Did you know that the profits of the Federal Reserve System DO NOT go back to the US Treasury?

Question

The Federal Reserve System creates money with no gold or asset backing. It loans money to the government (on a perpetual basis) out of thin air and charges interest. Then for example the government uses that loan to pay a postal worker $1,000 in wages. The postal worker proceeds to deposit that money into a bank and guess what? Banks only have to keep 10% of cash reserves on hand and the other 90% can be loaned out on paper. That means the bank can loan out $9,000 at interest and that interest does NOT go back to the US Treasury because it is paid by average workers. The big banks are the ones who created the Federal Reserve System because they knew they could pump money (on paper) into the monetary system and charge interest on money that never existed in the first place. This pumping of money creates inflation because dollars are diluted with more dollars so that the dollars we earn through hard work loses purchasing power. Is anyone else appalled by this? What can be done?

Answer 1

- Re: Did you know that the profits of the Federal Reserve System DO NOT go back to the US Treasury?

Based on ...? The Federal Reserve income statement says it sent its profits to the Treasury. the Treasury revenue statement says it received it. The U.S. law says the Federal Reserve has to. What evidence do you have that it doesn't?


- Re: The Federal Reserve System creates money with no gold or asset backing.

By law, all Federal Reserve currency HAS TO be backed by some asset of value. This is called 'collateralization'.

The vast majority of currency is collateralized with T-Notes. However believe it or not $11B is backed by gold. Need proof? Take a look at the Federal Reserve balance sheet http://www.federalreserve.gov/Releases/h41/Current/


- Re: Is anyone else appalled (that banks can make loans from deposits)?

Not really. I like my bank accounts to draw interest.

However, if you're appalled, just put your money into a safety deposit box. You get no interest but it will address your concern that the bank could make a loan from your deposit.

Answer 2

Yes. The Federal Reserve System is owned by the member banks. The money in the Bank is from the deposits of the member banks. The Bank was created by an act of Congress. The employees salaries are paid from the money the Bank earns, not the US Treasury. The Bank is not supported by the Federal budget.

Answer 3

Going back to the main effective, i.e., Federal money being in accordance with gold via weight, is something that an excellent variety of previous time conservatives have been pushing for ever considering Richard Nixon acted to take it off the main effective. it relatively is what's utilising Ron Paul loopy, the theory Federal money "relatively has no actual cost" different than regardless of the Federal Reserve device deems it has. He no longer purely needs money to be tied into gold, he needs the Federal Reserve device abolished besides because of the fact he believes that the federal government could haven't any company nor potential to deal with or stabilize the US financial device. He desires to coach back the clock even greater advantageous back than 1971 while Nixon took money off gold, he desires to coach it back until now 1913 while the Federal Reserve device replaced into created to counteract panics interior the financial marketplace. what is going to ensue if he does that? we will bypass real back to the days while panics interior the financial marketplace replaced into the norm. motives why various individuals help Ron Paul and his concepts is by technique of the fact they haven't any expertise nor memory of those undesirable previous days. we are meant to examine from previous history, yet too a lot of people do no longer care with reference to the classes of previous history. Edit: The Federal Reserve device isn't a privately owned for-income entity, in spite of claims to the different, in spite of the incontrovertible fact that it does contain member banks. in addition to, Ron Paul isn't even advocating that the federal government do something in any respect approximately stabilizing the US financial device, he's not suggesting that "the federal government take over the interest of the 'privately owned' Federal Reserve device". he's offering no longer something in its place. he's utilising previous criticisms of the Federal Reserve device to easily get rid of it and something like it, and return to pre-1913 financial markets. "It encourages conflict" is between the main ridiculous arguments i've got ever heard against the Federal Reserve device. The Rothschilds and the Bavarian Illuminati could be no longer elementary at artwork advertising wars to fill their coffers.

Answer 4

Now I'm depressed. After reading your post, I want to buy some more Alcoa stock - but the market's closed until Tuesday morning because of Mem Day.

Answer 5

One of the prime tactics used by adversaries in wartime is the covert introduction of as much counterfeit currency as possible into circulation.


Is that kind of what you're talking about?

Answer 6

how can a postmaster that lost her job,get to be acting Maintenance manager, when she out of district,then sucks up to plant manager, and he believes all her lies? She has no experience in maintenance,and is causing undue stress for people who been in business since 1974?

Answer 7

Vote Ron Paul, he is the only candidate who is concerned about this situation. Check this link.