> so<00:34:06.200> somebody<00:34:06.530> like<00:34:06.560> salerno<00:34:07.310> or<00:34:07.550> me 00:34:07.750 --> 00:34:07.760 align:start position:0% dropped so somebody like salerno or me 00:34:07.760 --> 00:34:10.360 align:start position:0% dropped so somebody like salerno or me would<00:34:08.060> say<00:34:08.240> aussie<00:34:08.720> issuing<00:34:09.680> more<00:34:09.800> fiduciary 00:34:10.360 --> 00:34:10.370 align:start position:0% would say aussie issuing more fiduciary 00:34:10.370 --> 00:34:11.980 align:start position:0% would say aussie issuing more fiduciary media<00:34:10.730> pushed<00:34:11.090> down<00:34:11.270> the<00:34:11.300> rate<00:34:11.510> of<00:34:11.540> interest 00:34:11.980 --> 00:34:11.990 align:start position:0% media pushed down the rate of interest 00:34:11.990 --> 00:34:13.840 align:start position:0% media pushed down the rate of interest even<00:34:12.380> though<00:34:12.470> there<00:34:12.620> wasn't<00:34:12.800> saving<00:34:13.190> it 00:34:13.840 --> 00:34:13.850 align:start position:0% even though there wasn't saving it 00:34:13.850 --> 00:34:15.550 align:start position:0% even though there wasn't saving it wasn't<00:34:14.180> that<00:34:14.240> people<00:34:14.360> deposited<00:34:15.110> more<00:34:15.290> gold 00:34:15.550 --> 00:34:15.560 align:start position:0% wasn't that people deposited more gold 00:34:15.560 --> 00:34:17.470 align:start position:0% wasn't that people deposited more gold with<00:34:15.710> the<00:34:15.830> banks<00:34:16.210> there's<00:34:17.210> the<00:34:17.330> business 00:34:17.470 --> 00:34:17.480 align:start position:0% with the banks there's the business 00:34:17.480 --> 00:34:19.090 align:start position:0% with the banks there's the business cycle<00:34:17.810> right<00:34:18.230> that's<00:34:18.410> the<00:34:18.530> wrong<00:34:18.710> rate<00:34:18.980> of 00:34:19.090 --> 00:34:19.100 align:start position:0% cycle right that's the wrong rate of 00:34:19.100 --> 00:34:20.530 align:start position:0% cycle right that's the wrong rate of interest<00:34:19.310> that's<00:34:19.490> not<00:34:19.640> the<00:34:19.790> natural<00:34:19.940> race<00:34:20.300> to 00:34:20.530 --> 00:34:20.540 align:start position:0% interest that's not the natural race to 00:34:20.540 --> 00:34:21.940 align:start position:0% interest that's not the natural race to lows<00:34:20.750> artificially<00:34:21.350> low<00:34:21.470> sets<00:34:21.740> up<00:34:21.860> the 00:34:21.940 --> 00:34:21.950 align:start position:0% lows artificially low sets up the 00:34:21.950 --> 00:34:23.980 align:start position:0% lows artificially low sets up the boom-bust<00:34:22.250> cycle<00:34:22.670> in<00:34:22.820> the<00:34:23.510> free<00:34:23.690> banker 00:34:23.980 --> 00:34:23.990 align:start position:0% boom-bust cycle in the free banker 00:34:23.990 --> 00:34:27.040 align:start position:0% boom-bust cycle in the free banker responses<00:34:24.620> no<00:34:24.770> the<00:34:25.010> very<00:34:25.220> act<00:34:25.610> of<00:34:25.900> someone<00:34:26.900> in 00:34:27.040 --> 00:34:27.050 align:start position:0% responses no the very act of someone in 00:34:27.050 --> 00:34:29.590 align:start position:0% responses no the very act of someone in the<00:34:27.140> community<00:34:27.820> choosing<00:34:28.820> to<00:34:28.940> hold<00:34:29.210> more 00:34:29.590 --> 00:34:29.600 align:start position:0% the community choosing to hold more 00:34:29.600 --> 00:34:32.220 align:start position:0% the community choosing to hold more notes<00:34:29.960> issued<00:34:30.350> by<00:34:30.560> Acme<00:34:31.160> Bank<00:34:31.370> or<00:34:31.520> whatever<00:34:31.790> is 00:34:32.220 --> 00:34:32.230 align:start position:0% notes issued by Acme Bank or whatever is 00:34:32.230 --> 00:34:35.620 align:start position:0% notes issued by Acme Bank or whatever is implicitly<00:34:33.230> the<00:34:34.160> owner<00:34:34.340> of<00:34:34.580> that<00:34:34.730> note<00:34:35.360> or<00:34:35.600> the 00:34:35.620 --> 00:34:35.630 align:start position:0% implicitly the owner of that note or the 00:34:35.630 --> 00:34:37.510 align:start position:0% implicitly the owner of that note or the holder<00:34:35.960> that<00:34:36.140> note<00:34:36.290> making<00:34:36.920> a<00:34:37.010> loan<00:34:37.190> to<00:34:37.400> the 00:34:37.510 --> 00:34:37.520 align:start position:0% holder that note making a loan to the 00:34:37.520 --> 00:34:40.510 align:start position:0% holder that note making a loan to the bank<00:34:37.810> all<00:34:38.810> right<00:34:38.960> so<00:34:39.260> it's<00:34:39.440> a<00:34:39.530> very<00:34:39.710> clever 00:34:40.510 --> 00:34:40.520 align:start position:0% bank all right so it's a very clever 00:34:40.520 --> 00:34:43.090 align:start position:0% bank all right so it's a very clever argument<00:34:41.090> so<00:34:41.180> if<00:34:41.300> it<00:34:41.420> were<00:34:41.540> correct<00:34:42.020> I<00:34:42.380> think 00:34:43.090 --> 00:34:43.100 align:start position:0% argument so if it were correct I think 00:34:43.100 --> 00:34:44.770 align:start position:0% argument so if it were correct I think it<00:34:43.520> would<00:34:43.640> it<00:34:43.670> would<00:34:43.850> go<00:34:44.030> through<00:34:44.240> right<00:34:44.660> in 00:34:44.770 --> 00:34:44.780 align:start position:0% it would it would go through right in 00:34:44.780 --> 00:34:46.180 align:start position:0% it would it would go through right in other<00:34:44.870> words<00:34:45.080> they<00:34:45.200> would<00:34:45.350> have<00:34:45.470> shown<00:34:45.770> in 00:34:46.180 --> 00:34:46.190 align:start position:0% other words they would have shown in 00:34:46.190 --> 00:34:48.940 align:start position:0% other words they would have shown in their<00:34:46.910> type<00:34:47.120> of<00:34:47.270> system<00:34:47.750> the<00:34:48.230> only<00:34:48.530> time<00:34:48.770> the 00:34:48.940 --> 00:34:48.950 align:start position:0% their type of system the only time the 00:34:48.950 --> 00:34:50.560 align:start position:0% their type of system the only time the banks<00:34:49.220> would<00:34:49.340> issue<00:34:49.490> more<00:34:49.820> fiduciary<00:34:50.420> didn't 00:34:50.560 --> 00:34:50.570 align:start position:0% banks would issue more fiduciary didn't 00:34:50.570 --> 00:34:52.060 align:start position:0% banks would issue more fiduciary didn't lower<00:34:50.690> the<00:34:50.780> rate<00:34:50.900> of<00:34:50.990> interest<00:34:51.320> is<00:34:51.470> when<00:34:51.980> the 00:34:52.060 --> 00:34:52.070 align:start position:0% lower the rate of interest is when the 00:34:52.070 --> 00:34:53.800 align:start position:0% lower the rate of interest is when the community<00:34:52.400> voluntarily<00:34:52.940> saved<00:34:53.300> more<00:34:53.540> and 00:34:53.800 --> 00:34:53.810 align:start position:0% community voluntarily saved more and 00:34:53.810 --> 00:34:55.090 align:start position:0% community voluntarily saved more and again<00:34:54.230> the<00:34:54.500> bank<00:34:54.710> which<00:34:54.860> is<00:34:54.890> being 00:34:55.090 --> 00:34:55.100 align:start position:0% again the bank which is being 00:34:55.100 --> 00:34:56.710 align:start position:0% again the bank which is being intermediary<00:34:55.730> so<00:34:56.270> that's<00:34:56.450> what<00:34:56.600> they're 00:34:56.710 --> 00:34:56.720 align:start position:0% intermediary so that's what they're 00:34:56.720 --> 00:34:57.670 align:start position:0% intermediary so that's what they're trying<00:34:56.870> to<00:34:56.960> do<00:34:57.050> so<00:34:57.170> it's<00:34:57.260> a<00:34:57.320> very<00:34:57.500> clever 00:34:57.670 --> 00:34:57.680 align:start position:0% trying to do so it's a very clever 00:34:57.680 --> 00:35:00.100 align:start position:0% trying to do so it's a very clever approach<00:34:58.010> I<00:34:58.400> just<00:34:59.390> don't<00:34:59.540> think<00:34:59.720> it<00:34:59.840> it 00:35:00.100 --> 00:35:00.110 align:start position:0% approach I just don't think it it 00:35:00.110 --> 00:35:01.720 align:start position:0% approach I just don't think it it doesn't<00:35:00.530> make<00:35:00.740> sense<00:35:00.770> to<00:35:01.010> me<00:35:01.190> economically<00:35:01.640> I 00:35:01.720 --> 00:35:01.730 align:start position:0% doesn't make sense to me economically I 00:35:01.730 --> 00:35:03.190 align:start position:0% doesn't make sense to me economically I don't<00:35:01.880> think<00:35:02.000> it's<00:35:02.090> correct<00:35:02.360> so<00:35:02.720> one<00:35:02.990> thing<00:35:03.170> is 00:35:03.190 --> 00:35:03.200 align:start position:0% don't think it's correct so one thing is 00:35:03.200 --> 00:35:04.960 align:start position:0% don't think it's correct so one thing is and<00:35:03.890> I'll<00:35:04.010> show<00:35:04.190> you<00:35:04.220> a<00:35:04.340> paper<00:35:04.550> here<00:35:04.820> at<00:35:04.880> the 00:35:04.960 --> 00:35:04.970 align:start position:0% and I'll show you a paper here at the 00:35:04.970 --> 00:35:06.180 align:start position:0% and I'll show you a paper here at the end<00:35:05.120> if<00:35:05.240> you<00:35:05.300> want<00:35:05.390> to<00:35:05.540> go<00:35:05.600> see<00:35:05.810> the<00:35:05.900> source 00:35:06.180 --> 00:35:06.190 align:start position:0% end if you want to go see the source 00:35:06.190 --> 00:35:08.590 align:start position:0% end if you want to go see the source Mises<00:35:07.190> explicitly<00:35:07.820> dealt<00:35:08.090> with<00:35:08.240> that<00:35:08.390> type<00:35:08.570> of 00:35:08.590 --> 00:35:08.600 align:start position:0% Mises explicitly dealt with that type of 00:35:08.600 --> 00:35:11.500 align:start position:0% Mises explicitly dealt with that type of argument<00:35:08.840> in<00:35:09.260> 1912<00:35:10.100> in<00:35:10.490> the<00:35:11.060> theory<00:35:11.300> of<00:35:11.390> money 00:35:11.500 --> 00:35:11.510 align:start position:0% argument in 1912 in the theory of money 00:35:11.510 --> 00:35:13.360 align:start position:0% argument in 1912 in the theory of money and<00:35:11.630> credit<00:35:11.720> and<00:35:12.170> he<00:35:12.290> said<00:35:12.470> some<00:35:12.710> people<00:35:12.740> think 00:35:13.360 --> 00:35:13.370 align:start position:0% and credit and he said some people think 00:35:13.370 --> 00:35:15.880 align:start position:0% and credit and he said some people think that<00:35:13.640> holding<00:35:14.450> fiduciary<00:35:15.020> media 00:35:15.880 --> 00:35:15.890 align:start position:0% that holding fiduciary media 00:35:15.890 --> 00:35:18.640 align:start position:0% that holding fiduciary media involves<00:35:16.340> an<00:35:16.400> implicit<00:35:16.670> loan<00:35:17.560> lending<00:35:18.560> of 00:35:18.640 --> 00:35:18.650 align:start position:0% involves an implicit loan lending of 00:35:18.650 --> 00:35:21.010 align:start position:0% involves an implicit loan lending of funds<00:35:18.890> to<00:35:19.040> the<00:35:19.160> bank<00:35:19.370> it<00:35:20.210> Misha<00:35:20.510> says<00:35:20.780> that's 00:35:21.010 --> 00:35:21.020 align:start position:0% funds to the bank it Misha says that's 00:35:21.020 --> 00:35:24.640 align:start position:0% funds to the bank it Misha says that's not<00:35:21.170> correct<00:35:21.530> and<00:35:22.100> so<00:35:22.250> his<00:35:22.370> argument<00:35:22.550> is<00:35:23.650> if 00:35:24.640 --> 00:35:24.650 align:start position:0% not correct and so his argument is if 00:35:24.650 --> 00:35:26.860 align:start position:0% not correct and so his argument is if I'm<00:35:25.040> holding<00:35:25.340> a<00:35:25.580> note<00:35:25.760> like<00:35:26.240> from<00:35:26.390> Acme 00:35:26.860 --> 00:35:26.870 align:start position:0% I'm holding a note like from Acme 00:35:26.870 --> 00:35:28.690 align:start position:0% I'm holding a note like from Acme bankers<00:35:27.350> let's<00:35:27.620> say<00:35:27.710> Citibank<00:35:28.220> that<00:35:28.430> says<00:35:28.580> the 00:35:28.690 --> 00:35:28.700 align:start position:0% bankers let's say Citibank that says the 00:35:28.700 --> 00:35:31.120 align:start position:0% bankers let's say Citibank that says the owner<00:35:28.880> of<00:35:29.120> this<00:35:29.270> can<00:35:30.140> present<00:35:30.500> it<00:35:30.590> at<00:35:30.680> any<00:35:30.830> citi 00:35:31.120 --> 00:35:31.130 align:start position:0% owner of this can present it at any citi 00:35:31.130 --> 00:35:33.250 align:start position:0% owner of this can present it at any citi bank<00:35:31.190> and<00:35:31.700> get<00:35:32.210> an<00:35:32.300> ounce<00:35:32.480> of<00:35:32.720> gold<00:35:32.900> upon 00:35:33.250 --> 00:35:33.260 align:start position:0% bank and get an ounce of gold upon 00:35:33.260 --> 00:35:36.400 align:start position:0% bank and get an ounce of gold upon demand<00:35:33.620> and<00:35:34.360> so<00:35:35.360> the<00:35:35.570> free<00:35:35.810> bankers<00:35:36.260> are 00:35:36.400 --> 00:35:36.410 align:start position:0% demand and so the free bankers are 00:35:36.410 --> 00:35:38.740 align:start position:0% demand and so the free bankers are arguing<00:35:36.980> that<00:35:37.190> there<00:35:37.430> I've<00:35:37.640> implicitly<00:35:38.300> lent 00:35:38.740 --> 00:35:38.750 align:start position:0% arguing that there I've implicitly lent 00:35:38.750 --> 00:35:41.500 align:start position:0% arguing that there I've implicitly lent the<00:35:39.680> ounce<00:35:39.860> of<00:35:40.070> gold<00:35:40.220> to<00:35:40.430> Citibank<00:35:40.730> right 