Of course there is an inherent problem with it: it's fraud. Just because it's fraud we are used to doesn't make it any less so. Demand deposits should be cove

Of course there is an inherent problem with it: it's fraud. Just because it's fraud we are used to doesn't make it any less so. Demand deposits should be covered via reserves. Loans by banks should be duration-matched to financial instruments offered to the public. Presto, no bank runs and the interest rate is driven by a market expression of societies time preferences. Economic stimulus is done via government spending, rather than jamming money into an already bloated financial sector. I would favor a universal citizens dividend for this, to minimize corruption.