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(The Year 2012 In Review)
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|User Info||I Have To Vote For Beelzebub (Gary Johnson Economic Idiocy); entered at 2012-06-03 23:33:59|
Registered: 2011-02-27 Oakland, CA
First of all, it always amazes me on what premises RP is regularly declared unelectable, here and elsewhere.|
Second if I had to choose between fractional reserve lending or fiat currency, keeping FRL to throw out fiat wins easily for me.
What good is "One dollar of capital" is that dollar is backed by nothing?
Against this FRL is effectually a declaration "we will put up and keep in place laws/regulations so that the largest loss to a bank will remain less than the reserves." One can discuss how high those reserves need be, but always keep in mind to balance safety with allowing opportunities to still be searched for (by new entrepreneurs) with reasonable easy credit - otherwise you get a static society, not by bureaucracy but by total risk avoidance.