I've been looking closely at it, for nearly 20 years now. Yes, it is weird, but not if you understand it.
Most people are just not awake to it yet.

look, we can't teach you the complexities of economics on this thread alone.  you will have to do alot of reading and studying on your own time if you want to understand what money is.  it takes a LONG time and this thread is getting too long too.

i would start by reading the Creature From Jekyll Island by G. Edward Griffin and then move to Mises.org for an understanding of the gold standard.

listen to the Khan Academy video i posted up for you.  if you understand how the Feds balance sheet works then you're golden.

FRN's are liabilities (Right side) backed by US Treasuries (left side=assets) which are debt backed by the sweat equity of the US taxpayer.  the asset side used to be gold (hard currency).  thats all you need to know.

If the new money is a liability, who is it a liability to? I think it's actually a fake liability to hide the masses of new money they make. A form of window dressing. But am I right. The money is owed to the government or something? That would make it even more insane and complicated.

its confusing b/c its a circle jerk.  US Treasury issues debt which is then monetized by Fed printing which means the new USD are backed by that same UST debt which the issuance of devalues the printed USD's. 

this is why the avg person doesn't understand money.

It's borrowed money. If it does not return to the Fed before you die, it's collected afterwards. Eventually, it goes back to the Fed, because it's theirs, not yours.

But it's backed by the full faith and credit of the USA... That all you need to know.  What could possibly be wrong with that?

It's an accounting system. There are no dollars in fact. There are debits and credits, and some debits are represented by those FRNs. If one is burned, or destroyed, the system adjusts itself, because at the end of the day, all accounts are "zero".

The fact that you have been left with a few of those pieces of paper is not an issue. One day they will be spent, and when they are spent, they are headed back to the Federal Reserve.

Second point, the gold question.
No, the congress, authorized to coin money, would use the gold to back the fiat currency, making it somewhat stable and insured. Currently, the public Treasury borrows from the private fed.


Wiki
A double-entry bookkeeping system is a set of rules for recording financial information in a financial accounting system in which every transaction or event changes at least two different nominal ledger accounts.

The name derives from the fact that financial information used to be recorded using pen and ink in paper books - hence "bookkeeping" (whereas now it's recorded mainly in computer systems) and that these books were called journals and ledgers (hence nominal ledger, etc.) - and that each transaction was recorded twice (hence "double-entry"), with the two transactions being called a "debit" and a "credit".

It was first codified in the 15th century. In modern accounting this is done using debits and credits within the accounting equation: Equity = Assets - Liabilities. The accounting equation serves as an error detection system: if at any point the sum of debits does not equal the corresponding sum of credits, an error has occurred. It follows that the sum of debits and credits must be equal. --

(Federal Reserve Keeps a Double Entry Bookeeping system)

You are either uneducated about money or you are arguing for the sake of argument. I'm done trying to help you understand.