The Fed

Dear Jim:

Looks good to me.

Sorry, I don’t know of any party that would consider becoming involved in a FOIA suit

Here’s a biblio on our favorite institution, the fed:

Auerbach, 2008; Grim, 2009; Murphy, 2010C, North, 2012; Paul, 2009; Rothbard, 1984; Salerno, 2012; Sowell, 2011

Auerbach, Robert D. 2008. Deception and Abuse at the Fed: Henry B. Gonzalez Battles Alan Greenspan’s Bank; Austin, TX: University of Texas Press

Grim, Ryan. 2009. “Priceless: How The Federal Reserve Bought The Economics Profession.” October 23;

Murphy, Robert P. 2010C. “The Fed: The Chicago School’s Achilles Heel.” December 13;

North, Gary. 2012. “How to End the Fed, and How Not To.” September 10;

Paul, Ron.  2009. End the Fed. New York, NY: Grand Central Publishing.

Rothbard, Murray N. 1984. “The Federal Reserve as a Cartelization Device: the Early Years, 1913-1930,” in Money in Crisis: the Federal Reserve, the Economy, and Monetary Reform, Barry N. Siegel, ed., Cambridge, MA: Ballinger Publishing,  pp. 89-136.

Salerno, Joseph T. 2012. “Fractional Reserves and the Fed: Testimony before the U.S. House Committee on Financial Services, Subcommittee on Monetary Policy (Chairman: Ron Paul).” The Free Market, vol 30, No. 6, June, pp.1-4;

Sowell, Thomas. 2011. “Fed Up With the Fed?” May 5;

Best regards,


From: Jim

Subject: federal reserve; con artist

Dear Mr. Block,

Is the following a realistic understanding of the Federal Reserve system ?

Jim Carter



The creation of a deficit Treasury security and the National Debt has been the subject of a previous writing. It was inspired by a professor who informed his graduate class the Federal Reserve credits a government account with book-entry value only after receiving a deficit security from the Treasury Department. Ref. https://thedailycoin. org/2018/08/21/the-federal-reserve-a-different-view-updated/. What happens to the security after being received by the Fed is the subject of this writing.

The Fed’s only disposal of new marketable Treasury securities is by auctions which are, in fact, handled by the FRBNY as fiscal agent for the government. Ref. 31 CFR 375.3. TreasuryDirect [TD] institutional tabulations of auctions of Treasury securities for roll-over of maturing securities historically included a ~10% ‘new cash’ component on virtually all sales. [Currently new cash can be 100% to a negative (input) of the issue.] All other funds are to redeem maturing securities and are government money. Ref. There goes the deficit spending Treasury security.

31 CFR 375.3 establishes FRBNY’s exclusive responsibility for disbursement of the auction funds and any related function they wish to claim. With the Fed setting the parameters of the auctions, the TD must obviously obtain the values from the bank. The GAO has twice reviewed the FRBNY’s security of bid and fund handling of the auctions. The accounts maintained by FRBNY, despite CRS misleading innuendo, have never been audited. There is no mention of them in the Annual Report to Congress.

The 90% of the auction funds used for roll-over of maturing securities are government funds. FRBNY, as fiscal agent for the government, disburses those funds, in large part, to the Primary Dealers who are tasked with collecting securities to be redeemed. The FRBNY is a franchise purchased by commercial banks within one of the twelve districts. Each of the twelve banks have a nine member Board of Directors. Administrative and regulatory control is vested in the FR Board of Governors. Any of the 108 franchise directors may be fired by the BOG without cause and without recourse, The System was designed by a furtive cabal of New York City bankers, under the guidance of a European banker, assumed to be for some gain.

TreasuryDirect will not respond to requests for documented destination of ‘new cash’ funds. The funds from deficit Treasury securities cannot go to government and still result in inflation. Such an action would also negate any increase of the National Debt. The only feasible alternate destination of deficit spending funds is to the [covert] owners of the FR Board of Governors, Inc. [The Federal Reserve System is not deemed to readily lend itself to a corporate structure.] A privately held corporation is not required to file records with the SEC; i.e., the operation is invisible. All profit of the system, by charter, legally belongs to the government. The value appears to be embezzled. Status as a government agency is not applicable to an entity created for private profit, or for theft.

