General Discussion

bossy22

(3,547 posts)

8. exactly

Sun Dec 16, 2012, 11:24 PM

Dec 2012

you have just essentially moved lending as a function of banks that is regulated to private individuals.

What you say is exactly how modern lending works- a bank takes 10 dollars in as a deposit, and then lends out 9.

Either you have a centralized lender (a central bank) or Lending institutions (which would negate much of the benefit of a full reserve system i.e. liquidity crises) or you will wind up with a nation of loan sharks. Money isn't just paper and metal coins with dead presidents faces on them- money is a whole continium that includes "Credit" as well.

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Icelandic Parliament investigating Full Reserve Banking [View all] tama Dec 2012 OP

I always wondered how this would work in a modern economy bossy22 Dec 2012 #1

Why? tama Dec 2012 #4

exactly bossy22 Dec 2012 #8

This message was self-deleted by its author tama Dec 2012 #13

Does full reserve banking imply that we pay banks to hold onto our money? Jim__ Dec 2012 #2

We already pay banks for various services and interest for loans tama Dec 2012 #3

But we don't usually pay them to hold our deposits. Jim__ Dec 2012 #9

No, nothing illegal tama Dec 2012 #14

it's clear to me that you don't understand modern banking bossy22 Dec 2012 #10

What we have in this country Dickster Dec 2012 #5

umm....you just described fractional reserve banking bossy22 Dec 2012 #11

Excellent! hunter Dec 2012 #6

As long as I' here Dickster Dec 2012 #7

you do realize that by law the interest earned on federal reserve assets bossy22 Dec 2012 #12