Who owe who what?

Ok, so, we sell our debt to the Federal Reserve, they then print more money, we then have to pay them interest on the debt we owe them, but they in turn pay us the majority of their profits back to the US .gov each year.

Does anyone else think this is screwed up?

"We owe, like, $1.6 trillion because the Federal Reserve bought that debt, so we have to work hard to pay the interest to the Federal Reserve," Paul said. "We don't, I mean, they're nobody; why do we have to pay them off?"  Congressman Ron Paul

However, the Fed returns the interest earned on those holdings to the federal government. Last year, the Fed sent $79 billion to the Treasury.