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Would a system with full reserve banking really have no loans? Aren’t most businesses nowadays funded by stock sales and investments instead loans either way?

• irjustin 4y ago
  Yes full reserve banking is only for people with excess capital. And the number of those is small in comparison. Must people don't want it can't have their money tied up the full length of the loanWhich then shrinks who actually lends. This creates wealth inequality by only allowing allowing the biggest guys too lend and access capital. Small businesses can't get off the ground because they need a loan to buy a machine that helps automation is a classic example.
  • david927 4y ago
    The brakes have to match the accelerator on the car, or you're going to be in for a hard time -- even if that means the car will go slower. You have to figure it out differently. Things will go fine (really well, in fact) during expansion, but come contraction, all hell breaks loose. And what's coming isn't just an indictment of all of that. We're about to find out what happens when you go Full Monty off of commodity-based currency such as the US with the Nixon Shock in 1971. It's a multi-generational event, so most of us alive don't know. But we all will soon.
    • irjustin 4y ago
      > The brakes have to match the accelerator on the car, or you're going to be in for a hard time -- even if that means the car will go slower. You have to figure it out differently There's so many problems with this analogy you should just state what you're trying to go for.