The Economics of Fractional Reserve Banking | Jeffrey M. Herbener

[@errorcode99]

This is fantastic stuff. I am a millennial and we don't learn any of this in college... or ANYWHERE else for that matter. Thank you Mises Institute.

[@RealJustLaw]

Agreed!!!

[@2vnews902]

Competition everywhere. Let currencies compete (including cryptocurrencies) and let full and fractional reserve banks compete. Let the market decide.

[@Bunjee77]

I would love to see how a free market economy actually works. I know it would be awesome but it could be even better than anyone could imagine. Unhampered worldwide coordination of capital

[@soulkeaper7]

Would be a glorious day.

[@RealJustLaw]

Excellent talk, I'd love to learn more about the legal arguments against FRB

[@2vnews902]

1. The bank is paying depositors by offering a free service. 2. The bank has to reconcile its books, so double dipping would not be a major issue.

[@generalsalami8875]

Ious & credit serve the purpose as money. It's a claim to money that people trade as if it is.

[@2vnews902]

Fractional reserve banking is not the problem. FDIC, Federal Reserve and other government involvement are the problem.

[@generalsalami8875]

In a free market we'd tend away from fractional reserve banking.

[@simonsmith3030]

On the whole a very good exposition of fractional reserve banking. With respect to 100% reserve banking: whether to use commodity money (eg gold) or fiat money is where I disagree. If you believe in precious metal money then you have to try and get your head around the for example the crime of 73 or the problems in Britain when we tried to return to the gold standard after WWI. On the other hand if government irresponsibly just prints money - NOT CORRESPONDING TO PRODUCTION -then there is inflation. You are damned if you do and damned if you don't. Nevertheless I believe that the only hope is an enlightened educated public voting in responsible government. Yes, I know it's a laughable concept... A precious metal money will drive the monopolising powers - those controlling economic rent. Do we trust the Rothschild crime syndicate or the puppets in government? I think this is where I don't trust the well spoken eloquent salaried Austrian academics. This eloquence while refraining from four letter words like "land", gives the idea that banks are deviant because of government, when government is deviant because of banks. I therefore believe Austrian economics fails to properly critique the deep state because its beneficiaries are paid by those in the shadows who maintain the Austrian/Keynes Republican/Democratic Conservative/Labour Tweedledee and Tweedledum dichotomy. It's about time Tweedleland was allowed his say... (Despite my reservations. A good speaker.)

[@dwaindibley4137]

This is mostly nonsense.

[@techmonkey2]

Please explain. Sounds reasonable to me.

[@tomtd]

Is that The Professor Dwain Dibley? Or an imposter

[@generalsalami8875]

You d¡psh*ts never give arguments. Cause you have none.