Federal Reserve Pays Treasury $75 Billion In Profit


It’s a truly sad reality that this headline sparks such a range of emotions in readers, from doubt to confusion… surprise to melancholy.

This information is no big secret. It’s not even hidden (maybe in plain sight). It’s just the typical operations of the Federal Reserve System as reported in its annual audit called the Comprehensive Annual Financial Report (CAFR).

For those actually interested in seeking the truth about this federal agency, here is the link to the Board of Governors CAFR for 2011, the latest audit of the Fed. In fact, its the 98th audit of the Fed. It explains how everything operates, its foreign investments and foreign currency swaps and schemes, its many separate limited liability corporate holdings like Maiden Lane, its dealings and bailouts with AIG, Bears Stearns, and JP Morgan, and of course its assets and liabilities balance sheet.

Link –> http://www.federalreserve.gov/publications/annual-report/default.htm

Within this 479 pages of dry and boring financial reporting is a full description of the Fed’s operations, including the basic financial happenings of each individual reserve bank. Yeah, I know, it doesn’t have the flair of a good “Secrets of the Temple” or “Creatures” type of novel, but its got all the actual facts and figures from TARP to SOMA. Why? Because this is what is required by federal law.

If you want to know about the Fed, read the CAFR.

If you want to know about your city, read the CAFR.

If you want to know about your county, state, district, or any other governmental agency or corporation, read the CAFR.

Here are a few highlights:

Board of Governors of the Federal Reserve System
Washington, D.C.
May 2012

To: The Speaker of the House of Representatives:

Pursuant to the requirements of section 10 of the Federal Reserve Act, I am pleased to submit the ninety-eighth annual report of the Board of Governors of the Federal Reserve System. This report covers operations of the Board during calendar year 2011.

Sincerely,

Ben Bernanke
Chairman

(Page 73)

On March 22, the Federal Reserve System released audited financial statements for 2010 for the combined Federal Reserve Banks, the 12 individual Reserve Banks, the limited liability companies that were created to respond to strains in financial markets, and the Board of Governors. The Reserve Banks reported comprehensive income of close to $82 billion for the year ending December 31, 2010, an increase of $28 billion from 2009.

(Page 384)

r. Interest on Federal Reserve Notes

The Board of Governors requires the Reserve Banks to transfer excess earnings to the Treasury as interest on Federal Reserve notes after providing for the costs of operations, payment of dividends, and reservation of an amount necessary to equate surplus with capital paid-in. This amount is reported as “Payments to Treasury as interest on Federal Reserve notes” in the Combined Statements of Income and Comprehensive Income. The amount due to the Treasury is reported as “Accrued interest on Federal Reserve notes” in the Combined Statements of Condition.

If earnings during the year are not sufficient to provide for the costs of operations, payment of dividends, and equating surplus and capital paid-in, payments to the Treasury are suspended. A deferred asset is recorded that represents the amount of net earnings a Reserve Bank will need to realize before remittances to the Treasury resume. This deferred asset is periodically reviewed for impairment.

(Page 144)

Income and Expenses

Table 4 summarizes the income, expenses, and distributions of net earnings of the Reserve Banks for 2011 and 2010. Income in 2011 was $85,241 million, compared with $79,301 million in 2010.

(Note: $85,241 million is $85.241 billion, and is written as $85,241,000,000 – the word million means to add six 0’s)

Distributions to the U.S. Treasury in the form of interest on Federal Reserve notes totaled $75,424 million (75.4 billion) in 2011. The distributions equal comprehensive income after the deduction of dividends paid and the amount necessary to equate the Reserve Banks’ surplus to paid-in capital.

