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<p>[QUOTE=&quot;fatima, post: 1250394, member: 22143&quot;]I would call this retail banking and not investment banking.&nbsp; However you missed the most important difference between an asset based currency and a fiat based currency.&nbsp; &nbsp; In your example, another 15 ounces of gold has to be added to the system as you stated.&nbsp; What if this gold is never created?&nbsp; What happens then?&nbsp;&nbsp; In a fiat currency, more money can be created to cover the loss of the banker, but in an asset based system something else has to be liquidated to pay back the debt.&nbsp; This very control mechanism of asset based currencies would have prevented the dot.com bubble, then the housing bubble after that.&nbsp; Both were dependent upon Federal Reserve money printing.&nbsp;&nbsp; </p><p><br /></p><p>The point being that investment banking only provides value for the investment banker.&nbsp; It does not create wealth.&nbsp;&nbsp; That 15 ounces of gold represents real wealth created by everyone but the banker, but the banker ended up with it.&nbsp; Beyond that, it adds nothing to the system and in fact creates bubbles and busts that keep growing to the point the economy explodes.&nbsp; &nbsp; Then governments are forced back to asset based currency.&nbsp;&nbsp; This has been repeated many times in history.[/QUOTE]</p><p><br /></p>

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