From: Jon Trollston Subject: 100% reserve currency and inflation Hello sir, i have a question as to what would happen if in a full reserve currency system, a bank decided to create more certificates/tokens than it could back with gold. What would be the reaction of the markets? And how do we avoid bank runs once they figure it out? Do you have some material you could send me to look at? Sorry if this question seems elementary. Dear John: If a bank decided to do that, it would be called fractional reserve banking. The market, that is, other banks, … Continue reading Fractional Reserve Banking Rears Its Ugly Head Once Again