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	<title>Comments on: 100% Reserve vs. Fractional Reserve Banking</title>
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		<title>By: Nima</title>
		<link>http://www.economicsjunkie.com/100-reserve-vs-fractional-reserve-banking/comment-page-1/#comment-44008</link>
		<dc:creator>Nima</dc:creator>
		<pubDate>Sat, 31 Dec 2011 00:59:37 +0000</pubDate>
		<guid isPermaLink="false">http://www.economicsjunkie.com/?p=2532#comment-44008</guid>
		<description>I didn&#039;t say that you lack curiosity based on not having read all my posts. I said that the lack of curiosity shows in the presumptuous statements you make and lack of questions you ask. Just now again for example when you assumed something about my criticism of your lack of curiosity that I hadn&#039;t said, without actually being curious and asking about what I meant in case something was not clear to you.

Unfortunately, as you can see, it shows through in virtually everything you do and it takes some will and effort to address, should you at all be interested in virtue and self improvement.

Good riddance.</description>
		<content:encoded><![CDATA[<p>I didn&#8217;t say that you lack curiosity based on not having read all my posts. I said that the lack of curiosity shows in the presumptuous statements you make and lack of questions you ask. Just now again for example when you assumed something about my criticism of your lack of curiosity that I hadn&#8217;t said, without actually being curious and asking about what I meant in case something was not clear to you.</p>
<p>Unfortunately, as you can see, it shows through in virtually everything you do and it takes some will and effort to address, should you at all be interested in virtue and self improvement.</p>
<p>Good riddance.</p>
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		<title>By: revolutionmeow</title>
		<link>http://www.economicsjunkie.com/100-reserve-vs-fractional-reserve-banking/comment-page-1/#comment-44005</link>
		<dc:creator>revolutionmeow</dc:creator>
		<pubDate>Sat, 31 Dec 2011 00:51:05 +0000</pubDate>
		<guid isPermaLink="false">http://www.economicsjunkie.com/?p=2532#comment-44005</guid>
		<description>Hmm, don&#039;t know if you are saying that you simultaneously invented the ideas of &quot;anti violence&quot; or that your ideas are so complex that you can&#039;t summarize them here and basically telling me to read 7 years of you blogging. My apologizes for not believing the first and not wanting to wade through the latter.

Exactly what &#039;arguments&#039; you&#039;ve posed I don&#039;t know, because you won&#039;t specify, is it: the original arguments in the OP that I refuted with the fact that it would be unworkably deflationary or the non existent questions that you&#039;ve posed in response to my original response?

Love the irony that is lost on you for claiming that I am not curious and/or lazy for not reading all diary on economics yet you chastise me for referring for you to read a book.  It&#039;s true it isn&#039;t on the approved Libertarian reading list.

Ta ta, can&#039;t spend anymore of my time here.</description>
		<content:encoded><![CDATA[<p>Hmm, don&#8217;t know if you are saying that you simultaneously invented the ideas of &#8220;anti violence&#8221; or that your ideas are so complex that you can&#8217;t summarize them here and basically telling me to read 7 years of you blogging. My apologizes for not believing the first and not wanting to wade through the latter.</p>
<p>Exactly what &#8216;arguments&#8217; you&#8217;ve posed I don&#8217;t know, because you won&#8217;t specify, is it: the original arguments in the OP that I refuted with the fact that it would be unworkably deflationary or the non existent questions that you&#8217;ve posed in response to my original response?</p>
<p>Love the irony that is lost on you for claiming that I am not curious and/or lazy for not reading all diary on economics yet you chastise me for referring for you to read a book.  It&#8217;s true it isn&#8217;t on the approved Libertarian reading list.</p>
<p>Ta ta, can&#8217;t spend anymore of my time here.</p>
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		<title>By: Nima</title>
		<link>http://www.economicsjunkie.com/100-reserve-vs-fractional-reserve-banking/comment-page-1/#comment-43987</link>
		<dc:creator>Nima</dc:creator>
		<pubDate>Fri, 30 Dec 2011 21:59:53 +0000</pubDate>
		<guid isPermaLink="false">http://www.economicsjunkie.com/?p=2532#comment-43987</guid>
		<description>&lt;blockquote&gt;I am making a single assumption in all of this: that you didn’t independently invent the idea of “anti violence” and got this idea from the libertarian circles in which it originated, popularized by Ayn Rand.&lt;/blockquote&gt;

... and there my friend, lies your problem.

