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Renée Menéndez's avatar

The story of goldsmiths who practically embezzled the gold entrusted to them is told time and again. Given the outrageous criminal laws of the time, it's hardly convincing to argue that such embezzlement actually took place on a large scale.

It's more likely that it was the fintech innovation of "credit lending" that made the financing of the economy possible. This trick is described in the following post:

https://reneemenendez.substack.com/p/the-ancient-fintech-innovation-which?utm_source=profile&utm_medium=reader2

And the rationale for the foundation of central banks can be found in an insurance arrangement against bank runs:

https://reneemenendez.substack.com/p/from-credit-lending-to-the-central?utm_source=profile&utm_medium=reader2

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Nathan Knopp's avatar

I'm looking for FEEDBACK on this essay!

Let me know what you think in the text box above...

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