About US Federal Reserve

Since the U.S. government does not issue coins and only uses debt rights, and then uses government bonds to private central banks to the Federal Reserve for mortgage, can we issue currency through the Fed and commercial banking systems, so the source of the US dollar is on government bonds.
The first step, Congress approves the scale of government bonds. The Ministry of Finance designed the national bond into different types of bonds. Among them, the one-year period is called T-Bills (). The age is called T-Bonds. These bonds are auctioned in the open market at different times at different frequencies. The Ministry of Finance finally sent all the Treasury bonds that were not sold in the auction and trading to the Federal Reserve. The Federal Reserve was received in full. At this time, the Fed's account recorded these Treasury bonds under the "securities assets" () item.
The because the US government is mortgaged by the US government in the future, it is considered to be the "most reliable asset" in the world. When the Federal Reserve has received this "asset", it can use it to generate a liability, which is the "Federal Reserve check" printed by the Federal Reserve. This is the key step of "omnipotent". Behind the first check from the Federal Reserve, there is no money to support this "empty check".
This is a step of exquisite design and camouflage. Its existence makes it easier for government auction bonds to control "supply and demand". Show a large number of marks of printing money. The Federal Reserve, which is obviously a white wolf, turned out to be completely balanced on the accounting account. The "assets" of government bonds are equal to the "liabilities" of currencies. The entire banking system is cleverly wrapped under this shell.
This is a simple and vital step, creating the biggest unfair in the world. The people's future taxes were mortgaged by the government to private central banks to "borrow" US dollars. Because they "borrowed money" from private banks, the government owed huge interest. Its unfair body is now:
. The people's future tax should not be mortgaged, because the money has not been earned, and the mortgage future will inevitably lead to depreciation of the currency purchasing power, which will hurt the people's savings.
. The people's future tax should not be mortgaged to the private central bank. Baseders suddenly have the promise of the people's future tax in the case of almost no money. Wolf".
three, the government owed huge interest on the same way, and these interest expenses eventually became a burden on the people. The people not only inexplicably mortgaged their future, but now they must pay taxes immediately to repay the interest of the government owed private central banks. The greater the circulation of the US dollar, the heavier the people's interest burden, and the past generations can never be paid off!
Step 2, when the federal government received the "Federal Reserve check" issued by the Federal Reserve, this magical check was deposited back to the Federal Reserve bank and changed into a change, becoming a "government savings" () On the Fed's account.
The third step, when the federal government began to spend money, the federal checks of large and small federal check constituted the "first wave" currency wave to the economy. The companies and individuals who received these checks kept them on their own commercial bank accounts, and the money became "commercial bank savings" (). At this time, they show "dual personality". On the one hand, they are banks' liabilities, because these money belongs to stores, and will be returned to others sooner or later. But on the other hand, they constitute the bank's "assets" and can be used for loan. Everything is balanced from the accounting account, and the same assets constitute the same liabilities. However, commercial banks began to use the "partial reserve" () high -twice large device to start preparing to "create" currencies.
The fourth step, commercial bank savings are re -classified as "bank reserves" () on bank accounts. At this time, these savings have been made through the "assets" of the bank to a "reserve" for money seeds. Under the "partial reserve" system, the Fed allows commercial banks to retain only 10%of its savings for "reserves" (generally speaking, Bank of America only retains 1%to 2%of the total savings cash and 8 %To 9%of bills are used as "reserve" in their own "vaults", and 90%of savings are loaned. As a result, 90%of the money will be used by banks to issue credit.
The problem is there. When 90%of the savings are loaned to others, what if the original storeders write checks or use money? In fact, when the loan occurs, these loans are not the original savings, but the "new money" created by nothing. These "new money" made the total currency owned by the bank an increase of 90%immediately than the "old money". Unlike "old money", "new money" can bring interest income to banks. This is the currency of the "second wave" to the economy. When the "second wave" currency returned to commercial banks, more waves of "new money" created, and its amount was decreasing. When the "20th waves" ended, a US dollar Treasury bonds have created a $ 10 currency circulation increase in the close coordination of the Fed and commercial banks. If the amount of currency circulation generated by the balance of national bonds and the surplus waves created by its currency is greater than the needs of economic growth, the purchasing power of all "old money" will decline, which is the root cause of inflation. When from 2001 to 2006, when the United States added a new US $ 3 trillion government bond, a considerable part of them directly entered the currency circulation, coupled with the redemption and interest payment of government bonds many years ago , Real estate, petroleum, education, medical care, insurance prices have risen sharply.
But most of the additional government bonds did not enter the banking system directly, but were purchased by foreign central banks, non -gold institutions in the United States, and individuals. In this case, these buyers spent the existence of the US dollar, so they did not "create" a new US dollar. Only when the Fed and the US banks buy U.S. Treasury bonds can new US dollars be generated, which is why the United States can temporarily control inflation. However, the national debt in the hands of non -American banks will sooner or later expire, and the interest will be paid once a year (30 years of national debt). At this time, the Fed will inevitably create a new US dollar.