$27 trillion questions

 In that our country's financial underpinnings are a runaway train, it needs to be asked, "What exactly is meant by the term 'national debt' and why must interest, determined by the private Federal Reserve (FR), be paid on it?" And the most important question is "where do those interest payments go?"

The FR was created in 1913 whereby the ordinary functions of the Treasury were given to private bankers. They invented the concept that they would be, not only the controllers, but the source of our nation's finances. The way it works is, if the government spends more than it takes in, the FR would 'loan' the govt money by printing it into existence and thereafter, the govt would be required to pay 'interest' on the 'loan' ad infinitum and that interest rate would be set by the FR. The explanation for this arrangement was that the FR was needed to regulate the availability of money to spur or retard the rate of growth to control inflation of the currency.

From where I am sitting, it doesn't get any better than this. It is as if the FR has a copyright on money simply because they print it. Not only that, they get to set the interest rate AND no one ever asks 'Who gets or where do those interest rate payments go?"

The concept of interest on a loan originated in the past when loans were the savings of other people and interest payments were the incentive to provide, administer, and insure the money being loaned from other people's savings. In contrast, the FR does not fund the govt from savings, but rather by printing bonds and adding numbers to the govt bank account.

Now consider how and why the 'creation of money' is a fundamental need of society and then it is clear that interest on the national debt is dubious at best. If there are 10 houses in a village and $100 in circulation, then the average house value is limited to $10. If the aggregate value of society doubles due to the productive activity of its workers, the amount of money in circulation must double to account for that accrued value. The fact that infusion of money is a 'loan' upon which interest must be paid will forever stand as the greatest hustle in history. The sooner this concept is challenged, the sooner our country can see the function of cash infusion as just a normal function of the Treasury not requiring the payment of trillions of dollars to a private cabal.

Lastly, allow me to speculate to what ends this FR racket has been exploited. For a century, interest payments have been made to the FR and is held as 'bonds'. In theory, these payments could be used to buy controlling interests in every significant corporation there is. While citizens invest in the 49% interest of corporations like Boeing, Lockheed, Amazon, and Facebook, the FR probably owns 51% of everything as the total amount of money that has been paid in national debt interest payments is clearly enough to own it all. It would also explain how essentially every single power center in the country seems to be of a like mind. Not a conservative in sight. Of course, this is speculation on my part, but two things are certain. The interest payments that have been made are enormous and vastly exceed any administrative costs of the FR, and no one knows where those payments have gone.

This is why the whole operating premise of the FR needs to be a preeminent topic of public conversation. The FR claims that this arrangement is how currency inflation must be managed. It seems more logical, that it could be controlled simply by the rate of capital infusion, without the charade that printed money must be paid for through the application of an interest rate.