If it were not for banks, people might typically have the capital on hand to lend to their neighbor:
Deu 15:1 At the end of every seven years thou shalt make a release.
Deu 15:2 And this is the manner of the release: Every creditor that lendeth ought unto his neighbour shall release it; he shall not exact it of his neighbour, or of his brother; because it is called the LORD'S release.
Deu 15:3 Of a foreigner thou mayest exact it again: but that which is thine with thy brother thine hand shall release;
Deu 15:4 Save when there shall be no poor among you; for the LORD shall greatly bless thee in the land which the LORD thy God giveth thee for an inheritance to possess it:
Deu 15:5 Only if thou carefully hearken unto the voice of the LORD thy God, to observe to do all these commandments which I command thee this day.
This policy of releasing a debt every seven years was revised by prosbul around the first century after CHRIST. Too many Jews were taking advantage of each other by needing a loan in the fifth or sixth year so that most of the principle-only loan was forgiven in the upcoming year of release.
It is interesting how this has been on my mind the last day or so. The Fed is supposed to be regulating the value of money so that there is enough in circulation so that we can conduct honest business easily. It does so primarily through Prime Rate/Reserve Percent regulation. The Fed eases or stifles banks borrowing, or stipulates how much cash on hand the bank must have percent to outstanding loans, then guarantees the remainder with FDIC insurance. As the dollar gets to pennies in value though, we find that the Fed has been favoring profits to the bankers in the business plan. In other words, a man should be paying about $25 for a good-fitting business suit that is going for more than $600 today...
I have a fond memory way back, Randy Lee and the Christian Jural Society broadcasting shortwave on the Patriot Network; me with SOVEREIGN CITIZEN plates on my Paris Dakar (1000cc dirt bike) camping in Moab, Utah... I had a shortwave radio on the bike with a police scanner in it! Randy was explaining how Federal Reserve notes are insurance policies, much like you describe here. That mental model tied them to regulation in admiralty through DeLovio v. Boit and so on - the hundreds of Libels of Review all based in and evolving from Are You Lost at C?
Some times it all comes into focus so clearly. UBUNTU speaks of people helping and benefiting from everybody having enough and just a little bit more. Nobody in UBUNTU has some kind of amoral person (corporation) to blame for any backstabbing going on.
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