Bitcoin Forum
September 28, 2016, 11:58:50 AM *
News: Due to DDoS attacks, there may be periodic downtime.
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Bank of England Head Mervyn King Proposes Eliminating Fractional Reserve Banking  (Read 1836 times)
Anonymous
Guest

November 01, 2010, 12:56:18 PM
 #1

http://www.zerohedge.com/article/bank-england-head-mervyn-king-proposes-eliminating-fractional-reserve-banking

Quote
Ironically, while King is proposing the potential elimination of fractional reserve banking (i.e. a return to 100% reserves), Ben Bernanke has proposed the elimination of all reserve requirements (i.e. requiring no reserves):

        The Federal Reserve believes it is possible that, ultimately, its operating framework will allow the elimination of minimum reserve requirements, which impose costs and distortions on the banking system.



Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1475063930
Hero Member
*
Offline Offline

Posts: 1475063930

View Profile Personal Message (Offline)

Ignore
1475063930
Reply with quote  #2

1475063930
Report to moderator
grondilu
Legendary
*
Offline Offline

Activity: 1134


View Profile
November 01, 2010, 05:25:17 PM
 #2

The Federal Reserve believes it is possible that, ultimately, its operating framework will allow the elimination of minimum reserve requirements, which impose costs and distortions on the banking system.
[/quote]

Yeah it's true. Why bother about requiring some reserves, hum ?

I actually agree :  let's abandon all this crap.  Then the federal reserve will have no reason to exist, and we'll go to a free banking industry.  Everybody will have the right to be his own bank :  and in this scheme, I'm sure bitcoin will be the best money ever.
hugolp
Hero Member
*****
Offline Offline

Activity: 742



View Profile
November 01, 2010, 05:43:17 PM
 #3

Yeah it's true. Why bother about requiring some reserves, hum ?

I actually agree :  let's abandon all this crap.  Then the federal reserve will have no reason to exist, and we'll go to a free banking industry.  Everybody will have the right to be his own bank :  and in this scheme, I'm sure bitcoin will be the best money ever.


The problem is that what Bernanke is proposing is nowhere near free banking. Its more like lets get away with the small and inefficient check and ballances that exists right now to keep credit expansion in check. I mean, they dont work, the bubbles show it, but at least they make the process somehow slower.

Btw, this could be moved to the economics subforum, dont you think?
ribuck
Donator
Legendary
*
Offline Offline

Activity: 826


View Profile
November 01, 2010, 10:24:58 PM
 #4

The linked article clearly says that "King does not advocate any of these radical plans".

So although Mervyn King is discussing the abolition of fractional reserve banking, it's only as a straw man to be knocked down.
em3rgentOrdr
Sr. Member
****
Offline Offline

Activity: 434


youtube.com/ericfontainejazz now accepts bitcoin


View Profile WWW
January 13, 2011, 04:38:44 PM
 #5

Quote
       The Federal Reserve believes it is possible that, ultimately, its operating framework will allow the elimination of minimum reserve requirements, which impose costs and distortions on the banking system.

How do they impose distortions?

"We will not find a solution to political problems in cryptography, but we can win a major battle in the arms race and gain a new territory of freedom for several years.

Governments are good at cutting off the heads of a centrally controlled networks, but pure P2P networks are holding their own."
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!