Comment: Timmay is right

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Timmay is right

but i would add that a private clearing house is needed to maintain a free banking system. It existed once in this country in the NE. read Rothbard "History of Banking and Money". Specifically the Suffolk County Bank.

Also, the "Greenbacker" need to realize they have been duped and get with the libertarian program, because government issued money with out banks is no better then the system we have now.
Read Gertrude Coogan’s Bluff by Gary North

http://mises.org/

Fractional reserve banking is equivalent to gun control

Depend on who’s holding the weapon whether it’s good or bad…… the government or the public. How many of you really know that the second amendment is more about keeping the government from forming and maintaining a “standing army” then “your right to bear arms”? That's the reason for a “well-regulated militia” was to keep the newly formed government from having a standing army and the citizens responsibility was given to them in the “right”…….the “right to keep and bear arms”…….here is the exact wording…….

A well-regulated Militia, being necessary to the security of a Free State, the right of the people to keep and bear Arms, shall not be infringed.

So the Anti- Federalist that fought for the “Bill of Right” was telling us that in order to sustain your liberty….do not have a standing army (which they saw as a threat to our liberty). The “well-regulated militia” was to keep the threat of a standing army at bay and to protect our “Liberty”, both foreign and domestic.

The same can be said for fractional reserve banking. Only when a cartel is established by the government for the benefit financing government deficits is fractional reserve banking a threat to our liberty. By privatizing the profits and socializing the losses the government threatens our liberty under the guise of protecting us from the hassle and inconvenience of being responsible for our own choices about which private bank notes maintain their purchasing power, but under ANY AND ALL GOVERNMENT BANKNOTES ARE WE ASSURED OF THE DEPRECATION OF OUR PURHASING POWER. (We are the slaves to the master we created)If we fought as hard to keep our “right” of our property of maintaining our purchasing power like we do our guns this debate would not be necessary. Fractional reserve banking practiced in the FREE MARKET (without a cartel) by banks that must operate under the laws of ALL OTHER businesses in this country that if they cannot pay their obligations (redeem paper notes on demand for specie) they are insolvent and should go out of business. It is the responsibility of the CITIZENRY to defend the purchasing power of their property just as it is a “right” for every citizen to defend his person and his family.

With a free banking system and a real bill doctrine of the fractional reserve lending we could have a system where we are not being plunder by our government……..this is how the debate should be formed….and stop debating the merits of fractional reserves banking……it makes you all sound smart but solves nothing.

PS if you want to read about the root debate of fractional reserve banking research “The Currency School vs The Banking School” debate in Great Britain. The CS believed that if you required a bank to hold a certain amount as a reserves that would restrict bank note expansion…..The BS believed if you maintained the requirement of species on demand from banknote holders this would restrict banknote issuance. But in the end fractional reserve banking is all about the extension of credit and without a reestablishment of the disintermedation laws and the return of Glass Stiegel…..it’s all hopeless…..the Fed is going to default on the dollar……the USG will pays it bills with worthless paper……and we will become Argentina, and the USG will have some badass weapons that we can’t compete against……so much for the Second Amendment.