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1724Re: [LandCafe] land price with full land tax -

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  • Fred Foldvary
    Nov 14, 2006
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      Mark Monson wrote:
      >>> we need a law that voids all private
      >>> land debts so people won't be stuck
      >>> paying twice

      Fred Foldvary wrote:
      >> Does that not steal from the lender?

      > No. Bankers are not the producers of wealth that is
      > lent. Nearly all of these funds are concocted
      > through fractional reserve banking.

      Yes, banks use fractional reserves, but much of the
      loaning comes from savings, people depositing their
      savings in bank accounts. If the loans are voided,
      the banks will not be able to cash out savers who want
      to withdraw their funds.

      > Destroying land's value and land's debt will destroy
      > bubble money and very little earned savings.

      Do you have data on such savings?

      > The greater crime is to allow creditors to
      > receive this unearned flow of labor that rightfully
      > belongs to producers.

      Wages are not wiped out when banks loan out funds.
      If the central bank creates new money, and these funds
      are loaned out, the gains will go to the savers if the
      banking system is competitive, as banks seek to
      attract savings by offering higher interest or better
      services than competitors, until the banks only make
      normal profits.
      Banks are intermediaries, collecting savings and
      lending them to borrowers. They get paid for being
      brokers, and the remaining gains go to savers.

      What steals wages is
      1) taxes on wages,
      2) the lowering of wages by the movement of the margin
      of production to less productive locations due to land
      speculation,
      3) price inflation greater than wage increases.

      Wages deposited into bank accounts earn interest,
      which then increases the wealth of the worker.
      So long as it is done honestly, with full disclosure,
      fractional reserve banking does no harm to the
      economy.
      The real money problem is central banking and the
      governmental money monopoly.

      Free-market fractional reserve banking would help the
      economy by supplying currency in accord with its
      demand by the public.

      Fred Foldvary
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