Steve Diamond writes:>This particular Warburton piece was posted by gold bugs but he is not a gold bug per se. He is fanatic about debt - and who can blame him? What he and others like David Tice and Doug Noland contend is that non-money forms have distorted the economy. That is the strength of their argument in my view, highlighting the role that financial innovation (engineering) have played in recent years. Of course, the danger of this world view is that it ignores the role of the "social productivity of labor" and has a rather narrow view of the role of the state (and this is, in the end, is probably what makes their arguments attractive to the gold bugs.)<
the opposition to credit is akin to an old Milton Friedman argument (that he gave up on, I believe) that banks should be forced to hold $1 of reserves for each $1 of deposits, preventing them from "creating credit." The idea is that if we could fix the financial system, it would fix the capitalist system. -- JDevine
