Deposit insurance is required because banks do not retain customer funds
If the banks didn't steal our money there would be no need for the inflation. The inflation (deposit insurance) is because of the theft. There would be no need for deposit insurance if banks maintained full reserves.
John Locke, Second Treatise of Government: "No body could think himself injured by the drinking of another man, though he took a good draught, who had a whole river of the same water left him to quench his thirst."
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