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FEDERAL RESERVE: FOIA, AND AUDIT

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Olde Reb

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Conspiracy theorists have a history of sullying the good name of the Federal Reserve. They even attempt to get legislation passed in Congress so that an audit can be authorized. Their efforts have been unsuccessful.

The Federal Reserve banks have claimed they are privately owned institutions and not subject to FOIA requests, and support the claim with two Federal court adjudications on other issues. Those court opinions specifically identify the holdings are restricted to the issues before the court.

FOIA requests directed to the Federal Reserve system are codified at 12 CFR 261. 12 CFR § 261.3 (a) identifies the Secretary of the Board of Governors as custodian of all Federal Reserve records. 12 CFR § 261.3 (c) directs service to the Secretary of the Board. Procedures for requesting records are detailed at 12 CFR § 261.12.(b) and (c). Bloomberg media received court support for their demand for FOIA access to Federal Reserve bank information:

“So long as records at the [Federal Reserve Banks] satisfy the plain language meaning of 12 C.F.R. § 261.2(i)(1), they qualify as agency records of the Board and are subject to FOIA requests. …[The CFR reads]: Records of the Board include . . . all information coming into the possession and under the control of the Board, any Board member, any Federal Reserve Bank, or any officer, employee, or agent of the Board or of any Federal Reserve Bank, in the performance of functions for or on behalf of the Board that constitute part of the Board’s official files; or [records] [t]hat are maintained for administrative reasons in the regular course of business in official files in any division or office of the Board or any Federal Reserve Bank in connection with the transaction of any official business..[provisions are to be broadly applied].The FRBs give all revenue in excess of expenses to the U.S. Treasury. 12 U.S.C. § 289.” Bloomberg L.P. v. Board. of Governors of Federal Reserve System, 649 F. Supp. 2d 262, 274++ (S.D.N.Y. 2009), aff’d, 601 F.3d 143 (2d Cir. 2010). emphasis added.

But what records would be of interest ? Well, it has been theorized that a considerable amount of funds from the Federal Reserve’s handling of government funds from auctions of Treasury securities disappears.1 The FRBNY, as fiscal agent of the U.S. government, has exclusive management of disbursement of the funds and any related function they wish to claim.2 The accounts currently handle over $10 trillion annually and no audit of the funds has been found.

Treasury Direct identifies securities for redeeming market securities usually have an approximate 10% “new cash” allocation.3 That would appear to relate to deficit spending. Funds for redeeming securities are disbursed in large part to select Primary Dealers who collect designated securities—or who have the securities they hold identified for recall. PDs also bid on auctioned securities. Transfer of funds for redeeming securities from funds received by auction does not increase the currency in circulation (inflation) nor does it increase the National Debt.

If funds designated as ‘new cash’ went to the government, they would have to purchase securities. There is no known government account that receives the approximate $1 trillion annual funds. If the funds purchased securities, they would eliminate any increase in currency in circulation (inflation) and would not increase the national debt. This obviously does not occur. Where do the funds go ? It undoubtedly involves a scramble of CUSIP numbers.4

The above discussion should not be confused with QEs or non-QEs. Those involve collateralized credit [not to be confused with money] extended by the Federal Reserve authorized by 12 CFR § 201.3 (a) identified as loans and, in large part, have been paid back. Some pundits claim they were made to prevent an economic collapse; some same it was a postponement.5 If a commercial bank was doing it, it would be called fractional reserve lending without any reserve requirement; it is the key to rampant inflation.

It would appear that FOIA can be used to obtain the records maintained by the FRBNY as to the disbursement of ‘new cash’ funds and the consideration received for them from the identified recipients. Some pundits claim the central bank is owned by the Rothschild.6 Other pundits claim the BOG is a privately held corporation with shares owned by select Primary Dealers and others.7 Maybe FOIA can find out what is correct.

Failure to take any action has been prophesied to result in a Greek/ Argentina oppression and collapse of the U.S. society.8

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Footnotes:

1 .. https://thedailycoin.org/2018/08/21/the-federal-reserve-a-different-view-updated/ ; https://ppjg.me/2019/11/18/the-federal-reserve-a-different-view/

2..31 CFR 375.3.

3..https://www.treasurydirect.gov/instit/annceresult/press/press_cashpydwn.htm

4..https://www.zerohedge.com/markets/helicopter-money-here-how-fed-monetized-billions-debt-sold-just-days-earlier?utm_campaign=&utm_content=ZeroHedge

5..https://www.zerohedge.com/markets/944-trillion-reasons-why-fed-quietly-bailing-out-hedge-funds; https://realinvestmentadvice.com/yes-rates-are-still-going-to-zero/

6..https://usahitman.com/o3clwrcb/

7 …https://www.spartareport.com/2019/11/the-federal-reserve-a-different-view/;

8…https://ppjg.me/2019/11/18/scenario-of-national-bankruptcy/.

FISCAL BLISS* = * Ignorance is Bliss

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Olde Reb

proliberty@fairpoint.net

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What difference does an increase in the National Debt make? We owe it to ourselves.” Nancy Pelosi has declared. Such a paraphrased statement, reflecting on the exoskeleton structure of the Federal Reserve, ignores the inner historic mechanisms of Rothschild banking, the intense subterfuge and arm-twisting of the Fed’s creation, and the proven destructive forces inherent but hidden therein. 1 More

FEDERAL RESERVE HIDES PROFITS FROM INFLATION

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 “Olde Reb”/ PPJ contributor

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Last year $8.4 trillion was handled by the FRBNY from the auctions.. There is NO information available as to how it was dispersed.”

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The headlines screamed that we needed to increase the National Debt to prevent an economic collapse.  Wait a minute. Is that the whole story?

Much is said of how the increase of the National Debt ceiling is inflationary, and it surely is. But the gain by the United States government is only temporary.  The real profit goes to the Federal Reserve and Wall Street but that profit is hidden from Congress and the public.

There are two conceivable ways the National Debt can be financed.  The manner projected in the mass media and by government is that the government borrows from the public. If this was the entirety of borrowing, there would be no inflation. The Fed could handle the transactions as a broker and receive commissions.  The money transfer is the same as the payment of taxes but the government would promise to pay interest on the funds. Inflation by this method of financing is not possible. More

QE2 — THE FRAUD IN YOUR FUTURE

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“Olde Reb”  (c)copyright 2011 All Rights Reserved

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Pundits are reacting with aghast at Bernanke’s QE2. The purpose of QE2 is not for the benefit of society; it is a desperate attempt at self-preservation by the Federal Reserve. It will not salvage the Ponzi scheme.

If the market is left alone, the value of mortgages held by the banks will continue to fall. When the toxic mortgages eventually have to be written to value, the assets of the banks will rapidly de-leverage—and the banks are obviously bankrupt. When the banks fail, the riots start and Congress–to make a show for the public–will have to point fingers at someone (other than themselves) and that will be at the Fed. If the man behind the curtain is exposed to scrutiny or an audit, all hell will break loose. The Fed will be like BCCI on steroids. More

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