The Importance of Sound Money (Robert P. Murphy - Acton Institute)

In this Acton Lecture Series address, Robert P. Murphy explains how money emerged naturally from voluntary trades, and not from government edicts; describes the operation of the classical gold standard, and how governments, including ours, wrecked it; and provides insight into the problems of government fiat money, pointing out that the danger is not simply runaway price inflation (bad as that is), but also that business owners can't plan as well for the future. Furthermore, if new money comes in through the credit markets (as is typical), it causes the boom/bust cycle.
Robert P. Murphy is the Senior Economist for the Institute for Energy Research (IER) and a Research Fellow at the Independent Institute. He has a PhD in economics from New York University. Murphy is the author of several books, including The Politically Incorrect Guide to Capitalism (Regnery 2007) and Lessons for the Young Economist (Mises Institute 2010). He runs the blog ‘Free Advice’ at: www.ConsultingByRPM.com.
This lecture took place on November 4, 2014 in Grand Rapids, Michigan.

[@Samsgarden]

Man, it's a real shame no one frequents these threads. Socialism is rising and these ideas are getting left behind. I'm quite convinced that the Austrians are preaching to the converted. They need to get out into the public space and debate. Zero exposure

[@mannylora]

Yes, I agree. Socialism is rising and there's nothing that can stop as long as the public is misinformed and misguided. I'm still in the learning stages of Austrian economics but I transmit what I know to everyone around me to the best of my ability. And I won't stop.

[@TheThreatenedSwan]

Samsgarden Rising in belief in the millenial generation, but worse than ever if implemented, and gen Z is far more to the right than previous generations. And also millenial hold a weird collection of beliefs that don't align with one ideology

[@deathstarwontsaveyou9892]

Its almost 2021 and it's getting worse, I have never seen so much anti capitalist attitudes in my life.

[@xealit]

yeah, it is a real shame.

[@the_real_economics]

Nowadays, the useless econ universities teach only Keynes and Friedman. Only when you leave university and feel like that the stuff you learnt is bunch of BS, you come across Austrian school. However, majority learns socialism economics at universities.

[@tcomben]

I wish Bob Murphy was my uncle and Tom Woods was my adopted father.

[@soapbxprod]

ME TOO but I'm older than both of them- LOL! And I also wish that Kennedy was my "friend with benefits"... that sexy manx...

[@widehotep9257]

So they could lie to you about money creation mechanics and trick you with the discredited Money Multiplier Effect?

[@bronsinxc]

@@widehotep9257 somebody woke up and decided to rip on somebody's comment from 6 years ago lmao. Nice life bro

[@widehotep9257]

@@bronsinxc I correct lies and disinformation about money creation whenever I see them. Woods and Murphy STILL push the discredited "money multiplier effect" even after people like me have tried correcting them countless times.

[@dustinabc]

17.9 trillion. Those were the days.

[@mrleafbeef634]

Now its at $30 trillion or close to that

[@lightningmcqueer6684]

@@mrleafbeef634TRY 35

[@TXLionHeart]

Who else misses the 110,000 pallets of $100 bills that we've lost since the filming of this video? 😭

[@TheSpicyLeg]

You thought this was bad, you will cry in 2021.

[@BobWidlefish]

35:40 ”it’s hard to make change with cattle.” -Bob Murphy

[@campelodemagalhaes]

That sentence with no context can be interpreted in many ways ;)

[@eKoush]

voice activated technology... haha

[@scawarren]

Excellent lecture so thank you for the upload, Action Institute.

[@soapbxprod]

ACTON

[@kurtjohansson1265]

End the Fed. Help me say it.

[@ronpaulrevered]

I like that purple brown suite coat. Bob you schnazy dresser you.

[@soapbxprod]

BOB ROCKS! BOB ROCKS! :)

[@Reaction1s]

@9:52 that thought must be completed. The subjective value is what is sold. The nominal value is what is bought. In any exchange, regardless of a difference in medium, a sell is of the equitable value for the other party and a buy is of the equivalent value(a.k a market price) for the product or service. Price gouging is the easiest example. Edit @13:14 - enter the division of labor... earlier...Marx bad...gtfoh @15:24 - enter fiat... earlier....fiat bad

[@wowhallo]

inflation in stocks, bonds and houses

[@xealit]

yep, yep..

