Quote from: Lateralus on January 10, 2017, 10:31:51 PM

Quote from: sidhujag on January 10, 2017, 09:15:43 PM

Quote from: Lateralus on January 10, 2017, 08:29:19 PM

Quote from: STT on January 10, 2017, 08:29:22 AM

Quote from: Lateralus on January 08, 2017, 09:39:37 PM

I find it funny the people who think FRB is a scam also think inflation shouldn't exist.

Money is nothing other than the lifeblood of society, and just as a human body grows in size and requires a larger volume of blood, the economy requires an increase in money supply in order to operate effeciently (hence the term "liquidity").

100% reserve banking is socialism because it leaves no legitimate way to expand the money supply, and a fixed money supply rewards people who sit on their ass, it treats money like it was a corporate share in the economy that should increase in value as time goes on. This is also why cryptocurrencies which are modeled on fixed money supplies are doomed to fail over the long term (or at least fail in the sense that they will always be relegated to niche uses, rather than becoming primary or world-leading currencies)

Roach you're just another luddite running your mouth about a world you haven't even begun to understand.

If by sit on ass you mean invest wages and withheld value instead of spending and requiring goods immediately for their labour. The modern alternative is to reward and to gift money to politics which spends it as it wishes without restraint or in proportion to the benefit it brings. The inflation of the monetary base to subsidise a government is far closer to a taxing situation then just allowing those who have earnt value at a market agreed price to invest and gain interest for delaying importing goods or using up domestic supply, its proportional not unfair ?
Not spending when technology allows such a big advantage in utility does not seem too easy or iliquid a situation, it might be less rewarding

What do you think fractional reserve banking is? It's the process of investing depositors funds and putting them work rather than just having it sit there in a "vault". 100% reserve banking = dead money/dead capital doing nothing.

Fractional reserve banking is just LEVERAGE.

and leverage is what got us in this mess, claims may not respected (bank runs) they can go out of business and your shit out of luck since their reserves are depleted and insurance wont cover you over say $100k.. oh well should have known better than to trust a bank right?

If anything it taught us that yes we can live like kings until we realize one day that no we can't have our cake and eat it too... everything has a price sooner or later and generating wealth off of someone elses "future" work will hit hard until you realize it (as the person involved in the ponzi scheme). Yes it may not seem efficient currently, but once you have something closer to ideal money being the backbone of the economy you can then start to lay a solid foundation in place for tomorrows growth and prosperity

" leverage is what got us in this mess, claims may not respected (bank runs)".

There's no more reason to ban the practice of fractional reserve banking because it can go wrong any more than there is reason to ban ownership of guns because they can be used to murder innocent people. The problem is, like always, a LACK OF COMPETITION. So no, SOCIALISM with it's never ending amount of state borrowing is what got us into this mess. Government intervention in the housing market is what got us into this mess. Government monopolization of the banking industry is what got us into this mess.

In the U.S., J.P. Morgan and his colleagues tried to set up a private reserve system in 1913, unfortunately that got hijacked in 1914 by the progressives in Washington who turned their ingenious system into the grotesque monster known as the Federal Reserve today. It was Morgan who single handedly managed to contain the crisis of 1907, and that was the event that inspired bankers to create a reserve system in order to deal with bank runs should they happen. It was the FREE MARKET at work, and once again the fucking marxists got in the way in 1914, which is why we are where we are today.

Rather than questioning it, you're just trying to twist history and reality to fit your presupposed idea that there's something inherently wrong with fractional reserve banking, which is why, as iamnotback said, you are simply "conflating orthogonal issues".

Government intervention in interest rate manipulation is much bigger than manipulation of housing through allowance of mbs's and artificially low borrowing rates. The root of the problem lies in frb and the way it is structured. In either case manipulation doesnt bode well for any market and frb is just one of the bigger examples of manipulation. We thought that the government was needed to control our economy by being a driver and detecting what the right rates are because rhey have a high level view of our economy and every tax payers stats... that let us prosper a bit esp since we were stuck with only so much finite amounts of gold and hit a wall in terms of running deficet which would have been problem if a world war broke out at the time..

Like i said before i understand your stance.. and it does not play well with an asymptotically ideal form of money in which transfer utility is maximized in a game.. it was good enough to get us here today in this state but not good enough to continue to prosper at expense of future work. If someone doesnt know who the pig in the room is, its probably you.