Special to L. Neil Smith’s The Libertarian Enterprise

The writing inspired by a professor who informed a graduate class several decades ago that the FRBNY credits a government account with book-entry value only after receiving a deficit Treasury security from the Treasury Department, traces the journey of that security. TreasuryDirect [TD] institutional tabulations of auctions of securities for roll-over of maturing securities include a commingled ~10% “new cash” component. There goes the deficit spending Treasury security. Since 31 CFR 375.3 establish FRBNY has exclusive responsibility for disbursement of the auction funds and any related function they wish to claim, TD must obviously obtain the values from the bank. The GAO has twice reviewed the FRBNY’s security of bid and fund handling. Despite CRS misleading innuendo, those accounts have never been audited.

TreasuryDirect will not respond to requests for documented destination of “new cash” funds. The funds cannot go to government and still cause inflation and increase the National Debt. The only feasible destination is to the [covert] owners of the FR Board of Governors, Inc. [The Federal Reserve System does not lend itself to a corporate structure.] No legal consideration for the new cash is received from the Fed. All profit of the system legally belongs to the government. The value appears to be embezzled.

The Bloomberg v. Federal Reserve case of 2010 has the appellate Federal court enforce the statute that extends FOIA coverage to all official records of FR banks. Ref. 12 CFR 261.2(i)(1)(i) and (ii). The court identifies all profit as belonging to the government. Demands for relevant records, requirements for court enforcement, and accounting analysis of several years of past transactions to expose separation of commingled funds [which exceed $12 trillion annually] and their destination, would require great efforts to evidence the theft. [Better hurry. The Fed is trying to change FOIA.]

Whether a qui tam suit for securities violation or false claim with a relator’s award, or exposure of a criminal act is appropriate, it is obvious that continuation of humongous deficit spending (with wealth transfer to Wall Street) and SPV’s by the Treasury Department [read Goldman Sachs’ Mnuchin] to prevent bankruptcy of Wall Street banks will quickly bankrupt the Nation. The FRBNY’s handling redemption of Treasury securities will assuredly redeem only those tendered by Wall Street banks—for US assets offered at fire-sale prices. Hello Greece.

Do you know of any party that would consider becoming involved ?