Comments on: Inflation, the Gold Standard, and Fractional Reserve Banking http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/ Reality, Reason, Self, Consent, Capitalism Mon, 16 Jan 2012 08:26:03 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Paul McKeever http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/comment-page-1/#comment-223 Paul McKeever Sun, 18 Jan 2009 18:14:18 +0000 http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/#comment-223 Charles: Do a search on "playing card money" to see the sort of problem that develops. In effect, gold would physically move to places on earth where the economy is robust, and would flee areas that produced little of value. That would not be a problem provided (a) people could move to where the economy is robust, and (b) there were free trade, such that electronically-verified ownership of any amount of gold (i.e., no matter how much or how little) could be traded internationally without legal or military impediment. The problem - without free trade and immigration/emmigration - is for areas where things ARE being produced, but few/nobody outside of that geographic region are purchasing the things: the little, economically isolated communities would have no gold with which to trade. Charles: Do a search on “playing card money” to see the sort of problem that develops. In effect, gold would physically move to places on earth where the economy is robust, and would flee areas that produced little of value. That would not be a problem provided (a) people could move to where the economy is robust, and (b) there were free trade, such that electronically-verified ownership of any amount of gold (i.e., no matter how much or how little) could be traded internationally without legal or military impediment. The problem – without free trade and immigration/emmigration – is for areas where things ARE being produced, but few/nobody outside of that geographic region are purchasing the things: the little, economically isolated communities would have no gold with which to trade.

]]> By: Charles http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/comment-page-1/#comment-222 Charles Sun, 18 Jan 2009 09:15:48 +0000 http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/#comment-222 You write that you believe it would be impossible to use gold as standard money owing to limitations on immigration/emigration and trade. Could you explain this, please? If standard money were indeed gold, no bank could devalue it. Notes issued by that bank would not be able to claim they are redeemable for gold when they are not. So that would preclude both types of inflation at once. Am I right, or is there something I have overlooked? Thank you very much. You write that you believe it would be impossible to use gold as standard money owing to limitations on immigration/emigration and trade. Could you explain this, please?

If standard money were indeed gold, no bank could devalue it. Notes issued by that bank would not be able to claim they are redeemable for gold when they are not. So that would preclude both types of inflation at once. Am I right, or is there something I have overlooked? Thank you very much.

]]> By: Charles http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/comment-page-1/#comment-221 Charles Fri, 24 Oct 2008 12:31:59 +0000 http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/#comment-221 Your video series is just what I had been looking for: a logical, lucid explanation of the subject, which I had been having trouble understanding; it is invaluable. And you patiently answer questions, too. Thank you so much. Do you get any compensation besides satisfaction? Why not charge for your videos? Question #1: If the currency supply is fixed, and the reserve ratio is also fixed, then it seems to me that the total money supply remains constant, so how does inflation occur? Question #2: In Canada, you have informed us, there is no reserve requirement; that must mean that banks set their own. Do any banks choose zero? If governments allow less than 100% reserve banking, why do they insist on a reserve at all? Why not let me open a bank without taking deposits, and just issue my bank notes ad libidum? I’d sign up for that. Isn't that what the central bank does? Your video series is just what I had been looking for: a logical, lucid explanation of the subject, which I had been having trouble understanding; it is invaluable. And you patiently answer questions, too. Thank you so much. Do you get any compensation besides satisfaction? Why not charge for your videos?

Question #1: If the currency supply is fixed, and the reserve ratio is also fixed, then it seems to me that the total money supply remains constant, so how does inflation occur?

Question #2: In Canada, you have informed us, there is no reserve requirement; that must mean that banks set their own. Do any banks choose zero? If governments allow less than 100% reserve banking, why do they insist on a reserve at all? Why not let me open a bank without taking deposits, and just issue my bank notes ad libidum? I’d sign up for that. Isn’t that what the central bank does?

]]> By: Banking and Morality: 100% Reserve versus “Fractional” Reserves : Paul McKeever http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/comment-page-1/#comment-220 Banking and Morality: 100% Reserve versus “Fractional” Reserves : Paul McKeever Mon, 20 Oct 2008 12:33:13 +0000 http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/#comment-220 [...] written pieces (see here, here, and here, for examples) and in videos, I have advocated a 100% reserve requirement for [...] [...] written pieces (see here, here, and here, for examples) and in videos, I have advocated a 100% reserve requirement for [...]

]]> By: Paul McKeever on money, banking, and the Federal Reserve | Nathan Baker http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/comment-page-1/#comment-219 Paul McKeever on money, banking, and the Federal Reserve | Nathan Baker Sun, 12 Oct 2008 22:26:39 +0000 http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/#comment-219 [...] Here are some insightful videos by Paul McKeever in an article entitled “Inflation, the Gold Standard, and Fractional Reserve Banking.” [...] [...] Here are some insightful videos by Paul McKeever in an article entitled “Inflation, the Gold Standard, and Fractional Reserve Banking.” [...]

]]> By: Paul McKeever http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/comment-page-1/#comment-218 Paul McKeever Thu, 29 May 2008 12:33:59 +0000 http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/#comment-218 ERRATA - Apparently, I accidentally gave Ron Paul a raise in this video: from Congressman to Senator. Must have been the presidential nomination run that got me confused. Thanks to EdgeMugga for pointing it out. ERRATA – Apparently, I accidentally gave Ron Paul a raise in this video: from Congressman to Senator. Must have been the presidential nomination run that got me confused. Thanks to EdgeMugga for pointing it out.

]]> By: Paul McKeever http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/comment-page-1/#comment-217 Paul McKeever Thu, 29 May 2008 02:02:41 +0000 http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/#comment-217 Yes, sorry to have kept you (and everyone else) waiting so long. So many projects/responsibilities, so little time. Hopefully, people won't have to wait another 9 months for the next one...which, IF things continue to brew the way they're brewing, will be about the morality of inflation and credit expansion. Yes, sorry to have kept you (and everyone else) waiting so long. So many projects/responsibilities, so little time. Hopefully, people won’t have to wait another 9 months for the next one…which, IF things continue to brew the way they’re brewing, will be about the morality of inflation and credit expansion.

]]> By: Glenn http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/comment-page-1/#comment-216 Glenn Thu, 29 May 2008 01:10:53 +0000 http://blog.paulmckeever.ca/2008/05/28/inflation-the-gold-standard-and-fractional-reserve-banking/#comment-216 Excellent! I've been waiting a long time for that 5th part. Thanks. Excellent! I’ve been waiting a long time for that 5th part. Thanks.

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