Scott interviews Ryan McMaken about the current coronavirus-induced financial slowdown and what it might mean in terms of the next big crash. McMaken explains that with America’s incredibly over-financialized economy, practically the only tool that the government knows how to use is huge injections of liquidity directly into the financial sector. This of course only eases the pain temporarily, delaying (and worsening) the eventual popping of the bubble. One danger Scott and McMaken foresee is that there can now be no principled opposition to those who clamor for government-sponsored, “free” programs like universal health care, free college, and other expensive social packages, since our government continues to demonstrate that it is perfectly willing to create a trillion dollars out of thin air and hand it out to certain people. The only question, at that point, is who gets the money.
Discussed on the show:
The Great Deformation: The Corruption of Capitalism in America
“The US Constitution Needs an Expiration Date” (The Mises Institute)
Ryan McMaken is a senior editor at the Mises Institute. He has degrees in economics and political science from the University of Colorado, and was the economist for the Colorado Division of Housing from 2009 to 2014. He is the author of Commie Cowboys: The Bourgeoisie and the Nation-State in the Western Genre.
This episode of the Scott Horton Show is sponsored by: NoDev NoOps NoIT, by Hussein Badakhchani; The War State, by Mike Swanson;; Tom Woods’ Liberty Classroom;; Listen and Think Audio;; and
Donate to the show through Patreon, PayPal, or Bitcoin: 1Ct2FmcGrAGX56RnDtN9HncYghXfvF2GAh.

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  • I shied away from using debt for a long time… I feel that I’m missing some opportunity by doing it, though. I think the turnaround in gold and silver is right around the corner, and I want to buy more physical. I’d rather not use all of my saved cash, as I like to have that ready to spring on opportunities in the stock market. What are your thoughts on using a 0%APR credit card (which would also give cash back bonuses and points for a large purchase) to buy some silver coins? Best, James

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  • 1) What is your estimation on the stability of the dollar as the leading world currency? (or for Europe the euro) 2) How much time do you give it until it will collapse? 3) What do you suspect will be the trigger – will it be chronologically planned (e.g. by IMF) or will it be an unexpected event (e.g. black swan / bubble burst)?

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  • Perhaps you will find this magnificent BBC documentary interesting. It tells the story of the ancient city of Caral, a little north of Lima on the coast of Peru, which is arguably the oldest city in and the beginning of civilization in the Americas. The Lost Pyramids Of Caral There are two points I would like to make about the story told therein of Caral which I think are relevant to libertarians. 1) The early civilization of Caral apparently arose purely out of commerce. This confirms the insights of the Austrian school of economics. And it may be an example of a commercially organized cooperative human society that antedates the rise of any state. 2) This contradicts the presumptions brought to the study by the archaeologists. For one example, at 7:20 one states the following. You can’t build … on the basis of consensus. You have to have leaders and followers. You have to have specialists. You have to have people who are in charge. People who can tell individual groups, alright, today you will be doing this. This group you are going to be doing something different. In other words, in his academic world, the possibility is inconceivable of that human cooperation could be organized by trade — the marketplace — rather than authority.

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  • History shows that control of the individual is achieved through the factors of production: labor, land, capital control through labor = slavery control through land = feudalism control through capital = the debt system Government is not necessary to control individuals through the factors of production. It is only necessary to own the factor of production. A study of history reveals multiple examples of this control. Are there any examples when this control of the individual through the factors of production has not existed?

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  • Although the Federal Reserve didn’t exist until 1913, and fiat currency not until the 1970s, there have been government controlled national banks since 1791. I’m interested to know exactly how the First Bank and Second Bank of the United States differ from the Federal Reserve, as I often hear people say that the U.S didn’t have central banking until 1913 when the Federal Reserve was created. But isn’t a national bank controlled by the government essentially a central bank, with the only difference being that there wasn’t fiat currency?

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