00:35:41.500 --> 00:35:41.510 align:start position:0% the ounce of gold to Citibank right 00:35:41.510 --> 00:35:42.880 align:start position:0% the ounce of gold to Citibank right because<00:35:41.690> I<00:35:41.780> could<00:35:42.260> go<00:35:42.380> get<00:35:42.560> it 00:35:42.880 --> 00:35:42.890 align:start position:0% because I could go get it 00:35:42.890 --> 00:35:45.610 align:start position:0% because I could go get it but<00:35:43.400> I'm<00:35:43.490> choosing<00:35:43.910> not<00:35:44.060> to<00:35:44.300> so<00:35:44.870> its<00:35:45.140> remaining 00:35:45.610 --> 00:35:45.620 align:start position:0% but I'm choosing not to so its remaining 00:35:45.620 --> 00:35:47.050 align:start position:0% but I'm choosing not to so its remaining in<00:35:45.710> their<00:35:45.800> possession<00:35:46.160> as<00:35:46.430> I<00:35:46.550> walk<00:35:46.760> around 00:35:47.050 --> 00:35:47.060 align:start position:0% in their possession as I walk around 00:35:47.060 --> 00:35:48.940 align:start position:0% in their possession as I walk around town<00:35:47.240> with<00:35:47.300> this<00:35:47.570> note<00:35:47.840> rather<00:35:48.590> than<00:35:48.770> going 00:35:48.940 --> 00:35:48.950 align:start position:0% town with this note rather than going 00:35:48.950 --> 00:35:50.620 align:start position:0% town with this note rather than going and<00:35:49.190> turning<00:35:49.700> it<00:35:49.790> in<00:35:49.880> and<00:35:50.030> getting<00:35:50.180> the<00:35:50.360> the 00:35:50.620 --> 00:35:50.630 align:start position:0% and turning it in and getting the the 00:35:50.630 --> 00:35:52.540 align:start position:0% and turning it in and getting the the gold<00:35:50.810> outs<00:35:51.020> so<00:35:51.650> they're<00:35:51.770> saying<00:35:52.100> in<00:35:52.250> a<00:35:52.310> sense 00:35:52.540 --> 00:35:52.550 align:start position:0% gold outs so they're saying in a sense 00:35:52.550 --> 00:35:55.270 align:start position:0% gold outs so they're saying in a sense I'm<00:35:52.850> lent<00:35:53.240> Citibank<00:35:53.750> the<00:35:53.930> gold<00:35:54.110> ounce<00:35:54.290> and<00:35:54.710> so 00:35:55.270 --> 00:35:55.280 align:start position:0% I'm lent Citibank the gold ounce and so 00:35:55.280 --> 00:35:57.010 align:start position:0% I'm lent Citibank the gold ounce and so therefore<00:35:55.730> the<00:35:56.270> interest<00:35:56.540> rate<00:35:56.690> should<00:35:56.900> have 00:35:57.010 --> 00:35:57.020 align:start position:0% therefore the interest rate should have 00:35:57.020 --> 00:35:58.390 align:start position:0% therefore the interest rate should have fallen<00:35:57.200> because<00:35:57.410> I<00:35:57.590> just<00:35:57.800> engaged<00:35:58.100> in<00:35:58.250> more 00:35:58.390 --> 00:35:58.400 align:start position:0% fallen because I just engaged in more 00:35:58.400 --> 00:36:00.610 align:start position:0% fallen because I just engaged in more lending<00:35:58.790> but<00:35:59.330> what<00:35:59.510> Mises<00:35:59.930> is<00:36:00.110> arguing<00:36:00.530> is 00:36:00.610 --> 00:36:00.620 align:start position:0% lending but what Mises is arguing is 00:36:00.620 --> 00:36:01.960 align:start position:0% lending but what Mises is arguing is that<00:36:00.650> no<00:36:00.950> when<00:36:01.400> you<00:36:01.490> understand<00:36:01.940> what 00:36:01.960 --> 00:36:01.970 align:start position:0% that no when you understand what 00:36:01.970 --> 00:36:05.770 align:start position:0% that no when you understand what fiduciary<00:36:02.570> media<00:36:02.900> is<00:36:03.140> in<00:36:03.800> how<00:36:04.610> it<00:36:04.910> is<00:36:04.940> it<00:36:05.480> is 00:36:05.770 --> 00:36:05.780 align:start position:0% fiduciary media is in how it is it is 00:36:05.780 --> 00:36:08.260 align:start position:0% fiduciary media is in how it is it is accepted<00:36:06.410> by<00:36:07.070> most<00:36:07.250> people<00:36:07.610> in<00:36:07.670> the<00:36:07.760> community 00:36:08.260 --> 00:36:08.270 align:start position:0% accepted by most people in the community 00:36:08.270 --> 00:36:11.530 align:start position:0% accepted by most people in the community at<00:36:08.450> par<00:36:08.840> with<00:36:09.140> the<00:36:09.440> genuine<00:36:10.270> underlying<00:36:11.270> base 00:36:11.530 --> 00:36:11.540 align:start position:0% at par with the genuine underlying base 00:36:11.540 --> 00:36:14.050 align:start position:0% at par with the genuine underlying base money<00:36:11.870> then<00:36:12.650> you<00:36:12.800> realize<00:36:13.160> it's<00:36:13.490> not<00:36:13.670> a<00:36:13.730> loan 00:36:14.050 --> 00:36:14.060 align:start position:0% money then you realize it's not a loan 00:36:14.060 --> 00:36:17.650 align:start position:0% money then you realize it's not a loan okay<00:36:14.780> and<00:36:15.110> this<00:36:15.500> is<00:36:15.580> this<00:36:16.580> is<00:36:16.760> why<00:36:16.970> Mises<00:36:17.480> goes 00:36:17.650 --> 00:36:17.660 align:start position:0% okay and this is this is why Mises goes 00:36:17.660 --> 00:36:19.300 align:start position:0% okay and this is this is why Mises goes through<00:36:17.840> the<00:36:17.930> whole<00:36:18.110> thing<00:36:18.230> I'm<00:36:18.320> not<00:36:18.440> gonna<00:36:18.590> we 00:36:19.300 --> 00:36:19.310 align:start position:0% through the whole thing I'm not gonna we 00:36:19.310 --> 00:36:20.410 align:start position:0% through the whole thing I'm not gonna we don't<00:36:19.430> have<00:36:19.520> time<00:36:19.670> and<00:36:19.850> also<00:36:19.970> I<00:36:20.090> don't<00:36:20.150> want<00:36:20.270> to 00:36:20.410 --> 00:36:20.420 align:start position:0% don't have time and also I don't want to 00:36:20.420 --> 00:36:22.600 align:start position:0% don't have time and also I don't want to bore<00:36:20.540> you<00:36:20.690> too<00:36:20.810> much<00:36:20.840> here<00:36:21.200> but<00:36:21.950> why<00:36:22.130> Mises 00:36:22.600 --> 00:36:22.610 align:start position:0% bore you too much here but why Mises 00:36:22.610 --> 00:36:24.460 align:start position:0% bore you too much here but why Mises developed<00:36:23.000> this<00:36:23.060> notion<00:36:23.300> of<00:36:23.540> fiduciary<00:36:24.080> media 00:36:24.460 --> 00:36:24.470 align:start position:0% developed this notion of fiduciary media 00:36:24.470 --> 00:36:28.030 align:start position:0% developed this notion of fiduciary media okay<00:36:25.100> and<00:36:25.280> so<00:36:25.460> it's<00:36:25.670> claims<00:36:26.570> on<00:36:26.870> money<00:36:27.170> that 00:36:28.030 --> 00:36:28.040 align:start position:0% okay and so it's claims on money that 00:36:28.040 --> 00:36:29.500 align:start position:0% okay and so it's claims on money that are<00:36:28.160> instantly<00:36:28.580> redeemable<00:36:29.120> and<00:36:29.330> that<00:36:29.450> the 00:36:29.500 --> 00:36:29.510 align:start position:0% are instantly redeemable and that the 00:36:29.510 --> 00:36:31.360 align:start position:0% are instantly redeemable and that the community<00:36:29.720> accepts<00:36:30.620> as<00:36:31.040> being 00:36:31.360 --> 00:36:31.370 align:start position:0% community accepts as being 00:36:31.370 --> 00:36:32.950 align:start position:0% community accepts as being interchangeable<00:36:32.060> with<00:36:32.180> money<00:36:32.390> but<00:36:32.780> it's<00:36:32.900> not 00:36:32.950 --> 00:36:32.960 align:start position:0% interchangeable with money but it's not 00:36:32.960 --> 00:36:34.930 align:start position:0% interchangeable with money but it's not actually<00:36:33.560> money<00:36:33.770> proper<00:36:34.280> that's<00:36:34.760> what 00:36:34.930 --> 00:36:34.940 align:start position:0% actually money proper that's what 00:36:34.940 --> 00:36:38.410 align:start position:0% actually money proper that's what fiduciary<00:36:35.450> media<00:36:35.780> are<00:36:36.410> and<00:36:37.120> why<00:36:38.120> did<00:36:38.270> he 00:36:38.410 --> 00:36:38.420 align:start position:0% fiduciary media are and why did he 00:36:38.420 --> 00:36:39.820 align:start position:0% fiduciary media are and why did he develop<00:36:38.690> that<00:36:38.960> because<00:36:39.230> he<00:36:39.410> thought<00:36:39.620> this<00:36:39.770> was 00:36:39.820 --> 00:36:39.830 align:start position:0% develop that because he thought this was 00:36:39.830 --> 00:36:41.050 align:start position:0% develop that because he thought this was necessary<00:36:40.100> to<00:36:40.460> understand<00:36:40.820> the<00:36:40.910> business 00:36:41.050 --> 00:36:41.060 align:start position:0% necessary to understand the business 00:36:41.060 --> 00:36:42.700 align:start position:0% necessary to understand the business cycle<00:36:41.390> because<00:36:41.630> what<00:36:41.780> happens<00:36:42.170> is<00:36:42.350> the<00:36:42.500> weird 00:36:42.700 --> 00:36:42.710 align:start position:0% cycle because what happens is the weird 00:36:42.710 --> 00:36:46.300 align:start position:0% cycle because what happens is the weird thing<00:36:42.800> about<00:36:43.360> claims<00:36:44.360> on<00:36:44.630> banks<00:36:45.230> at<00:36:46.010> least 00:36:46.300 --> 00:36:46.310 align:start position:0% thing about claims on banks at least 00:36:46.310 --> 00:36:48.520 align:start position:0% thing about claims on banks at least reputable<00:36:46.820> ones<00:36:47.060> is<00:36:47.270> that<00:36:47.780> the<00:36:47.870> public<00:36:48.230> treats 00:36:48.520 --> 00:36:48.530 align:start position:0% reputable ones is that the public treats 00:36:48.530 --> 00:36:49.750 align:start position:0% reputable ones is that the public treats those<00:36:48.770> things<00:36:49.040> is<00:36:49.190> basically 00:36:49.750 --> 00:36:49.760 align:start position:0% those things is basically 00:36:49.760 --> 00:36:52.150 align:start position:0% those things is basically interchangeable<00:36:50.000> with<00:36:50.660> actual<00:36:51.140> money<00:36:51.320> so 00:36:52.150 --> 00:36:52.160 align:start position:0% interchangeable with actual money so 00:36:52.160 --> 00:36:53.560 align:start position:0% interchangeable with actual money so when<00:36:52.280> you're<00:36:52.400> walking<00:36:52.610> around<00:36:53.090> a<00:36:53.180> developed 00:36:53.560 --> 00:36:53.570 align:start position:0% when you're walking around a developed 00:36:53.570 --> 00:36:55.900 align:start position:0% when you're walking around a developed market<00:36:53.930> economy<00:36:54.440> with<00:36:55.010> notes<00:36:55.310> from<00:36:55.430> Citibank 00:36:55.900 --> 00:36:55.910 align:start position:0% market economy with notes from Citibank 00:36:55.910 --> 00:36:58.870 align:start position:0% market economy with notes from Citibank saying<00:36:56.390> the<00:36:56.480> owner<00:36:56.660> of<00:36:56.870> this<00:36:57.220> is<00:36:58.220> entitled<00:36:58.790> to 00:36:58.870 --> 00:36:58.880 align:start position:0% saying the owner of this is entitled to 00:36:58.880 --> 00:37:01.330 align:start position:0% saying the owner of this is entitled to an<00:36:59.360> ounce<00:36:59.570> of<00:36:59.780> gold<00:36:59.960> you<00:37:00.800> can<00:37:00.950> go<00:37:01.070> into<00:37:01.220> the 00:37:01.330 --> 00:37:01.340 align:start position:0% an ounce of gold you can go into the 00:37:01.340 --> 00:37:03.070 align:start position:0% an ounce of gold you can go into the store<00:37:01.610> and<00:37:01.820> spend<00:37:02.060> it<00:37:02.420> just<00:37:02.630> as<00:37:02.750> well<00:37:02.870> as<00:37:02.990> you 00:37:03.070 --> 00:37:03.080 align:start position:0% store and spend it just as well as you 00:37:03.080 --> 00:37:06.040 align:start position:0% store and spend it just as well as you can<00:37:03.230> spend<00:37:03.530> the<00:37:03.560> actual<00:37:04.040> gold<00:37:04.520> ounces<00:37:05.050> okay 00:37:06.040 --> 00:37:06.050 align:start position:0% can spend the actual gold ounces okay 00:37:06.050 --> 00:37:08.080 align:start position:0% can spend the actual gold ounces okay and<00:37:06.260> so<00:37:06.470> the<00:37:06.860> point<00:37:07.070> is<00:37:07.280> you're<00:37:07.580> not<00:37:07.760> actually 00:37:08.080 --> 00:37:08.090 align:start position:0% and so the point is you're not actually 00:37:08.090 --> 00:37:10.540 align:start position:0% and so the point is you're not actually making<00:37:08.540> a<00:37:08.750> loan<00:37:08.930> to<00:37:09.080> the<00:37:09.110> bank<00:37:09.280> because<00:37:10.280> you 00:37:10.540 --> 00:37:10.550 align:start position:0% making a loan to the bank because you 00:37:10.550 --> 00:37:13.480 align:start position:0% making a loan to the bank because you still<00:37:10.790> have<00:37:10.910> a<00:37:10.940> present<00:37:11.360> good<00:37:11.560> anything<00:37:12.560> that 00:37:13.480 --> 00:37:13.490 align:start position:0% still have a present good anything that 00:37:13.490 --> 00:37:15.250 align:start position:0% still have a present good anything that having<00:37:13.940> the<00:37:14.060> actual<00:37:14.570> gold<00:37:14.870> in<00:37:15.140> your 00:37:15.250 --> 00:37:15.260 align:start position:0% having the actual gold in your 00:37:15.260 --> 00:37:17.380 align:start position:0% having the actual gold in your possession<00:37:15.770> would<00:37:16.040> entitle<00:37:16.310> you<00:37:16.580> to<00:37:16.610> all 00:37:17.380 --> 00:37:17.390 align:start position:0% possession would entitle you to all 00:37:17.390 --> 00:37:18.700 align:start position:0% possession would entitle you