wildfirepower
09-07-2009, 08:00 AM
Should the United States ever adopt the same accounting standards for itself that it foists upon private enterprise, its financial reports would leave the majority of Americans in a state of shock. Americans would have tremendous difficulty recovering from the magnitude of misrepresentation that is going on now. Accounting isn't just a game either; there are material, legal, and ethical consequences when it's done wrong.
As an example of the accounting fictions used daily to dupe the public, consider the US dollars the United States claims to own in the Treasury "coffers." Now brace yourself, because this explanation is going to remind many readers of Alice tumbling down the rabbit hole. All of the interests the United States has in US dollars are cancelled out by liabilities on the Federal Reserve Balance Sheet, so that they have no effect of ownership. The United States owns no domestic money when its off-budget entities are incorporated into its balance sheet. The Treasury general fund is an accounting fantasy. So this begs the question; what happens to tax dollars?
The tax collectors do the accounting equivalent of putting all the collected tax money in a pit and setting it on fire. There is consequently never any taxpayer money in the US treasury coffers. More concretely speaking, when taxpayer checks are cleared by the IRS and the Fed, the tax money ceases to exist in any accounting or legal sense. The fiat money is sent back into the accounting vacuum from whence it came.[1]
How is such an absurd thing possible? Through the sham of fiat currency, of course! While the US dollar used to be a certain weight of metal,[2] or a credit instrument entitling its owner to a best effort attempt to produce that same metal on demand, it has been transformed over the years into a mere credit instrument, with no link to metal at all.
Why is it legitimate for me to consider the US dollar to be a credit instrument? If we set aside for the moment the issue of just exactly to what credit a dollar owner is entitled and the issue of what frauds have been committed in developing the US dollar, we can see that the US dollar is considered a credit instrument by the Fed itself. The Fed has listed a liability for all issued Fed notes on its balance sheet, in accordance with standard procedure in fractional reserve banking.
Why is it legitimate for me to consider the US dollar to be a credit instrument? Set aside for the moment the issue of just exactly to what credit a dollar owner is entitled and the issue of what frauds have been committed in developing the US dollar. We can see by looking at the Federal Reserve's balance sheet that the US dollar is considered a credit instrument by the Fed itself. The Fed has listed a liability for all issued Fed notes, in accordance with standard procedure in fractional reserve banking.
It has also issued similar liabilities in the form of reserve balances for private banks. A private bank can convert its credit balance with the Fed into paper currency upon request. Even if we were to accept the popular circular reasoning and consider dollars to merely entitle their owners to Fed notes and not to any interests in metal, a dollar is still a credit instrument guaranteed by the United States; and the claims I make in this article are still maintained.
Complete article-: http://www.marketoracle.co.uk/Article13242.html
As an example of the accounting fictions used daily to dupe the public, consider the US dollars the United States claims to own in the Treasury "coffers." Now brace yourself, because this explanation is going to remind many readers of Alice tumbling down the rabbit hole. All of the interests the United States has in US dollars are cancelled out by liabilities on the Federal Reserve Balance Sheet, so that they have no effect of ownership. The United States owns no domestic money when its off-budget entities are incorporated into its balance sheet. The Treasury general fund is an accounting fantasy. So this begs the question; what happens to tax dollars?
The tax collectors do the accounting equivalent of putting all the collected tax money in a pit and setting it on fire. There is consequently never any taxpayer money in the US treasury coffers. More concretely speaking, when taxpayer checks are cleared by the IRS and the Fed, the tax money ceases to exist in any accounting or legal sense. The fiat money is sent back into the accounting vacuum from whence it came.[1]
How is such an absurd thing possible? Through the sham of fiat currency, of course! While the US dollar used to be a certain weight of metal,[2] or a credit instrument entitling its owner to a best effort attempt to produce that same metal on demand, it has been transformed over the years into a mere credit instrument, with no link to metal at all.
Why is it legitimate for me to consider the US dollar to be a credit instrument? If we set aside for the moment the issue of just exactly to what credit a dollar owner is entitled and the issue of what frauds have been committed in developing the US dollar, we can see that the US dollar is considered a credit instrument by the Fed itself. The Fed has listed a liability for all issued Fed notes on its balance sheet, in accordance with standard procedure in fractional reserve banking.
Why is it legitimate for me to consider the US dollar to be a credit instrument? Set aside for the moment the issue of just exactly to what credit a dollar owner is entitled and the issue of what frauds have been committed in developing the US dollar. We can see by looking at the Federal Reserve's balance sheet that the US dollar is considered a credit instrument by the Fed itself. The Fed has listed a liability for all issued Fed notes, in accordance with standard procedure in fractional reserve banking.
It has also issued similar liabilities in the form of reserve balances for private banks. A private bank can convert its credit balance with the Fed into paper currency upon request. Even if we were to accept the popular circular reasoning and consider dollars to merely entitle their owners to Fed notes and not to any interests in metal, a dollar is still a credit instrument guaranteed by the United States; and the claims I make in this article are still maintained.
Complete article-: http://www.marketoracle.co.uk/Article13242.html