Hmmm...
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Free Banking
Fractional Reserve Banking
Hmmm...
I think you'll need to amend the poll... Title says: "Free Banking vs Full Reserve Banking"
Poll says: Free Banking vs. Fractional Reserve Banking.
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Well, I can't vote on this because the two selections are one in the same.
But if it was between Free Banking (which is Fractional Reserve Free Banking) vs Full Reserve enforced banking (this would *have* to be state mandated, btw)... then I would certainly pick 'Free Banking'.
Free Banking is fractional reserve banking, no regulations, no legal tender laws, no government / FDIC insurance, no central bank, etc. It is as it implies, absolutely 100% free market banking.
FRFB (fractional reserve free banking) is not only supported by Austrian Theory (and great austrian economists such as Mises, Hayek, Horwitz, Selgin, White, among others like Peter Schiff), but has also been the free market preference in free market times. However, there is absolutely *zero* shred of evidence that free(r) markets have selected a full reserve banking system over a competing fractional reserve free banking system.
In principle, fractional reserve banking is no different than a parking lot which rents out more tickets than it has spaces, on the assumption that not everyone will park there at once. This is a maximization of profit and thus most efficient use of available resources and allocating them effectively, most effectively according to the demands of consumers.
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Free banking, if only because free competition must lead to (near) full-reserve banking, as the Austrian school shows. (I assume "full-reserve banking" here refers to a government mandate). I also assume the second poll option is a typo.
Free banking doesn't necessarily imply fractional reserves. You can have a "free bank" that runs on full reserves. Only banks better fulfill their obligations when called upon.
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I don't care how you bank as long as it is voluntary
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"Fractional Reserve Banking vs Free Banking"
It looks like Full Reserve Banking will lose in the poll no matter what, for some reason.
Asking the wrong crowd. Fractional Reserve Banking is known to just about every member here to be a tool of Money Manipulation to deprive people of their property, by leveraging something that was created from nothing against things of real value.
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Basically three different concepts. Free banking has no reserve requirements- they are voluntary. A fractional reserve bank is required to keep at least a minimum specified percent of deposits on hand (or on deposit with the Fed) they are not allowed to lend out. A full reserve bank is required to keep 100% of deposits on hand which makes lending dififcult.
http://en.wikipedia.org/wiki/Full-reserve_banking
Full-reserve banking, also known as 100% reserve banking, is a banking practice in which the full amount of each depositor's funds are kept in reserve, as cash or other highly liquid assets. In other words, funds deposited are not lent out by the bank as long as the depositor retains the legal right to withdraw the funds on demand.
I'm not really fond of any kind of banking.
Full Reserve would be okay, then it is basically just a warehouse for your currency and not the big scam it is today. I dislike fractional reserve whether it is "free" or the manipulated nonsense that it is today.
Last edited by ChaosControl; 08-09-2011 at 11:45 AM.
Hayekian Free banking ftw.
With government out of the way of the monetary system there is no reason to enforce reserve requirements.
-Molinarian-
This thread really needs to be deleted; and re-done again.
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Originally Posted by Philhelm
http://www.freebanking.org/
The Problem is Central Banking not Fractional Reserve Banking
http://www.freebanking.org/2011/06/2...serve-banking/
“I will be as harsh as truth, and uncompromising as justice... I am in earnest, I will not equivocate, I will not excuse, I will not retreat a single inch, and I will be heard.” ~ William Lloyd Garrison
Worthy Threads:
- Ron Paul reconfirms his voluntarism
- Murray N. Rothbard: In Memoriam by Ron Paul
- State or Private Law Society?
- Please convince me of statism!
- Ron Paul and Private Courts
- Youtube
I really don't think as many as you think on this board have been corrupted by Rothbard's erroneous claims about FRFB.
That said, in my experience, those who argue for 100% full reserve banking and against FRFB are quite crankish.
It's almost like a hard line socialist debating a hard line capitalist. The debate for them is emotional, not rational.
"If men are good, then they need no rulers. If men are bad, then governments of men, composed of men, will also be bad - and probably worse, due to the State's amplification of coercive power." - Ozarkia
"Big Brother is watching. So are we." - WikiLeaks
Laissez-nous faire, laissez-nous passer. Le monde va de lui meme.
Last edited by Conza88; 08-10-2011 at 10:01 AM.
“I will be as harsh as truth, and uncompromising as justice... I am in earnest, I will not equivocate, I will not excuse, I will not retreat a single inch, and I will be heard.” ~ William Lloyd Garrison
Worthy Threads:
- Ron Paul reconfirms his voluntarism
- Murray N. Rothbard: In Memoriam by Ron Paul
- State or Private Law Society?
- Please convince me of statism!
- Ron Paul and Private Courts
- Youtube
..
Last edited by Jace; 09-20-2011 at 11:04 AM.
"If men are good, then they need no rulers. If men are bad, then governments of men, composed of men, will also be bad - and probably worse, due to the State's amplification of coercive power." - Ozarkia
"Big Brother is watching. So are we." - WikiLeaks
Laissez-nous faire, laissez-nous passer. Le monde va de lui meme.
In this thread, yes... but in the numerous debates on this forum I've engaged in, a pretty good portion of visitors/posters are actually FRFB supporters - especially the more economically-minded ones, I've noticed.
Nice find, dude. I actually always wondered what Hoppe's position on FRFB vs full reserve banking was... but never took the time to check it out... I'll have to watch this later to see what his position on it is.Guess it's good I use mostly Hoppe then?
Yes, absolutely.Threadmarker, go make a thread.
"If men are good, then they need no rulers. If men are bad, then governments of men, composed of men, will also be bad - and probably worse, due to the State's amplification of coercive power." - Ozarkia
"Big Brother is watching. So are we." - WikiLeaks
Laissez-nous faire, laissez-nous passer. Le monde va de lui meme.
You mentioned in another thread that you communicate with Stephan Kinsella frequently. I've noticed that although Kinsella doesn't consider FRB to be fraud, he doesn't consider it “economically viable, sound, or needed”, and more than once I've seen him cite Hoppe’s papers as a source for the "explanation" for why. One such time is in the “comment” part following this article, at the end of his second response. Just bringing this to your attention.
Last edited by robert68; 08-12-2011 at 11:25 AM.
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