What is the money the federal Reserve earns being used for?

reply to post by Dance4Life


The notion that having a more comprehensive auditing process, one that includes ALL balance transactions (even the ones they ignore NOW), would be somehow destructive to America is delirious!

I'm suggesting, and several of our elected officials are suggesting, that actions of the Fed that go unchecked have the potential to be catastrophic to our nation!! I'm not claiming to be an all knowing Fed library; I'm saying we need a clear and 100% accurate picture of the Fed, not one that exempts data!

Before we have that data, of course it would be harmful to the nation to go in and start fluxing with interest rates and what-have-you! But right now we ALLOW the Fed to do these actions and we *do not have all the information!*

Now that's the right way to go about managing our nation's currency, isn't it?

Yes we do need an audit. The fed gets all the income tax of the taxpayers, in America and elsewhere, elsewhere another central bank probably pockets it.

Maybe that money is used for military spending, black projects like the B2 bomber, developing emerging markets, green energy, space exploration. Maybe it is simply money the banksters pocket for themselves, maybe it is a mix of both, which benefits the banksters the most nontheless. As long as there is no audit we dont know and if they are heavily opposed to any oversight, insight or simply telling us where it all went, then I am sure there is a good reason for them to feel that way.

Originally posted by RedBird
The Federal Reserve returns its profits to the U.S. Treasury Department. This year it was close to 60 Billion dollars.

How can people be unaware or ignorant of this?

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, (Attributed)
3rd president of US (1743 - 1826)

How Can You Be Ignorant Of This?

reply to post by igigi


I don't agree.

You have your opinion though. That is fine. The FED should not have to disclose all holdings to the public. An analogy would be like a professional poker player showing their hand to the table.

I also am far against any elected official participating in monetary policy. Also, the FR does not solely dictate all currency decisions.

reply to post by Dance4Life


Ty for agreeing to disagree I understand your position.

But, to keep in line with your analogy of poker: what if the Fed is BLUFFING in their "independent" audits; as many Congressmen imply.

Certainly if the possibility of fraud on the part of the Fed system exists.. there should be enough interest to 1) get a clearer picture of the Fed's *real, non-exempt filled balance sheets* and 2) allow for open discussion so our Representatives can deliberate on it with the opinions of their supporters in mind!

To me, that's where the disconnect happens: our elected officials don't listen to their constituents as well as they should. Yet, you can't really blame them because they might just simply ignorant of the Fed audit process and not see that there is a real *need* to reform that process.

reply to post by igigi


I rather not deal in hypothetical's. If they are "shading", it is for a reason. In addition, the general populace is "dumb", to put it politely. There is no reason for a higher authority to reason with a lower one.

That might seem to not make sense, but think about it at great length.

reply to post by Dance4Life


Again, I'm going to have to disagree with you on that one.

It's not that the populace is "dumb" it's that they are intentionally mislead by any number of sources, pick them, MSM/Stories of Santa when we're younger/POTUS, etc.. If the people were more connected with their elected officials a more open dialog can happen and we might just be in for some real "Hope" and "Change" (which right now is losing BIG to "Nothing" and "The Same" )

Originally posted by Dance4Life

 

There is no reason for a higher authority to reason with a lower one.

Now it's *that* kind of thinking that got [the] US into this situation! We elect officials for a reason: to do our bidding via proxy. When they don't do that, we vote them out (or we swallow some campaign rhetoric and grab for our ankles.. )

I understand where you're coming from: "they're already elected! that ends their responsiblies to you" or perhaps that the Fed is somehow one of these mystical "above the law" organizations that are... oh what are they called?

Oh yeah: Organized crime syndicate.

EDIT: More-over: Any "shady" dealings by the Fed, e.i. off-balance exempt from audit, transaction by the Fed is NOT a hypothetical!

It happens each and every year the Fed gets "audited" by and "independent auditor". Please, that independent auditor group has about as much independence to investigate as the CBO. If you remember back to Health Care the CBO vomited out whatever number (just keep it under a billion! which failed; the truth came out after it passed...) the Administration needed to cram through Health Care will still maintaining face with less than 50% of Americans even wanting the bill passed in the first place (according to polls days before the vote)!!

Link to another ATS thread which discusses and article much like this one:
CBO says health care repeal would deepen deficit.

Situation just gets more grim day after day, doesn't it?

No matter how much the world talks of trade in US dollars, people and nations STILL trust gold.

What the feds had done was to give humanity pieces of ever changing promissory papers in exchange for gold and resources.

Truth and realities are often hard to bear, and I seek none to face it if they have fears. Are you ready?

