Thoughts on the fraud in Fractional Reserve Banking

I think that a lot of people on this subreddit are probably familiar with the opinion that fractional reserve banking is fraud, and after reading, Mothbard’s What has Government Done To Our Money? I am inclined to agree. With that said, I see others saying that it isn’t fraud because both parties have consented.

Here I wanted to layout all the reasons why I think fractional reserve banking is fraudulent, and I am curious what others think.

1. There are multiple claims to the money, and if people all go to bank and ask for their money, then the bank goes insolvent. (This is the classic example of fraud in Rothbard’s book, and I agree this is fraud, but I think it is just the beginning.)
2. What is even worse in my mind, is that the bank has the ability to create money out of thin air, which decreases the purchasing power of everyone else’s money. The fact that money is a store of labor or value that I have provided to society, means that the banks are quite literally stealing my time, effort, labor, etc. (The same can be said when the central bank “prints” money.) I feel like this is overlooked, but in my opinion is the bigger fraud. Even if you think case 1 is not fraud, and that both parties have consented to a fractional banking system, how can anyone deny that the creation by anyone of money without labor or value is not fraud? At the very least it is extremely unfair to everyone else who must labor to make money, no?
3. Next, let’s say there are 10 people. 1 of them is the banker, and the other 9 are just regular people in a community. If each person starts with $10, and they all put it in the bank for safe keeping, then the bank will have $100. But under fractional reserve banking, with a 10% reserve requirement, the banker could lend out another $900. If they loaned out $900 and charged a typical interest rate of say 5%, then they would collect $45 in the first year. Because they were able to create money out of thin air, they were able to make a “real” ROI of 45% in one year. The average person making maybe 10% ROI from stocks, has no ability to get anywhere close to this amazing ROI that a banker can get. Giving this massive advantage to one group in society, is obviously unfair, but feels like fraud. I can see how this leads to a massive concentration of wealth. You could double your money in just a little over 2 years with such privilege!
4. That leads me to the next area of fraud. The money is created out of thin air for a mortgage, let’s say. But if the lendee does not pay back the mortgage, then the banker takes back a very real asset, which is the house. No wonder they can afford to sell the house for 25% under market in an auction online, they had almost no real skin in the game!
5. Lastly, I don’t believe for a second that the average person in america understands fractional reserve banking. I think most of the teachers in school didn’t understand it when they taught it in 9th grade econ. If people don’t understand, then it feels like fraud, even if it doesn’t fit the strict definition or legal enforcability of fraud.
6. Bonus: On top of that, we have slapped the band-aid solution of FDIC and the central bank to make fractional reserve banking work and fix bank runs. So if the bankers overextend themselves, which has repeatedly happened throughout history, then the taxpayers get to bail them out, while they collect a giant bonus, and the cycle starts again. My taxes are bailing out a fundamentally fraudulent system that gives massive advantages to one group of people that allows them to concentrate wealth? Who looks at this system and says, yeah, this is fair and not fraudulent?

What do ya’ll think? I am struggling to see how fractional reserve banking can be defended, if you value fairness.