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The reason why the U.S. government is 36 trillion dollars in debt and our society as a whole is 102 trillion dollars in debt is because we have a system that was designed to create colossal amounts of debt. But if you ask most Americans about this, they cannot tell you what the Federal Reserve is or why it is at the heart of our economic problems. The following are 19 reasons why the Federal Reserve is at the heart of our economic problems. #1 The Federal Reserve is the central pillar of our debt-based financial system. When a new dollar is created, it is borrowed from the Private Central Federal Reserve—a private entity. And with the borrowed dollar comes debt in the form of interest.