It's a damn shame that not only does my Monetary Economics book (for Junior/Senior college students) not connect the dots about the giant counterfeiter called the Fed (but instead feigns justification for it), but it and all other Monetary books I've looked at about the Fed simply leaves out one or more features of the Fed-Treasury connection altogether.
The following connection is the one that I've never known about, that NO macro nor monetary book has ever disclosed, and in fact I just learned about it today:
The Fed can roll over the U.S. Treasury's bonds that come to maturity. The Fed can give rain checks on debt due to it by Uncle Sam.
"You know, I'll just pay for my 3.8 trillion dollar budget... ummm... never!"
Between artificially low interest rates the Treasury already gets to borrow at (because the Fed remits its 'profits' on interest back to the Treasury) and the fact that the Fed's demand for Treasury securities pushes up the bond price and thus lowers their yields, PLUS the Treasury never having to pay a debt in full, there is no surprise as to why the govamint might want to take over, in full, the health industry. We now realize that taxation is not primarily a means to raise revenue but is instead for exacting retribution and to better mold the social landscape into their ideal community.
The government controls its own wallet, plus the prices people pay for its 'services.' It also controls most educational institutions and the methods taught therein, thus it has considerable sway over intellectual opinion. If it can get its hands around the health industry AND legislate over a natural byproduct of our metabolism (CO2), the private sector will be completely enslaved by the public apparatus. You can't vote your way out of a situation like that.
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