The true question the OP should ask is....what does the Fed/private bankers do or had done with all that gold and real resources???

Originally posted by RedBird
The Federal Reserve returns its profits to the U.S. Treasury Department. This year it was close to 60 Billion dollars.

How can people be unaware or ignorant of this?

Yeah and I bet you believe in the Easter bunny and Santa Clause too... Can I interest you in some prime land for sale in the Everglades of Florida?

The treasury has no money period. They "borrow" "funds" at interest from Federal reserve period. It is the biggest ponzi scheme in the history of the world. THERE IS NO MONEY its all book entries and debits and credits. Printed federal reserve notes are the petty cash of the system. The only thing returned to the treasury is more debt in the way of loans so they can continue to pay interest in the previous loans, operate all their mischief, wars, and mayhem. The fed needs to be GONE! It is the root of all our problems!

If you really want to begin to understand how the Federal Reserve Cartel operates read Ron Paul's book "End The Fed" and and G. Edward Griffins " The Creature From Jekyll Island"

How can people be unaware or ignorant indeed!!!

reply to post by SeekerofTruth101


The whole subject reminds me of The Network (1976):
EDIT: seems embedding is disabled on the majority of these scences (I've tried 5 off YT so far). Manual link:
www.youtube.com...

Arthur Jensen: [bellowing] You have meddled with the primal forces of nature, Mr. Beale, and I won't have it! Is that clear? You think you've merely stopped a business deal. That is not the case! The Arabs have taken billions of dollars out of this country, and now they must put it back! It is ebb and flow, tidal gravity! It is ecological balance! You are an old man who thinks in terms of nations and peoples. There are no nations. There are no peoples. There are no Russians. There are no Arabs. There are no third worlds. There is no West. There is only one holistic system of systems, one vast and immane, interwoven, interacting, multivariate, multinational dominion of dollars. Petro-dollars, electro-dollars, multi-dollars, reichmarks, rins, rubles, pounds, and shekels. It is the international system of currency which determines the totality of life on this planet. That is the natural order of things today. That is the atomic and subatomic and galactic structure of things today! And YOU have meddled with the primal forces of nature, and YOU... WILL... ATONE!

Arthur Jensen: [calmly] Am I getting through to you, Mr. Beale? You get up on your little twenty-one inch screen and howl about America and democracy. There is no America. There is no democracy. There is only IBM, and ITT, and AT&T, and DuPont, Dow, Union Carbide, and Exxon. Those *are* the nations of the world today. What do you think the Russians talk about in their councils of state, Karl Marx? They get out their linear programming charts, statistical decision theories, minimax solutions, and compute the price-cost probabilities of their transactions and investments, just like we do. We no longer live in a world of nations and ideologies, Mr. Beale. The world is a college of corporations, inexorably determined by the immutable bylaws of business. The world is a business, Mr. Beale. It has been since man crawled out of the slime. And our children will live, Mr. Beale, to see that... perfect world... in which there's no war or famine, oppression or brutality. One vast and ecumenical holding company, for whom all men will work to serve a common profit, in which all men will hold a share of stock. All necessities provided, all anxieties tranquilized, all boredom amused. And I have chosen you, Mr. Beale, to preach this evangel.

Howard Beale: Why me?
Arthur Jensen: Because you're on television, dummy. Sixty million people watch you every night of the week, Monday through Friday.
Howard Beale: I have seen the face of God.
Arthur Jensen: You just might be right, Mr. Beale.

Watch and learn...

G Edward Griffin - Creature From Jekyll Island A Second Look at the Federal Reserve

Google Video Link

For a larger screen:
video.google.com...#

reply to post by hawkiye


G. Edward Griffin! I've seen him on the MSM as a guest speaker, never really longer than 2 minutes. Nice to have this nicely laid out by him in a more sit-down documentary. Peter robbing Paul to pay Simon....

I've been meaning to buy Ron Paul's "End The Fed". Paperback's down to $8.51, now talk about truth at a bargain

At least Ron is in a better position to wage war on the Fed now..

reply to post by igigi


Well done, sir. That's as close as to the truth we are watching now, as current circumstances unfurls the tragedy of reality before our eyes. Only the real Arthur is no Supreme Being. Dig deeper and the facts will be even more astounding, and such facts unfortunately can only be accepted by individuals alone and not spoonfed.

reply to post by SeekerofTruth101


Presicely! That's very much how I see a large portion of the world structure as.

"What do you think the Russians talk about in their councils of state, Karl Marx? They get out their linear programming charts, statistical decision theories, minimax solutions, and compute the price-cost probabilities of their transactions and investments, just like we do."

