THE FEDERAL RESERVE FOR DUMMIES
Submitted by GNL for Olde Reb
Olde Reb - I took the Liberty of submitting this to TBP since below the article it reads..."*This essay is not copyrighted. Feel free to distribute."
“What difference does an increase in the National Debt make? We owe it to ourselves.” virtually every congress-critter has declared. Such a paraphrased program gives the federal government/ congress purchasing power not previously available—to buy votes from home. Unfortunately, the inflation created dilutes the purchasing power and value of assets owned by individuals. The system also conceals the immense transfer of value to bankers, which has justified the intense subterfuge and arm-twisting necessary for the Fed’s creation—that this paper exposes. The inherent destructive forces, evidenced by historic Rothschild banking1 and mathematical analysis, are also identified.
The 19th century Rothschild banks established a line of credit for the King provided he pledged collateral with a written promise to pay gold with interest to the bearer at a time in the future. The book-entry Rothschild credit was used to satisfy obligations incurred by the king. The credit continued to be circulated in the kingdom between merchants. The bankers sold the king’s promise to investors for hoarded gold. The promise (security) was renewed by the bank on its maturing date and became perpetually rolled-over. 2
VOILA !!! The king made the suppliers of services happy with Rothschild credit; the bankers had the gold from investors; the investors gained interest on their assets and a promise the king would eventually return their gold—which would never happen.3 Everything went smoothly as long as the bankers could sell the promise and the investors, or merchants, did not demand the gold.4 The king would pay the interest with more credit from the bank so the credit cost nothing. The schemes stole the wealth from the people with its book-entry fiat money5 until the people brought a catastrophic climax.6
The Federal Reserve system does the same thing with the U.S. government’s deficit spending. The banking wizard is hiding behind Frank Baum’s curtain of the government image Federal Reserve marquee7 as obscurant to any public inquiry.8
The Federal Reserve Bank of New York will grant credit (not “create money”) in an account of the U.S. government in an amount that the government will pledge. 9 The government will expend the book-entry-credit account (deficit spending) to pay for goods and services consumed by the government. The suppliers are content. Evidence that the supplier has received a credit voucher is obvious. The heading of the currency given to the supplier by a local commercial bank is Federal Reserve Note; i.e., a debt obligation of the Federal Reserve. Historically, it was identified to be redeemable for gold, silver, or lawful money. It is now identified as a “tender” (substitute) required by law to be accepted for an imprinted number of dollars. What you have is what you get. [It is touted to the public as a loan.] 10
To sell the promise from the government at the highest price, the Federal Reserve (as fiscal agent for the government) will hold an auction but will imply it is an auction by the government.11 Acceptance of bids, determining the interest rate, and the amount of deficit spending permitted is controlled by the BOG.12 Government regulations establish the funds from the auctions are controlled exclusively by the FRBNY; i.e., a franchisee of the BOG13. 14
The roll-over of approximately $12 trillion debt from prior years (publicly held maturing) is annually auctioned and disbursed by the FRBNY. The approximate $1 trillion auctioned for deficit spending is evidenced by TreasuryDirect as “new cash.” 15 [Currently new cash can be 100% to a negative (input) of the issue.] Since all values are determined by the Fed, they must be given to TD.
The difference in handling of the two accounts is the supreme camouflage. Funds for roll-over securities are credited by the FRBNY to a government account. The FRBNY then pays the Primary Dealers among others (from the government account) for their task in collecting the maturing securities from the public. There is no increase in the National Debt nor is there any inflation as a result from these transactions.
If the funds from deficit spending securities (new cash) were to be used in redeeming Treasury securities in the market (i.e., paid by the FRBNY for government expenses), it would eliminate any increase in the National Debt. It would, in effect, buy back the securities that created the debt. It would also eliminate any increase in money in circulation (inflation). That clearly does not occur. Request for documentation from TreasuryDirect as to the destination of the funds are ignored.
WHERE DO FUNDS FROM THE AUCTIONS OF DEFICIT SPENDING SECURITIES GO?
