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Banking

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Constittuionalist posted on Tue, Oct 26 2010 5:27 PM

I have been trying to think about weather free banking is better than full 100% reserve banking, but yet I can't seem to really think about which one is better. Both are based off a commodity system but there are differences as to how they operate. But my primary objection is this:

having certificates that are redeemable for gold or silver create the business cycle because the banks can then just print certificates and then run out of commodity reserves. Paper in all forms is fraud because it can be created at will. The other problem is that without a "lender of last resort", would the bank have some form of insurance (we will call it "depositor assurance") for its depositors in case the bank went insolvent?

What are the best books I can get on PDF about differences between full reserve and free banking? At least from the mises institute?

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http://mises.org/resources/2745/Money-Bank-Credit-and-Economic-Cycles 

? maybe

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

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J.R.M. replied on Tue, Oct 26 2010 5:35 PM

Paper in all forms is fraud because it can be created at will.

Well, paper itself is not fraud, it is when more paper is printed and multiple people are then given "claim" to the same property that it becomes fraud.  But anyway, I think Rothbard said that a free banking system would pretty much work itself out to a 100 percent reserve system.  I'll see what I can find on that...

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Constittuionalist,

I've written about this on another forum just the other day. Maybe this helps?:

http://forumserver.twoplustwo.com/showpost.php?p=22414639&postcount=8

and especially

http://forumserver.twoplustwo.com/showpost.php?p=22434004&postcount=10

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Our monopoly courts are in the back-pockets of the bankers upon whom contracts are not enforced. So, we are stuck in a one-sided economic system where banks can go bankrupt yet keep doing business like nothing ever happened.

Clayton -

http://voluntaryistreader.wordpress.com
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