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Comment: To expand Goldspan's comment.

(See in situ)

To expand Goldspan's comment.

It's a question of voluntary or coerced or secret.

Since 1913 it has been a coerced doubling of the money supply every 7.6 years.

If I volunteer to back a bank's paper coupons with my gold and silver, I risk my property. If the bank is imprudent, then a bank run will bankrupt the bank.

Risk and profit: Profit motivates me to support their coupons, risk of losing all tempers my choices.

If it done secret then it is fraud, IMO.

If they claim to be a full reserve bank but are not, that is fraud. Or if they are an 80% reserve bank with 70% reserves, that is fraud.

Walter Block has examined this in detail.

Free includes debt-free!