George Gilder: All Forms of Money Must Be Based on Time (VIDEO)

George Gilder is most recently the author the ground breaking The Scandal of Money: Why Wall Street Recovers but the Economy Never DoesHe is a founding fellow of the Discovery Institute and a senior fellow at the American Principles Project, which sponsored this book.

Gilder is also the author eighteen other well-regarded books including Knowledge and Powerand Microcosm. After the publication of Wealth and Poverty, he became Ronald Reagan’s most frequently quoted living author.

In the following clip — from a speech Gilder gave at FreedomFest 2016 — he explains how money, just like all forms of measurement, must be ultimately based on time:

But this is the great moment of opportunity as well as being a scandal. The opportunity has created again the efflorescence of the theory that began with Kurt Godel in 1931 when he showed that any logical system is necessarily dependent on propositions which can’t be proved within the system itself.

I think money is a logical system like that; it has to have roots and value outside of the system itself. Money cannot be part of what it measures. Money is not a commodity. This is the only relevant error I see in Austrian economics — that money is somehow a commodity.

…Money is [not a commodity], it is a measuring stick and it is necessary for a flourishing economy. It too has to be finally based on time. You can’t escape time; you can’t get away from time. When you try to do it, you just confuse everything.

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George Gilder: Angry About Inequality? Here’s the Real Culprit… (VIDEO)

George Gilder is most recently the author the ground breaking The Scandal of Money: Why Wall Street Recovers but the Economy Never DoesHe is a founding fellow of the Discovery Institute and a senior fellow at the American Principles Project, which sponsored this book.

Gilder is also the author eighteen other well-regarded books including Knowledge and Powerand Microcosm. After the publication of Wealth and Poverty, he became Ronald Reagan’s most frequently quoted living author.

In the following clip — from a speech Gilder gave at FreedomFest 2016 — he discusses how near-zero interest rates, far from stimulating economic growth, actually create an environment which fosters inequality.

Zero interest rates essentially zero out time.

As Hayek put it, the root and source of all monetary evil is the government monopoly of money. Matt Ridley said the government monopoly of money not only suppresses innovation and creativity, not only retards growth, it also fosters inequality. Because what we have today is a bifurcated economy produced by the government monopoly of money that fosters inequality.

Think of most of us. Most of us get paid by the hour, paid by the day. We are inexorably caught in the economy of time; that’s how we get compensated. But what’s happened in the world economy in recent decades as a result of the government monopoly of money and that exploitation of that government monopoly to allow the unlimited expansion of government power through the creation of money.

What’s happened is a financialization, a hypertrophy, of finance in the world economy.

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George Gilder: Money Is a Measuring Stick, Not a Magic Wand (VIDEO)

George Gilder is most recently the author the ground breaking The Scandal of Money: Why Wall Street Recovers but the Economy Never DoesHe is a founding fellow of the Discovery Institute and a senior fellow at the American Principles Project, which sponsored this book.

Gilder is also the author eighteen other well-regarded books including Knowledge and Power and Microcosm. After the publication of Wealth and Poverty, he became Ronald Reagan’s most frequently quoted living author.

In the following clip — from a speech Gilder gave at FreedomFest 2016 — he discusses why government ought to consider money as a measurement of value rather than as a magic wand to create growth:

If money is not an instrument of power, not a magic wand that governments can wave to summon economic growth, what is it?

I’ve been pondering this issue for many years and I didn’t get it right in Wealth and Poverty. Steve Forbes gave me the key insight when he began focusing on money as a clock or as measuring stick. He used the analogy of a clock. If a measuring stick is changing constantly, how can enterprises use money as a guide to their learning processes. If the clock was changing day by day; the hours change, the minutes change, as Steve pointed out, we would soon have times of false obligations — you would have to be constantly hedging the clock.

And that’s really what’s happening, because I believe that most fundamentally, money is time.

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George Gilder: This Simple Theory Explains the Success of Capitalism (VIDEO)

George Gilder is most recently the author the ground breaking The Scandal of Money: Why Wall Street Recovers but the Economy Never DoesHe is a founding fellow of the Discovery Institute and a senior fellow at the American Principles Project, which sponsored this book.

Gilder is also the author eighteen other well-regarded books including Knowledge and Power and Microcosm. After the publication of Wealth and Poverty, he became Ronald Reagan’s most frequently quoted living author.

In the following clip — from a speech Gilder gave at FreedomFest 2016 — he discusses how information theory relates to money and why all wealth is fundamentally knowledge:

…A professor at MIT named Cesar Hidalgo recently gave a good example to help you understand this concept. When an expensive car crashes into a wall, all its value disappears, although every molecule and atom remain. Value is information, the car is knowledge. And I can prove that all wealth is essentially knowledge.

