You're right... this entire perspective can be confusing to people born into the pervading system. That's one reason I'm writing a fantasy novel set in medieval Ireland, to illustrate the problem you mention here: "My biggest concern with fractional reserve fiat debt-based currency is how it is used to fund wars that would otherwise be impossible." In the story, one of the three Gaelic deities/faeries known as "war starters" (this is actually a Gaelic thing) will start a war by funding it much like a central bank would. The idea being, debt funding is "magic"... it belongs in the realm of faeries and goblins. Title: To Coin a War. (Celts were famous for poetry and coining a phrase.) Anyway, your entire post was well stated!