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But you are ok with the fractional reserve banking system that has now reached the point there are sometimes literally no legally required reserves? If you beh

But you are ok with the fractional reserve banking system that has now reached the point there are sometimes literally no legally required reserves? If you behave anywhere near as absurdly as the traditional financial system then everyone calls you a scam.

arcticbull 5y ago
Why wouldn't I be? Fractional reserve lending is one of the ways in which the money supply is actively managed. Adjusting the reserve rates adjusts how much banks can loan, which adjusts the circulating supply. It's not in and of itself intrinsically harmful. Remember, that nobody has lost a single dollar to a bank failure since the backstop (the FDIC) was introduced in 1933 - following the Great Depression. Even in the Washington Mutual failure in 2008. The FDIC by the way is a funded through premiums paid into it by the member banks. They have an emergency credit facility with the Fed, of course. This is completely different than issuing company scrip and buying up assets with it to enrich yourself with it.
- ajkdhcb2 5y ago
  >This is completely different than issuing company scrip and buying up assets with it to enrich yourself with it. That is exactly what the fractional reserve banking system does. The dollars in people's accounts don't actually exist, but the bank uses the money that people deposit to buy assets that enrich the CEO and shareholders. >nobody has lost a single dollar to a bank failure since the backstop (the FDIC) was introduced in 1933 I find that difficult to believe. But people have been scammed indirectly in any case with bank bailouts that pass taxpayer money onto the banks, paying them for gambling with your money and not holding reserves. It's like saying Tether is safe backing only 10% of assets because the government can just bail them out if necessary.
  - pessimizer 5y ago
    > I find that difficult to believe. Just look it up.
    - ajkdhcb2 5y ago
      I don't care to because it wouldn't change my opinion and it's not important with regard to my point. Although I see now the commenter is just talking about USA for some reason I find it extremely interesting that my comment is getting a lot of negative votes

arcticbull 5y ago

Why wouldn't I be? Fractional reserve lending is one of the ways in which the money supply is actively managed. Adjusting the reserve rates adjusts how much banks can loan, which adjusts the circulating supply. It's not in and of itself intrinsically harmful. Remember, that nobody has lost a single dollar to a bank failure since the backstop (the FDIC) was introduced in 1933 - following the Great Depression. Even in the Washington Mutual failure in 2008. The FDIC by the way is a funded through premiums paid into it by the member banks. They have an emergency credit facility with the Fed, of course. This is completely different than issuing company scrip and buying up assets with it to enrich yourself with it.

ajkdhcb2 5y ago
>This is completely different than issuing company scrip and buying up assets with it to enrich yourself with it. That is exactly what the fractional reserve banking system does. The dollars in people's accounts don't actually exist, but the bank uses the money that people deposit to buy assets that enrich the CEO and shareholders. >nobody has lost a single dollar to a bank failure since the backstop (the FDIC) was introduced in 1933 I find that difficult to believe. But people have been scammed indirectly in any case with bank bailouts that pass taxpayer money onto the banks, paying them for gambling with your money and not holding reserves. It's like saying Tether is safe backing only 10% of assets because the government can just bail them out if necessary.
- pessimizer 5y ago
  > I find that difficult to believe. Just look it up.
  - ajkdhcb2 5y ago
    I don't care to because it wouldn't change my opinion and it's not important with regard to my point. Although I see now the commenter is just talking about USA for some reason I find it extremely interesting that my comment is getting a lot of negative votes