FinanceFag here.
Had some thoughts about the off-balance funding of black ops/non sanctioned ops. The Federal Reserve is the fiscal agent for the US Treasury. It's role is the adjustment of interest rates, money supply, and regulation of national banks and bank holding companies. As part of its day to day operations the Fed buys and sells securities in the open market for its own account–to drain or add reserves to the system. It also acts as an agent for certain foreign governments that buy US Treasurys. This all occurs through what are called 'primary dealers'–large brokerage firms that are licensed/entitled to deal with the Federal Reserve in US Treasurys (UST). That's the backdrop.
When the Fed buys securities it, just like any holder, is entitled to the interest accrued on those USTs. Coupon payments take place on coupon dates, which are every six months depending on the type of UST. After the crash of 2008 the Fed greatly expanded the amount of UST's it holds (that was the quantitative easing). The number reached 4 Trillion. Even at an average rate of 2.5% that it is 100 billion dollars in interest income. The Fed has minimal interest expense. In fact it actually makes even more money by lending out the securities it owns to the primary dealers who need to borrow them to cover short sales–but we're getting too technical.
So here's the point–the interest the Fed collects is supposed to be used to provide for its own budget with the balance remitted to the Dept of Treasury. We also know that the Fed has resisted congressional calls for an audit. Maybe–just maybe–not all the interest collected makes it way back to the Dept of the Treasury but ends up in bank accounts around the world for the clowns to use for black or non-sanctioned ops. The Fed has the capability of turning that into gold or other currencies very easily and it disappears without a trace.
Just sayin…