Why is fractional reserve banking guaranteed by the taxpayer? Why is taxpayer money being used to guarantee bank deposits? Why not let banks fail?
Monday 31 October 2011
An intelligent government would not provide deposit insurance
The existence of deposit insurance is evidence of the ignorance of government.
The government is ignorant of economics... otherwise fractional reserve banking would be illegal
The existence of fractional reserve banking proves that the government is ignorant of economics.
Fractional reserve banking is like alchemy
Fractional reserve banking is nothing more than legalised counterfeiting.
Sunday 30 October 2011
If banks cannot print money they are not part of the state
If banks can’t fail they can print money.
Inflation is the only problem with banking
The only problem with banking is inflation. Or it is not inflationary and we can worry about the banking system later...
Either the banking system has no problem within it or there is a problem of inflation. These are the only two options.
Either the banking system is inflationary or it has no problem.
Deposit insurance is counterfeiting!
Change the banking system! Reform the banking system now! Or else! Why not reform the banking system so that banks can’t cause inflation?
Full reserve banking works for me. Is fine.
The banks can’t fail because they are the government
The banks are the government. There is no deposit insurance.
Saturday 29 October 2011
My claim is nothing more than: The bank guarantee is trustworthy
Unfortunately banks print money in the present circumstances. Guaranteed bank deposits are a cash equivalent... a proxy for cash.
The government is not magic it does not create economic growth. Inflation comes from printing money.
Friday 28 October 2011
Thursday 27 October 2011
Wednesday 26 October 2011
If there are laws against counterfeiting then there should be no deposit insurance
If laws against counterfeiting exist then fiat currencies maintain value and deposit insurance is inflationary. Which is inconsistent because if banks can print money then everyone should be able to. And if everyone can print money then it will have no value.
Fiat currencies need (at least) some people not to be able to print them. Those people should include the banks. If we are prevented from printing money then so too should banks be prevented. If there is a social contract... why not prevent banks from printing money?
It’s fine if banks can fail
Socialism causes fractional reserve banking. The problems with the banking system are caused by socialism. There is no problem but socialism. Socialism is the only problem.
Banks aren’t allowed to fail if they have deposit insurance. We should have no more socialist bailouts...
Tuesday 25 October 2011
Banks are the government if they have deposit insurance
To criticise the banks for being the government (a positive truth) is less effective than to criticise the government for being banks.
If a company is private we assume it can fail... and therefore that it is wanted. Then, it is not a contradiction that they do something wrong unless they have performed a crime. Can we phone the police if banks have inflated the currency? They are within the law.
If the government has done something wrong it is understood that there is no law-enforcement agency to deal with it... the questions must be answered as they stand. If something that is legal is wrong then we have a legitimate complaint. To say that banks are government is not a crime as there are other public bodies. (The claim that) governments print money is not so easily dismissed... as with illegal invasions of foreign countries.
Legality is not a defence for the government.
Definition: Counterfeiting is when banks have insufficient reserves
Fractional reserve banking is nothing more than counterfeiting. Not that there’s anything wrong with that...
All banking is full reserve banking
Fractional reserve banking is invalid.
If there are not enough reserves for deposits to be paid out on demand the bank is insolvent... it is not performing some new style of banking.
Fractional reserve banking is bad because it causes inflation
The only problem with fractional reserve banking is the inflation.
Only the government should be allowed to print money
If banks can’t print money why not give deposit insurance to everyone? Fractional reserve banking is a terrible way to get new money into the system.
If a firm cannot fail then its credit is money. Bank credit is money because they (banks) cannot fail.
If banks could fail their credit would not be money.
Monday 24 October 2011
Deposit insurance should not be provided by the state
We should be able to provide our own deposit insurance.
There is no reason the free market cannot be a provider of deposit insurance.
The government should default on the banking system
There is no reason not to take away the promised deposit insurance.
The banking sector is insolvent otherwise there would be no requirement for deposit insurance
Without the government the banks are insolvent. The government could easily pull the plug on the banks.
Banks are bondholders.
Sunday 23 October 2011
Saturday 22 October 2011
No one should be forced to guarantee bank deposits
Banks should be allowed to fail. Banks should not be protected from insolvency by the state.
Banks can’t fail if they can print money. Being able to print money means banks can’t fail.
Banks are part of the state if they can’t fail.
We should stop supporting the banks.
Friday 21 October 2011
People are blind to the nature of banking
Trying to get people to understand fractional reserve banking is like the opposite of the Emperor’s new clothes. We are trying to get people to see something which is present... not an absence.
