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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: FreedomForAll who wrote (108805)	6/20/2010 2:53:30 PM
From: clochard	Respond to of 110194

In the olden days, banks created their own currency. Why not use company stock as currency? Companies are much better scrutinized than countries. In fact, fiat currency valuations could be deduced by via company stock priced in that currency.

To: FreedomForAll who wrote (108805)	6/20/2010 10:09:12 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 110194

What's wrong with lending at a "fair" rate of interest, is simply that the money doesn't exist to pay back the loan and the interest. I think you're getting the issues confused. I'm not discussing a fractional reserve system here.. I'm merely discussing debt based finance where I deposit money in a bank and the bank loans it out at a higher rate of interest than they pay me. Presumably the borrower can obtain a ROI that facilitates the repayment of the loan, as well as a profit (which is either deposited and lent to someone else, or re-invested in the business so another loan is not necessary). And this discussion began with the argument of debt based finance versus hard currency backed by precious metals. My point is that even if you deposit gold, or a gold certificate with a bank, it is STILL a loan to the bank that enables them to RE-LEND your money out at a higher interest rate. The heartburn you clearly have, and I can understand it, is the use of fractional reserve financing, where 9 dollars in loans can be offered for every dollar in deposits the bank possesses. But again.. they did the same damn thing when gold was backing our currency. Hawk