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The Delirium Of Milliards - How Monetary Heroin Tempts Hyperinflation
Submitted by Jefff Thomas via InternationalMan.com,
Recently, I received an article by Alasdair Macleod, entitled “Economics of a Crash.” It’s an excellent overview of what’s to come over the next few years.
In reading the article, I was particularly taken by this reference:
…we can more easily imagine central bankers being drawn into repeating the mistaken policies of Rudolf Havenstein, president of Germany’s Reichsbank in 1921-1923. In predicting this final crisis for any country that treads down the path of government corruption of its money, the economist von Mises described its manifestation as a crack-up boom, the boom to end all booms, when ordinary people finally realise the worthlessness of government currency and dump it as rapidly as possible for anything they can get hold of.
Herr Havenstein is a forgotten man today, but he should not be. What he did as President of the Reichsbank in his day should not be forgotten, as the same conditions that existed in Germany back then are just around the bend once again.
With the coming market crash (what we’ve witnessed recently is just a preview of what’s yet to come), we shall see significant deflation. The central banks, particularly the U.S. Federal Reserve, have for years promised that if deflation rears its ugly head, as it did following the 1929 crash, they will not hesitate to print money unceasingly until the problem is solved. Money creation will be possible at a rate never before seen in history. In 1922-1923 Germany, it was necessary to physically print bank notes and distribute them. Today, all that’s necessary is to type credits into a computer. Billions can be created overnight.
When this money creation first occurs, there will be prominent support from the media that the central banks are doing what’s necessary to combat deflation. Everyone will support the idea, just as they did in Germany in the 1920s. Trouble is, it won’t work.
One reason deflation takes place is due to a fall in aggregate demand. An economic crash creates a fear of spending, resulting in lower prices for goods and services. A major crash creates major fear, one that’s unlikely to be overcome by increasing the money in circulation. People will praise the increase in money, whilst continuing to avoid major personal spending. They instead will focus their spending on necessities, such as food, fuel, clothing, etc. The less necessary an item is, the less likely there will be purchasers. As a result, the price of such items will fall.
Any asset that’s a luxury - boats, motorcycles, luxury homes, etc. will become difficult to unload, causing repeated drops in the asking prices over time.
Money creation will seem to be a good solution, as it suggests that people will have more of the stuff to spend, but overcoming the fear will take considerable money creation. And money creation has a habit of creating a greater increase in the prices of those goods that people are already focusing their spending on, like consumable commodities. Therefore, commodities will rise in price whilst assets will remain down.
Since the problem of deflation has not been solved, the central banks will do the only thing they know how to do, create even more money, which in turn creates more price increases in those commodities. Along the way, wages will need to rise to allow people to pay the new, higher prices but, historically, wages never keep pace when dramatic money creation is undertaken.
The net result is that the average individual will find it harder and harder to put food on the table and fuel in the car, and, in order to cope, will lower the asking price on the assets he’s still trying to unload, which of course signals the central banks that more money creation is needed.
Historically, this cycle never ends well, but how bad can it get? If we’re fortunate, the fear will be broken at some point by the creation of money. But before we heave a sigh of relief, it’s important to recognise that this happens rarely. And, to my knowledge, it has never happened in an instance in which the cause of the problem was insurmountable debt.
After World War I, under the Treaty of Versailles, the war’s victors forced Germany to accept a repayment burden for causing the war. The debt level, as it was assessed, was so great that it was virtually impossible to pay. The German people were taxed to a degree that made it difficult to afford necessities. They responded by offering for sale any assets they felt they could do without.
Enter Rudolf Havenstein, new President of the Reichsbank. Herr Havenstein set about the creation of more money and was widely praised for his action. This caused price increases in commodities, so he created more Papiermarks (the name for the German currency at the time) so that people could pay the increased prices. But the cycle described above kicked in. He then did the only thing he knew how to do, he kept printing.
Thus began “The Delirium of Milliards,” Milliard being a term for billions. Prices of goods and services rose more and more quickly, as more money was supplied. By mid-1923, hyperinflation was in full swing. Prices rose daily and workmen were paid several times a day to allow them to spend the money, to get rid of it, buying anything tangible, to avoid holding the rapidly inflating fiat currency. Even though bills were printed in ever-higher denominations, people eventually needed baskets, even wheelbarrows, of bank notes to pay for daily needs. Eventually, it took 200 Five Milliarden Mark notes like the one pictured above, issued in Berlin in 1923, to pay for a loaf of bread.
