[Pelham]

Actually first Treasury Secretary Alexander Hamilton came up with idea of the funded public debt back in 1789. He just did it with tariffs rather than an income tax. The idea is as old as the Constitution.

(a private entity of worldwide private bankers/investors from whom the US govt borrows money,)

Not exactly. The U.S. government borrows money from anyone who buys Treasury debt. If you have a savings bond or a T-bill, it's you. The Fed collects interest only on its own bond holdings, which pale in size to that of foreign central banks, "bond vigilantes", and any number of organizations that don't make as good a boogeyman as the Fed.

[takenoprisoner]

“The U.S. government borrows money from anyone who buys Treasury debt. If you have a savings bond or a T-bill, it’s you. The Fed collects interest only on its own bond holdings, which pale in size to that of foreign central banks, “bond vigilantes”, and any number of organizations that don’t make as good a boogeyman as the Fed.”

The fed govt borrows from the federal reserve system. It’s borrowing power may be somewhat based on t-bills and savings bonds. But the most important criteria is the ability of the US taxpayer to repay the debt to the federal reserve system(a private corporate entity.)