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How would an honest banking system work


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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

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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.

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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

 

 

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.

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