The Primary Dealers receive the bulk of auction funds for their task in redeeming maturing securities. If the Primary Dealers include shareholders of a privately held incorporated Board of Governors of the Federal Reserve, they would not have to reveal corporate records.16 The commingling of new cash funds could be completely hidden from view. 17 The deficit spending amount 18 would be clear profit for the owners of the BOG.19 No other destination of the funds appears viable.
The statutory charter of the Federal Reserve stipulates profit of the operation belongs to the government. 20 No consideration appears to be received by the government for the funds. Consideration for commercial bank loans involve a risk; such a condition does not appear applicable to the instant action.
Each annual trillion dollars of deficit spending transfers $3 billion DAILY for an entire year to the unidentified owners of the Board of Governors. The recent trillion dollars of deficit spending in one month transfers $34 billion daily for four weeks. The source of wealth inequality becomes obvious. If the securities can not be auctioned at an acceptable price, they accumulate on the Fed’s balance sheet. They would then appear to become a claim by the Fed against the taxpayers.
An abundance of such covert funds would go a long way to advance David Rockefeller’s utopian world government identified in his autobiography MEMOIRS. The project was mentioned decades earlier by Carroll Quigley in TRAGEDY AND HOPE. Funds from Wall Street could be used to dominate foreign nations as documented by John Perkins in CONFESSIONS OF ECONOMIC HIT MAN and William Blum in KILLING HOPE; CIA AND U.S. MILITARY INTERVENTIONS. Unused funds could be laundered in the stock or bond market. 21
The proposed Goldman Sach’s government budget (whoops, Trump’s budget) includes huge deficit spending increases (increased military spending with cuts in social programs) with unrealistic increases in national productive/tax base.22 This is the same scheme Wall Street and the CIA have used to bankrupt other nations for four decades. 23 The psychopathic Wall Street warmongers demand a humongous deficit busting military expenditure, but this statement may reverse cause and effect. 24 Douglas Valentine identifies chaos by U.S. elements in foreign nations is being duplicated in the 50 states.25 Whether this involves the development of the United Nations, NATO, drugs, or a virus26 depends on the observer.
Bankruptcy of the Nation is inherent. The FR Ponzi scheme creates an expanding National Debt with no possible way to pay it off. The principle of a ‘loan’ is created by deficit spending. [Notice that the ‘loan’ (sic, credit that is never negated) is from the Federal Reserve system but the taxpayers have become responsible for it.] The required interest to pay it off is never created. Only more debt, with the new principal being used to pay the prior interest, delays the Ponzi’s collapse. The growth required to perpetuate such a scheme, of interest upon interest upon interest, is exponential as evidenced in any graph of the National Debt. A contract that cannot be culminated is an act of fraud and is void from its inception.
Academic centers, MSM, and publishers fear retribution for exposure.
Unrelated use of the Fed’s new Special Purpose Vehicles (SPV) program to sell Wall Street’s trash to the Treasury Department (read Stephen Mnuchin of Goldman Sachs) at inflated prices to procrastinate bankruptcy of Wall Street banks will additionally balloon the national debt but will be used to avoid bankruptcy of Wall Street banks. 27 BlackRock, allegedly owned by insiders, is central to the scam. 28 Unrelenting access to government funds, while the tax base is destroyed by compelled national unemployment and corporate bankruptcies by a created virus29, is a textbook recipe for insolvency.
If the scheme is not altered, Wall Street internal memos identify the “ultimate goal” is to collect on the $24 trillion National Debt. 30 During national bankruptcy, the FRBNY will handle redemption of the PD’s tendered securities they have purchased in the market for pennies. They will demand face value from the U.S. Treasury; i.e., a financial rape of the nation. They are all one clan. Hello Greece and a U.S. troika controlled by financial entities.31
National bankruptcy would duplicate the Greek chaos within the United States.32 The financiers’ objective in Greece 33 is not to exploit, but is to destroy the nation. 34 Indeed, national sovereignty has been acquiesced by Greece to the Troika (financiers) as the terminal end of Goldman Sach’s “shitty” three billion Euro debt. 35
Get ready to kiss your 401(k), your government benefits, your pension, and your bank accounts goodbye, with strikes prohibited, health care costs escalated, perpetual war, mass layoffs (including government personnel), and economic chaos—among other dire occurrences. The economic chaos initiated by the virus, which has served to destroy the tax base and make the budget unsustainable, may be only the prelude.
