Need Help Understanding the Fed

I have just read information about the Fed about which I would appreciate help verifying. It's on the website .investopedia.com:

. . . The Federal Reserve is a nonprofit company. After their expenses are paid, any remaining profits are paid to the Department of the Treasury. The Department of the Treasury then uses that money to fund government spending. It's a relationship that produces a considerable amount of money. The Federal Reserve System contributed in excess of $29 billion to the Treasury in 2006, according to the Federal Reserve Board (FRB). So, the Federal Reserve not only helps to make and implement policies, it also serves as the government's bank and generates a portion of the revenue used to fund the country's activities.

The Fed is a non-profit company? The Fed returns money to the Treasury? I guess the statement "after their expenses are paid" could mean their expenses are whatever they say they are. But, this is giving a specific figure of $29 billion paid to the Treasury in 2006.

Who has insights on this?

reply to post by Mary Rose

I'm not an expert on the Fed but it always seemed to me as just a sneaky way to create a national bank while avoiding the Constitutional problems that killed the first two Banks of the United States. Call it a private bank and then no worries. For over a century before 1913 the government had been looking for a way it could have infinite money, and finally achieved it in 1913.

It's so intimately tied to the government in so many ways that the notion of it being "private" is nonsense, yet I sometimes see people pushing that angle now and again.

reply to post by NewlyAwakened


Thanks for your response. Now I'm more mystified!! I had not been thinking of the Fed in terms of the government looking for a cash cow!

reply to post by Mary Rose

Investopedia is full of it.
The Federal Reserve and the U.S. Treasury conspire to steal the wealth of U.S. citizens. They print money, backed by nothing, and loan it to the U.S. government at interest. These private banks that make up the federal reserve have a monopoly on printing paper money, and therefore a monopoly on the interest generated.
If you look closely you will see certain individuals move between the U.S. Treasury, Goldman Sachs and other "investment" banks, Wall Street brokerages and the federal reserve/banks. This is to insure that the few can continue to rob the many, while using groups like Investopedia to keep people uninformed.
If you read on Investopedia page you referenced, you will see what the mission of the federal reserve is "supposed" to be. It appears they have failed miserably, doesn't it? Funny how you can fail miserably, yet continue to make hundreds of millions of dollars annually while the U.S. economy tanks dragging our children into poverty.

Who owns the fed.
www.save-a-patriot.org...

A good site to get a little education without the B.S.
www.zerohedge.com...

reply to post by Stewie


What about that claim about $29 billion paid to the Treasury in 2006?

reply to post by Mary Rose

Any claim that is made by thieves and liars count for how much?

Remember, the Fed has resisted all efforts at a genuine audit, so they could be doing virtually anything they want. In fact, they are putting Americans in debt for money sent to foreign banks so they won't default.
Pretty huh?

Originally posted by Mary Rose
reply to post by Stewie

 

What about that claim about $29 billion paid to the Treasury in 2006?

it's bogus, you are seeing the cooked books version.

The federal government keeps two sets of books.

The set the government promotes to the public has a healthier bottom line: a $318 billion deficit in 2005.

The set the government doesn't talk about is the audited financial statement produced by the government's accountants following standard accounting rules. It reports a more ominous financial picture: a $760 billion deficit for 2005. If Social Security and Medicare were included — as the board that sets accounting rules is considering — the federal deficit would have been $3.5 trillion.

Congress has written its own accounting rules — which would be illegal for a corporation to use because they ignore important costs such as the growing expense of retirement benefits for civil servants and military personnel.

www.usatoday.com...

reply to post by boondock-saint


Your quote relates to Congress and the budget deficit. What does it have to do with whether or not the Fed returns excess interest "after expenses" to the Treasury?

reply to post by Mary Rose

Check out this link...

www.babylontoday.com...

and move down to the part that covers the interest on the debt, running around half a trillion annually, and plug in your number that is supposedly "returned" to us. LOL.

reply to post by Stewie


Regardless of the staggering numbers, I'm curious to know whether there is any truth to the claim.

reply to post by Mary Rose

Maybe you should ask Timmy!

Second line.

reply to post by Stewie


Yeah right!!

