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Forget Treasuries; Focus on the Fiat Fed

Take out your wallets and pull out a "dollar".

Does it say U S currency? No.

It says Federal Reserve note. Your dollars in your wallet and your digital dollars in your bank account are issued by a privately owned bank, which is assessing the government interest on that note, along with the original cost of producing it.

The Federal Reserve is not the United States Treasury. The U S Treasury is now just some offices inside of Goldman Sachs, where they moved after acknowledging the Treasury was bankrupt and they had to close down the Treasury offices to save on heating bills, I guess.

By regulation, all money taken in by the Treasury has to be turned over to the Fed within 48 hours.

So all of you should be looking at how sound the Federal Reserve is and the fiat debt credit notes it issues.

But wait. The Fed won't let you look at its books. You cannot audit the private bank that issued you your fiat dollars.

Of course the entire sum of money is a little more complicated than that. I could explain its complexities but neither Granspan nor Bernanke could before Congress so I will just keep it to myself.

And keep an eye on gold and silver while you dither about U S "trasuries". backed by the Federal Reserve.

Disclosure: None