Federal Reserve - FED - Scam

The Federal Debt As Criminal Scam, The Federal Reserve As Criminal Syndicate 
(Sept 19, 2011 - oftwominds.com)

Is the Federal debt a criminal enterprise, enabled by a criminal syndicate? Read on before you pass judgment.

Correspondent Doug laid out a compelling case that the Federal debt is fundamnentally a criminal scam, operated by the criminal syndicate of the Treasury and the Federal Reserve:

The Federal Reserve is a criminal syndicate buying debt that the government eagerly creates and sells for spending money that dumps the debt on us civilians. What perplexes me is that the scam is so simple and all the intellectuals either don’t get it or are handcuffed by mega-corporate media owners.

    The scam in simple terms...

1. Uncle Sam borrows money from The Fed, China, oil exporters, Bank of England, etc
    by selling Treasury bonds
2. You are responsible for the bonds, i.e. IOUs
3. Uncle Sam collects taxes and pays the bondholders
4. The debt is breaking us; life will not be the same in the years to come

Uncle Sam borrows all its spending money from the non-government Fed and others, and spends only borrowed dollars raised from exchanging bonds for dollars as a debt plus interest on your back.

Uncle Sam collects income taxes and funnels the money to the holders of these criminal Treasury bonds.

The Fed/Treasury is an evil axis defunding you and me: the debt is $14.5 trillion; this is our debt, not the government’s debt. The government does not generally earn money; we do. Therefore every criminal debt certificate (Treasury bond) the Treasury exchanges for cash is a debt on you and me--a promise to pay for which citizens are responsible to pay, IOUs in simple terms. If the government printed the money instead of the criminal Fed, there would be no debt.

Uncle Sam borrows bucks and you become automatically indentured to pay back the bond and pay the vig! How is this not a criminal enterprise?

More on Bond Dealers:

The FED buys bonds from all the primary dealers in an auction. The primary dealers are the same institutions that are eligible to buy from the U.S. Treasury during monthly bond auctions: banks like Goldman, Morgan Stanley, JPMorgan, Citigroup, etc.

Here's how the process works...

- A few days in advance of the auction, the U.S. Federal Reserve provides a list of the specific bonds and amounts they'd like to buy.
- At a specific time, all the primary dealers submit their best offers to the Fed, i.e. they submit the lowest price at which they'd be willing to sell.
- The Fed buys from those dealers who offer the lowest price.

Primary dealers serve as trading counterparties of the New York Fed in its implementation of monetary policy. This role includes the obligations to: (i) participate consistently in open market operations to carry out U.S. monetary policy pursuant to the direction of the Federal Open Market Committee (FOMC); and (ii) provide the New York Fed's trading desk with market information and analysis helpful in the formulation and implementation of monetary policy. Primary dealers are also required to participate in all auctions of U.S. government debt and to make reasonable markets for the New York Fed when it transacts on behalf of its foreign official account-holders

List of Primary Dealers:
Bank of Nova Scotia, New York Agency
BMO Capital Markets Corp.
BNP Paribas Securities Corp.
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
HSBC Securities (USA) Inc.
Jefferies & Company, Inc.
J.P. Morgan Securities LLC
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Mizuho Securities USA Inc.
Morgan Stanley & Co. LLC
Nomura Securities International, Inc.
RBC Capital Markets, LLC
RBS Securities Inc.
SG Americas Securities, LLC
UBS Securities LLC

- Federal Reserve

Are the Federal Reserve and Its Primary Dealer Banks Manipulating the Stock Market?

(by Gary D. Barnett)

After the market collapse of 2008 and 2009, where losses were generally around 55%, the markets have gone up substantially. During that same period were QE1 and QE2. This is no coincidence. Bernanke took full credit for the rise in the stock markets, and for good reason. The "Quantitative Easing" programs were structured to transfer money (out of thin air) from the New York Fed to its primary dealer banks. This is done when the Fed purchases treasury bonds from these dealers, some of which include Goldman Sachs and J.P. Morgan, along with 18 others. This process infuses the banks receiving this money with instant liquidity. During QE2 for example, from November 3rd of 2010 through June 30th of 2011, the New York Fed bought from its primary dealers $770 billion worth of treasuries, not the $600 billion it claimed. These banks acquired many of these treasuries during the bailouts by trading worthless securities for full value treasuries. This was, by the way, at taxpayer expense.