Banks had much more power than they had today and actually had to compete for the trust of the people. The main reason the economy is so shit and our generation has no savings and employment is because of the federal reserve and the banking cartel that runs the USA.
>hurrr it failed in america Banking had been control by the government for hundreds of years in various ways. In fact many of these so called "panics" were caused by things like the government giving banks the right to print money out of thin air. wiki.mises.org/wiki/Panics
Nationalizing the banks is an even dumber idea. Why would you want banks to be a legit monopoly? Even if your glorious leader says "THEY'RE BANKS FOR THE PEOPLE".
She doesn't. She's the only one that argues properly for the kind of political systems that would allow free banking.
Jose Ramirez
>She's the only one that argues properly for the kind of political systems that would allow free banking. Many other people do.
Also nobody cares about "objective" morality, it doesn't make sense. Morals aren't "objective".
Carson Hall
Central banks arent so bad when they do what they were originally supposed to do, that is buy corporate paper when things were going down.
If you check the history f the US fed you'll see that it had various branches with different interest rates and it was ONLY allowed to buy corporate bonds, when those bonds were repaid the money would cease circulation hence the name "elastic money supply", that shit was brilliant.
Now they got hijacked by government to ONLY buy government debt plus all the branches that competed in terms of rates got merged into a single entity.
So there you have it, as always the problem is the all-corrupting effect of government.
Sebastian Parker
bump for Sup Forums to see rationality
Bentley Gutierrez
>Central banks arent so bad when they do what they were originally supposed to do They're totally bad. They're based on an economic FALLACY.
>that is buy corporate paper when things were going down. The government needs to get out of the way in these situations and let market forces correct the problem as they always do.
Zachary Ward
Yeah, let's just completely deregulate the financial system, what could go wrong? Central banking was invented for a reason.
Lincoln Sanders
>Yeah, let's just completely deregulate the financial system ABSOLUTELY
>Central banking was invented for a reason. Yes, to support corporate fascists like yourself.
You advocate for goldman sachs, fuck you.
James Flores
The fed has never even being a government entity, it was made by banks because of the bank run 1907. It was like 2000 all over again with the collapse of LTCM, the banks were going to fail and had to have JP Morgan bail them out, so eventually they made the fed.
Sure you can have a complete meltdown of an economy and the market will fix it in decades or you can have a lender of last resort that lends only to corporations that WILL have to pay their debts or be dismantled, now you cant even force government to payback so its just literal money printing.
Jace Nelson
>Also nobody cares about "objective" morality, it doesn't make sense. That's wrong, m8.
Dominic Morris
How? if morals aren't stone cold facts then they might as well not exist and we are right back to the degenerate shit hole we don't want to live in.
Oliver Wright
>Yes, to support corporate fascists like yourself. Completely unfounded assumption, how typically libertarian. In turn I could call you a Bernie Madoff shill, but what would be the point?
>You advocate for goldman sachs, fuck you. The fact that I support central banking doesn't mean I agree with how it's currently run. It's just a tool like any other.
Ryan Perry
>The fed has never even being a government entity, it was made by banks because of the bank run 1907. No shit. Banks through government create the problem in the first place then when the economy collapses they use the government to give them more power. wiki.mises.org/wiki/Panic_of_1907
>ure you can have a complete meltdown of an economy and the market will fix it in decades Try a few months. The recession of 1920 was over within a few months because the government did nothing. No idea why you think it would take decades.
> or you can have a lender of last resort Banks that lend beyond their means and use fractional reserve banking deserve to go bankrupt so banks that are more responsible will take over.
Anyway in my OP I posted academic studies showing how it worked quite well in Sweden for over 100 years.
>The fact that I support central banking doesn't mean I agree with how it's currently run. It's just a tool like any other. Yes, a tool for large banks and corrupt government officials. It fucks over the people and destroys their savings rate.
You are a fucking idiot, fractional reserve is just a means for using leverage, literally the only thing that allows growth without going into 40% interest rates.
The recession of 1920 was over because the sheer amount of capital flowing into the US at the time. Do yourself a favor and go read the greatest bull market in history, it shows in detail the 1910-1940 period.
The arguments are contained in the video, mr. molymeme.
Ethan Adams
>Banks that lend beyond their means and use fractional reserve banking deserve to go bankrupt The only way for a bank to lend is by using fractional reserve.
No fractional reserve=no lending, which means that it's not even a bank, just a warehouse to store money.
Fractional reserve banking is something apart form central banking, and it's a good thing.
Dylan Thompson
There is objective morality, but you need a third eye to see it.
Jordan Hernandez
>just a warehouse to store money.
Exactly, and this is how banks should work. You pay the service of money storage and protection.
If you want a loan, the bank should either loan you the money that it has saved by offering this storage/protection service and/or facilitate the transaction between you and other individual or entity that is willing to lend you money.
Fractional reserve, on the other hand, allows the bank, central or private, to fraudulently profit over money/savings that never existed in the first place, and it should be punished by law like any type of fraud.
Levi Gomez
>Fractional reserve, on the other hand, allows the bank, central or private, to fraudulently profit There is no fraud if all parties know what's going on and agree to it.
