The (usually) transparent process of inter-bank lending works so well that most of the time we don’t even think about it. This process has largely weaned the public away from physical paper money. Note that most money (about 90%) now exists only as entries on bank ledgers, backed by loans (debt). Al…

Austrian’s insist on a market emerged monetary unit. We only speculate as to what that may be. Paper money would have a hard time competing as unit of exchange on the free market due to the fact that it is so easily reproducable. A commodity based unit of exchange will have some form of real value…

This is not the Austrian position. What is physical paper cash? How does it enter the market? How is it produced, and who purchases it? The only way fiat money can come into the market, is by fiat. Via the state, typically as a note redeemable for tax payment. It is wholly an artificial money th…

Fine, cite specific examples then. An appeal to “all of history” isn’t really an argument. Sure. Americans left King George the 3rd, who was taxing them 2 or 3 %, and decided to tax themselves 35~45%. All governments exist to tax. There is no easier target than a nationalistic and socialistic ele…

Austrian’s insist on a market emerged monetary unit. We only speculate as to what that may be. Paper money would have a hard time competing as unit of exchange on the free market due to the fact that it is so easily reproducable. A commodity based unit of exchange will have some form of real value…

Yes I agree. Calling money as dept is very crude and not correct. Your distinction is correct when fiat money’s value is imposed via force of law. I’m talking about fiat however on a free market., in the absence of force. It holds no real value. It’s value is guaranteed by the person who issued it …

Alright, I accept that answer. The market (public) can decide which type of money it wants to use (commodity or fiat).

Fiat money is only money through government decree. Even if banks were to practice 100% reserve banking this would only serve to eliminate the multiplier effect. How would it prevent debasement of currency.

While I don’t insist on commodity backed money, I believe it is what the majority would choose in an unrestrained open market. For the digital/electronic equivalent, several specie backed models already exist, e.g. http://www.e-gold.com/ , http://www.goldmoney.com/ , & http://www.pecunix.com/ With …

Mansoor, if I understand correctly, you state that paper money in the pocket, plus paper money deposited into a bank, segregated and stored in a vault (or transposed to electronic impulses on a server) and not loaned out represents “sound money” (my word, not yours). Distinct from this, are demand…

A Case For Central Banking - Safe Storage of Electronic Money -- 100% Reserve Digital Cash

Miscellaneous Newbies

Mansoor114 December 21, 2009, 6:47pm 82

I have created a new forum topic for the national defense discussion:

https://forum.freecapitalists.org/t/anarcho-capitalism-and-the-need-to-defend-freedom-and-liberty-via-national-defense-force/9754

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Who distorts the money supply more, commercial banks or central banks? Economics Questions	28	5908	May 27, 2011
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A Case For Central Banking - Safe Storage of Electronic Money -- 100% Reserve Digital Cash

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