You are going to need one hell of a citation for that claim, or you are using some new definition of 'trust' that I have not previously encountered.

Yes, that is why banks don't require any collateral for anything, after all if you are doing trade you are trustworthy right?

They do all the time. It's just that the level of distrust is factored into the price. For example, you'll pay more money to buy a used car from a dealer than from a random person, and you'll pay more to buy from a reputable dealer. And it's why there are such things as cashier's checks, wire transfers, and escrow services.

> Deception is not normal.

It is normal, and it is factored into the price as "risk".

> It's why "capitalism" as practiced in countries where there are no stable legal systems tends to have lower levels of growth.

Of course. An unstable legal system means high risk, high risk means adverse prices, and as such lower levels of growth.

Indeed, countries without stable legal systems don't practice "capitalism", as defined e.g. by Adam Smith's work. At their best, they practice crony capitalism-- but that's not quite the same thing!