P2P Lending alternative to fractional reserve banking?

[Jace]

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[Dequeant]

Personally, I love the idea. Some technical issues could be ironed out to make it safer for the lender, but it sounds like a very good system for all parties involved.

No way the government will allow it though. It takes money from the banks, and any time that happens, politicians get "pushed" into stomping it out.

 

[Carson]

It is a good idea.

The problem comes if your endeavorer conflicts in any way with the lawlessness of the globalist or One World Order crowd. They control (or are) the fiat money supply.

If you want to run a lawful business, or anything else, if you compete against them they can always out print anything you can possibly earn in honest enterprise.

Have you ever wondered how in the world every country in the world has politicians that refuse to uphold their immigration laws? How can honest contributions get honest politicians?

I remember stories about ITT taking over the baking industry. They had so much money they could go into towns around the United States and price their loaves of bread so low they could put all of the honest little bakers out of business. They were able to under bid for years if they needed to.

Still your concept needs doing.

Millions of small endeavors. So what if one or some of them go under. That is the way the sound system worked before the Federal Reserve. The group of men that created the Federal Reserve freaked everyone out into thinking they could fix things. They did get us down to only one failure. A Big World Wide Failure. Still many worship them.

 

[hugolp]

Anyway, just wondering what Ron Paul-minded people think of the whole concept and if it could be the alternative to all the instability, corruption, elitism, theft and war that we've seen under traditional banking.

I have though about this too. The problem is that banks can create money (through the fractional reserve system). And people can not compete with that, the banks can lower the interest rates more because they can create money and invest everywhere. A normal person can not compete with that. The power of duplicating money has to be taken out of the banks.

Hugo

 

[Dequeant]

Right, but a 10% return on your money every year is still better than you can get out of any savings account I know, more than any CD i know, and year over year should do better than most (stable) stocks.

This would work much better in a community based system. Where people know the people they are lending to.

 

[hugolp]

Right, but a 10% return on your money every year is still better than you can get out of any savings account I know, more than any CD i know, and year over year should do better than most (stable) stocks.

This would work much better in a community based system. Where people know the people they are lending to.

Yes, but why borrowers will borrow your money at 10% interest when they can borrow from the bank at 3% interest? (or whatever).

The point is that banks can lend money at 3% interest because banks are creating the money. They dont have to earn it, like you and me. There is no way you can compete with that. While banks have the power of creating money (through fractional reserve system) there is no way to compete with them, because its not a fair game.

Hugo

 

[inibo]

At first blush this seems like a good idea. I'm sure some one will try to pick it apart and say it will never work. I'd like to see those arguments.

That aside, do any other such things like prosper.com exist? The ability to lend in small increments and hopefully have some measure of transparency in the risk assessment looks like a very sound, non-coercive, self organizing system. The kind of anarchy that works.

 

[Carson]

Yes, but why borrowers will borrow your money at 10% interest when they can borrow from the bank at 3% interest? (or whatever).

The point is that banks can lend money at 3% interest because banks are creating the money. They dont have to earn it, like you and me.There is no way you can compete with that. While banks have the power of creating money (through fractional reserve system) there is no way to compete with them, because its not a fair game.

Hugo

Especially when they do make a mistake and a bunch of politicians come along and transfer their debt over to the private sector.

They are too important to fail???????

Give me a break. The only people to important to fail is, "We the People" and they have dragged us down until we can't make ends meet.


Still they stick it to us. Over and over.

Lubeless

 

[Jace]

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