Full Reserve Banking

[Fake Boris]

Is the only way out of the crisis.

http://www.fullreservebanking.com/index.htm

It's simple really.

1) Fed buys all public debt with printed money
2) Banking reform

a) abolishes fractional reserve banking

b) mandates separation of savings and current accounts

3) The extra money roughly corresponds to the assets required to back current accounts; little to no inflation
4) Public spending is funded @ 3-5% through monetary creation; no more borrowing by the State prevents credit from becoming too scarce

[Elok]

I think we tried paying all our debts by printing money back during the Revolutionary War. It did not work well.

[Lorizael]

I don't know enough to know what's wrong with your proposal, but I'm sure someone will be along shortly to call you an idiot for making it.

[Fake Boris]

I don't know enough to know what's wrong with your proposal, but I'm sure someone will be along shortly to call you an idiot for making it.

The key is to abolish fractional reserve banking. If you do, there won't be any inflation.

[Elok]

I don't know what fractional reserve banking is, but if ditching it lets us print out massive amounts of cash and have each bill be worth as much as before--essentially allowing us to generate infinite value out of ink, paper and goodwill--I am unsure why it has not been abolished already.

[Fake Boris]

I don't know what fractional reserve banking is, but if ditching it lets us print out massive amounts of cash and have each bill be worth as much as before--essentially allowing us to generate infinite value out of ink, paper and goodwill--I am unsure why it has not been abolished already.

You raise a most important point Sir.

You should really check this link:
http://www.fullreservebanking.com/def.htm

TLDR: fractional reserve has not been abolished because it allows private banks to exert control over the money supply. This is lucrative.

[N35t0r]

Do tell how somehow releasing millions of dollars into the market will not rise prices.

Fractional reserve exists because it can lend significant amounts (10 to 20 times as much) of money compared to full reserve banks. A move like this will, among other things, make loans extremely expensive and hard to get.

[Fake Boris]

Do tell how somehow releasing millions of dollars into the market will not rise prices.

Fractional reserve exists because it can lend significant amounts (10 to 20 times as much) of money compared to full reserve banks.

Central banks could easily do this by issuing enough currency. What fractional reserve really means is that monetary creation is privatized.

A move like this will, among other things, make loans extremely expensive and hard to get.

Not if:

1) governments fund their expenses through monetary creation - this will free up credit for businesses and individuals
2) fractional reserve is still allowed on savings accounts

[Aeson]

Seems like re-arranging deck chairs to me.

[Dinner]

The key is to abolish fractional reserve banking. If you do, there won't be any inflation.

Oh, Jesus Christ. Just kill yourself and save the rest us from your stupidity.

[Dinner]

Do tell how somehow releasing millions of dollars into the market will not rise prices.

Fractional reserve exists because it can lend significant amounts (10 to 20 times as much) of money compared to full reserve banks. A move like this will, among other things, make loans extremely expensive and hard to get.

Mostly because the changes are a fraction of a percent due to the massive amount of dollars already in circulation and because rarely do bills actually exist on paper but instead just on federal Reserve spread sheets. They give loans and when those loans are repaid, and they are always short term loans, they can and do also delete money from the spread sheet. That way they can adjust the money supply both ways to up or down to respond to either inflation or deflation.

Stop listening to the ignorant babbling of the Paultards. If you really want to get good and factual information then pick up an economics text book. There is a reason not a single country is still on the gold or silver standard.

[N35t0r]

Mostly because the changes are a fraction of a percent due to the massive amount of dollars already in circulation and because rarely do bills actually exist on paper but instead just on federal Reserve spread sheets. They give loans and when those loans are repaid, and they are always short term loans, they can and do also delete money from the spread sheet. That way they can adjust the money supply both ways to up or down to respond to either inflation or deflation.

Stop listening to the ignorant babbling of the Paultards. If you really want to get good and factual information then pick up an economics text book. There is a reason not a single country is still on the gold or silver standard.

lolwut? There's over trillions of dollars in outstanding loans. He's suggesting the government 'buys out' all of these privately issued loans with new cash. This amounts of new cash would hardly be 'a fraction of a percent'.

[Elok]

Seems like re-arranging deck chairs to me.

Yes, that's the beauty of it. Let me lay it out for you: we start stacking the deck chairs to build a tower. When we've used up all the chairs, everybody climbs up on top of the tower, and we reach down with a long stick to remove the bottom chair and put it on top (we'll have to cling to the sides while this is happening). This bottom-to-top scheme serves two purposes:

1. It gives us an effectively infinite supply of chairs.
2. It keeps us out of contact with the boat, thereby eliminating all danger of sinking with it.

Once we're free in the air, we can start incrementally shifting the orientation of the chairs to "steer" the tower. In practice, there will be a learning curve, but there's essentially no reason why we can't build a tower to the moon this way. It will take long enough that technological progress will naturally provide us with the means of breathing by the time we get there. It's a foolproof plan.

[Sir Og]

Is the only way out of the crisis.

http://www.fullreservebanking.com/index.htm

It's simple really.

1) Fed buys all public debt with printed money
2) Banking reform

a) abolishes fractional reserve banking

b) mandates separation of savings and current accounts

3) The extra money roughly corresponds to the assets required to back current accounts; little to no inflation
4) Public spending is funded @ 3-5% through monetary creation; no more borrowing by the State prevents credit from becoming too scarce

Despite the existence of fractional reserve banking current central banks have all the tools they need to control the money supply. There is nothing stopping them to reach any nominal goal they set for themselves.

Fractional reserve banking does not cause the bad kind of inflation/deflation. Incompetent central banks do.


Also the biggest problem with inflation since 2008 for most countries was that it is too low.

[Fake Boris]

Oh, Jesus Christ. Just kill yourself and save the rest us from your stupidity.

You don't understand anything, don't you?