Frb is counterfeiting but nothing worse than that

If deposit insurance is provided to banks and they are not prevented from making loans, then inflation will result. If a bank is immune from failure the quality of its assets and reserves becomes irrelevant, the bank credit becomes magic, not mortal. A bank (of this type) is not a normal business, it can increase the money supply like the government. The problem is that there is no point trying to save money (for most people) if banks are able to cause inflation, not only that, people who are not offended by getting into debt have access to property above those who prefer to be free. Unlike the enforcement of debt, or taxation, or any other violation of property rights, with banking and counterfeiting no property is violated.