Before the Next Crisis: Ex-Treasury Head Warns Banks “Risks Have Increased”

by | Sep 16, 2016 | Commodities, Conspiracy Fact and Theory | 67 comments

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    Banking-Conspiracy

    The banks are staring the next crisis head on.

    Despite the appearance of restructuring to make banks fail-proof after the 2008 implosion of the financial system, in reality, very few meaningful reforms took place.

    Instead, the banks are more prone to disaster than before. They are doused in gasoline, playing with matches, surrounded by piles of incendiary paper notes and bad debt bombs.

    And with this promising landscape, figures of authority in finance are coming out of the woodwork to warn us of the new wave of risks.

    I guess they should know. Most were complicit in the big fix and the failed recovery, and obviously something is coming. The dam is not likely to hold for all that must longer.

    However, fostering a fire and watching it spread does not make one a watchman, and certainly no one to trust.

    Any words of warning from those in the banking sector should be taken as a threat. Prepare accordingly.

    via Simon Black of SovereignMan:

    Ever since [the 2008 collapse], the banks, the US government, the Federal Reserve, and other financial regulators in the United States have been working to rebuild the illusion of financial safety.

    Most notably came a bunch of laws and regulations like the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law in 2010, designed to make the banks safer…

    … or at least give the appearance that banks are safer. As you can imagine, these regulations have merely created another illusion of bank safety.

    Today, former US Treasury Secretary Lawrence Summers published a new paper that slams these regulations for not having made the US banking system any safer:

    “To our surprise, we find that financial market information provides little support for the view that major institutions are significantly safer than they were before the crisis and some support for the notion that risks have actually increased.”

    Those who engineered the problems are now warning of the impending collapse.

    I guess it is time to finally pay attention.

    Larry Summers, Robert Rubin, Alan Greenspan, Timmy Geithner and others in their cabal opened the doors to derivatives during the Clinton Administration and helped to create an era of extreme risks – built up and knocked down by huge boom and bust cycles.

    3 Former U.S. Treasury Secretaries Laugh About Income Inequality

    The impact of their policies for Wall Street, and for the rest of us, is legendary. If there is an underlying infrastructure to the problem that tanked the economy in 2008 and is now threatening to resurge again, it lies within the system they have created.

    Today the Federal Reserve controls the destiny of the U.S. economy, and they have cornered investment into bonds and sophisticated commodities that abandon the real market of goods and services… leaving the working and middle classes behind.

    The regulation and the monetary policy response has created these conditions, and now they are threatening once again to reign hell down upon the people.

    h/t Zero Hedge.

    Read more:

    Alan Greenspan Warns That Dangerous “Crazies Will Undermine The System”

    Rothschild Warns “Biggest Financial Experiment in History” About to Unleash Consequences Unknown

    “Revolt of the Elites”: Society Is Divided, Self-Absorbed and Powerless to Stop Them

    The System Can’t Be Fixed, Only Crashed: “The Machine Resists Reform to the Death”

    Debt Super Cycle Will Destroy U.S. Standard of Living Overnight “Leave Society Gasping and Stupefied”

    URGENT ON GOLD… as in URGENT

    It Took 22 Years to Get to This Point

    Gold has been the right asset with which to save your funds in this millennium that began 23 years ago.

    Free Exclusive Report
    The inevitable Breakout – The two w’s

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      67 Comments

      1. Stolz Vorfahren

        uhhh….another warning from another jew owner of the bankster cartel?

      2. Satori

        Deutsche Bonds “Dropping Like A Stone” As ‘Most Dangerous Bank In The World’ Plummets

        ht tp://www.zerohedge.com/news/2016-09-16/deutsche-bonds-dropping-stone-most-dangerous-bank-world-plummets

        this is something to watch
        in addition the government is suggesting a 14 BILLION dollar fine for their involvement in mortgage fraud

        perfect set up for a black swan to come flying out of all this mess

      3. Nailbanger

        Happy Friday fellow deploreables!

