[quote]Could it work?

Could we re-federalize "the fed", ie, make it no longer a private for-profit corporation, and then use the mass of interest payments that flow in to support necessary services provided by government?

The problem of how to control inflation immediately comes to mind as a major obstacle.

What other problems might make the idea unworkable? [/quote]

Yes it could work as that is much closer to what is constitutionally mandated. Congress is supposed to issue currency (gold or silver but that is just wishful thinking at this point), they would then get the first opportunity to spend it thus paying for government expences. The problem is who trusts congress to be fiscially responsible enough to issue currency? Also inflation would run wild as Congress went on a spending spree and sought to buy votes left and right. Possibly a presidential order that has to be approved by congress, much like a reverse of our current system for spending money.