garyj on Nostr: You will mnever stop credit notes circulating as money. They arise spontaneously. Eg. ...
You will mnever stop credit notes circulating as money. They arise spontaneously. Eg. A manufacturer, who may only receive payment once the item has been completely manufactured and delivered, may raise credit notes to pay for labour and parts. These notes will circulate as money, until they are extinguished by the final payment. These are essentially Real Bills and there should be a distinct finite life of these bills. However, its inevitable you will get slippage and unbacked credit notes circulating. A free market should take care of this. Banks and creditors face runs and bankruptcy if they practice this fractional reserve banking. Currently the taxpayers underwrite these banks and so they dont have any reason to be prudent.
The real problem. Is not fractional reserve banking in a free market, the real problem is usury, charging any interest on debt. Compounding debt eventually eats up the entire productive economy
Published at
2024-12-31 06:26:51Event JSON
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"content": "You will mnever stop credit notes circulating as money. They arise spontaneously. Eg. A manufacturer, who may only receive payment once the item has been completely manufactured and delivered, may raise credit notes to pay for labour and parts. These notes will circulate as money, until they are extinguished by the final payment. These are essentially Real Bills and there should be a distinct finite life of these bills. However, its inevitable you will get slippage and unbacked credit notes circulating. A free market should take care of this. Banks and creditors face runs and bankruptcy if they practice this fractional reserve banking. Currently the taxpayers underwrite these banks and so they dont have any reason to be prudent.\n\nThe real problem. Is not fractional reserve banking in a free market, the real problem is usury, charging any interest on debt. Compounding debt eventually eats up the entire productive economy",
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