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The Fed’s Accounting Gimmickry Revealed!

January 11, 2013

What a Scam and Shell Game the Federal Reserve plays with our Money! Let’s Review to discern this Gimmickry!

The Wall Street Journal revealed today that the Fed (mostly from Bernanke’s policies) sent our Treasury (mostly Geithner’s realm) some $89 Billion of dollar units in 2012. These $ units were derived  (earned) from the Fed’s QE (quantitative easing) policies where they (the Fed) create dollar units ‘out of nothing’ (the mind of Bernanke, et al) and then they receive interest on this newly created (fictional) money. The interest income (on this fictional money) exceeded $90 billion in 2012 and after subtracting their operational expenses they transferred (via the electronic computer) some $89 billion units to the U.S. Treasury account. What a scam and shell game (using their very unique accounting gimmickry) to provide our Treasury this income (derived from mostly the policies of Bernanke’s QE program). Where is this leading mathematically and also morally?

The projected dollar transfer for 2013 will exceed $100 billion units (all fictional money). If we review the record since the 2008 financial crash we get the following amounts that the Fed transferred to our Treasury account:

1.  2009:   Some $47 billion of fictional dollars (now digital units that are created ‘out of nothing’).

2.  2010:  Some $79 billion of fictional account units (called ‘dollars’)

3.  2011:  Some $77 billion of virtual/imaginary numbers were transferred to Geithner’s account

Can anyone discern the scam and shell game that the Fed plays with our money? Can you discern that the Fed is getting credit for earning income (wealth) from their fictional QE operations (called asset purchases)? The more fictional dollar units that they create (out of their consciousness) the more fictional/imaginary money they can transfer to our Treasury (which is now totally broke). Why not create fictional accounting units to cover all the deficits and all the taxes which Americans must pay? Doesn’t this make sense given what Ben and his FOMC committee are doing in real-time with our ‘dollar’? The Fed is now creating some $85 billion of QE units each month for their contribution to our economy. Isn’t this a total farce, scam, and shell game? Check out the Fed’s balance sheet at:  www.federalreserve.gov.

Why should the hard-working American citizen (who must labor and produce real wealth) pay any taxes to their Government when Bernanke, et al can create virtual/fictional/imaginary legal tender ‘out of nothing’ (his consciousness)? Ben can now use his computer Desk Manager at the New York Federal Reserve Bank to ‘type’ or ‘click’ new virtual digits (called ‘dollars’) into his Fed account (called the SOMA) with no cost and no human effort (in the form of real economic labor). Doesn’t this operation turn economics and logic into a total farce? Ben and his Committee could (theoretically) create unlimited dollar digits (now within the computer screen) and attempt to use these virtual digits to pay off every creditor that has borrowed or invested dollars into our mortgage or bond markets.  All this can be done via QE operations and then asset purchases by the Fed. Think about this accounting gimmickry that is being played upon the hard-working American people!

How about sending this missive to some of the Fed members for their review and thoughts. What precisely are they doing and attempting to foster upon the American people? Can anyone ‘discern’ the nature of this scam or shell game? For evidence of these operations (transfers) by the Fed go to Google.com and search under the Fed’s transfers to Treasury. These dollar unit transfers developed from the Fed’s QE operations. They started in 2008 and continue into 2013 and possibly beyond. Does anyone besides me discern the accounting scam and gimmickry that these operations reveal?

The newest scam that is being promoted by some economist’s (Paul Krugman, et al) is the creation of a $trillion-dollar platinum coin. This coin would then be minted (the size would need to be huge) and legally transferred to the private Federal Reserve Banking system for a fresh $1,000,000,000,000 of dollar digits for our Treasury’s computer account. Our Treasury would then receive $1 trillion of new money (virtual dollar digits) to spend (for new social/government programs) so they could avoid the ‘debt ceiling’ issue for another year or so. Does this sound like another political/financial scam or not? Where is all this leading going forward? What new gimmicks will evolve as our financial problems magnify in 2013 and beyond? Your imagination is as good as mine. I am: https://kingdomecon.wordpress.com.
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