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<p>[QUOTE=&quot;fatima, post: 1251054, member: 22143&quot;]You didn&#039;t make your case about the investment banker with this example.&nbsp; The party who organized the cattle drive is part of the production arm and may or may not make a profit depending upon the results of the cattle drive.&nbsp; The big difference between the cattleman, and the banker, it&#039;s assumed the banker gets paid regardless of results, the cattleman doesn&#039;t.&nbsp; &nbsp; Hence your contention that I don&#039;t understand, isn&#039;t proven by this case. </p><p><br /></p><p>It&#039;s critical to understand this difference in an asset based system vs a fiat based system.&nbsp;&nbsp; In the latter case, if the cattleman can&#039;t pay back the banker, then the central bank simply prints more money and hands it over to the bank to protect the bank.&nbsp; In the former case, if the cattleman can&#039;t pay back the bank, then the bank just lost $10,000 in gold.&nbsp; Where are the assets to replace this gold?&nbsp; It creates a huge difference in the dynamic of the economy.&nbsp;&nbsp; In the days of the cattle drive, the banksters were usually not involved because of this fact and the economy operated on a cash and carry basis.&nbsp; i.e. nobody got paid until the cattle were delivered to a Chicago slaughter house.[/QUOTE]</p><p><br /></p>

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