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What happened when the amount of money was tied to gold? I do sometimes look at fractional reserve banking and see a giant ponzu scheme. I'm not sure ever incr
by andy_ppp 11y ago
What happened when the amount of money was tied to gold? I do sometimes look at fractional reserve banking and see a giant ponzu scheme. I'm not sure ever increasing levels of debt are sustainable, but then I'm not an economist...
- ArkyBeagle 11y agoFractional reserve banking began under the gold standard or before. "What happened" is the Great Depression in the interwar period. Some say various nations "cheated" on the gold standard - rigged conversion rates to hoard gold.