I think that one of the biggest arguments against full reserve banking is that all you have to do is pay a premium to the account holder to delay their withdrawal for a given period of time, and to charge them a penalty for early withdrawal. This is known today as a certificate of deposit, among other things. There are also accounts that bear interest so long as the balance continues to stay above a set level. These are market based ways to insure that there is sufficient liquidity to cover day-to-day cash transaction needs while still allowing the issue of bank credit as some multiplicative of reserves. I suspect the leveraged ratio would be much, much lower than under the current government bailout regime, though.
Thanks for the heads up, NonE, I'm going to check out that group. But, to be honest, I am spending much, much more time online researching self-sufficiency and survival these days. I am trying to reduce my calorie intake and increase my physical health and endurance, and I am also trying to acquire the resources I need in the face of the coming depression, and store them safely and securely. I don't have as much time for economics anymore, especially since one can see that whatever we may come to understand about these matters, our leaders are determined to stay the current disastrous course, sendding us down with the ship while they hop in their platinum life raft and sail for Cheyenne Mountain.
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