        • laeagle

          I am proud to be in the ranks of Hitlery’s American ‘deplorables’!

          Louisiana Eagle standing proud and tall on a Bald Cyprus in the Atchafalaya

          • LaManiac

            Eagle,like that part too ,lived and worked down south (oilfields) 1980 I think? Still like to go down time to time,fish,hunt,crab nice people!
            North part is good too!wish I was out on my swamp this morning fishing,overcast a little mist,shit someone has to pay the bills,lol !
            Maniac –out

        • WhoWTFKnows...

          Aloha NB. Yes TGIF~
          Anybody who stores their wealth in any Banking institution is a fool. As a reminder, the FDIC insurance fund only has about $25 Billion in reserved Insurance, to cover $12 Trillion in depositors money. Gee… what could possibly go wrong there?

          So just like Musical chairs when the banks collapse, many will lose all their wealth stored in banks. Your Un-Safety Deposit Boxes also at banks will be drilled out and opened and all of your wealth store there, will also be part of the Bail-in for the Banks.

          ~WWTI…

          • Anonymous

            What they will really be after is the gold and jewelry in the boxes. Gold bandits make out whether they keep it or sell it. It’s a win-win unless they get caught.

        • buttcrackofdoom

          rite bacatcha, friend!

      4. Ronald

        Off topic: Doe’s anyone know when you can legally concealed carry in Mo. I’ve heard on the first day of the new year (NBC) and I’ve heard on the 15th of next month(CBS) and another source that says that it is 30 day’s from the 11th?

        • WhoWTFKnows...

          Ron, you need to contact your State Office and ask them. You have internet, do a search.

          ~WWTI…

        • AnonyMouse

          January 1, 2017 is the ‘slated day’ according to “trustworthy” sources. Until then, you can still do it legally. Constitution, 2nd Amendment says so.

        • AZ PREPPER

          Move to Arizona where you can conceal, open and do not need to register I suggest ccw anyways so that you know what the laws are. Good luck friend.

          • Steve in Ramona

            Moving to Prescott in the near future. Having a house built right now.

            • LaManiac

              Steve,like Ramona pretty place,first wife had family there,hell went back a couple years ago,nephew got married in the park!Wouldn’t give you 2 cents for S.D. fun when I was young,oh the women!!! Found one that saved me from me took her back south,good luck with Prescott!
              Maniac –out

          • FTW

            Does sound good and all … but … somehow … you people in Arizona don’t know how to keep McCain from getting re-elected and your border seized and controlled from outsiders….

        • Paranoid

          ‘go to nra-ila site, has links or Google Missouri Ledgeslature, has copy of law and dates. But yes Jan 1 is effective date.

      5. Sgt. Dale

        The only way to fix our banking system is to tear it down and rebuild it. It is rotten to the core. Remember you can’t fix stupid!!!!!

        They never fixed it to start with they just printed more money.

        Any time you have a banking system that is told it has to make loans to people that can’t afford them, you will have a collapse.

        I see the markets started around 100 points down again this morning. Oh well just another day in Paradise!

        Sgt.

        • john stiner

          It will never be fixed for the better. TPTB will just implement more government control.

        • buttcrackofdoom

          sgt dale, remember that art chashin on CNBS once was asked “what’s the market going to do today, art?”….his reply?…..”well, i can’t tell you which way it will go, but i CAN tell you it will do whatever it takes to take the MOST amount of money, from the MOST amount of people”…it’s a rigged club….and YOU aint in it!

          • Sgt. Dale

            “B”
            Yep!!!
            That’s why I’m not in it.
            I’m into LAND.
            Sgt.

            • buttcrackofdoom

              the only reason i WATCH the stock market is so i know when our shtf moment arrives…when the market goes down over 500 points in one day, pay attention…when it goes down like that for multiple days, it’s over.

              • anon

                Screw 500 points down.

                Lets have those market breaks work and finally close the market for the day.

                That will shut some people up.