I'd venture to guess that $29 billion figure...is not 'excess interest profits' as suggested...

why do i say that? well because the FED operates as an opaque enterprise and just as boondock saint says its a ruse/ cooked books... but the FED did pay something like $29 billion into the USTreasury


............ the $29B ammount was probably the ammount levied on the Real-estate the FED came
in control of during the current credit/debt crisis...
they hold Trillion$ of Property ...and with a continual 4% interest return on the money they 'allow' the US Treasury to print (on what ammount?)-- something like $12 Trillion, is the best guess

the Fed can kick-back a paltry $29Bn to the USA govt as a good-will jesture
and as a 'point-of-Law' ...so that they actually - totally - OWN the 1/4 of all mortgaged properties in the USA mainland...

just wait until this managed/ engineered stock market & PM market bubble get at it's Apex...


the FED will be selling all those residential & commercial properties they kept paying taxes on
and therefore became the default owners -
( the 'stacked' courts setting aside the faulty 'mortgage backed securities' [MBS] as claims on the properties)...
the FED selling into the 'new rich' ...with plenty of ledger wealth..but only because the FED itself engineered their wealth so they could pick-it-from-their-pockets


hey its the same old-same-old , just new people to skin


(its not hard to follow if your a schizo)

I don't know about the $29 billion but in 2008 when the Fed and Treasury threatened martial law and tanks in the streets, the Federal Reserve had over $800 billion dollars in it's accounts. Even the head of the house financial services committee had no idea how much money was in the Federal Reserve until then.

Here's another website making the same claim. It's Political Research Associates:

. . . While the Fed does collect interest on government bonds, the Treasury would have had to make such payment even if they [sic] Fed did not hold any bonds. Moreover, the Fed rebates a significant share of its net income to the Treasury each year, revenues the government would not have at all if the Fed owned no government bonds.

reply to post by Mary Rose


Here ya go, the FED is my pet peeve, and I am happy to share. First off, look for it in the blue government phone pages. It isn't there. Here are some good links for researching the Federal Reserve Bank, and the Cartel it controls today.
Thomas Jefferson once said:

"I believe that banking institutions are more dangerous to our liberties than standing armies . . . If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] . . . will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered . . . The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." -- Thomas Jefferson -- The Debate Over The Recharter Of The Bank Bill, (1809)
www.barefootsworld.net...

Subject:The Bankruptcy of The United States United States Congressional Record

Secrets of the Federal Reserve

Billions for the Bankers, Debt for the People The Real Story of the Money-Control Over America

The Money Changers: The Federal Reserve, Robbery by Deceit

Quotes On Banking and the Federal Reserve System FRAUD

Abolish the Federal Reserve! - by Rep. Ron Paul, MD

that statement about the fed giving the treasury department 29 billion makes absolute no sense. The fed prints the money, there would be no dollars if there weren't for the fed (especially since any dollar dated before 1913 has been removed from circulation). So that's like me saying I print up 29 billion notes and give it to the government. Yes, it's that simple.

reply to post by Mary Rose


Yes Sir the other poster hit the nail on the head


If (as your being BS'ed) the Federal; Reserve is a 'non=profit'
then why does it have a 'Balance Sheet'--- at all ?


like stated earlier the pre TARP era balance sheet was reported to be $800-900 billion dollars

since the FED opened all those 'facilities' swaps and other 'windows' their unauthorized
balance sheet is something to the effect of $1.8 Trillion ... In--The-Red
but that's only the 2009 estimates------------------------2010 is estimated at another several -Trillion !


all told, the opaque FED has amassed over $12 Trillion in bail-out money debits
to keep the bankster system afloat so that perhaps the main-street
economy may resurrect itself !

reply to post by Mary Rose



I wrote an article about that a while back. You can read about The United Slaves of America HERE. It explains the Fed Reserve, Treasury, IRS, the corporatization of the foreign district of DC, etc...

Originally posted by filosophia
So that's like me saying I print up 29 billion notes and give it to the government. Yes, it's that simple.

So far your answer is making the most sense to me. Maybe that's it. They do this but so what? They just create the money.

Maybe this is a provision but it was created just to obfuscate the overall picture of how the system works.