Actually everything you said above shows that you actually haven&#039;t dealt with anything of what I&#039;m saying here.

I would also, as a courtesy, point out one more time that you haven&#039;t actually refuted a single one of my arguments. All you did was put words in my mouth and then make up scenarios attempting to refute those words.

Don&#039;t get me wrong, I don&#039;t have a problem with you not having read any of my stuff, it&#039;s totally up to you. I would never use the lazy &quot;go and read book xyz by some other person&quot; response and I actually even try to avoid doing that kind of stuff with my very OWN writings.

But what I do find annoying is that you pretend to know what my arguments are and then go on and on based upon pre conceived assumptions.

How about you try out a bit more curiosity?

What you are doing shows &lt;strong&gt;no curiosity at all&lt;/strong&gt;, just the same old boring stuff that I myself used to believe in and spout out as an econ undergrad, making it sound like you actually believe that you&#039;re adding anything new.

I always say that I can excuse one&#039;s ignorance, but what I can absolutely not excuse it one&#039;s laziness, for it is a deliberately chosen approach that you are fully accountable for.

It&#039;s not a very pleasant way to try and debate with people, so you don&#039;t need to be surprised when you turn off other people as well with that approach.</description>
		<content:encoded><![CDATA[<blockquote><p>I am making a single assumption in all of this: that you didn’t independently invent the idea of “anti violence” and got this idea from the libertarian circles in which it originated, popularized by Ayn Rand.</p></blockquote>
<p>&#8230; and there my friend, lies your problem.</p>
<p>Actually everything you said above shows that you actually haven&#8217;t dealt with anything of what I&#8217;m saying here.</p>
<p>I would also, as a courtesy, point out one more time that you haven&#8217;t actually refuted a single one of my arguments. All you did was put words in my mouth and then make up scenarios attempting to refute those words.</p>
<p>Don&#8217;t get me wrong, I don&#8217;t have a problem with you not having read any of my stuff, it&#8217;s totally up to you. I would never use the lazy &#8220;go and read book xyz by some other person&#8221; response and I actually even try to avoid doing that kind of stuff with my very OWN writings.</p>
<p>But what I do find annoying is that you pretend to know what my arguments are and then go on and on based upon pre conceived assumptions.</p>
<p>How about you try out a bit more curiosity?</p>
<p>What you are doing shows <strong>no curiosity at all</strong>, just the same old boring stuff that I myself used to believe in and spout out as an econ undergrad, making it sound like you actually believe that you&#8217;re adding anything new.</p>
<p>I always say that I can excuse one&#8217;s ignorance, but what I can absolutely not excuse it one&#8217;s laziness, for it is a deliberately chosen approach that you are fully accountable for.</p>
<p>It&#8217;s not a very pleasant way to try and debate with people, so you don&#8217;t need to be surprised when you turn off other people as well with that approach.</p>
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		<title>By: revolutionmeow</title>
		<link>http://www.economicsjunkie.com/100-reserve-vs-fractional-reserve-banking/comment-page-1/#comment-43973</link>
		<dc:creator>revolutionmeow</dc:creator>
		<pubDate>Fri, 30 Dec 2011 20:14:59 +0000</pubDate>
		<guid isPermaLink="false">http://www.economicsjunkie.com/?p=2532#comment-43973</guid>
		<description>Ah, the Ayn Randian anti-violence ideology, but of course.  How anti-surprising. This is something that I&#039;ve refuted and exposed the flaws to on the Bitcoin forums repeatedly, to which nobody had any good responses, so I&#039;m not really looking to do that again at length.  It is because that the &quot;anti-violence&quot; mentality (as popularized by Ayn Rand) IS NOT moral philosophy or system of determining what is right, it is a system of cheap ideology where any scenario of morality has a convenient, simple, flimsy solution to it.  Does saving thousands of children from starvation involve violence, force or even potential violence on someone else?  Then let them starve; surely the inheritance of a 4th generation trust fund baby is more sacred.  This philosophy, insofar in my encounters with its adherents give special privilege to money.  They give special privilege to the Status Quo.  Reform becomes impossible.  The popular will is irrelevant.  Government can&#039;t function.  Non-violent forms of destructive activity or anti-social activity become impossible to forbid with law.  The vast majority of laws become impossible to enforce.  Human life itself even becomes meaningless in holding to this ideology.  The &#039;funny&#039; thing about all of this is that it&#039;s followers are even unaware that they&#039;re doing this, and can only quote vague, nonspecific generalizations about &#039;freedom&#039; and &#039;liberty&#039;.  Freedom for who to do what is never asked.  They are much more interested in man &#039;as such&#039;.  

