Photo 24 Feb 19 notes baseballlibertarian: a-petro-manifesto: Thank you! I’ll be doing a little extra reading this weekend now.  Fractional reserve banking is out right theft and fraud.  Bankers steal from their depositors with the hopes that they don’t all come back looking for what is rightfully theirs.  As soon as a bank lends out more than it’s liabilities they become insolvent. Giving out money not backed by anything only causes massive inflation.  As it did all through out the history of banking.  The only thing that has propped up the banks is government intervention.  Many times through out the short history of the United States the government has made it illegal for people to organize bank runs and/or just suspended banks from giving the depositors what is rightfully theirs.  Unless you want to legalize theft and fraud.  Fractional reserve banking should be treated as such.  If people want to use a system of fractional reserve banking and voluntarily choose to do their banking with such an institution knowing full well they engage in fractional-reserve practices, why should they be stopped from doing that? A fractioanl reserve bank is not without benefits. Namely, the expansion of credit, as long as it is sustainable, offers depositors a better return than 100% reserve banking. Granted there are risks associated with such a bank, but that’s for the consumers to decide, not for me or you.

baseballlibertarian:

a-petro-manifesto:

Thank you!

I’ll be doing a little extra reading this weekend now. 

Fractional reserve banking is out right theft and fraud.  Bankers steal from their depositors with the hopes that they don’t all come back looking for what is rightfully theirs.  As soon as a bank lends out more than it’s liabilities they become insolvent. Giving out money not backed by anything only causes massive inflation.  As it did all through out the history of banking. 

The only thing that has propped up the banks is government intervention.  Many times through out the short history of the United States the government has made it illegal for people to organize bank runs and/or just suspended banks from giving the depositors what is rightfully theirs. 

Unless you want to legalize theft and fraud.  Fractional reserve banking should be treated as such. 

If people want to use a system of fractional reserve banking and voluntarily choose to do their banking with such an institution knowing full well they engage in fractional-reserve practices, why should they be stopped from doing that? A fractioanl reserve bank is not without benefits. Namely, the expansion of credit, as long as it is sustainable, offers depositors a better return than 100% reserve banking. Granted there are risks associated with such a bank, but that’s for the consumers to decide, not for me or you.

via Market Anarchy.
  1. ourben reblogged this from baseballlibertarian and added:
    I said they didn’t lend out the depositors money? Where was that? Banks lend out deposits and then some. We’re talking...
  2. antelopebaby reblogged this from baseballlibertarian and added:
    To logically positive—It might offer better returns, but the value of the currency of that bank will fall by the same...
  3. baseballlibertarian reblogged this from ourben and added:
    Explain to me why bank runs, before being propped up by a central inflationary bank and/or the government, bankrupted...
  4. ourben reblogged this from baseballlibertarian and added:
    promissory. Do you know...means? It means when...give...
  5. baseballlibertarian reblogged this from logicallypositive and added:
    They would be stealing from not only the “willing” but also the rest of society by devaluing the currency through...
  6. logicallypositive reblogged this from baseballlibertarian and added:
    It’s not theft or fraud as long as the bank discloses they are using fractional reserves. The bank is disclosing their...
  7. libertarians-and-stoya reblogged this from logicallypositive and added:
    Second what logicallypositive said. FRB pre-dates Central Banking and is an extremely good way to expand your economy....
  8. baseballlibertarian reblogged this from logicallypositive and added:
    Theft is theft. Fraud is fraud. I don’t understand how anyone would be okay with it? Under your theory I should be able...
  9. asuperfluousman reblogged this from thoseboringpolitics
  10. asuperfluousman reblogged this from logicallypositive and added:
    Read George Selgin and Lawrence White. Fractional-reserve banking is not outright theft and fraud; it does indeed arise...
  11. thoseboringpolitics reblogged this from baseballlibertarian and added:
    Fractional reserve banking has its positives. I wrote this post about the movement of credit in a full-reserve economy....
  12. logicallypositive reblogged this from baseballlibertarian and added:
    If people want to use a system of fractional reserve banking and voluntarily choose to do their banking with such an...

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