Protect against the Bail-In; Redeem Lawful Money

[David Merrill]

I agree that it is silly to rely on a legal argument but this video makes one at about the 5:00 Minute Mark. My point is that one should understand that when you make your demand to the Fed or the bank (best to both) your deposits are special and not longer regular deposits. Your agreement with the FDIC, Fed and your local bank is different than the presumption in the video:

[allodial]

From a perspective of social prosperity, the FDIC makes little sense. That is, what is the true basis behind the idea of licensing a corporation (already offering limited liability on the State's tab) to take, say, $500,00 and be able to close up shop and run and dump the loss on the same people that were robbed. Are U.S. banks typically given (A) license and encouragement to plunder a society vs (B) license and encouragement to prosper a society?

Underneath it seems that someone's fancy idea was that no one would want to be in the banking business unless they could gouge eyeballs and such blood out of skulls with impunity--i.e. greed would be the only motivator? What's wrong with collecting service fees only? If I take a taxi on a 10 mile trip to a business meeting that brings me $10M/week--does the taxi company get a 15% commission? Why should a bank get any large commission simply for providing glorified security, secretarial and accounting services? Keep in mind the taxi driver provided security in some sense too!

[David Merrill]

From a perspective of social prosperity, the FDIC makes little sense. That is, what is the true basis behind the idea of licensing a corporation (already offering limited liability on the State's tab) to take, say, $500,00 and be able to close up shop and run and dump the loss on the same people that were robbed. Are U.S. banks typically given (A) license and encouragement to plunder a society vs (B) license and encouragement to prosper a society?

Underneath it seems that someone's fancy idea was that no one would want to be in the banking business unless they could gouge eyeballs and such blood out of skulls with impunity--i.e. greed would be the only motivator? What's wrong with collecting service fees only? If I take a taxi on a 10 mile trip to a business meeting that brings me $10M/week--does the taxi company get a 15% commission? Why should a bank get any large commission simply for providing glorified security, secretarial and accounting services? Keep in mind the taxi driver provided security in some sense too!

I think it may be as simple as the price for being involved in criminal syndicalism called fractional lending.