AC and fractional reserve banking

[Exsubmariner]

Hello Gentlemen (and I use that word loosely),
In my readings about money and banking recently, something dawned on me. If you know the history or the Rothschilds who began as goldsmiths and the other major banking families, you know that they began the practice of fractional reserve banking in the 1600's. This was long before international laws or anything resembling the political landscape of the world as we know it today.

Now lets imagine for a moment that ***Poof*** we are suddenly living in an AC wonderland. What stops a goldsmith or a banker from the same practices of fractional reserve banking or currency manipulations that put the FED in control of the US economy? I say nothing. In fact, I say less than nothing. Why? Because most people don't understand money as it is, so what makes it likely that they will understand to collectively prevent the banks from this practice in AC land?

AC land, in a very short time, would be completely governed by bankers and currency manipulators.

What about AC that wasn't present in the 1600's in Europe stops this from happening?

Go.

[Dan.]

Everyone in AC land instantly has the same education and understanding as the handful of posters here who promote it.

On a serious note, obviously nothing prevents it, but I'm sure ACists will say it's fine for them to be dominated by some force since it arose from the free market, and so the market decided that they should be dominated.

[TomCollins]

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What stops a goldsmith or a banker from the same practices of fractional reserve banking or currency manipulations that put the FED in control of the US economy?

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People have the choice to put their services in such businesses. Those who do it without consent can be sued for fraud.

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Because most people don't understand money as it is, so what makes it likely that they will understand to collectively prevent the banks from this practice in AC land?


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Good thing we have people like iron to save us from our own stupidity.

[pvn]

[ QUOTE ]
Hello Gentlemen (and I use that word loosely),
In my readings about money and banking recently, something dawned on me. If you know the history or the Rothschilds who began as goldsmiths and the other major banking families, you know that they began the practice of fractional reserve banking in the 1600's. This was long before international laws or anything resembling the political landscape of the world as we know it today.

Now lets imagine for a moment that ***Poof*** we are suddenly living in an AC wonderland. What stops a goldsmith or a banker from the same practices of fractional reserve banking or currency manipulations that put the FED in control of the US economy? I say nothing. In fact, I say less than nothing. Why? Because most people don't understand money as it is, so what makes it likely that they will understand to collectively prevent the banks from this practice in AC land?

AC land, in a very short time, would be completely governed by bankers and currency manipulators.

What about AC that wasn't present in the 1600's in Europe stops this from happening?

Go.

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Well, YOU managed to figure it out, didn't you???

[Exsubmariner]

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People have the choice to put their services in such businesses. Those who do it without consent can be sued for fraud.


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In our case, we have no choice over what money to use. Something tells me that in ACland, there wouldn't be a choice either.

[Exsubmariner]

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Well, YOU managed to figure it out, didn't you???


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I may be able to correct my ignorance through educating myself, but you'll always be cheap.

[BCPVP]

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In our case, we have no choice over what money to use. Something tells me that in ACland, there wouldn't be a choice either.

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Perhaps (and that's giving a lot of leeway with the word 'choice'), but the reasons would be very different.

[tomdemaine]

So it's another issue where the worst case AC scenario is the current status quo.

[bluesbassman]

Good point.

Here is another example:

Suppose a company started an online poker site. Since the legality of online "gambling" is uncertain in the U.S. and perhaps elsewhere, suppose that company based it's operations in some small island nation accessible to everyone via the internet. Therefore, anyone who deposited money at the site would have absolutely no legal recourse from his home country should his funds be stolen by the site.

Now let us imagine for a moment that ***Poof*** we are suddenly living in this anarchistic online poker wonderland. What is to stop the site from rigging the random number generator (RNG), planting shills or bots, or otherwise manipulating the game to cheat the helpless, addicted players? Or from not keeping 100% of the players' funds as reserve in a secure account? I say nothing. In fact, I say less than nothing since most people don't know too much about RNGs, internet encryption, and foreign banks, etc.

Online poker wonderland, free from government control, in very short time would be completely dominated by disreputable, cheating sites.

Uh... right? [img]/images/graemlins/wink.gif[/img]

[Brainwalter]

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[ QUOTE ]
People have the choice to put their services in such businesses. Those who do it without consent can be sued for fraud.


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In our case, we have no choice over what money to use. Something tells me that in ACland, there wouldn't be a choice either.

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How do you figure? The Fed's monopoly is created by monetary nationalization and enforced by Secret Service and military might. Are you saying those could exist without a strong Federal government?