I just think arguing about this stuff from the perspective of normative ethics to demonstrate the folly of the system is severely misguided. I think people can say "fractional reserve banking is fraud" until the cows come home, and unless governments outright banned it, the incentives to do it will persist indefinitely. Because there's actual productive efficiencies to be found in time arbitrage markets, even though they contain obvious tail-risks.
Discussion
I find it amusing that people think FRB is merely a creature of the state, and that a stateless market maximalist society would collective come to understand it is fraud through universally accepted ethics, in the vein of Rothbard or Hoppe. I think FRB would not only exist, but there'd be even more extreme versions of it.
