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Gold currency was only ever a "promise" to pay. Banks could invent money out of thin air just as easily with gold-backed currency as with pure fiat currency, an
by mpyne 13y ago
Gold currency was only ever a "promise" to pay. Banks could invent money out of thin air just as easily with gold-backed currency as with pure fiat currency, and banks did just that since the founding of the U.S.
- redblacktree 13y agoYes, it's really the relative merits of fractional-reserve, full-reserve, and other kinds of banking that we should be talking about.