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RE: What is Fractional Reserve Banking, and is it Fraud?

in #bitcoin7 years ago

Wow, I was just sitting down to write this post. You have done a much better job than I would have. I would like to add that prior to 1973 The dollar was still backed by gold. Nixon took us off the gold standard when the federal reserve started printing more dollars, than there was gold toback it up. The purchasing power of the dollar is about 4% today compared to 1917.

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You're completely right. Prior to 1973, you could walk into a reserve with a dollar and come out with a dollar's worth of gold. Due to inflation these days, the dollar is worth much less than before, as you pointed out.

Thanks for your comments!