http://www.lewrockwell.com/raskin/raskin26.html
Run for Your Money
by Max Raskin
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Fractional reserve banking rests on the delusion that if the banks can fool enough people into thinking that they can withdraw their money at any given time, then they can expand credit and make all sorts of unwise investments. The minute the public gets wind of the bank’s insolvency, as with the latest crisis, they rush to demand their money. On the free market, fractional reserve banking is no more of a problem than fractional reserve car dealerships. If a car dealer sells two deeds to the same car it is clearly fraud. Yet somehow the banks are not burdened with the inconvenient job of repaying their depositors. Unlike the central bank, the car dealer cannot print more cars.
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And, they can’t print any more beach front property. Or, gold bullion coins. Or, any such commodity.
When one is in a “fiat money system” (money is unbacked by gold), then you are best advised to convert your paper into something. A house, a business, or anything that ain’t gooferment paper.
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Reinke Faces Life 