Yeah it's true. Why bother about requiring some reserves, hum ?
I actually agree : let's abandon all this crap. Then the federal reserve will have no reason to exist, and we'll go to a free banking industry. Everybody will have the right to be his own bank : and in this scheme, I'm sure bitcoin will be the best money ever.
The problem is that what Bernanke is proposing is nowhere near free banking. Its more like lets get away with the small and inefficient check and ballances that exists right now to keep credit expansion in check. I mean, they dont work, the bubbles show it, but at least they make the process somehow slower.
Btw, this could be moved to the economics subforum, dont you think?