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To: Pelham
If you don't like paying interest, tell Congress to start paying down the debt.

What was that that Greenspan set a month or so ago? DO banks get their money FREE from the FRS. And what price would the FRS pay if they screwed us over on the interest? Can we vote them out? The FRS does not ultimately answer to us or the gov.

72 posted on 02/07/2002 7:06:49 AM PST by Texaggie79
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To: Texaggie79
I'd answer your questions if I could make sense of them. I don't know what Greenspan comment you have in mind, you'll have to elaborate.

"Do banks get their money Free from the FRS"?

Again, I can't decipher what you are asking. Are you asking about their currency, or about loans they might take? If you mean currency, they don't pay anything above face value for currency. No different than what you do. Perhaps you are fixating on the "Federal Reserve Note" legend on currency. The BP&E could change it overnight to "US Notes" (the old Greenback issue name) or to something like "American Currency" and it would be exactly the same as it is now with the FRN legend. The only loss is that we wouldn't be entertained by all conpsiracy theories that focus on the FRN legend, and that would be a big loss. The vast majority of money banks deal with is all log entry anyway. It's possible for a bank to avoid dealing in currency entirely.

As for another possible meaning to your question, banks don't have to borrow from the Fed at all, so they don't have to pay the Fed anything. Unless they borrow at the discount window.

And what price would the FRS pay if they screwed us over on the interest?

I have no idea what this means. "Screwed us over on the interest"? What interest? The Fed doesn't pay us interest, and we don't pay the Fed interest. Americans pay interest to the Treasury, in the form of taxes, on the debt instruments issued by the Treasury at the behest of Congress. The only interest the Fed collects is the interest on T-bills that they own. Just like you do, if you buy T-bills.

Can we vote them out? The FRS does not ultimately answer to us or the gov.

Fed governors are appointed; some, if not all, by the President. You need to do some basic fact checking before you post.

117 posted on 02/07/2002 8:17:12 PM PST by Pelham
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