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To: Edward.Fish
"the total amount of the services the debt pays off is something like $600 there was only ever the $100 note in the story."

LOL! Well, I was talking about the real world.

Of course the entire money supply is not currency. However, isn't the reason some dollars can be used more than once is because of the fractional reserve banking system that would be abolished with a strict gold standard?

39 posted on 06/18/2017 9:16:43 AM PDT by Da Bilge Troll (Defeatism is not a winning strategy!)
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To: Da Bilge Troll
> However, isn't the reason some dollars can be used more than once is because of the fractional reserve banking system that would be abolished with a strict gold standard?

No, actually.
I mean take a gold coin: you could use it to pay for something and, later, the person you gave it to could buy something from you. -- IOW, usage is non-destructive… as opposed to, say, whiskey.

Or are you talking about the sort of "double booking" that fractional banking does?
Even there you could do it [fractional reserve] with gold coinage -- the bank would just lend out coinage from the accounts of the depositors in the full loan amount and be paid back that amount plus interest.

So despite your LOL! Well, I was talking about the real world. I'm failing to see any real objection.

40 posted on 06/18/2017 11:27:40 AM PDT by Edward.Fish
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