Well, there are a couple of issues that I fear you misunderstand. When you say (in regards to Iran nuking Israel) "I highly doubt it, Iran would benefit in no way shape or form by doing so, it would be an instant death wish", you're making the assumption that the people running Iran (as opposed to the majority of Iranian citizens) are calm, rational people. If we take them at their word, they actively want to wipe Israel off the map, and if it results in a world wide war of Islam against the "infidels", so much the better.
As far as the economy is concerned, the fact that you think things would be better if we went back to the days before Fed just shows that you've been given an incomplete set of data on which you've based your conclusions. Yes, it's true that if you look at the 100 years before the Fed, inflation over that entire period was very low, while it's averaged just over 3% in the 100 years after the Fed. But don't just look at the 100 year figures and base your conclusion on that.
Take a look at the year by year economic figures, and it paints a very different picture. In that 100 years, there were _6_ separate economic collapses (and not recessions like we've been in--they were more like the Great Depression), each with a period of high inflation, a collapse, and then deflation. And deflation kills a modern economy.
Japan got hit with a couple of years of deflation in the mid 90's, and they haven't completely climbed out of the hole yet. If the alternative to the Fed and an average of 3.1% inflation is an economy that collapses every 20 years, I'll take the Fed.
If you read Ron Paul's book then you come away with the feeling that he believes the world was a better place 50 years ago. It was for some, but not for most. His ideas about monetary policy and central banking ignore the reality of the modern world.
His ideas on foreign policy are great, but 1/2 of the country would never accept them. "Worthless fake money"? All money is symbolic.
You believe we are supposed to barter? Or trade gold coins? As the population of the world increased and technology advances, the world will grow smaller and economies will continue to become more intertwined whether we like it or not.
To preach isolationism for the largest economy in the world is just burying your head in the sand.