@robmandu
Thanks for the wikipedia link. I understand that interest is charging for a service. From your link, here are the services provided from the Federal Reserve:
Current functions of the Federal Reserve System include:[13][15]
* To address the problem of banking panics
* To serve as the central bank for the United States
* To strike a balance between private interests of banks and the centralized responsibility of government
o To supervise and regulate banking institutions
o To protect the credit rights of consumers
* To manage the nation’s money supply through monetary policy to achieve the sometimes conflicting goals of
o maximum employment
o stable prices, including prevention of either inflation or deflation[16]
o moderate long-term interest rates
* To maintain the stability of the financial system and contain systemic risk in financial markets
* To provide financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation’s payments system
o To facilitate the exchange of payments among regions
o To respond to local liquidity needs
* To strengthen U.S. standing in the world economy
Why must we still pay interest, when the services are not being provided properly? If one of the services that they are providing, is to manage the monetary supply, which they do by the creation of debt, where does the money come from to pay the interest? Isn’t the monetary service they are providing, basically a service of creating a dollar out of thin air?