Table 4. Income, Expenses, and Distribution of Net Earnings of the Federal Reserve Banks, 2011 and 2010

Distributions to U.S. Treasury (interest on Federal Reserve Notes):

$75,424,000,000 in 2011

$79,268,000,000 in 2010

(Page 325)

Table 9A. Statement of Condition of the Federal Reserve Banks, by Bank, December 31, 2011 and 2010

Interest on Federal Reserve notes due to U.S. Treasury (note 13): listed as total and by individual bank

Note 13 – Represents the estimated weekly remittances to U.S. Treasury as interest on Federal Reserve notes or, in those cases where the Reserve Bank’s net earnings are not sufficient to equate surplus to capital paid-in, the deferred asset for interest on Federal Reserve notes. The amounts on this line are calculated in accordance with Board of Governors policy, which requires the Federal Reserve Banks to remit residual earnings to the U.S. Treasury as interest on Federal Reserve notes after providing for the costs of operations, payment of dividends, and the amount necessary to equate surplus with capital paid-in.

Payments to U.S. Treasury (interest on Federal Reserve notes) $75,423,597,000

(Page 333)

Table 11. Income and expenses of the Federal Reserve Banks, 1914–2011

Distributions to the U.S. Treasury – Interest on Federal Reserve notes:

Total for all years (1914-2011): $842,337,007,000

Total income all years (1914-2011): $1,013,516,673,000

(Translation: over 80% of the Fed’s income is transferred right back to the U.S. Treasury.)

In addition…

$44,113,958,000 – Represents transfers made as a franchise tax from 1917 through 1932; transfers made under section 13b of the Federal Reserve Act from 1935 through 1947; and transfers made under section 7 of the Federal Reserve Act for 1996 and 1997.

(Page 365)

Federal Reserve Banks Combined Statements of Income and Comprehensive Income for the years ended December 31, 2011 and December 31, 2010

Distribution of comprehensive income:

Dividends paid to member banks: $1,577,000,000

Payments to Treasury as interest on Federal Reserve notes $75,424,000,000

Total distribution 2011 = $77,376,000,000

–=–

While it is true that national and state banks certainly get some great benefits by forcibly being members of the central government’s Federal Reserve, those benefits are nothing but the statutory ones granted to them as members. Obviously, the real profiteer here is the Treasury of the United States Federal Government, as these figures have shown us. The dividends paid to member banks are peanuts compared to the “interest” paid to the Treasury.

But still the fallacy persists that the Fed is not beholden to the U.S. government.

For those who still insist that the “bankers” somehow own the Federal Reserve, again, for God’s sake, please just read the Federal reserve Act and especially the CAFR:

p. Capital Paid-in

The Federal Reserve Act requires that each member bank subscribe to the capital stock of the Reserve Bank in an amount equal to 6 percent of the capital and surplus of the member bank. These shares are nonvoting, with a par value of $100, and may not be transferred or hypothecated. As a member bank’s capital and surplus changes, its holdings of Reserve Bank stock must be adjusted. Currently, only one-half of the subscription is paid in and the remainder is subject to call. A member bank is liable for Reserve Bank liabilities up to twice the par value of stock subscribed by it.

By law, each Reserve Bank is required to pay each member bank an annual dividend of 6 percent on the paid-in capital stock. This cumulative dividend is paid semiannually. To meet the Federal Reserve Act requirement that annual dividends be deducted from net earnings, dividends are presented as a distribution of comprehensive income in the Combined Statements of Income and Comprehensive Income.

This “non-voting” stock is not a choice, but a requirement to be a member and have the privilege of being in this organized crime syndicate of banks called the Federal Reserve System. It simply allows member banks to “print” money where none existed before.

The so-called “bail-outs”, for instance, weren’t in the form of a taxpayer loan or bond to these member banks, it was simply the act of the Federal Reserve allowing certain favored member banks the one-time privilege to actually print money without loaning it out. You don’t join the Federal Reserve system because you want to be a member, you join because you have no choice.

–=–

There are so many more questions that can be answered in this CAFR, but only if you really want to know the answers.

To most, the promoted fictions, fallacies, and fairy tails about the Fed are much easier to entertain than the 479 pages of shear agonizing and sleep-inducing truth that lay within these audited financial statements of the Federal Reserve. And for a lone researcher like myself, it pains me to watch the daily feeding frenzy of misinformation surrounding this investment and currency scam, where inaccuracy and downright fiction rule over any comprehension of what the Fed really is, what it does, and who its master is.

