Episode 84: Andy Duncan talks to “Austrian” economist, Professor Thorsten Polleit, about a recent speech he gave entitled “What Do Bankers Know About Money and Banking?” Dr Polleit is Chief Economist for Degussa Goldhandel in Germany, and for 12 years until April of 2012 was the Chief German Economist for Barclays Capital. He lectures in Economics at the Frankfurt School of Finance and Management, and the universities of Bayreuth and Duisburg-Essen.
Andy and Thorsten discuss the latter’s monetary theory of how fiat currency tends to result in “collective corruption” in societies, and how this then leads to hyperinflation, despite the dangers to society that hyperinflation always brings. They also debate the development of global fiat currency over the last 40 years, and how increasing levels of debt may mark its terminal decline. Governments may plan for this decline by re-introducing gold-backing to Western currencies.
You can watch Dr Polleit’s speech “What Do Bankers Know About Money and Banking?” at this link. For more information about Dr Polleit and his work visit http://www.thorsten-polleit.com.
Download audio file: Thorsten Polleit discusses ‘collective corruption’
This podcast was recorded on 2 January 2013 and previously published at GoldMoney.com.
There always was some corruption in the system (even long before it was officially fiat).
Under a fiat system, the corruption (of course) became institutionalised – but there were some limits to it.
Now there appear to be no limits to the corruption of the system.
Near zero interest rates for years?
Fund goverment deficits by creating money (from NOTHING) lending it out to banks (and other such – shadow banking and so on) and then borrowing it back again.
Use the money-from-nothing to prop the housing market?
Check – both in the United States (with the obscene Fannie Mae and Freddie Mac as well as the private banks), and in Britain.
There is no limit to all the corruption – to the vileness of it all.
Yes Mises economics is “value free” (other than the moral value known as TRUTH of course), but this system is eating itself.
It is fast becomming not a financial system at all.
Just a bit of Hell vomit.
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