Not Understanding The Federal Reserve

I only have 7 minutes to type this so here goes. I have been searching, googling, and researching as much as I can about the federal reserve but I can not for the life of me understand it. I need someone to dumb it down for me on how this system works.

Inflation, creating money out of thin air, putting the US (Maybe other parts of the world too) in debt, profiting from war? How do they do it? I really would like to know in a simple fashion. I'm not sure if this has posted on ATS before, but if it has I probably already read about it, and didn't understand it which is why I'm asking about it here.

Thanks for your replies if this thread doesn't get closed.

*EDIT : Didn't mean to post this thread in this forum, I actually wouldn't even know where to post it anyway, so please move this thread to where its supposed to be.*

Since 1913:

The USA has money

The USA needs more money so it must borrow from the Fed

The USA pays back with interest, then having less money than it started with.

Now the USA must either borrow even more money and pay even more interest, or trim its budget (or grow faster than the compounding interest, and even still much of that growth is siphoned off by the Fed)

Since we continue to grow our budget beyond our wealth growth we continue to borrow more money and pay more interest.

Eventually the Fed owns every dollar in circulation. It's a pyramid scheme sold to us under the guise of stabalizing the economy, which is another farce as you can see the economy has been anything but stable since 1913.

If you stare at their charts long enough and fall for their fallacy, Appeal to Authority, you might fall for their pitch. I recommend Paul Krugman for that study.

I works a bit like war, if you actually understood it there would be no other option than to stop it. www.abovetopsecret.com... . There are a few other good movies and information around to help explain it. Take your time and keep up the homework and it will make sense, except for the stupidity of it all.