So tell me what you were trying to say here, and put it in context. Keeping in mind the topic of this thread, "Fractional Reserve Banking."
What is it that can not be done with "sound money"?
...This wouldn't be possible with a sound currency. You cannot simply whip up an extra trillion gold certificates as someone may well try to exchange those certificates for gold you do not have.
I realize it can be fun to quote people out of context, but if you simply read the paragraph you're so fond of, in it's entirety I believe it's actually pretty clearly written. As to your reminder of the topic, you'd do well to recognize that the comment you seem to want to pick through and erroneously cite as some great grotcha, was a response to a comment someone else made. It had nothing whatsoever to do with you, though you've used it to illustrate, very effectively, that you do not understand the subject material of this thread.
I missed this post previously.
While I agree that absurdly low(artificially low is how I usually refer to it) interest rates are a huge problem, as it doesn't allow for a price discovery mechanism to operate, brutally punishes savers, and rewards gamblers, this isn't the whole problem. After all the very same NON governmental "authority" setting interest rates also "prints" the nation's currency, which it then lends to congress with interest. Plainly there's no legitimate reason to do this as congress is granted the authority to print our currency directly without interest, which is why there's a US treasury(they still stamp our coins). However if you're a politician in DC and you want to spend more than you're taking in it's fantastic, as you can inflate the budget to your heart's content and saddle future generations with that debt. This wouldn't be possible with a sound currency. You cannot simply whip up an extra trillion gold certificates as someone may well try to exchange those certificates for gold you do not have.
https://bitcointalksearch.org/topic/m.6695555In case you still SOMEHOW do not get it...it's a conversation about the federal reserve...which is not federal and does not have any reserves. It has nothing whatsoever to do with secondary currency generation...otherwise known as fractional reserve banking.
