Irreducible and Stubborn Facts
Open Letter to Congress
by Jim Carter
Special to L. Neil Smith’s The Libertarian Enterprise
It is believed Congress has the authority to order an examination of any entity that handles government funds to verify their accuracy and for them to be free of malfeasance. It is assumed that the Federal Reserve Bank of New York (FRBNY), as held by two federal appellate courts to be privately owned corporations (but under the administrative and regulatory control of the BOG), falls under this legal manta.
The auctions of Treasury securities, currently about $10 trillion annually, allow Primary Dealers to submit bids electronically with the FRBNY (ref. [This Link]). The bank has exclusive control of “disbursement of all auction funds” and also over any related events they wish to claim. Ref. 31 CFR 375.3. Approximately $9 trillion is to roll-over maturing securities and $1 trillion covers deficit spending (“new cash”). Ref. [This Link].
The Primary Dealers collect a major portion of maturing securities which are sold to the government and they also buy a considerable portion of the newly auctioned securities for resale in the market. This replacement operation, which includes other participants, accounts for the $9 trillion with only small variation is value differences. It does not increase the National Debt nor does it increase the amount of currency in circulation (inflation).
The $1 trillion funds received from the auctioning of deficit spending securities appears to be completely different. There are no securities purchased with the funds from the sales. If securities were purchased, there could not be an increase in currency in circulation (inflation) nor would there be any increase in the national debt. To what destination do the funds disappear ?
The charter of the Fed stipulates profit belongs to the government. Do the Primary Dealers also receive these funds as s profit? Nefarious concealment of funds from the government would appear to be embezzlement.
I am unable to locate any audit of the relevant accounts which would appear to be client accounts—not operational accounts. Do you know where they can be found ??
Thank you for any assistance.
The author notes:
This is a brief sequel to my writing at https://www.scribd.com/document/355087490/EMBEZZLEMENT-BY-FR-7-2017-odt a reflection on the alleged embezzlement by the Federal Reserve,
In my view, the criminal FR is a major source of funds for a multitude of nefarious acts are well hidden.
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