Quote Originally Posted by Seosaidh View Post
What profit or gain is there associated with receiving lawful money in exchange for my time or property (not from business)? Since I'm not receiving private credit, but rather lawful money, it's a 1:1 transaction, no profit or gain, therefore not income.

Or am I thinking this through too simplisticly?
Balanced scales! Of course! a 1:1 transfer of energy! That is and excellent way to think of it.

Now, apply the 1:9 ratio of fractional reserves (or 0:9 ratio allowed now) and you will see why elastic currency is an abomination and impossible to maintain.

Demanding lawful money makes your deposits non reserve currency and they cannot be fractionally reserved for lending, thus creating new debt with every single dollar on deposit.