Government debt and fractional reserve banking are two totally unrelated concepts. The latter is what increases money in circulation. Government debt only increases the debt instruments in circulation. Debt instruments, as far as I know, cannot be used to meet reserve requirements.
China, however, has a currency which is pegged to the dollar and backed by the US treasury. As a result, our government debt increases their money supply.
Well, obviously they're not totally unrelated, but I agree they are orthogonal. However, I was asking an honest question, how much of the money generated through fractional reserve banking is public debt? Ie. what's the ratio private/public debt?
China, however, has a currency which is pegged to the dollar and backed by the US treasury. As a result, our government debt increases their money supply.