There’s An Obvious Answer To Fractional Reserve Banking – It’s A Useful Fraud

It’s entirely true that fractional reserve banking is a fraud, a Ponzi, it’s simply outrageous how credit, or wide money, is created. Murray Rothbard was entirely correct:

In The Mystery of Banking (1983), the anarcho-capitalist economist Murray Rothbard called fractional reserve banking “a shell game, a Ponzi scheme, a fraud in which fake warehouse receipts are issued and circulate as equivalent to the cash supposedly represented by the receipts.”

Nowt wrong with that statement.

That is not, however, the end of it.…

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