In Alex Newman’s article on the trillion dollar coin, he doesn’t go into how the fed actually steals our money. And its tricky. Sure handing European banks trillions of dollars is a start. But how do they actually directly rip off America?
People argue that since the fed started returning 96% of profits that it can’t be stealing money.
The Federal Reserve sent a record $88.4 billion in profits to the U.S. Treasury last year, audited results showed on Friday, a big payday for the government thanks to the central bank’s massive bond purchases.
The income came mostly from $80.5 billion in interest on Treasury bonds and mortage-backed securities, according to the annual financial statements audited by Deloitte. Total Fed bank assets stood at $2.9 trillion at the end of last year.
In fact, the profits declared and the profits realized are two different things. Because those profits declared are simply on the Feds balance accounts. But what the Fed actually does with its money is parcel it out to member banks who then leverage it 25 to one and make loans or play the dividends market. So say they made 100 billion in profit last year. Each bank gets to leverage that out to 2.5 trillion and place bets with it. If they win the bet is tripled. Even if they loan it out its easy to double their money. Then after the year is up the return the original (96% of it) back to the treasury but keep all the wheeling and dealing profits they made off using it. some scam!
Obama’s Trillion-Dollar Coin Exposes Federal Reserve Scam
Jan 17, 2013
Amid an ongoing debate over raising the debt ceiling and Congress’ seeming inability to rein in wild deficit spending, some proponents of even bigger government proposed the minting of a $1-trillion platinum coin to get around stubborn lawmakers seeking budget cuts. Seriously. Originally, the Obama administration refused to rule it out when asked by reporters, leaving analysts to speculate about whether or not they would really do it.
Then, suddenly, the privately owned Federal Reserve put its foot down and killed the scheme. In a joint statement issued with the U.S. Treasury, the central banking cartel, which holds a virtual monopoly on currency production, said no way. The Fed would not accept such a coin even if the federal government were to mint it. While never mentioned in the mainstream media, the implications of the whole episode are enormous.
The idea of a trillion-dollar coin, of course, has been widely ridiculed and criticized, with analysts saying it sounded like something a certain Zimbabwean despot who flooded his country with $100-trillion Zimbabwe notes might try. Other commentators slammed the proposal as an unprecedented power grab by an out-of-control executive branch that needs to be urgently restrained — sooner rather than later — before it does any further damage to the nation and its government’s remaining credibility.
Even segments of the establishment media mocked the scheme. “In a town that specializes in stupid ideas, this one reached a new level of stupid,” wrote Washington Post opinion writer Marc Thiessen. “Think about it: If the president could really create a trillion dollars out of the ether simply by minting a single $1 trillion coin, why would we stop at one? We could mint 17 of these puppies and eliminate the national debt! Heck, we could mint 18 and have a trillion-dollar surplus!”
Then the scheme died. With a brief statement issued over the weekend, the Fed and the Treasury instantly quashed the hopes of some Democrat lawmakers and Keynesian “economists” such as Paul Krugman that Obama would actually mint the coin. “Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit,” said Treasury spokesman Anthony Coley.
While the formal statement was issued by the Fed and Treasury, the latter of which is actually part of the government, the order to kill the platinum coin came down directly from the shareholder-owned central bank, according to news reports citing a senior administration official. An article in BuzzFeed, a relatively new media service started by the co-founder of the Huffington Post, saidthe central bank would have simply refused to credit the Treasury’s account.
Amid the cacophony of giggles and outrage over the coin plan, however, one liberty-minded blogger identified the real question Americans should be concerned with in this ordeal: How can the privately owned central banking cartel misnamed the “Federal Reserve” conjure infinite amounts of currency into existence out of thin air and charge interest on it, all while telling the elected government that it is not allowed to do the same? Why can the Fed create trillions of dollars to shower on its banker cronies worldwide but the government must either tax or borrow?