It’s important to recognise that Herr Havenstein received full support from everyone for his actions, the government, the war’s victors, the communist party, Hitler’s growing contingent, and the people themselves all supported the printing, as it was clearly the most immediate approach to the problem.
Unfortunately, just as more heroin is the most immediate approach to the problem of heroin addiction, the printing of Papiermarks was headed toward an overdose.
But, along the way, the hyperinflation created chaos throughout society. It brought out the worst in everyone, fear, greed, panic, class hatred, and corruption.
Farmers produced bumper crops, but were loath to accept Papiermarks for their goods. Storehouses were full, but people in cities starved. City-dwellers rode out to the farms on their bicycles in gangs, stealing food and killing farmers and any livestock that they couldn’t carry with them. Gluttony became a legally punishable offense. Unlimited fines were imposed upon anyone deemed to be hoarding.
Demands rose from many factions for a redistribution of wealth, each group thinking that the others should pay more. Transfer of funds was made illegal without government authorisation. All German capital abroad was confiscated. Social entitlements received diminished increases until the amounts being paid became worthless. The taxation system broke down. No one knew what to charge or what to pay.
New banknotes were being delivered daily in boxcar loads. In October 1923, banknote circulation amounted to 2,496,822,909,038,000,000 and everyone called for more.
It is this last fact that is most telling, that every group believed that the solution was simply more money. They failed to grasp that what was needed was to simply cease all manipulation of the system and let the free market return. Their failure assured that the only possible outcome was the collapse of the system.
And so, as crazy as the above seems, it’s likely to happen again, as human nature is the same today as in 1923. Whether the extreme of hyperinflation will occur, we can’t be sure. What is certain however, is that each of us should be prepared.
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This isn't "human nature" leading us down some blind alley. It's happened enough times in history it's repetition can only be explained at this point by CONSCIOUS INTENT.
Debasing a currency goes hand in hand with debasing an entire society. All "normal" social compacts are broken when things like saving and deferred gratification are spit upon. Imagine you life savings (or multi-generational wealth) being reduced to the value of a happy meal. Up becomes down, left becomes right.
Sounding at all familiar these days?
baffles me how obvious it is and yet so many do not see...won't even look...
Lucky bastards.
Do you think it's by chance that all conservative ideas (not to mention sanity) have been voided from our educational system?
People don't look because they've been told not to look. It's being taken care of by "top men". Who? "TOP. MEN."
You realize, of course, that the high preists who used to perform human sacrifices to appease angry gods never went away, right? They just became economists and policy makers. Don't ask how it works, you wouldn't understand. You're not smart enough. Just realize that they DO understand how it works and, most importantly, you need them or the gods will lay waste to your entire society.
It makes no more sense to believe that bullshit today than it did thousands of years ago, but nobody questions the guy who says he holds your life in his hands. First one to say "you're a fraud" is the first one up on the stake.
I'd guess that the high priest's of old were probably better at handling a sharp knife.
And probably a fair bit more accurate with the predictions of the knife's placement than our modern economists.
The main difference being the guy on the receiving end of the blade probably knew it was coming back in the day.
Economists today do not make predictions. They dispense hopium.
Lying, cheating, stealing, deception, greed, control, domination, ego, small mindedness.
That - is what created the hyper inflationary nightmare.
One fucking dirtbag political decision at a time.
Next stop, America, 2015.
Boy Scout up, motherfuckers.
Be Prepared.
Thirty pounds of silver, check.
a bit of gold, check.
a shit load of food, check.
Cash in hand, check.
Ammo, check.
Wife is a dead-eye natual shot, check.
Water, god damn it, still not enough, got to work on that.
These things happen because they have been planned and not due to a lack of understanding of economics.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered." Thomas Jefferson
I agree- but Jefferson never wrote or said this.
If we're reading this, hell yes they know.
And I think it touches on why they want this to happen - controls and confiscation, "for our own good". Even at the very end the masses that didn't "get it" at the beginning are going to be the ones to help the overlords in the collections and controls. They have to because they have been the beneficiaries of the Free Shit all along.
It is as intended.
CONSCIOUS INTENT? I believe you meant Malicious Intent.
