A question for all you FED pros...

I'm writing an article and wanted to make sure I'm understanding how the National Debt and the FED works. So here are a couple of questions followed by the paragraph in the article.

1). Does our Federal Income Tax only go to pay off a portion of the debt created by the interest generated from the FED loaning money to the Government?

2). Do countries like China pick up the rest of the tab in the form of Treasury bonds?

3). Am I getting this paragraph right? Is it correct?

"What most people don't know is that the (non-federal) Federal Reserve actually loans money to the Government. The same way you take a loan from a bank to buy a house or car, the Government takes loans from the Federal Reserve. The catch is that it comes attached with interest. This results in our National Debt. Who pays a portion of our debt? We do with the money collected from our Federal Income Tax. Where does most of that money go? Right into the pockets of the bankers that hold stock in the FED. Who pays the rest of our debt? Countries such as China who buy it in the form of treasury bonds."



[edit on 30-7-2008 by Lazer]

they make pieces of paper that are worthless that cost them 3 cents( approx price) to print up. They are created out of thin air have no intrinsic value.
they are sold to America for 13% of their face value .
The IRS is a collection agency to make sure you pay your debt .
Neither the IRS or Federal Reserve are American public institutions.
quasi foreign institutions sucking your blood is what they are.

1) partially correct it also goes to pay the politicians.

2) China ,Russia, Japan,Europe , Canada among others ,are the owners of your debt . the money Borrowed through the sales of T bills and such instruments goes to pay your social programs and Govt. under takings like the war ,infrastructure repairs war industrial complex etc...

3)the last sentence is incorrect
It should read as follows

Who lends us the money that pays for the country's expenditures? Countries like China,Russia and Japan ,who buy financial instruments such as govt bonds.this gives these countries unprecedented leveraging power over America in the form of black mail to have our jobs sent over seas our businesses bought up and our way of life subverted.

4) you might want to also mention that the Govt has reached its limit preset by Congress and they have continuously had to raise their limits.

5) One way Americans can get rid of this unconstitutional FED and IRS
is to foreclose on your mortgages credit cards bills car loans etc..
American is the land of the free ,for as long as it is the land of the brave.

6) a word on the total debt and obligations might be a good idea it stands at 88 trillion dollars.also the deficit or federal budget over runs is now around
1/2 trillion I believe .

Hope I helped you out , I am a Canadian so take it for all its worth.
Good luck and Good night

That really helped out. Thanks! I'll send you the finale after its written. I'm writing this in an effort to alert as many people as possible who are unaware.

Still a bit confused...

1). So no amount of our income tax goes to paying for our infrastructure and such? It all goes to paying for the interest created by the Fed and to also pay polititians?

2). Our infrastructure is paid for by other countries like China by buying our treasury bonds (in other words they loan us money)?

3). Our National debt isn't created by the interest generated from the Fed it's actually created by treasury bonds sold to other countries?

4). From my previous understanding and from films like Freedom to Fascism the government borrows money from the Fed for things like War. So why do we even sell treasury bonds to other countries for infrastructure when we (as the elite bankers would have it) could just borrow even more money from the Fed?