- May 24, 2017
As I mentioned previously, I can understand negative feelings about fractional reserve (FRB) as I harbored those for a long time. However I realized a couple years ago that that system has been a very progressive influence in society and creating expansion of opportunity. The very positive aspect of FRB is in creating and managing a workable credit system. The problem has been with who has been in control of FRB along with the high cost of how its has been applied and who has benefited.Initially it has been used to give power to the rich or money powers and secondly to politicians at the expense of the general population. So the gateway to FRB has been through the rich but we can completely change that and that is the purpose of the two banks. I will suggest that you read the accompanying whitepaper if you have not done so.Using the fractional reserve system of the legacy banking industry seems antithetical to what crypto in general, and Dash in particular are trying to achieve. It's using leverage and debt to spend more money up front than we would otherwise be able to do. We literally have more money in the Treasury than we know what to do with right now, and it looks like the Dev team and the Masternodes are struggling heroically to grow and expand in a sensible and efficient manner. Suddenly having another 12 million debt backed dollars to throw at the world would only exacerbate that problem.
Plus, the ability to do this in a way that prevents the possibility of abuse seem problematic in the extreme.
I would have to vote no with my two MN's.
Using precious metals as a currency placed a lot of burdens on the people whereby an amount of capital needed to be amassed equal to the project that as yet had not been accomplished. Precious metals by definition are a limited asset where as the overall potential of someone to create is wide open. The movement to a credit based money supply gave the opportunity to many people to access their creativity once they had something to show more than wishful thinking. It relieved the burden of needing to amass a difficult to attain supply of capital in order to initiate one's project. That is why FRB has produced a previously unmatched development in the private sector that has lifted the overall standard of living to new heights.
As noted above the dark side, and yes there is a definite dark side associated with FRB, came from those who have had the most control over the system, not the system itself. The first formalization of FRB in 1694 was with the privately created Bank of England for the purpose of financing war and the unwarranted further enrichment of the already wealthy. That type of arrangement has been continuing to this day.
There is an old expression that says it takes a thorn to remove a thorn. We can use FRB to create peace just as well and the world sorely needs that type of development as rapidly as is possible. That is the full purpose of creating the two banks. The overall middle class has amassed a previously unmatched amount of capital. However that capital which is equal to at least $20 trillion in the U.S. alone is currently idle. It is the project of the banks to awaken that capital to be used for bringing peaceful development and abundance to the world.
I do not believe that FRB will be important in the future. As every community is educated in the true wealth that it has FRB will become unnecessary. However we are currently in something of an emergency situation to move out of a war based economy as rapidly as possible. And we still need to develop a currency that reflects overall economic development of all positive aspects needed by communities.