Is the Federal debt a criminal enterprise, enabled by a criminal syndicate? Read on before you pass judgment.
Charles Hugh Smith
Of Two Minds
Correspondent Doug laid out a compelling case that the Federal debt is fundamentally a criminal scam, operated by the criminal syndicate of the Treasury and the Federal Reserve:
The Federal Reserve is a criminal syndicate buying debt that the government eagerly creates and sells for spending money that dumps the debt on us civilians. What perplexes me is that the scam is so simple and all the intellectuals either don’t get it or are handcuffed by mega-corporate media owners.
The scam in simple terms:
1. Uncle Sam borrows money from The Fed, China, oil exporters, Bank of England, etc. by selling Treasury bonds
2. You are responsible for the bonds, i.e. IOUs
3. Uncle Sam collects taxes and pays the bondholders
4. The debt is breaking us; life will not be the same in the years to come
Uncle Sam borrows all its spending money from the non-government Fed and others, and spends only borrowed dollars raised from exchanging bonds for dollars as a debt plus interest on your back.
Uncle Sam collects income taxes and funnels the money to the holders of these criminal Treasury bonds.
The Fed/Treasury is an evil axis defunding you and me: the debt is $14.5 trillion; this is our debt, not the government’s debt. The government does not generally earn money; we do. Therefore every criminal debt certificate (Treasury bond) the Treasury exchanges for cash is a debt on you and me–a promise to pay for which citizens are responsible to pay, IOUs in simple terms. If the government printed the money instead of the criminal Fed, there would be no debt.
Uncle Sam borrows bucks and you become automatically indentured to pay back the bond and pay the vig! How is this not a criminal enterprise? If you go to a loan shark, at least you get to have the money in your hand and can spend it before you have to repay the loan and pay the vig!