02-07-2009, 01:12 AM
thanks for that reply - some of which I think I followed !
Are we basically saying that banks are operating in the gold market in a not dis-similar way to fractional reserve banking where they don't actually hold enough physical "stuff" to repay on demand all those who could in theory require them to do so.
Are we basically saying that banks are operating in the gold market in a not dis-similar way to fractional reserve banking where they don't actually hold enough physical "stuff" to repay on demand all those who could in theory require them to do so.