News

Loading...

Tuesday, July 17, 2012

100%-Reserve Banking Is Available Now!

I have sometimes heard 100%-reservists say that 100% reserve banking would be overwhelmingly chosen by customers if it were available.

Well, as Kurt Schuler notes, it is available, at almost every bank. It is called a safety deposit box.

How many of you people who think fractional reserve banking is fraudulent are keeping your money exclusively in the 100%-reserve system instead?

NOTE: By the way, I yanked the post previous to this one because I realized I didn't have the stomach for the follow-up s&*t storm right at the moment.

4 comments:

  1. They obviously mean in a free market of competing currencies, not in a system like we have now.

    ReplyDelete
  2. "NOTE: By the way, I yanked the post previous to this one because I realized I didn't have the stomach for the follow-up s&*t storm right at the moment."

    That is unfortunate. I really thought I managed to write a funny comment. :)

    ReplyDelete
  3. I'll bite. You can't write checks, get a debit card or do money transfers if your money is in a safety deposit box but you could if it were in a 100% reserve backed checking account. Or am I missing something?

    Senyor

    ReplyDelete
    Replies
    1. Correct. There are many advantages to letting banks lend out your money: for instance, they give you all of these services!

      Of course, if there were any demand for it, they could give you those services for the money in your safety deposit box too: you'd just pay through the nose.

      That's why customers prefer fractional reserve banking!

      Delete