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RE: The Full Reserve Bank, The Alternative Asset Clearing and Settlement System Part 3

in #blog7 years ago

But don't we know the danger of full reserve system and moved away from it willingly and knowingly when the gold standard was removed back in 1971?

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It is a complex topic as the reason the standard was removed was to allow for governments more latitude in inflating the currency and of course a run on gold due to government overspending. A currency does not need to be backed by anything in order for a bank to not make loans and have debt. Just another model of banking that has the potential to be more stable.