Banks can make cash

Fractional-reserve banking is fraudulent because we know that a bank does not even need to have any reserves for its deposits to retain value. Usually deposit insurance is required to maintain value, but even without, it remains the case that deposits which are not backed by what most people would view as money, have value in the economy. Prices reflect more than the base supply of cash, from which we can deduce that some fraud has occurred. Until the cash appears (the debts are monetised) the bank credit and even Government credit is mispriced due to this problem of people being confused and unaware of the reality of the situation. Most people have assumed that the price of money (cash) reflects its quantity, or alters for some other innocent reason, they are not aware of the nature of bank and Government inflation and since it would be an easy process for this education to take place, we can deduce that what is happening is fraud. People have been deceived into thinking there is no reason to suspect that banks are inflating the currency. The fraudulent part is that people don't know the money supply is going up, and it is, the authorities who have a special distinct legal advantage have exploited this situation to their advantage and failed to inform people about it. The ability to print currency has been handed to the authorities (both banks and Government) and it has been exploited to their advantage in secrecy. It is hard to imagine, given the distaste for the system held by those who understand it, that anyone would choose to be under this system, it is because people do not know about it that it is allowed to continue. Not many people would vote for it, given the choice.

It is foolish for a person in authority to take advantage of those for whom responsibility is held. If we wish to exploit people then we should be more honest and describe ourselves as a thief or a tyrant. It is also deluded to imagine that the interests of the subjects are served by the immense (and unfair) wealth provided by the fraudulent baking system, to imagine this to be the case is to be deceived. The theft is possible only because people do not know about it. The bankers sell pyrite not to someone who thinks it is gold, they sell it to someone who thinks pyrite is rare and in limited supply, while all the time more of it is being manufactured. The typical person is not aware that banks can make more of what they value, fiat currency, cash.