Federal Reserve Stealing Iraqi Oil Revenues

If true, it sounds like a convoluted mess that will never be solved, let alone gather any interest among the American populace. The average American doesnt understand how the free market works, do you expect any interest in something as complicated as this?

 

I guess we will never know where the money went.....

 

Lots of things wrong with the Fed but this is probably not one of them. Fed profits are transferred to the U.S. Treasury.

 

"Remember, the neocons told us the invasion of Iraq and the subsequent murder of over a million Iraqis was all about deposing the evil Saddam Hussein and gifting the Iraqi people with democracy. "


That tells you all you need to know about the validity of the source and their argument.

 

So perhaps you have an explanation as to the whereabouts of the money....... let's hear it.

 

We are $12 trillion in debt because Congress has spent more money than it takes in. Nothing mysterious about that. Note that the national debt has little to do with the trade balance. If the Chinese were not buying US treasury bonds and notes then the govt would be pushing War Bonds to . . . Republicans . . . like was done during the Big Wars.

Further, the trade balance doesn't hurt the "economy," it only hurts the working class. Offshoring jobs helps the rich class to get richer. There are two economies, one for workers and borrowers and one for the rich people and the lenders.

People who say "what if the Chinese demand to be repaid?" are not thinking clearly. First, the treasury notes held by the Chinese can only be redeemed on the date stated on the paperwork, just like T-bills that any American can buy. One might as well ask, "What if Americans cashed in all their savings bonds," same thing.

Second, the Treasury only cashes bonds and whatever with American money. The Chinese could have $20 trillion in U.S. currency. What can they do with it? Ultimately, it must be spent in the US or burned for fuel. Money doesn't burn very cleanly.

Third, if The Chinese trash the dollar they are trashing the cash and bonds they are holding. Who will then buy their trinkets?

 

Where did the 3 Trillion number come from? Out of the air?

It isn't mentioned in the article.