#1 I'm a voluntaryist & anarchist and I don't believe in governments so I wouldn't 'make' anything illegal. The fractional reserve system is equivalent to selling rat poison as wine. If people want to drink rat poison that's their choice. However in statutory, canon, or common law, governments, churches, and people would judge fractional reserve banking to be a fraud and historically have done so. I'm all for purely free markets and the freedom to sell rat poison or use fractional reserve banking so the first thing I'd do beyond any legal system is to call rat poison, rat poison, and call a fraud a fraud. Whether fraud should be illegal or not is up to whatever type of jurisprudence you advocate. Secondarily if you believe in any decentralized common law system people can make their own judgements and most would consider the fractional-reserve system a fraud if they really understood it.
#2 Please read Jesus Huerta de Soto's book that has as its prime focus fractional reserve banking and understand the difference between the mutuum contract and the deposit contract. It was on the Top 10 all-time recommended list on Mises.org.
The Austrian Economic Professor writes about the history of banking from Greece, to the Hellenist period in Egypt to Rome, to the Christian Callitus Bank, to The Societe Argentariae, Banking in the Late Middle Ages etc etc etc...
#3 It's funny how so many are willing to dismiss the accepted Austrian economic theory that Mises, Rothbard, Hoppe, de Soto etc. have espoused. I'm not saying Wendy McElroy couldn't have superior knowledge than the top Austrian Economists in history, but I figure the top Austrian economists would at least hold a better reputation in general especially in the liberty movement. Even Peter Schiff makes this mistake because he doesn't think it's a fraud.
#4 You don't need a bank to invest capital at risk. You can invest in ANY financial institution that do the exact same thing and get interest or dividends from them. Why would you choose a bank for capital resource allocation? There is no reason to combine the mutuum and deposit contract and somehow think it's some logically necessary part of the monetary system. The idea that commercial banks can create money out of thin air and then charge interest on it is a fraud. Banks instantly become extractors of the people's wealth creation by doing almost NOTHING other than having the power to create money and using the pretense of being capital allocators. Just like all ponzi schemes, fractional reserve banking systems always end in bank runs and fail in the end. The only thing a central banking system like the Federal Reserve does is to institutionalize the fraud so they could keep the fraud going for very very long time via massive debt bubble creation & taxpayer bailouts until ultimately the country collapses.
9-11 Media Fakery: Did anyone die on 9-11?
Pysops.. media.. actors.. propagandists... disinfo agents.. fake videos.. fake photos
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