bricki

Gold Equities Should Reward the Patient

Banks shouldn't exist? Banks are clearly necessary for commerce. It just is not practical to make a physical payment in specie (be it gold based or not) for every financial transaction.

Once you have an account at a bank, the question is whether or not you should be paying the bank for the privilege or they should be paying you. If you don't accept the idea of fractional reserve you have to pay them. If you want some sort of return on the money you deposit along with free checking you are into fractional reserve banking.

Now we have an interesting question - why are there few or no banks that offer fee based banking services and 100% reserves?

Answer: because peeps want a return on their money. That is the only reason. There is no fundamental bar to a 100% reserve bank opening up and going into business. It's just that nobody would store their money there because instead of getting a return on that money they would have to pay a fee for that storage.

So full reserve banks are just another wingnut idea that has no practical value and will never happen because fractional reserve banks backed by a guarantee is much more economically attractive to people looking to store money.

On Nov 26 07:26 AM relmor wrote:

> I wish people would realize that banks shouldnt exist. IF every
> american were responsible and lived within their means, banks would
> have no function other than to charge us a small monthly fee to store
> our gold their(now toilet paper).

Gold Equities Should Reward the Patient

With markets in panic and flight to safety on everyone's mind I expect that this is the high water mark for gold for a long long time.