The Federal Reserve is one of the most powerful institutions destroying the U.S. economy and facilitating the never-ending expansion of government power and war, explains economist and Mises Institute President Thomas DiLorenzo in this interview on Behind The Deep State with The New American magazine’s Alex Newman.
DiLorenzo, a former economics professor and author of many books on the subject, also goes into the shadowy origins of the privately owned bank as mega-bankers and power elites gathered in secret to create it. DiLorenzo explains in detail how the Fed’s manipulation of interest rates is extremely destructive. He also highlights the fact that its inflationary currency creation is hurting everyday people for the benefit of the powerful.
The Fed’s destructive role must be understood, and sound money must be restored, he argues.
Is this of interest ?? Jim
OPERATION OF THE FEDERAL RESERVE
The narrative TreasuryDirect tells the public is “the federal government borrows money by selling U.S. Treasury bonds, bills, and other securities.” For Deficit Spending, the purchase is made with a book-entry of fiat credit identified as Federal Reserve Notes from the Federal Reserve Bank of New York acting as a fiscal agent of the government. The Fed has no assets, assignable to the government, except that which has been received from the US government. The fiat credit received by the government is transferred to govt suppliers who deposit the vouchers in commercial banks. Inflationary credit is by this means added to the market.
The Treasury security, now the property of the Fed, and a debt of the United States, is destined to be sold. It is moved to the department that the Fed, acting as a fiscal agent, uses to prepare government Treasury securities for redeeming the approximate annual current $16 Trillion of maturing securities in the market. Primary Dealers have a major role in the collecting of maturing securities.
Whether it becomes a component of future securities, or it is auctioned as a separate security, is a matter of speculation. TreasuryDirect Institutional tabulations historically appeared to post auctioned securities with a new CUSIP number, the CUSIP number of the redeemed security, and listed a ‘New Cash’ component of a deficit spending security—with a CUSIP number ? The Fed does not wish to discuss it and the accounts have never been audited. The Federal Reserve Bank of New York has exclusive control of disbursements of the auction accounts and any related action to which it wishes to claim. Ref. 31 CFR § 375.3.
The ANNUAL REPORT TO CONGRESS audits the operational accounts of the Fed. The client accounts of security transactions are not included. The BOG sets the parameters for the audit.
The destination of the deficit spending value is never discussed. It is obviously an asset of the Fed. If it was used to buy Treasury securities in the market, that would negate any increase in the National Debt. Obviously that does not occur. No record that it has been gifted to the government has been found.
The Federal Reserve Board of Governors has total control over the 12 FR Bank franchises which are purchased by regional commercial banks. The BOG can terminate any of the 108 directors of the Banks without cause and without recourse. The BOG retains records of significant accounts of the franchised Banks. That the BOG operates as a closely held private corporation for profit with shareholders has never been denied. The classification of agency is not applicable to for-profit entities.
That the $36 Trillion value of auctioned deficit spending Treasury securities would be distributed to shareholders of the FRBOG, Inc., or some such corporation, appears suspect. All profit of the Fed legally belongs to the government.
The relevant records of sales/auctions of government Treasury securities by the Fed has been declared subject to audit by the GAO [as being government money involved] without additional legislation. The records are also declared subject to demand by FOIA in a Federal District Court case of Bloomberg v Federal Reserve and affirmed by the Second Circuit Appellate Court in 2010.
The Federal Reserve’s fiat credit used to buy the Treasury security from the government historically was identified as redeemable in gold, and then redeemable in lawful money. The rumor is that this never happened. In 1933, by bogus legislation, the credit became identified as a legal tender. By this means, a debt of a private entity became a debt of the residents of the United States. Ref: 31 USC §462. If 462 is found to have been legislated based on fraud, it could be voided at inception and the National Debt is a debt of the Rothschild Federal Reserve.
Any laundering of funds to globalist projects by WEF, IMF, vote rigging, Soro’s Foundation, border invasions, etc., is beyond this writing. It has been suggested the European Central Bank is patterned after the Fed.