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| Haha! This exact problem, the bank run problem... led to the concept of a central bank, a lender of last resort. And later the FDIC.
Edit add: this is a really good thread because it follows the logic of how we got where we are, although there is of course so much more in this history than you and I know. Everytime I go back through the mental excersize... I land that no, we should not burn everything to the ground. The system we operate in has flaws but it is difficult to conceptually create a better one. I dont like QE, but I do see a need for a central bank. Others are free to their opinions too, but I do think the more everyone learns, the better.
These things have to be pragmatic and that complicates the issue. If the US economically struggles, adversaries would... smile. Economics becomes relative in this regard.
Edited by reformedbanker 12/28/2025 17:13
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How money is created