            • Stolz Vorfahren

              Sarge , if you are into land then watch out for BLM. The issue is the cancer is spread and no one talks about the mother cell to get destroyed.

        • WhoWTFKnows...

          Yep and they are still Shorting the crapola out of Silver. They are doing it with phony paper contracts, and If I was in charge, I would audit every bank and Trader make them erase the fraudulent paper silver contracts that have no backing. We need to have 2 separate silver stocks, Hard Physical Silver and Phony Paper silver. This is comingling fraud with a hard assets that destroy wealth. People need to go to Jail for this BS.

          ~WWTI… Until we have real leadership they are too connected and too big to jail.

          • buttcrackofdoom

            “We need to have 2 separate silver stocks, Hard Physical Silver and Phony Paper silver”

            we already GOT two separate silver stocks…the shit you OWN, and the paper stuff…

      6. vocalpatriot

        “To our surprise..”
        Oh really? no one knew what could happen, despite all the warnings from every sector? This is why tptb are not to be trusted for any reason under any condition…

      7. TEST

        Hilary… the BEST candidate Goldmun Suchs/George Soros money can buy!

      8. swinging richard

        Our system will correct itself soon. We have to wait and see what the consequences are.

      9. Observer

        Banks don’t have to show losses incurred during the last credit and real estate collapse in 2008. Most banks would probably still be insolvent if they had to show the losses.

        • rabbitone

          Banks have never been out of crisis. The stupid Fed has kept U.S. interest rates artificially low for too long which causes financial instability in the banks. The loan process does not work at banks with rates this low. Among the biggest casualties of the fall in interest rates have been large U.S. banks.

          A Bank is supposed to be a financial institution which is involved in borrowing and lending money. Banks in the past would take customer deposits in return for paying customers an annual interest payment. The bank would then use the majority of these deposits to lend to other customers for a variety of loans. Falling rates squeeze banks because they make money on the spread between the interest charged for loans and payments made to customers on deposits. Other financial firms have also suffered. Low rates punish institutions such as pension funds and insurers, which hold long-term assets to pay future claims, by making those claims larger in present-value terms than they were when so-called discount rates were higher.

          One of the big things that is fueling the banking crisis in Europe is the fact that the too big to fail banks over there have more than 100 billion dollars of exposure to energy sector loans. This makes European banks even more sensitive to the price of oil than U.S. banks. The four U.S. banks with the highest dollar amount of exposure to energy loans have a capital position 60 percent greater than European banks Deutsche Bank, UBS, Credit Suisse and HSBC, according to CLSA research

      10. anon

        As the election draws near it might be good to check over your medical supplies. Pay closer attention to gunshot wounds and how to care for them. Should you not be able to go to a medical facility or help can not come to you. Not too much you can do for Chest, Head and Gut shots but do you have blood clotting bandages or even a battle dressing.

        Also for those glancing shots to legs and arms. Consider buckshot right down to #6 and #4 shot peppering your body.

        Review your Fist Aid Procedures. Remember you are going to have to rebandage those wounds till they heal. Small surgical kit is helpful. Tweezers?

        Since I am on a deadline too. That is if nothing happens I will stand down. Tired of it all. But until then try to post some useful information.

        54 days left?

        • buttcrackofdoom

          that’s why those anti-biotics will be PRICELESS, maybe even MORE expensive….and get some red-cross lifesaving training…and read “where there is no doctor”…collect nursing and drug books.

      11. Satori

        about those 90 some million “not in the labor force”
        that we’re always hearing about

        here is a blow by blow breakdown of where that figure comes from

        Trump’s absurd claim that 92 million Americans represent a ‘nation of jobless Americans’

        ht tps://www.washingtonpost.com/news/fact-checker/wp/2016/09/16/trumps-absurb-claim-that-92-million-americans-represent-a-nation-of-jobless-americans/?utm_source=huffingtonpost.com&utm_medium=referral&utm_campaign=pubexchange

        • buttcrackofdoom

          “People in retirement, on disability or in school are still part of the economy, as they buy goods and services with their Social Security checks, disability payments, tuition fees and so forth. Their money helps create jobs for people who actually want to be in the labor force”

          why not expand those programs to create even MORE jobs?

