GenSeneca
Well-Known Member
A 100% reserve would mean that the bank has to keep all of the money I and all my neighbors have in CD.
This was your "definition" of a 100% reserve system and it didn't come from me. When speaking about full reserve, there is a big difference between deposits and investments yet you do not seem to appreciate this difference.
Yes, the bank needs to have 100% of your deposits on hand, or easily obtained... in this regard, a deposit is like the contents of your safe deposit box, only you have access to it.
An investment, such as a CD, is not the same thing. You are agreeing to have your money unavailable, and otherwise used, in hopes of gaining interest on your principle.
Your description of full reserve banking is not, in fact, full reserve banking.
Did you not also claim my description of Laissez Faire Capitalism is not, in fact, Laissez Faire Capitalism?