Seemingly, every department's reason for existence is to expand itself. To finance this expansion, fedgov is borrowing 40 cents of every dollar it spends. Most of this money is borrowed from the Federal Reserve, in essense fedgov borrows from fedgov to finance fedgov. This will not end well. Am I missing something?
Yes you are. The Federal Reserve is a private bank owned by private bankers (like Citi) who own shares in it. It acts in the interest of these member banks