Deficit Spending: If you tried to pay your rent with IOUs based on future "possible" income, you'd be in jail. Fractional banking: The concept itself is based on fraud. I take in $1 and lend out $10. ie you are obligated to pay me $9 I never had in the first place. Both of these concepts should be relegated to the garbage can. Fraudsters are attracted to these types of activities. That is why politicians who espouse these concepts have a history of fraudulent behavior in their own personal lives.