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> a debt market where private enterprise take on loan risk for commission or interest of some kind Surely this is what banks do right now. > the power to crea
by rr808 5y ago
> a debt market where private enterprise take on loan risk for commission or interest of some kind
Surely this is what banks do right now.
> the power to create fractional-reserve money is not a requirement for that.
If you take a loan from a CB say, then deposit it somewhere, then that money is loaned out again, surely that is fractional banking?
If you really disallow someone who takes a loan from being lent out again. How do you increase the money supply? Say population grows 5% and economic growth means 10% higher GDP - how do you increase money supply to match?
- jacknews 5y agoPrivate lenders would simply guarantee the loan, which would be issue by the CB, creating new money.
- warkdarrior 5y ago> Private lenders would simply guarantee the loan, which would be issue by the CB, creating new money. That's just fractional reserve banking but with extra steps. Since the private lender is guaranteeing the loan, they have to have an asset for that guarantee.