Nelson Nash critiques central banking and fractional-reserve lending, arguing banks create false money that causes booms and busts. He endorses Austrian economics and says he and his wife haven't visited a bank in 23 years, advocating for individual control over banking functions instead.
All right, so I'm a Christian, I'm a forester, I'm Austrian. Now there's one other school of economic thought out there, the Chicago school. Are y' all familiar with that?
Milton Friedman. Okay. Now he's given credit to Curtis being a free market economist, but Curtis, he was a monetarist. David Stockman, Do y' all know that name? Okay, I highly respect that fellow. We had him talking to a group in Nashville a couple of years ago. That is a very well.
Educated man and he knows what's going on big time. Anyway, he wrote this book, the great devolution. 719 pages. About 2 thirds of the way through it, you'll find out that it was Milton Friedman who talked Richard Nixon into abandoning the gold statue. But he's a free market economist. Huh?
Only the Austrians got it right.
The Austrian school of thought says that banks are what causes the problem. Central banks cause the problem. They increase the money supply. People think they have something and they don't. It's all a lie.
And so you have booms and busts. Booms and busts. Well, the guys in the banking business make more money out of that phenomenon than any other way. But it punishes the people who don't think they're the ones that bear all the burden. And so you end up with this kind of nonsense. Richard, go down to your regular commercial bank where you do checking account and you go down there and get a ten thousand dollar loan. Richard, unless you have an account there, they're not going to give you a loan, are they? No, you've got to establish a, an account, if you don't already have one, with a deposit. Now. Yes, now you need $10,000. And they y' all come up with a, an agreement that you get to put up $10,000 of collateral somehow or another, things that you've worked for. That's real money.
All right, Stephen, they do not give him $10,000.
They take that keyboard and in their account put 1,0 comma0,0 0.00. That is no money, Curtis.
It is a lie.
Now they're going to make Richard come up with an amortization table there of giving them back real money, things he worked for to complete that table. Now what happens to that money when Richard, they supposedly lent him, what happens to it when he pays off the debt?
It doesn't exist. Well, why does it not exist? Because it never existed in the first place. But that's what's going on in our country and people think absolutely nothing of it.
All Right. Now when you go to buy something.
Money'S got to pass from you to that other party in a relatively short period of time. Well, those narrow minded folks won't do business with you. No sense of emperor at a hole.
Now that power that you've got to have a resource big enough to complete that transaction or otherwise nothing takes place. Now we see this in buying gasoline and groceries and clothes and stuff like that. But there are major purchases out there, aren't they? There's automobiles, there's homes, there's business equipment, stuff like that.
So where does the money come from nowadays?
It comes from the time game of the banking business.
Now the exception to that is that there's loans from life insurance companies. Life insurance companies cannot increase the money supply. It's impossible. Well, in the little video Backing with Life, Paul Cleveland points out that money is not wealth.
Wealth is goods and services.
Money is the medium, exchange whereby we acquire wealth.
That's all. Now money has got to move.
Our world.
Is totally a world of motion. Are you aware of the atoms that's in our own body that how often they change, how much movement that's taking place within ourselves? And everything that you see out there, there's got to be motion. So with that we get started with our oh my word, I get thrown out. Don't.
That's the rule.
You're okay. He buys lunch, we give you one pass. Nelson.
That'S one.
I recognize the tune at least. Anyway.
I meant to do it a while ago but I didn't want to interrupt you guys.
All right.
All right, some quotations are going to help us here. Will Rogers, that famous philosopher said the problem in America is so much what people don't know. Problem is what people think they know. It just ain't so. That's substantiating my story about we live in a world of lies. That's noise that's out there. And people go build lives based on their understanding of noise. Well, John Holt.
Wayne, do you know about John Holt.
Curtis? Just listening to you two guys, y' all would like him very much. He's an educator and he sees what a folly our educational system is. It's not education, it's indoctrination.
Well, we just have to learn to succeed from their way of thinking, that's all. You don't have to obey them. They're wrong. Why in the world you want to follow those guys?
So John Holt said, we are human.
The human animal is a learning animal. We like to learn. We're good at it. We don't need to be shown how or made to do it. What kills the processes or people interfering with it or trying to regulate or control it.
And so Mary and I understand this so well that we're riding down the road and here comes the school bus and Mary says, here come the inmates.
Hey, Charles Mankin. I love this old guy. He was the sage of Baltimore. Brilliant, brilliant man and a great observer of human nature and things that go on in our big wide world. He said, the truth indeed is something. Mankind, for some mysterious reason, instinctively dislikes.
Every man who tries to tell it's unpopular. And even with the sheer strength of his case, he prevails. He's put down as a scoundrel. Now, I heard some testimonies from you guys here verifying that fact that how much abrasion do you get out there when you try to introduce an idea here that is absolute truth and is foundational.
To the entire financial world? But they're so used to doing things wrong that they won't listen to you. I tried for five years to try to get this concept across the equitable life of New York. That's not you guys. Now that's not you guys. That was the Equitable Life Assurance Society of the United States. That was the third largest life insurance company in the United States. And I saw John Carter and Jim Atwood ruin a real good company by their Harvard MBA thinking. Yeah, Axel had to buy them out.
Lyndon said without big banks, socialism would be impossible. So I think those four will help you out in understanding where I'm coming from and why this is an absolute necessity. The banking function needs to be totally in your. In my hands, it can be. I know thousands of people now today that will never see a bank in their life. Mary and I haven't seen one in 23 years. Now that is a very peaceful, stress free way of life.
