Question regarding The Fed/Audit the Fed - please answer!

Hey fellow ATSers,

I have a pretty straightforward question regarding the Federal Reserve. I was reading the following thread earlier today:

www.abovetopsecret.com...

The audit revealed that the Fed loaned over $15 trillion dollars at zero percent interest to offshore banks that were "too big to fail". Another ATSer suggested that instead of loaning that money to foreign banks, that the 16 trillion should have been used to eliminate our $15 trillion debt.

My question: If indeed the Fed loaned the money to the US Gov't, wouldn't that mean that instead of eliminating our debt, we would just owe another entity? That entity being the fed of course, which is a private bank and not owned by the gov't.

Or, is there some way this money could have been spent in order to help reduce our deficit?

Thanks!!!

Originally posted by followtheevidence
Hey fellow ATSers,

I have a pretty straightforward question regarding the Federal Reserve. I was reading the following thread earlier today:

www.abovetopsecret.com...

The audit revealed that the Fed loaned over $15 trillion dollars at zero percent interest to offshore banks that were "too big to fail". Another ATSer suggested that instead of loaning that money to foreign banks, that the 16 trillion should have been used to eliminate our $15 trillion debt.

My question: If indeed the Fed loaned the money to the US Gov't, wouldn't that mean that instead of eliminating our debt, we would just owe another entity? That entity being the fed of course, which is a private bank and not owned by the gov't.

Or, is there some way this money could have been spent in order to help reduce our deficit?

Thanks!!!

edit on 19-10-2011 by followtheevidence because: (no reason given)

You are absolutely correct, the USG would still owe the fed. But if the fed gave us $15 trillion interest free, and we turned right back around and paid off our original debt we would save billions in interest alone.

However said it isn't to the best interest of the Fed to give the US money to bail us out, that would end the game for them to some extent. The Fed exists to create debt and as collect interest on fiat money. If every entity in debt were to pay it off the money would just disappear. Debt is what keeps the world turning financially these days.

We should have had the Fed borrow us that money, paid off our debt, then got rid of the Federal Reserve. Then ALL our problems would be solved. Well the biggest of them.

reply to post by americanbuffalo1


Well then why did the Fed loan out trillions of dollars to offshore banks at 0% interest rates?

I'm an idiot when it comes to economics/banking in general. Just a lay citizen trying to get a better grasp on things. Feel like it's the responsible thing to do...for whatever reason.

Thanks!

reply to post by followtheevidence



Well the simple answer is to pay the interest on the loans already on those countries books to banks around the world. It's a game called bailout played time and time again. If you want to know more about the way current money works in the world I suggest you read, " The Creature from Jekyll Island" by G. Edward Griffin. Your ignorance is just what the Fed and all its cartel partners want from you and all of us so they make the world of money needlessly complicated and cloaked to the everyday folks. The book will help 'enlighten' you. Simply put the Fed exists for banks and banks alone really.