That's the bit I'm after. Are you telling me that the federal Reserve loans $1000 of worthless paper and then expects back a $1000+interest of that same worthless paper?
See there is a reason we are not on gold standard, that's because the '+interest" part was paid in exactly that, gold and then it run out. That is why I'm asking what are we paying the interest with now that the gold is gone? It cannot be with the worthless paper.