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In response to: The fact that a privately owned bank has the power to create our medium of exchange and sell it back to us is the basis for any learned man's opposition to the Fed. You said: If you want to buy something, you have to pay for it. So what? The constiution says that congress shall have the power to "coin money, and regulate the value thereof". That means CONGRESS, not a private bank. If our government needs to buy something it has several choices to raise the funds to pay for it. It may tax us, which is unpopular and can end political careers, it may borrow it, or it may print the money and spend it into ciruclation, which is what Lincoln did to pay for the Civil War. This last option is so far beyond the understanding of most men, and on it's face so controversial because of the almost RABID opposition by the rich and powerful banking interest that make up the ruling class of our country. If you are a billionaire banker, in a position to influence the operation of government, does it not make sense that you will spare no effort to prevent government from printing it's own money? Of course you will. You would want to maintain the status quo, no matter how unjust, for as long as you possibly could. In todays world our government is limited to two options, taxing and borrowing. Deficit spending fuels more borrowing. Wars fuel more borrowing. Remove the profit motive from loaning governments money and you would quickly see the size and scope of governments stabilize and eventually start to shrink. Is that not the goal of every patriot Todd?

If our government needs to buy something it has several choices to raise the funds to pay for it. It may tax us, which is unpopular and can end political careers, it may borrow it, or it may print the money and spend it into ciruclation, which is what Lincoln did to pay for the Civil War.

So what? What does that have to do with your gross misunderstanding of money supply?

Remove the profit motive from loaning governments money and you would quickly see the size and scope of governments stabilize and eventually start to shrink.

Yes, if people didn't earn interest when they lent money to government, they'd stop lending to government. Has nothing to do with the Federal reserve or money supply. Try again?