If I may ...
You can argue the Federal Reserve was a bad policy decision (I actually think its worked well), but I don't think it violated the Constitution. Congress was given the power to make money and from the George Washington's term it was acknowledged by all that they could use a central bank to control the money supply. When Hamilton proposed a central bank during Washington's term the arguments against it were that it was bad policy not unconstitutional.
For what its worth, inflation has been very tamed since the mid the 1980's. We averaged like 1.5% during Obama's tenure so that criticism of the law is not relevant right now in 2017. I am not sure what you meant by "it creates a scarcity of currency by never creating the interest that is due on all loans, but only the principle"
You must have really had a whole bunch of that cool-aid. Government reporting of numbers, never, never, never equate to real world suffering. The list below is an exercise in what is know as "inflation" or in other more truer words, "the expansion of the money supply". Now try and follow me on this. All money in circulation,
all money, is the result of a loan somewhere along the line. Be it treasury bonds, car loans, home loans, credit cards, commercial loans, etc.
All money in existence has been created via a loan process. At every creation point, only the principle was created. Not the interest. So when loans are paid back with interest, money in circulation is reduced by the amount of the principle plus the interest. This necessitates new loans having to be created in order for that new money to enter the economy and circulate to make up for the money that has been removed from the economy via loan payback. So when banks, for whatever reason, stop making loans, ie creating new money, the amount of money in circulation will decrease, ie money scarcity, causing all kinds of problems.
Article 1 Section 8 of the Constitution Clause 5: "Congress shall have power To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;"
Not a bunch of unanswerable private bankers. It was meant for "the people" to control the value of money.
Average New home: 1970 $23,450.00 , 1980 $68,700.00 by 1989 was $120,00.00. Today $406400
Average wage: 1970 $9,400.00 , 1980 $19,500.00, in 2015 was $48,098.63
Gallon of gas: 1970 36 cents , 1980 $1.19 Today $2.29
Loaf of bread: 1970 25 cents , 1980 50 cents Today $1.35
Pound of hamburger: 1970 70 cents , 1980 99 cents Today $5.29
Postage stamp: 1970 .06, 1980 0.15 Today-.049
1970 United States Debt $371 Billion. 1980 $908 Billion, 2016 $19,573 Trillion
The true definition of inflation, the word you hear everyday in the news, is, in actuality, the expansion of the money supply via debt.