Sublime

When the banks reopened Monday, reassured depositors returned much of the money they had withdrawn. Not only was there no run on the banks, but the Federal Reserve reported that deposits exceeded withdrawals by more than two to one despite the cash-starved existence most had led the past week.

He ordered fractional reserves increased in a program that called for one hundred per cent reserves at the end of three years.

the Federal Reserve issued up to 2½-times more receipts than gold

A related doctrine known as Goodhart’s law, after the London School of Economics professor who proposed it,38 holds that once policy makers begin to target a particular variable, it may begin to lose its value as an economic indicator. For instance, if the government artificially takes steps to inflate housing prices, they might…

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fiat money even really is: It is a fungible pan-bank liability.

The constantly increasing supply means a continuous devaluation of the currency, expropriating the wealth of the holders to benefit those who print the currency, and those who receive it earliest.