In which I channel Tim Worstall

January 20, 2011

What do the New Economics Foundation and noted libertarian MP Douglas Carswell have in common?

They both want to end the system of fractional reserve banking we use to ensure there’s enough liquidity in the economy to slosh into any investment opportunities that open up.

“…we simply require that banks keep safe the money which customers wish to keep safe, and invest only the money that customers wish to invest.”

Someone should perhaps tell NEF that they already do that; that’s why safety deposit boxes exist. Of course, you have to pay to use them, but why should someone look after your money for free?

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One Response to “In which I channel Tim Worstall”

  1. Will the government accept as payment of taxes anything that people would keep in safety deposit boxes other than cash?

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