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  • Re: What is the truth about Fractional Reserve Banking?

    I don't think that's how it works. A bank's assets have to be equal to its liabilities. Your $1000 is a liability. They could keep that cash on hand (100% reserve), and thus their assets would be $1000 cash on hand, and liabilities would be the $1000 demand deposit that you have. In fractional reserve, though, they don't keep your cash
    Posted to Economics Questions (Forum) by Greg on Fri, Nov 14 2008
  • Re: FRB & Life-insurance

    I don't see much of a difference. You put money in expecting to withdraw it. The withdrawl requirements for life insurance are a tad more restrictive...being that I have to die first...They do the same thing with the money...invest it..pay out other depositors...etc.
    Posted to Economics Questions (Forum) by Greg on Mon, Nov 10 2008
  • Re: Austrian/Rothbardian Treatment of British History...?

    Rothbard's Conceived in Liberty touches on it...in fairly broad brush strokes in the early chapters. There is a Literature section of this site with 90 some odd pages...plus audio books and the like in the Media section. Not to mention the Articles section. And it all is serviced by the search function. Who knows what you'll stumble on. Sorry
    Posted to History (Forum) by Greg on Fri, Oct 31 2008
  • Re: Commodity money, and large swings in commodity value

    [quote user="Harksaw"] According to Wikipedia, aluminum was once a precious metal more valuable than gold before the discovery of a new refinement process. [/quote] According to wikipedia, aluminum is also the most abundant metal in the earth's crust. It was just previously hard to get at. No such problem for gold, until the alchemists
    Posted to Economics Questions (Forum) by Greg on Tue, Oct 21 2008
  • Re: fractional reserve banking :: really a problem?

    This may be beating a dead horse at this point, but the way I think of it, the problem with fractional reserve is one of incompatible contractual obligations. The depositor has a contract that says he can get his money back at any time. The borrower has a contract that says that he can pay that same money back in monthly installments over a fixed period
    Posted to Economics Questions (Forum) by Greg on Wed, Oct 8 2008
  • Re: Minimum Wage

    [quote user="JonBostwick"] This is why the meme that "companies want low wages to increase their profits" is false. A general reduction in the cost of labor would have no impact on profits. [/quote] I can't even begin to see how this could be true. Why would an employer want low wages if not to increase their profits?
    Posted to Economics Questions (Forum) by Greg on Tue, Oct 7 2008
  • Re: Why can't we have House backed currencies.

    and...lets say that I'm tired of this currency and convert it back. In a gold standard, somebody gives me x ounces of gold. In a house standard, do I come crash in your living room for however long I like? Maybe I can tow off your shed?
    Posted to Economics Questions (Forum) by Greg on Fri, Oct 3 2008
  • Re: Why can't we have House backed currencies.

    another small adjustment. The interest rate is the discount in value of future money. The owner of the money can use that money to buy something now, or loan it to me, in hopes of buying something in the future after I pay him pack. Stuff now is more valuable than stuff in the future...by about 6% per year at prevailing markets...
    Posted to Economics Questions (Forum) by Greg on Fri, Oct 3 2008
  • Re: Freeriding+Game Theory=Disproves Adam Smith???

    [quote user="corpus delicti"] You are right on the mark, in the sense that this would be the critique of the professor arbitrarily setting such a goal. However, I'm sure he would just retort and say that he merely posited an if statement which may or may not be true, i.e.: If all the neighbors agreed to increase their property values,
    Posted to Economics Questions (Forum) by Greg on Fri, Oct 3 2008
  • Re: Pensions?

    [quote user="Trianglechoke7"] Are tons of people going to lose their pensions due to the current events? [/quote] Only if the company that is providing their pension goes under. That's a contract, not an investment.
    Posted to Economics Questions (Forum) by Greg on Wed, Oct 1 2008
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