The three critical exogenous variables that drives the demand for and supply of money, according to Investopedia, are liquidity, investment, and consumption.
According to theory, liquidity is determined by the size and velocity of the money supply. The levels of investing and consumption are determined by the marginal decisions of individual actors.
I am by no means a financial expert, I do however believe such a system would collapse totally. I cannot prove it though.
American population: 350 million
Average american saving account: <10'000$
That would give a possible total loan ...