The thing is, I'm okay on some level with almost any banking or financial trick every conceived. So long as the people who invest in the bank are understood to own it. Banks are a special case where other peoples capital is pooled to the advantage of the debtor, not the creditor; though they're happy to take on the standard role of creditor at other times. For most standard bank accounts, it costs the creditor money to keep it there, but when the debtor uses the, they get to keep the profit.
Economies plan for 2% inflation, so really the standard employment contract should have a standard 2% raise per year, and every standard bank account needs to provide at least that much in interest per year.
Like this peep says. Everyone can actually win with banking, but some people don't feel like they win unless someone else loses.
Economies plan for 2% inflation, so really the standard employment contract should have a standard 2% raise per year, and every standard bank account needs to provide at least that much in interest per year.
One important thing to be recalled in my original question is that I specified demand deposits would need to be fully backed. However, the banks could still offer loans by first offering term deposits. You give a bank some money, they give you a certificate that says you'll get your money back in a year, plus, let's say, one percent. The bank then lends out that money at, let's say, two percent. So you get back a hundred dollars, plus one dollar in interest, and the bank has a dollar more than they had the year before. I know, that's all really basic. I just wanted to spell it out because it was apparently getting ignored.
Like this peep says. Everyone can actually win with banking, but some people don't feel like they win unless someone else loses.