Originally Posted by
shikamaru
Bills are notices of debt.
Fractional banking is one thing. Reserve banking is something different.
Fractional banking leads to boom and bust cycles of the money supply (and economy).
Reserve banking is 1-to-1. A dollar doesn't go out that isn't linked to some security. Obviously reserve banking is more secure and stable than fractional reserve banking. I'm glad you mentioned reserve banking, thank-you. Reserve banking is soon to go into personal practice ....
Insurance is about risk or rather the transfer and spreading of risk from an individual to a pool of insureds.