What would happen if we eliminated the Federal Reserve and had the Treasury just create the money?

Prior to 1913 there was no income taxes yet somehow the government paid for everything. The government could get rid of the federal reserve and just print and put money into circulation thru government spending. Kennedy created money that was made thru the treasury so we should do that now. We could decrease the... show more Prior to 1913 there was no income taxes yet somehow the government paid for everything. The government could get rid of the federal reserve and just print and put money into circulation thru government spending. Kennedy created money that was made thru the treasury so we should do that now. We could decrease the amounts created out of thin air (thru loans and fractional reserves) by banks and just let the government do it. The money created would be limited by the growth of the economy and to a certain percent of GDP. The deficit could be paid off and all of us would have a lot more cash to spend. The money could be backed by gold, silver, oil or even pure fresh water. One dollar could be worth four gallons of water. We could also eliminate the income tax and have lots of fresh clean water.
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