tag:blogger.com,1999:blog-5534600740192845222.post1191975153939374489..comments2023-07-09T07:29:16.668-04:00Comments on PRINCIPLEX: The Immorality of Fractional Reserve BankingUnknownnoreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5534600740192845222.post-23429045967618550532008-12-09T10:18:00.000-05:002008-12-09T10:18:00.000-05:00Fractional Reserve banking is not immoral in a fre...Fractional Reserve banking is not immoral in a free market. In fact, a bank must use fractional reserve banking to earn a profit.<BR/>What is immoral is the setting of the reserve by the government. Just as with building codes, it ensures that people must adopt the standard<BR/>the government sets or fail to be competitive. The government standard is arbitrary. Who decided that 5% is right? Why John Groverhttps://www.blogger.com/profile/09726986311367434500noreply@blogger.comtag:blogger.com,1999:blog-5534600740192845222.post-48934083903834515982008-12-09T09:39:00.000-05:002008-12-09T09:39:00.000-05:00I carried on a separate conversation with Elena C ...I carried on a separate conversation with Elena C since I was not persuaded that fractional reserve banking was by definition immoral but was a product of the way the banks and the government bypass the depositor and, in essence use his property for their permission without his consent, i.e., steal his property.<BR/><BR/>She made the point that if the bank has a specific agreement with a Principlexhttps://www.blogger.com/profile/15976696315627239104noreply@blogger.comtag:blogger.com,1999:blog-5534600740192845222.post-28745976508593808122008-12-06T23:36:00.000-05:002008-12-06T23:36:00.000-05:00Even if fractional reserve is implied in banking i...Even if fractional reserve is implied in banking it doesn't make it moral. You don't expect your coat to be let to somebody when you go to the theater hoping that by the time the show is over your coat will be returned or you'll have another one available. Fractional reserve causes inflation, causes boom-bust cycle and undermines capitalism. Whenever economy busts "capitalism" is blamed, althoughElena C.https://www.blogger.com/profile/02860780881746049030noreply@blogger.comtag:blogger.com,1999:blog-5534600740192845222.post-43259883748117701282008-12-01T10:55:00.000-05:002008-12-01T10:55:00.000-05:00I'm no economist either, but I don't think that th...I'm no economist either, but I don't think that the problem or moral issue is with fractional reserve banking.<BR/><BR/>I'd imagine that the problem has to do with government running the banks AND being in control of the coinage. The usual inefficiences of command and control organizations apply. Without the discipline of markets, government screws up the fractional reserve part of banking as Butler T. Reynoldshttps://www.blogger.com/profile/16915668463342314357noreply@blogger.comtag:blogger.com,1999:blog-5534600740192845222.post-2673422865115683442008-12-01T00:27:00.000-05:002008-12-01T00:27:00.000-05:00I don't consider fractional reserve banking immora...I don't consider fractional reserve banking immoral, because the bank isn't trying to deceive depositors into thinking that the deposits are fully reserved. The fractional reserve system is not a secret. The bank doesn't *explicitly* obtain your consent to use your money. The consent is implied.<BR/><BR/>Furthermore, "the original owner of the money" *does* have a check on the bank if he sees it Mark Cancellierihttps://www.blogger.com/profile/17970893548527505809noreply@blogger.com