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Chapter 5: The Fed on Steroids

This shift away from the dollar may be the most
significant event of Trump’s economic era. With China
becoming more dependent on foreign oil, China and
Saudi Arabia have agreed to a partnership making deals
worth billions of dollars, such as building oil refineries
in Saudi Arabia. This cooperation, along with the fact
that China has massive gold reserves, ushers in a new
paradigm as the petro-yuan will replace the American
dollar as the world’s standard currency and diminish the
Saudi-America relationship.

THE FED CREATES MONEY
The U.S. Treasury cannot create new money. It
prints our currency and sells the bills to the Federal
Reserve at a discount. The Fed then loans it back to the
government at face value plus interest. Therefore, the
federal government is dependent upon private bankers
to lend it money. Because the Federal Reserve is the
federal government’s bank, the Fed can also create
virtual money by crediting the government’s bank
account by X number of dollars by simply pushing a
few keys on its computer.
The U.S. dollar is a fiat currency because the
treasury does not back it with gold or silver. The
Constitution contains two sections dealing with
monetary issues. Section 8 permits Congress to coin
money and to regulate its value and section 10 prohibits
states from printing money. The framers intended legal
tender to be under the control of the federal
government, not an independent central bank.

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