what is wrong with this statement: abolish the Federal Reserve: private money creation = public debt

[yurbud]

I think that boils it down to the essence of the problem with them, but maybe I'm missing something.

[Statistical]

1. Everything.

The Fed has nothing to do with public debt.

Congressional spending that exceeds Federal revenue = deficit.
The sum of all deficits since founding of this country (minus the pathetically few surpluses) = national debt.

Revenue is controlled by Congress (taxes, tariffs, etc).
Spending is controlled by Congress.
Limit of federal debt is controlled by Congress (Dept of Treasury can't issue more debt then debt ceiling set/raised by Congress)
Bonds (debt) is issued by Dept of Treasury, interest payments paid by DoT, matured debt paid back by DoT.
The Fed has absolutely nothing to do with that.

If anything increasing the money supply devalues the dollar which makes the national debt less in real terms.
Still $11B but $11B is worth less because each dollar is worth less.

[RoyGBiv]

2. The precise word that entered my head ...

Beat me to it.