Professor's Response in Favor of Fractional-Reserve Banking -- How should I respond?

[Byzantine]

@Inquisitive

But Blackwater employees get paid by Blackwater itself even though the government is their client. How can they not be called private just because the government is their customer? They are not under the purview of the U.S. military.

Because the money the government uses to pay Blackwater is from compulsory taxation. They are legally private, but not in an economic sense.