Okey, dokey. So what happens when banks can only loan deposits, or possibly a fraction of them? Suddenly the amount of money available for loans is only 10% (or considerably less) of what’s available now.
What do YOU think that would do to the economy?
That is, BTW, where banking was stuck for thousands of years. Only with the early modern period and the development of the modern banking systems you hate did the world start climbing out of its previous level of poverty.
But we can go back to that if it pisses you off so much that its unfair for banks to loan more money than in their deposits.
It's called modern banking.
If "money" could not be printed without any control, what would that do? Government motors, Solyndra, infinite examples of malinvestment, endless "social programs" to keep the natives quiet while the country is gutted: It takes easy money to line the pockets of the oligarchs.
Fractional banking brought the world out of poverty? Gee, and here I thought it had something to do with the Renaissance and the Industrial Revolution and Germ Theory and the US Constitution of Natural Rights.
But yes indeed, private fiefdoms creating trillions of dollars of debt from the cost of printing paper and ink, and the denial of entire countries sovereign powers to monetize the inherent wealth and assets of the People is, indeed, "modern" banking, and it has indeed claimed responsibility for All Good Things.
And no one, anywhere, who doubts that claim lives very long.
Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote: “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.”