(That didn't need solving, only properly using.)
This report imagines going from "fractional fiat" to100% reserve fiat?
Doh!
That's what you get when you hire a British Bankster to report on YOUR fiat currency system.
Repeat after me.
There is no "fractional reserve" in a fiat currency system.
Only on an archaic gold-std currency system. For Pete's sake! What does "fractional fiat" even mean? Arbitrarily keeping some Public Initiative in reserve? Why? For what?
A "fiat" currency system is SUPPOSED to automatically denominate any & every transaction that is both desired-AND-allowed (by public feedback). Adding cash hoards in various places doesn't solve the need for increasingly distributed feedback within growing, national economies.
The solution is to REGULATE and oversee all credit underwriters, public & private ... and NOT to restrict the access to denomination numbers. That way the "currency supply" is always what it's supposed to be, neither too large nor too small ... and both inflation & appreciation become trivial, archaic metrics coincidental to sustainable systemic development. Rather like Cubits. Or released "demonic airs" once said to possess the ill.
Currency supply or liquidity logic is similar to the logic of a blood circulatory system. We don't regulate personal + group behavior by squeezing the oxygen supply in the air (good luck with that). Similarly, banks can't Centrally Plan currency supply - and they admitted so back ~1933, on account of abject failure. Quit beating our aggregate heads on that discredited idea. Instead, since ~1933 we've been fitfully practicing distributed regulation of our net & local goals, activities, methods, tactics & tools ... plus a host of local/aggregate tricks ... to utilize, on demand, as much of an inexhaustible metric as is PRACTICALLY needed.
If this is hard to follow, please read this little bedtime story.
Then please read about Marriner Eccles, Abba Lerner, William Vickrey, Warren Mosler, Abe Lincoln, Benjamin Franklin and John Law. And about the fact that "Success follows the quality (including tempo) of DISTRIBUTED decision-making."
A currency system involves drop dead simple operations. It takes ideology (and lots of self-deceiving fraud) to make it seem complicated.
There are other issues with "Lord" Turner's claims, but there's no use beating a dead horse. It just distracts people from the fact that it was dead on arrival.
ps: You can't even comment at the Icelandic Review without capitulating to use of the Narcissist's Network. How's that for democracy?
ps: ps: Will someone who's already a narcissist please post this commentary at Icelandic Review? Thanks.
