Reserve bankstering works and has always worked just fine, because a Medium of Labour Exchange is actually backed by the labours that it's earning has, or spending will, represent, ALONE!
Fractional Reserve Banking worked to bring about a power shift from feudal monarchs to the merchant class. FRB is in itself dishonest when you think of money as a commodity (say wheat) it is a flawed human construct. FRB also creates money inflation which is a cause for malinvestment in an economy, the net byproduct of inflation is continued economic growth, (the result of the additional Labour needed to offset the increase in the money supply) which is now unsustainable.
Yes inflation (and deflation) are ALWAYS everybody's and everything's enemy!
Price inflation and deflation is not in itself good or bad, it is natural market feedback, information provided to members of an economy to make optimal use of resources available. It should be respected not feared and manipulated if the goal is to live sustainability and in peace.