to all right<00:37:17.510> you<00:37:17.690> know<00:37:17.750> any<00:37:17.900> services<00:37:18.530> it<00:37:18.680> provides 00:37:18.700 --> 00:37:18.710 align:start position:0% right you know any services it provides 00:37:18.710 --> 00:37:21.820 align:start position:0% right you know any services it provides by<00:37:19.310> having<00:37:19.640> gold<00:37:19.880> and<00:37:20.060> your<00:37:20.150> cash<00:37:20.330> balances<00:37:20.960> is 00:37:21.820 --> 00:37:21.830 align:start position:0% by having gold and your cash balances is 00:37:21.830 --> 00:37:23.950 align:start position:0% by having gold and your cash balances is also<00:37:22.280> satisfied<00:37:22.790> by<00:37:22.940> holding<00:37:23.330> fiduciary 00:37:23.950 --> 00:37:23.960 align:start position:0% also satisfied by holding fiduciary 00:37:23.960 --> 00:37:27.760 align:start position:0% also satisfied by holding fiduciary media<00:37:24.320> okay<00:37:25.310> and<00:37:25.520> so<00:37:25.730> so<00:37:26.720> don't<00:37:27.380> don't<00:37:27.680> get 00:37:27.760 --> 00:37:27.770 align:start position:0% media okay and so so don't don't get 00:37:27.770 --> 00:37:29.380 align:start position:0% media okay and so so don't don't get lost<00:37:27.980> here<00:37:28.280> because<00:37:28.460> this<00:37:28.550> people<00:37:28.940> people 00:37:29.380 --> 00:37:29.390 align:start position:0% lost here because this people people 00:37:29.390 --> 00:37:34.300 align:start position:0% lost here because this people people getting<00:37:30.020> arguments<00:37:32.680> there's<00:37:33.680> a<00:37:33.770> dispute 00:37:34.300 --> 00:37:34.310 align:start position:0% getting arguments there's a dispute 00:37:34.310 --> 00:37:36.310 align:start position:0% getting arguments there's a dispute about<00:37:34.460> whether<00:37:34.730> acquiring<00:37:35.510> larger<00:37:36.080> cash 00:37:36.310 --> 00:37:36.320 align:start position:0% about whether acquiring larger cash 00:37:36.320 --> 00:37:40.600 align:start position:0% about whether acquiring larger cash balances<00:37:36.860> constitutes<00:37:37.610> saving<00:37:38.150> and<00:37:39.610> that 00:37:40.600 --> 00:37:40.610 align:start position:0% balances constitutes saving and that 00:37:40.610 --> 00:37:43.030 align:start position:0% balances constitutes saving and that question<00:37:41.210> is<00:37:41.810> not<00:37:42.230> relevant<00:37:42.620> to<00:37:42.920> the 00:37:43.030 --> 00:37:43.040 align:start position:0% question is not relevant to the 00:37:43.040 --> 00:37:45.160 align:start position:0% question is not relevant to the particular<00:37:43.400> one<00:37:43.670> here<00:37:44.090> what<00:37:44.720> the<00:37:44.900> free 00:37:45.160 --> 00:37:45.170 align:start position:0% particular one here what the free 00:37:45.170 --> 00:37:47.820 align:start position:0% particular one here what the free bankers<00:37:45.590> need<00:37:45.980> to<00:37:46.070> argue<00:37:46.430> is<00:37:46.610> that<00:37:46.640> you've<00:37:47.180> got 00:37:47.820 --> 00:37:47.830 align:start position:0% bankers need to argue is that you've got 00:37:47.830 --> 00:37:50.020 align:start position:0% bankers need to argue is that you've got cash<00:37:48.830> in<00:37:49.040> your<00:37:49.160> you<00:37:49.280> know<00:37:49.340> you've<00:37:49.490> got<00:37:49.610> gold<00:37:49.850> in 00:37:50.020 --> 00:37:50.030 align:start position:0% cash in your you know you've got gold in 00:37:50.030 --> 00:37:53.020 align:start position:0% cash in your you know you've got gold in your<00:37:50.150> possession<00:37:50.620> and<00:37:51.620> and<00:37:52.280> I<00:37:52.370> agree<00:37:52.670> that<00:37:52.700> by 00:37:53.020 --> 00:37:53.030 align:start position:0% your possession and and I agree that by 00:37:53.030 --> 00:37:54.550 align:start position:0% your possession and and I agree that by adding<00:37:53.360> that<00:37:53.480> to<00:37:53.540> your<00:37:53.750> cash<00:37:53.900> balances<00:37:54.380> you're 00:37:54.550 --> 00:37:54.560 align:start position:0% adding that to your cash balances you're 00:37:54.560 --> 00:37:56.050 align:start position:0% adding that to your cash balances you're saving<00:37:55.040> you<00:37:55.160> know<00:37:55.250> like<00:37:55.340> I<00:37:55.430> say<00:37:55.670> the<00:37:55.820> amounts 00:37:56.050 --> 00:37:56.060 align:start position:0% saving you know like I say the amounts 00:37:56.060 --> 00:37:57.430 align:start position:0% saving you know like I say the amounts of<00:37:56.180> golds<00:37:56.480> and<00:37:56.630> I<00:37:56.690> have<00:37:56.870> an<00:37:56.960> extra<00:37:57.110> ounce<00:37:57.260> of 00:37:57.430 --> 00:37:57.440 align:start position:0% of golds and I have an extra ounce of 00:37:57.440 --> 00:38:00.130 align:start position:0% of golds and I have an extra ounce of gold<00:37:57.500> of<00:37:57.650> my<00:37:57.740> cash<00:37:58.070> balances<00:37:58.550> and<00:37:59.270> now<00:37:59.540> if<00:37:59.810> I<00:37:59.930> go 00:38:00.130 --> 00:38:00.140 align:start position:0% gold of my cash balances and now if I go 00:38:00.140 --> 00:38:01.930 align:start position:0% gold of my cash balances and now if I go and<00:38:00.350> give<00:38:00.590> it<00:38:00.680> to<00:38:00.710> a<00:38:00.830> bank<00:38:01.160> and<00:38:01.400> they<00:38:01.580> give<00:38:01.790> me<00:38:01.820> a 00:38:01.930 --> 00:38:01.940 align:start position:0% and give it to a bank and they give me a 00:38:01.940 --> 00:38:04.810 align:start position:0% and give it to a bank and they give me a note<00:38:02.240> saying<00:38:02.540> the<00:38:02.810> owner<00:38:02.990> of<00:38:03.140> this<00:38:03.290> note<00:38:03.820> can 00:38:04.810 --> 00:38:04.820 align:start position:0% note saying the owner of this note can 00:38:04.820 --> 00:38:06.850 align:start position:0% note saying the owner of this note can get<00:38:04.970> a<00:38:05.000> an<00:38:05.360> ounce<00:38:05.540> of<00:38:05.720> gold<00:38:05.990> that<00:38:06.470> that's<00:38:06.710> an 00:38:06.850 --> 00:38:06.860 align:start position:0% get a an ounce of gold that that's an 00:38:06.860 --> 00:38:08.710 align:start position:0% get a an ounce of gold that that's an additional<00:38:07.340> act<00:38:07.550> of<00:38:07.730> saving<00:38:07.910> on<00:38:08.150> top<00:38:08.390> of<00:38:08.570> it 00:38:08.710 --> 00:38:08.720 align:start position:0% additional act of saving on top of it 00:38:08.720 --> 00:38:10.360 align:start position:0% additional act of saving on top of it because<00:38:09.410> that's<00:38:09.590> what<00:38:09.800> they<00:38:09.920> need<00:38:10.070> that's 00:38:10.360 --> 00:38:10.370 align:start position:0% because that's what they need that's 00:38:10.370 --> 00:38:11.500 align:start position:0% because that's what they need that's what<00:38:10.520> they<00:38:10.580> would<00:38:10.730> need<00:38:10.850> to<00:38:10.970> argue<00:38:11.120> and<00:38:11.420> I'm 00:38:11.500 --> 00:38:11.510 align:start position:0% what they would need to argue and I'm 00:38:11.510 --> 00:38:13.510 align:start position:0% what they would need to argue and I'm saying<00:38:11.750> that<00:38:11.900> that<00:38:12.170> doesn't<00:38:12.530> follow<00:38:12.740> all 00:38:13.510 --> 00:38:13.520 align:start position:0% saying that that doesn't follow all 00:38:13.520 --> 00:38:15.370 align:start position:0% saying that that doesn't follow all right<00:38:13.640> that<00:38:13.820> just<00:38:13.850> swapping<00:38:14.810> the<00:38:14.930> form<00:38:15.230> in 00:38:15.370 --> 00:38:15.380 align:start position:0% right that just swapping the form in 00:38:15.380 --> 00:38:16.990 align:start position:0% right that just swapping the form in which<00:38:15.530> you're<00:38:15.710> in<00:38:16.370> which<00:38:16.520> you're<00:38:16.700> holding 00:38:16.990 --> 00:38:17.000 align:start position:0% which you're in which you're holding 00:38:17.000 --> 00:38:19.450 align:start position:0% which you're in which you're holding your<00:38:17.060> cash<00:38:17.680> doesn't<00:38:18.680> constitute<00:38:19.190> an 00:38:19.450 --> 00:38:19.460 align:start position:0% your cash doesn't constitute an 00:38:19.460 --> 00:38:21.100 align:start position:0% your cash doesn't constitute an additional<00:38:19.910> act<00:38:20.090> of<00:38:20.240> saving<00:38:20.480> and<00:38:20.840> so<00:38:20.960> that 00:38:21.100 --> 00:38:21.110 align:start position:0% additional act of saving and so that 00:38:21.110 --> 00:38:22.570 align:start position:0% additional act of saving and so that shouldn't<00:38:21.350> further<00:38:21.650> push<00:38:21.950> down<00:38:22.160> the<00:38:22.310> rate<00:38:22.460> of 00:38:22.570 --> 00:38:22.580 align:start position:0% shouldn't further push down the rate of 00:38:22.580 --> 00:38:25.000 align:start position:0% shouldn't further push down the rate of interest<00:38:22.730> and<00:38:23.150> I<00:38:24.050> have<00:38:24.230> a<00:38:24.260> little<00:38:24.500> reductio<00:38:24.920> ad 00:38:25.000 --> 00:38:25.010 align:start position:0% interest and I have a little reductio ad 00:38:25.010 --> 00:38:29.050 align:start position:0% interest and I have a little reductio ad absurdum<00:38:25.130> so<00:38:25.880> in<00:38:26.180> the<00:38:26.630> free<00:38:26.840> banker<00:38:27.940> vision<00:38:28.940> or 00:38:29.050 --> 00:38:29.060 align:start position:0% absurdum so in the free banker vision or 00:38:29.060 --> 00:38:32.080 align:start position:0% absurdum so in the free banker vision or world<00:38:29.300> view<00:38:29.570> why<00:38:30.530> would<00:38:30.770> it<00:38:30.860> be<00:38:30.980> good<00:38:31.160> how<00:38:31.940> does 00:38:32.080 --> 00:38:32.090 align:start position:0% world view why would it be good how does 00:38:32.090 --> 00:38:34.120 align:start position:0% world view why would it be good how does it<00:38:32.240> promote<00:38:32.470> coordination<00:38:33.470> or<00:38:33.560> equilibration 00:38:34.120 --> 00:38:34.130 align:start position:0% it promote coordination or equilibration 00:38:34.130 --> 00:38:36.160 align:start position:0% it promote coordination or equilibration like<00:38:34.430> they<00:38:34.580> say<00:38:34.850> you<00:38:35.570> could<00:38:35.690> have<00:38:35.870> a<00:38:35.900> situation 00:38:36.160 --> 00:38:36.170 align:start position:0% like they say you could have a situation 00:38:36.170 --> 00:38:39.190 align:start position:0% like they say you could have a situation where<00:38:36.530> imagine<00:38:37.510> everybody<00:38:38.510> all<00:38:38.810> of<00:38:38.900> a<00:38:38.930> sudden 00:38:39.190 --> 00:38:39.200 align:start position:0% where imagine everybody all of a sudden 00:38:39.200 --> 00:38:40.870 align:start position:0% where imagine everybody all of a sudden wants<00:38:39.470> to<00:38:39.620> save<00:38:40.190> more<00:38:40.400> they<00:38:40.520> want<00:38:40.670> to<00:38:40.730> hold 00:38:40.870 --> 00:38:40.880 align:start position:0% wants to save more they want to hold 00:38:40.880 --> 00:38:42.670 align:start position:0% wants to save more they want to hold more<00:38:41.030> cash<00:38:41.330> they<00:38:41.600> get<00:38:41.720> fearful<00:38:42.440> for<00:38:42.560> the 00:38:42.670 --> 00:38:42.680 align:start position:0% more cash they get fearful for the 00:38:42.680 --> 00:38:46.120 align:start position:0% more cash they get fearful for the future<00:38:42.980> under<00:38:43.760> 100%<00:38:44.570> reserve<00:38:44.690> banking<00:38:45.130> this 00:38:46.120 --> 00:38:46.130 align:start position:0% future under 100% reserve banking this 00:38:46.130 --> 00:38:48.160 align:start position:0% future under 100% reserve banking this would<00:38:46.400> they<00:38:46.640> claim<00:38:47.120> lead<00:38:47.660> to<00:38:47.810> a<00:38:47.840> painful 00:38:48.160 --> 00:38:48.170 align:start position:0% would they claim lead to a painful 00:38:48.170 --> 00:38:51.700 align:start position:0% would they claim lead to a painful adjustment<00:38:48.830> process<00:38:49.280> where<00:38:50.060> people<00:38:51.020> don't 00:38:51.700 --> 00:38:51.710 align:start position:0% adjustment process where people don't 00:38:51.710 --> 00:38:53.230 align:start position:0% adjustment process where people don't want<00:38:51.830> to<00:38:51.920> spend<00:38:52.190> as<00:38:52.340> much<00:38:52.520> they<00:38:52.820> reduced<00:38:53.120> their 00:38:53.230 --> 00:38:53.240 align:start position:0% want to spend as much they reduced their 00:38:53.240 --> 00:38:54.310 align:start position:0% want to spend as much they reduced their spending<00:38:53.600> because<00:38:53.720> they're<00:38:53.870> trying<00:38:54.080> to<00:38:54.110> build 00:38:54.310 --> 00:38:54.320 align:start position:0% spending because they're trying to build 00:38:54.320 --> 00:38:56.560 align:start position:0% spending because they're trying to build up<00:38:54.380> their<00:38:54.500> cash<00:38:54.710> balances<00:38:55.250> and<00:38:55.520> so<00:38:56.240> prices 00:38:56.560 --> 00:38:56.570 align:start position:0% up their cash balances and so prices 00:38:56.570 --> 00:38:59.530 align:start position:0% up their cash balances and so prices would<00:38:56.960> have<00:38:57.110> to<00:38:57.260> come<00:38:57.500> down<00:38:57.530> and<00:38:58.240> more<00:38:59.240> gold 00:38:59.530 --> 00:38:59.540 align:start position:0% would have to come down and more gold 00:38:59.540 --> 00:39:01.300 align:start position:0% would have