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But it's kind of like going back to using doubloons as the actual currency, as opposed to certificates. I don't think in practice you could get anywhere like th
by a8da6b0c91d 13y ago
But it's kind of like going back to using doubloons as the actual currency, as opposed to certificates. I don't think in practice you could get anywhere like the reserve ratios typical now.
- sliverstorm 13y agoBanks can't print money, so as far as the day-to-day operations of the bank is concerned, the only practical difference between bank notes and doubloons is notes are much easier to process & store!
- moron4hire 13y agoBanks can effectively print money. They can take out loans from the Fed at effectively 0% interest rates, then lend out ten times as much to people. And they can lend to other banks, who they themselves can then lend ten times as much. Banks can print money.