Replying to Avatar allen

if you are fully reserved then you can’t make loans at longer than zero duration so there is precisely nothing to worry about from the perspective of the brand of the dollar. the biggest danger is you confuse people into thinking this is how all banks work and then they are disappointed when their own fractionally reserved bank goes bust.
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J 2y ago

That confusion already exists. The disappointment is an inevitability for those that don’t seek a haven. A fully reserved system sounds like the very hope of any new standard. It’ll act as a beacon, casting light on both the dangers of the current fractionally reserved and safeties of the fully reserved, no?

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Micah541 2y ago

But like what does fully reserved mean if you don’t actually have dollars at the Fed? Do you have a stack of twenty dollar bills? Do you have tethers? Do you have treasurys?