Comment: See my below comments...

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See my below comments...

If you know the bank is loaning out deposits, it's part of the contract between the depositor and the bank. How is this fraud? You're the one "contorting" things.

What I don't get is a a bunch of "anarchists" go around and act like it should be illegal to make this voluntary arrangement between depositor and bank. This is why I can't take Rothbard seriously... well one of the reasons.

He claims that in this utopian "anarcho-capitalist" society, no one would do fractional reserve banking, but the only free market banking systems that ever existed were all very highly fractional reserve.

Then he basically says in a system with a government it should be illegal because it's "fraud", even though the bank isn't hiding the fact they loan out deposits from the depositor.

I don't know what else to do besides roll my eyes!