to come down and more gold would<00:38:59.690> have<00:38:59.840> to<00:38:59.990> be<00:39:00.110> mined<00:39:00.350> right<00:39:00.650> if<00:39:01.130> we're<00:39:01.280> a 00:39:01.300 --> 00:39:01.310 align:start position:0% would have to be mined right if we're a 00:39:01.310 --> 00:39:03.250 align:start position:0% would have to be mined right if we're a hundred<00:39:01.520> percent<00:39:01.700> reserve<00:39:02.180> community<00:39:02.870> that 00:39:03.250 --> 00:39:03.260 align:start position:0% hundred percent reserve community that 00:39:03.260 --> 00:39:05.260 align:start position:0% hundred percent reserve community that uses<00:39:03.590> gold<00:39:03.830> as<00:39:03.980> the<00:39:04.100> money<00:39:04.280> if<00:39:04.850> all<00:39:05.090> of<00:39:05.210> a 00:39:05.260 --> 00:39:05.270 align:start position:0% uses gold as the money if all of a 00:39:05.270 --> 00:39:06.850 align:start position:0% uses gold as the money if all of a sudden<00:39:05.600> everybody<00:39:06.050> wanted<00:39:06.290> to<00:39:06.350> double<00:39:06.710> the 00:39:06.850 --> 00:39:06.860 align:start position:0% sudden everybody wanted to double the 00:39:06.860 --> 00:39:10.320 align:start position:0% sudden everybody wanted to double the amount<00:39:06.890> of<00:39:07.310> gold<00:39:08.300> in<00:39:08.660> his<00:39:09.350> or<00:39:09.530> her<00:39:09.560> possession 00:39:10.320 --> 00:39:10.330 align:start position:0% amount of gold in his or her possession 00:39:10.330 --> 00:39:12.820 align:start position:0% amount of gold in his or her possession then<00:39:11.330> what<00:39:11.600> happens<00:39:11.960> is<00:39:12.110> a<00:39:12.140> combination<00:39:12.770> of 00:39:12.820 --> 00:39:12.830 align:start position:0% then what happens is a combination of 00:39:12.830 --> 00:39:15.520 align:start position:0% then what happens is a combination of more<00:39:13.070> gold<00:39:13.340> gets<00:39:13.610> mined<00:39:13.940> in<00:39:14.540> prices<00:39:15.320> quoted 00:39:15.520 --> 00:39:15.530 align:start position:0% more gold gets mined in prices quoted 00:39:15.530 --> 00:39:17.140 align:start position:0% more gold gets mined in prices quoted and<00:39:15.770> gold<00:39:15.890> come<00:39:16.130> down<00:39:16.370> until<00:39:16.580> the<00:39:16.790> point<00:39:16.970> at 00:39:17.140 --> 00:39:17.150 align:start position:0% and gold come down until the point at 00:39:17.150 --> 00:39:19.210 align:start position:0% and gold come down until the point at which<00:39:17.270> that<00:39:17.630> you<00:39:18.170> know<00:39:18.260> the<00:39:18.380> real<00:39:18.590> purchasing 00:39:19.210 --> 00:39:19.220 align:start position:0% which that you know the real purchasing 00:39:19.220 --> 00:39:21.820 align:start position:0% which that you know the real purchasing power<00:39:19.430> of<00:39:19.550> your<00:39:19.940> gold<00:39:20.660> holdings<00:39:21.080> has<00:39:21.500> doubled 00:39:21.820 --> 00:39:21.830 align:start position:0% power of your gold holdings has doubled 00:39:21.830 --> 00:39:23.410 align:start position:0% power of your gold holdings has doubled for<00:39:21.950> everybody<00:39:22.340> and<00:39:22.550> they're<00:39:23.060> saying<00:39:23.270> that's 00:39:23.410 --> 00:39:23.420 align:start position:0% for everybody and they're saying that's 00:39:23.420 --> 00:39:25.180 align:start position:0% for everybody and they're saying that's that's<00:39:23.630> a<00:39:23.720> painful<00:39:24.050> process<00:39:24.260> what<00:39:24.710> if<00:39:24.800> instead 00:39:25.180 --> 00:39:25.190 align:start position:0% that's a painful process what if instead 00:39:25.190 --> 00:39:27.750 align:start position:0% that's a painful process what if instead the<00:39:26.030> banks<00:39:26.420> could<00:39:26.810> just<00:39:26.990> print<00:39:27.230> more<00:39:27.350> tickets 00:39:27.750 --> 00:39:27.760 align:start position:0% the banks could just print more tickets 00:39:27.760 --> 00:39:29.500 align:start position:0% the banks could just print more tickets right<00:39:28.760> and<00:39:28.940> then<00:39:29.030> that<00:39:29.180> would<00:39:29.330> satisfy 00:39:29.500 --> 00:39:29.510 align:start position:0% right and then that would satisfy 00:39:29.510 --> 00:39:31.660 align:start position:0% right and then that would satisfy everybody<00:39:30.110> would<00:39:30.260> have<00:39:30.290> more<00:39:30.620> you<00:39:31.070> know<00:39:31.160> their 00:39:31.660 --> 00:39:31.670 align:start position:0% everybody would have more you know their 00:39:31.670 --> 00:39:33.490 align:start position:0% everybody would have more you know their purchasing<00:39:32.450> power<00:39:32.480> measured<00:39:33.080> in<00:39:33.170> terms<00:39:33.320> of 00:39:33.490 --> 00:39:33.500 align:start position:0% purchasing power measured in terms of 00:39:33.500 --> 00:39:35.890 align:start position:0% purchasing power measured in terms of gold<00:39:33.860> and<00:39:34.160> tickets<00:39:34.610> would<00:39:34.760> go<00:39:34.910> up<00:39:35.120> we<00:39:35.750> don't 00:39:35.890 --> 00:39:35.900 align:start position:0% gold and tickets would go up we don't 00:39:35.900 --> 00:39:37.840 align:start position:0% gold and tickets would go up we don't have<00:39:36.050> to<00:39:36.230> go<00:39:36.380> and<00:39:36.620> go<00:39:36.800> the<00:39:36.950> costly<00:39:37.400> method<00:39:37.760> of 00:39:37.840 --> 00:39:37.850 align:start position:0% have to go and go the costly method of 00:39:37.850 --> 00:39:39.910 align:start position:0% have to go and go the costly method of digging<00:39:38.390> up<00:39:38.510> more<00:39:38.660> gold<00:39:38.960> and<00:39:39.560> we<00:39:39.710> don't<00:39:39.860> have 00:39:39.910 --> 00:39:39.920 align:start position:0% digging up more gold and we don't have 00:39:39.920 --> 00:39:42.220 align:start position:0% digging up more gold and we don't have to<00:39:40.070> wait<00:39:40.280> for<00:39:40.460> the<00:39:40.550> painful<00:39:40.790> sluggish<00:39:41.750> process 00:39:42.220 --> 00:39:42.230 align:start position:0% to wait for the painful sluggish process 00:39:42.230 --> 00:39:42.850 align:start position:0% to wait for the painful sluggish process of<00:39:42.320> prices 00:39:42.850 --> 00:39:42.860 align:start position:0% of prices 00:39:42.860 --> 00:39:45.190 align:start position:0% of prices because<00:39:43.280> prices<00:39:43.550> are<00:39:43.760> sticky<00:39:44.030> they<00:39:44.810> just<00:39:45.020> are 00:39:45.190 --> 00:39:45.200 align:start position:0% because prices are sticky they just are 00:39:45.200 --> 00:39:47.860 align:start position:0% because prices are sticky they just are and<00:39:45.590> that's<00:39:45.890> you<00:39:46.220> know<00:39:46.630> that's<00:39:47.630> their 00:39:47.860 --> 00:39:47.870 align:start position:0% and that's you know that's their 00:39:47.870 --> 00:39:50.170 align:start position:0% and that's you know that's their argument<00:39:47.990> and<00:39:48.650> so<00:39:49.250> as<00:39:49.340> I<00:39:49.400> pointed<00:39:49.610> out<00:39:49.880> what's 00:39:50.170 --> 00:39:50.180 align:start position:0% argument and so as I pointed out what's 00:39:50.180 --> 00:39:52.810 align:start position:0% argument and so as I pointed out what's weird<00:39:50.450> in<00:39:50.600> that<00:39:50.630> situation<00:39:51.380> just<00:39:51.650> if<00:39:52.070> you<00:39:52.160> go 00:39:52.810 --> 00:39:52.820 align:start position:0% weird in that situation just if you go 00:39:52.820 --> 00:39:55.630 align:start position:0% weird in that situation just if you go through<00:39:53.060> their<00:39:53.180> logic<00:39:53.720> is<00:39:53.980> if<00:39:54.980> you<00:39:55.190> said<00:39:55.430> okay 00:39:55.630 --> 00:39:55.640 align:start position:0% through their logic is if you said okay 00:39:55.640 --> 00:39:56.740 align:start position:0% through their logic is if you said okay let's<00:39:55.820> imagine<00:39:56.060> that<00:39:56.270> it's<00:39:56.450> a<00:39:56.540> situation 00:39:56.740 --> 00:39:56.750 align:start position:0% let's imagine that it's a situation 00:39:56.750 --> 00:40:00.190 align:start position:0% let's imagine that it's a situation where<00:39:57.400> everybody<00:39:58.400> just<00:39:58.670> wants<00:39:58.910> to<00:39:59.030> double<00:39:59.210> his 00:40:00.190 --> 00:40:00.200 align:start position:0% where everybody just wants to double his 00:40:00.200 --> 00:40:02.920 align:start position:0% where everybody just wants to double his or<00:40:00.350> her<00:40:00.520> holdings<00:40:01.520> and<00:40:01.790> the<00:40:02.360> bank's<00:40:02.750> just 00:40:02.920 --> 00:40:02.930 align:start position:0% or her holdings and the bank's just 00:40:02.930 --> 00:40:04.840 align:start position:0% or her holdings and the bank's just print<00:40:03.260> up<00:40:03.410> more<00:40:03.440> tickets<00:40:04.010> and<00:40:04.250> so<00:40:04.430> everybody 00:40:04.840 --> 00:40:04.850 align:start position:0% print up more tickets and so everybody 00:40:04.850 --> 00:40:06.460 align:start position:0% print up more tickets and so everybody just<00:40:04.940> gets<00:40:05.390> more<00:40:05.600> tickets<00:40:05.960> so<00:40:06.020> now<00:40:06.140> everyone 00:40:06.460 --> 00:40:06.470 align:start position:0% just gets more tickets so now everyone 00:40:06.470 --> 00:40:08.980 align:start position:0% just gets more tickets so now everyone has<00:40:06.620> twice<00:40:06.890> as<00:40:06.950> much<00:40:07.250> gold<00:40:07.600> measured<00:40:08.600> in<00:40:08.720> you 00:40:08.980 --> 00:40:08.990 align:start position:0% has twice as much gold measured in you 00:40:08.990 --> 00:40:10.180 align:start position:0% has twice as much gold measured in you know<00:40:09.080> tickets<00:40:09.350> that<00:40:09.470> they<00:40:09.500> borrowed<00:40:09.890> from<00:40:10.040> the 00:40:10.180 --> 00:40:10.190 align:start position:0% know tickets that they borrowed from the 00:40:10.190 --> 00:40:13.390 align:start position:0% know tickets that they borrowed from the bank<00:40:10.340> and<00:40:11.330> now<00:40:12.140> I<00:40:12.170> say<00:40:12.530> okay<00:40:12.740> how<00:40:13.130> did<00:40:13.310> that 00:40:13.390 --> 00:40:13.400 align:start position:0% bank and now I say okay how did that 00:40:13.400 --> 00:40:14.920 align:start position:0% bank and now I say okay how did that haven't<00:40:14.060> that<00:40:14.180> you<00:40:14.330> know<00:40:14.390> that<00:40:14.540> pushes<00:40:14.810> down 00:40:14.920 --> 00:40:14.930 align:start position:0% haven't that you know that pushes down 00:40:14.930 --> 00:40:16.690 align:start position:0% haven't that you know that pushes down interest<00:40:15.140> rates<00:40:15.230> isn't<00:40:15.680> that<00:40:15.800> going<00:40:16.010> to<00:40:16.220> cause 00:40:16.690 --> 00:40:16.700 align:start position:0% interest rates isn't that going to cause 00:40:16.700 --> 00:40:18.150 align:start position:0% interest rates isn't that going to cause the<00:40:16.880> boom-bust<00:40:17.210> cycle<00:40:17.570> or<00:40:17.660> so<00:40:17.720> you<00:40:17.810> know 00:40:18.150 --> 00:40:18.160 align:start position:0% the boom-bust cycle or so you know 00:40:18.160 --> 00:40:20.890 align:start position:0% the boom-bust cycle or so you know because<00:40:19.160> they're<00:40:19.760> implicitly<00:40:20.210> making<00:40:20.600> a<00:40:20.690> loan 00:40:20.890 --> 00:40:20.900 align:start position:0% because they're implicitly making a loan 00:40:20.900 --> 00:40:23.650 align:start position:0% because they're implicitly making a loan and<00:40:21.290> so<00:40:22.100> if<00:40:22.190> you<00:40:22.250> think<00:40:22.280> it<00:40:22.550> through<00:40:22.580> how<00:40:23.300> is<00:40:23.540> it 00:40:23.650 --> 00:40:23.660 align:start position:0% and so if you think it through how is it 00:40:23.660 --> 00:40:25.330 align:start position:0% and so if you think it through how is it possible<00:40:24.170> that<00:40:24.230> everybody<00:40:24.770> in<00:40:24.860> the<00:40:24.920> community 00:40:25.330 --> 00:40:25.340 align:start position:0% possible that everybody in the community 00:40:25.340 --> 00:40:28.090 align:start position:0% possible that everybody in the community all<00:40:25.520> of<00:40:25.550> a<00:40:25.730> sudden<00:40:26.110> had<00:40:27.110> more<00:40:27.350> tickets<00:40:27.770> is 00:40:28.090 --> 00:40:28.100 align:start position:0% all of a sudden had more tickets is 00:40:28.100 --> 00:40:30.100 align:start position:0% all of a sudden had more tickets is because<00:40:28.520> everybody<00:40:29.000> lent<00:40:29.330> himself<00:40:29.540> that 00:40:30.100 --> 00:40:30.110 align:start position:0% because everybody lent himself that 00:40:30.110 --> 00:40:33.220 align:start position:0% because everybody lent himself that extra<00:40:30.410> money<00:40:31.000> right<00:40:32.000> you<00:40:32.150> see<00:40:32.510> that<00:40:32.720> and<00:40:32.930> so<00:40:33.140> if 00:40:33.220 --> 00:40:33.230 align:start position:0% extra money right you see that and so if 00:40:33.230 --> 00:40:34.150 align:start position:0% extra money right you see that and so if you<00:40:33.320> say<00:40:33.470> to<00:40:33.500> some<00:40:33.710> where'd<00:40:33.890> you<00:40:33.950> get<00:40:34.040> those 00:40:34.150 --> 00:40:34.160 align:start position:0% you say to some where'd you get those 00:40:34.160 --> 00:40:35.440 align:start position:0% you say to some where'd