Powell told insiders, and then the public, that the Fed was going to ‘roll off’ some of the accumulated Treasury securities held by the Fed which is inherently deflationary. And it caused chaos. Just as deficit spending creates inflationary credit, reducing the value of the national debt is deflationary.
It is, of course, impossible to pay off the national debt. The principle of the ‘loan’ is increased by the issuance; the interest required to service the ‘loan’ is never created. The ‘roll off’ retires securities instead of perpetually renewing them. {The owners of the Fed cannot get their grocer to accept securities—the grocer wants cash.}
Normally the Fed reduces their assets by auctions, but low interest rates in periods of inflation eliminates bids. Increasing the interest rate crashes construction and the stock market [which is already plummeting]. So the Fed is going to sell the securities to the government without even asking the government—and will call it ‘roll off.’ When the Fed gets to set both the bid and ask price, and the transaction is never audited, we can rest assured they will get a good deal.
The FRBNY has exclusive control over government accounts [as fiscal agent for the government] to redeem T-securities. Ref. 31 USC 375.3. Those accounts, which currently handle over $14 trillion annually, from auctions are responsible for redeeming maturing securities usually collected by Primary Dealers. The accounts have never been audited—despite misleading statements by the CRS. The recipients are client accounts, not operational accounts.
Mr. Powell has determined money from those accounts would be better used liquidating the assets of the Fed than redeeming securities held by insurance companies, state reserve funds, commercial bank reserves, etc. The government must make up any shortage by deficit spending.
You will never see the transfer of funds from those government accounts—but you will see the Fed’s balance sheet assets decrease—without the funds from the government’s purchases. The National Debt will decrease unless the books are doctored.
The funds will be covertly transferred to the shareholders of the FRBOG, Inc, [as profit], alleged to be a closely held private corporation that does not have to file corporate records with the SEC. (Visit: genzconservative period com, search 4 FEDERAL RESERVE FOR DUMMIES.)
Globalists have an interest in an economic collapse. The IMF [read Wall Street] has loans out to 86 nations that will default in a continued economic collapse. With the USA included, it is 87 nations.
The Fed deliberately crashed the economy by calling loans in 1929 to force gold out of private hoards. Are they planning for a digital currency?
Submitted by JC