“•That is the end of the fractional reserve banking system and of fiat money.”
So, explain to us why this is so bad. The fractional reserve banking system is the root of all evil in today’s economies. Fiat Money is not worth the paper on which it is printed.
Because the transition will likely be very exciting.
Are you saying that if I deposit money in a savings account, the bank should just put that money in the vault, rather than lending any of it out?
Close but more precisely: "The Misuse of fractional reserve banking system is the root of all evil in today’s economies."
Such is the basis of Banks loaning money, the problem is the FED uses it to devalue the Dollar rather than adjusting it to reflect the actual Growth or Contraction of the GDP.
Its like prescription drugs. Used right it makes things much better. Abuse it and it can be devastating. The FED/Banking regulators misuse Fractional Reserve Banking daily!