Why we "NEED loans and credit" is of zero relevance. In Economics 101, needs and wants are unlimited. Whether essentials or luxuries, their nature is the same: un-effing-limited. It is resources that are limited and the free market, not the Fed, is supposed to be the allocator (e.g., determine the cost of money).
The radical idea is the legalized counterfeiting of the fractional reserve system.
A person should not be allowed to lend that which he does not have - that's called fraud. Being a banker is no excuse!
“If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen.”
- SAMUEL ADAMS