I just read a paper by Lawrence H. White published in the independent review in 2003 entitled “Accounting for Fractional-Reserve Banknotes and Deposits—or, What’s Twenty Quid to the Bloody Midland Bank?” Essentially, White is a supporter of fractional-reserve banking and he makes a number of argume…

The problem with your example, z1235, is that banknotes are money. If the value of the note your have in your hand changes day by day, it would be a pain in the ass to buy things with it. And you would need to carry around a calculator to figure out how much you have in your pocket. Like i just sai…

Actually, it’s not a problem at all. The gold sits in the vault as the myriad of exchanges occur before the “expiration date”. The “bank bill” actually comprises of two parts (one fixed and one variable): 100oz + “the benefit of safe-keeping them at bank XYZ until date aa/bb/cccc”. Both parts are n…

So when you go to the store and buy something and the cashier says that will be one ounce of gold what do you do? Open your wallet and say lets see … Here is a one ounce bill that expires in 4 years 325 days…at a monthly fee of .0416%…this bill is only worth .91 ounces …not enough Lets see bill #2,…

Good. You also wouldn’t drive the same car or wear the same shoes as I do. That’s the beauty of a free market. Z.

That is some great economic progress. A money with mandatory depreciation over time. Gesell’s dream come true. I wonder why the market has never come up with this.

That is some great economic progress. A money with mandatory depreciation over time. Gesell’s dream come true. I wonder why the market has never come up with this. GLD (ETF) charges an expense of 0.4%/year for storage and administration of the trust that issues the shares. If you buy 100oz worth…

There are other solutions. Digital gold currencies can charge a per-transaction fee because they are an online currency. The Liberty Dollar used (uses? are they still in business despite the harassment from the Feds?) date stamps on the money to cause it to discount over time so they can track the …

That is some great economic progress. A money with mandatory depreciation over time. Gesell’s dream come true. I wonder why the market has never come up with this. Except the money itself isn’t actually depreciating. It’s a charge incurred by the use of this given bank’s money-substitutes. If th…

My thoughts on the whole digital gold/credit card thing is…while I can see it working, I don’t believe it would be as convienient as paper money. If I want to go to a poker game in my friend’s basement, then I would have to call up my bank and request a $50 transfer into his account. Then at the end…

I almost always pay in cash. GLD shares are not goint go help very much.

Question about warehousing fees in full-reserve banking

Economics Economics Questions

scineram March 21, 2010, 5:49pm 33

Nothing to add. You just feel free to keep deluding yourselves how never existent practices will somehow emerge instead of what obviously works.

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Question about warehousing fees in full-reserve banking

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