NEW VIDEO: Fractional Reserve Banking versus Ayn Rand's Ethics
November 5, 2008 by Paul McKeever
Since former Federal Reserve head Alan Greenspan’s testimony on October 23, 2008, anti-capitalists of every stripe have seized the opportunity falsely to blame the money and banking crisis upon Ayn Rand’s philosophy and upon capitalism. At the same time, some have argued that Objectivism is compatible with fractional reserves in banking. For both reasons, I yesterday turned on the video camera and explained, extemporaneously, the nature of Ayn Rand’s objection to inflation, and why it implies an objection to fractional reserves.
VIDEO TITLE: Gold, Inflation, Fractional Reserve Banking, and Ayn Rand’s Ethics
DESCRIPTION: A response to those who think the ethics of Ayn Rand’s philosophy, Objectivism, is consistent with fractional reserve banking.
In the first part of this video, Paul McKeever gives the general history of how gold came to be money, how banks came into being, how banks started to lend on a fractional reserve, how and why central banks were formed, and how gold was replaced with paper. In the second part, Paul explains the true nature of inflation, and exactly what it was that Ayn Rand found to be ethically wrong about it.