There is no need for deposit insurance

Deposit insurance enables banks to lend repeatedly and cause inflation, Fractional-reserve banking is a result of this insurance. There would be no need for deposit insurance if the banks held sufficient reserves, it is required only because of this problem. Without Fractional-reserve banking there would be no requirement for deposit insurance.

A genuine type of debt is when an object is loaned and later returned. The banking system creates false debts when it 'loans' money to customers, no one is deprived of the money, the cost is collective inflation only.

If the Government is helpful they would not lend inflationary money to citizens, it would be debt-free. It doesn't help the citizen to be forced to pay back the interest. It is not the case that new loans of this type do not affect the money supply, if we have more money to spend prices will then be higher. The money supply increases when a bank makes a loan because the money is put into the economy when previously it was bank reserves, which do not influence prices. It (the money supply) does not reduce when a deposit is then made because, although the money again becomes reserves, there are now some new bank deposits which replace the circulating currency. Bank reserves do not influence prices, whereas deposits do.

The reserve ratio of a bank has no bearing on general prices, it doesn't matter if a bank has fully-funded reserves or if it is entirely empty, the value of the deposits is unaltered. The value of bank deposits is unaffected by the reserve ratio, because of deposit insurance which removes the incentive for a bank to keep a high level of reserves. Deposit insurance means that there is nothing to prevent banks from repeatedly lending deposits received.