>There were holdouts in Europe originally, some central banks were slow to adopt fractional reserves. They were trounced by the economies of other European nati

>There were holdouts in Europe originally, some central banks were slow to adopt fractional reserves. They were trounced by the economies of other European nations and their superior access to liquid capital. This is in no way a proof. A good analogy, but not a perfect one, I agree, is looking at 2 companies where one of them has more capital and so it can undersell its competitor, using prices lower than its production prices. You might win the competition, but that's definitely not a a good system long term. And another thing that I think is very important to keep in mind is that we went through 2 world wars quite recently, each one performing a reset of the system. It is very hard to say that we are on the right track when the system needs to crash and burn every couple of generations.