Hans F. Sennholz Quote

"Sound money and free banking are not impossible; they are merely illegal.
Freedom of money and freedom of banking... are the principles that must guide our steps."

by:	Hans F. Sennholz (1922-2007) German-born economist from the Austrian school of economics who studied under Ludwig von Mises
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Categories:	Banking, Economics, Freedom, Integrity, Law, Money
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Now that the government is heavily in the banking business, it will no doubt get worse. We are almost completely a socialist country now and B.O. will finish us off if elected.  -- jim k, austin      1
I don't know enough of the subject to make an intelligent comment. If by free banking he meant, a laissez-faire system based on provable history and deductive logic with lawful limits in the first sentence I would give 10 stars. If Sennhotz meant freedom of money and freedom of banking in the second sentence, as would be adverse to a socialist (communist) system and a credit based fiat supply of monetary units, I would also have to give it 10 stars. But alas, I don't know, so nothing. ;-)  -- Mike, Norwalk      1
I hate to admit it but I am with Mike on this one. The Germans and Austrians are as in bad shape as anyone else right now. Sound money would seem to be freedom from inflation/deflation and banking is free hell not only free but they pay you interest. Just don't borrow from them!  -- Waffler, Smith, Arkansas
Mike, I think Sennholz means both. The Austrian School of Economics acknowledges that interest-bearing fiat currencies ultimately funnel wealth and all control of wealth to the central bankers -- I wouldn't equate that with "Sound money and free banking" and "Freedom of money and freedom of banking." I do not believe the Constitution grants the Congress to require Americans to accept 'legal tender' in lieu of gold or silver dollars. Grisham's Law: Bad money pushes out the good.  -- E Archer, NYC
That's Austrian as in Austrian economic theory, Waff. It doesn't refer to the economy in Austria or economists who currently reside there. People who have studied Austrian economic theory have been predicting the current bubble and burst for quite some time. It is the result of the business cycle created by the meddling of central planners.  -- Bryan Morton, Stuart, FL      1
..laughs.. Thank you, Bryan... I was just going to let that one go, but Mises would be proud of you. = ) It's nice to see that other people are doing their research as well.  -- Logan, Memphis, TN      1
Sadly they don't follow the Austrian school even in Austria. Weve been following the Chicago school here and see where it has gottte us. Nice to know some people (not referreing to you Bryan) know everything about everything and got time to do research also, even if they cannot decipher phone constructions like "the US is a republic and not a democracy". I had a sense that what I was referring to was just a little bit funny. I did not know that all folks all the time want to treat this site as if it is a Phd dissertation. Lighten up Logan! At least you now believe the US is a majority ruled society.  -- Waffler, Smith, Arkansas
Waffler, you keep puttin' them words in my mouth -- if ever I wrote the words "the US is a majority ruled society" then it was in the quest of getting you to finally understand a greater idea wherein the majority may decide the course of state, but with absolute, eternal, and lawful bounds that are outside the amending power of the majority. It was understood that the elected Representatives first look to the established law (natural and statutory) first and then to the people (hardly what ANY political scientist would call a Democracy). The majority cannot decide to hinder my free speech; although they may usurp their bounds and use force by virtue of their mass over mine to force me to not exercise my rights. The majority cannot legitimately rule against illegal search and seizures, warrentless searches, habeas corpus, etc and maintain de jure and non-usurpation. The majority may decide against the individual's right, but such is de facto "law", usurpation, and tyranny. It's not a hard concept to understand, but one you seem hell bent on not accepting. There is no need to treat the forum like a Phd dissertation, but when you make outrageous claims that are without merit and are not based in any reality -- you will be called on it. If you think that requesting facts is like being a part of such a dissertation, maybe you should take life a little more seriously -- you should, you know? Your ability to express your liberty and freedom is at stake. But, believe me, the little I have ever asked you to back up what you have said is nothing like a Phd dissertation; you'd be swallowed up and spit out -- I'm just asking for a little legitimacy here. Maybe just a little substantial information -- if that's not too hard for you Waffy, we'd sure like to hear it from you. BTW Waffy, just to reiterate Bryan, the Austrian theory of economics has nothing to do with Austria (it's also been called the "Vienna School" as well). You might want to do some more homework again before you post next time.  -- Logan, Memphis, TN      1
Logan, you've presented a very clear and reasonable argument. Unfortunately, when I consider who you are addressing I'm reminded of that saying about teaching a pig to sing.  -- A.WOODS, Gloucester      1
I think he is referencing the monopoly held by the central banks of the world to produce fiat currency or issue credit as currency, even though they do so "out of thin air". In this regard I think he is further suggesting that said monopoly is protected "by law" so as to hold absolute control of the economy and any individuals efforts to thrive. Whereas if we had sound money (not an impossible thing) we would ourselves control our destinies through free markets and free choice. Abolish the Fed.  -- J Carlton, Calgary
Mike, Waffler agreed with you. You may need to rethink your position.  -- j, Austin, Tx
(-; jim OK ! ;-) I've thoroughly rethought my earlier position - now Waffler won't have to hate anything but freedom, liberty, law, justice, and inalienable rights. I've now read sufficiently on Austrian economics (as is averse to Keynesian economics - Austria, Germany, United Socialists of Amerika, WHAT ? ? ? ) and give the quote 5 stars (and thats only because that is the here highest rating possible).  -- MIke, Norwalk
Yes, using gold as money has been illegal since 1934. That should tell you something considering the Constitution declares that only gold and silver may be used as money in the USA. As well, to debase the US currency is punishable by death -- still waiting for someone to be charged on that, though...  -- E Archer, NYC
-- walter, Gulph

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