Watch the full 24-minute video at http://www.goldmoney.com/polleit-turk-interview. Thorsten Polleit, http://thorstenpolleit.com, and James Turk, Director of the GoldMoney Foundation, talk about the Austrian school of economics and the Austrian Theory of the Business Cycle (ABCT). They talk about the euro as a fiat currency and how fiat money in general distorts the market and capital allocation.<br /><br />James explains how malinvestment is encouraged by these distortions, how boom and bust cycles and financial bubbles are symptoms of bank credit expansion under a fiat currency system. The also discuss the role of fractional reserve banking. Thorsten recommends Murray Rothbard’s “The Mystery of Banking”.<br /><br />This interview was recorded on October 1st 2011 in Vienna.