Whether legal consideration is received from the Federal Reserve system in the creation of book-entry credit, which can be readily distinguished from consideration created by commercial banks in the creation of a loan, may be a question that must be judicially determined. The commercial bank took a risk in the loan creation; such a risk does not appear apparent from the FR creation.

The Bloomberg v. Federal Reserve case of 2010 has the federal appellate court apply the statute that extends FOIA coverage to all official records of FR banks. Ref. 12 CFR 261.2(i)(1)(i) and (ii). The court confirms all system profit belongs to the government. Extensive labor will be required to demands relevant new cash records by FOIA, then for the court enforcement of the denied requests (optimistically) , and then for the subsequent analysis of several years of commingled funds [which exceed $12 trillion annually] to determine validity. [Better hurry. The Fed is trying to change FOIA.]

Whether a qui tam suit for securities violation, or a false claim with a relator’s award, or exposure of a criminal act is the resultant subsequent action of FOIA record production, it is obvious that continuation of humongous deficit spending will escalate the nefarious wealth transfer to owners of the BOG. The current transfer exceeds $3 billion daily, 7/52. Each trillion dollar annual increase in deficit spending will give another $3 billion daily to the PD cabal. Unrelated use of the Fed’s new Special Purpose Vehicles (SPV) program to sell Wall Street’s trash to the Treasury Department (read Stephen Mnuchin of Goldman Sachs) at inflated prices to procrastinate bankruptcy of Wall Street banks will additionally balloon the national debt. Ref. Quote: “To put it bluntly, the Fed isn’t allowed to do any of this.”

Blackrock is central to the scam. Ref.

Of course, congress could instruct the GAO to audit the applicable accounts since it would not be “an audit of the Federal Reserve system” but a negative vote for such action can be very cheap to buy. GAO has authority to audit any handling of government money involving potential fraud or theft.

The historic booty may have been used to construct the six mega-corporations that control all major corporations and eliminate competition; or it could have been laundered in the stock market and drive their prior investments to even higher value; or it could have funded David Rockefeller’s utopian world domination as documented by John Perkins, William Blum, and others; or to initiate false flag warfare as documented by General Smedley Butler, John Stennett, among others; or to fund many of the nefarious CIA actions. Douglas Valentine asserts the turmoil in the U.S. [CIA AS ORGANIZED CRIME] is the same program Wall Street has used internationally for 70 years. The money is all hidden.

Bankruptcy of the Nation is inherent. The FR Ponzi scheme creates an expanding National Debt with no possible way to pay it off. The principle of a ‘loan’ is created by deficit spending. [Notice that the ‘loan’ (sic, credit that is never negated) is from the Federal Reserve system but the taxpayers have become responsible for it.] The required interest to pay it off is never created. Only more debt, with the new principal being used to pay the prior interest, delays the Ponzi’s collapse. The growth required to perpetuate such a scheme, of interest upon interest upon interest, is exponential as evidenced in any graph of the National Debt. A contract that cannot be culminated is an act of fraud and is void from its inception.

During national bankruptcy, the FRBNY will handle redemption of the PD’s tendered securities they have purchased in the market for pennies. They will demand face value from the U.S. Treasury; i.e., a financial rape of the nation. They are all one clan. Hello Greece and a U.S. troika controlled by financial entities.

Benjamin Ginsberg has chronicled a history of financiers with government in FATAL EMBRACE; (financiers) AND THE STATE. He attributes the Baron’s revolt/Magna Carta to King John’s decree they would fund and staff John’s invasion of Normandy. The instigation of war by London financiers would have been highly profitable. Ben identifies numerous subsequent medieval uprisings and social chaos occurred in Europe from financiers exploitation of societies. It was the unique uprising of John’s appointed governors, a political power, that advanced the unprecedented concept of citizens having the Right to govern themselves; feudalism (totalitarian rule) was fractured. Regression is apparent. A similar replay in today’s society would seem to require state bodies, perhaps singular individuals, to lead a revolt.

Commerce cannot thrive without a readily agreeable value of transfer. Devaluation of the means of value exchange condemns a nation to the ash pit of history.

Do you know of any party that would consider becoming involved in a FOIA suit?


2:16 am on September 10, 2020