The Federal Reserve was originally designed...

Editor's note: ...in 1913 as an independent, decentralized banking system — with regional branches responding to local capital flows, acting as a "lender of last resort" by buying corporate paper rather than government debt. Over time, however, political pressure transformed the Fed into a centralized tool for financing government debt: after World War I the Fed was forced to buy government bonds, and under the New Deal era its regional independence was dismantled in favor of centralized control. As a result, what was once a stable, self‑adjusting monetary system became a debt‑driven mechanism that inflates money supply perpetually — trapping the economy in a cycle of rising obligations and now fueling a looming "sovereign‑debt crisis." The massive welfare fraud uncovered in Sweden, where over €325 million (roughly US$378 million) was siphoned to gang networks, highlights how poorly monitored government programs can be exploited. This mirrors critiques of debt-driven monetary policy: just as central banks' purchasing of government debt can distort financial incentives and create systemic vulnerabilities, financing large social programs without strict oversight can enable fraud, misallocation, and long-term fiscal strain — showing that both debt-heavy policy and weak administration only amplifies structural risks.

________  

Sweden: Report finds over €325 million in fraudulent welfare benefits has been paid to gang criminals, providing a safety net for illicit networks

The government-backed report finds law-abiding Swedish taxpayers are inadvertently subsidizing criminal gangs through the benefit system

November 28, 2025 | By Thomas Brooke

A Swedish government review has found that thousands of people linked to gangs in Sweden have been drawing income from the country's benefits system for years, creating what authorities describe as a reliable, legal-looking revenue stream for criminal networks.

According to findings prepared under the state's organized crime framework, about 4,000 individuals known to police for gang affiliation have been receiving sickness benefits, sick pay, or job-seeker support. Combined payments across the group are estimated at 3.6 billion kronor (€327.5 million) over time, enough to provide what officials call a "white" income even when illicit earnings fluctuate.

It effectively means that law-abiding Swedish taxpayers are inadvertently subsidizing criminal gangs through the benefit system, providing them with a safety net income that enables them to continue operating.

Nils Öberg, head of the Social Insurance Agency, said the material reinforces the pattern authorities have been tracking. Speaking to TV4, he said the welfare system has become part of the business model: an official income on paper, and criminal income off it.

Samnytt notes that the report shows a marked overrepresentation of people with a migration background in the cohort examined. This applies to both those born abroad and those born in Sweden to two foreign-born parents.

Investigators highlight the contradiction between benefits requiring reduced work ability and the documented activity of some recipients. Case studies in the report refer to individuals formally certified as unfit for work while running gangs, traveling abroad, or coordinating violent offenses. One man listed on medical grounds after an accident was recorded visiting gyms and participating in gang operations. Another, diagnosed with limited work ability, is reported to have led a large criminal network while accumulating more than 30 convictions.

Maintenance support is also cited as a hidden revenue channel. Since many gang figures report little or no legal income, the state covers child maintenance on their behalf. In 2024, more than 3,600 such individuals were classified as unable to pay, resulting in payouts of around 118 million kronor (€10.7 million).

Please go to ReMix to continue reading.

________

Editor's note: China has gradually reduced its holdings of U.S. Treasury securities, bringing them to the lowest level since 2009, as part of a strategy to diversify foreign‑exchange reserves and manage geopolitical and financial risk. While this is often described as "dumping" debt, it reflects measured, strategic divestment rather than abrupt liquidation. The trend underscores the vulnerability of U.S. government debt: a large portion is held by foreign creditors, and shifts in their buying or selling behavior can influence interest rates, fiscal stability, and the U.S. dollar's value. In effect, China's reduced appetite for Treasuries highlights systemic risks in relying heavily on debt-financed government spending.

China cuts its holdings of US Treasury bonds to $757 billion in Aprr-25 down $8.2 billion from Mar-25

China pares down US Treasury holdings