Heil Havenstein!
start building relationships with the neighbors and shoot the first one who starts getting uppity when the worm turns, the rest will fall in line;)
Nature had billions of years experience with a zero tolerance policy. Men decided to tolerate, it was this act of compassion that led to their undoing.
-Tragity of man vol. 1 pt 3 of Hitchikers guide expanded 3rd edition.
Ctrl+P! It's so much easier in the modern age! Who needs paper!?!?
Get ready for the end of cash, NIRP, and the FED hitting "Ctrl+P" at will!
Hey, if $18 Trillion is "sustainable" why not $36 Trillion or $54 Trillion!?!?
Today we'll need wheelbarrows full of credit cards.
I don't believe they can increase contractual debt. Pay off all your loans in weeks.
How many Shit coins fit in a wheelbarrow ?
Crypto question.
can you give me a bit to calculate the answer?
see what I did there? was I asking for time or money? Wait, time is money.
it's so confusing. If they can't print time then they can't print money. So what are they printing?
No, that won't be an option. Credit will be impossible for main street.
"The interest rate charged at the Berlin Stock Exchange in October 1923 hit a high of 7950%, the equivalent of 9% per week."
Actually, in today's environment, we'll only need an EBT card.
Wish I had one.
enter:
>>> bitcoin <<<
- not controlled by any central authority
- not debt based
- easy, cheap and fast to transfer, secure, verify and granulate
- predictable, limited in supply (no debtfiat created out of thin air)
efficient and easily exchangeable store of value that is trusted and decentralized (out of the hands of banksters and governments full of criminal psychopaths)
technological invention of this century, which is secured by science, math and open consensus, with trust machine blockchain at its core
and for the traders: 24/7 non-stop trading nirvana
and full of McGox crooks - ready to steal your money. Noone could explain in simple terms the process of bitcoin creation and I wouldn´t be srprised if the inventor was in possession of a master key able to get it all. Wasted energy - just my 2cent...
Fully expect the federal debt held by the public to be at least $19 trillion by 9/30/18, and $27 trillion by 9/30/22 ... and that's without covering SS outflows.
If German curriculum is like American curriculum - their hyperinflation and the rise of Hitler will be blamed on capitalism and global warming.
shorn up and shorn down
Killing farmers, NOW that's disturbing...What chance do any of us HAVE without the farmers!.....
You get one year to eat the seed, then you're on your own.
Treaty of Versailles, 1919. The cost of the war for all participants totaled 3X the value of Germany.
The Treaty was codified behind Germany’s back, and she was forced to pay 1.7 billion marks a year IN FOREIGN EXCHANGE, for 59 years, until 1988.
Did you catch that ?- IN FOREIGN EXCHANGE.
Hjalmar Schacht, “ The Treaty of Versailles is a model of ingenious measures for the economic destruction of Germany.” …. And .. “Every natural economic advance, every step toward the restoration of economic confidence was made IMPOSSIBLE by the influence of the foreign political factor.
To repeat, good economics were trumped by FOREIGN POLITICAL FACTOR.
Remember also on November 9, immediately after Germany’s surrender, or Bolsheveik friends moved in and threated a communist coup, which was carried out when the Revolutionary Counci l of Commissioners of the People, over threw the Germany government and temporarily took power.
Communist Bolshevism was funded by Wall Street via “credit money” issued by private banks.
Foreign bank meddling into Germany from Wall Street and City of London – why? Germany had the temerity to have the credit of the country vector into GERMAN INDUSTRY. Germany was bypassing English and American money markets, and her industry had become world beating.
England had financed 20% of WW1 through taxation, France 0% and Germany 6%.
Did you catch that? France borrowed money from banks, especially Wall Street, to fund the war. France was on a debt hoooook to the U.S. Treasury.
Schacht wrote that Germany’s money supply went from 7.2B marks in December 1914 to 28.4B in November 1918 at cessation of hostilities. Circulation went from 110 marks per person to 430 marks per person.
Index of wholesale prices rose from 100 in 1913 to 248 in 1918, so labor was not crushed.
The first world war, thus damaged Germany but did not crush her economic system.
That came later with OCCUPATION FORCES.
Also, the externalities are now present… remember France and Versaille Treaty, where debts have to be paid in foreign exchange.
