Had an idea... Correct me if I'm wrong on any of the fundamentals, as I'm still learning the whole essence of the Austrian school of economics, but I think I found a paradox which discredits a major part of the philosophy, and essentially invalidates it at the core. From what I understand, the modern Austrians don't like government intervention, banking multipliers (leverage). They like pure and free markets. If there is a built in deflationary bias due to productivity and population growth, the Austrian school (or at least the Ron Paul obsessed) don't believe money supply should be ever -not- backed by some precious metal commodity. I am not sure their attitude on adjusting money supply if the commodity is available to account for deflationary bias (ie if the fed needs to increase dollar supply, it stockpiles more gold). Someone correct me or answer this question please. Finally, from what I understand, they like completely free and unfettered markets, and ultimately buy the 'invisible hand' concept. The market will take care of itself when prices end up where they should be. Social consequences don't matter to the Austrians (correct me if I'm wrong). In the end, the currency is viable, but there is no trampoline or safety net. Money for investment (due to lack of fractional reserve and credit) is harder to come by, and I imagine only what society determines the best investment gets money. So the flaw I see besides an inherent incompatibility with socialist society: A paradox. Austrian economics want pure capitalism (self interest), yet they want to purposefully exclude self interest motivated capitalistic behavior in the government and beholden sectors (banking) from acting capitalistic. In truth, what is happening today is a perfect example of the banking cartel having their way, continuing a transfer of wealth from the populous to themselves through their connections. But by definition, this is free market behavior, just as monopolies and oligopolies occur in free market. In fact, one could call the banking system an oligopoly that ultimately controls all of our wealth using the Fed as its proxy (indirectly (arguable) forcing them to dilute the money supply right now). Political will does not accept economic catastrophe. Austrians do. So if I am seeing it correctly, the Austrians want their cake (a government and banking cartel not involved in the capitalistic pursuit) and at the same time unfettered capitalism. But by definition, the behavior of those in power to continue the perpetuate their power is the hallmark of unfettered and unregulated capitalism. Those are my two cents. Please no "sound money" mantras ... But please educate me without blasting me on how I'm an idiot because I don't buy into the Austrian hype. Correct me if I'm wrong on any fundamental points and point me to specific areas I have flaws and I'll be glad to learn more details. Just getting into this.