Fractional banking and time

I think this is the core concern about fractional banking, it is about pricing a variable that is derived.

The correct S&L is about selling and buying possible events.  In this scenario, fractional money creation makes sense because traders may not agree on future events, but they have to price probability, and probability is conserved in money, total probability is close to one when  the bets are compressed.  Otherwise you have known uncertainty that is unpriced, a money induced hedge that should not be tradeable. Banking cannot keep arbitrage moments, not allowed, bit error is gained or lost to restore the bets to probability near one.  But the bit error is accounted for, it is a contractual service provided by the pit boss.

When we are selling the fake unit, time, we screw up. Think about promising events correlated to agricultural seasons.  Period payments due every harvest.  We are not farmers, and when someone adopts the season payment system, other groups have motive and opportunity to create a different sequence order of events, like minipulate he wheat market at some predictable moment that is unpriced.  A very valid complaint against fractional time lending because all the interest payments are made after harvest.