Re: Fatal Flaw in Logic of the Crash Course?
What about maintenance, Patrick? To maintain a gold reserve or to mint the gold, the banks have to spend money on a regular basis. Add to that the administration costs for all the bank accounts. A gold standard means losses, were the current debt standard means profits. Maybe if all money was stamp scrip, allowing banks to profit from stamp sales, such a system could work. But otherwise I think a full reserve banking system on a gold standard means no banking system at all. Is that the idea? Even if it works, why wouldn’t the lure of interest pull us right back where we are on a more profitable debt standard, just as it has done before?