It's true that if you eliminate banking, bank runs can not occur. But eliminating banking, will NOT stop economic recessions and depressions from occurring. Those have more to do with consumer psychology than banking.
And if you eliminate banking, economic growth and innovation will be significantly slowed as capital will not be effectively reinvested.
Can you provide any examples of countries that have prospered while eliminating banking?
You call banking "fraud", but almost everyone understands that when they deposit in a bank, the money gets lent out to others. So you would deny everyone the opportunity to collect interest, just to avoid the possibility of bank runs?
The protections on the banking industry that were put in place after the Great Depression have worked well to reduce bank runs. I believe it was a mistake to repeal Glass-Steagall and lower the bank reserve ratio to historic lows. I think these protections were removed to compete better globally, but we should have had a spine and required global competitors to come up to our standards if they wanted to compete in our market.
Why have any government, central planned standards at all? If you want to bank at a junk bank, junk bank. People that couldn’t change a tire, have no mechanical engineering degrees, know a Yugo was junk and a Mercedes was good. They now know KIAs were junk, but now are good cars. I don’t know of anything,or service or product which free people are not able to distinguish poor quality from good quality. Near illiterate street hustlers in Havana to North Korea know good paper from bad paper. People know their bum brother in law is a bad loan risk, and their rich uncle will want a return.
I’m told that great industrial concerns need ...I don’t know...big finance. Well, they’re so smart, let them figure it out. I’m told farmers at crop time need cash. Like it is the 1880’s. ( Even then that was true of SOME farmers. Marginal farmers ) Today there are futures markets. Crops can be sold before they are planted.
I would mind less if we had the class leadership we had at a hundred years ago. But no one can tell me that by and large the quality, over all, of the people in government has anything but gone down, way down. You take an organization, decrease its labor quality and up its work load and responsibilities and you tell me what is going on. I didn’t care one bit when GM was circling the drain because twenty other car manufactures were supplying me. But when Fedgov goes down, whom am I going to go to?
Of course, any student of history will tell you that it can’t happen here.
Who said I wanted to eliminate banking? I want to eliminate fraud. True, today, the two are nearly indistinguishable, but they really aren’t the same thing.