nixy Posted June 16, 2016 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
MrCapitalism Posted June 17, 2016 Posted June 17, 2016 https://mises.org/library/what-has-government-done-our-money/html/c/41
scottm Posted June 17, 2016 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.
Des Posted June 18, 2016 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.
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