How much money did the War on terror earn the federal reserve

The war on Terror cost a lot of money. Money that couldnt be footed by taxes alone. By how much was lending and debt torwards the federal reserve increased to finance the war on terror?

The Federal Reserve doesn't earn anything from any war, really. Governor Bush's Wars could indeed be one of the contributing factors to its likely demise...

The Federal Reserve doesn't "earn" from wars, it just allows them to construct new temporary scams in order to postpone collapse because war is deemed necessary in American Politics.

costofwar.com...

I think Stiglitz 2007 paper is still the most widely-cited when it comes to HOW the war was financed.... I hope that helped, didn't have much time to post.

reply to post by Cassius666


The Federal Reserve generates all money that is loaned to the U.S. and then charges interest on the U.S. for borrowing it from them. So, whatever total amount of money that has went into this war, you can bet your sweet ass the Fed made at least that much.

Watch this video and you will understand how American Dollars are generated out of thin air:

reply to post by SamTGonzalez


But the Fed doesn't keep the interest, most of it is rolled into new Tbills, the rest destroyed or sent to the Treasury...

Banks however, did profit from the war, and pretty much everything else... the Reserve did not. I hate the Reserve, but I wish people would at least educate themselves on how it actually works..

The FED does not earn any money in interest. The FED's make the money, gives it to Goldmansacks and Goldmansacks loans the money to the goverment. Goldmansacks gets the interest. I would say $37.5 billion Goldmansacks made on interest on the war so far. based on the 30-year note.

Originally posted by Rockpuck
reply to post by SamTGonzalez

 

But the Fed doesn't keep the interest, most of it is rolled into new Tbills, the rest destroyed or sent to the Treasury...

Banks however, did profit from the war, and pretty much everything else... the Reserve did not. I hate the Reserve, but I wish people would at least educate themselves on how it actually works..

If the Fed didn't make at least SOME profit, what would be the point of even loaning the money to us in the first place? And do you really think the rest would be destroyed? Why would they destroy funds?

Quite a few trillion in both principle and interest.

reply to post by SamTGonzalez


Your confusion arrives from the fact that you think of the two as two different entities.. the Federal Reserve was created by Congress to essentially manage the Ponzi Scheme off the books.. a way to manipulate the currency without actually having to "print" the money.. the way that the Fed purchases Debt from the Government keeps inflation under control (during normal times) because the money lent can be destroyed and or erased and or given to the treasury (most is destroyed)

The Federal Reserve is NOT AN ENTITY it CANNOT OWN ANYTHING it CANNOT PROFIT OFF OF ANYTHING!

Not that it needs to profit.. it can create digital dollars from nothing, so why would it even need interest? What a paradox, no?

In fact if you are looking for Tbills purchased off the books, "bad bank" assets and so forth, you won't find them on the Reserves balance books.. they would be stored under shell corporations because the fed, being a Board and not a Entity, cannot own anything, not assets or liabilities.

People differentiate between the Banks and the government, and pretend the Government is somehow being victimized and leached upon by Banks.

This is not true.

Effectively our Government IS a bank, and the banks are the Government.. the Reserve does what the Government wants it to do, and the Government does what the Reserve wants it to do.. The Reserve is held by Congress and it's board by Bankers, and Bankers own the Politicians who run the regulatory aspects of Banking, which determines the Funding for the Government to exist, which needs to exist for the Bankers to make a profit..

It's a full circle..

reply to post by SamTGonzalez


Another simple answer: If the Fed stopped purchasing our debt...........

So would everyone else.

reply to post by Rockpuck


Damn, you just blew my mind. Well it looks like we are fcked

reply to post by SamTGonzalez


I wouldn't worry.

What you are witnessing is "the game". Here is what is happening.

While everyone is de-leveraging, the FR comes up with a plan to "float" the economy until we can right the ship. Here is what happens. Banks, countries, institutions, common people all got slapped on the wrist. Now instead of being able to get xxx amount of leverage one can only now get .85 * (xxx). Some more, some less.

What happened realistically was that all of these entities and individuals were leveraged up to their eyeballs. If you are familiar with banking to begin with this is all much easier to understand. Leverage is a doubled edged sword. It can be a great thing in good times. But it only takes a sharp deviation from the mean to topple you all at once.

It helps very much to understand fat tail probability distributions to be able to visualize these concepts. When these 7-10 sigma events (deviations from the mean) occur, well god can only save you then.

These events do not happen often, but when they do they are of course devastating. Regardless, back to my point. Once the FR comes to the conclusion that we are not going to head into a period of deflation (yes, that is what would have happened if the FR did not step in) then they will once again raise rates and remove liquidity from the marketplace. They are also creating other happenings as well that "take care of themselves".

For instance when equity prices rise people feel more inclined to put money back into the economy. To truly understand all of this you really have to be well educated. There could be several books written on these subjects and it would be impossible to competently describe these concepts all in one post.

Forget the fed. The real question, the valid question, is how much has the WORLD BANK made off of this sham of a 'war'?

Originally posted by captaintyinknots
Forget the fed. The real question, the valid question, is how much has the WORLD BANK made off of this sham of a 'war'?

Good point, there needs to be more talk about the world bank too.