Hello,
(1) Did Rothbard support the gold standard over any other monetary system or did he support it as the best and most probable way to exit the current fiat money system?
(2) I understand why fractional reserve banking should be considered a crime since money is controlled by central banks. But, in a free-money system, wouldn't Rothbard say fractional reserve banking is not a crime but more a dummy business model that should not attract anybody?
Thanks for you answers
That is hardly storing. Deposits are lent out, so there are no storage fees, but interest.
so you arent familiar with the history of banking. ok then.
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the act of storing the gold in the bank is knows as making a deposit with the bank......
this is what i always thought.
and from what i have read the lending out of deposits while at the same time claiming they were there - and facilitating the transfers of gold/silver deposits through paper receipts that no longer correspned to deposted gold/silver was originally considered a fraud or breach??
somehow overtime laws were adjusted or manipulated to to say that if a bank can meet demand - (usually only accomplished by a central bank foisted on many to benefit a few.)
i wasnt around hundreds of years ago to confirm the so-called myths or lies about free banking and its effects.
.............full reserve banks would exchange warehouse receipts, for a fee. Obviously, people prefer fees over interest............
with a full reserve bank it seems that the time deposit would be like just loaning out your money (with out any corresponding bank credit created) to someone and hoping to get it back plus interest over a specified time. perhaps lower returns for TDs that allowed for pre-maturity withdrawl due to a bank having to dig into its own money assets to redeem. contract specs, iow.
i would think that the bank would get most of its money for safekeeping and from fees from facilitating transfers of receipts, dollars or 1to1 notes.
thats what i gather from the rothbard readings
....wouldn't Rothbard say fractional reserve banking is not a crime but more a dummy business model that should not attract anybody? ....
i dont know if the term dummy would be used or not by the rothbard. he might say the frbers are pathetic liars - unless he could benefit himself.
from what i have read various forms deposit dishhonesty were taking place before central banks - ie, lending specie-deposits out and creating bank notes corresponding to the specie while both circulated at the same time. if those who sought out frb banks were just shooting themselves in the foot because many prices began to outpace the acquisition of credt...that i am not sure.
if frb depositors benefited....i am not sure what the rothbard thought about that or wrote on it.
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perhaps the above will get you closer to what the rothbard really thought