.

–Clint Richardson (realitybloger.wordpress.com)
–Tuesday, October 15th, 2013

Leave a comment

32 Comments

  1. ms bean

     /  October 15, 2013

    what you and Mr Burien have exposed is a huge piece of the puzzle. We are very grateful for your dedication.

    Reply
  2. mythoughtsalone2

     /  October 15, 2013

    This was a complete surprise to me,my understanding was they were a totally independent corporation from the Government. This is what has been said for years and years.
    80% of the Fed’s income goes back to the treasury! Makes you wonder about the Government even more, they just hemorrhage away money. Thanks for the facts and education trip. Wonder who started the big Lie and why?

    Reply
    • Technically, I suppose, that should read that 100% of the Fed’s profits go to the Treasury. It is between 80-90% only because the Fed must pay its salaries and expenses out of that amount. So this is more like the net profits going to the Fed’s owner.

      Government creates associations and corporations to do its dirty work, and so that you blame the franchise instead of the main corporation. A corporation is just limited liability.

      -Clint-

      Reply
  3. Thanks, Clint.
    Succinct and apropos, as ever.
    Keep up the GREAT work.

    Reply
  4. Many times I would like to share your blog, but don’t see any way to do it. Please make your blogs sharable!

    Reply
  5. Joseph LAmarca

     /  October 15, 2013

    The real reality is in the Coinage Act of 1792 and the U S Constitution . Give an att. athe ten Commandments and he will turn it into ten million lies . Give the public ten million ideas/pat. invention and the zionist will export them to china Export tenmillion invetions to china and the U S People willstarve before they awaken

    Date: Tue, 15 Oct 2013 08:50:00 +0000 To: josephlamarca@hotmail.com

    Reply
  6. Wow! It’s like a franchise arrangement? Not what a lot of people with ‘inside knowledge’ have been ‘educating’ us with for some time now. Have to have a closer look at this but thanks again.

    Reply
  7. THX1138

     /  October 15, 2013

    Looks “comprehensive” to me. 80% is paid back to the US treasury. Of course, what the true value of this company scrip is…, well it is not our wealth, now, is it? We are just the meat in the sauce.

    Congrats on your new show on RBN at 8:00pm Eastern Time weekdays!

    Reply
  8. Greetings breathren & good neighbors,

    First and foremostly, I wish to thank the individual for their research on the FRn so to speak. And if possible, to request any research along these lines of common sense considerations and research (as the aforementioned article demonstrates) into determining what the standard, weights and values these instrument (FRn’s) have, if any. And, what empirical support of any evinced provides such value.

    Secondly, other than wheresoever (????) full faith and credit can be ascertained, whom should these instruments (FRN’s) be returned to for redemption otherwise and how? And for how much for set-off and accord?

    Thirdly, these question are sought in earnest for justiciability. Any well-documented research provided, respectively to our query aforementioned, will be greatly appreciated. Please use our privy eMail (rahyah@gmail.com) to provide such research.

    We keep moving forward in our reasonable self-determination with all walks of life. And seek those watchers and laborers in the Vineyard of Reasonableness and Honor, that exhort others as reasonably as good neighbors similarly situated.

    Lastly, many centuries ago, when Charles II was peeved about certain conditions of regicide and looking for his subjects restitution, he agreed to accept their discharge of this (usurious) privy debt as public debt, assumed by his subjects & legislated into the realm, for taking up arms against their rightful sovereign.

    For those familiar with More & Beckett, history are replete with honorable Men of Good Will seeking to exhort upon the Watch-Tower of their day, what most fail to conceive and how their fate arose illicitly conceived in perpetuity’s. From this repeated moment, these selfsame subjects and continuing into oblivion, were and continue to be reduced to indenture throughout the empire via the cestui que vie trust legislated into law in 1666.

    All that remains of the day breathren, are those Men of Good Will uniting as Good Neighbors with All Walks of Life via variation by agreement. Our humble efforts are meak but are necessary, that they meek shall inherent honorably.