Hyperinflation isn't coming anytime soon. The MOAR CB's print.. the MOAR they dilute purchasing power.
Inflation is demand not intervention driven, as countless insane global monetary infusions have shown.
Once all the cheap 3rd world labor has been exploited, the robots will fill the gap, and the culling can begin.
Just remember how hard it was to buy gasoline in the areas affected by Hurricane Sandy, or ammo anywhere after Sandy Hook. Now imagine a similar shortage of food, and everything the government does (price controls, rationing, threatening to arrest "hoarders") only makes the situation worse.
And to those who say our system will last forever because the American people are too stupid to see how rotten it is, well, when the store shelves are empty, one doesn't need a three-digit IQ to realize something's wrong.
We'll have one problem that they didnt have...the blacks!
Yes, but don't worry, I think it all ends soon. Nobody will lend a national government $ soon, and that stops all this nonsense within 3 years afterwards :
https://thinkpatriot.wordpress.com/2015/11/11/dynamics-of-national-colla...
https://thinkpatriot.wordpress.com/2015/11/10/a-measure-of-propagandas-p...
Germany’s hyperinflation of 1922 to 1923 was by a Private Central Bank. This effectively is similar to Federal Reserve, a banking system under control of private money powers.
Up until then, the Reichsbank had a form of public control, the President and Directors were of the Government, appointed by the Emperor for life.
Reichsbank shared its revenue with its shareholders, but shareholders had NO POWER TO DETERMINE POLICY.
Did you catch that? – NO power to determine policy.
(I’m responding to an Austrian, so I have to speak slowly and repeat things – so bear with me here, those of you who catch on quickly.)
ENTER General Charles Gates Dawes, a Chicago Banker. Yeah (sarc!)
The Allies plan for reconstruction of Germany came to be known as the “Dawes Plan.” Foreign delegates from League of Nations wanted a more open economic system for Germany, and hence more of a “free market” orientation.
Ooops Austrian alert. More free market for Germany. On May 26, 1922 , the law establishing the independence of the Reichsbank and withdrawing from the Chancellor of the Reich any influence on the conduct of the bank was promulgated.
The conversion of Reichsbank to become privatized was a key factor, perhaps the key factor in the hyperinflation.
The stage is now set. Hyperininflation through exchange rate pressures, will then cause speculative attacks by shorting the currency. This is how most hyperinflations in the modern era occur. Remember the Asian currency crises, and the recent attempts to take out Russia?
What a minute? Isn’t speculative attacks market dynamics of a wonderful free market – pure Austrian good?
Germany was in a triangular flow, she had to pay Versailles debts denominated in a foreign currency. Read my first posting…. This is critical to understand.
The triangle was flow from Germany to pay France and England. France needed dollars especially to pay U.S. Treasury. During the war Treasury had sent doughboys over as French paid mercenaries, and France had to pay back the debts. Both France and England lost most of their gold paying back the U.S. and were milking Germany to also pay debts.
Germany made another big mistake, she borrowed dollars from Wall Street to then fund municipal projects. This put dollars into the economy, but they would spin right back out to pay Versaille debts.
So, the U.S. treasury would have its debts wind down, but meantime wall street debts would increase.
Triangle was then from Wall Street to Germany, to France/England back to U.S. Treasury. Wall street money was Credit, created as loans at interest.
The German mark exchange rate came under pressure, especially as Germany didn’t have FX reserves to back it up. Short sellers sniffed out this weakness.
Short sellers take out contracts in currencies they don’t own, to then sell it short. After panicking the markets, short sellers buy back what they shorted and pocket the difference.
In July 1922, the mark exchange rate was 300 to 1, in November it was 9000 to 1, in January 1923 it was 49000 to 1. Buy July 1923 is was 1,100,00 to 1, and by November 1923 is was 2.5T to one dollar.
During this Chaos, the cities of Hamburg, Bremen, and Kiel set up their own private banks to issue money backed by Gold and foreign exchange.
Schact estimated that over half the money supply was private money, issued from sources other than Reichsbank (even though Reichsbank was private too).
The German government never wanted the hyperinflation, and Schact explains this in his books.
Schacht was put in charge of Reichsbank to fix the Hyperinflation. In other words, the Reichsbank was UN-PRIVATIZED, and came back under government control.
