So you think that we should switch to fee-based banking? Why would people want to put money in the bank? It would save them money to keep it under the mattress. Paying for the convenience of instant access to your money is reasonable, though.
But how would people borrow money? Or should they just save up in order to buy a home?
We should switch to full-reserve banking instead of fractional-reserve banking. Since banks will no longer be able to
create money, their services might involve housing funds for a fee, or brokering loans between entities.
People will still be able to buy a house with credit. Their borrowed funds will come from individuals or entities with actual funds, as opposed to borrowing from a bank that creates the funds out of thin air.
Overall, we will have a more stable money supply and economy.
In
some cases a non-fiat currency can have devastating effects.
You realize that's a joke, right?
Well it's not as much fun if you point it out.
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