Tuesday, January 10, 2017

Fractionbal teserve time banking is the problem

I stiulkl hear ci fusion, partly my faulty.  Time to completion is a  poorly priced speculation, and fixing payments over time dis-allows the pricing function.

Fractional reserve banking, without time, simply means loan and deposit yield payments are done asynchronously so that outstanding bit error does no go out of bounds, and that is why pricing works.

So, before complaining about asynchronous payment fractional reserve, the complainer must first explain his pricing theory.  Pricing and fractional reserve are a variable change from equivalence, they are the same thing, settling a trade.

The other item folks miss is understanding the standard A&L is a two color, there is no real profit motive in being the pit boss, it is not generally a three color trade.  There is no valid theory of central banking that includes government as the special third party, all the theories have no equilibrium.

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