    Link: http://www.seagov.net/

    From this simple reasonable act & stead, do we brave any world, were usury and pettifoggery are recognized and practiced, for the pestulents they create!.

    Why? In the hopes of building and laying the foundations of future generations upon those same selfsame precious steppingstones left to us by our honorable ancestors of happy memory. In the hopes of doing the same for future generations to come, while hoping that our honor will add to this building stones, this future more firmly presently.

    What remains of any day from our humble passing, will remain as steadfast as the credit upon which our futures are built, while the true money of the sovereign is his credit founded upon their honor! The only true measure of any good neighbor similarly situated.

    Most graciously,….’In Honor We Trust.’

    P.S.: Please forgive any syntax or grammatical errors.

    Reply
  9. “…what the Fed really is, what it does, and who its master is…..”

    Well………..we will all look forward to these answers Clint. I hope you follow up on this statement.

    For me, I see one particular group of people benefiting the most of all that has happened since 2001. You could even go back to the Civil War. ONE particular group seems to be benefiting the most — from massive 3rd world immigration; to control of the media; to having their own damn country with basically no accountability to anyone with the backing of the US military. Most of what is happening in the world today is a result of one group of people.

    So I can see with my own two eyes a certain outcome. I may not have the genius as you Clint to read and understand documents such as you do…..

    But I wonder………………how do we even know that these so called documents are the absolute truth? Why should I believe the information detailed in a CAFR?

    This ONE group of people FABRICATED an entire History……why should I believe what the Federal Reserve says in a report? Who says a CAFR is fair and honest reporting? How would we really know?

    I will look forward to your answering that which you imply Clint — What is the FED; what does it do; and WHO is the master.

    Should be enlightening.

    Reply
    • You’ve just put forward what I refer to as the ultimate lie fallacy. By your unreasonable and un-researched rhetoric here, and without intending offense to you, I’d just like to point out to you that by your comment, nothing in life is to be believed.

      I cannot argue with this statement, for it is an un-winnable argument – much like the existence of “God” argument. Therefore, I wont be responding to your fallacious and impossible inquiry. Thank God for the Trivium, if indeed “He” exists!

      Now, without offense that causes a defense on my part, if you would like re-word your statement into a logical and reasonable question I’d be very happy to do my best to answer it.

      In the meantime, because with intent I do not make statements I cannot back up with years of hard research, please read my two blog entries on the subject of the Federal Reserve before you ask a question that can be answered within. Here’s the links:

      https://realitybloger.wordpress.com/2012/06/23/the-incontrovertible-conundrum-of-dr-ron-paul/

      https://realitybloger.wordpress.com/2012/09/01/todays-creatures-from-jekyll-island/

      Also please visit triviumeducation.com – and click on the Fallacies section.

      Thanks,

      -Clint-

      Reply
  10. Roy

     /  October 18, 2013

    Clint —

    You write, “…….Because this is what is required by federal law.”

    Oh…..thank God they are required by federal law to be honest, accurate and forthcoming. I guess I should just believe what they say about Hitler and the Holocaust; because after all, it is in the text books. By “law” they certainly can’t lie now can they.

    Can’t wait to hear who the man behind the curtain is. You said you will tell us “who their master” is.

    Will wait in earnest.

    Reply
    • You answer a charge of fallacy with yet more supportive fallacy? Really?

      I linked you two articles, don’t comment again unless you read those.

      -Clint-

      Reply
  11. If people had bothered to read the text of the act that organized the Federal Reserve sytem, this would not be surprise to the victims of conspiracy book-peddlers.

