I truly wish it were as simple as abolishing the "Fed" and stopping all inflation.  Unfortunately, in a system that depends on credit that is lent with interest, deflation would be ruinous to many normal folks.  For example, right now, like most home-owners in Phoenix, AZ, we are underwater in our mortgage.  At first, our home more than doubled in value -- and we refinanced, taking out a modest sum (no where near the full value at that time) to build our master bathroom, and put in the front and back yards.  Now, the house has deflated in value to what we originally paid for it over 8 years ago, possibly it is worth less.  Doesn't seem that big of a deal, our payments have stayed the same and we can afford to live in our home.  However...what if everything deflated?  Sure, many things would cost less...but that means that wages would also deflate.  But the cost of a mortgage (or other installment loan) would not decrease, since it is based not on the market, but on a legal contract. 

I am not convinced that our current system is ideal.  (I've read about some novel ideas in the past year -- even one of a currency that deflated over time, to prevent hoarding and encourage money to flow through an economy.)  However, should our current system be dismantled with anything but great care, a huge amount of problems and misery may result.