The Fed doesn't "create" money to finance the deficit. The deficit is financed by sales of Treasury securities. How do you remove profit from those sales?
while the government CLEARLY has the power to create it's own money, debt free, and use it to pay for the costs of government
That's what you recommend? You like inflation?
instead we should continue BORROWING that money from the privately owned Fed
The government borrows from anyone who buys a Treasury bond. And pays interest. You think that's bad? Oh, right, you'd prefer they just print money to pay the bills. LOL!
and feeding the banking system with unlimited profits.
Unlimited profits? How much? Who earns (steals?) it?
Should I give you a reading list?
Goldbug reading? No thanks.
What are you defending?
I'm defending against goldbug ignorance.
You assume, incorrectly, that I support the gold standard.
The Fed does CREATE the money to finance the federal debt. The Treasury securities you speak of are sold FIRST to the Fed, then the Fed has the power to auction them off to selected buyers. The bulk of these securities are now, and have always been held by the Fed itself. Foreign holders of US debt make up less than 25% of the total $9 trillion.
When the Fed liquidates these securities, through Open Market Operations at the NY Fed, what it is doing is regulating the money supply. When investors buy federal debt the money from the sale disappears and the total money supply is reduced by a corresponding amount. When the Fed buys them from Congress the money supply is increased by a corresponding amount.