Why did you pick 1 to 9 lending ratio? That is _dramatically_ higher ratio than current private bank lending ratios and I know of _no_ research that would suggest that’s a good fractional reserve number.
Thanks for your comment Kasey! I completely understand your concern and I welcome your comments into this plan! If the Federal Reserve which is government put in place this ratio. The private sector guarantees the 600 dollars into Fed to absorb the 100 trillion dollars that is needed in the future! Please let me know if this helps!
Private sector investors will not invest with banks that have lending ratios that high. 0.8 is the _absolute_ top before they start getting nervous.
It seems like when you say “flip” (a term you must abandon for something more specific) you mean unsecured debt. I’m not sure how that makes the US solvent, it just caps the debt, a limit we already have (and blow through every year).