Detlev Schlichter's guest appearances

Detlev Schlichter

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While Ben Dyson has argued that we need to take the power to create money out of the hands of bankers and put it entirely in the hands of government (you can here that episode here) Detlev Schlichter goes further arguing that the power to create money should not be given to any group. As he lays out in his book Paper Money Collapse, since time immemorial governments in times of war or other trouble have always created more money. In the Ancient world that meant shaving down coins and diluting the amount of gold or silver in them. In the Civil War that meant printing more and more paper currency. The result was simple: a loss of faith in the currency. In Ancient Rome as the silver denarius dropped in silver content, trade began to dry up and this destruction of the money supply by emperors may well be one of the reasons for the collapse of the Roman Empire. Today, governments are not only printing more money to solve short-term crisis; they’re doing it as a long-term strategy. Whereas historically, countries always returned to some sort of gold-backing for their currency since the 1970s the amount of currency in the system has been determined by nothing but the decision of governments. They can print as much money as they want. That Detlev Schlichter argues is too great a power for any government to have. In the desire to be re-elected parties have an incentive to buy their way out of problems by flooding the system with cash. This model of money which Schlichter refers to as elastic money (because governments and banks can expand the amount of money limitlessly) is nearly absolute financial power and has the power to make even the most decent elected or appointed official behave recklessly. In our complex modern system, it can seem like an inelastic money supply like the gold standard is massively out of date but when you listen to Schlichter explain it in his book and in this podcast a return to an inelastic money supply shouldn’t be of any one time; it should be of every time because avoiding excessive concentrations of political or economic power is the purpose of democracy and the free market. Governments and banks have granted themselves the monopoly on money creation. That’s bad for everyone in the long-run. Detlev became an independent economist, market commentator and investment strategist after a 19-year career in international financial markets as a trader and portfolio manager, including stints at J. P. Morgan, Merrill Lynch, and Western Asset Management. His book, Paper Money Collapse: The Folly of Elastic Money, is now entering its second edition. It is available everywhere. You can follow him on twitter @DSchlichter and at http://detlevschlichter.com/. Be sure to rate and comment in iTunes. Also, you can find the show on Stitcher.

While Ben Dyson has argued that we need to take the power to create money out of the hands of bankers and put it entirely in the hands of government (you can here that episode here) Detlev Schlichter goes further arguing that the power to create money should not be given to any group. As he lays out in his book Paper Money Collapse, since time immemorial governments in times of war or other trouble have always created more money. In the Ancient world that meant shaving down coins and diluting the amount of gold or silver in them. In the Civil War that meant printing more and more paper currency. The result was simple: a loss of faith in the currency. In Ancient Rome as the silver denarius dropped in silver content, trade began to dry up and this destruction of the money supply by emperors may well be one of the reasons for the collapse of the Roman Empire. Today, governments are not only printing more money to solve short-term crisis; they’re doing it as a long-term strategy. Whereas historically, countries always returned to some sort of gold-backing for their currency since the 1970s the amount of currency in the system has been determined by nothing but the decision of governments. They can print as much money as they want. That Detlev Schlichter argues is too great a power for any government to have. In the desire to be re-elected parties have an incentive to buy their way out of problems by flooding the system with cash. This model of money which Schlichter refers to as elastic money (because governments and banks can expand the amount of money limitlessly) is nearly absolute financial power and has the power to make even the most decent elected or appointed official behave recklessly. In our complex modern system, it can seem like an inelastic money supply like the gold standard is massively out of date but when you listen to Schlichter explain it in his book and in this podcast a return to an inelastic money supply shouldn’t be of any one time; it should be of every time because avoiding excessive concentrations of political or economic power is the purpose of democracy and the free market. Governments and banks have granted themselves the monopoly on money creation. That’s bad for everyone in the long-run. Detlev became an independent economist, market commentator and investment strategist after a 19-year career in international financial markets as a trader and portfolio manager, including stints at J. P. Morgan, Merrill Lynch, and Western Asset Management. His book, Paper Money Collapse: The Folly of Elastic Money, is now entering its second edition. It is available everywhere. You can follow him on twitter @DSchlichter and at <a href="http://detlevschlichter.com/" rel="nofollow" target="_blank">http://detlevschlichter.com/</a>. Be sure to rate and comment in iTunes. Also, you can find the show on Stitcher.

Ep141 - Detlev Schlichter

Dominic Frisby meets Detlev Schlichter and discusses some of the issues from his book, Paper Money Collapse.Detlev is an author and Austrian School Economist.Read his blog.Buy Paper Money Collapse from Amazon.This podcast can also be heard at the Goldmoney Foundation, an independent organisation established by GoldMoney - the best way to buy gold and silver. See acast.com/privacy for privacy and opt-out information. This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit www.theflyingfrisby.com/subscribe