[@the_real_economics]

Nowadays, they do not call it inflation, they call it wealth creation, asset appreciation. Even though it is beyond fundamentals.

[@boscochou9710]

28.9 trillion and counting!

[@mrleafbeef634]

Central banks & gov is the threat. Let alone the 2 parties...

[@xealit]

54:30 "the culture itself has shifted; it is hard to remember what it was like before, but the Fed used to be really boring" - oops 59:30 "the Fed could create a quadrillion of dollars tomorrow, if they wanted to" - please don't say it :(

[@herzogsbuick]

this is coming from a musician: the guy introducing Bob has excellent mic control. considering how difficult it is to hear lectures I want to hear, it was wanted. he also had an excellent sense of humor, which is something no one will understand unless his mic control sufficiently conveyed the humor. which it did. and now we have bob's lapel mic picking up room modes. gross. extra gross cause he has a sense of humor.

[@puremusicdaz]

coming from an engineer, they just need some compressors. and millions of views.

[@MrWrklez]

US national debt is now 27.25 Trillion

[@deathstarwontsaveyou9892]

Dont worry as long as joe biden keeps condemning white supremacy our national debt will take care of itself.

[@xealit]

why would you worry? they have a woman in charge now! that's what's important.

[@widehotep9257]

No worries for now with low interest rates. But if short term rates on T-bills ever spike (that is how most Fed debt is held), we will suffer a financial train wreck like nothing you can imagine!

[@DanielJones117]

31 trillion and counting 10/05/22

[@ast453000]

Listening to Bob try to explain what money is, is like listening to a blind man explain what colors are. Also, he commits a crime at 24:00.

[@BobWidlefish]

I thought his explanation of money was acceptable, albeit clearly aimed at a casual audience. Regarding the bill, one could argue that particular act is protected by 1st amendment precedent. There are laws against defacing bills, but it's doubtful a charge would stand up if challenged on free speech grounds. You may not have thought it was an exercise of free speech, but I certainly did. Some people burn flags, others tear federal reserve notes.

[@soapbxprod]

And where exactly did you earn your Doctorate in Econ? What is your NAME?

[@Tenebrousable]

Who does it better?

[@BobWidlefish]

Tenebrousable Many would say (with good cause) Mises and Rothbard provide compelling explanations of what money is.

[@Tenebrousable]

BobWidlefish Sorry, but I was asking from ast453000. I understand and agree with what Austrians are saying. I just wanted a definition from Keynesian to bash.

[@derektaylor7624]

Who else came here because of CLI’s economics course?

[@xealit]

nope, I just watched his lecture on "Rothbardians VS Free Bankers". Brilliant stuff!

[@widehotep9257]

Talks for an hour and NEVER explains that ALL money is created out of thin air when private banks issue loans, and that 97% of all money exists only in the computers of private banks. Maybe that is why his prediction for hyperinflation in 2010 was wrong; because he has no idea how money is actually created, or by whom. 49:50 He still believes in the thoroughly-debunked "Money Multiplier Myth!"

[@lowrydan111]

Ah, a Jeff Snyder acolyte

[@widehotep9257]

@@lowrydan111 Never heard of Jeff Snyder, but I will look him up. Richard Werner is the most important economist of our time because in 2014 he empirically proved banks create money when they issue loans with no need for deposits or reserves. This empirical test destroyed the "fractional-reserve" myth. But the Austrian economists never got the memo and keep parroting a debunked theory without ever testing it. Even the Bank of England has admitted Werner is right, but not the Austrian economists. Stupid or evil? You decide.

[@joseornelas1718]

Meh. Your bank doesn't get that "money" until the Fed prints it. It keeps taking deposits and maybe has an outstanding ratio of 3.5 to 1. Eventually Fed ships the difference. HOWEVER if 10 to 1 was not allowed banks would be much more judicious, absolutely no NINJA loans no matter what FANNIE sez. Your college loan would be higher.