Except it's the Fed in this case! And they've run a muck with our hard earned cash!

Lining their pockets and nothing else. It is the profit made from the privately held, owned and operated Federal Reserve Systems, Inc.

reply to post by Cassius666

What does the Fed do with all the money it receives?

The simple answer is the FED pays interest to the banks who have "shares" in the Federal Reserve. After paying that interest and paying for "operating costs" the Fed gives the rest to the US treasury. This is the candy-coating on the scam. The politicians can say look the US government get some of the money TOO. Yeah right, AFTER the looters take what they want FIRST!

How much of the national debt is owned by the Federal Reserve?
40.6%
By the banks outright? 4.2%
by Foreign and International interest? 22.7% SOURCE

The real scam is not the Federal Reserve loaning the US Government counterfeit money it creates on the spot and collecting taxpayer wealth as principle and interest on the "loan", although that is bad enough. It is all the rest of the counterfeit made with a key stroke money that is lend every minute of every business day. Think of it, every mortgage loan, every business loan, every student loan and every credit card loan is not the savings (wealth) from Joe Sixpack and Mary Schoolteacher reinvested in the US by the banks as we are lead to believe. Instead the loan money is fiat fairy dust money created on the spot!

We are TOLD part of the money is real savings and that is how Fractional Reserve Banking works, but in reality the "fraction" is not 60% or 40% or 10% it is actually ZERO! That is correct - the ENTIRE amount is created on the spot because US Banks are Operating Without Reserve Requirements!

From the beginning of 1964 ($54.238 billion) to the end of 2010 ($2016.205 billon) the bankers have CREATED $1961.967 billion dollars in fiat currency! That is the amount they increased the money supply This is the tip of the iceberg since the data does not give a true picture of the actual amount created.


So What are the bankers DOING with this HUGH river of unearned wealth? As G. Edward Griffin said:

...You are led to the question of where is this river flowing? ...They're not accumulating it at all. What are they spending it for? The answer may surprise you..... When a person has all the wealth that you could possibly want for the material pleasures of life, what is left? Power. They are using this river of wealth to acquire power over you and me and our children.

They are spending it to acquire control over the power centers of society. The power centers are those groups and institutions through which individuals live and act and rely on for their information. They are literally buying up the world but not the real estate and the hardware, they're buying control over the organizations, the groups and institutions that control people. In other words, to be specific, they are buying control over politicians, political parties, television networks, cable networks, newspapers, magazines, publishing houses, wire services, motion picture studios, universities, labor unions, church organizations, trade associations, tax-exempt foundations, multi-national corporations, boy scouts, girl scouts, you name it. Make your own list of organizations and you will find that this is where those people have been for many decades spending this river of wealth to acquire operational control particularly over those institutions and individuals, those organizations that represent opposition to themselves. That's a critical area for expenditure on their part... www.bigeye.com...

Is there any proof that Mr Griffin is correct? YES!

U.S. Congressional Record February 9, 1917: J.P. Morgan interests bought 25 of America's leading newspapers, and inserted their own editors, in order to control the media. www.mindfully.org...

JP Morgan: Our next big media player? (April 13, 2010) JP Morgan controls 54 U.S. daily newspapers,and owns 31 television stations. www.newsandtech.com...

Just look at the four Rockefeller Foundations!
Sourcewatch

Activist Cash #1
Activist Cash #2
Activist Cash #3
Activist Cash #4
Activist Cash- J. P. Morgan Charitable Trust

Here is a Chart of the banking Families. You can use activistcash.com and sourcewatch.org to see for yourself if Mr. Griffin is correct.

Oh and remember the much hated Monsanto? Guess what 85% of the stock is voted by financial interests because 85% is held by mutual funds and Institutional (financial) Holders. For example Divisions of Fidelity hold 7.15%. The Johnson family controls most of Fidelity. Edward C Johnson 3rd is chairman of the group. Remember investors in mutual funds and pension funds are not the people who VOTE the stock the financiers controlling those funds ARE!



An excellent resource (135 pages) on exactly what is going on with the FED is:
A PRIMER ON MONEY: by US House Committee on Banking and Currency (1964)

What amount of Government securities have the private banks acquired with bank-created money?
“On January 31, 1964, all commercial banks in this country owned $62.7 billion in U.S. Government securities. The banks have acquired these securities with bank-created money. In other words, the banks have used the Federal Government's power to create money without charge to lend $62.7 billion to the Government at interest.

