Full Reserve Banking

[Lorizael]

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

Looks like I was wrong. Someone was along shortly to suggest you should die for proposing your idea.

[Felch]

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.

You do realize you're the first person to mention a gold standard in this thread, right?

[N35t0r]

My guess is he's responding to another post made in some other thread. Or maybe made up in his mind. Who knows.

[Imran Siddiqui]

You do realize you're the first person to mention a gold standard in this thread, right?

The gold standard is a form of full reserve banking (in that case the reserve is, of course, made up of gold).

Anyways, its a dumb idea for a few reasons. For one, private banks setting the money supply is something that is more than factored in by the central banks - they can control money supply quite easily though the amounts they loan to private banks or playing with reserve rates if they'd like. Secondly, under full reserve banking loans would get less plentiful leading a lot of lending to go outside of the full regulated banking sector. That'd likely be worse.

[Dinner]

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'.

A year or so back KrazyKitty crunched the numbers on the inflation of the money supply due to quantitative easing was less than a 0.15% in the total supply of dollars out there. Also, yes, when the fed gets repaid the loan they often delete the money from their books (no actual bills were ever printed) so they're often just adjusting the money supply to hit inflation/deflation goals.

Of course, that is a central bank adjusting the money supply while fake Boris is some how trying to conflate that with fractual reserve banking which is a totally different thing. Fractional reserve banking is a long standing practice which allows certain licensed banks to make loans totaling more than their deposits by issuing promissory notes for the difference. This expands access to credit, increases economic growth rates, and effectively increases the money supply. If you got rid of it then you'd have a big contraction of the money supply, a credit crunch, and a decrease in the marginal utility of capital which would cause a new great depression. Hell, it wouldn't even result in lower inflation, as the Paultards promise, because to fight the depression central banks would have to do huge new rounds of quantitative easing and keep the currency in circulation instead of retiring it (as is normal) just to counter the decrease in the money supply. In short, it would only do bad things and wouldn't do any of the good things the Paultards promise it would.

It is a "solution" to something which isn't even a problem which would cause massive economic harm but it sounds like a simple magic cure to the ignorant and simple minded (folks like fake boris) so, of course, they believe all the promises and don't understand why the nonsense they parrot is a load of ****.

[Dinner]

You do realize you're the first person to mention a gold standard in this thread, right?

He is parroting the Paultards so I am sure he will eventually parrot the rest of his nonsense including a gold standard. In reality it is economically a very good thing to have currencies adjust based on supply and demand as it eases changes to the market, punishes countries with bad picies, and rewards countries with good policies. Plus it helps balance trade and capital flows instead of everyone's currencies all being locked in and going up and down due to the price of the same precious metal.

[Dinner]

It has been funny watching fake boris swing from his usual communist claptrap to the right wing woo of the tin foil hat set though. I mean spewing John Birch Society nonsense is about as far from communism as you can get.

[Dinner]

http://rationalwiki.org/wiki/Fractional-reserve_banking

That is worth posting here.

[pchang]

Fake Boris is into whatever he thinks will "stick it to the man." Now he just needs to figure out who exactly is "the man", what will stick, and then how to stick.

[N35t0r]

A year or so back KrazyKitty crunched the numbers an the inflation of the money supply due to quantities easing was less that 0.15%. Also, yes, when the fed gets repaid the loan they often delete the money from their books (no actual bills were ever printed) so they're often just adjusting the money supply to hit inflation/deflation goals.

Of course, that is a central bank adjusting the money supply while fake Boris is some how trying to conflate that with factual reserve banking which is a totally different thing. Fractional reserve banking is a long standing practice which allows certain licensed banks to make loans totally more than their deposits by issuing promissory notes for the difference. This expands access to credit, increases economic growth rates, and effectively increases the money supply. If you got rid of it then you'd have a big contraction of the money supply, a credit crunch, and a decrease in the marginal utility of capital which would cause a new great depression. Hell, it wouldn't even result in lower inflation, as the Paultards promise, because to fight the depression central banks would have to do huge new rounds of quantitative easing and keep the currency in circulation instead of retiring it (as is normal) just to counter the decrease in the money supply. In short, it would only do bad things and wouldn't do any good of the good things the Paultards promise it would.

It is a "solution" to something which isn't even a problem which would cause massive economic harm but it sounds like a simple magic cure to the ignorant and simple minded (folks lime fake boris) so, of course, they believe all the promises and don'5 understand why the nonsense they parrot is a load of ****.

blahbla, but you qoted me, not him. Thus my incredulity.

[Fake Boris]

It's funny how Oerdin makes claims which have all been addressed in the OP.

He makes as much sense speaking of monetary policies as he does with Arabs and Mexicans.

What should I do now? Post the names of Nobel-prize winners who support full reserve banking, or collect more insults?

[Elok]

Well, you could look up "appeal to authority fallacy," or whatever it's called. Isaac ****ing Newton loved alchemy; why are you wasting your time here instead of refining the Elixir?

[Lorizael]

I was going to go with Watson's outrageous racism, but that works, too.

[Elok]

I couldn't remember if that was Watson or Crick, or if they even won the Nobel at all. See also Jack Horner's nonsensical insistence, in spite of all logic, that T. rex was an obligate scavenger.

[regexcellent]

OB proposing full reserve banking is really breathtaking, it is true that the extreme loony ends of the political spectrum loop around and form a circle.