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To: Toddsterpatriot
Borrowing and lending (or lending your own capital) isn't evil.

From previous discussions, I know that you know how fractional reserve lending works - i.e. that the banking system creates money out of thin air and then lends it out to "earn" interest. By creating credit and then charging interest on it, they are extracting wealth from society in the exact same way that a counterfeiter would. The injected credit also has the side effect of fooling entrepreneurs into thinking there are more savings available than there really are. This generates malinvestment - i.e. boom and bust.

If you don't want a bank to have your money, don't deposit it there

A modern day example of the bank of amsterdam (100% reserve) would be goldmoney.com. You can hold $US, CAD, CHF, Euros, gold and silver there. There is no fractional reserve lending. That is where
380 posted on 06/26/2008 4:11:59 PM PDT by dollarbull
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To: dollarbull; Fan of Fiat
Borrowing and lending (or lending your own capital) isn't evil.

Excellent!

From previous discussions, I know that you know how fractional reserve lending works - i.e. that the banking system creates money out of thin air and then lends it out to "earn" interest.

And each individual bank lends out less than their deposits, so who is leaching and how?

By creating credit and then charging interest on it, they are extracting wealth from society in the exact same way that a counterfeiter would.

A bank takes in deposits of $1,000,000 and pays interest. They must hold some as a reserve and can lend out the rest. You'll have to show me how that is like counterfeiting.

You can hold $US, CAD, CHF, Euros, gold and silver there. There is no fractional reserve lending.

Wow, there is a place where I can deposit my money and earn no interest? How much do they charge?

381 posted on 06/26/2008 4:19:20 PM PDT by Toddsterpatriot (Why are doom and gloomers, union members and liberals so bad at math?)
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