          BTW, those jobs obammy has “created” are lower paying jobs. your claims that employment is ok in our country are falling on DEAF ears, as most everyone on THIS site knows the truth about the severe unemployment situation. so you should find another site, if you expect to be heard. there are many liberal places that WILL listen to that tripe, but here, most are conservatives.. you can claim this washington post(a known liberal RAG) article exposes trump as knowing nothing about employment, but the gubmint’s OWN WEBSITE proves there is severe unemployment in amurca….just go to the site and scroll down to the percentage of americans of working-age that have a job…lately, it’s been around 62%, which means that 38% of americans of WORKING-AGE……..DON’T have a job….it’s that simple, and i don’t know how you argue with your own figures? there are at most, 2 people working for every person on the gubmint dole. and mike snyder a while back says that 51% of americans are getting money from the gubmint on one program or another.

          when you take hundreds of dollars a month from all people with decent jobs every month(obamadon’tcare), there are consequences…retail sales fall, and companies go out of business. he’s enriched the drug and healthcare people, at the expense of the working-class….sumthin’ has to give.

          • Ketchupondemand

            buttcrackofdoom, Washington Post and Huff Post and he calls himself THE CRITICAL THINKER on this website.
            Talk about true believers, jeez.
            Fricken hopeless.

            • buttcrackofdoom

              “trumps-absurb-claim-that-92-million-americans-represent-a-nation-of-jobless-americans”….was the origonal title…. if the REAL “unemployed” percent of the population is over 20%, then where do they come from?…all i gotta do is ride my bike 8 miles to see DOZENS of homeless/jobless people…i bet THEY would disagree with satori’s story too.

              • FTW

                Satori loves his/her/transgenderd Liberal News!!!

        • anonymous5

          I wondered how long it would be before Satori came along to put in a plug for his wet dream, Hillary.

          Typical Dem….

          If Chairman Mao (or Hitler for that matter) were running against Trump as the Democrat nominee, Satori would vote for him.

      12. Godsoldier

        Get the small OB tampons for bullet wounds to plug them to stop the bleeding afterall thats what they were originally for via WW1

        • anon

          Godsoldier

          You would think that is a good idea using tampons to plug the wound. Especially using them on body cavity areas. Two things to consider. When you insert the bandage into the wound are you pushing foreign material/bacteria in with it. Then when the wound initially stops bleeding you reinjure the wound when you pull the bandage out. Then you may leave part of the bandage inside the body cavity. Infection problem.

          • Godsoldier

            Its still better than bleeding out the reason i said the ob ones is cus they do not have an aplicator (plastic or cardboard tube) they are little and you use your finger to push it in so you dont have to put it far in just enough to plug the hole so you can clot you could also put some triple antibiotic ointment on it if you wanted or just start takeing some ciprofloxin antibiotic and it would be quick to push one in and just slap a peice of tape over it cus you wont have alot of time to stop firing

            • Godsoldier

              Then when your able too you can remove and flush clean the wound then stitch bandage properly

        • Stolz Vorfahren

          why using tampons if you can gather Celox Hemostatic Agents and Dressings to Control Bleeding? It is Sterile and stops major bleeding.

      13. Satori

        I make no claim that unemployment is ok in this country
        where the hell did that come from ?
        I’m fully aware of what true unemployment numbers are

        the article explains in great detail why so many people are not in the work force

        do you expect students to be in the work force?
        how about the elderly and infirm?
        how about the handicapped ?
        did you even read the F_CKING article ???

        have evidence to the contrary ?

        fine
        lets see it

        you know Satori’s rule

        FACTS TALK
        BULL SHIT WALKS

        here
        let me hold the door for you

        and yet once AGAIN

        reedin’ KomPERhEnSHuN is yer friend

        now go back and read and attempt to understand what the article is trying to explain

        • buttcrackofdoom

          “I make no claim that unemployment is ok in this country
          where the hell did that come from ?”

          isn’t that EXACTLY what the washington post article is claiming? why else would you put up that story? that story claims all those people that don’t have a job DON’T WANT ONE…if they aren’t in the “unemployed” ranks, then they don’t WANT a job….go read the article again that YOU posted, until you understand all their misinformation/lies. and here’s a link to the BLS numbers to look up for yourself…look deep enough, and the truth is there….trump is RIGHT.

