1724Re: [LandCafe] land price with full land tax -
- Nov 14, 2006Mark Monson wrote:
>>> we need a law that voids all privateFred Foldvary wrote:
>>> land debts so people won't be stuck
>>> paying twice
>> Does that not steal from the lender?Yes, banks use fractional reserves, but much of the
> No. Bankers are not the producers of wealth that is
> lent. Nearly all of these funds are concocted
> through fractional reserve banking.
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 destroyDo you have data on such savings?
> bubble money and very little earned savings.
> The greater crime is to allow creditors toWages are not wiped out when banks loan out funds.
> receive this unearned flow of labor that rightfully
> belongs to producers.
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
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
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
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.
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