THE BAD BANK Fed Now In Terminal Mode
By Wayne Jett
The Federal Reserve Bank of the United States has always been a “bad” bank in the sense that its role has been anti-social and deceitful. Now it has become a “bad bank” of extraordinary size and consequence in the more colloquial sense. That is, the Fed is the bank into which bad assets are sold to be buried in a soon-to-come bankruptcy.
The privately owned Fed has reached the terminal phase of its existence as the primary purveyor of fiat currency in the world. It is now being used as the “porcelain receptacle” into which all manner of bad assets (“junk”) is descending. The game is to extract from the Fed currently spendable cash in exchange for junk before the Fed’s fast approaching winding down.
Winding Down The Fed
Close observers have reported that President Donald Trump is now controlling the Fed through the Treasury Department, and that the Fed is being required to purchase Treasury bonds owned by other governments worldwide. Politically, financially and legally, a default on such bonds by Treasury may be handled more efficiently when the Fed, rather than foreign governments, is the primary debtor.
Default on Treasury debt is coming; the necessity for it and signs of it are clear enough. Far better that the default be blamed on the real culprit(s) – the Fed, its fiat currency and its globalist cabal ownership – rather than the American people, who themselves are equally victimized by the globalists and their fiat machinations. President Trump is very capable in such financial reorganizations, and he wisely has restored American military strength to protect against attacks by other cabal-controlled governments during the approaching monetary reform and re-structuring.
Gushing New Monetary Base
Examining financial reports of a financial institution which has never undergone an independent audit is an exercise apt to spread more misinformation and confusion than light on the subject. Nonetheless, for more than 100 years the Federal Reserve has issued the paper currency which Americans are required by law to accept as payment for all debts, public and private, including wages for work. Each of us will be affected by the Fed’s impending termination and anticipated actions by the U. S. government to establish a system of sound money capable of enhancing general economic growth and prosperity.
As often is the case when seeking to detect and understand Fed actions, we go first to its report of the monetary base to see how many dollars (i.e., Federal Reserve Notes) exist either as paper currency or computer data entry. Recall the monetary base in 2008 was about $845 billion. Total monetary base on June 30, 2019, was $3.275 trillion –an increase of 288% over 11 years, and an average increase in monetary base of about 26% annually.
On June 30, 2020, the Fed’s reported monetary base was $5.002 trillion, a year-to-year increase over 2019 of 52.74%. That is a monstrous increase in monetary base of the heretofore most important central bank in international commerce. Recall that the largest annual increase in monetary base in the decade before the “financial terrorism” of 2008 was about $45 billion. Thus, the $1.727 trillion increase in monetary base during the 12 months ended June 30, 2020, was 38 times as much as any year in the decade preceding the “housing bubble” blamed for 2008.
Loading Fed With Treasury Debt
Where have all these new Fed notes gone? Based on the Fed’s reports, the $1.7 trillion has been spent (presumably on President Trump’s orders) to purchase Treasury bonds owned by other national governments. With the Fed itself now holding this Treasury debt, the Treasury debt owed to the Fed can be off-set against obligations of the Fed to Treasury and to other Americans in any “winding up” or insolvency proceeding involving the Fed’s operations.
Another important impact of the Fed’s purchase of Treasury debt from foreign nations is the likelihood that those nations will spend the Fed notes into their own economies and into the U. S. economy, boosting both in this period of unprecedented shut-down of productive activity resulting from the COVID-19 virus. Holding currency that is vulnerable to inflation is less likely than holding Treasury bonds paying interest, albeit at low rates.
Monetary Reset – Cabal Demise
Putting aside “winding up” the Fed for the time being, the recently created $1.7 trillion paid to other nations for their U. S. Treasury bonds will eventually make its way back into the U. S. economy. How soon will it arrive, how will it be spent and how much inflation in U. S. prices will it cause? This will depend partly on U. S. trade policies, which should continue to favor sale of U. S. goods and services as contrasted with sale of real estate and other hard assets.
The Trump administration seeks an economic and monetary reset which terminates the worldwide network of Rothschild-controlled central banks and their fiat currencies. Achieving this requires both conquering the globalist cabal’s great financial, bureaucratic and military might around the world, plus creating a new monetary system with sound money serving all nations, including America.
Sound money has value measured by and convertible into gold. Funding this new monetary system involves recovery of substantial assets illicitly acquired by the cabal during at least the past 120 years. These goals are highly complex and hotly contested; they may actually take somewhat longer than one presidential term to accomplish. But this reality ought to lend even greater importance to the tasks. No other alternatives provide good outcomes for ourselves or our sons and daughters.