Schacht developed currency controls, and new bilateral trading methods. He created the Rentenmark, which could not be spent on paying off FOREIGN DEBTS. Reichsmark was stabilized with CREDIT RESTRICTIONS. Rentenmarks were volume restricted so that people would gain confidence in that unit.
Schacht stopped all of the private credit issuers (private emitting banks) and sent their notes back to the banks for immediate payment. Of course these bankers howled in protest.
Speculators could not trade rentenmarks for speculations when the price went against them, so Schacht crushed the FX “shorting” speculators.
Speculators then learned that Reichsbank could move against them if it wanted to, and thus the Reichsmark was stabilized.
The short selling of the Reichsmark was financed by lavish loans from Reichsbank, when it was privatized by Dawe’s plan. Thus the true cause of the hyperinflation was mechanisms still in place today.
Witness George Soros and his predations on economies.
Hyperinflation ended in Germany when the people lost all faith in "banks" and fiat money. The next day gold came back into fashion and everyone was back to work. The end.
That's a very black/white view of the world.
There were economic principles applied by Hjalmar Schacht that effectively ended hyperinflation in Germany.
That people "lost" faith in banks, we all know.
Anyone can open wikipedia and find that out.
MEFO - Indeed you are a veritable excyclopedia (thats like being Google to you millenials dbags) of socio-economic history. But I will take umbrage at tghe swipe at Austrians. The fact that the Reichsbank went from a Treasury functuion to a free market function was not a move to a "free" Austrian type structure. It was orchestrated as you alluded to, by NYC and London bankers.
So sure it really was like the established ment of the US Fed Reserve in 1913. Indeed it then became more like the repeal of Glass Steagal under Clinton in 1999. The "independent" Fed Reserve decides its best to bail out the Banks while "stimulating the economy" begining in 2009.
Well 6 years later we know that it is a futile exercise, bu tthis time the Central Bank printing proflicacy has been global. Therefore the hyper inflation will be eventually global, as will the World war. Bankers' last gasp ... is always the Large (and expensive) war.
But I enjoy your writing ... you know your stuff...most of the time....ahem. Indeed there was no mention in your posts about the actual MEFOBILLS that once discovered by the Int'l banking community, really signalled the end of the Reichsmarc and German hyperinflation.
MEFOBILLS, the secret printing of currency, ... great stuff.
It gets tiresome refuting the delirium of Austrians.
Your prescription for more jackboots and central control is out of fashion these days. It gets tiresome hearing the same old song from Neo Keynsians.
MEFO I love reading your stuff and and gave you a point but no central bank whether private or government is free market ,it is by definition a monopoly of force in a given geografical area ,no? Not argueing here whether that is good or bad , but it is what it is .
The hyperinflation already happened.
Back in 1916 one could buy a sweet house for around $2547.00, lot extra. That’s 2,547 ounces of silver.
How many 2015 Kennedy half dollars would you need to scrape off to equal the content of that one silver dollar from old? About a wheelbarrow full.
Here’s the house:
http://usercontent2.hubimg.com/6142989.jpg
Wasn't a dollar roughly 0.75 ounces of silver?
There was a President who found a way to end this madness, and issued U.S. money backed by silver, but then he was assassinated, as every President before him who fought the private banks out of the Zionist City of London private banksters bailed out was assassinated.
Remember him this November: John Fitzgerald Kennedy, the last true Commander in Chief. His plan would have ended American debt, and given the power to issue credit and money back to the people to whom it truly belongs.
His American money was withdrawn from circulation shortly after he was assassinated by the usual suspects. He also stopped Israel from having nuclear weapons which they acquired later against international law, and still evading inspection, but blackmailing the world under its Samson Option. Israel, the pet of international financiers, the City of London led by Rothschild, aided by Rockefeller.
German hyperinflation failed only, because the paper was more expensive than the value printed on. For the cashless society: We have seen nothing yet.
There is ZERO possibility of general hyperinflation (vs financial asset price inflation) in the current era because in the current era there is an immense overcapacity of production and an immense overproduction of commodities and goods.
EVERYONE (eg gold religious leaders and followers, Jim Grant, Peter Schiff, etc) who has been predicting general hyperinflation has been grossly wrong. Hyperinflation isn't coming, but general deflation sure is.