On January 29, 1964, commercial banks had total assets amounting to $304.7 billion, and all of these had been paid for with bank-created money, except $25.4 billion which had been paid for with their stockholders' capital. In other words, less than 10 percent of the banks' assets have been acquired with money invested by stockholders in the banks.” [pg 46]


If the Government can issue bonds, Why can't it issue money and save
the interest?

A few clearheaded and firm individuals, such as Abraham Lincoln,
have insisted that the Government can.


The late Thomas A. Edison once stated the matter this way :

If our Nation can issue a dollar bond it can issue a dollar bill. The element that makes the bond good makes the bill good also. The difference between the bond and the bill i s that the bond lets money brokers collect twice the amount of the bond and a n additional 20 percent, whereas the currency pays nobody but those who contribute directly in some useful way. It i s absurd to say that our country can issue $30 million in bonds and not $30 million in currency. Both are promises to pay: but one promise fattens the usurers. and the other helps the people. [pg 47]


What are the sources of revenue of the Federal Reserve?
By far the largest single source of income of the Federal Reserve banks is interest on holdings of U.S. Government securities. In 1963, interest on Government securities accounted for 98.9 percent of the total income of the Federal Reserve. [pg 62]

How much of the Federal Reserve's earnings must be returned to the Treasury?
No law or regulation specifies how much of the Federal Reservoe earnings must be returned to the Treasury nor when payments must be made. In practice, the Federal Reserve spends all of its income that it cares to spend, pays dividends to its member banks on their "stock" and sets aside a large amount as "surplus." The remainder is returned to the Treasury a t the end of each year. Despite the fact that there is no limitation on how much the Federal Reserve may spend to meet "expenses," it usually returns to the Treasury an amount many times the amount of its expenses. In 1963, it returned to the Trensuiy $879,685,219. [pg 63]

That meant in 1964, they got $279.3 billion dollars for FREE!!! Now that you understand that consider the amount of money the bankers are collecting from interest rates of 5%, 10,% or 30% on the money they created out of thin air!!!

reply to post by igigi


Sorry, the populace is dumb. Evidence can be found all over this thread among others on this board. I realize some is just for the "nature of the website", but let's get real.

You cannot reason with someone who possess inferior intellect. This all probably sounds authoritative, I guess it is, but I truly believe that this is the case.

reply to post by crimvelvet


Holy WOW! I've been looking for something like this for a minute now, it's the "Golden Ticket" of sorts pertaining to The Federal Reserve as this is the map of their overall architecture.

Star for you!

reply to post by TheImmaculateD1

Holy WOW! I've been looking for something like this for a minute now, it's the "Golden Ticket" of sorts pertaining to The Federal Reserve as this is the map of their overall architecture.

You should see the maneuvering behind the foreclosure scam!
After researching this I have nothing but contempt for the District of Criminals.

First the changes in the laws that lead up to Forclosuregate:

BANKING LAWS:

The McFadden Act of 1927 or Amendment to the National Banking Laws and the Federal Reserve Act (P.L. 69-639, 44 STAT. 1224): Prohibited interstate banking.

Law: Negating above:
Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (P.L. 103-328, 108 STAT. 2338).
Permits bank holding companies to acquire banks in any state one year Beginning June 1, 1997, allows interstate mergers.

The Glass-Steagall Act or Banking Act of 1933 (P.L. 73-66, 48 STAT. 162): Separated commercial banking from investment banking, establishing them as separate lines of commerce.


Bank Holding Company Act of 1956 (P.L. 84-511, 70 STAT. 133): Prohibited bank holding companies headquartered in one state from acquiring a bank in another state.

Law: Negating both of the above laws:
Gramm-Leach-Bliley Act of 1999 (P.L. 106-102, 113 STAT 1338)
Repeals last vestiges of the Glass Steagall Act of 1933. Modifies portions of the Bank Holding Company Act to allow affiliations between banks and insurance underwriters. Law creates a new financial holding company authorized to engage in: underwriting and selling insurance and securities, conducting both commercial and merchant banking, investing in and developing real estate and other "complimentary activities."

Federal Deposit Insurance Corporation Improvement Act of 1991 (P.L. 102-242, 105 STAT. 2236).
Also known as FDICIA. FDICIA greatly increased the powers and authority of the FDIC. Major provisions recapitalized the Bank Insurance Fund and allowed the FDIC to strengthen the fund by borrowing from the Treasury.

Housing and Community Development Act of 1992 (P.L. 102-550, 106 STAT. 3672).

