Not true. Go back to your econ 101 book and re-read how banks create money.
2) The fed never decreases the money supply on a net basis (over the long run)
Over the long run of course not. Why would the Fed take a long term view that GDP shouldn't grow?
Banks do not ever decrease the supply of credit except when forced to temporarily by "the business cycle" - this is happening right now.
Well then banks DO decrease credit, right? When forced to, or when they have been lending to any and every shyster in the world.
4) The US Government borrows money. It always increases its debt on a net basis. It has no intention of ever paying it off.
You are probably right. But I'll vote for a guy who says he will.
the ultimate source that allows all that borrowing is the fed and the banking system.
Even if the gov't were fiscally responsible you wouldn't want the Fed or anybody else to end the availability of credit.
The concept of using the $US as the world's reserve currency is flawed.
Why? I like the idea of putting my money into the strongest economy in the world, able to defend its borders from attack and able to manage reserves so that inflation doesn't erode the value of my assets.
The dollar is falling because it is losing its status as the 1 and only reserve currency.
Maybe so, but as an investment vehicle currencies are like trending machines. The largest spec market in the world, and for a good reason. The trends last for months and years. This has happened before and the world didn't end. Europe should have gone bankrupt after the Euro debuted and crashed for a couple of years.
We have been through that point ad nauseum. That the banking system, through fractional reserves, takes the original dollar from the fed and through a cycle of credits and deposits makes the sum total a lot larger does not mean that anyone besides the fed is creating the currency.
If anyone else prints the original dollar, he gets a visit from the FBI.