Okay, I'm not the only one seeing it, surely?  It's like you and Carlton are the exact same person, only you believe the exact opposite things.  For a split second I thought I was reading one of his replies.  You're like Nega-Carlton.  

I must have stumbled upon the middle-ground if I'm now getting it in the neck from both sides.  



Great, fractional reserve is fraud.  I agree there.  But I think it's an insult to those securing the network to assume that they would be so ignorant as to allow such a horrid change in Bitcoin.  It's nothing like a Bank that can alter its terms and conditions at any time without prior warning or consent and no one can say or do anything about it.  The rules are defined in the code and the code can't be changed unless there's a sufficient majority who accept the change.  

I'm not entirely sure what you're suggesting with "the LN Hubs will update because they will profit from the fraud".  But if you mean there was such a thing as a hub running their own code to magically create new coins from nowhere, that software would be different to what everyone else was running.  Those transactions wouldn't be compatible and wouldn't be accepted into the blockchain.  

There are some legitimate concerns about Lightning, but fractional reserve isn't one of them and time will solve many of the others.