RTC Completion Act (P.L. 103-204, 107 STAT. 2369):
implement provisions designed to improve the agency's record in providing business opportunities to minorities and women.. Expands the existing affordable housing programs of the RTC and the FDIC by broadening the potential affordable housing stock of the two agencies.
Increases the statute of limitations on RTC civil lawsuits. In cases in which the statute of limitations has expired, claims can be revived for fraud and intentional misconduct resulting in unjust enrichment or substantial loss to the thrift.
SOURCE


Those are the changes in banking laws that set the stage.

Here are the crucial move:
1.CDSs, credit default swaps were exempted from regulation in the Commodity Futures Modernization Act in the year 2000.

2.Hank Paulson who was the Treasury secretary who engineered the AIG bailout worked for Goldman Sachs.

3. If a bank had the credit default swap insurance policies on a mortgage, especially if they had more than one, it was to their advantage to force foreclosure.

4. Obama mortgage program sets up homeowners for defaulting on their mortgage by reducing payments up front before qualification and then handing them a staggering bill, due in one month when they do not qualify. (First hand experience) www.wtop.com...

Senior investors, who are typically financial institutions, own the AAA tranches that are insured against default by AIG, and they WANT to foreclose on the Middle Class so that insurance payments kick in. Conversely, the junior tranche investors want workouts with homeowners because their investment is not insured.
 
“To ensure that the mortgage servicer pushes default instead of workout, the servicer is paid double (50 basis points versus 25 basis points) by the MBS to service a loan in default. Why do you think your servicer tells you that you must be in default before it will consider a mortgage modification, a practice known as invited default?
 
“Simply put,” says Parker, “the government bailout of AIG has actually encouraged foreclosures because the taxpayers continue to fill AIG’s coffers with enough cash to pay out insurance on defaulted home loans.”

“A credit default swap (CDS) is a credit derivative contract between two counterparties,” says Wikipedia. "The buyer makes periodic payments to the seller, and in return receives a payoff if an underlying financial instrument defaults. CDS contracts have been compared with insurance, because the buyer pays a premium and, in return, receives a sum of money if one of the specified events occur...

Instead of cars or houses, credit default swaps were used to guarantee mortgage-backed securities (MBS), a safe bet according to the best-available mathematical models. Why? Because most homeowners pay off their home loans with the certainty of an ATM.
The is no reserve requirement with CDS because there's no government regulation. Each insurance company can set aside as much — or as little — as it wants for reserves. In fact, a company could set aside nothing for potential losses without violating regulatory requirements.
The money NOT set aside for reserves can be invested in high-risk securities to create a larger cash flow for the insurance company. This means that with CDS, insurers expected not only premiums but also bigger investment returns then would be possible with regular insurance products.
CDS premium revenue is not restricted to those who might have actual losses or real assets to protect. You can bet as much as you want and create as many CDS as you want....
www.realtytrac.com...

In other words there maybe more than one CDS on a mortgage and therefore it is much more profitable to collect the multiple payoffs than to refinance the mortgage.

MATT TAIBBI: Well, the insurance policies, the things that Cassano [AIG] was selling that are like insurance, Goldman Sachs actually had bought $20 billion worth of those guarantees, so that when we bailed out AIG, we were effectively bailing out Goldman Sachs, because AIG owed Goldman Sachs $20 billion.

And that’s significant, because who was the Treasury Secretary who engineered this bailout? It was Hank Paulson, who was the former head of Goldman Sachs. They ultimately ended up installing Ed Liddy as the CEO of AIG, and Liddy, himself, is a former Goldman employee. And now the top aide to Timothy Geithner, Mark Patterson, is a former Goldman executive. I mean, this whole situation is rife with Goldman Sachs employees...

MATT TAIBBI: Well, you know, the biggest situation is, you know, a lot of these contracts, these CDS contracts, are like gambling, in the sense that—normally when you buy an insurance policy, you’re buying a policy on a house that you actually own. With these CDS contracts, you could actually bet on somebody else’s mortgage. AIG, for instance, could have gone to Goldman Sachs and said, you know, “We’d like to bet that the mortgages that were issued by JPMorgan Chase are going to default in the next ten years.” So these two parties that don’t have anything to do with the actual underlying loan could actually gamble on the outcome of that loan. So, this is—it’s really no different at all from gambling. And that’s why they had to seek a specific exemption from gaming laws in the year 2000, when they actually went forward with the deregulation of these instruments.

AMY GOODMAN: What do you mean?
MATT TAIBBI: In the Commodity Futures Modernization Act in the year 2000, they specifically exempted credit default swaps from being treated as gaming under any state laws. And they had to do that, because they were afraid that they were going to be regulated by, you know, state gaming agencies.
www.democracynow.org...

Also see www.commondreams.org...