Dominic Frisby meets <a href="http://papermoneycollapse.com/" rel="nofollow" target="_blank">Detlev Schlichter</a> and discusses some of the issues from his book, Paper Money Collapse.Detlev is an author and Austrian School Economist.<a href="http://papermoneycollapse.com/" rel="nofollow" target="_blank">Read his blog.</a><a href="http://www.amazon.com/Paper-Money-Collapse-Monetary-Breakdown/dp/1118095758/ref=la_B004Y2KN3O_1_1?ie=UTF8&amp;qid=1342858484&amp;sr=1-1" rel="nofollow" target="_blank">Buy Paper Money Collapse from Amazon.</a>This podcast can also be heard at the<a href="http://www.goldmoney.com/gold-audio-podcasts.html" rel="nofollow" target="_blank"> Goldmoney Foundation</a>, an independent organisation established by <a href="http://www.goldmoney.com/?gmrefcode=dfrisby" rel="nofollow" target="_blank">GoldMoney - the best way to buy gold and silver</a>. See <a href="https://acast.com/privacy" rel="noopener noreferrer nofollow" target="_blank">acast.com/privacy</a> for privacy and opt-out information. This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit <a href="https://www.theflyingfrisby.com/subscribe?utm_medium=podcast&amp;utm_campaign=CTA_2" rel="nofollow" target="_blank">www.theflyingfrisby.com/subscribe</a>

Brian Micklethwait speaks to Detlev Schlichter on his upcoming book, Paper Money Collapse: The Folly of Elastic Money and the Coming Monetary Breakdown.  As a derivatives trader for 19 years, Detlev Schlichter resigned his position as a senior bond portfolio manager in 2009 to work full-time on this book, about fiat monetary systems and financial crises.  He therefore knows of what he speaks.  In this extensive and detailed interview, he explores with Brian Micklethwait what we should do to get our current financial problems behind us; this one really is worth listening to in its 35-minute entirety. “Paper money systems are unstable and so is our system.  It will end.  It will most likely end badly.  It will most likely end soon.” Speaking from a heavily-influenced Austrian position, Herr Schlichter examines what would happen if we did the ‘right’ thing by turning off the Keynesian money printing spigot — and exposing all of those malinvestments — and what might happen if we keep going into the Götterdämmerung of the fiat money system with the ‘wrong’ thing, by allowing the spigot to pump even faster. “Paper money systems have always collapsed in history.  None of them have survived.  And our system is really not that old.  It only became a complete one hundred per cent paper money system in 1971, when the dollar became an irredeemable piece of paper.  Central banks could still convert it into gold until 1971.” Amongst many other sub-plots, debating the relative influences of Hayek, Mises, and Rothbard, there’s also a fascinating sub-discussion about the role of paper money in the collapse of the medieval Chinese empire, which allowed the later domination of China by the western powers of Europe, such as Portugal and Britain.  Cobden Centre Radio: Brian Micklethwait interviews Detlev Schlichter (MP3)  For those interested in the work of Herr Schlichter, and up-to-date comments upon an unfolding global financial situation, you can find his personal web page, here.  Subscribe to our podcast here:

Brian Micklethwait speaks to <a href="http://papermoneycollapse.com/author/detlev-schlichter/" rel="nofollow" target="_blank">Detlev Schlichter</a> on his upcoming book, <a href="http://www.amazon.co.uk/Paper-Money-Collapse-Monetary-Breakdown/dp/1118095758/" rel="nofollow" target="_blank">Paper Money Collapse: The Folly of Elastic Money and the Coming Monetary Breakdown</a>. <a href="https://www.cobdencentre.org/wp-content/uploads/2011/03/DetlevSchlichter.jpg" rel="nofollow" target="_blank"></a> As a derivatives trader for 19 years, Detlev Schlichter resigned his position as a senior bond portfolio manager in 2009 to work full-time on this book, about fiat monetary systems and financial crises. He therefore knows of what he speaks. In this extensive and detailed interview, he explores with Brian Micklethwait what we should do to get our current financial problems behind us; this one really is worth listening to in its 35-minute entirety. <blockquote>“Paper money systems are unstable and so is our system.  It will end.  It will most likely end badly.  It will most likely end soon.”</blockquote> Speaking from a heavily-influenced Austrian position, Herr Schlichter examines what would happen if we did the ‘right’ thing by turning off the Keynesian money printing spigot — and exposing all of those malinvestments — and what might happen if we keep going into the Götterdämmerung of the fiat money system with the ‘wrong’ thing, by allowing the spigot to pump even faster. <blockquote>“Paper money systems have always collapsed in history. None of them have survived. And our system is really not that old. It only became a complete one hundred per cent paper money system in 1971, when the dollar became an irredeemable piece of paper. Central banks could still convert it into gold until 1971.”</blockquote> Amongst many other sub-plots, debating the relative influences of Hayek, Mises, and Rothbard, there’s also a fascinating sub-discussion about the role of paper money in the collapse of the medieval Chinese empire, which allowed the later domination of China by the western powers of Europe, such as Portugal and Britain. <ul> <li><a href="https://www.cobdencentre.org/wp-content/uploads/2011/03/CCR_Show_15_Brian_Micklethwait_With_Detlev_Schlichter.mp3" rel="nofollow" target="_blank">Cobden Centre Radio: Brian Micklethwait interviews Detlev Schlichter</a> (MP3)</li> </ul> For those interested in the work of Herr Schlichter, and up-to-date comments upon an unfolding global financial situation, you can find his personal web page, <a href="http://papermoneycollapse.com/" rel="nofollow" target="_blank">here</a>. <a href="https://www.cobdencentre.org/wp-content/uploads/2011/03/ilds.jpg" rel="nofollow" target="_blank"></a> Subscribe to our podcast here:

Cobden Centre Radio: Brian Micklethwait interviews Detlev Schlichter