S8 Ep1189: John Tamny, author of The Money Confusion: How a Literacy About Currencies and Inflation Sets the Stage for the Crypto Revolution, provides an unconventional analysis of money, arguing that its only purpose is to circulate consumable goods as a product of
The John Batchelor Show | Aug 03 2026 | 00:39:06
John Tamny, author of The Money John Tamny, author of The Money Confusion: How a Literacy About Currencies and Inflation Sets the Stage for the Crypto Revolution, provides an unconventional analysis of money, arguing that its only purpose is to circulate consumable goods as a product of specialized labor. Drawing on Adam Smith's principles, he asserts that wealth is created through the division of labor and that money is simply an agreement about value between producers. Tamny contends that current fears of "inflation" are misguided; he defines real inflation as a deliberate devaluation of currency by policy choice, such as the 1971 delinking of the dollar from gold. The book argues that the high prices seen after 2020 were caused by the economic destruction of lockdowns, not an excess of money. Tamny is highly critical of the Federal Reserve, claiming it has no real power over growth or interest rates for startups, as true credit always finds talent regardless of central bank fiddling. He uses Elon Musk as a recurring example of an innovator whose success in companies like PayPal and SpaceX was driven by venture capital and risk-takers rather than traditional banks. Tamny envisions a crypto revolution where private, stable money replaces failed government currencies. He suggests that the recent volatility in crypto is a healthy "shaking out" of the market, paving the way for mature, information-based money systems. He speculates that Musk may eventually use Twitter to launch a global, stable cryptocurrency, finally fulfilling the vision of a "global financial supermarket." (5)
Confusion: How a Literacy About Currencies and Inflation Sets the Stage for the Crypto Revolution, provides an unconventional analysis of money, arguing that its only purpose is to circulate consumable goods as a product of specialized labor. Drawing on Adam Smith's principles, he asserts that wealth is created through the division of labor and that money is simply an agreement about value between producers. Tamny contends that current fears of "inflation" are misguided; he defines real inflation as a deliberate devaluation of currency by policy choice, such as the 1971 delinking of the dollar from gold. The book argues that the high prices seen after 2020 were caused by the economic destruction of lockdowns, not an excess of money. Tamny is highly critical of the Federal Reserve, claiming it has no real power over growth or interest rates for startups, as true credit always finds talent regardless of central bank fiddling. He uses Elon Musk as a recurring example of an innovator whose success in companies like PayPal and SpaceX was driven by venture capital and risk-takers rather than traditional banks. Tamny envisions a crypto revolution where private, stable money replaces failed government currencies. He suggests that the recent volatility in crypto is a healthy "shaking out" of the market, paving the way for mature, information-based money systems. He speculates that Musk may eventually use Twitter to launch a global, stable cryptocurrency, finally fulfilling the vision of a "global financial supermarket." (5)
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Confusion: How a Literacy About Currencies and Inflation Sets the Stage for the Crypto Revolution, provides an unconventional analysis of money, arguing that its only purpose is to circulate consumable goods as a product of specialized labor. Drawing on Adam Smith's principles, he asserts that wealth is created through the division of labor and that money is simply an agreement about value between producers. Tamny contends that current fears of "inflation" are misguided; he defines real inflation as a deliberate devaluation of currency by policy choice, such as the 1971 delinking of the dollar from gold. The book argues that the high prices seen after 2020 were caused by the economic destruction of lockdowns, not an excess of money. Tamny is highly critical of the Federal Reserve, claiming it has no real power over growth or interest rates for startups, as true credit always finds talent regardless of central bank fiddling. He uses Elon Musk as a recurring example of an innovator whose success in companies like PayPal and SpaceX was driven by venture capital and risk-takers rather than traditional banks. Tamny envisions a crypto revolution where private, stable money replaces failed government currencies. He suggests that the recent volatility in crypto is a healthy "shaking out" of the market, paving the way for mature, information-based money systems. He speculates that Musk may eventually use Twitter to launch a global, stable cryptocurrency, finally fulfilling the vision of a "global financial supermarket." (5)
1870 manhattan