tag:blogger.com,1999:blog-11906042.post3457247262769345856..comments2024-03-22T11:55:50.335+13:00Comments on Not PC: How Inflation Helps Keep the Rich Up and the Poor DownPeter Cresswellhttp://www.blogger.com/profile/10699845031503699181noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-11906042.post-86160870462575592472014-06-05T16:36:28.456+12:002014-06-05T16:36:28.456+12:00Hi Dale: You and I disagree on this. I will write ...Hi Dale: You and I disagree on this. I will write more when I have time.Peter Cresswellhttps://www.blogger.com/profile/10699845031503699181noreply@blogger.comtag:blogger.com,1999:blog-11906042.post-53333896936058416512014-06-05T04:46:04.953+12:002014-06-05T04:46:04.953+12:00This article is confusing central banking and lega...This article is confusing central banking and legal tender laws with fractional reserve banking. Fractional reserve banking is a free market innovation and is the business or securitizing assets. In this sense it is essentially issuing securities (bonds) against assets such as land. So fractional reserve banking does not create money out of thin air and it does not cause inflation. Eliminating fractional reserve banking would be a disaster economically. <br />Central banks are tasked with controlling the money supply and do create money out of thin air. But governments can create inflation (counterfeit money) without a central bank, but they do require legal tender laws. The author is just wrong that paper money cannot exist without legal tender laws. Paper money existed for over a hundred years in the US that was not backed by legal tender laws. The first paper money was not created by governments but by banks (not central banks).<br /><br />For more information on the differences between Central Banks, Legal Tender Laws, and Fractional Reserve Banking see http://hallingblog.com/understanding-the-coming-financial-collapse-central-banking-fraction-reserve-banking-and-legal-tender-laws/<br />Dale B. Hallinghttp://www.hallingblog.comnoreply@blogger.com