Now, there is a big problem with this statement. You see, for every dollar that comes into the Fed, they can loan out $10. So every dollar in equals $10 of new credit available for new loans.

Mathematically speaking … new available credit = cash in times 10

So where did all that ever expanding supply of credit generating money go? I mean, if you have liquidity and a healthy cash flow, you automatically have ten times more available credit for new loans. So where did it go? There are several possibilities.

Either:

1). Somewhere between 50 and 99% of the incoming funds are being skimmed, and existing credit plus new credit demands can’t be serviced. Remember only 1 dollar of new credit is necessary to maintain existing demand. So 9 out of every 10 dollars coming in could be skimmed and still recycle existing credit. We are talking about skimming more money than most country’s Gross National Product. If it’s happening, this is zero security, gross neglect, and mismanagement. The Fed should be abolished.

Or:

2). Somewhere between 50 and 99% of the incoming funds are being diverted to hidden, “Off the Books”, or non liquid assets so that existing credit plus new credit demands can’t be serviced. Remember only 1 dollar of new credit is necessary to maintain existing demand. So 9 out of every 10 dollars coming in could be diverted and still recycle existing credit. If funds are being hidden, the crisis is being engineered. If the funds are going “off the books” the funds are being stolen. If the funds have been put into non liquid assets, then we are talking mismanagement at best … criminal activity including taxpayer fraud at worst. If any of these are true, the Fed needs to be abolished.

Or:

3). The Fed has experienced an unanticipated and unforeseen surge in demand for new credit that exceeds the total of all existing incoming payments times 10. This would mean a ten fold increase added to the existing credit. We are talking about an increase of most of the world’s credit multiplied by 10. People who could not forecast this kind of demand are incompetent beyond words. The Fed should be abolished.

Or:

4). Somewhere between 50 and 99% of all loans made were bad loans resulting in inadequate cash flow to service existing credit plus new credit demands. If only 10% of the loans are repaid that would still produce 100% of the total value of the original loans in new credit available. Again gross incompetence. Possible fraud buying worthless assets for a kickback. Abolish the fed.

Or:

5). Some combination of the above. All of the above points are critical control points in the life blood of the Fed. The flowing of dollars-in to new-credit-out is critical to the survival of the company. If even one of those points wasn’t monitored, it would be gross incompetence. Failing to monitor all 4 would be unthinkable. Abolish the Fed.

topsecretmoneylab.com/big-trouble-at-the-fed-insolvent-greed-or-cash-flow-problems.html

Or:

6). Pelosi lied about liquidity in which case the Fed is no longer a viable company. Abolish the Fed.

Or

7). Pelosi told the truth about liquidity but lied about the lack of credit. Then, Bush, Paulson, and the Fed entered into a conspiracy to lie to Congress and defraud the American Public. Prosecute them under Rico along with all Fed board members, seize all company and personal assets, abolish the Fed.