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Guest-5ty5s4
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The point of the question is to uncover the best way to grow your business.I got sucked into this quite badly when I was young. Reading all the economics books, arguing with people online about banking, going through page after page of Wikipedia, history and so on.
In the end I realized it was such an appalling waste of my time. It doesn't matter one bit what the "real way" an economy works is, nor the "correct way" a given part of it should work. It doesn't care, those in power aren't concerned, the opinion of a peasant is valuable only to him and will change nothing.
Really it's a kind of indulgence in "fake aristocracy", that because I can enjoy my time doing these academic musings, I'm not so poor. But actually I was poor, and those musings were only distractions from that.
The only thing that ever actually mattered was the size of my bank account. Not whether it's "fractional reserve" one, nor if it's "backed by gold", not if the state's policies reduce its real interest rate. All of those things are trivial and distractions to the cold hard self-responsible numbers: how much is it, how much is coming in a week.
Is it true that money should be gold? Yes, but it won't be. Is it true fractional reserve banking causes problems? No (cash reserve requirements actually arise from competitive interbank clearing needs and not from statutes as most people mistakenly believe), but so what? Is it true the state's economic policies are foolish? Of course, but not for them, so it's screaming into the wind.
Hence I think the key question is more: "how does my economy work?".
For example, my grandfather built his business primarily by doing projects for other companies and borrowing money from banks to buy equipment, real estate, and add on to our facility.
It’s important to have a plan like this and it helps if you know why it works or doesn’t work.
So no, this is not a political or philosophical question. It’s purely intended to be pragmatic and practical.