The U.S. has four options:
The entire situation can be ignored with the public meekly submitting to Wall Street’s collection of the fraudulent $24 trillion National Debt and accept the fate of Greece [Greece has surrendered national sovereignty control to Goldman Sachs/Troika. Approval by Troika (financiers) is required for all government actions.] The New World Order will become established.
or
They can assert public pressure on congress-critters to audit relevant accounts and investigate Wall Street. The GAO has authority to audit the handling of government funds by any entity. 36 It has made at least two reviews of the FRBNY’s handling of funds [but not audits] from auctions of Treasury securities. The FRBNY has exclusive handing of such funds. Ref. 31 CFR 375.3. All that is required for the GAO to review the handling of government funds is a request by a Congressional committee. Unfortunately, it is rumored that votes can be purchased as cheaply as $50,000.
or
Citizens can use the FOIA37 to demand relevant official Fed documents for analysis as affirmed by the Second Circuit Federal appellate court.38
or
Torches and Pitchforks.
It all depends on how submissive the American people have become.
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*This essay is not copyrighted. Feel free to distribute.
My dating life is like a Bank Account. I don’t have a lot of money so I generate very little interest.
This is all I know about how money works.
Stucky, In today’s world of zero interest, not even someone with a lot of money earns much interest. $100,000 will get you about $1/mo.
I had $770.00 that came to me every month as debt monies paid for some land that was sold. The borrower paid off the note and I asked how much money invested would I need to garner a monthly return of $770.00 for ten years. The answer was somewhere around $270,000.00 or more, I can’t remember exactly.
I no longer pay attention to the FEDERAL DEBT because it is bullshit. The printers go brrrr and the monies appear and that is that. Nothing I can do about it, just use what you can while you can and quit worrying about the rest. Japan is still going strong after how many years now? The countries that get truly screwed are those that borrow from the IMF and World Bank.
Interest on the National Debt is relatively insignificent. The TBTF New York banks [as alleged covert corp owners of the BOG] receive the PRINCIPAL of the National Debt.
The gain [profit] by Wall Street is not the interest; it is the principal of deficit spending; i.e., over $1 trillion annually. With Stimulus spending, over $2 trillion annually.
The bottom line is the FRBNY receives Treasury securities in the amount of all deficit spending. That security is part of the $13 trillion auctioned by the FRBNY and becomes identified as “new cash” on TreasuryDirect Institutional tabulations. The FRBNY then [allegedly] sends the amount to the [covert] owners of the BOG, Inc. [i.e., select Primary Dealers] co-mingled with funds for rolling-over redeemed T-securities. Ref. 31 CFR 375.3.
Legally, all profit of the FR belongs to the US government.
Best explanation of the Fed/Treasury SCAM that I’ve read in a long time. Remember folks, everything is a business model AND follow the money.
Just Sayin’
From “Rancho Deluxe” (circa 1976 or so):
Harry Dean Stanton: “How’d you catch us?” (rustling a semi load of cattle for Jeff Bridges & Sam Waterson)
Slim Pickens: “All large scale crime is always an inside job.”
Slim’s “daughter” turned out to be his honey pie who seduced Harry Dean. He spilled his guts to her of the caper.
Nuff sed.
Who knows what the actual numbers are but the FED has created over 10 new programs this year to buy all the junk paper floating around to the tune of $ 120 billion dollars a month on top of the already existing debt.
We have existing deficits approaching $ 28 TRILLION dollars plus at a minimum a “missing” $25 trillion amount which may far exceed $40 trillion.
The unimaginable numbers and perversity of this can’t be comprehended.
