But it's not the loaning of money, it's the creation of currency. It's two-fold: government forces their fake (unconstitutional) money on citizens, and then lets the Fed and banks print it out of thin air, debasing all the dollars people hold.
If the US dollar were still backed by metals, and banks actually had to loan out real dollars they held (and there weren't the awful FDIC insurance for banks that take big risks), you wouldn't have the destructive effects that fiat have.
[–] virge [S] ago
There's more than one way to skin a cat, in this we agree.