Fractional reserve confuses me greatly, because I always end up thinking there will be more interests due than there is "real money" in existence. Which leads

Fractional reserve confuses me greatly, because I always end up thinking there will be more interests due than there is "real money" in existence. Which leads me to belive we need periods of very high inflation to reset the economy every now and then. In the past we've had wars, which have been paid for with inflation. If a war, or some other cause of inflation does not come about, won't the bankers soon have all the money? How does this work out?