Responses (1)
Economics and politics are intimately connected, but they are not at all the same thing. In politics, words can mean anything or nothing. Anything is true if you just keep saying it, and nothing is true if you can't be forced to admit it. No banker will ever admit that there is a run on the money, no matter what happens.
You need to understand that reserve banking is inherently dishonest. A bank does not have to have money to make a loan. The note that you sign is money. Then you have to repay the loan with actual money, which means the amount of money is increased by that amount. That amount must be created, so the business of reserve banking is totally based on counterfeiting, but it is politely called inflation, and everybody pretends they have no clue about where it comes from.
Throughout history, the use of unbacked paper money has always led to a collapse within forty years. The USA is now in the 46th year since Nixon abolished gold backing for the USD in 1971, and the country is in the tenth year of a slow noisy collapse, counting from the double top in S&P500 in fall 2007. The central bankers are doing every trick they know to pretend it didn't happen.
There is no honest money anywhere in the world.