330,
You wrote a bunch, and I'm not going respond to all of it because I'm similar to most typical Americans in that I have a short attention span. However, I agree with much of what you wrote. That said, I DO think this is a typical chicken and egg situation. Which is cause and which is effect? Is the Fed the problem in that it enables government over-spending OR is the over-spending government the problem in that it forces the Fed to adopt ridiculous monetary policies just to preserve the "integrity" of the federal credit rating? Honest question???
Isn't the root problem that the American electorate wants to have its cake and eat it too? Yanks now want Euro-style government benefits and low taxes all at the same time. In my mind, it's decision time... Slow growth, high taxes, and high unemployment with a large social safety net; or low taxes, low unemployment, higher growth, and less welfare.