SUMMARY: This mathematical analysis shows how: 1. The economic scheme in the U.S. of creating fiat book-entry money via T-securities in the amount of the principal of the security with a promise to repay the principal PLUS the interest (i.e., deficit spending), is impossible. The interest is never created. The debt must continually be increased to pay interest on earlier securities or the scheme will collapse. 2. The National Debt can never be paid off. Contracts that cannot be culminated are acts of fraud and are void from their inception. 3. The funds from all Treasury security auctions are received on the accounts of the FRBNY; records of disbursements are not disclosed or audited. 4. Congress has temporary benefit of deficit spending (a $1.4 trillion ‘loan’ for 2010) until maturity of the securities (the collateral). At maturity, all securities are perpetually rolled over without mention in government accounting records. 5. The Fed eventually receives the value of all national debt as purloined profit; every dollar of inflation from deficit spending security auctions is undeclared profit. Deficit spending was $1.4 trillion for 2010 and $7 trillion for the past six years. 6. Fiscal social obligations of the nation will be restricted during any economic downturn, whether or not deliberately initiated by the Fed, while debt will escalate to “stimulate the economy,” for war-mongering, and to compensate for reduced tax collection. 7. The operation is, as with any Ponzi scheme, predestined for inherent national bankruptcy when buyers to roll over the increasing debt lose faith that profit will be generated greater than inflation even while interest rates sky-rocket. Commerce, the engine of the economy, will cease to function from uncertainty. 8. Future debt will exceed the entire worth of the nation. As panicked holders of debt attempt to obtain value, they will sell securities to the Fed at reduced rates. The Fed will then purchase national heirlooms and assets at fire-sale prices as in Greece. Ownership of infrastructure and assets will be controlled by shareholders of the BOG. (or Wall Street fronts). 9. The touted concept that the public directly funds deficit spending is an illusion. Such funding can never produce inflation. 10. The 1913 Federal Reserve Act provides that profit from the Fed belongs to the government. Concealment of funds due the government violates several federal criminal laws. ********************************* The Federal Reserve uses euphemistic smoke and mirrors to obscure their scam. The appearance of the scheme is that Congress receives the benefit of inflation. In reality, it is the Fed that receives the purchasing power from inflation---without public awareness or documentation. With full knowledge the following is not the way the Fed or the government describes the system, allow me to offer a different analysis of their operation. CREATING BOOK-ENTRY (FIAT) MONEY Congress can pay for federal expenses with funds collected from taxes, but Congress is never satisfied with this amount. The desire to buy votes/campaign contributions from special interest groups induces congress-critters to spend more, and this is identified as deficit spending. To create this make-believe money requires the assistance of the Federal Reserve. Learn more: turismoassociati.it/dblog/articolo.asp?articolo=3436#ixzz2rPisP84y
Posted on: Sat, 25 Jan 2014 12:54:33 +0000
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