“What purpose would the 40% reserve bank serve that could not be better achieved by your own allocation of your savings among a 100% reserve account and an investment account?”
i have asked something similar to this before and never got an answer that made any sense.
i can only assume that fractional reserve banking or govt controlled reserve banking actually takes place…this is what people have said here.
as for the property issues it seems that deposit owners own a few paper/coin currency items and ‘govt’ mandated credit forms of currency. so i dont understand all of the previous square- circle audio comparisons at mises sites.
“Cameco Australia’s $4-million 1999 exploration program now equals Cameco’s uranium exploration program in Saskatchewan.”
http://www.cameco.com/media/news_releases/1999/?id=371
i am not sure if the above linked info is true. but it mentions that a company called cameco spent 4 million on uranium exploration.
scenario…
if the 4 million was a bank loan…i guess loaned (as i have read at mises sites and others) from various types of deposit accounts and the bank added credit (based on 10 % RR) in the amount of 3.6 million would this be the process that could lead to boom/bust cycles described at mises.org?
some of a 4 million dollar loan is spent from a lending bank to set up a mining operation in the wilderness…but the townspeole where the lending bank was still spend credit as if it was money (3.6 million dollars) .
iow
the original 4 million dollar loan purchased distant capital goods for mining and many goods and items in the town along with the 3.6 million in bank credit now in depositors accounts…pushing up various prices of consumer goods
…
would the additional credit-spurred demand of consumer goods be the be the catalyst for malinvestment?
for instance, a sudden increased demand for office supples leading to additional malinvestmetns in office supplies?"
i dont know how the interaction of credit and hard money would differ from 100 percent reserve money that would be invested in a similar fashion.