"Rectifying The Injustices Of Fractional Reserve Lending"
** Unfair and Dishonest Comparison to Capitalism **
Consider individual investors who pool their money to start a corporation to compete in the open market.
The capital from these individual investors would be applied one for one, dollar for dollar, to fund company expenses.
That model of capitalism is completely unrelated to the means by which banks acquire its profits!
** Objective Definition of a Crime **
In the blog "Ethics of Fractional Reserve Banking: Legitimate Establishment or Opportunistic Crime" it was demonstrated that banks could earn usury interest on $900 in commercial money from a $100 deposit, that could be calculated by the money multiplier.
Indeed, 10% is currently the approximate fractional reserve ratio, while in the recent past the ratios were near 5% and even 2%; so, imagine banks earning usury interest on $2000 or $5000 from a single $100 deposit - History of Federal Reserve Requirements
Unlike venture capital investments, banks earn usury interest on money that is leveraged multiple times and that is literally fabricated out of nothing, which is counterfeit, fraud, and theft.
** Subduing a Veracious Beast **
Upfront, this proposal will not call for the elimination of fractional reserve lending, rather it will pursue a goal that caps the net earnings of banks and that dispositions the excess from gross earnings to the private accounts of citizens, such as that of the Public Private Trust or privatized social security.
In other words, banks are not entitled to usury interest on the multiples of counterfeit commercial money, and the necessary evil of a fractional reserve lending system will be justified by allocating the excess for a greater good, as is a similar concept in sumtuary taxes - excise taxes - sin taxes.
Note that the excess from gross earnings should not be allocated to the communist institutions of government.
By example, community property is like a public park to which everyone has equal and unlimited access; whereby, reasonably, social security and Medicare are communist programs; whereas, cooperative property is like a coop where each individual owns their own fractional share outright that each is able to heir, sell, or trade.
** Caveat **
Some call for an elimination of the Central Bank, however those calls do not consider the consequences of being without a central bank; for example, a lack of recourse in prior banking crises, or the general limitations of credit, or limited control over the money supply and inflation through interest.