The problem with fractional reserve banking

It's because a 9:10 debt to backing ratio can be looped to create a 10:1 debt to real-world asset value.

With the golden ratio, it can only be looped to create 1:1, because the golden ratio is equal to 1 plus its own reciprocal, eliminating counterparty risk since there's always real-world value to represent debt, allowing bank notes to be functionally equivalent to the RWAs they represent.

Does fractional reserve banking work without creating inherently unresolvable value in the process?