You and many others in this thread are basically saying
"Fractional Reserve is shit"
Let's not forget it's backed by Proof of War.
It should be obvious, but this fact seems to have escaped your attention: the fact that fiat is backed by proof of war does not lead to a conclusion that it is not shit.
Relatively speaking.
It's shit for the have-nots of course.
For the have-a-little-and-want-more it could be good or bad according to whether one is able to use it at their advantage (id est: successfully throwing earl liquidity in the rat race).
The biggest critique to full reserve systems resides in the fact that where the lender is not intrinsecally motivated to assume the risk, there is less space for businesses to fluorish without that initial money-debt boost.
The price for that is very high of course.