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So Fed notes do not impose an obligation on the taxpayers,

Correct. The taxpayers do not owe me anything for the $20 bill in my pocket.

BUT, the Fed does not GIVE them to the government.

Correct.

Doesn't that mean the government has to PAY for them?

Yes, when the government wants to buy some FRNs, they have to pay for them. Kinda like you pay for FRNs by debiting your bank account at the ATM.

Isn't the government funded by taxpayers? Make no mistake sir, EVERY dollar that the Fed deposits in the government's checking account is a loan, repayable in full,

Yes, every dollar the government borrows must be repaid.

The fact that a privately owned bank has the power to create our medium of exchange and sell it back to us is the basis for any learned man's opposition to the Fed.

If you want to buy something, you have to pay for it. So what?

In response to: The fact that a privately owned bank has the power to create our medium of exchange and sell it back to us is the basis for any learned man's opposition to the Fed. You said: If you want to buy something, you have to pay for it. So what? The constiution says that congress shall have the power to "coin money, and regulate the value thereof". That means CONGRESS, not a private bank. If our government needs to buy something it has several choices to raise the funds to pay for it. It may tax us, which is unpopular and can end political careers, it may borrow it, or it may print the money and spend it into ciruclation, which is what Lincoln did to pay for the Civil War. This last option is so far beyond the understanding of most men, and on it's face so controversial because of the almost RABID opposition by the rich and powerful banking interest that make up the ruling class of our country. If you are a billionaire banker, in a position to influence the operation of government, does it not make sense that you will spare no effort to prevent government from printing it's own money? Of course you will. You would want to maintain the status quo, no matter how unjust, for as long as you possibly could. In todays world our government is limited to two options, taxing and borrowing. Deficit spending fuels more borrowing. Wars fuel more borrowing. Remove the profit motive from loaning governments money and you would quickly see the size and scope of governments stabilize and eventually start to shrink. Is that not the goal of every patriot Todd?