Here is a splendid look at the crime of fractional reserve banking which has contributed to the bitcoin debacle. It is simply not credible that Bitcoin is something brilliant or new or both. My guess was it was another intel fun-time thing. But the more I read it is following the trajectory of the pedestrian thinking on banking, the more I think it was just a dorm room "neato idea."
This article indicates the Bitcoin nation is a group of profoundly conventional thinkers. it has the problem defining money correctly, but otherwise it is instructive.
A deposit is how some people use their reserves. The do not expect anyone else to use it in another way. Free banking makes that shift in expectations, this gets back to the conflicting purposes of deposits of money.
Bitcoin is hailed as something new. Anything that emerges in a false economy should be viewed as another manifestation of that very false economy. People who did not get in on microsoft in the 1980s were consoled with beany babies, until that speculation too went bust. Bitcoins are beany babies for those not in the equities boom going on right now.
Feel free to forward this by email to three of your friends.
This article indicates the Bitcoin nation is a group of profoundly conventional thinkers. it has the problem defining money correctly, but otherwise it is instructive.
A deposit is how some people use their reserves. The do not expect anyone else to use it in another way. Free banking makes that shift in expectations, this gets back to the conflicting purposes of deposits of money.
It is admittedly true that the depositor will not miss his deposit much until he asks for it. But this does not mean that the bank is free to make use of it. After all, the depositor either wanted the good kept safe or he was unsure of when he would need it back. Since the depositor doesn’t even know when he will ask for its safe return what makes the bank so sure it can?Exactly.
Bitcoin is hailed as something new. Anything that emerges in a false economy should be viewed as another manifestation of that very false economy. People who did not get in on microsoft in the 1980s were consoled with beany babies, until that speculation too went bust. Bitcoins are beany babies for those not in the equities boom going on right now.
Feel free to forward this by email to three of your friends.
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