In our privately-held, fractional reserve banking system all money is created as debt. When a Primary Dealer (or any other bank) purchases a UST, it merely creates the FRN's out of thin air (with a minor consideration for reserve requirements). A private corporation has created money for free, and purchased an interest-bearing security backed by the future productivity of US taxpayers.
This is in direct contravention of how the framers of our country anticipated. The US Treasury has and could again issue money and currency without debt and without interest. The entire process of auctioning Treasury securities is a creation of the Federal Reserve, and enriches both them and their private banking owners.
And while a 'large majority' of the Fed's profits may go to the Treasury - what is the breakdown? How much of the profits accrue to the owners of the Fed district banks (commercial banks) through their statutory dividends? You don't know because the Fed has NEVER been audited.
This is in direct contravention of how the framers of our country anticipated. The US Treasury has and could again issue money and currency without debt and without interest. The entire process of auctioning Treasury securities is a creation of the Federal Reserve, and enriches both them and their private banking owners.
And while a 'large majority' of the Fed's profits may go to the Treasury - what is the breakdown? How much of the profits accrue to the owners of the Fed district banks (commercial banks) through their statutory dividends? You don't know because the Fed has NEVER been audited.
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