Rather than facilitating the transfer of savings across the economy to wealth generating activities, when banks issue unbacked claims they are in fact setting in motion the weakening of the process of wealth formation.
Being itself unbacked by anything other than politicians' promises, it is - in its current unbacked form - simply doomed.
Also during the course of the war, the federal government printed almost $1 billion in paper currency, or ‘greenbacks,’ that was unbacked by gold or silver.
In a free market, then, the threat of bankruptcy would restrain banks from issuing paper certificates unbacked by gold.
Over centuries, governments have taken over money from the market, and in the 20th century, most currencies became unbacked by anything other than the force of the State.
The only reason why in the past loose monetary policies seemed to grow the economy is because the pace of real savings generation was strong enough to absorb increases in unbacked consumption.
The bank then lends this unbacked certificate to an individual Arthur.
We laid it from 33-1 to 10-1 and a lot of supposedly fancied horses like Bobbyjo and Djeddah were unbacked .
In more details, the first unbacked check is ‘backed’ by an infinite string of subsequent unbacked checks.
In the world of Phoebe, striving unbacked by integrity may be blameworthy, but dullness is unforgivable.