The Creature from Jekyll Island (2)

Benefit to the government side of this partnership

Plenty of money is loaned to the government but never enough. Congress needs more money that that. They go to the Federal Reserve building. They get inside the building and the officer of the Fed is opening his desk drawer. He pulls out his checkbook and he writes a check to the US Treasury for one billion dollars or whatever the amount is that they need.

We need to stop here for a minute and ask a question. Where did they get a billion dollars to give to the Treasury? Who put that money into the account at the FRS? The amazing answer is there is no money in the account at the FRS. In fact, there isn't even an account, there is only a checkbook. That's all. That billion dollars springs into being at precisely the instant the officer signs that check and that is called "monetizing the debt," that's the phrase they throw at you. That means they just wrote a check, a big rubber check. If you and I were to do that we would go to jail but they can do it because Congress wants them to do it. In fact, this is the payoff, this is the benefit to the government side of this partnership, this is how the government gets its instant access to any amount of money at any time without having to go to the taxpayer directly and justify it or ask for it. Otherwise, they would have to go the the taxpayer and say we're going to raise your taxes another $3,000 this year and of course if they did that, they would be voted out of office real fast.