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If I credit a bank money and it defaults on it, I don’t care about the reasons, I just said that US banks also took away money in the last 100 years, just like
by xiphias2 6y ago
If I credit a bank money and it defaults on it, I don’t care about the reasons, I just said that US banks also took away money in the last 100 years, just like in every other country in the world. I don’t trust them with my life savings. You can if you want, that’s called freedom.
- arcticbull 6y agoYou've confused two separate concepts. One is a bank defaulting on its obligations to provide you a certain number of units of currency regardless of their market value. This has not happened since the FDIC was created in the wake of the Great Depression. Another is a sovereign default where the country decides not to honour its obligations to those holding units of its currency or its debts. This has happened ~6 times in the history of the United States, and I do include the cancellation of the gold withdrawal rights as a sovereign default. This has nothing to do with the FDIC or your bank. I can't stress this enough, neither of these things matter to you if you do what you're supposed to with money, which is not keep your life savings in a mattress or a savings account, but use it as a temporary store of value, medium of exchange and unit of account and buy things with it. Gold, real estate, magic beans, I don't care. This is practically ECON-101. On the subject of freedom, backing all currency with gold eliminates my right to choose what I back my personal economy with. A gold backed currency has strictly less freedom than a fiat currency. I can today choose to back my personal economy with gold, silver, platinum, magic beans (crypto) or Apple stock by leveraging a brokerage account and a credit card. If you believe in freedom, it's actually what you want.