Posted on 06/17/2025 11:39:37 AM PDT by RandFan
@RandPaul
Congress spends $2 trillion more than its revenues, the Fed then buys this debt.
Congress then pays the Fed interest.
The Fed then pays interest to big banks to keep cash reserves.
This is how govt makes the rich richer.
But it gets worse. According economist Judy Shelton: “44% of the more the Fed currently [pays to the big banks] goes to foreign banks.”
So, as Congress drags our country into bankruptcy, the FED enriches rich foreign banks.
(Excerpt) Read more at x.com ...
Any Fed watchers confirm this?
End the Fed
Easy solution: tax US interest payments to the Fed at 100%.
What part of "international development" escapes our little noise box from Kentucky?
the US dollar is the world’s primary currency
The US dollar is held, lent and repaid abroad between foreign parties and foreign banks with no other connection to the United States, in very large amounts. This is called The Eurodollar System.
The Federal Reserve is responsible for interest rates, liquidity and availability of the US Dollar for the entire world, not just the United States
So in its scope the Federal Reserve is really a global, not exclusively American, central bank.
Hard, hard work by the uniparty to enrich itself. Plus kickbacks, commissions, money laundering, payoffs, as the list is endless. The yoots of today have no idea what’s gonna hit them.
And the Fed only so much U.S. treasury debt as part of its reserves is only recent history that began under the Fed led by Obama’s picks at and after the 2008 financial crisis. The Fed’s stated intention at the time was to wind down that level of holdings of treasury debt, as the financial crisis eased. That winding down never happened. Now the Fed risks inducing other negative repercussions to fiscal and monetary policy from trying to unload so much federal treasury debt. It is a crisis of the fed’s own making. It is a crisis it creating by trying to help the federal government explode its debt level since Covid by being a big buyer the treasury could count on.
Was Rand singing this tune during GW Bush’s 2007 bank bailout that went primarily ($384 billion) to Deutsche Bank?
Finally, a topic Rand totally understands. Bravo!
It’s what inspired him to run for Senate
If hacks spent less time looking for air time and quotes and do what they are hired for things would be a lot better.
Midterms are the answer for replacement it’s due for many.
Congress and Senate have became nothing more then an easy money job with perks what a disgrace.
Cantillon Effect.
The closer you are to money creation (wealth pump) the more you benefit from
https://river.com/learn/terms/c/cantillon-effect/
It’s a good one and very true
Like a pyramid
He was in the house at the time with a huge democratic majority. Doubt he had much say in it except a possible no vote.
In 1994, for the first time, the Federal Reserve took a seat on the board of the BIS. Also in that year, the Fed purchased stock in the BIS.
https://planetequity2022.solari.com/introduction/
We do know that, on occasion, foreigners have reported that they hold more U.S. debt than the U.S. government reports owing. The Financial Times described a particularly notable example in a June 14, 2006 article titled “Discrepancies in US accounts hide black hole.” Note that this article was published in the same year that the power to waive Securities and Exchange Commission (SEC) compliance by banks and contractors doing business with the government was delegated to the Director of National Intelligence.
Indeed, the last time a U.S. Treasury Secretary made the mistake of commissioning a study of the outstanding U.S. government debt, the published study was taken down quickly, and he left shortly thereafter. This was Secretary Paul O’Neill in the George W. Bush Administration; O’Neill also made the mistake of trying to warn that the estimates for the cost of the Iraq invasion were unreasonably low.
What this means is that the ability of the New York Fed and its members/owners to create money, monetize the federal debt, and act as agent for the U.S. government in all global financial markets gives it unlimited access to the financial resources of the U.S. government. What is not clear are the options at the New York Fed members’ disposal to take that money and move it into private hands.
Who and what is the BIS? The BIS is a private bank in Basel, Switzerland that is governed by a self-perpetuating board representing its 63 central bank members. The BIS was created in 1930 under Swiss law and endowed with various forms of sovereign immunity that were fleshed out in the Brussels Protocol of 1936. If you review the BIS powers of immunity (available on the BIS website), what you realize is that once gold, deposits, securities, data, and documents are in the possession of the BIS, they can be transferred globally on behalf of BIS members or by its members as agents, all while enjoying complete secrecy and immunity from the laws of sovereign nations.
Upon first discovering the BIS, most people—I among them—assumed that the sovereign immunities of the BIS applied solely to BIS operations in Switzerland and to BIS member-representatives traveling to and fro. However, there is now evidence to suggest that the BIS has created mechanisms to extend these immunities to a syndicate of “systemically important banks,” “systemically important financial institutions” (for example, insurance companies), and “systemically important payment systems” (presumably major clearing or settlement systems) through the Financial Stability Board (FSB), an affiliated Swiss association that the BIS hosts.
The BIS also has extended its sovereign immunities and secrecy powers through its contracts with various governments involving the recently created BIS Innovation Hubs located around the world. The BIS Innovation Hubs were created to facilitate the launch of central bank digital currencies (CBDCs).
BIS General Manager Agustín Carstens clearly explained the BIS affection for CBDCs in an October 2020 International Monetary Fund (IMF) panel on cross-border payments:
"The key difference with the CBDC (as compared to cash) is that the central bank will have absolute control on the rules and regulations that will determine the use of that expression of central bank liability. And also, we will have the technology to enforce that. Those . . . two issues are extremely important."
further...
Article from 2019:
The largest shareowners of the New York Fed are the following five Wall Street banks: JPMorgan Chase, Citigroup, Goldman Sachs, Morgan Stanley, and Bank of New York Mellon. Those five banks represent two-thirds of the eight Global Systemically Important Banks (G-SIBs) in the United States. The other three G-SIBs are Bank of America, a shareowner in the Richmond Fed; Wells Fargo, a shareowner of the San Francisco Fed; and State Street, a shareowner in the Boston Fed.
In 2019, the NY Fed owned/controlled just about 52% of the Federal Reserve's total assets.
What this all points to of course, is that as its member banks are defined by the BIS as "Global Systemically Important Banks" - and several of the NY Fed's member banks are G-SIBs, the Fed can and does operate "above the law."
It would be nice if Rand Paul - or someone in Washington - talked about how Congress is currently preparing to pass major legislation on crypto/stablecoin, and digital assets. Major legislation that has been kept out of the news cycle by the California riots and the Israel/Iran fiasco.
So in concrete terms, we're finally getting closer to CDBC - controlled ultimately - by the BIS, a global financial institution with ZERO accountability - because it operates "above the law."
Outstanding post and well researched
I knew they are/were shareholders. A few overseas too. It should make people mad but it doesn’t!
Congress then pays the Fed interest.
The Fed then pays interest to big banks to keep cash reserves.
If the banks held their reserves in government debt, they'd earn the same. The US would pay the same.
How is this "enriching" any banks?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.