Whose Money is it Anyway?

Excellent post:

http://spartancapacity.blogspot.com/2012/08/who-money-is-it-anyway.html

Especially this:

"What does a "pure exchange" medium, controlled by the state, actually mean?  It means that money is created by the state for the purpose of exchange of tangible goods and assets.  It means that banks can no longer generate profits by exploiting loopholes in the calculations of global stock markets.  It means that your money will never "evaporate" from banks as the money in circulation would be linked to state backing.  It means that banks can no longer bet on the economy the way a gambling addict bets on horses because they no longer have the ability to generate "vitrual" money endogenously using fractional reserve banking.  Fractional reserve banking is another way of saying that a bank lends out 10 times more money that it actually has so that it can maximise its profits at the risk of catastrophic cash-flow shortage.  Basically writing cheques that will bounce - and hoping they don't get cashed in too soon to avoid them bouncing."