Iceland Considering Abolition Of Fractional Reserve Banking

[Guest TheBlueCat]

I'm surprised this one hasn't been posted already:

http://www.telegraph.co.uk/finance/economics/11507810/Iceland-looks-at-ending-boom-and-bust-with-radical-money-plan.html

The full official publication is here:

http://www.documentcloud.org/documents/1698915-monetary-reform.html#document/p3

[madmax2]

will watch this one with interest (no pun intended)

[TheCountOfNowhere]

I'm surprised this one hasn't been posted already:

http://www.telegraph.co.uk/finance/economics/11507810/Iceland-looks-at-ending-boom-and-bust-with-radical-money-plan.html

The full official publication is here:

http://www.documentcloud.org/documents/1698915-monetary-reform.html#document/p3

I think we've all given up. it's got so preposterous now it's become pointless even speculating on the obvious bubble and forthcoming collapse.

[LiveAndLetBuy]

I wanted to pay a rare visit to see what people's thoughts were on this. To me it sounds like a way of formalising what we have anyway - state backed banks - so yes you might as well place the central bank in the way of banks lending to each other. I guess it might ring-fence them since only the central bank has exposure to a bank with bad debt, so it would allow banks to go bust without systematic melt-down. Retail banking would effectively be nationalised, with the job of dealing with customers outsourced to the banks:. Not ideal but better than what we've got?

[Guest UK Debt Slave]

Fascinating

Must read the report later this evening

[Killer Bunny]

I wanted to pay a rare visit to see what people's thoughts were on this. To me it sounds like a way of formalising what we have anyway - state backed banks - so yes you might as well place the central bank in the way of banks lending to each other. I guess it might ring-fence them since only the central bank has exposure to a bank with bad debt, so it would allow banks to go bust without systematic melt-down. Retail banking would effectively be nationalised, with the job of dealing with customers outsourced to the banks:. Not ideal but better than what we've got?

so we change decetralised lending to a politburo lending.

No don;t see how that's better than now

[little fish]

So the power to create money would be separate from the power to lend the money? Am I being too simplistic?

[Guest_northshore_*]

http://www.thestar.com/news/canada/2015/03/23/rocco-galati-in-court-to-challenge-how-bank-of-canada-does-business.html

[sPinwheel]

Excellent. For once the rich white man will have all the power.

[Sandwiches33]

OK so next story from the torygraph will be

Iceland now on axis of evil, pursuing WMD and threatening northern europe.

Or

The people who proposed this idea will unexpectedly commit suicide by shooting themselves repeatedly in the head.

This is usually what happens when someone suggests getting rid of a central bank.

[XswampyX]

Shot in the head 3 times, while hill walking.... in flip-flops with their hands tied behind their back, one week after winning the euro-millions and right after booking a 3 month, five star round the world cruise.

I think you'll find.

[Sandwiches33]

Shot in the head 3 times, while hill walking.... in flip-flops with their hands tied behind their back, one week after winning the euro-millions and right after booking a 3 month, five star round the world cruise.

I think you'll find.

LOL! I see you read the same stuff I do

seriously they expect us to believe you can commit suicide with nail gun.

http://www.zerohedge.com/news/2014-02-07/4th-financial-services-executive-found-dead-self-inflicted-nail-gun-wounds

Same as that madam who was supplying whores to the white house was found as a suicide despite hung, poisoned and two gunshot wounds to the head!

[XswampyX]

Same as that madam who was supplying whores to the white house was found as a suicide despite hung, poisoned and two gunshot wounds to the head!

It was just a tragic accident wasn't it. She drank toilet cleaner by mistake, thinking it was a 'loaf of bread', and then 'later' was playing a sex game, when her pimp came in and tried to shoot the rope to free her, but by accident, shot her twice in the forehead from close range, after reloading once, from the balcony next door?

It's easily done!

[interestrateripoff]

Iceland to be invaded again?

[zugzwang]

Unless something is done to regulate and constrain the activities of the shadow banking system then it's unlikely to make any difference. If anything, the outcome will be worse. The optimal growth of the money supply is an open question. Without market feedback from the commercial banks the central banks will be even more in the dark than they are at present.

[BLOW FLY]

Looks like Iceland will be having another volcanic eruption very soon......

BF

[kjw]

Unless something is done to regulate and constrain the activities of the shadow banking system then it's unlikely to make any difference. If anything, the outcome will be worse. The optimal growth of the money supply is an open question. Without market feedback from the commercial banks the central banks will be even more in the dark than they are at present.

Laurence Kotlikoff's Full Reserve Banking proposals are more wide ranging than others I've seen, cover not only shadow banking but also insurance. However, even his version is flawed in various ways and I personally remain unconvinced Full RB would improve anything, could even make it worse.

[FallingAwake]

That's nice. I hope Aldi and Lidl follow suit.

[The Spaniard]

Here's Bill Still's take on it:

A wider ranging documentary by Bill on monetary reform:

https://www.youtube.com/watch?v=7qIhDdST27g

[Roman Roady]

And here is another "Bill"...

time for the Icelandic President.