Market Anarchy

ourben:

baseballlibertarian:

Theft is theft. Fraud is fraud. I don’t understand how anyone would be okay with it? Under your theory I should be able to steal from my employer at any point just as long as I pay it back before anyone notices. Since theft is only theft if you’re caught? Is that what you’re saying?

Money is promissory. Do you know what that means? It means when you give somebody some cash you’re giving them a certificate, a contract, a promise, an IOU… a credit note. Even if you make the money out of gold, it’s still a promise, the seller still trusts he can exchange the gold for something he actually wants. It’s not fraud and it’s not theft. You’re trying to have 600 arguments at once and you don’t understand a single one of them.

Any bank that lends out more money than it holds is insolvent. It is as simple as that. Banks liabilities, their depositors, are always due unlike most liabilities that have to be paid a set date.

No it’s not as simple as that you dumbass. For one, banks don’t really lend more than they hold. They create contracts with borrower, so they hold futures in the borrower. What don’t you understand? This isn’t a matter for debate. The fact is, simply, that you are absolutely wrong.

If banks want to lend out money that isn’t theirs they can offer slightly higher interest accounts that can’t be redeemed for a certain number of years. Use that money to lend out, in the hopes that they collect a profit by the time the account is due. That’s how banking should be. 

Sorry libertarian, but you don’t get to decide how banking should be, however hilarious dangerous and exciting it would be to let that happen.

Explain to me why bank runs, before being propped up by a central inflationary bank and/or the government, bankrupted them?  Since, in your head, banks don’t lend out the depositors money. 

(Source: a-petro-manifesto)