Although it seems like fractionally reserving would also cap demand for Treasuries sooner or later. When that demand dries up, maintaining the reserve currency would necessitate some kind of dollar backing, à la your proposal at the BPI this spring.

In the end it all comes back to fiscal discipline, which is downstream from national character. We haven’t balanced a budget in over two decades and the public appetite for bread & circuses seems strong as ever today. 

I hope I’m wrong.