Government money flowing into private banks.

Government money flowing into private banks

by tonytran2015 (Melbourne, Australia).

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(Blog No.80).
#money, #private bank, #Federal Reserve Banks, #underwriting fee, #bond, #quantitative easing,

Government money flowing into private banks.

American people keep paying to private bankers through (private) Federal Reserve Bank and various schemes.

1. USA fiat money.


Figure: Fiat money relies only on the taxation power of its issuing government for its backing.

From the above simple design for fiat money, International Private Bankers have managed to hook onto it their system living off the flow of fiat money.

2. Current flow of US money.

Fogure: Private banks are taking money off the government. Solid arrows represent current flows, hollow arrows future flows. Three dark green boxes on the right represent FRB.

Private banks “earn” their money from the government by:

1, “Underwriting” the issuing of new US money !

2. “Earning interest” for leaving their fractional deposits at (private) Federal Reserve Bank.

3. Influencing Government’s policies on Government Bonds.

4. Having free money from Quantitative Easing.


1. The government of USA is a money sovereign. It can print as much fiat money as it likes (and bear the consequences). Its fiat money has value to American people because they have to use it to pay taxes to their federal and states governments.

2. The deposits by the contributing constituent, private banks of the Federal Reserve Bank are part of their own effort to make themselves appear more liquid. They cannot demand any interest from the government on their deposits, just like airlines cannot demand government compensation on the costs of carrying their statutory reserve fuel on each flight. It is currently (for 2016) costing $40 per year per person for the US to keep using the private Federal Reserve Bank.

3. It is nice when you are the buyers of Bonds and you can influence the seller (government) !

4. Early redeeming of bonds still at face value is having free money ( [11]).

3. Chilling story of United States Notes.

Presidents Abraham Lincoln, Thomas Jefferson and John F.Kennedy had seen the unfairness of private bankers charging interests to the country and had tried to unshackle the burden on the country. Lincoln and Kennedy had been assassinated while Jefferson survived the assassination attempt.

A chilling history of private bankers gripping the US government system is given by reference [9]:

“Central bank usury control caused the US Constitution… to get their First Bank Of The United States in 1791. … When their 20-year charter was up in 1811, the Jeffersonian Democrats prevented its charter from being renewed. So the Rothschild bankers summoned their mercenaries (the British army and navy) to teach us a lesson, the War of 1812. … they got their Second Bank Of The U.S., again with a 20-year charter. When Andrew Jackson was elected in 1828, the bankers tried everything to stop him; they created the 1833 recession; had him censured in 1834; and a failed (both guns misfired) assassination attempt on Jan. 30, 1835… Jackson killed the bank in 1836, … During the Am. Civil War, Abraham Lincoln created Greenbacks instead of the 24% to 36% usury the Wall Street bankers wanted to charge, and he was assassinated on Good Friday 1865. … 1913 the Rothschild bank got their …. Federal Reserve Bank. The Federal Reserve Act of 1913 originally had a 20-year charter. But … 1927, the McFadden Pepper Act was signed into law. It made the F.R.’s power over our monetary policy perpetual. . … 1963, President John F. Kennedy created United States Treasury Notes, known as Silver Certificates, with Executive Order 11110, and he was assassinated on Nov. 22, 1963.”

4. Conclusion.

Bankers are now even pushing for the use of cashless cards issued by them [10] !

American people should resist that and should further demand United States Notes (each with a red seal) issued directly by the Treasury just like those issued under Kennedy’s administration. Those notes had nothing to do with the FRB.

Using the dollar notes with red seals (such as Five dollar with Red Seal Notes in series 1953 A through C, see picture in reference Five-Dollar-Bill-Red-Seal-Series [6]) will save Americans $40 per head each year.


[1]. Your fiat money,

[2]. Your fiat money (Part 2),

[3]. The-thirty-families-made-plans-for-a-future-without-you,,, originally by horse237,

[4]. Stack Jones, The Banking Swindle-The History of Banking Fraud,,, accessed Jan 2nd, 2017.

[5]. Federal Reserve System, wikipedia,, accessed Jan 2nd, 2017.

[6]. Five Dollar Bill Red Seal Series 1953 US Currency, Natural Web Solutions Inc.(US),

[7]. Us issues, Central banks alchemists of finance part iii-reblogging,, 03 April 2017

[8]. Dale B. Halling, History of Central Banks in the United States,,, accessed 03 April 2017.


[10]. tonytran2015, ,
[11]. , Reuter ,, June 25, 2013.
Added after 2018April21st:






During the great recession, the Fed bought a vast quantity of debt (around $4 trillion) but paid interest to banks that keep their “excess reserves” at the Fed to keep this so-called “base money” from increasing the broader money supply. Normally through public deposits at banks, these purchases by the Federal Reserve would typically produce a substantial increase in the monetary supply.




Bankers earn more than interest margin on secured loans, posted on December 15 2016,


Bankers given outrageous incomes by their boards, posted on December 22 2016,



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