Interest on Currency Creation

Today I'm gonna babble a bit about money. I'd like to clearly state I'm not an expert on money, so I have more questions then answers. 

So what is money?

mon·ey  

/ˈmənē/

Noun A current medium of exchange in the form of coins and banknotes; coins and banknotes collectively. Sums of money.

Synonyms cash - dough - pelf - currency - purse - shekels That's the Definition I get from a google search, and it's pretty close to my own understanding. The idea that money is an exchange medium is key for me, it really shows money is only worth what you can get for it. We have a fiat currency so lets take a look at that for a moment http://en.wikipedia.org/wiki/Fiat_money For those who'd like to brush up on what that actually means there ya go. So our money has no value unto itself. It's value is based on the faith placed in our system. The promise that we will produce tomorrow, and there will be someone interested in what we will produce.  Many people have a problem with this type of money, they prefer a currency backed by gold, silver, energy. Something with intrinsic value. I understand why people would desire this as the currency is more stable, and less vulnerable to manipulation. I don't have a problem with it, if your system is sound, the money is sound, even if backed by faith. The Federal Reserve, and fractional reserve banking is where our money comes from. This is where our biggest problems start. http://en.wikipedia.org/wiki/Federal_Reserve_System http://en.wikipedia.org/wiki/Fractional_reserve_banking The basic problem our system has interest on currency creation. Money doesn't exist until someone borrows it. This seems a bit off, and it is. Our banks create something from nothing, then charge for it. This creates a problem where eventually everything ends up being owned by the banks. It also puts in place the tools to manipulate boom, and bust cycles to accelerate the process. How can this be fixed? Easy, no interest on currency creation, and 100% reserve banking. As always, these are only ideas. Jack aka PanseyBard