The Free Market Center
The Free Market Center
Again, for those who love detail, I have included the tables from which I have constructed the model showing the impact of the loss incurred by the grower in the context of a 100% reserve banking system.
For those who like details.
| Money Transactions | ||||||
| Grower/Seller | Seed Dealer | Lender/Bank | Deposit Liabilities | |||
| Beginning Amounts | $0 | $2,250 | $1,250 | $3,500 | ||
| Grower Borrows To Buy Seed | $1,000 | ($1,000) | $0 | |||
| Grower Buys Seed From Dealer | ($1,000) | $1,000 | $0 | |||
| Grower Has no Seed to Sell | $0 | |||||
| Grower Defaults on Bank Loan | $0 | |||||
| Money Balances | ||||||
| Grower's Money |
Dealer's Money |
Bank's Money |
Total Money |
Deposit Liabilities | ||
| Beginning Amounts | $0 | $2,250 | $1,250 | $3,500 | $3,500 | |
| Grower Borrows To Buy Seed | $1,000 | $2,250 | $250 | $3,500 | $3,500 | |
| Grower Buys Seed From Dealer | $0 | $3,250 | $250 | $3,500 | $3,500 | |
| Grower Has no Seed to Sell | $0 | $3,250 | $250 | $3,500 | $3,500 | |
| Grower Defaults on Bank Loan | $0 | $3,250 | $250 | $3,500 | $3,500 | |
| Corn Seed Balances & Transactions | ||||||
| Corn Seed Balances | Grower's Corn Seed Transactions | |||||
| Grower's Corn Seed |
Dealer's Corn Seed |
Net Quantity Grown ( Bushels) |
Quantity Bought ( Bushels) |
Quantity Sold ( Bushels) |
Price ($/Bushel) |
|
| Beginning Amounts | 0 BU | 1200 BU | ||||
| Grower Borrows To Buy Seed | 0 BU | 1200 BU | ||||
| Grower Buys Seed From Dealer | 500 BU | 700 BU | 500 BU | 0 BU | $2.00 | |
| Grower Has no Seed to Sell | 0 BU | 700 BU | -500 BU | 0 BU | 0 BU | $0.00 |
| Grower Defaults on Bank Loan | 0 BU | 700 BU | ||||