[Pelham]

There is no such thing as “Federal Reserve Note Debt”. The Fed doesn’t issue debt. They buy and sell debt, usually Treasury paper for the purpose of adjusting loanable funds in the banking system.

“What happens to the profit generated from this scheme?”

Any income above basic operating expenses goes to the US Treasury. The Fed’s income comes from interest on their enormous bond holdings. But they don’t actually own the bonds. They use them for monetary management.

[reasonisfaith]

Sounds good, except when you remember the Fed refuses to be audited.

So you don’t really know what happens to anything the Fed counts in numbers.

[semimojo]

Any income above basic operating expenses goes to the US Treasury.

Exactly.

I always wondered why a bunch of conspirators would go to Jekyll Island to cook up a way to get the federal government more revenue.