Comment: Not fraud you say - -

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Not fraud you say - -

If I give you 100 ounces of gold to hold for me, and instead you lend it out to someone else, then what would you call what you have done. You have taken something you were supposed to safeguard for me and instead you have taken a risk with it.

So if I give you 100 ounces of gold to hold, and you give me a receipt, and then you turn around and also give a receipt for 80 ounces of gold you didn't receive in return for his note payable to you, what have you done. You have my 100 ounces of gold and have issued receipts against it totaling a claim for 180 ounces. If he gives (spends with) his receipts to someone else and they then come in and claim 80 of the 100 ounces of my gold, is that fraud?

I think it is fraud in more ways that just the banker issuing more receipts than he has gold to deliver. It is fraud because it causes prices to be bid up as borrowers spend the newly issued receipts, and stimulates people to invest their own money to meet the perceived new demand, only to have higher prices and loan repayments drain demand from the economy and cause losses to the people who were tricked by the higher prices.

You can go through all the mental contortions you want, but if a banking system operates to deprive people of their wealth so that bankers can earn interest on receipts they create out of thin air, then this system unjustly harms people, and that is an evil. Call it what you want, but a society is justified in prohibiting this unstable, unsustainable, predatory, fractional reserve system.

"Bend over and grab your ankles" should be etched in stone at the entrance to every government building and every government office.