Re: the panic of 1857

orangatang1@[EMAIL PROTECTED]
 wrote:
<snip>
> 
> That is, to employ a system of full reserve banking.
> 

I've never seen this explain how it would improve on
existing fiat systems for accommodating growth in GDP.

I have seen people talk about "separating credit from
money", which seems a wonderful, then an impossible
thing. I am not sure it's not simply a euphemism
for 100% reserve banking.

Aristotle believed that charging interest *itself* was
immoral, since money is but a medium of exchange. The
immorality was the reifying of an abstract thing into
something that was traded for its own sake. But I note
that the farther we get from Aristotle on this point,
the more prosperous we appear to be.

But our ability to produce would have confounded Aristotle.

--
Les Cargill