    They spent a century running around on Jekyll Island, looking for a boogieman under every banker……

    Reply
  12. Good stuff, always interesting points on this blog. Here is my issue- how can anyone declare victory on this argument when its pretty much fact the fed is printing or creating by fiat 85 billion a month for a long time now , at least a few years now. So the treasury makes money off the scam no doubt. But its about a months worth of QE these days if u are just looking at int payments year as you referenced. also the fed balance sheet is like a trillion now, hardly poor and in a terrible position to negotiate. Most people who are in wall st would tell you if the fed ever stops asset prices crash, lastly all the member bank profits need to be taken into consideration for affiliation into the cartel as well not just fed annual profit alone. There are immense cash flows thrown off by the assets the fed owns like treasuries – cough http://www.zerohedge.com/news/2013-10-18/fed-balance-sheet-increases-50-billion-one-week-100-billion-one-month-1-trillion-one

    Reply
    • Perhaps the point of this article was lost on you? The point is that there is no argument. There is no victory, only logic and reason based on financial data and law. The real “point” here is to stop separating the Fed from the Government and start blaming the Fed’s actions on the congress that created, regulates, and can alter or end it at any time. There is only one bad guy, and its the entire government. The point is to stop blaming a tool of government for governments actions. Like the Fed, all that funny money you are referring to can be blinked away with the swipe of a congressional pen. It was created by nothing and can be just as easily forgiven back into the nothing.

      Reply
      • Hello, no- I got your points…that it is the WHOLE government that arms the criminals. And in reality the FED has never been so transparent as they are today in 2013 so you are right there has been lots of sunshine on this and people divide into love/hate on the FED. The masters have come out slowly but surely. In the stock market, the mantra is “Don’t Fight the Fed”…they have brainwashed that into everyone and caused perpetual short squeezes in the market to elevate all asset prices. My hesitation was you were using this “big interest payment” data to slightly elevate the “Treasury”/official government agencies while diminishing slightly the Fed’s ability to buy all assets they want and print 85 billion a month in dollars to begin with( on top of everything else they can do like swaps, derivatives, off balance sheets, international dealings, etc)…and also diminishing the profit all the Public and Private Banks who are in the private sector and completely aligned with the FED. You are 100% correct…these bozos in the Treasury can cancel the fraudulent debt anytime they want! The fact they don’t and give us soap opera debt ceiling drama says it all…debt is power and control. So do you believe the Government/ie Treasury, President, won’t allow the debt jubilee…or the FED and Bankers won’t? Whoever won’t really allow this rational course of action at this point, which has been covered by many, is the real power IMO

        Reply
  13. jaleel shakir

     /  January 14, 2014

    The FED and the banks that they own are practicing what is called Capitalistic Communism.

    Reply
  14. Being Easily Tricked in the #1 attribute of a blogger who only like to read the lies the liar produces… Don’t think about the FACT that the FED prints money and loans it to the Gov. at interest and sometimes gives that interest back (less expenses!) but… IN THE MEANTIME PRINTS and LOANS MONEY TO ITSELF (the banks that own it) and then USES THAT MONEY TO RULE THE WORLD, without anyone even really knowing or understanding how and what it does with the money.. THE BOOKS YOU FEEL YOU tell you the truth about the FED are the PUBLIC BOOKS, and YOU WILL NEVER SEE THE REAL PRIVATE BOOKS… Now I know your prone to believing in FAIRY TALES, as you wrote this CRAPPY article… so I won’t bore you with the REALITY is the FED has NEVER BEEN TRUELY AUDITED or that fact that a partial AUDIT REVEALED TRILLIONS GIVEN to the BANKS during the BAILOUT… or the fact that the people who CONTROL the BANKS that OWN the federal reserve (who in COURT, demands that it is NOT PART of the GOVERNMENT) are some of the MOST CORRUPT PEOPLE IN THE WORLD…
    and WE ARE DROWNING IN DEBT, that CAN NEVER BE REPAID, and THEY KNOW THAT and love the control that GIVES THEM…. SO WAKE UP and Quit DEFENDING the
    BANKING MAFIA because you are TO LAZY or STUPID to try and get them TO TELL YOU THE TRUTH… GO to the FED, ask to see the OWNERSHIP STOCK LIST, or anything real, and you will be told the truth….YOU ARE A SLAVE and do NOT HAVE THE RIGHT to even AKS THAT QUESTION… but even then…you will be a fool and go back to your Fairy Tales and BS, as that is what all good slaves DO!

