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View Poll Results: Is fractional reserve banking a necessity?

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  • Yes

    6 46.15%
  • No

    4 30.77%
  • I don't even know how to use wikipedia

    3 23.08%
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  1. #11
    Senior Member Veneti's Avatar
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    Quote Originally Posted by Electric View Post
    I just noticed that you were from England. England does keep it's cash way too appreciated for efficient trading to happen. The value of a currency in theory means nothing. Its the purchasing power that matters. I don't know much about England's economical system, so I can't say anything substantial. I do believe the federal reserve is bias.
    I think you need to learn something about economics.

  2. #12
    Member Electric's Avatar
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    Quote Originally Posted by Veneti View Post
    I think you need to learn something about economics.
    well of course there jobs are based on merits. I was just wondering if it was more difficult there to get better jobs. didn't mean to come out rash there.

    Quote Originally Posted by Veneti View Post
    The value of a currency in theory means nothing. Its the purchasing power that matters.
    Alright perhaps you're right in your own respect. However, to other nations like the US, appreciating the worth of the pound sterling is going to decrease purchasing power for them. This will decrease exports for Britain. For example, in the foreign exchange market. If you increase the pound sterling's worth from 1USD to 2USD, that effectively doubles the prices in supplies bought for the US. Would people buy a coke that costs 2 dollars?

    Currency Converter for 164 Currencies
    Right now 1 US Dollar = 0.50729 British Pound.


    Anyways, have banks thought about opening full reserve deposits and fractional reserve desposits together? It may "solve" some problems. However a fractional reserve deposit is an IOU(loan) from the bank which can generate income, while a full reserve deposit is not. They are merely keeping your money. You'd have to pay a fee for storage.

    Might as well keep your money under your bed.

  3. #13
    Order Now! pure_mercury's Avatar
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    Quote Originally Posted by Electric View Post
    Would people buy a coke that costs 2 dollars?
    They pay $4 for a Coke all the time, at the movie theater. And Cokes are usually about $2 at casual restaurants. It's contextual, i.e., whether or not people think the Coke is worth $2 at that time.
    Who wants to try a bottle of merc's "Extroversion Olive Oil?"

  4. #14
    Senior Member Lateralus's Avatar
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    Quote Originally Posted by Electric View Post
    Anyways, have banks thought about opening full reserve deposits and fractional reserve desposits together? It may "solve" some problems. However a fractional reserve deposit is an IOU(loan) from the bank which can generate income, while a full reserve deposit is not. They are merely keeping your money. You'd have to pay a fee for storage.

    Might as well keep your money under your bed.
    What's worse? To pay a fee for storage of your money, or to have you money devalued? It's one or the other. One you control, one you don't.
    "We grow up thinking that beliefs are something to be proud of, but they're really nothing but opinions one refuses to reconsider. Beliefs are easy. The stronger your beliefs are, the less open you are to growth and wisdom, because "strength of belief" is only the intensity with which you resist questioning yourself. As soon as you are proud of a belief, as soon as you think it adds something to who you are, then you've made it a part of your ego."

  5. #15
    Member Electric's Avatar
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    Quote Originally Posted by pure_mercury View Post
    They pay $4 for a Coke all the time, at the movie theater. And Cokes are usually about $2 at casual restaurants. It's contextual, i.e., whether or not people think the Coke is worth $2 at that time.
    Well what I was saying is. If you saw a coke that cost 1 dollar and another one for 2 dollars, which would you buy? You raise a good point though. Perhaps Veneti's angst against idiots is justified.

  6. #16
    Member Electric's Avatar
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    Dunno about that. India sounds cheaper and even China.

    EDIT: It's a scary thought thinking that England will try to take over the USA. If it happens, history will repeat itself. We are waiting for you redcoats at Saratoga.

  7. #17
    Senior Member Veneti's Avatar
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    Quote Originally Posted by pure_mercury View Post
    They pay $4 for a Coke all the time, at the movie theater. And Cokes are usually about $2 at casual restaurants. It's contextual, i.e., whether or not people think the Coke is worth $2 at that time.
    I can generally get a can of coke for about 45p which is 90c.

    The big difference though is in the cost of housing, we're way worse off.....

  8. #18
    DoubleplusUngoodNonperson
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    Quote Originally Posted by Electric View Post
    It's a scary thought thinking that England will try to take over the USA. If it happens, history will repeat itself. We are waiting for you redcoats at Saratoga.
    This is a very primitive way to think about economics and human exchange because it comes from outmoded protectionist instincts in human nature. There was a huge fear in the 80s during the peak of the auto wars that Japan was buying everything up and that eventually the Japanese would "own" the West Coast. This of course never happened and Japan's rate of growth eventually leveled off.

    and it seems Veneti likes to play on your fears here! Good show chap, but if a lowering US dollar was such hot shit for europe, why are government agencies taking pains to purchase US dollars to see it closer to a 1:1 exchange rate? With a weaker US dollar Europe exporters make a lot less overhead on shipments and sales. Yes, Europe and England have tons of places they can ship to, but no one is fatter than good 'ol US, and they don't want a thinning US dollar anymore than we do.

  9. #19
    Member Electric's Avatar
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    Quote Originally Posted by nozflubber View Post
    This is a very primitive way to think about economics and human exchange because it comes from outmoded protectionist instincts in human nature. There was a huge fear in the 80s during the peak of the auto wars that Japan was buying everything up and that eventually the Japanese would "own" the West Coast. This of course never happened and Japan's rate of growth eventually leveled off.

    and it seems Veneti likes to play on your fears here!
    Lol, I was playing along. US and England have a very interesting relationship. China is actually my biggest fear. The sleeping red dragon has awaken...and communism or socialism or whatever they call it will prevail.

    EDIT: Not really.

  10. #20
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    Quote Originally Posted by Veneti View Post
    Ps: We'll keep our redcoats tucked away for another day
    They make easy targets, we can wait.

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