HOW THE FED MAKES ITS MONEY

One might ask is it reasonable to use fascism and the Federal Reserve System in the same sentence. Before addressing whether the Federal Reserve System has fascist tendencies or not; we should address how money is created. For example: Congress asks for more money while cutting taxes and conducting 2 wars simultaneously plus bailing out dozens of various entities. This process of acquiring money goes to the US Treasury. The US Treasury which has only a few weeks of cash on hand at most will print Treasury Bills to be auctioned which are usually purchased by large banks from China and Japan. The lender (usually China or Japan) will purchase the bond at face value plus earn a specified interest rate. The money from the lender is sent to the Treasury in which is dispersed to various government agencies. The following example above is an example of money that already exists in the system. Now that large banks (lenders) do not have sufficient monies to purchase the Treasury Bills the Federal Reserve comes into play to off-set this imbalance. The FED will purchase a note from the bank (monetizing the debt) by simply transferring the total amount of the face value of the bond and take possession of the bond. A bond for a swap of money. Where does the FED acquire this money to purchase this debt? It is created out of thin air. This is proof to show “all dollars are loaned into existence”. A publication put out by the Federal Reserve (Boston) titled “Putting it Simply” States the following: “When you or I write a check there must be sufficient funds in our account to cover the check but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check it is creating money”. By allowing the FED to print as much money as it pleases plus charging an interest rate to the government (taxpayers) is an enormous power. There are only two ways to create money the first one is the example above the other is known as fractionalized banking. A quick example of this is take a $1000 deposit and be able to loan it out over a period to equaling $10,000 keeping in mind the bank fulfills the 10% allocated reserve funds but the example doesn’t factor interest on those funds. This can quite simply be put as “all dollars are backed by debt” At the local banking level all new dollars from loans are created into existence. At the Federal Reserve level all new money is simply manufactured i.e. digitalized on a computer and traded for interest accruing bonds. Another way to look at it is each and every year enough new money must be loaned into existence to cover the interest payments on all the past outstanding debt. It’s an exponential system by its very nature. There will always be more debt than dollars available to pay off the debt. Anyone who says we need to work to pay off the debt doesn’t know what they are talking about. By its very design you can’t pay off the debt. As I stated already by its very nature it’s designed to be an exponential function. Perpetual growth is a requirement of modern banking. Without the creation of new money each year the interest payments to the FED would not be able to be fulfilled and defaults would quickly ripple through the system.
It's beyond my understanding why the treasury doesn't issue the money directly without being forced to pay interest to a cartel of private banks that are being deliberately hidden by the Fed. A group of private people, abhorrent leeches get colossal amounts of moneyfor nothing. If you don’t believe me what I am stating regarding the Federal Reserve System by its very nature is designed to remove wealth from the citizens of the country I will be more than happy to provide you with the documentation of what I stated above. Here are some questions that are rarely asked by any government official: Why hasn’t since the Federal Reserve’s inception had an audit? Why is it that they can give trillion dollar loans with no accountability and we pay the interest on those loans? Please see video below:
[link to www.youtube.com]

Here’s a famous quote about the largest tax we have. The monitery policy we have today is what cause the latter (inflation).

"But who can say how much is endurable, or in what direction men will
seek at last to escape from their misfortunes?"
"Lenin is said to have declared that the best way to destroy the Capitalist
System was to debauch the currency. By a continuing process of inflation,
governments can confiscate, secretly and unobserved, an important part of
the wealth of their citizens. By this method they not only confiscate, but
they confiscate arbitrarily; and, while the process impoverishes many, it
actually enriches some. . . . As the inflation proceeds and the real value of
the currency fluctuates wildly from month to month, all permanent
relations between debtors and creditors, which form the ultimate
foundation of capitalism, become so utterly disordered as to be almost
meaningless; and the process of wealth-getting degenerates into a gamble
and a lottery. "Lenin was certainly right. There is no subtler, no surer means of
overturning the existing basis of society than to debauch the currency.
The process engages all the hidden forces of economic law on the side of
destruction, and does it in a manner which not one man in a million is
able to diagnose."

John Maynard Keynes, The Economic Consequences of the Peace (p. 235-6): 1920