Sunday, December 27, 2015
Another positive
A small but important positive development this year is the mounting pressure toward real value. Iceland has already outlawed bank-level counterfeiting, and Switzerland is preparing a referendum on the subject. It was easy in Iceland because there are essentially zero counterfeiters. Probably won't be quite as easy in Switzerland.
The goal is to place all control of the money supply in the hands of the government. This obviously has flaws as well, but it's better than the current fractional-reserve crime.
When banks and speculators can create new fake "value" simply by making a loan, you're guaranteeing a pure bubble economy and discouraging real saving and investment.
When banks have to POSSESS THE FULL AMOUNT before making a loan, banks will have to bring in much more ACTUAL DEPOSITS. At some point they will find it necessary to invent the strange notion of paying savers an annual "rent" for their money. Sounds radical and weird and sci-fi, but it could happen. Maybe 30,000,000,000,000 years from now.
Later correction: Apparently Iceland hasn't yet adopted the "own what you loan" system. Still considering it, just as Switzerland is still considering it.
Labels: Asked and answered
¶ 3:11 AM
