I believe I misunderstood your arguement then.

I agree wholeheartedly. Well put.

His argument is really no different (in principle, at least) than arguing that it is immoral to own a grocery store or a restaurant, since doing so requires you to act as a tax collector for the state. By his logic, doing so would make you a voluntary participant in the state’s institutionalized theft. You would be an “armed robber”, in his words. Again, I disagree.

People who provide products and services that are in demand are performing a vital role in the free market. If providing these things requires some cooperation with the state, that’s unfortunate, but it doesn’t mean they shouldn’t be provided. If the act of buying something is not immoral, then neither is the act of selling it.

Government possesses a monopoly on most of those things, the post office, government roads, etc. I, like GE, do my best not to use them–but it isnt in any way immoral to use them since they are the only options available to us. As much as possible, I send email instead of mail–etc.

This ISNT the same as GE’s arguement. GE’s claims John Allison could have self-imposed a 100% reserve on his own banks,which he admits would have killed his own company—so GE’s assertion is basically that Allison should’ve not entered the banking industry. I differ, I think Allison has every right to enter ANY industry and compete. In order to remain competitive, he is forced to participate in fractional reserve banking—and I dont view this as immoral. I wouldnt do it, but I dont see it as immoral. I believe Walter Block and Thomas DiLorenzo would side with me.

But you’ll have to go even further if you want to be ideologically consistent: no driving on government roads, no walking on government sidewalks, no government mail, no dealing with any company that has lobbied for and received government subsidies, and so forth. Hell, you can’t even read this website, since it’s got freakin’ copyright protection!

(And before you say that “those things are bad, but not as bad as banks”, that’s just a matter of degree, while your argument is based on pure principle. If it was a matter of degree, you wouldn’t be comparing Allison to Bernanke.)

So, I guess we’ll have to agree to disagree. Have fun living like a hermit!

Is Ben Bernanke a “free market” hero? If not, why not? What if he donated a few million to your favorite cause? Would this make him “heroic?”

Government counterfeiters are not heroic, and they’re NOT free market, no matter what.

Libertarians should not be involved in direct theft and plunder. Yeah. There is absolutely no comparison between the banking industry and anything else. Even Halliburton is more of a “heroic” company than any Fed bank.

I never said it wasnt. The Federal Reserve IS a moral wrong. But to claim each of its several thousand participants (some of whom are Austrians) are “statist, immoral, etc” is just plain retarded. If you’re going to condemn anyone who benefits from government, you’ll be a very angry and lonely person.

Banking — that is, lending savings and investments — is essential. Counterfeiting is not, and is DESTRUCTIVE to society. Someone who sets out to “capitalize” on the carterlization of the banking economy, by offering a predatory service that would NOT EXIST under a free market, is by definition NOT a “free market” hero.

Allison is an armed robber who gives back some of his ill-gotten gains to good causes. That’s not heroic, and it CERTAINLY is not “free market.”

If, on the other hand, you’re saying that it’s OK to patronize banks, but it’s not OK to own them or work for them, then you’re like those people who say that there’s nothing wrong with using illegal drugs, but there is something wrong with selling them.

In that case, my response would be the same to you as it is to them. Drug dealers are performing a service by supplying something that’s in demand. Do I always approve of their business practices? No. But are they necessary for society to function properly? Yes. Same thing with banks.

Finally, it’s important to remember that even if the money is somehow “tainted”, it can still be put to good use. For more on that, check out this article by Walter Block:

http://www.lewrockwell.com/block/block100.html

Allison is a legalized counterfeiter. The “service” of lending counterfeit money at interest would NOT exist in a free society, except as a crime. Which is what it is.

Again, there’s NO comparison.

Ron Paul still benefitted from artificial, government-mandated barriers to entry from his competition.

True. This is unavoidable.

the vast majority of small businesses in this country are started with capital obtained via bank loans.

I’m skeptical that this is true. I’ve started several businesses, including decently well-capitalized ones, and I’ve never sought a bank loan (and not for ideological reasons, either).

Are all these small business owners complicit in the state’s crimes? Is anyone who ever got a degree from a state university evil?

No and no. If you can’t see the difference from deliberately setting out to be one of the counterfeiters and “working within the system,” then we can’t go any further. There’s clearly a difference. If the standard you’re suggesting I adopt is accepted, then you’re right, everyone is guilty. But if Allison is off the hook, then literally NO ONE is guilty.

I’m all for abolishing the state immediately. But what are we supposed to do until that happens? Go back to living like cavemen?

Absolutely not. But we can NOT be Fed bankers, for god’s sake. That’s not a lot to ask.

Also, the vast majority of small businesses in this country are started with capital obtained via bank loans. Are all these small business owners complicit in the state’s crimes? Is anyone who ever got a degree from a state university evil?

I’m all for abolishing the state immediately. But what are we supposed to do until that happens? Go back to living like cavemen?

Ron Paul, by contrast, refuses to accept Medicaid and Medicare — but even a doctor who does accept them is providing a REAL service. Allison lends money created out of thin air with the special permission of the government. There is no comparison.

Having a required license to perform a vital service vs. gaining permission to counterfeit…. NO COMPARISON!

Doctors have to have a government license to practice medicine. Does that make Ron Paul a crook?