andyh wrote:
Barnfish wrote:
Andyh, what will you replace money, FR and interest with?
Thats up to the people involved in whatever system they choose.
I'm not the NaN type so I'm not the perfect benevolent dictator
NB: I should add that FR needn't exist at all as part of the monetary system. Banks needn't be anything like as major an aspect as they are today. Only loaning occasionally for business purposes with self risk. If that happened prices would plummet as credit would not be available generally. Wages would not need to keep pace with inflation because there would be no inflation.
Again such an economy is difficult to bring about and maintain within any single nation unless its quite self reliant and not corrupt and so on and so forth. We have had it in the past and it worked just fine, the example is ofc the wild west but back then homesteads are what kept that working.
Today you cannot walk out into the countryside and build your own house, the land is owned. There might be some countries where it is still allowed somewhere, personally I don't know of any offhand. Given the amount of empty wild land it 'ought' to be something forced upon the landowners but again thats not going to happen either.
Right right right. So for me to point out that one system is not a solution I must offer another solution (according to you earlier). But its ok for you to just point out a problem and offer no solution? OK
FR banking isn't needed.
I'm glad you've said that.
What is the alternative to fractional reserve banking? Full reserve banking. Without FR banking, as I have already explained, all that happens is money slowly leaves the market to sit untouched in the elites bank accounts. There are no scope of loans whatsoever.
So you're advocating a system where loans cannot exist. What if you want a new car? What about the creation of future prosperity, business start ups and such like?
What about the big one, housing. Are you suggesting that people aren't given the means to own their own home? No mortgages?
No homes for anyone except the elite who can pay for it outright?
What about the elite still being able to create inequality, and artificial scarcity by hoarding their money? The only outcome of such a system is complete collapse.
What about if a bank gets robbed? If full reserves need to be held at the bank, what happens when a bank gets robbed? Who loses out?
Good idea
I'll bet you're one of these people that thinks FR banking is "fraud" aren't you?