Opinion from a Libertarian ViewPoint

Posts Tagged ‘0% interest’

NO RESERVE REQUIREMENT: The Fed will replace fractional reserve banking with NO RESERVE BANKING and 0% interest rates. Thousands of banks now free to create limitless amounts of loans without any reserves.

Posted by M. C. on August 15, 2021

Oops, missed this one from a year and a half ago.

Banks can lend out all savings holding nothing in reserve to fund withdrawals. If your bank goes belly up, can there be a bank run if there is nothing to run with?

Historically, banks are required to keep 10% of their loaned-out capital in reserves. However, the Fed just took an extraordinary step of reducing that to 0%.

Banks no longer to keep any assets in reserve. This will turn a house of cards into a gargantuan palace of cards.

See the rest here

Be seeing you

Posted in Uncategorized | Tagged: , , , | Leave a Comment »