This is all anything needs to know to understand fractional reserve banking:
It’s embezzlement by counterfeiting.
It’s when a bank takes its depositors’ money that it was supposed to store so that the depositors can take all of it out at any time, but instead keeps only a fraction of it (the fractional reserve) and lends out the rest with interest, hoping the depositors do not try to take out more deposits that the fraction they kept.
The money lent out is a counterfeit loan, where banks embezzle depositor money to make money off the loan’s interest.
If the bank runs out of cash because too many depositors take out their money at once, they may print the remaining money needed to pay out everyone.
If this happens, the banks counterfeit directly and embezzle their depositor money to make money by printing it.
Either way, fractional reserve banking is embezzlement, and thus a form of fraud.
It’s unjust because it violates the depositor’s right to private ownership over their money.
The practice should be abolished at every level.
It also destroys social welfare, especially for the poor.
The fraction reserve process reduces the purchasing power of money, making consumables more expensive than they otherwise would be.
Thus people on low and fixed incomes can afford less consumables.
So fractional reserve banking is unjust and destructive, and should be abolished.
That sums up fractional reserve banking in one lesson.