Ep 53: Is Moldbug (Yarvin) or Mises right about banking and finance?

The Mindcrime liberty show discusses whether Curtis Yarvin (ie Moldbug) is right about banking and finance based on two old posts from his blog Unqualified Reservations entitled The Misean Explanation of the Bank Crisis and Maturity Transformation Considered.  Yarvin describes the financial system fairly effectively noting that Maturity transformation which the most common form is known as fractional reserve banking is the dominant feature.   Yarvin, like Mises and most Austrian economists, note how unstable this system is and describes why it blows up every so often. To quote yarvin himself this poorly engineered system  "coats the entire area with radioactive material" in his excellent analogy. Why is fractional reserve banking so unstable?  Could fractional reserve banking work without the state as a lender of last resort. What would banking look like in a stateless society, ancapistan or a freed market?  Would there be any fractional reserve banks? Why is the state so interested in controlling the money supply? How did this current system come about?  How does Moldbug's solution of nationalizing the banks compares to other solutions in particular various Austrian economists solutions?  

 

https://www.unqualified-reservations.org/2008/10/misesian-explanation-of-bank-crisis/ 

https://www.unqualified-reservations.org/2008/09/maturity-transformation-considered/