Editor: I replaced 'End Borrower' With 'End Loaner'.
: Question & Answer
: (To simplify this complex subject)
: Assumption: The End Loaners fronts the Principal portion of a
: $100 Face Value (or larger amount) Treasury Security to the
: Primary Dealer ($60-$99) and at the end of the term (28
: days to 30 years), receives the Principal back plus the
: Interest ($1-$40) at the Annual Rate(1.0%-2.75%) from the
: US Government to equal the amount of the Treasuries' Face
: Value. (Really in a 28 day loan he collects less than the
: 1%, which is an annual rate)
: There are 3 Main Players in Auctions. (I am elimimating middle
: men Brokers or Direct Lenders. Though I believe they are
: criminally involved, because they are large entities)
: Primary Dealers
: End Loaners
: Simply stated, The Treasury Loan Function is composed of just
: two separate halfs or sub-processes. Think of the two
: portions as separate and not necessarily related.
: Top Half: Government-Primary Dealer (US Receives loan, Repays
: the Primary Dealer)
: Bottom Half: Primary Dealer-End Loaner (Primary Dealer
: Resells to End Borrower, who provides the Prime Dealer
: money for the Security. End Borrower is eventually paid
: back plus interest through the Primary Dealer)
: Q. 'I thought the Treasury Holders (Loaners) were paid back.
: A. Yes, by the Primary Dealers, not the Legal Borrower (US
: Government) who only pays Interest yearly (see below). We
: haven't seen the scam, because the bottom half seems to
: function properly to the End Loaners, Busineses and the
: Individual Public. The Top Half is shielded from Public
: view. It is composed of only the Crooked Banks and the
: Crooked Government.
: I see some possible scenarios that are corrupted.
: 1. Primary Dealers front their own money to the US Government
: after the Auction
: Impossible. The Primary Dealers would eventually go broke,
: depleting their own funds (which aren't repaid by the US
: 2. Primary Dealers pass on the Monies received from their End
: Loaners to the US Government to pay for the treasuries.
: Yes, but Primary Dealers are still 'on the hook' to pay the
: End Loaners Principal back to the End Loaner
: 3. Primary Dealers keep the End Loaner Principal and refund
: those monies back to the End Loaner at the end of the
: lending period.
: This is a scheme. The End Borrower doesn't know where his
: payment is coming from so they assume the Principal +
: Interest money comes from the US Government But the Primary
: Dealer must find some other way to purchase the securities
: from the US Government, other than the End Loaner money.
: Q. 'What is wrong if they 'print money' using this scheme?'
: A Sweetheart Loan? Sounds good from the US Government's
: perspective, not so good from the populace who are falsely
: billed Debt, that is really a gift from the Banks.
: Q. 'Is there Contract Fraud'
: A. Yes. The Treasury Auction documents represent a contract.
: the terms are not fulfilled by the US Government
: Sample contract.
: Search for the terms (Tendered, Accepted)
: Elements of a Contract
: 1) Offer
: 2) Acceptance
: 3) Consideration
: 4) Mutuality
: Final Comments
: Tthe Entire US Debt should be wiped out from the US Accounts
: as fraudulent. Congress is 'Chicken Little', crying 'The
: Sky is Falling'. They are crying over Fraudulent huge debts
: not Legal huge debts. Congress is participating in an
: ongoing illegal charade.
: Put this in your next Tax Bill, Congress.
: If the US is in fact hiding counterfeiting, why not bring back
: the Printing Press as legal, and wipe out all taxes for
: individuals and corporations?
: More Info: Here is a list of the Primary Dealer (US Criminal
: Here is the 2016 GAO (Governmnet Accounting Office) Audit,
: which shows weaknesses which could hide the entire scheme.
: Past Posts