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

Hey clsmooth, It has been a pleasure debating you on this topic. I apologize for not getting my final round in earlier, I have been absolutely swamped with other things. Below you will find an answer to all of your questions from round 3. I still maintain my stance that the U.S. economy is NOT a fraud based on the Federal Reserve system of fiat money and legal-tender laws. I do believe that certain aspects of the economy and fed could be reworked over the next 30-40 years but, that is just due to the fact that we are in a post modern era. Technology is not the basis on which we do everything and it should be more prevalent in the antiquated federal reserve and banking sectors. 1. I agree, only because that is the only means of transaction within our economy. This question is a fact and cannot be refuted. It doesn't mean that your thesis is correct, however. 2. DISAGREE, federal reserve notes arise from the issuance of those notes by the U.S. treasury. The money that is "created" from fractional reserve banking is only on the paper or electronic contracts that it is printed on. Banks do not create physical, paper (really cotton based) money from fractional reserve banking. 3. DISAGREE, every dollar is not created out of debt. While the majority of it is, not everyone is neck high in mortgage loans or credit card debt. Also, money would not become nonexistent should all debts be paid back in the economy, it would just be controlled by the banks who would in turn invest it back into the economy, releasing it once again to the public. 4. I agree to those three reasons, however, you must realize that we accept FRN's as legal tender because our economy has created that as our established currency. We must accept that or move to Canada... 5. DISAGREE, banks are not the only entities that are able to "create" money out of loans and fractional reserve banking. Credit unions, savings and loan institutions, and mutual holding companies also have that ability. These institutions may have a monopoly on the distribution of money in this aspect, however, in the banking world everything is still based off of perfect competition. 6. I agree and DISAGREE, these facts are only based off of the federal monetary policies. The fed would not purposely deflate this countries currency unless it HAD to be done. 7. I agree, this is a fact... It's called INFLATION. It's standard economics, how does this support your argument? 8. I agree, it's a lot easier to carry around a bunch of gold or silver coins or small objects (the Mayans used jade for example) then to carry around 100 chickens. Common sense. Again, how does this support your argument? 9. DISAGREE. No one is forced to accept anything in the United States, that is why this country is what it is today. We choose to accept FRN's as a source of currency because it is an establish means of exchange. If you want to buy gold and start using that as a means of exchange go ahead. Services can also be used in this economy as a medium of exchange, FRN's are just easier and more widely accepted. The U.S. economy is a complex model of modern economic theory and economic practices. It is based on what is accepted worldwide as sound economic practices. The reason other physical commodities aren't used as a medium of exchange or currency is because there is no way to control those physical commodities. If people wanted to have chickens as the medium of exchange then every chicken farmer would be rich (not to mention people would starve). If society wanted to use gold or silver as a medium of exchange then mining companies would have a monopoly on the money supply. FRN's are easy to produce and can be structured to follow any needed supply and demand of an economy. Natural resources are too scarce to be used by 300+ million people as a means of exchange. I thoroughly enjoyed this debate and look forward to seeing how it turns out. -Nate