WHO BENEFITS FROM DEFICIT SPENDING ??

June 11, 2014

Jim Carter

_______________________________________________________________

The government incurs a trillion dollar increase in the National Debt annually to spend money it does not have so congress-critters can fund pork barrel projects back home and get reelected. Is theft from the public by inflation for the “freebies” the end of the scam?? Not hardly.

For congress to get the book entry money created on the government’s bank account, the Treasury Department must send a Treasury security to the FRBNY. Then the FR will honor checks on the account and the fiat money is added to the economic system (inflation occurs).

But what happens to the security received by the FRBNY (as collateral for a loan) ?? Why, the bank auctions it off to the Primary Dealers and pretends it has been done by the Treasury Department. The funds go to the FRBNY.

Approximately $7 trillion of the National Debt is rolled over by auctioned securities annually along with about one trillion dollars of new deficit spending securities. All of the funds are handled exclusively by the FRBNY [confirmed by government and FR websites]. The $7 trillion is credited to government accounts to pay off owners of redeemed securities (as collected by the Primary Dealers with payment to the PDs). There is no inflation or increase in the national debt incurred from the roll over.

If the one trillion dollars from auctioned deficit spending securities was credited to the government, there would be no inflation or increase in the National Debt. Where does the money go??

Like the prosecutor says: “Follow the money trail.” Seven trillion dollars goes to the PDs. One more trillion can be added to the cover and never be noticed. The auction accounts receipts and disbursements have never been audited.

But if the trillion dollars went to the Primary Dealers, would that be repaying the owners of the Fed (who own and control the BOG) for the “loan” they had given the government so the government could spend the money they did not have?

That is the scam that was used by the Rothschild family in Europe centuries ago and was resurrected on Jekyll Island in 1912. There is no consideration put up for the pretended “loan.” If consideration (money) had been put up, there would not be an increase in the amount of money in circulation (inflation). The transfer of money to the PDs from the auctioned deficit spending securities is pure profit.

By law, all profit of the Fed belongs to the government. Hiding money that belongs to the government is a crime. The Federal Reserve embezzles one trillion dollars annually from the government. Since 1913, they have embezzled a total of $17 trillion.

So who will prosecute the Fed ? For an answer to that question, you might ask your congress-critter.

******************************************

For an extended analysis, see http://www.scribd.com/doc/48194264/rip-off-by-the-Federal-Reserve-revised

For usage of the embezzled money, see http://www.scribd.com/doc/115919607/FUNDING-THE-NEW-WORLD-ORDER

Louie C
Jun 13, 2014 @ 17:26:10

…missed one..it should have been #3

3. “Friendly” boards of directors give big raises to CEOs and pay cuts to others.

Boak also wrote that CEO pay is soaring because CEOs have friendly boards of directors. “Many boards are composed of current and former CEOs at other companies. And in some cases, board members are essentially hand-picked or at least vetted by the CEO.”

LikeLike

Louie C
Jun 13, 2014 @ 17:22:29

8 Reasons Some CEOs Make 331 Times As Much As Their Employees
We all know income inequality is a major problem, but the reasons for it rarely break into the mainstream media.
http://www.alternet.org/economy/8-reasons-some-ceos-make-331-times-much-their-employees

1.High unemployment. The trade deals let companies move jobs out of the country. This helped create a “reserve army” of longterm unemployed, hungry people desperate to take any job at any wage. Companies know this and use it to tell people to shut up, not ask for raises, because they could be next.

2. Stock ownership. As trade deals enabled companies to drive down wages their stock went up.

3. Privatization of public services has forced millions into poverty. Briefly, a government turns a public service over to a private corporation. The city/county/state lays off people who are paid OK and have benefits. The company hires people at the lowest possible pay rate with no benefits. The former public employees lose their homes, aren’t paying taxes or shopping much, depend on government “safety net” services—all of which cost the government. Meanwhile, the new low-wage replacements can’t buy houses, shop much, pay much in taxes and are paid so little they also depend on safety-net services. The quality of the service declines, while the CEO types running the company are making a killing and dodging their taxes.

4.Trade deals that work against us.

5.Technology. Technology is supposed to benefit us, not drive most of us into poverty while a very few become vastly richer. Today we could put every American to work with a campaign to repair and modernize our aging infrastructure and a campaign to retrofit all of our homes and buildings to be energy-efficient, and pay for it from the economic efficiency this investment would bring to our economy. Then we could create a pool of jobs where people help us do things that need to be done during times of unemployment. These jobs could be in teaching, caring for others, improving our parks, you name it.

6.Trade deals that work against us.

7. Weaker unions. The trade deals, privatization of government jobs, cutting back on government safety-net services like unemployment benefits all helped weaken the power of ordinary Americans to organize ourselves and stand together against concentrated corporate power. Unions were weakened and our ability to ask for good pay and benefits and better working conditions were weakened along with the unions.

8. Our government won’t help us. These things didn’t just happen. They were done to us. High pay at the top and low pay for the rest of us isn’t inevitable, it is the result of rigging the rules so they work best for the wealthy. Now our government is obstructed by a corporate-backed minority, prevented from doing things that would help the incomes of ordinary Americans.

Democracies are more prosperous for regular citizens. When citizens have a say, they say they want good jobs, good wages, benefits and strong regulations that protect people and the environment from the harm that unfettered corporations can and will do.