Thursday, December 23, 2010

Dealing with Mises

From Polliet:
Now let us turn to fractional-reserve banking. It means that a bank lends out money that clients have deposited with it. Fractional-reserve banking thus leads to a situation in which two individuals are made owners of the same thing.
No, two people are betting about what and when ownership is transferred, the betting uncertainty will be 15%.

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