By JG Vibes
Many people believe that the Federal Reserve is an organization that operates as a public service, there are not many out there who realize that this is a for profit business.
Of course, there is nothing wrong with providing a service and turning a profit, but there is something wrong with using the government to monopolize a vital aspect of society, forcing the whole society to use a particular service whether they like to or not.
It turns out that The Federal Reserve makes billions per year through this coercive monopoly, and this much activists and researchers have known for a long time. However, until now there has been very little hard evidence or sources to reference, which tell us exactly how much money they really do make. Recently, some numbers were revealed that can at least shed some light on a portion of their income, and these preliminary figures amount to at least $90 Billion per year.
“While leaders in Washington stare down the fiscal cliff, let’s not forget the fiscal fact that brought us to the edge: The annual U.S. government deficit of more than a trillion dollars. But through it all, one government-related entity has been hauling in record surpluses. New data capture the scope of profits at the U.S. Federal Reserve, estimated to be $90 billion this year.”
“The last five or six years their profits have roughly tripled,” says Allan Sloan, senior editor-at-large at Fortune Magazine.
According to Sloan, the Federal Reserve owes its success to its practice of buying securities with newly printed money.
“If you go out an buy $2 or $3 trillion of securities that pay interest and you don’t have to pay any interest on the money used to buy the securities, you make a lot of money,” says Sloan.
Not only that, but a great deal of the national debt is actually “owed” to the Fed, due to their charging of interest on every dollar that they print and loan to the US government.
It is likely that this revelation will be swept under the rug by the mainstream media, and it is also highly probable the $90 billion figure is merely scratching the surface.
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