you get those tickets<00:40:34.310> from<00:40:34.670> you'd<00:40:34.820> say<00:40:34.910> oh<00:40:34.940> I<00:40:35.030> lent<00:40:35.270> it<00:40:35.360> to 00:40:35.440 --> 00:40:35.450 align:start position:0% tickets from you'd say oh I lent it to 00:40:35.450 --> 00:40:37.360 align:start position:0% tickets from you'd say oh I lent it to myself<00:40:35.600> and<00:40:35.960> that's<00:40:36.680> how<00:40:36.830> you<00:40:36.890> doubled<00:40:37.280> your 00:40:37.360 --> 00:40:37.370 align:start position:0% myself and that's how you doubled your 00:40:37.370 --> 00:40:40.900 align:start position:0% myself and that's how you doubled your cash<00:40:37.610> holdings<00:40:38.060> all<00:40:38.600> right<00:40:38.750> and<00:40:38.900> so<00:40:39.280> it's<00:40:40.280> when 00:40:40.900 --> 00:40:40.910 align:start position:0% cash holdings all right and so it's when 00:40:40.910 --> 00:40:41.890 align:start position:0% cash holdings all right and so it's when you<00:40:41.000> think<00:40:41.240> it<00:40:41.330> through<00:40:41.450> that<00:40:41.660> way<00:40:41.840> you 00:40:41.890 --> 00:40:41.900 align:start position:0% you think it through that way you 00:40:41.900 --> 00:40:43.060 align:start position:0% you think it through that way you realize<00:40:42.140> wait<00:40:42.410> there's<00:40:42.560> something<00:40:42.740> screwy 00:40:43.060 --> 00:40:43.070 align:start position:0% realize wait there's something screwy 00:40:43.070 --> 00:40:44.230 align:start position:0% realize wait there's something screwy there<00:40:43.340> that<00:40:43.490> can't<00:40:43.700> be<00:40:43.790> right 00:40:44.230 --> 00:40:44.240 align:start position:0% there that can't be right 00:40:44.240 --> 00:40:45.520 align:start position:0% there that can't be right okay<00:40:44.690> whereas<00:40:44.930> when<00:40:45.080> it's<00:40:45.200> just<00:40:45.320> one-off 00:40:45.520 --> 00:40:45.530 align:start position:0% okay whereas when it's just one-off 00:40:45.530 --> 00:40:47.620 align:start position:0% okay whereas when it's just one-off things<00:40:45.980> and<00:40:46.130> one<00:40:46.310> person<00:40:46.730> you<00:40:47.390> know<00:40:47.420> is 00:40:47.620 --> 00:40:47.630 align:start position:0% things and one person you know is 00:40:47.630 --> 00:40:49.270 align:start position:0% things and one person you know is holding<00:40:48.140> the<00:40:48.200> notes<00:40:48.410> and<00:40:48.620> maybe<00:40:48.740> you<00:40:49.130> could 00:40:49.270 --> 00:40:49.280 align:start position:0% holding the notes and maybe you could 00:40:49.280 --> 00:40:50.500 align:start position:0% holding the notes and maybe you could see<00:40:49.430> it<00:40:49.520> and<00:40:49.610> somebody<00:40:49.850> else<00:40:50.000> borrowed<00:40:50.360> it 00:40:50.500 --> 00:40:50.510 align:start position:0% see it and somebody else borrowed it 00:40:50.510 --> 00:40:53.140 align:start position:0% see it and somebody else borrowed it because<00:40:50.930> normally<00:40:51.130> the<00:40:52.130> bank<00:40:52.370> expands<00:40:52.850> and 00:40:53.140 --> 00:40:53.150 align:start position:0% because normally the bank expands and 00:40:53.150 --> 00:40:55.330 align:start position:0% because normally the bank expands and some<00:40:53.300> business<00:40:53.750> will<00:40:54.710> borrow<00:40:54.950> the<00:40:55.130> notes 00:40:55.330 --> 00:40:55.340 align:start position:0% some business will borrow the notes 00:40:55.340 --> 00:40:57.670 align:start position:0% some business will borrow the notes spend<00:40:56.330> it<00:40:56.540> and<00:40:56.690> then<00:40:57.050> someone<00:40:57.350> else<00:40:57.440> in<00:40:57.620> the 00:40:57.670 --> 00:40:57.680 align:start position:0% spend it and then someone else in the 00:40:57.680 --> 00:40:58.900 align:start position:0% spend it and then someone else in the community<00:40:57.830> will<00:40:58.100> be<00:40:58.190> the<00:40:58.280> reservoir<00:40:58.700> well 00:40:58.900 --> 00:40:58.910 align:start position:0% community will be the reservoir well 00:40:58.910 --> 00:41:00.130 align:start position:0% community will be the reservoir well that<00:40:59.060> note<00:40:59.270> will<00:40:59.420> end<00:40:59.600> up<00:40:59.750> and<00:40:59.840> they'll<00:40:59.960> hold 00:41:00.130 --> 00:41:00.140 align:start position:0% that note will end up and they'll hold 00:41:00.140 --> 00:41:00.970 align:start position:0% that note will end up and they'll hold and<00:41:00.260> they'll<00:41:00.350> add<00:41:00.500> it<00:41:00.620> to<00:41:00.710> their<00:41:00.800> cash 00:41:00.970 --> 00:41:00.980 align:start position:0% and they'll add it to their cash 00:41:00.980 --> 00:41:02.740 align:start position:0% and they'll add it to their cash balances<00:41:01.460> and<00:41:01.610> so<00:41:01.700> the<00:41:01.790> free<00:41:02.000> bankers<00:41:02.300> argue 00:41:02.740 --> 00:41:02.750 align:start position:0% balances and so the free bankers argue 00:41:02.750 --> 00:41:05.070 align:start position:0% balances and so the free bankers argue oh<00:41:02.930> that<00:41:03.620> person<00:41:04.040> where<00:41:04.220> it<00:41:04.340> landed 00:41:05.070 --> 00:41:05.080 align:start position:0% oh that person where it landed 00:41:05.080 --> 00:41:06.910 align:start position:0% oh that person where it landed implicitly<00:41:06.080> lent<00:41:06.380> the<00:41:06.500> money<00:41:06.680> to<00:41:06.830> the 00:41:06.910 --> 00:41:06.920 align:start position:0% implicitly lent the money to the 00:41:06.920 --> 00:41:09.250 align:start position:0% implicitly lent the money to the expanding<00:41:07.520> business<00:41:07.850> owner<00:41:08.060> but<00:41:08.810> when<00:41:08.990> I<00:41:09.020> make 00:41:09.250 --> 00:41:09.260 align:start position:0% expanding business owner but when I make 00:41:09.260 --> 00:41:10.510 align:start position:0% expanding business owner but when I make it<00:41:09.290> symmetrical<00:41:09.830> like<00:41:09.950> that<00:41:10.070> where<00:41:10.160> everyone 00:41:10.510 --> 00:41:10.520 align:start position:0% it symmetrical like that where everyone 00:41:10.520 --> 00:41:12.430 align:start position:0% it symmetrical like that where everyone the<00:41:10.610> community<00:41:11.060> just<00:41:11.300> expands<00:41:11.750> as<00:41:11.930> his<00:41:12.230> or<00:41:12.350> her 00:41:12.430 --> 00:41:12.440 align:start position:0% the community just expands as his or her 00:41:12.440 --> 00:41:14.920 align:start position:0% the community just expands as his or her cash<00:41:12.710> holdings<00:41:13.220> which<00:41:14.060> the<00:41:14.270> banking<00:41:14.600> system 00:41:14.920 --> 00:41:14.930 align:start position:0% cash holdings which the banking system 00:41:14.930 --> 00:41:16.480 align:start position:0% cash holdings which the banking system accommodates<00:41:15.170> by<00:41:15.590> printing<00:41:15.920> up<00:41:16.010> more<00:41:16.160> tickets 00:41:16.480 --> 00:41:16.490 align:start position:0% accommodates by printing up more tickets 00:41:16.490 --> 00:41:18.640 align:start position:0% accommodates by printing up more tickets you<00:41:16.610> can<00:41:16.790> see<00:41:17.030> that<00:41:17.870> you<00:41:18.020> know<00:41:18.110> that<00:41:18.230> that 00:41:18.640 --> 00:41:18.650 align:start position:0% you can see that you know that that 00:41:18.650 --> 00:41:19.630 align:start position:0% you can see that you know that that process<00:41:18.890> doesn't<00:41:19.190> work<00:41:19.370> that<00:41:19.460> means 00:41:19.630 --> 00:41:19.640 align:start position:0% process doesn't work that means 00:41:19.640 --> 00:41:21.670 align:start position:0% process doesn't work that means everybody<00:41:20.060> implicitly<00:41:20.600> lent<00:41:20.960> himself<00:41:21.410> the 00:41:21.670 --> 00:41:21.680 align:start position:0% everybody implicitly lent himself the 00:41:21.680 --> 00:41:23.710 align:start position:0% everybody implicitly lent himself the extra<00:41:22.040> funds<00:41:22.400> available<00:41:22.850> to<00:41:23.030> bolster<00:41:23.330> as<00:41:23.510> cash 00:41:23.710 --> 00:41:23.720 align:start position:0% extra funds available to bolster as cash 00:41:23.720 --> 00:41:25.990 align:start position:0% extra funds available to bolster as cash balances<00:41:24.290> that<00:41:24.890> doesn't<00:41:25.160> make<00:41:25.250> any<00:41:25.400> sense<00:41:25.640> and 00:41:25.990 --> 00:41:26.000 align:start position:0% balances that doesn't make any sense and 00:41:26.000 --> 00:41:28.210 align:start position:0% balances that doesn't make any sense and certainly<00:41:26.540> you<00:41:27.260> know<00:41:27.350> you're<00:41:27.680> not<00:41:27.800> creating 00:41:28.210 --> 00:41:28.220 align:start position:0% certainly you know you're not creating 00:41:28.220 --> 00:41:29.920 align:start position:0% certainly you know you're not creating genuine<00:41:28.640> savings<00:41:29.030> through<00:41:29.300> that<00:41:29.450> all<00:41:29.780> right 00:41:29.920 --> 00:41:29.930 align:start position:0% genuine savings through that all right 00:41:29.930 --> 00:41:31.570 align:start position:0% genuine savings through that all right so<00:41:29.960> that's<00:41:30.200> the<00:41:30.920> way<00:41:31.040> I<00:41:31.070> would<00:41:31.190> handle<00:41:31.520> that 00:41:31.570 --> 00:41:31.580 align:start position:0% so that's the way I would handle that 00:41:31.580 --> 00:41:35.020 align:start position:0% so that's the way I would handle that particular<00:41:32.150> claim<00:41:32.560> another<00:41:33.560> claim<00:41:34.040> that 00:41:35.020 --> 00:41:35.030 align:start position:0% particular claim another claim that 00:41:35.030 --> 00:41:38.350 align:start position:0% particular claim another claim that Celgene<00:41:35.840> often<00:41:36.170> dwells<00:41:36.410> on<00:41:36.650> is<00:41:37.270> pointing<00:41:38.270> at 00:41:38.350 --> 00:41:38.360 align:start position:0% Celgene often dwells on is pointing at 00:41:38.360 --> 00:41:41.800 align:start position:0% Celgene often dwells on is pointing at the<00:41:38.480> historical<00:41:39.490> successes<00:41:40.490> of<00:41:40.700> the<00:41:41.270> free 00:41:41.800 --> 00:41:41.810 align:start position:0% the historical successes of the free 00:41:41.810 --> 00:41:44.620 align:start position:0% the historical successes of the free banker<00:41:42.200> vision<00:41:42.590> and<00:41:42.770> the<00:41:43.400> two<00:41:43.610> he<00:41:43.820> singles<00:41:44.540> out 00:41:44.620 --> 00:41:44.630 align:start position:0% banker vision and the two he singles out 00:41:44.630 --> 00:41:47.890 align:start position:0% banker vision and the two he singles out are<00:41:44.870> Scotland<00:41:45.470> and<00:41:45.560> Canada<00:41:46.040> and<00:41:46.540> so<00:41:47.540> again<00:41:47.810> I'm 00:41:47.890 --> 00:41:47.900 align:start position:0% are Scotland and Canada and so again I'm 00:41:47.900 --> 00:41:49.540 align:start position:0% are Scotland and Canada and so again I'm not<00:41:48.020> putting<00:41:48.260> words<00:41:48.320> as<00:41:48.620> mouths<00:41:48.800> clearly<00:41:49.280> you 00:41:49.540 --> 00:41:49.550 align:start position:0% not putting words as mouths clearly you 00:41:49.550 --> 00:41:51.070 align:start position:0% not putting words as mouths clearly you can<00:41:49.700> go<00:41:49.880> and<00:41:50.090> if<00:41:50.330> you<00:41:50.450> read<00:41:50.630> the<00:41:50.720> paper<00:41:50.900> I'll 00:41:51.070 --> 00:41:51.080 align:start position:0% can go and if you read the paper I'll 00:41:51.080 --> 00:41:53.380 align:start position:0% can go and if you read the paper I'll link<00:41:51.530> to<00:41:51.650> at<00:41:51.770> the<00:41:51.860> end<00:41:51.980> here<00:41:52.220> you'll<00:41:52.370> see<00:41:52.610> that 00:41:53.380 --> 00:41:53.390 align:start position:0% link to at the end here you'll see that 00:41:53.390 --> 00:41:56.020 align:start position:0% link to at the end here you'll see that Celgene<00:41:53.960> holds<00:41:54.710> these<00:41:54.860> up<00:41:55.040> is<00:41:55.220> the<00:41:55.340> best 00:41:56.020 --> 00:41:56.030 align:start position:0% Celgene holds these up is the best 00:41:56.030 --> 00:41:58.390 align:start position:0% Celgene holds these up is the best examples<00:41:56.480> historically<00:41:57.050> of<00:41:57.350> free<00:41:57.680> banking<00:41:58.130> in 00:41:58.390 --> 00:41:58.400 align:start position:0% examples historically of free banking in 00:41:58.400 --> 00:42:00.820 align:start position:0% examples historically of free banking in action<00:41:58.910> and<00:41:59.150> so<00:41:59.720> that's<00:41:59.900> ironic<00:42:00.230> because<00:42:00.500> as 00:42:00.820 --> 00:42:00.830 align:start position:0% action and so that's ironic because as 00:42:00.830 --> 00:42:04.030 align:start position:0% action and so that's ironic because as Murray<00:42:01.340> Rothbard<00:42:01.720> detailed<00:42:03.040> Scotland's 00:42:04.030 --> 00:42:04.040 align:start position:0% Murray Rothbard detailed Scotland's 00:42:04.040 --> 00:42:06.520 align:start position:0% Murray Rothbard detailed Scotland's suspended<00:42:04.700> specie<00:42:05.120> Redemption<00:42:05.750> for<00:42:06.380> more 00:42:06.520 --> 00:42:06.530 align:start position:0% suspended specie Redemption for more 00:42:06.530 --> 00:42:09.130 align:start position:0% suspended specie Redemption for more