Thursday 20 October 2011
Without a state there cannot be fractional reserve banking
Banks exploit deposit insurance by making loans. Banks with deposit insurance shouldn’t make loans.
Wednesday 19 October 2011
If a bank has deposit insurance it should not be permitted to make loans
Deposit insurance is theft for the benefit of the banks. Deposit insurance causes inflation.
There is a problem with not letting banks fail. Deposit insurance is not without consequences. Fractional reserve banking is a consequence of socialism.
If banks have deposit insurance they shouldn’t be allowed to make loans
This would be a separation of lending and deposit insurance. No one should be allowed to make loans if they have deposit insurance.
If a bank has deposit insurance it should not be permitted to make loans.
If banks can’t fail they shouldn’t be allowed to make loans
Not allowing banks to fail doesn’t by necessity mean they can print money... deposit insurance could be conditional on no bank lending.
If they have deposit insurance they shouldn’t be allowed to lend.
Tuesday 18 October 2011
Fractional reserve banking steals wealth from the productive economy
Fractional reserve banking exploits our use of fiat money.
Fractional reserve banking is insufficient reserve banking
It should be illegal for banks to make loans if they have deposit insurance. As usual the problem (of banking) is with the state.
Fractional reserve banking is coercive banking. Prices are high because banks can’t fail.
Banks need to be able to fail (in a fiat economy) otherwise inflation results.
Monday 17 October 2011
Saturday 15 October 2011
Friday 14 October 2011
Thursday 13 October 2011
Fractional reserve banking is inherently violent
Fractional reserve banking relies upon deposit insurance which is provided by the state.
Fractional reserve banking is not possible without violence.
The banks are not worse than the state
What’s wrong with printing money?
Unfortunately for my position banks do not violate the non-aggression principle.
Wednesday 12 October 2011
To have deposit insurance and make loans is counterfeiting
If counterfeiting is illegal why not this form of fractional banking?
Why not give deposit insurance to everyone? Either everyone should have it or no one should have it.
If I can fail then why not the banks? A lack of sufficient reserves is not a reason for them to be protected.
Fractional reserve banking demonstrates the worthlessness of fiat currencies
Most currencies are fractional reserve currencies... not full reserve currencies.
The banks are subsidised by the government. Banks are subsidised because they are a vital part of the infrastructure.
Fractional reserve banking is not threatened by Democracy
The existence of fractional reserve banking demonstrates that people don’t care about their country.
If people cared about their country there would be no fractional reserve banking.
No legitimate party wants to keep fractional reserve banking
A legitimate political party will be an advocate of sound money and banking reform.
Insolvent banking contradicts the social contract...
Insolvent banking contradicts the social contract because it is directly and unambiguously harmful to the people.
The banks own the currency... it is not natural like land
Rhetoric cannot change banking. It is consistent and there are no contradictions.
Tuesday 11 October 2011
The government keeps giving money to the banks
It should be illegal for the government to guarantee bank deposits. Deposit insurance should be illegal.
Fractional reserve banking by the government will never be illegal... unless it is unpopular
It is not possible to make a law against the government otherwise fractional reserve banking could (might) be illegal.
Fractional reserve banking by the government will never be illegal... unless it is democratically impossible.
They can’t stop reality.
Monday 10 October 2011
The government do not mind... they are unconcerned... that banks print money
There are no votes in monetary reform.
Reminder: People trust the government... to secure their ‘bank’ deposits
They don’t realise (or aren’t concerned that) banks and government are one and the same.
Sunday 9 October 2011
Deposit insurance is theft
Why not give deposit insurance to everyone? Everyone should have deposit insurance.
Saturday 8 October 2011
Fractional reserve banking is not sustainable
A banking collapse is inevitable.
Deposit insurance destroys savings only if fiat currencies are valuable.
The government doesn’t think bank credit is money
The government doesn’t value fiat currencies. It can’t understand why people keep exchanging their assets and labour for paper.
Friday 7 October 2011
Proportional Representation is direct democracy
Proportional Representation is direct democracy... the opposite of representative democracy
Proportional Representation is like perpetual referendums
The government doesn’t like proportional representation for the same reason that it dislikes referendums. It doesn’t like the people having a say.
Thursday 6 October 2011
Money is not scarce if banks can print it
The presence of deposit insurance contradicts the required scarcity of money.
Wednesday 5 October 2011
Tuesday 4 October 2011
Fractional reserve banking is theft by inflation...
Fractional reserve banking is theft by inflation participated in by the banks, the government and the borrower.
Monday 3 October 2011
Banks can print money if bank runs are not possible
Bank runs are perhaps regrettable, but they are necessary to prevent banks from being able to print money.
Saturday 1 October 2011
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