If we can't look at history and learn from it, the same cons are reinvented over and over again. One thing for sure is that gold has always had intrinsic value. The fractional reserve system is nothing, but a giant Ponzi scheme having the same exact characteristics. #1) Willing dupes to start with. #2) an ever increasing supply of new dupes coming into the system, and #3) Keep changing the rules is helpful (Move the goal posts). One of the characteristics of a Ponzi scheme is that it must constantly keep growing (accelerate) in order from collapsing. As it grows, it accelerates its growth, ever increasing demands are required, and the frequency of demands accelerates until it becomes unmanageable. The system needs to become increasingly unfettered. This is where the FRS is today.
If we can't look at history and learn from it, the same cons are reinvented over and over again. One thing for sure is that gold has always had intrinsic value. The fractional reserve system is nothing, but a giant Ponzi scheme having the same exact characteristics. #1) Willing dupes to start with. #2) an ever increasing supply of new dupes coming into the system, and #3) Keep changing the rules is helpful (Move the goal posts). One of the characteristics of a Ponzi scheme is that it must constantly keep growing (accelerate) in order from collapsing. As it grows, it accelerates its growth, ever increasing demands are required, and the frequency of demands accelerates until it becomes unmanageable. The system needs to become increasingly unfettered. This is where the FRS is today.