than<00:42:06.650> a<00:42:06.740> decade<00:42:07.300> okay<00:42:08.300> and<00:42:08.480> so<00:42:08.570> again<00:42:08.930> what 00:42:09.130 --> 00:42:09.140 align:start position:0% than a decade okay and so again what 00:42:09.140 --> 00:42:11.320 align:start position:0% than a decade okay and so again what that<00:42:09.170> means<00:42:09.560> is<00:42:09.830> during<00:42:10.220> the<00:42:10.340> period<00:42:10.820> that<00:42:11.150> the 00:42:11.320 --> 00:42:11.330 align:start position:0% that means is during the period that the 00:42:11.330 --> 00:42:13.360 align:start position:0% that means is during the period that the free<00:42:11.570> bankers<00:42:11.990> point<00:42:12.320> at<00:42:12.530> Scotland<00:42:12.860> and<00:42:13.220> say 00:42:13.360 --> 00:42:13.370 align:start position:0% free bankers point at Scotland and say 00:42:13.370 --> 00:42:14.920 align:start position:0% free bankers point at Scotland and say this<00:42:13.520> is<00:42:13.670> a<00:42:13.700> good<00:42:13.970> example<00:42:14.090> you<00:42:14.780> know 00:42:14.920 --> 00:42:14.930 align:start position:0% this is a good example you know 00:42:14.930 --> 00:42:16.750 align:start position:0% this is a good example you know nothing's<00:42:15.260> perfect<00:42:15.470> but<00:42:15.890> this<00:42:16.370> is<00:42:16.490> a<00:42:16.520> good 00:42:16.750 --> 00:42:16.760 align:start position:0% nothing's perfect but this is a good 00:42:16.760 --> 00:42:18.460 align:start position:0% nothing's perfect but this is a good example<00:42:17.060> of<00:42:17.210> our<00:42:17.360> principles<00:42:17.810> and<00:42:17.900> operation 00:42:18.460 --> 00:42:18.470 align:start position:0% example of our principles and operation 00:42:18.470 --> 00:42:20.530 align:start position:0% example of our principles and operation you<00:42:18.590> can<00:42:18.680> see<00:42:18.860> it<00:42:18.980> working<00:42:19.160> here<00:42:19.520> that<00:42:20.420> the 00:42:20.530 --> 00:42:20.540 align:start position:0% you can see it working here that the 00:42:20.540 --> 00:42:22.930 align:start position:0% you can see it working here that the Scottish<00:42:20.840> banks<00:42:21.380> if<00:42:21.500> you<00:42:21.650> showed<00:42:22.310> up<00:42:22.490> and<00:42:22.730> said 00:42:22.930 --> 00:42:22.940 align:start position:0% Scottish banks if you showed up and said 00:42:22.940 --> 00:42:25.150 align:start position:0% Scottish banks if you showed up and said yeah<00:42:23.060> I<00:42:23.270> have<00:42:23.480> gold<00:42:23.990> on<00:42:24.170> deposit<00:42:24.680> with<00:42:24.800> you<00:42:24.920> you 00:42:25.150 --> 00:42:25.160 align:start position:0% yeah I have gold on deposit with you you 00:42:25.160 --> 00:42:27.760 align:start position:0% yeah I have gold on deposit with you you see<00:42:25.340> here<00:42:25.670> it<00:42:25.730> is<00:42:25.850> here's<00:42:26.630> the<00:42:26.750> receipt<00:42:27.110> I<00:42:27.320> like 00:42:27.760 --> 00:42:27.770 align:start position:0% see here it is here's the receipt I like 00:42:27.770 --> 00:42:30.460 align:start position:0% see here it is here's the receipt I like my<00:42:27.920> gold<00:42:28.160> please<00:42:28.460> they<00:42:29.210> would<00:42:29.360> say<00:42:29.510> no<00:42:29.690> you 00:42:30.460 --> 00:42:30.470 align:start position:0% my gold please they would say no you 00:42:30.470 --> 00:42:31.990 align:start position:0% my gold please they would say no you have<00:42:30.740> notes<00:42:31.100> from<00:42:31.280> us<00:42:31.460> that<00:42:31.640> should<00:42:31.790> be<00:42:31.880> good 00:42:31.990 --> 00:42:32.000 align:start position:0% have notes from us that should be good 00:42:32.000 --> 00:42:34.030 align:start position:0% have notes from us that should be good enough<00:42:32.150> for<00:42:32.300> now<00:42:32.360> and<00:42:32.870> it<00:42:33.470> wasn't<00:42:33.650> just<00:42:33.920> that 00:42:34.030 --> 00:42:34.040 align:start position:0% enough for now and it wasn't just that 00:42:34.040 --> 00:42:36.130 align:start position:0% enough for now and it wasn't just that they<00:42:34.220> suspended<00:42:35.030> Redemption<00:42:35.630> for<00:42:35.780> a<00:42:35.810> week<00:42:35.990> or 00:42:36.130 --> 00:42:36.140 align:start position:0% they suspended Redemption for a week or 00:42:36.140 --> 00:42:38.440 align:start position:0% they suspended Redemption for a week or two<00:42:36.290> again<00:42:36.740> it<00:42:36.980> was<00:42:37.100> for<00:42:37.370> a<00:42:37.640> long<00:42:37.970> period<00:42:38.420> of 00:42:38.440 --> 00:42:38.450 align:start position:0% two again it was for a long period of 00:42:38.450 --> 00:42:40.270 align:start position:0% two again it was for a long period of time<00:42:38.510> and<00:42:39.020> that<00:42:39.530> happened<00:42:39.950> during<00:42:40.100> the 00:42:40.270 --> 00:42:40.280 align:start position:0% time and that happened during the 00:42:40.280 --> 00:42:42.520 align:start position:0% time and that happened during the alleged<00:42:40.550> period<00:42:41.270> of<00:42:41.450> the<00:42:42.110> you<00:42:42.200> know<00:42:42.260> the<00:42:42.350> free 00:42:42.520 --> 00:42:42.530 align:start position:0% alleged period of the you know the free 00:42:42.530 --> 00:42:45.540 align:start position:0% alleged period of the you know the free banker<00:42:42.830> success<00:42:43.190> story<00:42:43.490> as<00:42:43.760> far<00:42:44.270> as<00:42:44.390> Canada 00:42:45.540 --> 00:42:45.550 align:start position:0% banker success story as far as Canada 00:42:45.550 --> 00:42:48.280 align:start position:0% banker success story as far as Canada Celgene<00:42:46.550> pointed<00:42:47.420> to<00:42:47.630> and<00:42:47.840> when<00:42:47.960> his<00:42:48.080> blog 00:42:48.280 --> 00:42:48.290 align:start position:0% Celgene pointed to and when his blog 00:42:48.290 --> 00:42:50.560 align:start position:0% Celgene pointed to and when his blog post<00:42:48.560> this<00:42:48.800> book<00:42:49.520> on<00:42:49.700> Canadian<00:42:50.210> banking 00:42:50.560 --> 00:42:50.570 align:start position:0% post this book on Canadian banking 00:42:50.570 --> 00:42:53.380 align:start position:0% post this book on Canadian banking history<00:42:51.070> saying<00:42:52.070> this<00:42:52.340> outlines<00:42:52.850> how<00:42:53.090> great 00:42:53.380 --> 00:42:53.390 align:start position:0% history saying this outlines how great 00:42:53.390 --> 00:42:55.330 align:start position:0% history saying this outlines how great the<00:42:53.690> Canadian<00:42:54.080> system<00:42:54.440> worked<00:42:54.680> at<00:42:54.890> least<00:42:55.130> when 00:42:55.330 --> 00:42:55.340 align:start position:0% the Canadian system worked at least when 00:42:55.340 --> 00:42:56.950 align:start position:0% the Canadian system worked at least when it<00:42:55.430> first<00:42:55.640> started<00:42:56.120> before<00:42:56.600> you<00:42:56.750> know<00:42:56.840> there 00:42:56.950 --> 00:42:56.960 align:start position:0% it first started before you know there 00:42:56.960 --> 00:42:58.420 align:start position:0% it first started before you know there was<00:42:57.140> more<00:42:57.320> and<00:42:57.410> more<00:42:57.560> political<00:42:57.680> intervention 00:42:58.420 --> 00:42:58.430 align:start position:0% was more and more political intervention 00:42:58.430 --> 00:43:00.340 align:start position:0% was more and more political intervention but<00:42:58.940> again<00:42:59.150> in<00:42:59.270> Celgene<00:42:59.660> gives<00:42:59.840> these<00:43:00.020> years 00:43:00.340 --> 00:43:00.350 align:start position:0% but again in Celgene gives these years 00:43:00.350 --> 00:43:02.610 align:start position:0% but again in Celgene gives these years for<00:43:00.620> when<00:43:00.830> the<00:43:01.490> banking<00:43:01.910> system<00:43:02.240> in<00:43:02.360> Canada 00:43:02.610 --> 00:43:02.620 align:start position:0% for when the banking system in Canada 00:43:02.620 --> 00:43:05.170 align:start position:0% for when the banking system in Canada approximated<00:43:03.620> his<00:43:03.890> free<00:43:04.190> banking<00:43:04.520> ideals<00:43:04.940> and 00:43:05.170 --> 00:43:05.180 align:start position:0% approximated his free banking ideals and 00:43:05.180 --> 00:43:07.840 align:start position:0% approximated his free banking ideals and said<00:43:05.660> it<00:43:05.750> was<00:43:05.840> remarkably<00:43:06.320> stable<00:43:06.590> so<00:43:07.430> I<00:43:07.460> went 00:43:07.840 --> 00:43:07.850 align:start position:0% said it was remarkably stable so I went 00:43:07.850 --> 00:43:11.020 align:start position:0% said it was remarkably stable so I went and<00:43:08.030> looked<00:43:08.480> up<00:43:09.050> you<00:43:09.260> know<00:43:09.380> I<00:43:09.560> went<00:43:10.070> and<00:43:10.220> pulled 00:43:11.020 --> 00:43:11.030 align:start position:0% and looked up you know I went and pulled 00:43:11.030 --> 00:43:13.090 align:start position:0% and looked up you know I went and pulled the<00:43:11.150> book<00:43:11.300> up<00:43:11.450> and<00:43:11.570> I<00:43:11.660> saw<00:43:11.870> so<00:43:12.710> this<00:43:12.860> is<00:43:13.010> the 00:43:13.090 --> 00:43:13.100 align:start position:0% the book up and I saw so this is the 00:43:13.100 --> 00:43:14.770 align:start position:0% the book up and I saw so this is the book<00:43:13.220> he<00:43:13.370> was<00:43:13.490> talking<00:43:13.850> about<00:43:13.910> in<00:43:14.270> this<00:43:14.510> the 00:43:14.770 --> 00:43:14.780 align:start position:0% book he was talking about in this the 00:43:14.780 --> 00:43:16.690 align:start position:0% book he was talking about in this the chapter<00:43:15.260> dealing<00:43:15.590> with<00:43:15.830> the<00:43:15.950> time<00:43:16.190> period<00:43:16.460> in 00:43:16.690 --> 00:43:16.700 align:start position:0% chapter dealing with the time period in 00:43:16.700 --> 00:43:20.680 align:start position:0% chapter dealing with the time period in question<00:43:17.860> this<00:43:18.860> is<00:43:19.010> what<00:43:19.160> it<00:43:19.250> says<00:43:19.490> so<00:43:19.790> its 00:43:20.680 --> 00:43:20.690 align:start position:0% question this is what it says so its 00:43:20.690 --> 00:43:22.180 align:start position:0% question this is what it says so its banking<00:43:20.990> under<00:43:21.110> the<00:43:21.200> Confederation<00:43:21.920> the 00:43:22.180 --> 00:43:22.190 align:start position:0% banking under the Confederation the 00:43:22.190 --> 00:43:25.120 align:start position:0% banking under the Confederation the expansion<00:43:23.120> between<00:43:23.270> 1867<00:43:24.170> and<00:43:24.350> 73<00:43:24.830> then 00:43:25.120 --> 00:43:25.130 align:start position:0% expansion between 1867 and 73 then 00:43:25.130 --> 00:43:27.570 align:start position:0% expansion between 1867 and 73 then depression<00:43:25.760> then<00:43:26.300> bank<00:43:26.600> failures<00:43:26.990> and<00:43:27.140> losses 00:43:27.570 --> 00:43:27.580 align:start position:0% depression then bank failures and losses 00:43:27.580 --> 00:43:32.170 align:start position:0% depression then bank failures and losses okay<00:43:28.610> and<00:43:28.790> so<00:43:29.500> it's<00:43:30.500> food<00:43:31.010> which<00:43:31.250> is<00:43:31.280> ironic 00:43:32.170 --> 00:43:32.180 align:start position:0% okay and so it's food which is ironic 00:43:32.180 --> 00:43:34.780 align:start position:0% okay and so it's food which is ironic because<00:43:32.390> this<00:43:33.260> is<00:43:33.470> if<00:43:34.130> Murray<00:43:34.460> Rothbard 00:43:34.780 --> 00:43:34.790 align:start position:0% because this is if Murray Rothbard 00:43:34.790 --> 00:43:37.270 align:start position:0% because this is if Murray Rothbard wanted<00:43:35.450> to<00:43:35.600> point<00:43:35.840> to<00:43:36.050> historical<00:43:36.680> example<00:43:37.160> to 00:43:37.270 --> 00:43:37.280 align:start position:0% wanted to point to historical example to 00:43:37.280 --> 00:43:40.390 align:start position:0% wanted to point to historical example to show<00:43:37.520> this<00:43:38.180> is<00:43:38.360> the<00:43:38.540> danger<00:43:38.930> of<00:43:39.400> unrestrained 00:43:40.390 --> 00:43:40.400 align:start position:0% show this is the danger of unrestrained 00:43:40.400 --> 00:43:42.550 align:start position:0% show this is the danger of unrestrained fractional<00:43:40.940> reserve<00:43:41.180> banking<00:43:41.360> this<00:43:41.810> is<00:43:42.020> the 00:43:42.550 --> 00:43:42.560 align:start position:0% fractional reserve banking this is the 00:43:42.560 --> 00:43:44.860 align:start position:0% fractional reserve banking this is the poster<00:43:42.890> child<00:43:43.100> this<00:43:43.700> is<00:43:43.880> literally<00:43:44.180> exactly 00:43:44.860 --> 00:43:44.870 align:start position:0% poster child this is literally exactly 00:43:44.870 --> 00:43:46.900 align:start position:0% poster child this is literally exactly what<00:43:45.050> the<00:43:45.710> hundred<00:43:45.980> percent<00:43:46.250> reservists<00:43:46.760> say 00:43:46.900 --> 00:43:46.910 align:start position:0% what the hundred percent reservists say 00:43:46.910 --> 00:43:48.340 align:start position:0% what the hundred percent reservists say would<00:43:47.090> happen<00:43:47.450> is<00:43:47.630> that<00:43:47.660> all<00:43:47.870> yeah<00:43:48.020> there's<00:43:48.260> an 00:43:48.340 --> 00:43:48.350 align:start position:0% would happen is that all yeah there's an 00:43:48.350 --> 