          • Satori

            ok Buttcrack
            here’s what we’re gonna do

            all those people ,like several family members of mine<who are financially well off and have retired early
            they're gonna have to go start looking for a job,even though they mother freakin don't want a job

            and all those full time students?
            we're gonna force them to drop out of sKoOl and go get a job

            and those lazy old people and those severely handicapped people -lazy loafers all,cutting off those SS checks,they can go to work at Burger King

            and what about all those lazy disabled veterans ?
            cuttin off those checks too
            (gee Buttcrack why are you attacking our military ???)

            understand now ?

            now hurry up
            I can't stand here holding this door open forever
            I'm not air conditioning the neighborhood

            • buttcrackofdoom

              never really paid any attention to him til now, and it seems sometimes he SEEMS intelligent, but when i just fact-checked him, he’s got some bad info, fer sure. i’m watchin’ from here on out….i will call out ALL trolls that don’t carry “the (shtfan)party line”.

            • buttcrackofdoom

              satori, i will say to you what i said to the priest when i went to confession today…”you FIRST!”

      14. Observer

        The reason they went off the gold standard? Taxes. They couldn’t raise taxes high enough to pay for the globalism and socialism. Sooo, they printed money as if there was no tomorrow. With nothing backing the buck, it becomes, in effect, a hidden tax that most people were unaware of. A huge tax. A nation destroying tax. The suffering will be wide spread.

        • Satori

          there is app 1.5 TRILLION US dollars in circulation

          does enough physical gold even exist to cover that amount ?

          I’ll let somebody else do the math

          • rellik

            Satori,
            1.552440e+11 grams of gold are estimated to exist above ground.
            BBC ht tp://www.bbc.com/news/magazine-21969100. That is about
            6.5 trillion dollars, assuming I didn’t screw up the conversion of grams to troy ounces.
            That of course has and will change. But it does make the point that Gold could be a backup to the dollar. I’m not big on PM’s as I invest in tangibles and can’t afford much gold just yet. I’d sooner spend $1300 on farm supplies, than buy a Maple leaf coin.

            • FTW

              BBC??? Oh … that same news network that claimed WT7 Tower fell … 26 minutes before it actually did? … that same BBC?

              Sure do like your Wallstreet Journal and CNN information … don’t ‘ya Satori?

              • rellik

                FTW,
                Rellik is the source,
                not Satori.
                I use BBC only for science stuff.
                They are generally accurate in that
                area. US media can’t be trusted
                for anything.
                I’d use Pravda, but they didn’t
                comment on it yet.

      15. anon

        I can’t wait till election day.

        As part of the title states, “Before the Next Crisis”.

        And the next, and the next, and the next.

        I am sure that Braveheart1776 is ready to park his vehicle. Have to hand it to him for all that driving I would have gone through some major Road Rage. Hope he settle’s in soon.

        Rellik and Nailbanger. Also Ketchupondemand. All islanders. Surrounded by Paradise and dumbasses at the same time. WoW!

        Me? I have all sorts of invasions. Bugs, Yankee’s and Illegal immigrants. Can I include weather? but that’s the South for ya.

        We all have our problems and all we can do is our best to overcome them.

        Lot of good people here. Let’s see how it all pans out.

        • Ketchupondemand

          anon, back at you brother. My wife and I loved our years in Fla., early to mid 80’s, (Daytona area) and when I was single in the late 70’s(Mel. Bch.)
          It was a really great State then. Don’t know what it’s like these days but you know, wherever it is, it’s possible to find a lot to like about a place despite the downsides.

