nixy Posted June 16, 2016 Share Posted June 16, 2016 Hi As per title really. Just been reading how 'countries' (Germany?) can lend to other 'countries' (Greek people?), £billions that were created at the stroke of a keyboard. https://www.theguardian.com/business/2015/jul/06/germany-1953-greece-2015-economic-marshall-plan-debt-relief So the term lending can have two totally separate meanings. 1. Lending something earned &/or tangible.... or a token of something earned &/or tangible. as opposed to 2. Lending something at the stroke of a keyboard...... ie no representation of anything earned &/or tangible. Does SM have a view on this fundamental? Cheers Link to comment Share on other sites More sharing options...
MrCapitalism Posted June 17, 2016 Share Posted June 17, 2016 https://mises.org/library/what-has-government-done-our-money/html/c/41 Link to comment Share on other sites More sharing options...
scottm Posted June 17, 2016 Share Posted June 17, 2016 Hi As per title really. Just been reading how 'countries' (Germany?) can lend to other 'countries' (Greek people?), £billions that were created at the stroke of a keyboard. https://www.theguardian.com/business/2015/jul/06/germany-1953-greece-2015-economic-marshall-plan-debt-relief So the term lending can have two totally separate meanings. 1. Lending something earned &/or tangible.... or a token of something earned &/or tangible. as opposed to 2. Lending something at the stroke of a keyboard...... ie no representation of anything earned &/or tangible. Does SM have a view on this fundamental? Cheers Bitcoin (CryptoCurrencies), Gold, etc... & credit would be peer to peer provided w/ ROI (return on investment %)- think Prosper, etc., less the fractional reserve that banking does today. That said, banks are not inherently broken, the Fiat (printed) currency is. Some banks in a free world would chose fractional reserve & some wouldn't. Link to comment Share on other sites More sharing options...
Des Posted June 18, 2016 Share Posted June 18, 2016 Hi As per title really. Just been reading how 'countries' (Germany?) can lend to other 'countries' (Greek people?), £billions that were created at the stroke of a keyboard. https://www.theguardian.com/business/2015/jul/06/germany-1953-greece-2015-economic-marshall-plan-debt-relief So the term lending can have two totally separate meanings. 1. Lending something earned &/or tangible.... or a token of something earned &/or tangible. as opposed to 2. Lending something at the stroke of a keyboard...... ie no representation of anything earned &/or tangible. Does SM have a view on this fundamental? Cheers https://mises.org/library/what-has-government-done-our-money/html/c/41 To highlight a conclusion within the above linked document: Fractional reserve banking (morally a fraud), will in any case be limited in a free society, by people who get suspicious and propose a run on any bank which seems vulnerable. If there is some fractional reserve banking, caution at the consequences of failure (without a state apparatus to combat failure), will limit the fraction of fake money pumped into the economy. Link to comment Share on other sites More sharing options...
Recommended Posts