The FRBNY's exclusive handling of accounting records of $8 trillion Treasury security auctions annually conceal a trillion dollar profit to the Fed BOG. The profit is mingled with payments to the Primary Dealers redeeming securities.
The FRBNY's exclusive handling of accounting records of $8 trillion Treasury security auctions annually conceal a trillion dollar profit to the Fed BOG. The profit is mingled with payments to the Primary Dealers redeeming securities.
.Mr. Ben Bernanke recently told the Senate Banking committee the government must takeaction (deficit spending) to prevent an economic collapse. Did he tell Congress thatevery dollar of deficit spending would be profit for the Fed/BOG that would be hidden bythe FRBNY in apparent violation of the law ??A popular concept is that the government will “borrow” from the Federal Reserve. Thisinvolves giving a Treasury security (bill, bond, or note) to the Fed as collateral and theFed will credit an account of the government in the amount of the security. Thegovernment then spends the (book-entry) funds while the Fed (theoretically) holds thecollateral; i.e. deficit spending. Voila !! Additional (fiat) money has been injected intothe economy of the Nation which, in the projection of Mr. Bernanke, may stimulate theeconomy. (Actually, it continues the inflationary bubble started in 1913. Ref. RIP OFFBY THE FEDERAL RESERVE,www.scribd.com/doc/48194264. )Observe the Fed holds the collateral. When the collateral matures, government must paythe Fed to redeem the security. The fiat money spent by government must be re-acquiredand paid to the Fed. But the money is long gone and the bank account is zero.So the Fed can sell the collateral at the auctions of Treasury securities (if it has notalready been auctioned). If the funds went to the government, the Fed would essentiallygive up the security. Bankers are not known to generously give up billions of dollars.Also, if the funds went to the government, they would be used to pay off the debt of thesecurity that had been issued and that would negate the existence of the debt. Further, itwould eliminate any inflation from increased currency in circulation. Since the nationaldebt consistently increases and inflation is prevenient, the funds from securities sold for deficit spending cannot go to the government.The Federal Reserve Bank of New York has the responsibility of handling all accountingand funds for auctions of Treasury securities. The funds from deficit spending go into theFRBNY but they are not recorded as coming out. These funds are not included in theANNUAL REPORT TO CONGRESS nor are they dispensed in any public recordReceipts from the 2010 auctions totaled $8.4 trillion. $7 trillion was used to roll-over preexisting securities (without increasing the national debt) and $1.4 trillion was receivedfrom deficit spending as detailed above. That $1.4 trillion ($4 billion every day--7/52)disappeared in the catacombs of the FRBNY. That is $4000 annually for every man,woman, and child in the United States.The only feasible conclusion is that the funds go to the owners of the BOG (assumed to be the Primary Dealers) mingled with the funds to redeem maturing securities.Profit of the Fed legally belongs to the government. Concealment of funds belonging tothe government is identified as embezzlement and subject to one year incarceration per count. Ref. 18 USC 641. Nonpayment of monies belonging to the government is subject
hmmmm, so why isn't anything being done on the criminal end of this to the federal reserve gangsters? wheres the protection to the american people? why are these criminals still living?
