a free market in banking would not fail any more than a free market in baking
a) competition in issuance of banknotes will suppress their usage, and be a pressure on banks to remain sound and avoid runs
b) criminal bankers who are guilty of implicit theft will face consumer sovereignty, which demands justice and which will wield the free market providers of justice to this end
The banksters are guilty of mutually consenting capitalists acts. The man with a plan…
…central plan.
Rothbard is not my PR guy.
Oh? He CORRECTLY stated it did he? Well I wasn’t expecting that. Touche good sir touche!
No we’re just trying to predict what will happen. Everyone could declare out all warre on everyone. Its just not very likely.
lol, thats not a central plan. i forgive you.
New question: Why is Rothbard such a statist? Why does he support coercion and banning voluntary capitalist transactions?
yes there is no justice. there can be no banning of fraud or murder, etc… I mean that’s all a pipe-dream anyways. Let’s just dance naked and howl at the moon.[:P]
he isn’t as has been explained to you. if you need to ask more refined questions vis what you have be been told,. feel free. However, repeating ad nauseum questions that have been responded to will be sure to leave you talking to yourself.
Yeah! Let’s call everything we don’t like fraud, that way we can justify our coercive proposals and ban mutually beneficial and voluntary transactions.
or as Daniel said:
So when a bank deceptively creates counterfeit bank receipts, and issues them to the public and tells them that they are backed by 100% gold although they are not, that is somehow “mutually beneficial cooperation”?
yes fraud is not-fraud when logic is thrown out the window
No, it doesn’t sound that way at all. But you can feel free to believe your delusion all you like.
Here’s something for you to consider, since I know you’ve never considered it: what do you think will happen to the confidence in the FRBs when the full-reserve banks decide not to exchange the notes on par or whatever the going rate is, but at a discount? And what do you think will happen when prices in the FRB notes creep higher than in the full reserve due to inflation?
What deception? I know how factional reserves work, and I keep my money at banks because they pay interest (though at an artificially depressed rate). Do any of you keep your money in a money warehouse and pay fees, or under your bed? And how do banks counterfeit money under a system of free banking? You do know that money substitutes aren’t money right? The notes belong to the bank, and people accept them because they pay interest and can be used for exchange, as opposed to carrying around heavy gold coins. So what exactly are you talking about? Is your point that some people don’t understand banking, and therefore its deceptive? Some people don’t know that cosmetics can cause cancer; let’s ban makeup! People who sell makeup are engaging in fraduelent activities, and must be banned by you anarchists!
Fraud is voluntary?
Buddy, open a book and read about banking. Free banking is sensitive to changes in money demand, and there are market forces which prevent banks from expanding the money supply above the equilibrium position (and depressing it below the equilibrium rate)–it’s called the market mechanism. 100% reserves necessarily push the market rate above the natural rate depressing business activities. But all of this may be too technical for you. You’re position is that its fraudulent and needs to be banned, though no one forces anyone to keep their savings at fractional reserve banks.
This is the anarcho capitalist position right? People who don’t believe in completely regulating the banking system are statists!
eh. that one. the one in which they said the note was backed by gold and it’s not. so where’s my gold?
pure nonsense on stilts
Yeah, care to explain why?
Here’s why you’re wrong. As I’ve already mentioned, the real capital which is required for capitalist productions does not have to be fully available at all times, in fact, only half needs to be available at any given time. That is, if the production process takes 6 years, only 3 years of savings is required. Furthermore, if the demand for cash holdings increases in the face of an inelastic money supply (entirely inelastic), actors will begin to increase supply (sell) and limit purchases. This will depress prices faster than costs, causing depressed market activity. Deflation is possible, though it hasn’t been a problem in a very long time. Now, it wont cause a Wicksellian rot, but the process will not be comfortable, and why should this happen when markets work, even for money?
" because creditors won’t accept bank notes from insolvent banks if they have a choice."
well, if frb is actually practiced now and kept afloat via govt decree and govt central bank the fractional banks would likely be risky ventures and somewhat contained by natural cautiousness of people and their money.
i dont think anyone would have a problem with that per se.
Answer the questions.
You need to explain what makes you correct. And you haven’t. And you can’t.
