Yup. In a free market all lending would require having money, thus interest rates would be driven by a lending firm’s ability to successfully invest, which woul

Yup. In a free market all lending would require having money, thus interest rates would be driven by a lending firm’s ability to successfully invest, which would allocate capital to ventures with better risk/reward profiles. Firms that lost most investments would go broke. But instead the central bank prints money to ensure solvency for lenders that would go bankrupt (fractional “reserve” banks).