          I’ve found the pluses outweigh the minuses here by quite a bit. We have surrounded ourselves with food and water and protection and more.
          Now, continuing my goal of avoiding a local ER or fender bender, the quest continues. So far, so good.

          • rellik

            Stay off H1.

      16. AZ PREPPER

        Get a JOB !!!!

      17. TEST

        You know, part of the financial meltdown is predicated on the BIG GREEN MONEY, anti-science global warming scam (ClimateGate, anyone? No warming since 1998 anyone? Was warmer during the MWP 1,000 years ago anyone?)

        Anyhow, a short article by Dr. William Briggs on the topic here: https://stream.org/xkcds-global-warming-time-series-mistakes/

        Recall that there may be a trillion dollars going into this scam – all out of YOUR pocket. No wonder organizations like Goldmun Sucks (sorry, couldn’t resist) are all over this like a cheap suit.

      18. anon

        Stop the bullshit with a Civil War.

      19. Heartless

        Is it income inequality or is it power inequality? For the latter is what actually produces the former. If one person or group controls the system in which income is produced and gathered, it matters not the amounts so accumulated. Consider the basic difference between by-the-job/time-clock workers versus those on salary. The former only earn due to the specific set of tasks. The latter, by a longer-reaching set of parameters. Whereas the outcome of a contract being satisfied is important to the salaried employee or business owner, it is the ability to have long-term stability and a way of life that is not bogged down by daily needs. Be those required by the jobs performed or the incoming streams of earnings. A CEO is secure to do what is almost unthinkable to the timecard puncher. He can lose and be able to continue because the system in which he participates anticipates losses. The resources – political as well as capital are present.

        No, the inequality really has nothing to do with income at all.

      20. B from CA

        I wrote a post earlier about my love for Alpaca. Alpaca is warmer and softer than wool. It is warm even when wet. I believe everyone should own alpaca garments. Knitters should include Alpaca yarn in their stash of yarns.

        I told you all that buying an Alpaca is cost prohibitive. A pregnant female sells for $30,000. A high quality stud for $150,000. That was true in 2005 when I looked into it. I researched on the Internet and learned that now in September of 2016 things have changed dramatically.

        The bottom fell out of the over amped up USA Alpaca market. The over glorifying advertisements brought in people who had never owned animals, and who had no idea what they were doing. These get rich types thought they didn’t need to do anything, just cash in on profits. But life isn’t like that. You have to take care of these animals. They need to be fed and watered every day. They require a veterinary schedule to be sure they have all needed in order to prevent and/or treat illness. In short, there is hard work and expense in maintaining any animal, including Alpacas.

        As a result of the publics ignorance about the animals and an even greater ignorance about what to do with the fleece shorn once a year, many owners trashed the precious fleece and let their animals waste away. Neglected Alpacas are being rescued and nursed back to health by interested parties. Now, I don’t want to put these good people down. What they are doing is noble. But isn’t it also schrewed.

        The price for a pregnant Alpaca has dropped from $30,000 to $3,000. That’s a huge drop, 90%. But $3,000 ain’t chump change. A great stud was going for $150,000 in 2005. Today it is $80,000. Again, it ain’t chump change. Now you can purchase an ordinary male Alpaca for $1,200.00. So, although less than before, these furry creatures still go for a few bucks.

        This is my point. I said before that I would let you in on my idea for a great investment after I get into it; well I’m letting you in even before I get in myself. So don’t say I never did anything for you. This Alpaca business has bottomed out. What did old Amschell Rothschild say “buy when there’s blood in the streets”. There’s blood in the streets of the USA Alpaca Industry.

        Foreign competition has made USA Alpaca much more expensive and USA has struggled to stay alive. But although down, it isn’t out. More and more people are willing to buy American if the price difference isn’t too great. Alpaca farmers are organizing in order to create processing facilities to turn fleece into yarn and clothing, blankets, and rugs. That’s were the money is. I have an ability to look into the future. A God given ability of visionary aptitude is not the domain of experts alone.

