Big Head Press


L. Neil Smith's
THE LIBERTARIAN ENTERPRISE
Number 775, June 15, 2014

The very sort of evil that our fathers and
grandfathers fought and bled and died to stop is
fully in control of the United States Government.


Previous Previous Table of Contents Contents Next Next

Who Benefits from Deficit Spending?
by Jim Carter
jscarter@fairpoint.net

Bookmark and Share

Special to L. Neil Smith's The Libertarian Enterprise

The government incurs a trillion dollar increase in the National Debt annually to spend money it does not have so congress-critters can fund pork barrel projects back home and get reelected. Is theft from the public by inflation (and perpetual interest paid on a loan that was not made and is impossible to pay off) for the "freebies" the end of the scam?? Not hardly.

For congress to get the book entry money created on the government's bank account, the Treasury Department must send a Treasury security to the FRBNY. Then the FR will honor checks on the account and the fiat money is added to the economic system (inflation occurs).

But what happens to the security received by the FRBNY (as collateral for a loan) ?? Why, the bank auctions it off to the Primary Dealers and pretends it has been done by the Treasury Department. The funds go to the FRBNY.

Approximately $7 trillion of the National Debt is rolled over by auctioned securities annually along with about one trillion dollars of new deficit spending securities. All of the funds are handled exclusively by the FRBNY [confirmed by government and FR websites]. The $7 trillion is credited to government accounts to pay off owners of redeemed securities (as collected by the Primary Dealers with payment to the PDs). There is no inflation or increase in the national debt incurred from the roll over.

If the one trillion dollars from auctioned deficit spending securities was credited to the government, there would be no inflation or increase in the National Debt. Where does the money go??

Like the prosecutor says: "Follow the money trail." Seven trillion dollars goes to the PDs. One more trillion can be added to the cover and never be noticed. The auction accounts receipts and disbursements have never been audited.

But if the trillion dollars went to the Primary Dealers, would that be repaying the owners of the Fed (who own and control the BOG) for the "loan" they had given the government so the government could spend the money they did not have?

That is the scam that was used by the Rothschild family in Europe centuries ago and was resurrected on Jekyll Island in 1912. There is no consideration put up for the pretended "loan." If consideration (money) had been put up, there would not be an increase in the amount of money in circulation (inflation). The transfer of money to the PDs from the auctioned deficit spending securities is pure profit.

By law, all profit of the Fed belongs to the government. Hiding money that belongs to the government is a crime. The Federal Reserve embezzles one trillion dollars annually from the government. Since 1913, they have embezzled a total of $17 trillion.

So who will prosecute the Fed ? For an answer to that question, you might ask your congress-critter.


For an extended analysis, see [this].

For usage of the embezzled money, see [this].


Was that worth reading?
Then why not:


payment type


TLE AFFILIATE

Big Head Press