Ok, if you want to get into monetary policy, then sure, the Fed is responsible for the amount of circulation. They increase or decrease the amount based on a number of factors, but ultimately the GDP, i.e. the collective work of the US. So yeah, your work creates dollars.
You are completely 100% wrong on all points.
The Federal Reserve Bank has
nothing to do with the amount in circulation. (Go
here if you'd like to know what they really do)
GDP has
nothing to do with work. (It measures spending ONLY)
Work has
nothing to do with dollar creation.
And while I'm at it, this is wrong too:
It just doesn't make sense economically to spend BTC today when you know tomorrow it will be worth 15+ percent more. I'm sure people HAVE used them for goods and services, but not in this current environment where we're seeing at least a dollar a day increase in value.
First, no one
knows what anything will be worth tomorrow. And second, people do things all the time that don't make sense economically.
By the way, I would really like to get back to your insane (and I mean that clinically) notion that one currency is worth its production value, while another is worth its exchange value. In particular, I'd really love to hear how exchanging my work for dollars creates dollars (or at least gives them value, somehow) while exchanging my work for bitcoins does not.
[edit: fixed misplaced quote tag]