The analysis of the Federal Reserve by Michael Snyder here, and the imposing threat to our economy by the Fed is very correct. It tends to break from reality at paragraph 4 which suggests the Fed is not operating for a profit.

There are many that think of the Federal Reserve as an evil profit-making machine. But the truth is that the Fed itself wasn’t designed to make money. Rather, the system was set up so that others could make an obscene amount of money from all of the debt that the system creates.

If the U.S. government had been issuing debt-free money all this time, the U.S. government would likely not be spending one penny on interest payments. Instead, the U.S. government will spend over a trillion dollars just on interest on the national debt in 2025. This is money that belongs to U.S. taxpayers that is transferred to the U.S. government which in turn is transferred to wealthy international bankers and other foreign governments.

This is the magic of the Federal Reserve system. It is about getting the U.S. government enslaved to debt and using that debt to transfer trillions of dollars of our wealth into the hands of others.

As interest rates go up, this transfer of wealth is going to become even more brutal.

As you fill out your tax return this year, just keep in mind that vast quantities of our money is going to pay interest on debt that the U.S. government never needed to take on.

There are some very happy people out there that are becoming fabulously wealthy at our expense.

—The Economic Collapse Blog, March 18, 2025

A TreasuryDirect post has stated the government finances its operation by selling Deficit Spending Treasury securities [DS]. The DS are purchased by the FRBNY entering a purchase amount in a government ledger which it, as a fiscal agent of the government, maintains in its possession —as a book-entry creation of fiat currency. The Treasury issues checks on those accounts to govt suppliers who then deposit the checks in commercial banks. Withdrawals of cash from the accounts receive Federal Reserve Notes. Those Notes historically have been identified as a debt of the Fed Redeemable in Gold or in Lawful Money.

FRN’s [a debt of the Fed] has been added to the market and inflation has occurred. The commercial banks, to fulfill the customers request for ‘money,’ must buy FRNs from the Fed, which they purchase at face value. The U.S. mint has printed the FRNs and sells them at cost of production to the Fed. The Fed’s Annual Report to Congress used to list the cost of individual bills as pennies for each Washington and a few dollars for each Bennie. Current Reports show only an annual cost. This profit, from sales to commercial banks, has not been found in the Report. [If the purchases by commercial banks were made with fiat value, there would be no National Debt.]

By the 1933 bogus legislative action of 31 CFR §462, the Fed’s debt is identified as a Legal Tender and became a debt of the public. If the Fed is a for-profit entity, it is not a suitable creation as a government agency. If fraud is evidenced, it would void the legislation from its inception and the debt would exclusively be the responsibility of the Federal Reserve. The debt would be payable in gold at $20 per ounce? [The Fed has claimed in court to not be an agency but is listed as an agency in the Federal Register.]

But what does the Fed do with the DS it has ‘purchased’ with credit [debt]? TreasuryDirect Institutional tabulations historically showed auctioned securities with a ‘new cash’ listing. That is an attempt to have the reader believe this is the source of inflation. It does not work. Selling of the security on the market cannot cause inflation. When the public purchases items with fiat money, it is called counterfeiting. When the govt can buy items with fiat money, it is called inflation.

“New cash” suggests a DS component was added to the auctioned security for redeeming mature securities. The Fed obviously controls the interest rate and terms of the auctioned securities. Repeated requests for relevant information resulted in removal of the tabulations. It would be an easy matter for the FRBNY, with its exclusive control of auction funds and any related actions they wish to claim, to saddle a redeeming security with a DS component and separate them after auction. Ref. 31 CFR §375.3. The auction client accounts [not operational accounts] have never been audited. The BOG establishes guidelines for audits.

The auctions of Treasury securities for redeeming involves handling of government funds by the FRBNY, as a fiscal agent of the government. The GAO has inherent rights to audit any such government funds. Access to such records were expanded to include FOIA demands by the 2010 Bloomberg v Fed Reserve 2^nd Circuit COA, affirmed trial Opinion. Congress will never approve an audit of their cash cow.

If the DS component went to the govt, it would negate any increase in the National Debt. It has to go to a private party such as an alleged closely held Board of Governors of the FR, Inc., or some such entity that does not have to file corporate records with the SEC. That profit would be $36 Trillion for the past 100 years and distributed to Rothschild shareholders such as those who participated at Jekyll Island who may also be Primary Dealers used to collect maturing Treasury securities for redeeming or the four NYC banks that received humongous bailouts [of book-entry FRN’s] in 2008.

The inherent bankruptcy of the scheme may escape the casual reader. The initial purchase by the Fed of a deficit spending Treasury security creates the principal of a loan [FRNotes] from the Fed. The promise is to repay the principal plus interest at maturity. The interest is never created. The only way to perpetuate the scheme is to create new principal and pay the interest due from the new principal. The scheme requires a linear growth in principal but has an exponential growth in interest. It is a classic Ponzi scheme.

All profit of the Fed legally belongs to the govt—and similar accounts are subject to govt audit and to FOIA demands. Ref. Bloomberg v. Fed Reserve, 2^nd Circuit COA, 2010; trial court opinion affirmed. Historic European Rothschild national banks consistently impoverished the nation, bankrupt the govt, and enriched the bankers. Ref. FATAL EMBRACE; [Rothschild Ashkenazi bankers] AND THE STATE by Benjamin Ginsberg.

It is submitted the ultimate Globalist goal of the Federal Reserve, as a potential of the developments addressed in your writing identified above, is similar to the Goldman Sachs recent creation of an impossible debt scheme with Greece. All sovereign power of Greece has become usurped by the Rothschild financial entity known as the Troika. The USA is next in line.

As a side issue, the 12 privately owned FR Banks identified as independent entities in paragraph 5 of Snyder’s writing are each a franchise purchased by regional commercial banks from the BOG. The BOG appoints 3 of the 9 Board members of each Bank. The BOG can terminate any of the 108 Board members without cause and without recourse. Control is absolute.

It is also noted the Fed has ability to control the appointment of chiefs from a BOG list of acceptable candidates, and to a five year term. This degree of self control is not characteristic of any other agency.

If you can turn this into a whistle-blower lawsuit, you can retire very wealthy.

*

Click the share button below to email/forward this article. Follow us on Instagram and X and subscribe to our Telegram Channel. Feel free to repost Global Research articles with proper attribution.

Global Research is a reader-funded media. We do not accept any funding from corporations or governments. Help us stay afloat. Click the image below to make a one-time or recurring donation.