Reality to Harry: debtors sometimes deafult on their debts. Which has nothing to do with fraud.
I have established what the bank note says and the restrictions that are on it. It is you who keep insisting that the bank note has no restrictions. If you don’t like the bank then you have the option not to accept the note, at least if the anti-freedom group do not get there way, otherwise you will have to deal with the bank police looking over your shoulder every time you loan somebody money.
Yes, you are anti-freedom because you are not willing to allow people to make perfectly plausible and reasonable voluntary contracts unless they meet your approval.
All contracts are promises. You are asking under what circumstances can these contracts be enforced. At any rate the bank note is an enforceable contract.
Smith has 100 gold coins. He can use them to buy anything he wants NOW because “cash is king”.
But Smith lends his gold coins to his friend Jones and gets an IOU from Jones. Is this piece of paper the equivalent* to 100 gold coins ? No way in hell. (*equi = equal, valent = value).
Your system Max is just an attempt to hide the fact that IOUs are not cash. Your facts-distorting system is just misrepresentation and fraud.
All I am saying is that we should let the market decide what is the value of the IOU’s, as you call them, instead of declaring them fraudulent as you are doing. Again, I am for the market and you are not.
the IOUS are really IdontOU’s. play money. clown money.
What is a lie and fraud is your attempt at misrepresenting the nature of the IOUs.
As for letting the market decide the value of that sort of paper, of course I support that.
You didn’t originally. But no matter. Why haven’t you responded to this:
Where did I ever say it wouldn’t be? Now your task is prove that it is logically identical with frac-reserve. Go to it. You’ll never be able to do it, though, since it isn’t.
Please respond to that.
Something which is prima facie fraud is fraud. You’re not for the market: you’re for whining and lying.
Can you link it or just repost it, I would like ot see it…
Surely Mises was wrong.
Why exactly ? Because his views don’t mesh with the frb propaganda you constantly spout ?
History? Evidence?
?
history & evidence of what ?
Here is the contract.
You deposit your 1 oz of gold in the freedom bank. The bank contract says you will receive 1 bank note that can be redeemed for one oz of gold or the equivalent amount of ounces of silver based on the current days prices. The contract also says that in the event that the note holder requests redemption and there are not sufficient either gold or silver reserves to meet immediate demand then the note holder agrees to give the bank up to 60 days to meet the demand request. The contract also states that the bank is not obligated to hold any particular mix of assets backing the bank notes and that there is some risk that the assets the bank may hold may be inadequate to meet all demand requests and that the depositor accepts this risk.
That contract would comonly be described as FRB. Is that fraud?
I just posted the contract again for the 3rd time.
FRB is when the bank holds a fraction of the redeemable item. So if a bank has $100 in deposits it only has $10 in reserves and has $90 of loan contracts. So if you deposit/loan your money to the bank then the bank loans it out that would be FRB. That is why Block’s admission that there is no logical difference between Demand deposits and Time Deposits illustrates the flaw in your anti-freedom group. If all time deposits can be loaned out then bank just makes everything a time -deposit/loan. The the depositor bears the risk of default.
The only other subset of questions is how will the notes based on demand/time-deposits be traded in the market. My approach is simple, let the market decide. Your approach is that this is fraud and the banker should be arrested.
the depositor accepts the risk that the bank will say ," we cant pay you come back in 60 days", just whenever they want to, and accept the risk that after 60 days they might still not pay you, because they say they can’t afford to, buyer beware, thats the end of that. ?
is this attractive compared to sound money? and turning off the business cycle ? Whats your take on the business cycle?, that its just an unfortunate price for ‘freedom’ , that every good anarchist should tolerate boom and bust because sound money is unlilbertarian?
So this…
Is going ot be printed on every note that you trade for every amount of commodity you accept???
That it flourished countless times during the last millennia, even earlier, when allowed by states.
You mean fraud flourishes when ‘allowed’ and backed by the state ? Right, it does.