I think you are using two different definitions for inflation. Inflation should be defined as the Austrians define it as an inrease in the currency supply not as an increase in asset prices as the current generation of economists define it. According to the Austrian definition we will have massive inflation (after a deflation caused by debt defaults). Meanwhile there will be declines, in real terms, in the prices of those items that have overcapacity of supply.
I am a believer in the Austrian school, BUT the overwhelming majority of the world is NOT, and the overwhelming majority of the proletariat masses understand zero about monetary, financial and economic issues other than what they earn (income) and what they pay for things (prices).
In this context, the only definition of "inflation" that matters pragmatically is "increasing prices for what the proletariat buys, especially essentials".
Using this pragmatic ordinary worker's definition, there is low inflation, and for the reasons that I stated, there will never be, no matter how much ZIRP, QE and NIRP the FED and ECB implement. All the hyperinflation pundits have been totally wrong.
There IS HUGE financial asset price "inflation", and inevitably these prices will collapse and there will be widespread havoc.
Yeah, price deflation will predominate so long as loans default and demand falls faster than new money is printed. But the Fed can print money arbitrarily fast by typing whatever number it wants into a computer and clicking enter.
Moreover, the moment demand slows its rate of decline or heaven forbid stabilizes or rises, price inflation will explode as if out of nowhere due to an orders of magnitude larger money supply out there in circulation vying for goods. The Fed is unlikely to contract that money supply, so I don't think we will avoid hyperinflation in prices. It's just a question of how long plunging demand will mask the inflated money supply.
At some point during deflation money has to become completely worthless? If everyone has some how is it worth anything? Why would you dig a hole for me if you have plenty of money? When so much has been printed you cant buy work? Then it becomes a problem. If everyone has money, money doesnt work? Because money no longer represents work and everyone who doesnt work has it? Why would you work?
Money is supposed to provide incentive to work so you can eat and so you do it? Why else would you? When money doesnt represent work, people who dont work obtain money and therefore there is no longer a reason to work? WTF? Our government has no clue what money is because most of them have never really worked. Period. Saying our government is stupid would be a complement at this point.
At a certain point printing more dollars will literally make them worthless? Its just paper, I dont want my money to be the same as what the herd is using because I really work. People end up not working and our government insists on ruining the currency and work ethic of the country. FUCK THE FED.
How do you think the people who have no work have been eating? I work for my food still? Money is all about work and just look at the participation rate to see how many actually work these days? A system where many do not HAVE to work is doomed to fail. Also when you print money power becomes distorted and ends up in the hands of GREED.. Sound familiar?
Keep printing and ask yourself why people dont want to work? Ive worked since I was 15, I understand what work is, its very therapeutic. Im 43 now and have never accepted a government benefit.
The government is undermining those who work by giving those who dont work benefits that match those who do work. If it was as simple as just giving everyone money, we would have been there centuries ago? Its about providing opportunities to work. If there are no opportunities there is no real money. When they propose drastic changes to the economy they should also have to show a model of what they are thinking?
We are at the end of growth. The outstanding debt will be defaulted on. Between now and then no government can resist the expedient of filling its depleted coffers with conjured money. The hedonistic calculus is easy, blood in the streets now or failed currency later. Later is always deemed to be better.
We here in the south have an ethnic memory of what it was like when the government loosed its marauders on the countryside. Little old ladies buried the family silver in the back yard and stood back and watched as the government burned their businesses and homes to the ground. When the smoke cleared and the embers cooled, and the marauders left, their sons and daughters dug up the silver and rebuilt.
There is hyperinflation but its in the asset markets.
YOu see we have a two tier economy. Real economy. Financial. And the financial is in a huge bubble and the rest is at its peak in the b cycle, a lowly peak at that.
So from here on its down hill. But the financial economy will collapse and each time it does the fed demands it cleans its losses in the real economy. Weakening the real economy further each time.
You guys got me wrong.
I'm not for a central bank. I think credit as money = bad things.
Making money public, not based on a debt instrument is, to my mind, the real answer. Once that happens, then the private markets begin to function.
Public money is a bit like gold, it is exogenous money made outside of the banking system.
Bankers then work for fees, Loans are made from people's savings.
A third circulation needs to happen for international trade, so nations transaction medium does not get polluted.
I usually just get pissed off when Austrian's make claims that have no basis in history or reality - that's all. Some Austrian ideas are relevant.