BlackI have only starting thinking about ramfications.Let's see,...

Black

I have only starting thinking about ramfications.

Let's see, all cash deposits are guaranteed.

That means you never take your cash out of the bank because, placing it elsewhere means it could be lost.

So when you need cash, you borrow against it as it remains in the bank.

If you don't have actually cash in a bank yourself, you pay a fee to someone who does and then borrow against it.

Why not let several people borrow against your cash in the bank, all for the full amount as surely all of them won't get into trouble and need it, no.

And that is just the start.

Rorting will become the growth industry. So long as you have governments with unlimited cash guaranteeing things, risk is dead and scamming all too easy.

Why was it that governments privatised? Wasn't it because it made enterprises more efficient. Why be efficient when you have the government standing behind you with a barrow load of cash if you get things wrong. Maybe the cheapest way to raise capital will be to perform poorly for a bit and get gov money.

Etc etc.