Who pockets the interest from our National Debt?

Matt Drudge is running a headline about our National Debt surpassing $20 Trillion. The question no one ever asks is, “Who pockets the money from the interest the United States taxpayers pay on that debt?”
The U.S. federal government runs a deficit annually. To cover this the government issues bonds, which are bought by the Federal Reserve (a privately owned bank).

Since the Federal Reserve has the ability to print money (a duty that is supposed to rest with the Congress) it can buy any amount of U.S. Government bonds at virtually no cost.
After buying the bonds, the owner of Federal Reserve (a.k.a. “the Feds”) can either keep the bonds and collect the interest the U.S. taxpayer now owes them, or sell the bonds.

Since the IRS can’t audit the Federal Reserve, their profits can go anywhere the owners want to—and the profit is tax-free. I know it seems hard to believe but the Fed actually creates money out of thin air, exchanging it for the interest bearing bonds.

In order to pay the bonds’ interest, the government taxes the people of the United States of America.
The Federal Reserve is certainly one of the most secret financial entities in world history.

I have always believed (even years before he was President) that Donald Trump sees through this charade. Trump has never been a member of Davos, Bilderberg, Skull and Bones, Bohemian Grove, etc. He’s never been interested in global socio-economic engineering. However, perhaps now that he’s in office he realizes how dangerous it is to hold such views—especially regarding the Feds. Maybe that’s why he’s suddenly for lifting the lid on the debt ceiling? Clamping down on the Feds this early in his presidency may be a very foolish thing. After all, the last president to call out the Feds said this:
“The very word “secrecy” is repugnant in a free and open society; and we are as a people inherently and historically opposed to secret societies, to secret oaths and to secret proceedings. We decided long ago that the dangers of excessive and unwarranted concealment of pertinent facts far outweighed the dangers, which are cited to justify it.

“For we are opposed around the world by a monolithic and ruthless conspiracy that relies on covert means for expanding its sphere of influence — on infiltration instead of invasion, on subversion instead of elections, on intimidation instead of free choice, on guerrillas by night instead of armies by day.

“It is a system which has conscripted vast human and material resources into the building of a tightly knit, highly efficient machine that combines military, diplomatic, intelligence, economic, scientific and political operations. Its preparations are concealed, not published. Its mistakes are buried not headlined. Its dissenters are silenced, not praised. No expenditure is questioned, no rumor is printed, no secret is revealed.” –John F. Kennedy, April 27, 1961.

On June 4, 1963, Kennedy issued Executive Order 11110, with the goal to give the U.S. Government the power to issue an interest-free and debt-free currency backed by silver reserves, thus stifling the Federal Reserve of its sweetheart deal to loan money and charge the taxpayer interest.

Before some shout, “Conspiracy!,” I’ll stop here.

Comments

  1. The US has been using worthless, fiat currency for decades, backed today by little more than expectations. Even Kissinger’s petro dollar has become an international joke. Makes some wonder why nothing of this is taught in schools, or written/spoken of in the media and trade publications.

    Kudos for bringing up the subject!

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