100% reserve banking would prevent banks from lending money. I trust that an explanation for why this would be disastrous for the economy is not required.
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Fractional Reserve Lending
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RE: Fractional Reserve Lending
October 19, 2016 at 4:23 pm
(This post was last modified: October 19, 2016 at 4:24 pm by The Grand Nudger.)
Not prevent, just severely limit. They could still extend credit based upon their profits, theoretically. So long as they maintained enough on hand to cash out all depositors it would satisfy the reserve requirement.
I am the Infantry. I am my country’s strength in war, her deterrent in peace. I am the heart of the fight… wherever, whenever. I carry America’s faith and honor against her enemies. I am the Queen of Battle. I am what my country expects me to be, the best trained Soldier in the world. In the race for victory, I am swift, determined, and courageous, armed with a fierce will to win. Never will I fail my country’s trust. Always I fight on…through the foe, to the objective, to triumph overall. If necessary, I will fight to my death. By my steadfast courage, I have won more than 200 years of freedom. I yield not to weakness, to hunger, to cowardice, to fatigue, to superior odds, For I am mentally tough, physically strong, and morally straight. I forsake not, my country, my mission, my comrades, my sacred duty. I am relentless. I am always there, now and forever. I AM THE INFANTRY! FOLLOW ME!
True and agreed, but 'severely limit' is an understatement. Could you imagine the interest rates that could be commanded with such a disparity between supply and demand, not to mention setting up an environment where corruption becomes business as usual?
 (October 19, 2016 at 4:23 pm)Rhythm Wrote: Not prevent, just severely limit. They could still extend credit based upon their profits, theoretically. So long as they maintained enough on hand to cash out all depositors it would satisfy the reserve requirement. Does it have to be cash? Why not any commodity, like carfentanyl? Would certainly make the depositors very happy, at least short term.
I don't have an anger problem, I have an idiot problem.
RE: Fractional Reserve Lending
October 19, 2016 at 5:07 pm
(This post was last modified: October 19, 2016 at 5:07 pm by The Grand Nudger.)
I have no idea...some people think it should be gold. Ultimately, the reserve has to be something of value, but I opined on that earlier when I mentioned that as long as people would accept iou's (in the case of banks digital ones) as compensation then the iou's -have- value and so their ability to offer them -is- a reserve (and little peices of green paper are just gov backed iou's anyway). Could be fucking seashells for all I care, so long as I can buy a bottle of bourbon with em.
I don't know why people think some of the things they do.
I am the Infantry. I am my country’s strength in war, her deterrent in peace. I am the heart of the fight… wherever, whenever. I carry America’s faith and honor against her enemies. I am the Queen of Battle. I am what my country expects me to be, the best trained Soldier in the world. In the race for victory, I am swift, determined, and courageous, armed with a fierce will to win. Never will I fail my country’s trust. Always I fight on…through the foe, to the objective, to triumph overall. If necessary, I will fight to my death. By my steadfast courage, I have won more than 200 years of freedom. I yield not to weakness, to hunger, to cowardice, to fatigue, to superior odds, For I am mentally tough, physically strong, and morally straight. I forsake not, my country, my mission, my comrades, my sacred duty. I am relentless. I am always there, now and forever. I AM THE INFANTRY! FOLLOW ME!
(October 19, 2016 at 4:51 pm)Cato Wrote: True and agreed, but 'severely limit' is an understatement. Could you imagine the interest rates that could be commanded with such a disparity between supply and demand, not to mention setting up an environment where corruption becomes business as usual? Yeah, it'd be great for the loansharking business, for sure.
I am the Infantry. I am my country’s strength in war, her deterrent in peace. I am the heart of the fight… wherever, whenever. I carry America’s faith and honor against her enemies. I am the Queen of Battle. I am what my country expects me to be, the best trained Soldier in the world. In the race for victory, I am swift, determined, and courageous, armed with a fierce will to win. Never will I fail my country’s trust. Always I fight on…through the foe, to the objective, to triumph overall. If necessary, I will fight to my death. By my steadfast courage, I have won more than 200 years of freedom. I yield not to weakness, to hunger, to cowardice, to fatigue, to superior odds, For I am mentally tough, physically strong, and morally straight. I forsake not, my country, my mission, my comrades, my sacred duty. I am relentless. I am always there, now and forever. I AM THE INFANTRY! FOLLOW ME!
Dullest...thread...ever.
But it isn't you guys, it's me. Economics and fiduciary policy are important, no possible doubt, but when I read about it, I feel as if I'm slowly drowning in a vat of room-temperature wallpaper paste. Boru
‘But it does me no injury for my neighbour to say there are twenty gods or no gods. It neither picks my pocket nor breaks my leg.’ - Thomas Jefferson
 (October 19, 2016 at 7:00 pm)BrianSoddingBoru4 Wrote: Dullest...thread...ever. I'm with you on that one.
It's hard to bring the sexy back on this one, agreed...but I enjoy the calm, measured convo, personally.
I am the Infantry. I am my country’s strength in war, her deterrent in peace. I am the heart of the fight… wherever, whenever. I carry America’s faith and honor against her enemies. I am the Queen of Battle. I am what my country expects me to be, the best trained Soldier in the world. In the race for victory, I am swift, determined, and courageous, armed with a fierce will to win. Never will I fail my country’s trust. Always I fight on…through the foe, to the objective, to triumph overall. If necessary, I will fight to my death. By my steadfast courage, I have won more than 200 years of freedom. I yield not to weakness, to hunger, to cowardice, to fatigue, to superior odds, For I am mentally tough, physically strong, and morally straight. I forsake not, my country, my mission, my comrades, my sacred duty. I am relentless. I am always there, now and forever. I AM THE INFANTRY! FOLLOW ME!
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