…I believe that if wealth is knowledge, then growth is learning. Now to have learning, certain rules apply. Learning is most essentially experimental. If outcomes are guaranteed, learning is essentially prohibited.

…The reason capitalism is such an engine of learning and thus an engine of economic growth is because every business plan can fail; bankruptcy is possible. But if you have government guaranteeing everything by printing money whenever any enterprise is in jeopardy of falsification or bankruptcy then learning is prohibited. So the very policy that government follows to guarantee growth, intrinsically thwarts growth by arresting the learning process — by falsifying the learning process.

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Acton Institute Praises Gilder’s New Book “The Scandal of Money”

Earlier this year, American investor, economist, and scholar George Gilder released a ground-breaking new book on global economics called The Scandal of Money: Why Wall Street Recovers but the Economy Never Does.

Gilder’s book has drawn praise from luminaries like former senator Jim DeMint, entrepreneur Peter Thiel, and CNBC’s Larry Kudlow.

In the summer 2016 edition of the Acton Institute’s journal, Religion and Liberty, Stephen Schmalhofer added his name to the list of people who enjoyed The Scandal of Money:

Perhaps the only futurist worthy of that grandiloquent title, Gilder draws on a lifetime of insights into entrepreneurship and innovation to consider the problems caused by the present state of American money. Generously sharing his pages with the best underappreciated thinkers, like 20th-century French economist Jacques Rueff, and introducing relevant innovations in information technology, Gilder considers possible solutions: a modernized gold standard and decentralized digital currencies like Bitcoin. Gold and Bitcoin both offer the advantage of irreversibility, desirable in the same way that the results of an experiment should not be manipulated after their collection. Lacking a philosopher’s stone, we must expend time in the form of capital and labor to produce more gold. Mined not from the ground but through advanced mathematics, digital currencies like Bitcoin defeat attempts at counterfeiting with timestamping. Their irreversibility is anchored in the scarcest resource—time. In the author’s imaginative prose: “Sound money requires hostility to time travel.”

If Trump and Sanders are the tribunes of anxious middle Americans, failed monetary policy is partly responsible for their rise.

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Forbes Columnist: This “May Be the Most Important Political Book of the Year”

George Gilder (photo credit: Gage Skidmore)

From Forbes.com comes this must-read review by columnist Jerry Bowyer of George Gilder’s The Scandal of Money. Here’s a taste:

George Gilder’s newest book, The Scandal of Money, is more than just the first treatise on monetary theory for the information age. It is also a break up letter from one of the two or three most prominent living supply-siders to Wall Street. On that basis alone, it may be the most important political book of the year.

For too long the pro-market wing of the GOP has played defense for just about everything about the financial industry. Public support for big business has been in a long arc of decline, and financial behemoths have been the leading edge of that plunge. The collapse of 2008 has left them still in the hall of political shame, and stinginess towards small business credit has alienated even natural allies in the entrepreneurial community.  And there we stuck to it like a heat shield on the nose cone of the capsule as it plunged downward. The supply-side movement, which has strong populist roots, found itself missing American’s populist moment and standing guard against its uprising.

But why? Free markets? Gilder makes clear that today’s elephantiasis of the financial sector has nothing to do with economic freedom and everything to do with monetary effluence. What Gilder calls ‘financial hypertrophy’ is indeed scandalous, but not for the reasons given by OWS or the Sanderistas. It is money itself which is the scandal.

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George Gilder: Here’s How to Achieve a Real Economic Recovery

George Gilder, author of The Scandal of Money: Why Wall Street Recovers but the Economy Never Does, recently joined Dawn Bennett on her radio show “Financial Myth Busting” to discuss the continuing economic challenges facing the U.S. and how to overcome them. The key, according to Gilder, is getting our money right.

Here’s a taste from the interview:

BENNETT: Why does Wall Street recover from recessions, or these types of recessions and Main Street never does?

GILDER: Because of the financialisation of the economy, the futile effort to replace production with finance and savings with credit, and it doesn’t work. We’ve created this closed loop economy where the Fed creates money and, by their own data, 62% of it goes to the banks which in turn use it to purchase government securities and finance the government. And two thirds of the rest goes to the top five hundred corporations which use it not to invest these days but rather to buy back their own shares and then cosmetically improve the stock market. It’s a closed loop economy between Washington and Wall Street that leaves out Main Street.

BENNETT: Your book centers around something we’ve talked a lot about on the show, which is even as the government has literally spent trillions in fiscal stimulus and printed trillions of monetary stimulus, the result is merely creating this illusion of a recovery. Why is this recovery not like a genuine recovery?

