Fractional Fractional Banking

[glocka]

One more US town (like Ithaca) embraces dollar alternative "to support locally owned businesses over national chains".
The exchange rate is fixed against US dollar, so all that is left - to introduce local fractional reserve banking, so that each loan issued by "your local friendly banks" in local currency would generate interest. This way any US town or state can get a piece of US dollar action by
1) defrauding other dollar holders all over the planet of a fraction of the value of their dollars each time a new loan is issued by diluting the dollar pool, but
2) keeping all the interest instead of forwarding part of it to shareholders of the Federal Reserve.
Wouldn't it be exactly what some countries are doing right now, just on a smaller scale?

Comments

[birdwatcher.livejournal.com]

Тогда конечно.