The Fed has been kiting checks since at least 1971.

Discussion in 'Economics' started by FireWalker, Oct 12, 2011.

  1. Some might argue 1913. Some might say 1933. A few might say 1924. However, the check kiting is a fact.

    So.. due to lack of consideration, the Treasury owes nothing to the Federal Reserve.

    A couple of points to make:
    - National debt goes to $0.
    - Personal income taxes were originally designed to pay for the T-bonds, so personal income taxes can easily be repealed.
    - The Treasury's fiduciary responsibility to savers of T-bonds can be made good through Congress.
    - Since consideration was conveyed when the Fed sold the T-bonds to investors and banks, the T-bond market can remain afloat. (It will likely unwind naturally.)


    Send that to all Congress, Treasury agents, Secret Service agents, FBI, etc. Just a quick email and let's get'er done.