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I came to know recently that Bankers(Federal bank) will lend money to the Govt for their budget and Govt will pay interests time to time to the bank. Its also told many wars in which US took part including the current War on Terror (IRAQ) are all well planned and executed business strategies by the bankers. During war US Govt will loan more amount from the Federal Bank thereby end up paying more interest to the bank. So the Federal Bank get profited.

2007-12-13 14:17:32 · 1 answers · asked by Piscesian 3 in Politics & Government Law & Ethics

1 answers

You need to do go the FRB and Treasury sites. You will find explanations of how they interact. The FRB does own some debt, a very small portion. China's Banks are the big holders. They have no other means to produce income from deposits. Banks (private and publicly owned) make money from mortgage, auto, commercial, personal loans. The biggest income is VISA and M/C. These do not exist in large enough numbers to create income in China so they can pay interest to their own depositors.

Most countries central banks work similar to the US FRB.

The FRB does not create wars...many like to state that...they are loons and know "0" about economics.

2007-12-13 14:42:41 · answer #1 · answered by Stand-up philosopher. It's good to be the King 7 · 1 0

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