Watch the whole 1 hour and 6 minute presentation at http://www.goldmoney.com/huerta-de-soto-presentation. In this second video, Jesús Huerta de Soto, Professor of Political Economy at Rey Juan Carlos University, Madrid, (http://www.urjc.es/) discusses why Robert Peel’s Bank Act of 1844 was a failure, despite its good intentions. Although the Act placed legal limits on banks’ issuance of paper notes, its failure to place the same limits on deposits allowed banks to pyramid deposits, which ultimately led to the fractional reserve banking that we have today.
