I think the mid level bankers assume dollar world reserve currency. Trade in oil? Sell/buy in dollars. Let Iran get busted for selling in Euros.
As for other things, the ONLY thing fed income tax pays for is INTEREST on created money, nothing more. The housing sub primes only did what they were allowed to-sell loans to those who couldn't afford them. When the margin call comes up, they can confiscate the house(compensate? sorta) for collateral. Then houses are sold by the thousand, further depressing the value, leading to more seizures. Like Emminent Domain on steroids. It all collapses into the hands of the central bank. I heard on early news(WBBM[!]) foreigners are buying up our housing like no tomottow.
The whole debt crunch occurs because the Fed prints a dollar and charges 7%(prime lending rate) for its use. So, if we rounded up all the dollars in existance, we would still owe the prime. Pass cost along smaller banks, which pass it on finally to us. The banks need a pyramid scheme to keep the money flowing, they take your bank account, knowing nobody really empties it out, and loans up to 80% of it to someone else, and the bank keeps the interest on repayment. This is why savings and checking accounts don't pay interest anymore, because the bank vacuums it all up already.
I saw somewhere this was the real reason we went to war with Brittain, they kept charging us interest on bank notes. I haven't heard it said except once in Zeitgiest I think.
Anyway, the net effect is counterfeit dollars inflating, sticking us with the debt. I have only gotten interested lately about financial system, and it stinks to high heaven. If you can defraud the public in economics, you can with an election