Let&#039;s take something to its logical conclusion shall we?  If you had to kill 1 person to save 100,000 would you do it?  If you had to kill 1 person to save 100,000,000 would you do it?  If you had to inconvenience 1 person to save 100,000,000 would you do it?  While answering &quot;no&quot; to the first and second question may be justifiable and make for an interesting discussion about morality, it is evident that anyone answering no to the 3rd isn&#039;t simply indifferent to morality but actively manifesting evil on the planet.    As the tenants of the &quot;Anti-Violence&quot; position would assuredly answer &quot;no&quot; to all 3 of these, they are actively supporting evil.  

In short, the anti-violence ideology isn&#039;t moral philosophy, and so is supported and followed by those that believe that making moral decisions is simply too difficult.  It is true that making moral decisions is hard, but it is a necessary function of being a human being.  If one feels they are not up for it then they might as well give back Zeus the power to make fire, give the forbidden fruit back to the snake, and simply become a beast because that is what they want to be.  Unfortunately this isn&#039;t how a society functions or can function.  I&#039;m sure that if you have children you don&#039;t follow your own ideology in this regard - indeed, if you did you would of course be an awful parent.  Point being, is that power relations exist in society, have existed for time immemorial and are likely to exist as far as we can speculate into the future.  Hierarchy and different levels of power and ability are inherent in the aggregation of large groups of people.  Saying that we violence can&#039;t be used ignores the entirety of human relations.

The tenants of classical economics are also fundamental to this Ayn Randian ideal.  Please read &quot;Debt: The first 5000 years&quot;.  Great book, that obliterates many of the central, fictional pillars of classical economics.  A must read.

