07/17 Prof. A. Fekete: Real Bills
This is the seventh video (11 minutes long) from Professor Fekete in a series of 17 short videos.
(Here are links to the previous videos:
We’ve learnt a great deal from the Professor since first seeing him in Canberra back in 2009. And so we’ve featured much of the Professors writings, theories and interviews since then. These short videos are perhaps the most accessible we’ve seen of his work and so are highly recommended for those both new to the realm of the monetary metals, as well as those who have “been around the block”.
In this video the professor covers:
– What is meant by “discount” and why it goes back to the time of Adam Smith back in 1776.
– What is the Real Bills doctrine?
– Why a lot of people today mistakenly think Real Bills are the deep cause of the problem.
– Why banks today use Real Bills to pay out with paper substitutes instead of gold.
– Why Real Bills are deemed to be like fractional reserve banking today and why it is bad and should be outlawed.
– Why all reserves of banks today should use gold to back up Real Bills.
– What is the real motivation for studying Real Bills and how would the world continue producing goods if the whole system comes crashing down?
– How does production and distribution continue if the current system collapses and producers won’t accept the existing paper valueless system?
– How will people exchange goods if there is no money?
– How gold will come back as Real Bills will mean nothing unless exchanged in gold coins.
Professor Antal Fekete is a proponent of the gold standard and an outspoken critic of the monetary system based on irredeemable currency. His work falls into the school of free-market economic thought inspired by Carl Menger. He claims that his theory of interest is an extension of Menger’s work, who championed the theory of direct exchange morphing into indirect exchange. In the same way Professor Fekete is championing the theory of direct conversion of income into wealth and wealth into income (read: gold hoarding and dishoarding) morphing into indirect conversion (read: selling and buying gold bonds). Professor Antal Fekete is an advocate of Adam Smith’s Real Bills Doctrine that he calls the Gold Bills Doctrine.
See www.professorfekete.com for more.
Here’s some other recommended articles we’ve featured from the Professor in the past:
Also check out the “Related Posts” just below for even more.