WAY BACK, WE MENTIONED http:www.transaction.net
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Long before the current crisis, a group of us, who make no claim to being professional economists, here have been saying in this and other forums:
The current debt-based and fiat monetary system, created by the central banks, is the basic cause of the false booms and devastating busts. So we ask: When are we going to learn?We challenge any readers who are trained in economics to refute the above and please check out the following:
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Confidence Is Leaving the Fiat Money System
Daily Article by Thorsten Polleit | Posted on 10/10/2008 12:00:00 AM
Were it not for ever-greater increases in central-bank money and the market expectation that governments are about to make taxpayers shoulder commercial banks' huge losses, the fiat money systems would presumably collapse right away....
THE CENTRAL CULPRIT IS FRACTIONAL-RESERVE BANKING
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Under fractional-reserve banking, banks keep just a fraction of their immediate payment obligations (basically sight deposits) in the form of cash. As a consequence, they cannot meet all their payment obligations should customers wish to withdraw their sight deposits all at once.
