Posted on 10/01/2013 9:38:18 AM PDT by george76
In 64 A.D., in a naïve attempt to deceive the populace, Nero decreased the silver content in the coins and made silver and gold coins slightly smaller ... central planners have been clipping coins and devaluing the The People’s hard-earned currency for at least two thousand years. The Roman Emperor Nero of course devalued the Roman currency for the first time in the Empire’s history. What was it that gave both the Roman and Ottoman Empires the audacity to plunder the purchasing power of their people?
After 200 years of operating as an independent bank, what made the British Empire so soft that it felt the need to socialize (nationalize) the Bank of England in 1946? What was the US “Free-Market” Empire and why have we empowered the Fed to change it?
If you disregard the vacuum of history in which Ben Bernanke thinks (the 1930s) and contextualize the moment his Fed currently occupies (within the construct of long-term history, which will ultimately judge Bernanke when he’s long gone), it’s getting scary again. But you probably already knew that. The sad thing is that some of his Fed heads do too.
On Monday, Dallas Fed Head Richard Fisher basically admitted two key things:
1.) The current White House Administration has politicized the US Federal Reserve.
2.) By not doing what they led the market to believe they would do (taper), the Fed is losing credibility
(Excerpt) Read more at forbes.com ...
And where did the other $2B go. Its not like we are talking thousands or hundreds of thousands.
$2B in profit is quite a lot to spread amongst a relative few people.
And Mortgaged backed secruities.
Are you a little concerned that the government not only backs a ton of mortgages, but they own them too?
And interest paid to them through the treasury for printing our money.
Back up for this claim.
Profits coming through the privileged money creation process mainly occurs at the member bank level of operation, and those profits are not turned over to the Treasury.
Many different groups come up with roughly this amount.
A single credible one would be fine.
The fact is they created this one.
Yes, they created an independent agency of government.
For immediate release
The Federal Reserve Board on Thursday announced preliminary unaudited results indicating that the Reserve Banks provided for payments of approximately $88.9 billion of their estimated 2012 net income to the U.S. Treasury. Under the Board's policy, the residual earnings of each Federal Reserve Bank are distributed to the U.S. Treasury, after providing for the costs of operations, payment of dividends, and the amount necessary to equate surplus with capital paid-in.
The Federal Reserve Banks’ 2012 estimated net income of $91.0 billion was derived primarily from $80.5 billion in interest income on securities acquired through open market operations (U.S. Treasury securities, federal agency and government-sponsored enterprise (GSE) mortgage-backed securities (MBS), and GSE debt securities). Additional earnings were derived primarily from net realized gains on the sale of U.S. Treasury securities of $13.3 billion, net income of $6.1 billion attributable to the consolidated limited liability companies that were created in response to the financial crisis, and income from services of $450 million, offset by losses of $1.1 billion that result from the daily revaluation of foreign currency denominated asset holdings at current exchange rates. The Reserve Banks had interest expense of $3.9 billion on depository institutions’ reserve balances.
Operating expenses of the Reserve Banks, net of amounts reimbursed by the U.S. Treasury and other entities for services the Reserve Banks provided as fiscal agents, totaled $3.7 billion in 2012. In addition, the Reserve Banks were assessed $1.2 billion for the cost of new currency and Board expenditures, and $387 million to fund the operations of the Bureau of Consumer Financial Protection and Office of Financial Research. In 2012, statutory dividends totaled $1.6 billion and $461 million of net income was used to equate surplus to capital paid-in.
The preliminary unaudited results include valuation adjustments as of September 30 for Term Asset–Backed Securities Loan Facility (TALF) loans and the consolidated limited liability companies. The final results, which will be presented in the Reserve Banks’ annual audited financial statements and the Board of Governors’ Annual Report, will reflect valuation adjustments as of December 31.
The attached chart illustrates the amount of Federal Reserve Banks’ residual earnings distributed to the U.S. Treasury from 2003 through 2012 (estimated).
For media inquiries, call 202-452-2955
http://www.federalreserve.gov/newsevents/press/other/20130110a.htm
Why would the Treasury pay them for printing our money?
A single credible one would be fine.
Glad to hear it. You should be able to easily find one then.
Yes, they created an independent agency of government.
They are not a government agency by any logical objective measure. The Fed itself doesn't even claim to be a government agency but a "non-profit organization" but I don't get anything for convincing you, be secure in either your ignorance or continue to peddle your propaganda.
I dont know, you are the expert—you tell me.
I stand corrected. We pay the shareholders of Fed Stock (whoever the hell that is...) 6% dividend annually.
So, in essence, we pay the owners of the member banks a 6% cut of the action.
Of course not.
and those profits are not turned over to the Treasury.
It's the above portion of your claim I deny.
You should be able to easily find one then.
If you had one, you'd post it.
They are not a government agency by any logical objective measure. The Fed itself doesn't even claim to be a government agency but a "non-profit organization"
The Federal Reserve, like many other central banks, is an independent government agency but also one that is ultimately accountable to the public and the Congress.
The "action" last year was over $90 billion. Dividends were $1.6 billion.
So 1.2 billion to the shareholders is OK? When the treasury did the job well for years?
They have about $27 billion of capital in the system, they get 6% a year. That's the law.
When the treasury did the job well for years?
What job?
Oh, wait...who ran the economy before the Fed?
You have all of the facts. And that’s good. You are the smartest guy in the room.
I guess you are ok with $85 trillion being injected into the economy?
I disagree. So, let’s end it at that.
Your math is off. Sorry about your gold.
Huh? What gold? My gold is fine. It has to drop a lot more for me to lose sleep.
And you are a free marketer who wishes the government would get off our back. If you support the fed action, you are a Keynesian. Which is almost as bad as a Kenyan.
That's a relief, hard to maintain your value when you're down 33% over the last 2 years.
Yes I am.
If you support the fed action
At this point, I don't think it's helping, don't think it's hurting. They should end it.
you are a Keynesian.
I'd ask you what that has to do with current Fed policy, but I think your answer would make my head hurt.
Operative word— you missed the point— “give” it was NOT given can assure you. This is precisely the relationship that needs to be abolished, as in Andrew Jackson style breaking the “BANK” (it is on his tombstone, btw).
Washington could never have envisioned these kind of “foreign entanglements”, and disregard of US sovereignty.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.