If any of this doesn&#039;t apply to you, then fine.  I am making a single assumption in all of this: that you didn&#039;t independently invent the idea of &quot;anti violence&quot; and got this idea from the libertarian circles in which it originated, popularized by Ayn Rand.  I&#039;m gathering this information by the posts you&#039;ve made and the things you are promoting on your website.</description>
		<content:encoded><![CDATA[<p>Ah, the Ayn Randian anti-violence ideology, but of course.  How anti-surprising. This is something that I&#8217;ve refuted and exposed the flaws to on the Bitcoin forums repeatedly, to which nobody had any good responses, so I&#8217;m not really looking to do that again at length.  It is because that the &#8220;anti-violence&#8221; mentality (as popularized by Ayn Rand) IS NOT moral philosophy or system of determining what is right, it is a system of cheap ideology where any scenario of morality has a convenient, simple, flimsy solution to it.  Does saving thousands of children from starvation involve violence, force or even potential violence on someone else?  Then let them starve; surely the inheritance of a 4th generation trust fund baby is more sacred.  This philosophy, insofar in my encounters with its adherents give special privilege to money.  They give special privilege to the Status Quo.  Reform becomes impossible.  The popular will is irrelevant.  Government can&#8217;t function.  Non-violent forms of destructive activity or anti-social activity become impossible to forbid with law.  The vast majority of laws become impossible to enforce.  Human life itself even becomes meaningless in holding to this ideology.  The &#8216;funny&#8217; thing about all of this is that it&#8217;s followers are even unaware that they&#8217;re doing this, and can only quote vague, nonspecific generalizations about &#8216;freedom&#8217; and &#8216;liberty&#8217;.  Freedom for who to do what is never asked.  They are much more interested in man &#8216;as such&#8217;.  </p>
<p>Let&#8217;s take something to its logical conclusion shall we?  If you had to kill 1 person to save 100,000 would you do it?  If you had to kill 1 person to save 100,000,000 would you do it?  If you had to inconvenience 1 person to save 100,000,000 would you do it?  While answering &#8220;no&#8221; to the first and second question may be justifiable and make for an interesting discussion about morality, it is evident that anyone answering no to the 3rd isn&#8217;t simply indifferent to morality but actively manifesting evil on the planet.    As the tenants of the &#8220;Anti-Violence&#8221; position would assuredly answer &#8220;no&#8221; to all 3 of these, they are actively supporting evil.  </p>
<p>In short, the anti-violence ideology isn&#8217;t moral philosophy, and so is supported and followed by those that believe that making moral decisions is simply too difficult.  It is true that making moral decisions is hard, but it is a necessary function of being a human being.  If one feels they are not up for it then they might as well give back Zeus the power to make fire, give the forbidden fruit back to the snake, and simply become a beast because that is what they want to be.  Unfortunately this isn&#8217;t how a society functions or can function.  I&#8217;m sure that if you have children you don&#8217;t follow your own ideology in this regard &#8211; indeed, if you did you would of course be an awful parent.  Point being, is that power relations exist in society, have existed for time immemorial and are likely to exist as far as we can speculate into the future.  Hierarchy and different levels of power and ability are inherent in the aggregation of large groups of people.  Saying that we violence can&#8217;t be used ignores the entirety of human relations.</p>
<p>The tenants of classical economics are also fundamental to this Ayn Randian ideal.  Please read &#8220;Debt: The first 5000 years&#8221;.  Great book, that obliterates many of the central, fictional pillars of classical economics.  A must read.</p>
<p>If any of this doesn&#8217;t apply to you, then fine.  I am making a single assumption in all of this: that you didn&#8217;t independently invent the idea of &#8220;anti violence&#8221; and got this idea from the libertarian circles in which it originated, popularized by Ayn Rand.  I&#8217;m gathering this information by the posts you&#8217;ve made and the things you are promoting on your website.</p>
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		<title>By: Nima</title>
		<link>http://www.economicsjunkie.com/100-reserve-vs-fractional-reserve-banking/comment-page-1/#comment-43941</link>
		<dc:creator>Nima</dc:creator>
		<pubDate>Fri, 30 Dec 2011 13:52:31 +0000</pubDate>
		<guid isPermaLink="false">http://www.economicsjunkie.com/?p=2532#comment-43941</guid>
		<description>You actually have up there an entire article that explains to you what the &lt;strong&gt;functional&lt;/strong&gt; benefits of a peaceful money system are and unless I&#039;ve missed something you haven&#039;t actually given me a single counter argument against what has been written, my friend.

The &lt;strong&gt;moral&lt;/strong&gt; reason why I favor a peaceful monetary system, aside from all the obvious benefits to the common man that you can pretty easily read up on here or elsewhere in the digital age, is that I believe that the initiation of &lt;a href=&quot;http://www.economicsjunkie.com/praxeology/economics/economics-of-compulsory-action/violence/&quot; rel=&quot;nofollow&quot;&gt;violence&lt;/a&gt; against peaceful people is immoral.

Cheers and Happy Holidays,
EJ</description>
		<content:encoded><![CDATA[<p>You actually have up there an entire article that explains to you what the <strong>functional</strong> benefits of a peaceful money system are and unless I&#8217;ve missed something you haven&#8217;t actually given me a single counter argument against what has been written, my friend.</p>
<p>The <strong>moral</strong> reason why I favor a peaceful monetary system, aside from all the obvious benefits to the common man that you can pretty easily read up on here or elsewhere in the digital age, is that I believe that the initiation of <a href="http://www.economicsjunkie.com/praxeology/economics/economics-of-compulsory-action/violence/" rel="nofollow">violence</a> against peaceful people is immoral.</p>
<p>Cheers and Happy Holidays,<br />
EJ</p>
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		<title>By: revolutionmeow</title>
		<link>http://www.economicsjunkie.com/100-reserve-vs-fractional-reserve-banking/comment-page-1/#comment-43890</link>
		<dc:creator>revolutionmeow</dc:creator>
		<pubDate>Fri, 30 Dec 2011 02:58:25 +0000</pubDate>
		<guid isPermaLink="false">http://www.economicsjunkie.com/?p=2532#comment-43890</guid>
		<description>Why would I need to know the number or contents of every single law regarding the regulation of the financial sector in the past 200 years?  What does that have to do with the repeal of Glass-Steagall, the deregulation of derivatives and other deregulation?  My point is that the process of debt creation has been largely deregulated and is happening where nobody has any legal recourse against it.  I don&#039;t think either of us are obviously fans of the financial sector, but I&#039;m sure we differ in what needs to be done about it.

