Continental Bank would take deposits, but it would make no loans, unlike most current banks that are built on a model of lending out far more money than they actually have on hand.

Taking it a step further, customers who don't trust government-issued currency may some day be able to keep their deposits in the form of gold and other precious metals that they could tap for everyday purchases. That idea is in keeping with Mr. Sprott's musings about chequing accounts backed by precious metals -- customers could deposit gold, then make purchases by cheque and have their accounts debited accordingly.

Note that the effective rates offered -- 0% -- are actually competitive with the Federal reserve's imposed fiat banking bailout regime, thanks to endless banking system props and "QE to infinity". So Bernanke & co. are inadvertently paving the way for a migration to "savings preservation" consumer banking like what Sprott is planning. Oops!

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