fractional reserve banking is actually good, and loaning money into existence is good too, and every time you do a friend a favor and say "pay me back later" you have created currency and that is excellent https://twitter.com/NinjaMa31969964/status/1188917420049735681 …
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4/ interest is an exchange of disimilar goods - trading apples for oranges. The apples are "dollars in year X", the oranges are "dollars in year Y". It would be quite odd if apples and oranges exchanged at exactly a 1:1 ratio; same with dollars in 2019 and 2025.
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5/ Goldbugs don't understand that "if people are willing to trade it then it is currency". YEAH BUT MARLICK, IT'S PAPER, NOT ACTUALLY REAL GOLD, SO YOU SEE- sigh so you've made up a theory that, like Marxism, is disproven by literally the entire world ok, great, you win
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6/ Fractional reserve banking antagonists get upset in exactly the way that "the constitution says that blacks are worth 3/5 of whites" people get upset - they exactly misunderstand what's going on. In the Const, it was an attempt to LIMIT slave states, not empower them.
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7/ Fractional reserve banking is likewise misunderstood - by requiring assets on hand, it is a huge LIMIT on loan generation. If I fix your flat tire and you give me an IOU for $100 and I trade that IOU to your neighbor for an old swing set, we've "created currency".
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8/ Why, exactly, is it bad that the currency "is debt"? I did some work up front - I fixed a tire. That is a productive good thing. It increased the amount of wealth in the universe. Now we're using that as a basis to move a piece of paper around, which creates liquidity.
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9/ what fractional reserve banking does is set LIMITS on how much of this natural behavior we can do.
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10/ a man of intellect and sophistication --> https://twitter.com/stephengracin/status/1188920316099284992 …
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