FiatFiat Fiat

>>"I'm not sure about 100% reserve...

as it doesn't allow for easy growth..."

I think that's where we differ. What you see as 'easy growth', I see as 'easy spending'. You see 'easy expansion' of money supplies as essential to growth, and I see easy expansions of money supplies as damaging to sustainable growth.

I only consider growth to be legitimate if it comes from a reinvestment of earned/saved assets back into new production. The fiat system allows for growth to be enticed, with money loaned or printed into the system. It's the idea that 'if you dangle a fatter rabbit on a stick in front of the same pack of dogs, the dogs will run faster after the fatter rabbit ( the bigger money supply )'.

100% reserve cannot impact what I call legitimate growth that is derived from the reintroduction of profits/savings into the economy, but it does curtail easy spending over budget in the hopes of enticing growth. If you want to inject money backed by nothing into the economy ( as we do now ) in the hopes of stimulating production that will chase after the additional money, then forcing money to be created out of wealth that precedes it eliminates that demand-side stimulus crutch