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by Murray Rothbard, with an introduction from the editor

Ron Paul is doing well raising money and gaining attention for the cause of free-markets. In 2007 he raised more money in one day than any other political fund-raiser: over 6 million dollars, breaking his own record set a few months earlier of over 4 million dollars. One way he might be able to raise money and illustrate the fact that fractional reserve banking is fraudulent is if all his supporters took all their on-demand deposits out of the bank at the same time, and then gave some fraction of it to the campaign.

Ideally, this will lead to a run on the banks (as people learn that the banks do not actually have the money people have deposited on hand, but have lent it out, turning an on-demand deposit into a loan), fractional reserve banking will be exposed as fraudulent and Paul will become President. Read the rest of this entry →