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Couldn't the same be said about the US dollar? In fact there's no limit on that one. With the fractional reserve banking in place as todays standard the Federal
by tobiaswk 7y ago
Couldn't the same be said about the US dollar? In fact there's no limit on that one. With the fractional reserve banking in place as todays standard the Federal Reserve just print more notes when needed to bail the banks. The whole system is based on trust. Trust does not scale well.
- _ph_ 7y agoIt is based on trust but also on the gross domestic product. If you want an iPhone (Tesla, corn, beef), you have to pay for it in dollars eventually.
- navigatesol 7y ago>With the fractional reserve banking in place as todays standard the Federal Reserve just print more notes when needed to bail the banks. The Federal Reserve doens't simply print notes and drive them over to the banks. There's an asset exchange that takes place.