[lsiq]

Productivity is indeed a second order thing in the way the banking system works now. But you still have not understood my point.

As long as IT IS LEGAL for banks to create credit for non-productive existing-asset purchases, there is a limit to infinity function applied to the economy that leads to consolidation of all assets with ex nihilo money. The banking system as it exists now leads to a future where one hypothetical private equity firm will have purchased all assets in the economy with bank created money (in practice, it will simply be government/central bank ownership).

[jasmer]

I understood your comment, I'm sorry to say that I don't think you have yet absorbed what 'productivity' is or how 'fractional reserve' banking works.

Productivity isn't some adjective in your head that describes 'factories making stuff' vs. 'home buying'.

Fractional Reserve lending benefits the entire economy, lending is done for a variety of reasons and banks don't have the ability to (for the most part) define what is a 'better' kind of economic lending aka 'magic productivity'. They assume that demands on their assets will be borne out by supply and demand.

Yes, centralization of power is an issue, but it's not fractional reserve lending that is the driver of this.

[lsiq]

Read this it will change your life for the better: https://professorwerner.org/shifting-from-central-planning-t...