If you want the best and clearest analysis of the fraudulent and destructive system known as fractional reserve banking, read the book by the Austrian School's free market economist, Murray Rothbard: "The Mystery of Banking."  It's posted free on-line.
http://www.mises.org/mysteryofbanking/mysteryofbanking.pdf

http://www.cyberclass.net/turmel/bankmath.htm
LETS Engineering Mathematics
by John C. Turmel, B. Eng.

http://www.augustreview.com/news_commentary/global_banking/the_twilight_of_irredeemable_debt_2008050890/
The Twilight of Irredeemable Debt 	 	 
By Professor Antal E. Fekete
May 2, 2008

http://econpapers.repec.org/paper/wpawuwpma/0203005.htm
Fractional Reserve Banking as Economic Parasitism: A Scientific, Mathematical & Historical Expose, Critique, and Manifesto
Vladimir Z. Nuri
Abstract: This paper looks at the history of money and its modern form from a scientific and mathematical point of view. The approach here is to emphasize simplicity. A straightforward model and algebraic formula for a large economy analogous to the ideal gas law of thermodynamics is proposed. It may be something like a new 'F=ma' rule of the emerging econophysics field. Some implications of the equation are outlined, derived, and proved. The phenomena of counterfeiting, inflation and deflation are analyzed for interrelations. Analogies of the economy to an ecosystem or energy system are advanced. The fundamental legitimacy of 'expansion of the money supply' in particular is re-examined and challenged. From the hypotheses a major (admittedly radical) conclusion is that the modern international 'fractional reserve banking system' is actually equivalent to 'legalized economic parasitism by private bankers.' This is the case because, contrary to conventional wisdom, the proceeds of inflation are not actually spendable by the state. Also possible are forms of 'economic warfare' based on the principles. Alternative systems are proposed to remediate this catastrophic flaw.


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From comments to http://www.marketskeptics.com/2009/03/fed-is-planning-15-fold-increase-in-us.html
me: "Something about society over the last 100+ years seems to have bred out the capacity for noble dedication to the betterment of humankind - at least among our rulers."

It's called fractional-reserve banking of a debt-based currency. People have to grasp the inherent fraudulent nature of this style of banking and money creation The best book to gain such an understanding is the scholarly (and unfortunately dense) treatise "Money. Bank Credit and Economic Cycles" by Jesus Huerta de Soto.

If you can wade through it it is well worth your while.
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