Sunday, January 15, 2017

Money Wisdom #420

"Fractional reserve banking is constituted by a fundamental lack. This lack is veiled by the imaginary fantasy of convertibility. And as we know from Zizek, fantasy operates by producing precisely those effects in the real for which it serves to compensate. In the case of fractional reserve banking, the fantasy of convertibility produces the effect that credit money comes to function as if it were indeed real money endowed with real value, thus making the need for actual conversion redundant."

Ole Bjerg Making Money  (2014) p.139

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