I must admit that I've never understood the clain that two individuals claim the same property under fractional-reserve banking. Will someone explain this to me? One is the debtor, right?
Maxliberty:Just take the contract you signed and replace the government guarantee with a private insurance policy. Is that contract ok?
well the contract is ok because in my case with the bank I use ,there is no mention of me making a loan, they merely hold my money and allow me to spend from the current, and they pay me interest on my savings account. as such i make a bailment to them of my money. this was never a point of dispute. I know what a loan agreement wou,d look like if they sent me one so i could borrow from them, and i certainly didnt send them one of those. so im not sure how it helps you make your point.
now how about you stipulate a contract for consideration ?
Where there is no property there is no justice; a proposition as certain as any demonstration in Euclid
Fools! not to see that what they madly desire would be a calamity to them as no hands but their own could bring
nirgrahamUK: Maxliberty:Just take the contract you signed and replace the government guarantee with a private insurance policy. Is that contract ok? well the contract is ok because in my case with the bank I use ,there is no mention of me making a loan, they merely hold my money and allow me to spend from the current, and they pay me interest on my savings account. as such i make a bailment to them of my money. this was never a point of dispute. I know what a loan agreement wou,d look like if they sent me one so i could borrow from them, and i certainly didnt send them one of those. so im not sure how it helps you make your point. now how about you stipulate a contract for consideration ?
You need to read your contract again. More denial of reality. I have stated this about ten times in various threads. Take the Jimmy Stewart scene out of "It's a Wonderful Life" when they have a bank run.....Lets start with that contract.
Maxliberty: Austrians wish to prohibit the ability to convert assets to meet redemptions thus making mixed commodity banks impossible. Perhaps you don't agree with the Austrian theory.... I apologize if I misunderstood you.
Austrians wish to prohibit the ability to convert assets to meet redemptions thus making mixed commodity banks impossible. Perhaps you don't agree with the Austrian theory.... I apologize if I misunderstood you.
Please quote some sources to verify this Austrian theory, as I've never seen any thing close to such an idea from Austrians. I've already asked you before, perhaps you are just plain lying though.
Maxliberty:.Lets start with that contract.
i wish you would. you never do. i asked you to and you havent yet. but im a patient man. feel free to take your time over it. any job worth doing is worth doing right...
Maxliberty:Austrians
Maxliberty:Are you now in favor of permiting conversion of assets to meet redemptions? Or are you just upset at the contradictions in your arguement?
Where does it say it is a bailment?
""If I deposit money into a bank, in a savings accout, that gains average interest, with the stipulation that I may remove my money at any time, have I agreed to make my money inaccessible?""
a communicated and understood amount of money would probobly be more accurate since the fed notes are fungible in nature.
if i understand the deposit scheme correctly (and if its true to begin with) the 10 percent reserve ratio for banks with (i dont even know is they use the term demand on accounts anymore) deposit accounts...i guess the bank is holding 10 percent of the account-balance in a physical amount of paper(dollar) and coin money ( in cash drawers and a vault i assume)...the remaining 90 percent of account-balance money is (hoped for repayment) dollar-credit of the loan made by the bank from the deposit. i dont know if there is a difference if it is a check or physical cash deposit
is this correct?
what does a bank have to do satisfy cash demands beyond the 10 percent (or wahtever hypothetical reserve ratio) if numerous depositors demand physical cash not held with a bank company?
ask a few other banks for physical cash and hope for the best?
go to a governement agency and ask for a insta-print of the amount of cash necessary to meet customer demand?
sell imported brass railings in the main branch on ebay for some quick cash to satisfy demand?
have talented tellers to desk dances charging cash admission for cash raising?
i am not sure. i guess if one knows that the bank cannot meet all cash demands its up to the individual whether to let the bank loan out (a lot of) their deposited cash in order to spend bank-cash-credit with a check or debi-carrd.
i have just called it an operational falsehood because what ones account balance (the amount of cash and credi-cash?) says in "$" terms is not what the bank actually has...unless the symbol "$" means a little bit of cash on hand but not all on demand.
i wish they would say that on deposit contracts.
clarificati0n appreciated
scineram:Where does it say it is a bailment?
sthomper: ask a few other banks for physical cash and hope for the best? go to a governement agency and ask for a insta-print of the amount of cash necessary to meet customer demand?
That is what happens.....
It sounds like the ocean, smells like fresh mountain air, and tastes like the union of peanut butter and chocolate. ~Liberty Student
Maxliberty:Austrians wish to prohibit the ability to convert assets to meet redemptions thus making mixed commodity banks impossible
Max, two points:
"You don't need a weatherman to know which way the wind blows"
Bob Dylan
What? No. How can you consider yourself and Austrian and be pro FRB? The creation of fiduciary media, and the suppression of the market rate of interest below the natural rate is what creates the boom-bust cycle. The only way to stop this cycle would be to stop FRB.
"If we wish to preserve a free society, it is essential that we recognize that the desirability of a particular object is not sufficient justification for the use of coercion."
It's pretty obvious that the author of this post isn't looking for an answer, but rather a fight.
Esuric: What? No. How can you consider yourself and Austrian and be pro FRB? The creation of fiduciary media, and the suppression of the market rate of interest below the natural rate is what creates the boom-bust cycle. The only way to stop this cycle would be to stop FRB.
Esuric:What? No. How can you consider yourself and Austrian and be pro FRB? The creation of fiduciary media, and the suppression of the market rate of interest below the natural rate is what creates the boom-bust cycle. The only way to stop this cycle would be to stop FRB.
FRB isn't quite the same without legal tender laws and central banks propping it up...