Wednesday, 4 January 2012

Credit is money if it is guaranteed by the state

Deposit insurance is nothing more than a subsidy for the banks.

There is nothing wrong with a deposit insurance limit

The only problem with the banking sector (now that the original error of deposit insurance has been committed) is the lack of a deposit insurance limit...

A deposit insurance limit would apply to the bank (not the customers) and it would limit the extent of the deposit guarantee for each bank and the banking sector as a whole.

Tuesday, 3 January 2012

Sunday, 1 January 2012

First past the post is for people who think the main two parties are libertarian

People who reject proportional representation either hate libertarians (are socialist) or consider the dominant two fptp parties to be libertarian. Libertarians who like fptp think the main two parties are libertarian.

Reform of the banking system would be a good idea

Constitutions are redundant but it would be a good idea to make bank inflation of the money supply illegal. Democracy is our only recourse to remove the right of banks to cause inflation.

Bank credit is money because people trust the government to print cash

Banks can print money if people trust the government guarantee. The general public do not have a preference for cash over government credit. People don’t mind if money isn’t cash.