Fractional Reserve Banking Explained

Lew Rockwell
LRC
December 14, 2011

Thanks to Ike Renner for pointing out this Salmon Khan video on fractional-reserve banking. Mr. Khan, perhaps the most significant educator of our time, is the founder of the Khan Academy, which teaches–in the most extraordinary way–math and so much else to anyone who wants to learn, for free. I have long admired this great philanthropist. Now I discover he is a Rothbardian on banking! Since millions of homeschoolers and other smart students all over the English-speaking world are devoted Khanians, and their numbers are growing, this presages much good for the future of Austrian economics. Adds Ike: “It seems that whether a person’s core concern is education, finance, food supply, or foreign policy, once committed to liberty, it doesn’t take long to arrive at the front door of the Mises Institute!”

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