00:43:50.500 align:start position:0% would happen is that all yeah there's an expansion<00:43:48.710> there's<00:43:49.430> as<00:43:49.550> a<00:43:49.580> parent<00:43:49.910> prosperity 00:43:50.500 --> 00:43:50.510 align:start position:0% expansion there's as a parent prosperity 00:43:50.510 --> 00:43:52.270 align:start position:0% expansion there's as a parent prosperity but<00:43:50.660> then<00:43:50.780> there's<00:43:50.930> an<00:43:51.080> economic<00:43:51.680> crash<00:43:51.890> and 00:43:52.270 --> 00:43:52.280 align:start position:0% but then there's an economic crash and 00:43:52.280 --> 00:43:54.220 align:start position:0% but then there's an economic crash and then<00:43:52.760> there's<00:43:52.910> bankrupt<00:43:53.240> failures<00:43:53.630> that's 00:43:54.220 --> 00:43:54.230 align:start position:0% then there's bankrupt failures that's 00:43:54.230 --> 00:43:56.380 align:start position:0% then there's bankrupt failures that's exactly<00:43:54.680> what<00:43:54.830> it<00:43:54.920> does<00:43:55.070> here<00:43:55.280> and<00:43:55.460> so<00:43:55.640> and 00:43:56.380 --> 00:43:56.390 align:start position:0% exactly what it does here and so and 00:43:56.390 --> 00:43:57.940 align:start position:0% exactly what it does here and so and with<00:43:56.540> some<00:43:56.690> of<00:43:56.720> the<00:43:56.900> back<00:43:57.260> and<00:43:57.440> forth<00:43:57.530> the<00:43:57.770> last 00:43:57.940 --> 00:43:57.950 align:start position:0% with some of the back and forth the last 00:43:57.950 --> 00:44:00.310 align:start position:0% with some of the back and forth the last thing<00:43:58.100> I'll<00:43:58.190> leave<00:43:58.250> you<00:43:58.490> with<00:43:58.610> here<00:43:58.910> is<00:43:59.320> for 00:44:00.310 --> 00:44:00.320 align:start position:0% thing I'll leave you with here is for 00:44:00.320 --> 00:44:02.530 align:start position:0% thing I'll leave you with here is for more<00:44:00.500> reading<00:44:00.800> so<00:44:00.980> I<00:44:01.010> the<00:44:01.820> stuff<00:44:02.030> I'm<00:44:02.150> drawn<00:44:02.390> on 00:44:02.530 --> 00:44:02.540 align:start position:0% more reading so I the stuff I'm drawn on 00:44:02.540 --> 00:44:04.690 align:start position:0% more reading so I the stuff I'm drawn on this<00:44:02.720> talk<00:44:02.990> I<00:44:03.350> had<00:44:03.800> to<00:44:03.920> come<00:44:04.130> out<00:44:04.220> a<00:44:04.280> recent 00:44:04.690 --> 00:44:04.700 align:start position:0% this talk I had to come out a recent 00:44:04.700 --> 00:44:08.290 align:start position:0% this talk I had to come out a recent paper<00:44:04.850> in<00:44:05.300> the<00:44:05.900> qje<00:44:06.380> in<00:44:07.280> the<00:44:07.400> spring<00:44:07.640> of<00:44:07.760> 2019 00:44:08.290 --> 00:44:08.300 align:start position:0% paper in the qje in the spring of 2019 00:44:08.300 --> 00:44:10.240 align:start position:0% paper in the qje in the spring of 2019 more<00:44:09.110> than<00:44:09.260> quibbles<00:44:09.710> problems 00:44:10.240 --> 00:44:10.250 align:start position:0% more than quibbles problems 00:44:10.250 --> 00:44:11.470 align:start position:0% more than quibbles problems theory<00:44:10.490> and<00:44:10.550> history<00:44:10.760> of<00:44:11.030> fractional-reserve 00:44:11.470 --> 00:44:11.480 align:start position:0% theory and history of fractional-reserve 00:44:11.480 --> 00:44:13.120 align:start position:0% theory and history of fractional-reserve free<00:44:12.020> banking<00:44:12.350> if<00:44:12.470> you<00:44:12.560> want<00:44:12.710> to<00:44:12.770> see<00:44:12.860> more<00:44:13.070> of 00:44:13.120 --> 00:44:13.130 align:start position:0% free banking if you want to see more of 00:44:13.130 --> 00:44:15.550 align:start position:0% free banking if you want to see more of this<00:44:13.250> and<00:44:13.460> just<00:44:14.240> so<00:44:14.480> he<00:44:14.600> doesn't<00:44:15.110> think<00:44:15.410> I'm 00:44:15.550 --> 00:44:15.560 align:start position:0% this and just so he doesn't think I'm 00:44:15.560 --> 00:44:17.800 align:start position:0% this and just so he doesn't think I'm ignoring<00:44:15.710> him<00:44:16.070> so<00:44:16.280> Celgene<00:44:16.760> did<00:44:16.910> respond<00:44:17.420> to 00:44:17.800 --> 00:44:17.810 align:start position:0% ignoring him so Celgene did respond to 00:44:17.810 --> 00:44:20.500 align:start position:0% ignoring him so Celgene did respond to when<00:44:18.530> to<00:44:18.950> this<00:44:19.310> talk<00:44:19.550> I<00:44:19.700> just<00:44:19.730> gave<00:44:20.030> he<00:44:20.210> had<00:44:20.420> an 00:44:20.500 --> 00:44:20.510 align:start position:0% when to this talk I just gave he had an 00:44:20.510 --> 00:44:22.090 align:start position:0% when to this talk I just gave he had an earlier<00:44:20.810> response<00:44:21.290> to<00:44:21.440> that<00:44:21.590> which<00:44:21.860> you<00:44:21.890> can 00:44:22.090 --> 00:44:22.100 align:start position:0% earlier response to that which you can 00:44:22.100 --> 00:44:23.470 align:start position:0% earlier response to that which you can see<00:44:22.280> if<00:44:22.370> he<00:44:22.490> just<00:44:22.670> you<00:44:22.910> know<00:44:22.970> Google<00:44:23.270> Bob 00:44:23.470 --> 00:44:23.480 align:start position:0% see if he just you know Google Bob 00:44:23.480 --> 00:44:25.090 align:start position:0% see if he just you know Google Bob Murphy<00:44:23.750> on<00:44:23.930> free<00:44:24.140> banking<00:44:24.500> in<00:44:24.560> Canada<00:44:24.950> you'll 00:44:25.090 --> 00:44:25.100 align:start position:0% Murphy on free banking in Canada you'll 00:44:25.100 --> 00:44:27.430 align:start position:0% Murphy on free banking in Canada you'll see<00:44:25.340> but<00:44:26.150> if<00:44:26.540> you<00:44:26.630> go<00:44:26.780> look<00:44:27.020> at<00:44:27.140> it 00:44:27.430 --> 00:44:27.440 align:start position:0% see but if you go look at it 00:44:27.440 --> 00:44:28.840 align:start position:0% see but if you go look at it you<00:44:27.500> know<00:44:27.620> it's<00:44:28.040> not<00:44:28.190> that<00:44:28.370> I'm<00:44:28.460> ignoring<00:44:28.730> it 00:44:28.840 --> 00:44:28.850 align:start position:0% you know it's not that I'm ignoring it 00:44:28.850 --> 00:44:29.980 align:start position:0% you know it's not that I'm ignoring it it's<00:44:29.030> not<00:44:29.120> it's<00:44:29.240> that<00:44:29.270> we're<00:44:29.450> talking<00:44:29.780> past 00:44:29.980 --> 00:44:29.990 align:start position:0% it's not it's that we're talking past 00:44:29.990 --> 00:44:32.110 align:start position:0% it's not it's that we're talking past each<00:44:30.140> other<00:44:30.290> like<00:44:30.590> what<00:44:31.070> Celgene<00:44:31.550> does<00:44:31.790> is 00:44:32.110 --> 00:44:32.120 align:start position:0% each other like what Celgene does is 00:44:32.120 --> 00:44:34.240 align:start position:0% each other like what Celgene does is just<00:44:33.080> point<00:44:33.350> out<00:44:33.470> oh<00:44:33.500> well<00:44:33.830> there's<00:44:33.980> certain 00:44:34.240 --> 00:44:34.250 align:start position:0% just point out oh well there's certain 00:44:34.250 --> 00:44:35.260 align:start position:0% just point out oh well there's certain other<00:44:34.370> things<00:44:34.430> that<00:44:34.820> we're<00:44:34.940> good<00:44:35.090> in<00:44:35.120> the 00:44:35.260 --> 00:44:35.270 align:start position:0% other things that we're good in the 00:44:35.270 --> 00:44:36.820 align:start position:0% other things that we're good in the Canadian<00:44:35.720> system<00:44:35.990> like<00:44:36.290> the<00:44:36.380> allocated 00:44:36.820 --> 00:44:36.830 align:start position:0% Canadian system like the allocated 00:44:36.830 --> 00:44:39.810 align:start position:0% Canadian system like the allocated credit<00:44:37.250> and<00:44:37.340> went<00:44:37.460> and<00:44:37.610> that's<00:44:38.420> difficult<00:44:39.200> to 00:44:39.810 --> 00:44:39.820 align:start position:0% credit and went and that's difficult to 00:44:39.820 --> 00:44:42.490 align:start position:0% credit and went and that's difficult to quantify<00:44:40.820> number<00:44:41.360> one<00:44:41.510> but<00:44:41.690> also<00:44:41.840> that's<00:44:42.290> not 00:44:42.490 --> 00:44:42.500 align:start position:0% quantify number one but also that's not 00:44:42.500 --> 00:44:44.430 align:start position:0% quantify number one but also that's not really<00:44:42.770> what<00:44:43.190> the<00:44:43.280> claim<00:44:43.520> was<00:44:43.730> that<00:44:43.760> the<00:44:44.030> the 00:44:44.430 --> 00:44:44.440 align:start position:0% really what the claim was that the the 00:44:44.440 --> 00:44:46.840 align:start position:0% really what the claim was that the the Rothbard<00:44:45.440> Ian<00:44:45.650> type<00:44:45.890> claim<00:44:46.280> that<00:44:46.580> I<00:44:46.640> think 00:44:46.840 --> 00:44:46.850 align:start position:0% Rothbard Ian type claim that I think 00:44:46.850 --> 00:44:49.060 align:start position:0% Rothbard Ian type claim that I think goes<00:44:46.940> back<00:44:46.970> to<00:44:47.300> Mises<00:44:47.720> is<00:44:47.900> that<00:44:48.530> fractional 00:44:49.060 --> 00:44:49.070 align:start position:0% goes back to Mises is that fractional 00:44:49.070 --> 00:44:51.670 align:start position:0% goes back to Mises is that fractional reserve<00:44:49.280> banking<00:44:49.520> per<00:44:50.030> se<00:44:50.560> causes<00:44:51.560> the 00:44:51.670 --> 00:44:51.680 align:start position:0% reserve banking per se causes the 00:44:51.680 --> 00:44:53.200 align:start position:0% reserve banking per se causes the business<00:44:52.010> cycle<00:44:52.160> the<00:44:52.370> boom-bust<00:44:52.760> cycle 00:44:53.200 --> 00:44:53.210 align:start position:0% business cycle the boom-bust cycle 00:44:53.210 --> 00:44:55.750 align:start position:0% business cycle the boom-bust cycle because<00:44:53.480> you're<00:44:53.690> when<00:44:54.590> banks<00:44:54.980> lend<00:44:55.640> money 00:44:55.750 --> 00:44:55.760 align:start position:0% because you're when banks lend money 00:44:55.760 --> 00:44:57.730 align:start position:0% because you're when banks lend money that<00:44:56.300> hasn't<00:44:56.510> first<00:44:56.810> been<00:44:57.020> deposited<00:44:57.620> with 00:44:57.730 --> 00:44:57.740 align:start position:0% that hasn't first been deposited with 00:44:57.740 --> 00:45:00.600 align:start position:0% that hasn't first been deposited with them<00:44:57.890> from<00:44:58.040> savers<00:44:58.420> they're<00:44:59.420> in<00:44:59.570> a<00:44:59.660> sense 00:45:00.600 --> 00:45:00.610 align:start position:0% them from savers they're in a sense 00:45:00.610 --> 00:45:02.740 align:start position:0% them from savers they're in a sense acting<00:45:01.610> as<00:45:01.700> if<00:45:01.850> there's<00:45:02.000> more<00:45:02.150> savings<00:45:02.630> and 00:45:02.740 --> 00:45:02.750 align:start position:0% acting as if there's more savings and 00:45:02.750 --> 00:45:03.790 align:start position:0% acting as if there's more savings and there<00:45:02.840> really<00:45:02.990> are<00:45:03.170> that<00:45:03.320> pushes<00:45:03.650> down 00:45:03.790 --> 00:45:03.800 align:start position:0% there really are that pushes down 00:45:03.800 --> 00:45:04.930 align:start position:0% there really are that pushes down interest<00:45:04.040> rates<00:45:04.160> that's<00:45:04.460> not<00:45:04.610> the<00:45:04.730> correct 00:45:04.930 --> 00:45:04.940 align:start position:0% interest rates that's not the correct 00:45:04.940 --> 00:45:06.730 align:start position:0% interest rates that's not the correct interest<00:45:05.240> rate<00:45:05.510> and<00:45:05.720> that<00:45:06.230> causes<00:45:06.500> the 00:45:06.730 --> 00:45:06.740 align:start position:0% interest rate and that causes the 00:45:06.740 --> 00:45:08.080 align:start position:0% interest rate and that causes the boom-bust<00:45:07.100> cycle<00:45:07.460> or<00:45:07.550> at<00:45:07.610> least<00:45:07.760> that's<00:45:07.910> the 00:45:08.080 --> 00:45:08.090 align:start position:0% boom-bust cycle or at least that's the 00:45:08.090 --> 00:45:10.690 align:start position:0% boom-bust cycle or at least that's the claim<00:45:08.330> and<00:45:08.630> so<00:45:09.260> to<00:45:09.860> point<00:45:10.100> to<00:45:10.250> an<00:45:10.370> example 00:45:10.690 --> 00:45:10.700 align:start position:0% claim and so to point to an example 00:45:10.700 --> 00:45:12.040 align:start position:0% claim and so to point to an example where<00:45:10.970> there<00:45:11.060> was<00:45:11.210> clearly<00:45:11.240> a<00:45:11.600> boom<00:45:11.810> bust 00:45:12.040 --> 00:45:12.050 align:start position:0% where there was clearly a boom bust 00:45:12.050 --> 00:45:13.360 align:start position:0% where there was clearly a boom bust cycle<00:45:12.380> right<00:45:12.560> after<00:45:12.770> this<00:45:12.920> system<00:45:13.220> was 00:45:13.360 --> 00:45:13.370 align:start position:0% cycle right after this system was 00:45:13.370 --> 00:45:15.850 align:start position:0% cycle right after this system was instituted<00:45:13.820> is<00:45:14.230> entirely<00:45:15.230> consistent<00:45:15.650> with 00:45:15.850 --> 00:45:15.860 align:start position:0% instituted is entirely consistent with 00:45:15.860 --> 00:45:17.650 align:start position:0% instituted is entirely consistent with that<00:45:16.010> so<00:45:16.100> Celgene<00:45:16.550> doesn't<00:45:16.880> go<00:45:16.940> through<00:45:17.300> and 