How the US Treasury Bond Buying Process Works
Executive Summary
- The Treasury bond purchasing process is shrowded in secrecy and is entirely unnecessary if the US created its own money with a public central bank.
Introduction
Like everything else with the Fed, the bond buying process is designed to enrich connected individuals at a massive cost to the taxpayers. This is explained in the following quotation.
“The prohibition against allowing the government to borrow from its own central bank was written into the Banking Act of 1935 at the behest of the Securities Dealers Historical Review on the website of the New York Federal Reserve quotes, Eccels is saying:
“I think the real reason for writing a prohibition into the Banking Act can be traced to certain government bond dealers, who quite naturally had their eyes on business that might be lost if direct purchasing were permitted.”
The government was required to sell bonds for Wall Street middlemen which the Fed could buy only through open market operations conducted by the Open Market Committee.” – Banking on the People
Congressman Wight Patman had this system explained to him and strenuously objected to it, as is covered in the following quotation. “”I’m opposed to the United States government which possesses the sovereign and an exclusive privilege of creating money paying private bankers for the use of its own money. These private bankers do not hire their own money to the government. They hire only the government’s money to the government and collect an interest charge annually, I insisted is absolutely wrong for this committee to permit this condition to continue and saddled the taxpayers of this nation with a burden of debt they will not be able to liquidate in 100 years or 200 years. Do you know that we are still carrying a million dollars worth of bonds that were issued during the war between the states and that we’ve paid $4 and interest for every $1 that was borrowed. We are still paying on them and still owe them Do you know that on the Panama Canal is convertible three’s, we have already paid more than $50 million in interest and that we will soon have paid $75 million in first and still owe the $50 million principle those bonds if you judge the future by the past. The people will be compelled to pay $2 dollars and $5 interest for every $1 they borrow.”” – Banking on the People
Source: Banking on the People
https://www.amazon.com/Banking-People-Democratizing-Money-Digital-ebook/dp/B07R3F6ZX7/