2008-2-26 15:26:00
Susan wrote:
"I say we must first limit fractional banking, 'commercial bank money' to be equal to what we allow on the federal money side. If we are going to require reserves of 10 percent for banks then we only require 10% reserves of gold. I would personally think 30 percent would be safer.
"I think the above would only be an interim step. I believe the only real solution is a 100 percent backed gold standard as fractional banking leads to inflation, pure and simple.
"The next thing I would do would be to dissolve the Central Bank, The Federal Reserve, and let Congress issue federal money and let banks offer competing notes, their own 'commercial bank money.' If they fractionalize their own notes they will lose credibility and no one will want their notes (highly simplified, but you get the gist of it.)"
JJ:
How would you back up $13 trillion dollars worth of money with $132 million worth of gold that is available?
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