Federal Reserve system

@metal-brain said
Why?
When people hire contractors to do a service they are usually paid after the job is done. Have you ever handed a contractor a wad of money and told him to pay you back after he did the job?

Your post makes no sense. The Fed does get paid by private banks for various services but most of its income is from interest from securities. Any institution that holds interest bearing securities issued by the US government gets paid by them including the Fed. The only difference is the Fed returns any profits to the Treasury.

This is bad ......................................................................... why exactly?

@sh76 said
The Federal Reserve predated TARP by almost 100 years and TARP was passed by Congress, not the Fed.

I still don't understand why you and Ron Paul are so angry at the Fed.

Right wing libertarians cannot accept that capitalism could ever have any serious negative consequences, so if economic problems arise it must be the fault of government.

@sh76 said
By the way, inflation has been historically very low since TARP was passed.

https://www.thebalance.com/u-s-inflation-rate-history-by-year-and-forecast-3306093

I looked at that link and noticed the numbers are different in this link.

https://usinflation.org/us-inflation-rate/

Perhaps you can tell me why.

@no1marauder said
Your post makes no sense. The Fed does get paid by private banks for various services but most of its income is from interest from securities. Any institution that holds interest bearing securities issued by the US government gets paid by them including the Fed. The only difference is the Fed returns any profits to the Treasury.

This is bad ......................................................................... why exactly?

Why doesn't the FRS just send a bill to the government?
Where does the FRS get the money to buy the treasury bonds?

@no1marauder said
Right wing libertarians cannot accept that capitalism could ever have any serious negative consequences, so if economic problems arise it must be the fault of government.

I'm not a right wing libertarian. I voted for Jill Stein. Furthermore, this has nothing to do with capitalism.

It is amazing that the people so eager to defend the FRS know so very little about it. You don't even know where the FRS gets the money to buy the bonds. That is called ignorance.

@metal-brain said
Why doesn't the FRS just send a bill to the government?
Where does the FRS get the money to buy the treasury bonds?

A bill for what?

Here read this if you want to know what assets the Fed has: https://www.federalreserve.gov/monetarypolicy/bst_fedsbalancesheet.htm

A short answer is this:

Also on the second page are the capital accounts of the Federal Reserve. Each member bank of the Federal Reserve is required, by law, to subscribe to shares of its local Reserve Bank in an amount equal to 6 percent of its own paid-in capital and surplus.

Here's a list of services the Fed provides to member banks that it charges fees for:

(b) The services which shall be covered by the schedule of fees under subsection (a) are--

currency and coin services;
check clearing and collection services;
wire transfer services;
automated clearinghouse services;
settlement services;
securities safekeeping services;
Federal Reserve float; and
any new services which the Federal Reserve System offers, including but not limited to payment services to effectuate the electronic transfer of funds.

https://www.federalreserve.gov/aboutthefed/section11a.htm

@kazetnagorra said
As sh76 pointed out already, inflation has been at a steady, low rate for decades.

Guess you aint been to the grocery store in the last yr.

@no1marauder said
A bill for what?

Here read this if you want to know what assets the Fed has: https://www.federalreserve.gov/monetarypolicy/bst_fedsbalancesheet.htm

A short answer is this:

Also on the second page are the capital accounts of the Federal Reserve. Each member bank of the Federal Reserve is required, by law, to subscribe to shares of its local Reserve Bank in an amou ...[text shortened]... tuate the electronic transfer of funds.

https://www.federalreserve.gov/aboutthefed/section11a.htm

You didn't answer my questions. If you don't know the answers just admit you don't know. I could post a link that tells me nothing about the answers to questions too, but I doubt you would like me wasting your time like you are mine.

Like I said. You don't know enough about how the FRS does things to have a real opinion about the FRS at all.

@kquinn909 said
Guess you aint been to the grocery store in the last yr.

He is from Europe. He doesn't know from experience. He is going by what he reads alone. He probably doesn't know how food packages in the grocery stores got smaller or weighed less to deceive us into thinking the prices didn't increase when they did.

@metal-brain said
You didn't answer my questions. If you don't know the answers just admit you don't know. I could post a link that tells me nothing about the answers to questions too, but I doubt you would like me wasting your time like you are mine.

Like I said. You don't know enough about how the FRS does things to have a real opinion about the FRS at all.

Yes, I answered your question by showing the source of funds the Fed has from its operations. That answers the question "Where does the FRS get the money to buy the treasury bonds?".

@no1marauder said
Yes, I answered your question by showing the source of funds the Fed has from its operations. That answers the question "Where does the FRS get the money to buy the treasury bonds?".

No, you didn't.

@metal-brain said
No, you didn't.

Really? If you ask someone where they got the money to buy their car and they say from the fees I collected from X, Y and Z, they haven't answered the question?

@no1marauder said
Really? If you ask someone where they got the money to buy their car and they say from the fees I collected from X, Y and Z, they haven't answered the question?

If someone cannot possibly collect enough money from X,Y and Z to buy their car they have not answered my question.

Remember the amount you posted of the FRS earnings from a certain year? That is just from the interest the treasury bonds pay. Imagine how much more the bond itself costs.

@metal-brain said
If someone cannot possibly collect enough money from X,Y and Z to buy their car they have not answered my question.

Remember the amount you posted of the FRS earnings from a certain year? That is just from the interest the treasury bonds pay. Imagine how much more the bond itself costs.

They have $2.3 billion worth of Treasury securities. https://www.federalreserve.gov/releases/h41/current/h41.htm

They didn't buy them all in one year but gradually over time. Sometimes they sell them to member banks; they've reduced their portfolio of US notes and bonds by almost $200 million since last November. Of course, they got money from the buyers by doing so.

EDIT: Sorry, I misread the figures. That's $2.3 trillion in Treasury securities and sales of $200 billion since last year.

@sh76 said
While on the subject, could you please explain to me why the "don't tread on me" crowd has such a hard-on for the Federal Reserve?

What in particular is it about this fairly routine institution that has the super-libertarians' panties in a twist?

Do you guys just not believe the federal government should have the power to run a bank? The question was litigated back in 1819 ...[text shortened]... . Maryland), but something tells me this is more than just a constitutional law issue to you fellas.

JFK wrote Executive Order 1110 to do away with the Fed but then he went to Dallas.............

That may have something to do with it.

Or it may be the fact that they have such powers over all of us, but are considered "private". Most of what they do is also secret.

Jefferson and company vehemently opposed a US bank as I'm sure you are aware.

What I do know is that with the Fed Congress has been enabled to run up a debt higher than any in human history.

Don't you worry about that sh? Think about it, the death of the Republic might be due to the creation of the Fed.