Federal Reserve Earns $82B, Turns it Over to Treasury Dept.

[InTheLight]

NEW YORK (CNNMoney) -- The Federal Reserve made $82 billion in income in 2010, the central bank said Tuesday.

The Fed turns over most of its profits to Treasury in weekly remittances from the 12 regional Federal Reserve Banks to the government.

In 2010, the Fed sent almost all of its profit -- $79 billion -- to Treasury, a $32 billion increase from the amount transferred in 2009.

The increase in income was driven primarily by $24 billion in interest earnings on federal agency and GSE mortgage backed security holdings.


http://money.cnn.com/2011/03/22/news/economy/federal_reserve_financials/

 

[poncho]

Here is another half-truth that is a whopper deception. It is true that most of the money paid by the government for interest on the national debt is returned to the government. That is because the Fed’s charter requires any interest payments in excess of the Fed’s actual operating expenses to be refunded. However, before we jump to the conclusion that this is a wonderful benefit, we must remember that the banking cartel is able to use tax dollars to pay 100% of its operating expenses with few questions asked about the nature of those expenses.

After all of those expenses are paid, what is left over is rebated to the Treasury, as Flaherty says.

There is no secret about this, and you will find an explanation of it in my book. Technically, there is no “profit” on this money. However, remember that creating money for the government is only one of the functions of the Fed. The real bonanza comes, not from money created out of nothing for the government, but from money created out of nothing by the commercial banks for loans to the private sector. That’s where the real action is. This is the famous slight-of-hand trick. Distract attention with one hand while the coin is retrieved by the other. By focusing on the supposed generosity of the Fed by returning unused interest to the Treasury, we are supposed to overlook the much larger river of gold flowing into the member banks in the form of interest on nothing as a result of consumer and commercial loans.

G. Edward Griifin

1. The Fed is incapable of accomplishing its stated objectives.
2. It is a cartel operating against the public interest.
3. It is the supreme instrument of usury.
4. It generates our most unfair tax through inflation and bailouts.
5. It encourages war.
6. It destabilizes the economy.
7. It discourages private capital formation.