As for the Austrian Quest to Prevent Inflation, for what other purpose would you be arguing in favor of a system of 100% Reserve Banking?  For what other conceivable apparent benefit could there be to this system?  The sole purpose of it appears to be to prevent an increase in the money supply and therefore inflation or the possibility of it.  If there are any other perceived benefits to this proposed system please let me know.

The reason why I said &quot;Austrian&quot; is because of your obvious leanings, and the links that you have posted on the side of your site.  I apologize if you don&#039;t categorize yourself in this manner, but it is a core tenet of the Austrian and Chicago schools to see inflation as a worse evil than basically anything else, you are promoting their ideology in your writing and in your links... so...?</description>
		<content:encoded><![CDATA[<p>Why would I need to know the number or contents of every single law regarding the regulation of the financial sector in the past 200 years?  What does that have to do with the repeal of Glass-Steagall, the deregulation of derivatives and other deregulation?  My point is that the process of debt creation has been largely deregulated and is happening where nobody has any legal recourse against it.  I don&#8217;t think either of us are obviously fans of the financial sector, but I&#8217;m sure we differ in what needs to be done about it.</p>
<p>As for the Austrian Quest to Prevent Inflation, for what other purpose would you be arguing in favor of a system of 100% Reserve Banking?  For what other conceivable apparent benefit could there be to this system?  The sole purpose of it appears to be to prevent an increase in the money supply and therefore inflation or the possibility of it.  If there are any other perceived benefits to this proposed system please let me know.</p>
<p>The reason why I said &#8220;Austrian&#8221; is because of your obvious leanings, and the links that you have posted on the side of your site.  I apologize if you don&#8217;t categorize yourself in this manner, but it is a core tenet of the Austrian and Chicago schools to see inflation as a worse evil than basically anything else, you are promoting their ideology in your writing and in your links&#8230; so&#8230;?</p>
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		<title>By: Nima</title>
		<link>http://www.economicsjunkie.com/100-reserve-vs-fractional-reserve-banking/comment-page-1/#comment-43732</link>
		<dc:creator>Nima</dc:creator>
		<pubDate>Wed, 28 Dec 2011 06:29:13 +0000</pubDate>
		<guid isPermaLink="false">http://www.economicsjunkie.com/?p=2532#comment-43732</guid>
		<description>Well, let me ask you: Did you do the research on how many laws have been created affecting the US financial sector over the past 200 years? As far as I can tell and have laid out and argued many times, there are very few other industries out there with that degree of state regulation, involvement, subsidies, privileges, and bailouts.

