Money: A Semi Pictorial Fable

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Sat, 10/17/2009 - 15:33 | 102150 SWRichmond
SWRichmond's picture

I have no problem with fractional reserve banking. The only problem with it is management.

Is that you, Karl?  The system would work fine except that imperfect, corruptible humans need to run it?

Did you even read what you just wrote?

Sat, 10/17/2009 - 20:09 | 102339 Anonymous
Anonymous's picture

I did read it - I wrote it!
I know people are corruptible. But I've worked in business long enough to know that things that can be done are worth doing right.

I've done my job for the last 25 years in a fashion that is nothing less than honest and sincere.

If I were managing an FRB situation, then I'd stick to the guidelines that keep it healthy.

On another note, reading Cheeky Monkey's post below, I have read alot about Islamic Banking and I think it's completely legit - probably worth looking into. It incorporates some degree of FRB, but resolves the issue of moral hazard by making everyone own a share of the business - it eliminates "interest" and charges something akin to "rent".

Point is, FRB can work but it requires oversight. We have had none or little. Most importantly, I think, are de Tocqueville's words that the US will remain free until the polticians learn they can bribe the public with their own money....

Sat, 10/17/2009 - 23:49 | 102473 Cheeky Bastard
Cheeky Bastard's picture

i mean really; WTF did i do to you; if you don't agree, argument you disagreement; but don't call me a monkey. and the problem is not you, it is the system you support with your honest labor.and Islamic banking is the way to go, when done properly;and for the demonstration of my thesis, i point you to study the banking sector of Qatar and it's subsequent influence on the Qatar economy.

Sat, 10/17/2009 - 16:04 | 102185 Cheeky Bastard
Cheeky Bastard's picture

believe it or not; but this is the answer to all the banking problems the West has at this moment and will have if it does not changes the way it perceives money and the economy in general. I picked this up from the post about Iran and it makes a hell of a sense.

Excerpt: Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Islamic law (Sharia) and its practical application through the development of Islamic economics. Sharia prohibits the payment or acceptance of interest fees for the lending and accepting of money respectively, (Ribausury) for specific terms, as well as investing in businesses that provide goods or services considered contrary to its principles (Haraam, forbidden).

Sun, 10/18/2009 - 05:10 | 102546 Anonymous
Sun, 10/18/2009 - 05:01 | 102545 Anonymous
Anonymous's picture

Cheeky- Do you know what the axis of evil has in common? They all have refused a private central bank, no joke. Although I don't think too highly of countries like North Korea I find it interesting that they haven't signed on to the global system of private banking. When asked why they ceded control of the Japanese bank, the last Finance Minister of Japan said they were threatened with "another earthquake" if they had not agreed to a private central bank. Angels don't play that HAARP.

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