In the Fed's criminal system, all money is created out of thin air and then 'lent' to the government, at interest. It's a debt based system (usury) and the Federal Reserve is a privately owned cartel.
The US government has the power to create its own money interest free, but gave up this ability when the Federal Reserve Act was swindled into law in 1913.
I think the 2008 bailout was a unique situation where the money was just shuffled around between the co-parties and the Derivatives were 'zeroed out'.
The model for the US Fed was the Bank of England. These are parasitic skimming operations, but much worse because the central bank quickly gains control over the entire government and economy. That's why Rothschild said -
“Let me issue and control a nation’s money and I care not who writes the laws.” Mayer Amschel Rothschild (1744-1812), founder of the House of Rothschild.
“The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.” The Rothschild brothers of London writing to associates in New York, 1863.
