The U.S. economy is a fraud based on the Federal Reserve System of fiat money and legal-tender laws.

I look very forward to this debate and I appreciate you posting it. Unfortunately I don't have time this evening to rebut and disprove every point you've made so far so I'm just going to start with a few of your main points and continue in my second round. Economics are a fickle thing. The theory behind economics is often changing and being added on to. It's extremely difficult to understand these theories without a formal education on the matter and even then not every aspect is understood. As an economic and business double major I am fortunate enough to have some knowledge of these theories and their practices today. That being said, a lot of your logic in this debate is flawed. 1. While you understanding the basic principles of lending in today's financial system you lack a greater understanding of the concepts. All loans are backed directly by deposits. You are very right that when you deposit $100 into a bank $90 can be lent out. The remaining $10 or 10% represents the required reserves that a bank must have in their possession at all times. Furthermore, even if that $90 was taken to another bank and deposited, the full amount still exists in the financial system. It may seem like the bank is "creating money" when they lend out the cash but, what they are really doing is speculating on the ability of the borrower to pay that money back. If the borrower fails to pay back the money owed then banks will fail because their balance sheets will be offset. That is why borrowers are thoroughly screened before a loan is made. The required funds exist in the financial system, they just need to be redirected by the borrower towards the bank. Furthermore, the basic use of accounting T chart will prove that every balances out in the long run. 2. "If everyone were to pay back every loan that's outstanding today, there would be no more money. That's because every dollar in circulation represents a debt to somebody. Your FRNs may outweigh your debts, but someone else's debts outweigh their FRNs." You disproved your first sentence by your second and third sentence in this argument. If everyone were to pay back every loan that's outstanding today, we would have all of the FRN's (or currency) in circulation. This goes back again to basic accounting principles and T charts. Everything balances out. 3. FRN's (or currency in your case aren't backed in Gold or Silver because those are unreasonable needs for a developed country. The only reason gold and silver were used to back currencies in the past were because governments were constantly rising and falling and there was no single dominating currency. Modern economics have allowed us to use fiat money (currency not attached to a physical commodity) in every country in the world. At the present time, no countries currency is backed by a physical commodity. 4. The federal reserve was created in 1913 not by the government to create a "legalized cartel of banks", but rather, to promote a stable financial system in the United States. The federal reserve gives banks the ability to lend and borrow money in order to keep required cash reserves. Before the federal reserve was created this was done by debt and security clearinghouses. Nowadays, the federal reserve is even a banks second line of defense, its' first being borrowing and lending money to other banks. Bonds give banks and the federal reserve the ability to earn maximum income on all money within their institutions. A bank buys up government bonds if they have excess money and nothing to do with it because they earn interest and a bank sells government bonds if its' required reserves have dipped below 10%. This was all the time I had to debate tonight but, I encourage you to post more arguments for me to rebut.