An interesting perspective on money in the U.S. Romany Folk always carry gold, not trusting paper money, and sometimes I think they are right. But, on a grand scale, I think that Ron Paul is pretty much insane, or at the very least, not practical. Having banks hold all their money in reserve is difficult for a variety of reasons. Making the U.S. government stem inflation...that's another matter.
Sunday, February 18, 2007
How Money Works in the U.S.
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Having banks hold all their money in reserve is difficult for a variety of reasons.
It's not difficult, it's impossible; If banks are holding all of their money, they have none to loan out, thus no source of income, no way to pay interest on savings balances, no incentive for people to deposit money, and no business model.
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