I don’t disagree with any of this.  I don’t particularly understand your point about being dependent on the system?  Of course if would crash without it and 100% needs the current system to maintain the deficits. 

No argument here in the slightest and I never, ever, have argued otherwise.

I have a degree in macro economics, with a monetary systems and commodities specialty. Nothing you said there is news to me. 

 Ah okay, I'm probably just misunderstanding your comments. 

 "Governments don't need fractional reserve banking."

"The fed could dissappear tomorrow and the treasury could still issue debt.

It would merely have to be paid for by the savings of individuals, companies, funds, banks, etc..  

This is 100% possible without fractional reserve banking and could still be the case on a bitcoin standard in fact."


 

 For millenia, governments and kingdoms have existed without fractional banking, and banking at all.  However they abuse such a plight, and start debasing their goals, pearls, dollars, etc..

This isn't a requirement to run a government. rather a want and desire of powerful men taking advantage of their people.  Politics...