tag:blogger.com,1999:blog-648884752216444797.post1739105550869206957..comments2024-03-28T09:59:13.754-07:00Comments on bionic mosquito: Fractional Reserve Banking: Is it Fraud?bionic mosquitohttp://www.blogger.com/profile/12002548958078731031noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-648884752216444797.post-86743644982648091362015-05-03T08:51:32.217-07:002015-05-03T08:51:32.217-07:00It is still confusing. I'll have to study thi...It is still confusing. I'll have to study this Case more. Anonymoushttps://www.blogger.com/profile/16358962906674174167noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-2529536719571590552015-05-02T16:16:27.194-07:002015-05-02T16:16:27.194-07:00“…when I open a deposit account, I receive a check...“…when I open a deposit account, I receive a checkbook. Are you simplifying these actual details by saying that a "receipt" is given by the Bank for the deposit?”<br /><br />You receive a receipt for the deposit; you also have a checkbook.<br /><br />“Another reason I am asking about Case 3 is that I still believe that it creates an injustice because this banking system creates more claims to the gold deposit than are necessary.”<br /><br />What does “necessary” have to do with anything?<br /><br />“The depositor has his claims to that money. The bank lends part of that deposit so the bank's loan customer has his claims. The same one amount of gold but now with multiple claims against it.”<br /><br />The nature of the claims is different. If you read what I wrote in case 3, this should be apparent. <br />bionic mosquitohttps://www.blogger.com/profile/12002548958078731031noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-34144069252907747572015-05-02T15:44:05.804-07:002015-05-02T15:44:05.804-07:00You described Case 3 as basically our current bank...You described Case 3 as basically our current banking system. I have a question though about the receipt in Case 3. What is this receipt? <br /><br />I am asking because when I open a deposit account, I receive a checkbook. Are you simplifying these actual details by saying that a "receipt" is given by the Bank for the deposit? <br /><br />Another reason I am asking about Case 3 is that I still believe that it creates an injustice because this banking system creates more claims to the gold deposit than are necessary. The depositor has his claims to that money. The bank lends part of that deposit so the bank's loan customer has his claims. The same one amount of gold but now with multiple claims against it. <br /><br />Anonymoushttps://www.blogger.com/profile/16358962906674174167noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-64752628575013930132014-05-19T07:23:06.198-07:002014-05-19T07:23:06.198-07:00I am not sure what you mean precisely by your ques...I am not sure what you mean precisely by your question, so forgive me if I am not answering it directly...<br /><br />Absent backing by the state, bank busts would occur, but without the system-wide risks brought on due to the current monopoly system.<br /><br />Both booms and busts are much larger under a monopoly cartel than would be true under free-banking, it seems reasonable to surmise. bionic mosquitohttps://www.blogger.com/profile/12002548958078731031noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-73110230458933790432014-05-19T05:49:11.439-07:002014-05-19T05:49:11.439-07:00If there were no Fed, then market forces would mod...If there were no Fed, then market forces would moderate the excess expansion of credit created by deposit banking. Given that loans are created first and deposits are created out of thin air, is there any difference or does it only insure a greater bust?ohioralphhttps://www.blogger.com/profile/11334631463049105063noreply@blogger.com