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  • #51639
    Profile photo of GeorgiaSaint
    GeorgiaSaint
    Veteran
    member9

    Got any Federal Reserve NOTES in your wallet? Now you can go big time and invest in Federal Reserve BONDS! According to the following article, the Fed plans “to liquidate, in bonds, the $4.5 trillion it is holding on its balance sheets.”

    http://www.kitco.com/commentaries/2017-04-05/Yellen-Jobs-And-A-Stealth-Rate-Hike.html

    So, if my understanding of this scheme is correct, the private entity known as the Federal Reserve (Fed) bailed out the People’s U.S. Gummint, by “purchasing” a bunch of its debt ($4.5 Trillion in this case). We won’t even ask where they got the “money” to purchase this debt, which then became a liability to them, or they wouldn’t want to be “liquidating” it — would they?

    And apparently the Fed has gone beyond $1, $5, and $100 Federal Reserve NOTES (which we conveniently carry around in our wallets), and is now going to pawn off much larger denomination Federal Reserve BONDS to whoever will buy them, to the tune of $4.5 Trillion. Unlike the old silver certificates, you can’t exchange a Federal Reserve NOTE for anything – except convincing somebody else that it has some kind of value equal to whatever you want to purchase with it, and these Federal Reserve BONDS won’t be worth anything either – except the full faith and credit of (no, not the U.S. Government) the Federal Reserve banking cartel. But at the end of the term of the bonds, won’t the Fed have to reimburse the face value (“principal”) of the bonds? Assuming that’s how it works, with what do they pay it back? And how are they “liquidating” anything at all, except by kicking the can further down the road?

    Hmmmm…. I think I just talked myself through my own question. It’s nothing new at all – just the same old house of mirrors, wires, and smoke that was created on Jekyll Island 104 years ago, the same year the IRS was born, and the amended Constitution that now calls for direct election of senators by the same people that directly elect the members of the House of Representatives, thereby cutting out a significant piece of power previously held by states. It’s just more of the same totally ludicrous fake economy that all of us have been operating with most of our lives, using a “dollar bill” that hasn’t really been worth anything since 1964. And the private banking system controls it ALL! Who knew?!?…..

    An excellent article tracing the history of this subject (disregarding all the sales pitches) is at:

    https://smaulgld.com/silver-certificates-federal-reserve-notes-united-states-notes/

    Yep! I just worked my way through it to the “simple” answer. Nothing new, nothing to get (more) excited about. Just more of the same Twilight Zone passed off as reality, and accepted as such by the vast majority of people without question. Just another sunny day in America.

    But note the sly work-around, as pointed out by the original article, that allows the Fed to hike rates without hiking rates. No wonder the Dow is keeping close to its recent new record territory – everything LOOKS good! What else matters? I just walked into a mirror to meet myself coming, tripped over a wire, and I think I smell smoke. Is there a fire somewhere?

    Over and out.

    [Comments pointing out errors in logic or omission are more than welcome. After all – what do I know?]

    GS
    "Ye hear of wars in far countries, and you say that there will soon be great wars in far countries, but ye know not the hearts of men in your own land."

    • This topic was modified 2 weeks, 3 days ago by Profile photo of GeorgiaSaint GeorgiaSaint.
    #51641
    Whirlibird
    Whirlibird
    Survivalist
    member10

    Must be the lack of sleep, but I’m going to have to read this again, didn’t get it beyond the con/fraud aspect.

    See what tomorrow brings.

    #51642
    Profile photo of Brulen
    Brulen
    Survivalist
    member9

    The political class of thieves and miscreants is still confident it can pass on its sins to future generations. Really? The Disunited states of America looks and sounds like it’s in chapter 11. Have a few million to waste? Buy war bonds. The federal reserve isn’t federal, but nobody seems to care. Yesterday was the anniversary of the day in 1933 when Roosevelt signed an executive order to take people’s gold. It’s been a long downhill ride ever since.

    #51643
    Profile photo of GeorgiaSaint
    GeorgiaSaint
    Veteran
    member9

    Must be the lack of sleep, but I’m going to have to read this again, didn’t get it beyond the con/fraud aspect.

    Basically, that’s exactly what it boils down to – just on an even larger scale now. I was originally scratching my head at the first article. I’ve been intrigued by the Fed’s “ability” to “buy” US debt – which they’ve been doing for a while now. But now to turn around and sell bonds to liquidate $4.5 Trillion from its books? That jumped out at me as taking the word “absurd” to an entirely new level.

    Yet after following it through, it really turned out to be nothing at all different than what’s been going on since 1913. If it can be called a difference, it’s just a difference in size. One “dollar” Federal Reserve Notes or a $4.5 Trillion Federal Reserve Bond issue – no different than a chihuahua and an elephant; they’re both just mammals, after all. And it has nothing to do with us peons anyway. We just keep getting our paychecks, however they come, trading those “dollars” for goods and services, and life goes on. We don’t need to worry ourselves about what’s going on behind the curtains on the stage – it’s just what’s going on on the visible stage that counts.

    Just look at the $1 Federal Reserve (private, non-government agency) Notes in your wallet. Remember that it’s the U.S. Treasury Department that produces those Federal Reserve Notes, and take note of the fact that it’s the Secretary of the Treasury’s signature on those Federal Reserve Notes. That’s all that matters. We need not concern ourselves with technical questions – that’s all for the superior intelligences in D.C. to work out. And it will all work out just fine. I put my full faith and confidence in the United States Government – that’s what they’re there for. [sarc/OFF] ;-)

    GS
    "Ye hear of wars in far countries, and you say that there will soon be great wars in far countries, but ye know not the hearts of men in your own land."

    • This reply was modified 2 weeks, 3 days ago by Profile photo of GeorgiaSaint GeorgiaSaint.
    • This reply was modified 2 weeks, 3 days ago by Profile photo of GeorgiaSaint GeorgiaSaint.
    • This reply was modified 2 weeks, 3 days ago by Profile photo of GeorgiaSaint GeorgiaSaint.
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