In commemoration of the Boston Teaparty, many are donating to Ron Paul today. If you want to eliminate the banks, consider donating. It's only 5am EST and he's almost brought in $1 million so far. www.ronpaul2008.com
This is obviously nonsense. Banks must balance their books. If fractional reserve requirement is 10%, then the bank must maintain 10% of deposits in reserve. It can lend out the other 90%. So if bank has $100,000 in deposits, it can lend out $90,000 of those deposits. If it wants to lend more, it needs to get it from somewhere which is why banks borrow from each other and from the Central Bank.