Submitted by JC
Alasdair Macleod in THE INTEREST RATE DILEMMA seems to miss the point. [Ref. https://alasdairmacleod.
THE FEDERAL RESERVE
BEHIND THE CURTAIN
Lewis Carroll gave the public a walk down the Yellow Brick Road of economics 150 years ago and exposed the wizard distorting his image. Today, the Federal Reserve has, for a century, operated a smokescreen of the government borrowing money. It is a Ponzi scheme—THAT CAN NEVER BE PAID OFF— destined for exponential bankruptcy and with extreme hidden profit for the instigators. The fiat principal of a ‘loan’ is created by issuing a deficit spending Treasury security, but the ‘interest’ to pay it off does not exist. Let us walk down that yellow brick road once more.
Our walk, to expose covert profit, begins with the U.S. Treasury sending Treasury securities, as authorized by Congress for Deficit Spending [DS], to the Federal Reserve Bank of New York [Bank]. The Bank, operating as a fiscal agent for the government, credits a government ledger with fiat book-created value, in the amount of the security. The Treasury disperses value for bills from the account and merchants deposit the checks in commercial banks. Voila!!! The market value has just increased and inflation has occurred.
But what has happened to the DS securities at the Bank ? The Bank would like to sell them, but how ? The Bank walks them down the hall to the department that is preparing securities for auctions to redeem the securities that have matured from prior years. The average life of a security is about two years and is perpetually rolled over.
The DS security is divided into components and added to redeeming securities for auctions. TreasuryDirect Institutional tabulations, supplied by the Bank, have listed Redeeming while the DS value is listed as ‘New Cash.’ Redeeming, in large part, involves Primary Dealers who are TBTF New York City banks. The auction funds, which currently amount to >$15 trillion annually, are handled exclusively by the Bank and have never been audited. {They are client accounts — not operational accounts.] Ref. 31 CFR §375.3.
What happens to the New Cash ? Repeated inquiries to TreasuryDirect are not helpful. There is no documentation as to their destination. They certainly do not appear as received on any government account. If they disappeared by buying securities, it would eliminate any increase in the National Debt and would negate any inflation. If they do not go to the government. then they must go to a private entity—such as shareholders of a closely held FR Board of Governors, Inc.? Are these potential recipients of $34 Trillion in New Cash the same bankers who conspired on Jekyll Island to create the Fed ?
With $34 Trillion, I think I could laundry funds and purchase ownership of all Fortune 500 firms [via BlackRock, CFR and Vanguard]; dominate countless nations using the IMF, CIA, US military and sanctions; establish the UN and WHO for more gov control and to create international chaos with global pandemics; overthrow a Constitutional Republic with a Southern invasion and a Soros corrupt political structure; and promote a global Great Reset; among other items.
The supreme nefarious act is to get the taxpayers responsible for the book-entry credit that has been floated by the Bank. By spurious legislation, the credit has been labeled as a legal tender; i.e., the taxpayers are responsible for the fraud that has been perpetuated. When the Ponzi scheme implodes, the Fed is wanting the deplorables to be liable for the value. This appears to be the method Benjamin Ginsberg describes historic Rothschild banks collapsed and bankrupt European nations in his FATAL EMBRACE book.
The GAO has standing authority to audit any account of government funds upon congressional direction without additional legislation. FOIA is also valid for any official record of any FR bank record. Ref. Bloomberg v Fed, aff’d, 601 F.3d 143 (2d Cir. 2010).