Wars. jet fighters and other military equipment and defense projects. welfare. various government operations. etc
That's interest the Treasury owes on bonds they sold. Not on FRNs.
The fed purchases plenty of those securities. Again, any revenue generated by bond sales represents debt to be paid by the US government and that means the US tax payers. Every dollar in circulation represents an IOU. That is the nature of our system.
No it isn't.
Your government disagrees.
In 1936, Robert H. Hemphill, Credit Manager of the Federal Reserve Bank of Atlanta, stated:
"If all the bank loans were paid, no one could have a bank deposit, and there would not be a dollar of coin or currency in circulation. This is a staggering thought. We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon."
In other words, folks, every US dollar represented in the denomination of Federal Reserve Notes, in circulation today, represents a debt owed to the Federal Reserve System. The Federal Reserve System only issues money when a rate of return is paid on that money to keep it in circulation. And so, when the Federal Reserve continues to infuse additional dollars into the monetary system, such as it is doing in amounts previously unheard of, each additional dollar in circulation yielding a return on its par value to the Federal Reserve System, that return must come from somewhere. That "somewhere' is your pocket and mine, and anyone who holds Federal Reserve dollars. Since the money to pay the interest back to the Fed System is never created, interest to the Fed System can only be paid by removing enough Fed Dollars already borrowed into circulation to pay the specified interest rate. But the principle owed is not removed! And so contrary to what one might believe, bank interest is never paid out of a debtor's assets. Bank interest is paid by borrowing more funds from the Federal Reserve. You may not be the one borrowing to pay the interest, but SOMEONE is. In this system, the American economy, over time, is being owned more and more by the Federal Reserve, and less and less by private equity.
couldn't have said it better myself.