00:45:17.650 --> 00:45:17.660 align:start position:0% that so Celgene doesn't go through and 00:45:17.660 --> 00:45:20.530 align:start position:0% that so Celgene doesn't go through and try<00:45:18.470> to<00:45:18.560> explain<00:45:19.070> why<00:45:19.760> it<00:45:19.820> doesn't<00:45:20.120> cause<00:45:20.390> the 00:45:20.530 --> 00:45:20.540 align:start position:0% try to explain why it doesn't cause the 00:45:20.540 --> 00:45:22.060 align:start position:0% try to explain why it doesn't cause the boom-bust<00:45:20.870> cycle<00:45:21.170> he<00:45:21.290> just<00:45:21.470> you<00:45:21.710> know<00:45:21.740> points 00:45:22.060 --> 00:45:22.070 align:start position:0% boom-bust cycle he just you know points 00:45:22.070 --> 00:45:25.300 align:start position:0% boom-bust cycle he just you know points to<00:45:22.160> other<00:45:22.600> issues<00:45:23.600> so<00:45:24.170> partly<00:45:25.100> it's 00:45:25.300 --> 00:45:25.310 align:start position:0% to other issues so partly it's 00:45:25.310 --> 00:45:27.070 align:start position:0% to other issues so partly it's disappointing<00:45:25.700> because<00:45:25.910> we're<00:45:26.480> talking<00:45:26.870> past 00:45:27.070 --> 00:45:27.080 align:start position:0% disappointing because we're talking past 00:45:27.080 --> 00:45:28.090 align:start position:0% disappointing because we're talking past each<00:45:27.200> other<00:45:27.380> the<00:45:27.440> last<00:45:27.650> thing<00:45:27.830> I'll<00:45:27.950> mention 00:45:28.090 --> 00:45:28.100 align:start position:0% each other the last thing I'll mention 00:45:28.100 --> 00:45:30.820 align:start position:0% each other the last thing I'll mention is<00:45:28.460> one<00:45:29.420> of<00:45:29.510> the<00:45:29.600> things<00:45:29.840> Celgene<00:45:30.350> does<00:45:30.530> is 00:45:30.820 --> 00:45:30.830 align:start position:0% is one of the things Celgene does is 00:45:30.830 --> 00:45:33.460 align:start position:0% is one of the things Celgene does is he'll<00:45:31.070> contrast<00:45:31.580> the<00:45:31.790> US<00:45:32.090> experience<00:45:32.810> with 00:45:33.460 --> 00:45:33.470 align:start position:0% he'll contrast the US experience with 00:45:33.470 --> 00:45:35.020 align:start position:0% he'll contrast the US experience with the<00:45:33.560> Canadian<00:45:33.980> experience<00:45:34.340> and<00:45:34.610> it's<00:45:34.730> true 00:45:35.020 --> 00:45:35.030 align:start position:0% the Canadian experience and it's true 00:45:35.030 --> 00:45:37.780 align:start position:0% the Canadian experience and it's true the<00:45:35.960> u.s.<00:45:36.320> like<00:45:36.620> during<00:45:36.830> the<00:45:36.860> 1930s<00:45:37.640> there 00:45:37.780 --> 00:45:37.790 align:start position:0% the u.s. like during the 1930s there 00:45:37.790 --> 00:45:39.640 align:start position:0% the u.s. like during the 1930s there were<00:45:37.910> a<00:45:37.940> lot<00:45:38.420> of<00:45:38.450> bank<00:45:38.780> failures<00:45:39.170> in<00:45:39.290> the<00:45:39.380> u.s. 00:45:39.640 --> 00:45:39.650 align:start position:0% were a lot of bank failures in the u.s. 00:45:39.650 --> 00:45:42.070 align:start position:0% were a lot of bank failures in the u.s. there<00:45:39.920> weren't<00:45:40.190> in<00:45:40.310> Canada<00:45:40.790> and<00:45:41.000> that<00:45:41.660> has<00:45:41.900> to 00:45:42.070 --> 00:45:42.080 align:start position:0% there weren't in Canada and that has to 00:45:42.080 --> 00:45:45.040 align:start position:0% there weren't in Canada and that has to do<00:45:42.260> with<00:45:43.240> various<00:45:44.240> restrictions<00:45:44.450> like<00:45:44.900> on 00:45:45.040 --> 00:45:45.050 align:start position:0% do with various restrictions like on 00:45:45.050 --> 00:45:46.570 align:start position:0% do with various restrictions like on what's<00:45:45.230> called<00:45:45.410> unit<00:45:45.680> banking<00:45:45.890> laws<00:45:46.280> in<00:45:46.520> the 00:45:46.570 --> 00:45:46.580 align:start position:0% what's called unit banking laws in the 00:45:46.580 --> 00:45:47.260 align:start position:0% what's called unit banking laws in the United<00:45:46.880> States 00:45:47.260 --> 00:45:47.270 align:start position:0% United States 00:45:47.270 --> 00:45:52.330 align:start position:0% United States so<00:45:47.900> what<00:45:48.080> Celgene<00:45:48.560> can<00:45:49.190> do<00:45:49.400> is<00:45:49.700> show<00:45:51.340> systems 00:45:52.330 --> 00:45:52.340 align:start position:0% so what Celgene can do is show systems 00:45:52.340 --> 00:45:54.370 align:start position:0% so what Celgene can do is show systems that<00:45:53.210> had<00:45:53.360> a<00:45:53.390> lot<00:45:53.630> more<00:45:53.660> government 00:45:54.370 --> 00:45:54.380 align:start position:0% that had a lot more government 00:45:54.380 --> 00:45:56.470 align:start position:0% that had a lot more government intervention<00:45:54.610> than<00:45:55.610> the<00:45:55.730> places<00:45:56.180> that<00:45:56.270> he's 00:45:56.470 --> 00:45:56.480 align:start position:0% intervention than the places that he's 00:45:56.480 --> 00:45:58.420 align:start position:0% intervention than the places that he's holding<00:45:57.050> up<00:45:57.170> his<00:45:57.200> ideal<00:45:57.710> free<00:45:58.010> banking 00:45:58.420 --> 00:45:58.430 align:start position:0% holding up his ideal free banking 00:45:58.430 --> 00:46:00.970 align:start position:0% holding up his ideal free banking scenarios<00:45:59.150> had<00:45:59.990> a<00:46:00.020> lot<00:46:00.260> worse<00:46:00.290> things<00:46:00.470> happen 00:46:00.970 --> 00:46:00.980 align:start position:0% scenarios had a lot worse things happen 00:46:00.980 --> 00:46:04.720 align:start position:0% scenarios had a lot worse things happen in<00:46:01.490> their<00:46:01.910> financial<00:46:02.210> system<00:46:03.160> yeah<00:46:04.160> of<00:46:04.460> course 00:46:04.720 --> 00:46:04.730 align:start position:0% in their financial system yeah of course 00:46:04.730 --> 00:46:08.020 align:start position:0% in their financial system yeah of course that's<00:46:04.880> true<00:46:05.180> right<00:46:05.990> just<00:46:06.200> like<00:46:06.490> I<00:46:07.490> wouldn't 00:46:08.020 --> 00:46:08.030 align:start position:0% that's true right just like I wouldn't 00:46:08.030 --> 00:46:10.540 align:start position:0% that's true right just like I wouldn't but<00:46:08.870> but<00:46:09.050> it's<00:46:09.380> like<00:46:09.500> saying<00:46:09.740> price<00:46:10.160> controls 00:46:10.540 --> 00:46:10.550 align:start position:0% but but it's like saying price controls 00:46:10.550 --> 00:46:12.460 align:start position:0% but but it's like saying price controls aren't<00:46:10.760> a<00:46:10.790> big<00:46:10.940> deal<00:46:11.000> because<00:46:11.900> look<00:46:12.080> at<00:46:12.170> New 00:46:12.460 --> 00:46:12.470 align:start position:0% aren't a big deal because look at New 00:46:12.470 --> 00:46:13.750 align:start position:0% aren't a big deal because look at New York<00:46:12.500> City<00:46:12.650> right<00:46:13.040> now<00:46:13.070> look<00:46:13.400> at<00:46:13.490> the<00:46:13.550> price 00:46:13.750 --> 00:46:13.760 align:start position:0% York City right now look at the price 00:46:13.760 --> 00:46:15.640 align:start position:0% York City right now look at the price controls<00:46:14.180> would<00:46:14.930> you<00:46:15.050> rather<00:46:15.200> live<00:46:15.440> in<00:46:15.470> New 00:46:15.640 --> 00:46:15.650 align:start position:0% controls would you rather live in New 00:46:15.650 --> 00:46:18.430 align:start position:0% controls would you rather live in New York<00:46:15.770> City<00:46:15.980> or<00:46:16.100> the<00:46:16.220> Soviet<00:46:16.610> Union<00:46:17.200> right<00:46:18.200> you 00:46:18.430 --> 00:46:18.440 align:start position:0% York City or the Soviet Union right you 00:46:18.440 --> 00:46:19.900 align:start position:0% York City or the Soviet Union right you see<00:46:18.590> is<00:46:18.650> it<00:46:18.740> I'm<00:46:18.830> saying<00:46:19.070> that<00:46:19.640> doesn't 00:46:19.900 --> 00:46:19.910 align:start position:0% see is it I'm saying that doesn't 00:46:19.910 --> 00:46:21.430 align:start position:0% see is it I'm saying that doesn't exonerate<00:46:20.150> price<00:46:20.600> controls<00:46:20.960> it<00:46:21.110> just<00:46:21.260> means 00:46:21.430 --> 00:46:21.440 align:start position:0% exonerate price controls it just means 00:46:21.440 --> 00:46:23.110 align:start position:0% exonerate price controls it just means yeah<00:46:21.620> that<00:46:21.830> by<00:46:22.010> itself<00:46:22.310> isn't<00:46:22.520> as<00:46:22.730> bad<00:46:22.970> as 00:46:23.110 --> 00:46:23.120 align:start position:0% yeah that by itself isn't as bad as 00:46:23.120 --> 00:46:23.570 align:start position:0% yeah that by itself isn't as bad as outright 00:46:23.570 --> 00:46:23.580 align:start position:0% outright 00:46:23.580 --> 00:46:25.760 align:start position:0% outright full-blown<00:46:24.510> central<00:46:24.930> planning<00:46:25.200> so<00:46:25.320> likewise 00:46:25.760 --> 00:46:25.770 align:start position:0% full-blown central planning so likewise 00:46:25.770 --> 00:46:28.040 align:start position:0% full-blown central planning so likewise if<00:46:26.220> Celgene<00:46:26.910> is<00:46:26.970> pointing<00:46:27.300> to<00:46:27.420> a<00:46:27.450> country<00:46:28.020> that 00:46:28.040 --> 00:46:28.050 align:start position:0% if Celgene is pointing to a country that 00:46:28.050 --> 00:46:31.130 align:start position:0% if Celgene is pointing to a country that had<00:46:28.320> fractional<00:46:28.860> reserve<00:46:29.070> banking<00:46:29.990> backed<00:46:30.990> up 00:46:31.130 --> 00:46:31.140 align:start position:0% had fractional reserve banking backed up 00:46:31.140 --> 00:46:33.200 align:start position:0% had fractional reserve banking backed up by<00:46:31.260> government<00:46:31.290> privileges<00:46:32.130> and<00:46:32.310> cartels<00:46:32.700> for 00:46:33.200 --> 00:46:33.210 align:start position:0% by government privileges and cartels for 00:46:33.210 --> 00:46:35.630 align:start position:0% by government privileges and cartels for the<00:46:33.270> banks<00:46:33.570> and<00:46:33.810> also<00:46:34.560> had<00:46:34.770> restrictions<00:46:35.250> on 00:46:35.630 --> 00:46:35.640 align:start position:0% the banks and also had restrictions on 00:46:35.640 --> 00:46:37.790 align:start position:0% the banks and also had restrictions on you<00:46:36.060> know<00:46:36.150> branch<00:46:36.660> banking<00:46:37.380> or<00:46:37.530> had<00:46:37.680> other 00:46:37.790 --> 00:46:37.800 align:start position:0% you know branch banking or had other 00:46:37.800 --> 00:46:39.740 align:start position:0% you know branch banking or had other sorts<00:46:38.160> of<00:46:38.250> things<00:46:38.490> that<00:46:38.550> the<00:46:38.700> banks<00:46:39.570> had<00:46:39.690> to 00:46:39.740 --> 00:46:39.750 align:start position:0% sorts of things that the banks had to 00:46:39.750 --> 00:46:41.330 align:start position:0% sorts of things that the banks had to buy<00:46:39.870> government<00:46:40.290> bonds<00:46:40.440> where<00:46:40.710> yeah<00:46:41.130> that's 00:46:41.330 --> 00:46:41.340 align:start position:0% buy government bonds where yeah that's 00:46:41.340 --> 00:46:42.710 align:start position:0% buy government bonds where yeah that's gonna<00:46:41.520> be<00:46:41.670> worse<00:46:41.850> than<00:46:42.090> a<00:46:42.180> place<00:46:42.390> that's<00:46:42.630> a 00:46:42.710 --> 00:46:42.720 align:start position:0% gonna be worse than a place that's a 00:46:42.720 --> 00:46:45.200 align:start position:0% gonna be worse than a place that's a free<00:46:42.930> banking<00:46:43.260> ideal<00:46:43.740> but<00:46:44.640> as<00:46:44.790> we've<00:46:45.000> seen 00:46:45.200 --> 00:46:45.210 align:start position:0% free banking ideal but as we've seen 00:46:45.210 --> 00:46:47.000 align:start position:0% free banking ideal but as we've seen even<00:46:45.750> the<00:46:45.780> place<00:46:46.020> he<00:46:46.200> holds<00:46:46.410> up<00:46:46.500> as<00:46:46.620> they<00:46:46.770> deal 00:46:47.000 --> 00:46:47.010 align:start position:0% even the place he holds up as they deal 00:46:47.010 --> 00:46:49.070 align:start position:0% even the place he holds up as they deal they<00:46:47.370> still<00:46:47.640> suspend<00:46:48.030> specie<00:46:48.420> Redemption<00:46:48.960> in 00:46:49.070 --> 00:46:49.080 align:start position:0% they still suspend specie Redemption in 00:46:49.080 --> 00:46:50.930 align:start position:0% they still suspend specie Redemption in the<00:46:49.590> other<00:46:49.740> example<00:46:50.250> they<00:46:50.460> still<00:46:50.700> have 00:46:50.930 --> 00:46:50.940 align:start position:0% the other example they still have 00:46:50.940 --> 00:46:53.240 align:start position:0% the other example they still have depression<00:46:51.630> and<00:46:51.840> bank<00:46:52.050> failures<00:46:52.410> okay<00:46:53.010> that's 00:46:53.240 --> 00:46:53.250 align:start position:0% depression and bank failures okay that's 00:46:53.250 --> 00:46:54.440 align:start position:0% depression and bank failures okay that's my<00:46:53.400> time<00:46:53.580> thanks<00:46:53.880> everybody 00:46:54.440 --> 00:46:54.450 align:start position:0% my time thanks everybody 00:46:54.450 --> 00:47:04.290 align:start position:0% my time thanks everybody [Applause]