Comte de Sats Germain on Nostr: Heard "Poyais" mentioned, and found an awesome bit of economic history. Poyais is a ...
Heard "Poyais" mentioned, and found an awesome bit of economic history. Poyais is a fictional country and part of the grandest scam in history. It is blamed for the crash of 1825, which is supposedly the first crash in the repeating boom-bust cycle that we're still in.
After reading the wikipedia entry for it, I am even more convinced that the business of lending should be illegal. Not that lending should be illegal - but doing so as a business, meaning banks. They had hard money, but bank issued credit and paper, despite being built atop equity, allowed them to expand and contract the money supply.
Hard money isn't enough. Its a piece, but not the whole solution. Banks can't be allowed.
https://en.m.wikipedia.org/wiki/Panic_of_1825
After reading the wikipedia entry for it, I am even more convinced that the business of lending should be illegal. Not that lending should be illegal - but doing so as a business, meaning banks. They had hard money, but bank issued credit and paper, despite being built atop equity, allowed them to expand and contract the money supply.
Hard money isn't enough. Its a piece, but not the whole solution. Banks can't be allowed.
https://en.m.wikipedia.org/wiki/Panic_of_1825