Comments on: From Global Depression to Global Governance http://www.conspiracyarchive.com/Blog/?p=3996 Anti-Theory Conspiracy Mon, 20 May 2013 02:47:56 +0000 http://wordpress.org/?v=2.6.1 By: Olde Reb http://www.conspiracyarchive.com/Blog/?p=3996#comment-16964 Olde Reb Mon, 01 Nov 2010 23:58:21 +0000 http://www.conspiracyarchive.com/Blog/?p=3996#comment-16964 "How do central banks make a profit ?" you ask. And then you answer--by interest. But you may not be aware that after Congressional hearings several years ago revealed this fact, Congress passed legislation that such profit that exceeded the costs of the Fed's operation would be paid to the U.S. Treasury. But let us look at a different issue. The craft of making fiat money is for Congress to grant a T-security to the Federal Reserve for which the Fed will credit an account of the U.S. Treasury in the amount of the principal of the security. We will not ponder the situation that every dollar in circulation has been created by this process, then note that the scheme calls for the U.S. Treasury paying interest on the principal thus created. The interest has never been created. That value of money does not exist. The contract cannot be culminated. But I said we would not ponder this issue. But do look at the T-security held by the Fed. It will mature in 60 days, or one year, or five years, or 30 years. Congress is obligated to pay the Fed for the security (assuming the Fed has not sold the security to the Primary Dealers and has all ready received the value of the security). Do you get the point ?? The Fed receives the value of ALL T-securities at maturity or before. The U.S. government merely had the value of the fiat money until it had to redeem the security. Ref: http://www.conspiracyarchive.com/Blog/?p=3908 “How do central banks make a profit ?” you ask. And then you answer–by interest. But you may not be aware that after Congressional hearings several years ago revealed this fact, Congress passed legislation that such profit that exceeded the costs of the Fed’s operation would be paid to the U.S. Treasury.

But let us look at a different issue. The craft of making fiat money is for Congress to grant a T-security to the Federal Reserve for which the Fed will credit an account of the U.S. Treasury in the amount of the principal of the security. We will not ponder the situation that every dollar in circulation has been created by this process, then note that the scheme calls for the U.S. Treasury paying interest on the principal thus created. The interest has never been created. That value of money does not exist. The contract cannot be culminated. But I said we would not ponder this issue.

But do look at the T-security held by the Fed. It will mature in 60 days, or one year, or five years, or 30 years. Congress is obligated to pay the Fed for the security (assuming the Fed has not sold the security to the Primary Dealers and has all ready received the value of the security). Do you get the point ?? The Fed receives the value of ALL T-securities at maturity or before. The U.S. government merely had the value of the fiat money until it had to redeem the security.

Ref: http://www.conspiracyarchive.com/Blog/?p=3908

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