“Bezos, the richest man in the world”, hardly. He’s in the bush leagues. Rothschild’s own at least a part of each of the world’s 149(?) Central Banks and have been the world’s bankers for over 200 years. This must be worth over $100 trillion.
The world would do well to see every central banker hanging upside down from lamp posts. The devastation, death and misery they have caused the world is also unimaginable.
G.R.E.E.D and intellectualism have done more harm than anything else.
https://www.youtube.com/watch?v=bmKLUJ0_tUM
•Dec 19, 2020
Investment advisor and former Assistant Secretary of Housing Catherine Austin Fitts says the reset is “the end of currencies.” She goes on to say, “It’s the death of currencies. Currency is something that is liquid. Currency is something I can put in my pocket and walk away. This is a digital control system. This is a credit at the company store. You will be given a credit at the company store, and if you do what you are told, you can buy things at the company store, but you can’t start your own store. That’s what we are watching right now in the U.S. economy. This is how it works. The insiders and their businesses are deemed essential and can stay open. Then they can do a series of things to shut down all the independent people and herd all those cash flows into theirs. So, you can’t go to church and you can’t sing, but you can stream Netflix. You can go to Costco. You can go to Walmart. . . . If the Fed and New York money center banks can make money from it, it’s essential, and you can do it. They can borrow from the Fed at 0%, and our credit cards cost 16%. This is how this works. So, this is economic warfare, and it’s designed to destroy the independent producer
Good article, but it is worse than that and actually simpler to understand if you Dont go into the banking lingo.
Say you are in a neighborhood closed off from others (borders/trade agreements). In this place a mafia comes in and begins to charge protection fees. Perhaps originally the medium of exchange was an asset like gold. With a finite number of stores the racket only makes so much money.
A guy comes along and has a printing press that cant be duplicated and he will print money for the mob. The mob (by force) says all business and banks in the area can only use this money. The mob forces all places to exchange their gold for this printed money.
The mob has to pay the printer for “services”. The mob finds out that their is still only so many business to take fees from. The printer tells them he will print “extra” money for a fee and give it to the mob, but additionally the printer says he can give the banks “extra” money to give to the people for a fee.
The mob thinks this is great, “more money”. The banks charge “interest” on loans to pay the “fees”. Only thing is that the people have to find a way to get more out of real work to pay off interest that was printed from nothing. This is difficult and often leads to bankruptcy.
On top of this, if more money is in the neighborhood but the number of goods to purchase doesnt increase as well, price go up…. Actual purchases require the same relative portion of printed money. This is currency debasement. Whats worse is that if other neighborhoods discover how easy it is to print money they wont want to use you currency in exchange…this actually results in hyperinflation.
The hyperinflation is countered, first by slowly forcing other neighborhoods to take the currency you print (other central banks) and second by the mob offering to exchange the fees they owe the printer to other neighborhoods at a rate of interest. Basically its the “I’ll gladly pay you tues for a hamburger today”. The printer is happy because he collects regardless and the mob os happy because they will collect more protection fees to pay off the other neighbors or simply try to sell that debt to a different neighbor.
This continues until you no longer have neighborhoods that can be force to tale the currency or neighbors willing to buy you debt. At this point only the printer of the money can buy you debt…for a fee
Basically the Fed does as follows:
1. Print monopoly money in the basement.
2. Through money laundering schemes give the money to productive people. They accumulate wealth that you pilfer out their back door through inflation.
3. Purchase real assets and accumulate wealth
with the pilfered money.
4. Rinse and repeat.
Good scam,Huh?
I am glad you like the article. I send it and others writings to websites where I can find an address. This copy [from unknown source. There are several copies circulated.] was obviously sent on a ‘submission form’ that stripped the footnotes. I would be glad to send the footnotes.
An early version with footnotes is at https://ppjg.me/2019/11/18/the-federal-reserve-a-different-view. FEDERAL RESERVE; A DIFFERENT VIEW
Some readers apparently do not recognize the conclusion is that Wall Street financial centers are receiving under-the-table $4 billion DAILY from the auctions of deficit spending Treasury securities.
Footnotes with support citations are available at