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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Nixpix who wrote (81071)	10/9/2011 3:47:59 PM
From: Douglas M. Benedict	Respond to of 217550

Interesting overview but it's monetarist reform conclusion is wrong..(ie; government controls the money). Although the idea of a NON-leveraged, non fractional reserve banking system is sound...the idea that government should control the money supply is conducive to a communist regime...also unsound...(why would I trust them to do a better job? they blew it before the 1st bank, the 2nd bank and even the Fed) far better solution would be like that bank of North Dakota...sound lending for profit... if you do not use fractional lending, then you are going to be extra careful as to who you lend money to and you prevent liquidity crises by unsound practices... the concept of script vs backed currency requires faith in the lender (be it bank or government issued credit) If a money system required the deposit of excess assets into a central system and those assets are loaned out as money it would be like a co-op, where farmers deposit their excess produce..it doesn't have to be a gold-backed currency, but it sure has to have more backing than a government printed fiat..so that when a depositor lays claim to his excess savings, they are still available...all money panics are in effect, savers laying claim to their deposits which may have been loaned out in poor lending practices (be those deposits, excess bales of hay, chickens, gold, silver, oil, etc...) to poor credit risks or speculative ventures. that's my take on it and why I would rather the use on a non-counterparty risk form of savings vehicle such as gold, oil, silver, outright real-estate ownership, etc than the risky counter-party faith based bank savings... just one opinion... before all else trust in oneself...