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What are the consequences of ending FRB?

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Meistro Posted: Mon, Jan 21 2008 3:06 AM

What would happen if fractional reserve banking were ended? 

 

... just as the State has no money of its own, so it has no power of its own - Albert Jay Nock

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Meistro replied on Mon, Jan 21 2008 4:52 PM

 Fractional Reserve Banking != federal reserve.

 

... just as the State has no money of its own, so it has no power of its own - Albert Jay Nock

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Meistro:

What would happen if fractional reserve banking were ended? 

 

We'd go back to the good ole days.Wink 100% reserve banking.

Deposits or borrowing wouldn't effect the money supply.

Banks could only lend out what's in their vaults - only the timed accounts as well.

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ayrnieu replied on Fri, Jan 25 2008 2:39 PM
Much of the pyramid-building (pdf) would cease, but a persisting Federal Reserve system would, I think, keep the bank/account-holder relationship from changing.
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 It depends on the situation and the environment; also, how is the FRB liquidated?

The Origins of Capitalism

And for more periodic bloggings by moi,

Leftlibertarian.org

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