You said in your initial response that there is an &quot;Austrian quest to prevent !INFLATION! at all costs&quot; and you&#039;re claiming I&#039;m ignoring some old arguments that have been made and refuted a million times already. The unfortunate part about making such statements is that you&#039;re putting words in my mouth and being a tad bit un-curious about what I&#039;ve been saying for the past 7 years that I&#039;ve been writing this blog.</description>
		<content:encoded><![CDATA[<p>Well, let me ask you: Did you do the research on how many laws have been created affecting the US financial sector over the past 200 years? As far as I can tell and have laid out and argued many times, there are very few other industries out there with that degree of state regulation, involvement, subsidies, privileges, and bailouts.</p>
<p>You said in your initial response that there is an &#8220;Austrian quest to prevent !INFLATION! at all costs&#8221; and you&#8217;re claiming I&#8217;m ignoring some old arguments that have been made and refuted a million times already. The unfortunate part about making such statements is that you&#8217;re putting words in my mouth and being a tad bit un-curious about what I&#8217;ve been saying for the past 7 years that I&#8217;ve been writing this blog.</p>
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		<title>By: revolutionmeow</title>
		<link>http://www.economicsjunkie.com/100-reserve-vs-fractional-reserve-banking/comment-page-1/#comment-43723</link>
		<dc:creator>revolutionmeow</dc:creator>
		<pubDate>Wed, 28 Dec 2011 03:35:11 +0000</pubDate>
		<guid isPermaLink="false">http://www.economicsjunkie.com/?p=2532#comment-43723</guid>
		<description>Hmm.  Don&#039;t know if that was sarcasm because due to the removal of Glass-Steagall and the ability to have assets/liabilities off-balance sheet and the legalization of unregulated derivatives we actually DO NOT have strict laws regarding the creation of credit.  There are more examples than this to be certain but I&#039;ll leave it at that.  Guess it depends on one&#039;s definition of &#039;strict&#039;, although I&#039;m never one for trying to redefine the English language to muddy the argument.  So, in short: please clarify.</description>
		<content:encoded><![CDATA[<p>Hmm.  Don&#8217;t know if that was sarcasm because due to the removal of Glass-Steagall and the ability to have assets/liabilities off-balance sheet and the legalization of unregulated derivatives we actually DO NOT have strict laws regarding the creation of credit.  There are more examples than this to be certain but I&#8217;ll leave it at that.  Guess it depends on one&#8217;s definition of &#8217;strict&#8217;, although I&#8217;m never one for trying to redefine the English language to muddy the argument.  So, in short: please clarify.</p>
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		<title>By: Nima</title>
		<link>http://www.economicsjunkie.com/100-reserve-vs-fractional-reserve-banking/comment-page-1/#comment-43719</link>
		<dc:creator>Nima</dc:creator>
		<pubDate>Wed, 28 Dec 2011 02:20:22 +0000</pubDate>
		<guid isPermaLink="false">http://www.economicsjunkie.com/?p=2532#comment-43719</guid>
		<description>&quot;It just needs strict laws around when and how credit can be created&quot; ... which of course we didn&#039;t have AT ALL in the run up to the most recent financial crisis ;)</description>
		<content:encoded><![CDATA[<p>&#8220;It just needs strict laws around when and how credit can be created&#8221; &#8230; which of course we didn&#8217;t have AT ALL in the run up to the most recent financial crisis ;)</p>
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		<title>By: revolutionmeow</title>
		<link>http://www.economicsjunkie.com/100-reserve-vs-fractional-reserve-banking/comment-page-1/#comment-43655</link>
		<dc:creator>revolutionmeow</dc:creator>
		<pubDate>Tue, 27 Dec 2011 05:39:36 +0000</pubDate>
		<guid isPermaLink="false">http://www.economicsjunkie.com/?p=2532#comment-43655</guid>
		<description>What the Author tends to ignore here in the Austrian quest to prevent !INFLATION! at all costs is what the cost to the borrower would be in a society trying to pursue the absurd 100% reserve banking?  Can you imagine how expensive (in interest) it would be to take out a loan in this system?  It would return to the olden days of hoarding money (in this case gold or gold certificates) where modern industrial society would collapse.  FRB has its faults if unregulated but was and still is an actual boon to commerce and our economy.  A 100% reserve system would be so deflationary that no economy/society could survive it.  It just needs strict laws around when and how credit can be created rather than the insane financial sector we have at present.</description>
		<content:encoded><![CDATA[<p>What the Author tends to ignore here in the Austrian quest to prevent !INFLATION! at all costs is what the cost to the borrower would be in a society trying to pursue the absurd 100% reserve banking?  Can you imagine how expensive (in interest) it would be to take out a loan in this system?  It would return to the olden days of hoarding money (in this case gold or gold certificates) where modern industrial society would collapse.  FRB has its faults if unregulated but was and still is an actual boon to commerce and our economy.  A 100% reserve system would be so deflationary that no economy/society could survive it.  It just needs strict laws around when and how credit can be created rather than the insane financial sector we have at present.</p>
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