I don’t see how you can claim inflation is a “feature, not a bug.” How is consumer price inflation good in any way, shape, or form?
It is not clear what you mean when you say "the US dollar index is down 4.83%. I understand consumer price inflation, not “dollar index.”
A feature of debt-based fiat money is the easiness of debasing the currency- just create more government debt, which is easy to do.
Fractional reserve banking is a separate issue. Of course, you can point out that the Fed lends by fractional reserve.