Special to L. Neil Smith’s The Libertarian Enterprise

“What difference does an increase in the National Debt make? We owe it to ourselves.” virtually every congress-critter has declared. Such a paraphrased statement, reflecting on the exoskeleton structure of the Federal Reserve, ignores the inner historic mechanisms of Rothschild banking, the intense subterfuge and arm-twisting of the Fed’s creation, and the proven destructive forces inherent but hidden therein. 1 

The medieval Rothschild Banks established a line of credit for the King provided the King issued a written promise to pay gold, with interest, to the bank at a time in the future. The book-entry Rothschild credit was used to pay for obligations incurred by the king. The credit continued to be circulated in the kingdom between merchants. The bankers sold the king’s interest bearing promise of gold to investors. The promise was renewed by the king 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 had a promise the king would eventually pay them in gold— which would never happen. 3  Everything went smoothly as long as the bankers could sell the promise and the investors did not demand the gold. 4  As Benjamin Ginsburg has lamented in FATAL EMBRACE; (bankers) AND THE STATE 5 , eventually the schemes, which stole the wealth from the people with book-entry fiat money, would come to a catastrophic climax. 6 

The Federal Reserve system, claimed to be “staffed and run by Council on Foreign Relations members” 7  does the same thing for the U.S. government’s deficit spending. Their wizard is hiding behind Frank Baum’s curtain 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 US government with 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. [It is touted to the public as a loan. 10 ] 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 also identified as a “tender” (substitute) required by law to be accepted for an imprinted number of dollars. 11   In times past, the Note pledged it could be redeemed in gold or silver, or redeemed in lawful money, but now what you have is what you get [a legal tender].

To sell the pledge from the government (the Treasury security) at the highest price, the Federal Reserve will hold an auction but will camouflage it as an auction by the government. 12  Acceptance of bids, determining the interest rate, and the amount of deficit spending permitted is controlled by the BOG. 13  Government regulations clearly establish the funds from the auctions are controlled exclusively by the FRBNY (as a fiscal agent of the government); i.e., a franchisee of the BOG. 14 

In addition to the approximate $1 trillion annually auctioned for deficit spending (new cash), the roll-over of approximately $10 trillion debt from prior years (publicly held maturing) is annually auctioned and disbursed by the FRBNY. 15  In actual practice, deficit spending security (new cash) is identified as a decimal percentage of a roll-over security.

The difference in handling of the two accounts is the supreme camouflage. Funds for roll-over securities are credited by the FRBNY (as a fiscal agent of the US government) to a government account. The FRBNY then pays the Primary Dealers (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 inflationary resultant from these transactions.

If the funds from deficit spending securities were to be used in redeeming Treasury securities in the market (i.e., paid by the FRBNY to the government), it would eliminate any increase in the National Debt. It would also eliminate any increase in money in circulation (inflation). That clearly does not occur.

WHERE DO FUNDS FROM THE AUCTIONS OF DEFICIT SPENDING SECURITIES GO ??

The only viable dispersal of funds identifiable to this writer is the funds are commingled with funds to select Primary Dealers. 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 profit could be completely hidden from view. 17  The deficit spending amount 18  would be clear profit for the owners of the BOG.

The statutory charter of the Federal Reserve stipulates profit of the operation belongs to the government. Concealment of funds that belong to the government appear to be embezzlement, among other crimes. 19 

Various theories abound on how the purloined funds have been utilized to the detriment of society. 20 

If the scheme is not exposed, Wall Street internal memos identify collection of the $20 trillion debt is the “ultimate goal” and would reduce the United States to the status of Greece. 21  The financiers’ objective in Greece 22  is not to exploit, but is to destroy the nation. 23  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. 24 

The proposed Goldman Sachs 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. 25  This is the same scheme Wall Street and the CIA have used to bankrupt other nations for four decades. 26  The psychopathic Wall Street warmongers demand a humongous deficit busting military expenditure, but this statement may reverse cause and effect. 27  The people will submit to anything if they are induced to fear a foreign threat.

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. 28  This is the utopian government controlled by bankers that David Rockefeller 29  so proudly promised for the world in his autobiography MEMOIRS and Carroll Quigley touted in TRAGEDY AND HOPE.

We can rest assured the same scheme is used by the ECB with the Euro.

The U.S. has two options:

The entire situation can be ignored with the public meekly submitting to Wall Street’s collection of the fraudulent $21 trillion National Debt and accept the fate of Greece [Greece has surrendered national sovereignty control to Goldman Sachs/Troika. Approval by Troika is required for all government actions.

or

They can assert public pressure on congress-critters to audit relevant accounts and indict Wall Street. The GAO has authority to review the handling of government funds by any entity. 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 chair.

PS: How can banks with (deficit spending) liquidity that borrowers will not accept for loans laundry the money? Well, they can buy stocks (and watch the price go up and say the corporations are buying their own stock) or they can buy bonds (and watch the yield go down as demand increases). Have you seen any evidence of this happening ?