[justshutupandtakeit]

Well the Deposits of the earnings of the FR at Treasury were almost $30 Billion in 2001. I don't have time to look for more figures. But essentially this figure represents the gross interest paid to the Fed as interest on federal debt held by the Fed. There are some expenses to be deducted before a true net figure can be arrived at but I don't have those at the moment.

[Always Right]

Well the Deposits of the earnings of the FR at Treasury were almost $30 Billion in 2001.

That is about right. But the problem is the Federal Reserve has no motivation to maximize 'earnings' for the Treasury. The Federal Reserve is a black hole of spending and has accumulated roughly 1/2 trillion dollars in buildings and real estate. The Federal Reserve is in essence a huge beuracratic institution that is wholey subsidized by the fact they create money and charge interest. The Fed performs a neccessary function, but lacks an effective method to keep it in check.

[jd777]

??? Excuse me. You don't know what you're talking about. The U.S taxpayer pays the interest on our federal debt. We pay it to the holders of U.S. treasuries. Last year (FY02) the U. S. Government spent $333 Billion of our money on interest payments. What's more those treasuries instruments aren't even sold by the government. They are sold by the registered dealers of the fed system on behalf of the treasury in exchange for the "creation" of Federal Reserve notes (aka U.S Dollars). It doesn't sound like you understand this system you are defending. .