        Now this is the real clincher. Alpaca can be eaten. So, it has numerous possibilities for its usefulness. I say, as lamb is here to stay. And wool will be with us forever. Even so, the fledgling Alpaca Industry is going to take off and make a lot of people rich. A lot more are not going to get rich, but they are going to find room for Alpaca on homesteads around America.

        I hope you have not found this lengthily post without merit.

        Be well all.

        ___

      21. Asshat

        Stupid banks loaned $ to high risk borrowers who’s fault is that. I’m supposed to feel bad for people who were biting more than they can chew and the predator banks were there to feed their lust for wares they can’t afford. Palease when people were going to dinner every Friday driving new vehicles wearing designer clothes to impress friends that are phony as hell I was going without fixing and making due to be able to prepare my family for hard times. When the day of rekoning hits these people will wish they ate humble pie instead of living lavida loca.

      22. olde reb

        “How does the Federal Reserve steal billions daily from the U.S. government ?” you may ask. Let me make it simply. The FRBNY has exclusive control of the $8-10 trillion annually received from the auctions of Treasury securities. Ref. 31 CFR 375.3. The accounts are client accounts–not operating accounts. There are no reports or audits of the accounts given to Congress or the public. The profit of the Fed legally belongs to the government. Concealing and taking what belongs to the government is embezzling. Details below.

        *************************
        FEDERAL RESERVE SCAM

        The Federal Reserve system is used by the Wall Street bankers to conceal the theft of $6 billion daily using the FRBNY’s exclusive control of the accounts of auction funds of Treasury securities. They have successfully operated the scheme for 100 years.

        The FRBNY has exclusive control of disbursements of the auction accounts. Ref. 31 CFR 375.3. Ref. http://www.scribd.com/doc/48194264/rip-off-by-the-Federal-Reserve-revised.

        The evidence that the Federal Reserve is diverting the money from the government using the above accounting scam is in plain sight for those who wish to see it:

        ONE: The FRBNY will only establish a line of credit for the government (book entry money) when they receive a Treasury security in the amount of the line of credit.

        TWO: The deficit security is sold as a small percentage on the auctioned roll-over securities. The FRBNY handles all of the accounts and disbursements. Ref. 31 CFR 375.3. The accounts are client accounts (not operational accounts) and have never been audited. Audits of the FR are conducted according to guidelines established by the BOG.

        THREE: Funds from auctioning the deficit security issues (currently $2 trillion annually, $6 billion daily) cannot go to the government. If they did, they would have to buy the securities just issued since no other securities have been purchased. Under those circumstances, there would be no increase in the money in circulation (inflation) nor would there be any increase in the national debt. The money from the auction must go somewhere but it cannot go to the government.

        FOUR: The only feasible destination for the funds is to members of the Primary Dealers who are tasked with collecting called and redeemed Treasury securities. As hidden owners of the corporate Board of Governors (privately owned corporations are not required to file records with the SEC), they can receive deficit spending profit along with funds for the roll-over security work. The owners have put up no consideration for receiving $6 billion daily, even thou it is touted as a loan. (If the non-existing loan was being paid off by the hidden money, it would then result is eliminating any increase in the National Debt. In addition, who, or what,is the source of the putative loan. The Fed does not have it.) (The operation of the BOG readily lends itself to a corporate structure; the FR System does not.)

        FIVE: Profit of the Federal Reserve legally belongs to the government.

        It is assumed the same profitable scam has been set up with the Euro with each nation pledging to guarantee payment on the securities sold by the ECB. The money from the sale of the securities is theorized, based upon the Federal Reserve documented scheme, to go to the controllers/owners of the ECB. Money from the above operations are theorized to fund the New World Order scheme. Ref.
        https://www.scribd.com/document/115919607/FUNDING-THE-NEW-WORLD-ORDER.

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