The bank issues more units of fiduciary money than it has units of commodity money available for redemption, counting on the unlikelihood that the majority of its customers will ever seek redemption at one time.
Tag: fractional-reserve banking
Related Topics
“War”: The Constitutional Meaning
"War": The Constitutional MeaningConstitutionally speaking, "War" is a specific set of legal relations between two or more independent nations. Therefore no "War" can be...
“Left” vs. “Right” Phony Political Spectrum
"Left" vs. "Right"If WE THE PEOPLE revitalize "the Militia of the several States", we will cut across all the dividing lines in the phony...
“Judicial Supremacy” Through “Judicial Review”
"Judicial Supremacy": Nowhere to be found in the Constitution or Pre-constitutional HistoryPre-constitutional history provides no support for the sweeping contemporary claim that “the federal...
“The War on Terror”
"The War on Terror" Rogue officials stir up the "fear" of "terrorism". With "terrorism" as their excuse they arrogate new "war powers" to themselves....
“Living” Constitution
As a constitutional rule of construction that cannot be repeated to often, “If *** we are at liberty to give old words new meanings ***...