GILDER: Because it’s based on zero interest rates which zero out the future.

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Daria Novak Campaigns for the Gold Standard in Congressional Race

Photo credit: Bullion Vault via Flickr (CC BY-ND 2.0)

Daria Novak is crusading for the gold standard in her race for Congress in eastern Connecticut. Now, Novak recently has received the endorsement of George Gilder, the living author most quoted by President Reagan and the author of many influential books such as the million seller Wealth and Poverty — the “bible” of Reaganomics — and the new Amazon best-seller The Scandal of Money: Why Wall Street Recovers But The Economy Never Does. In a public statement Gilder declares:

Daria Novak’s endorsement of gold shows she understands one of the core problems facing the American economy: the Federal Reserve’s monopoly money is corrupting Wall Street, gelding Silicon Valley, and killing Main Street. I urge her election.

Novak, on her website (as, reportedly, in her stump speech) states:

Prosperity: Restore the American Dream

The classical gold standard is Constitutional money and it made America great. The late, great Jack Kemp introduced perfect legislation for restoring the gold standard, co-sponsored by Newt Gingrich, with the Gold Standard Act of 1984. If elected my first official act will be reintroducing that legislation substantively word for word, and then crusading on that as key to getting job creation, economic security, and upward mobility back at a sizzling rate.

Novak is in distinguished company. The gold standard is re-emerging as an attractive formula for restoring the American Dream of equitable prosperity. Both the GOP’s presumptive presidential nominee, Donald Trump, and his closest rival, Sen. Ted Cruz, publicly praised the gold standard in the context of the presidential primary:

Donald Trump:

In a GQ video interview, the billionaire said he would support … the gold standard.

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George Gilder’s Savagely Brilliant Book

George Gilder (photo credit: Gage Skidmore)

Tired of struggling economically? Me too.

George Gilder offers an explanation and a solution: restoring monetary integrity. It’s radical and goes far beyond primitive “supply side economics.” The axis of restored prosperity is “entrepreneurial ingenuity,” founded in all the policies which make that possible, and all that such ingenuity in turn makes possible, even for non-entrepreneurs… including equitable prosperity.

I’m not alone in my admiration for this book. Conjoin the praise of Reaganomics’ co-architect Dr. Arthur Laffer’s “Thirty-five years ago, George Gilder wrote Wealth and Poverty, the bible of the Reagan Revolution. With The Scandal of Money he may have written the road map to the next big boom” with that of Venture Capitalist-In-Chief Peter Thiel’s “Why do we think governments know how to create money? They don’t. George Gilder … is our best guide to our most fundamental economic problems.”

This conjunction gives some idea of the sweeping breadth and towering scope of George Gilder’s new The Scandal of Money: Why Wall Street Recovers But The Economy Never Does. Bonus: you don’t have to be a PhD economist or a preeminent venture capitalist to understand it.

[…]

Read the full review at Forbes.com.

Ralph Benko, internationally published weekly columnist, co-author of The 21st Century Gold Standard, lead co-editor of the Gerald Malsbary translation from Latin to English of Copernicus’s Essay on Money, is American Principles Project’s Senior Advisor, Economics. Continue Reading

Gold Is the Money of the Future: Gilder’s 21st Century Case For Gold

In his fascinating recent book, The 21st Century Case For Gold, George Gilder flips the debate back against those who would denigrate the gold standard as a ‘barbarous relic’. For Gilder, fluctuating currency values are the relic, totally unfit for the modern world, rendered indefensible by cutting edge information theory, a major source of political and economic corruption, and one of our most significant barriers to progress.

The gold standard had developed a sort of ‘retro’ branding. It’s thought of as ‘pre’ — pre-Keynesian, pre-modern, a throw-back to the allegedly outmoded classical liberalism which was shattered by World War I. Gilder, however, is a man of the future, a technology forecaster who was early to see the power of the microchip and after that, once again early to see the expansive significance of the internet, and then one of the first to see the shift towards the cloud. Gilder’s biases seem to tend far more towards excess technophilia than towards nostalgia.

So then, what has shifted a man like this towards the gold standard? The mathematics which began to appear in the mid-20th century are the mathematics of the unknown. They appear at the limits of calculus and all other mathematical systems based on a deterministic future. They are about incompleteness of our systems (Kurt Gödel) or about intentionally hidden information (cryptography) and about possibilities ruled out and formerly unknown information being revealed (Claude Shannon). These new branches of mathematics make a more compelling case for gold than earlier branches of mathematics.

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