    Reply
    • So let me get this straight… your whole argument is based on a secret set of books that no one will ever be able to see nor has anyone actually ever seen, including yourself.

      Is that about right?

      Do I really need to respond here?

      Whose lost in a fairy tail?

      Either provide proof or scram, parrot.

      -Clint-

      Reply
  15. Sam

     /  May 9, 2014

    The Fed refuses a true audit and has threatened to crash the entire economy if it happens. The treasury has also refused an audit of Fort Knox. So really you’re the one who is has faith in what they say.

    Reply
    • A true audit? CAFR and AFR are the true audit, according to both the Fed Reserve Act and U.S. Code. Until that is changed, the “true audit” is there for you to read. But I’m willing to bet you haven’t made that effort before entering such nonsense. Heck, I bet you haven’t even read the Federal Reserve Act, have you?

      Reply
      • policycritic

         /  May 30, 2014

        Kudos to you, realitybloger, for doing the work. Here’s another doc you might be interested in.
        “Currency Function of the Federal Reserve Banks” By Marriner Eccles, first Fed Chairman, 1936. He was a Republican banker from Utah who went to DC after the Depression really hit. He was as popular as Mylie Cyrus for his speeches about what prosperity going off the gold standard meant for the common people, and FDR made him Fed chairman. He designed the WPA program, and got America back to work.
        http://fraser.stlouisfed.org/eccles/record.php?id=12969

        Another Fed Chairman, Beardsley Ruml: “Taxes for Revenue are Obsolete,” 1946
        http://home.hiwaay.net/~becraft/RUMLTAXES.html

        I don’t know that all of this is accurate, but it’s interesting. It’s a Congressional Report. I think he wrote this for congress in light of all the Fed stories running around in the 90s.
        “Money and the Federal Reserve System: Myth and Reality” by G. Thomas Woodward
        Specialist in Macroeconomics, Economics Division, July 31, 1996
        http://home.hiwaay.net/~becraft/FRS-myth.htm

        And Dr. Edward Flaherty takes on the 10 Myths about the Fed here at this archived site:
        http://www.publiceye.org/conspire/flaherty/Federal_Reserve.html

        Myth #1: The Federal Reserve Act of 1913 was crafted by Wall Street bankers and a few senators in a secret meeting.
        Myth #2: The Federal Reserve Act never actually passed Congress. The Senate voted on the bill without a quorum, so the Act is null and void.
        Myth# 3: The Federal Reserve Act and paper money are unconstitutional.
        Myth# 4: The Federal Reserve is a privately owned bank.
        Myth #5: The Federal Reserve is owned and controlled by foreigners.
        Myth #6: The Federal Reserve has never been audited.
        Myth #7: The Federal Reserve charges interest on the currency we use.
        Myth #8: If it were not for the Federal Reserve charging the government interest, the budget would be balanced and we would have no national debt.
        Myth #9: President Kennedy was assassinated because he tried to usurp the Federal Reserve’s power. Executive Order 11,110 proves it.
        Myth #10. The Legendary Tirade of Louis T. McFadden

        Reply
  16. OLDE REB

     /  June 23, 2014

    The audit included in the Annual Report to Congress by the BOG is conducted according to guidelines made by the BOG. There is NO MENTION of the $8.5 trillion handled thru the auction accounts of Treasury securities maintained exclusively by the FRBNY.

    Reb
    ******************************

    WHO BENEFITS FROM DEFICIT SPENDING ??

    The government incurs a trillion dollar increase in the National Debt annually to spend money it does not have so congress-critters can fund pork barrel projects back home and get reelected. Is theft from the public by inflation (to ignore the perpetual interest and a fraudulent debt that can never be paid off) for the “freebies” the end of the scam?? Not hardly.

    For congress to get the book entry money created on the government’s bank account, the Treasury Department must send a Treasury security to the FRBNY. Then the FR will honor checks on the account and the fiat money is added to the economic system (inflation occurs).

