why does the US debt held by the Fed even mean anything?

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Correct me if I'm wrong, but i think it means those private banks that make up the Fed have a forever claim on the labor and tax dollars of american citizens

seems that way, but that claim is immoral.

Its pretty sinister when you stop to think about it: plebs' lives and livelihoods are the collateral for the debt

It was an evil genius level societal control lever.