My take-away: 1. Fractional reserve banking always leads to mal-investments which must either be liquidated or papered over with money (inflation). If the mali

My take-away: 1. Fractional reserve banking always leads to mal-investments which must either be liquidated or papered over with money (inflation). If the malinvestments are large, inflating the currency can cause the currency to collapse in hyperinflation. 2. Liquidation (bankruptcies and transfer of wealth from debtors to creditors) is unpopular so politicians tend to avoid it. Politicians will naturally pursue an inflationary policy to avoid the wrath of the voters. 3. Bankers who profit enormously from fractional banking want to avoid currency collapse at all costs. 4. The bankers who control the federal reserve will seek to slowly liquidate to avoid becoming politically unpopular. Their biggest danger is that Congress will seize control of the Fed and force it to overinflate and thus destroy the currency and the Fed with it.