    But what happens to the security received by the FRBNY (as collateral for a loan) ?? Why, the bank auctions it off to the Primary Dealers and pretends it has been done by the Treasury Department. The funds go to the FRBNY.

    Approximately $7 trillion of the National Debt is rolled over by auctioned securities annually along with about one trillion dollars of new deficit spending securities. All of the funds are handled exclusively by the FRBNY [confirmed by government and FR websites]. The $7 trillion is credited to government accounts to pay off owners of redeemed securities (as collected by the Primary Dealers with payment to the PDs). There is no inflation or increase in the national debt incurred from the roll over.

    If the one trillion dollars from auctioned deficit spending securities was credited to the government, there would be no inflation or increase in the National Debt. Where does the money go??

    Like the prosecutor says: “Follow the money trail.” Seven trillion dollars goes to the PDs. One more trillion can be added to the cover and never be noticed. The auction accounts reciepts and disbursements have never been audited.

    But if the trillion dollars went to the Primary Dealers, would that be repaying the owners of the Fed (who own and control the BOG) for the “loan” they had given the government so the government could spend the money they did not have?

    That is the scam that was used by the Rothschild family in Europe centuries ago and was resurrected on Jekyll Island in 1912. There is no consideration put up for the pretended “loan.” If consideration (money) had been put up, there would not be an increase in the amount of money in circulation (inflation), The transfer of money to the PDs from the auctioned deficit spending securities is pure profit. It amounts to $4 billion every day—7/52.

    By law, all profit of the Fed belongs to the government. Hiding money that belongs to the government is a crime. The Federal Reserve embezzles one trillion dollars annually from the government. Since 1913, they have embezzled a total of $17 trillion.

    So who will prosecute the Fed ? For an answer to that question, you might ask your congress-critter.

    {It is noted the greenies in your pocket are identified as “Federal Reserve Notes.” They are a debt of the FR. If the FR BOG is a privately held corporation owned by select members of the Primary Dealers, it does not have to expose the corporate status to the SEC. Is the BOG is operating as a government contractor or as a government agency? The question has never been adjudicated, but the “day to day control” the SC has declared determines the status of an agency seems to be lacking. A contract with a private corporation does not involve sovereign immunity. A contract that is impossible to culminate, such as an inability to pay off the National Debt, is a matter of fraud. A contract involving fraud is void from its inception, }
    ******************************************
    For an extended analysis, see http://www.scribd.com/doc/48194264/rip-off-by-the-Federal-Reserve-revised

    For usage of the embezzled money, see http://www.scribd.com/doc/115919607/FUNDING-THE-NEW-WORLD-ORDER

    Reply
  17. Here is the problem, the US treasury should get 100 percent of the money or at least all the money except for operating expenses, since the Fed creates money for the banks so they can make profit. Only giving back 80 percent is a huge drag on the economy. That amounts to over 150 billion dollars. That is a lot of money. And we need to have a clearer picture of where operational expenses go. An audit should be done for that.

    Reply
  18. Late to the party. Thanks, too, for your work. You raise some good points. But the problem is that the FED is overseen by a board that is appointed by the president from nominees given by the FED itself. It’s not real oversight. And Congress is a corrupted body that will not end the FED.

    As to the profits handed over to the Treasury, they are only a small fraction of what the banking system rakes in through interest in double entry loans issued in home mortgages alone, which are in the trillions. QE is nothing but a transfer in the trillions again to the wealthiest from the poor and middle class. The whole, unified banking system is shrouded in mystery. That they lie is obvious. The FED’s official site still peddles fractional reserve banking and the money multiplier hogwash. No mention of double entry accounting, one method of grand theft of the ages.

    Can their audits be any more trusted than their other disinformation? Not at all. Usury is the means they have used to amass wealth in very few hands. What these few hands have accomplished is not hard to unveil. Congressmen, like presidents, are mere pawns or as you rightly point out about the Pauls, controlled opposition.

    Reply
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