Bullshit. Lending is necessary.
Fractional reserve is not lending, it is theft. You create new money and lend out the purchasing power of others forcefully, because you weren’t able to get them to lend it willfully.
All fractional reserve is a criminal fraud.
If you give someone money for them to lend/invest on your behalf in exchange for a cut of the returns that’s a contract, not fraud.
The current system of fractional reserve might be criminal, but that doesn’t imply it must be so.
If you give someone money to lend out that is a contract. But if somebody lends out your money more than once that is fraud.
Because now there are multiple claims to the same property.
lol nice strawman. Lending out money more than once is not a requirement of fractional reserve
Actually it is. There are two ways to fractional reserve:
1.) Lend out more money than you have.
2.) Give out certificates for more assets than you own.
Wouldn’t lending 10% of everyone’s deposits be fractional reserve?
No. That’s more than full reserve. Fractional reserve means that you have only a fraction of the assets that you owe.
Fractional reserve is when a bank has $100 deposits and uses this to back a $1000 credit.
Or when a central bank gives out 100 ounces worth of gold notes and only has 1 ounce in the vault.
This is what you’re doing by conflating fractional reserve with the current state mandated system. Fractional reserve banking in a free market is investing. It involves risk. FDIC, the idea that the US will backstop everything, and banning full reserve banks results in the theft you’re railing against
No sorry, this has nothing to do with a free market, just like short selling hasn’t. It’s plain fraud.
If you sell what you don’t have or lend out what you don’t have, this is fraud. There is no two ways about it.
