Lender of last resort in an-cap society?

[scineram]

Hahaha, so are demand deposits.

[Knight_of_BAAWA]

We’ve been over this before: demand deposits are bailments. If not, then putting your stuff in a warehouse isn’t a bailment. But it is. So please disabuse yourself of your error.

[scineram]

Do warehouses pay you interest?

[Knight_of_BAAWA]

Are you still trying to equate the fractional-reserve system we have now with what should be? tsk-tsk. Didn’t you learn from last time?

[scineram]

Very nice non answer. Well enough convincing to the already true believers.

[Knight_of_BAAWA]

Except that it’s the proper response to your fallacious reasoning.

[Fephisto]

@bloomj31

First of all, I know you guys don’t like hypothetical questions about what will and will not happen in an an-cap society, because obviously, you don’t really know until it’s tried.

However, has any an-cap advocate ever talked about lenders of last resort and how they could be integrated into a free society?

I understand this is an incredibly complex issue and that, as such, the real answer is likely to be incredibly complicated. But it’s just something I’m curious about and I would like to get a cursory understanding of the proposed system before I try to investigate in more depth about how lenders of last resort would come to be and how they would function.

Clearing house (finance)

[ClaytonB]

@bloomj31

First of all, I know you guys don’t like hypothetical questions about what will and will not happen in an an-cap society, because obviously, you don’t really know until it’s tried.

However, has any an-cap advocate ever talked about lenders of last resort and how they could be integrated into a free society?

I understand this is an incredibly complex issue and that, as such, the real answer is likely to be incredibly complicated. But it’s just something I’m curious about and I would like to get a cursory understanding of the proposed system before I try to investigate in more depth about how lenders of last resort would come to be and how they would function.

A lender of last resort is a bank with the power to create money (inflate) without fear of a bank run. The only way such an institution can exist is by virtue of legal tender laws and a fractional-reserve monopoly (or cartel) abolishing honest banks. Since legal tender is inconsistent with natural order (natural money), it is not so much a hypothetical as a contradiction of terms to speak of a lender of last resort in an anarchic society.

Clayton -