On 13 Apr 2001, at 6:29, Viking Coder wrote:
> I don't understand why it's a bad thing to allow a 100% backed currency to
> be used as the basis for a fractional reserve banking system.
Because you introduce a new risk. The unit of account of the new digital
currency system is then no longer backed 100% by an hard asset (gold) as
soon as you use credit instruments to increase your broad money base.
Claude
Claude
http://www.goldcurrencies.ca
http://www.ormetal.com
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Claude Cormier Public Key
http://www.ormetal.com/PGPkey.html
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