Sep 2, 2014
John writes in the Money Bubble, "In a very real sense, it is fractional reserve banking and not money itself that is the root of so many of today’s evils. Whenever fractional reserves are permitted, the banking system – including the one that exists today throughout the world – comes to resemble a classic Ponzi scheme which can only function as long as most people don’t try to get at their money."
A Better
System
"Now, is this critique of the current monetary system just impotent
ideological whining over something that, like the weather, can’t be
changed? Or could fractional reserve banking and the resulting need
for economic central planning actually be replaced by something
better? Specifically, how could a banking system without fractional
reserve lending accommodate depositors’ demand that their money be
there when they want it andborrowers’ desire for 30-year
mortgages which would tie up those deposits for decades? And could
this market operate without the need for government oversight and
management?"