2024
July 3, 2024
The Federal Reserve Paid Banks and Funds $400 Billion Over 2 Years for Sitting on Cash
2022
- The Federal Reserve went broke in September 2022 when they were no longer showing a profit.
- Every week before then they made a profit and paid that to the Treasury. The would first deduct their 6% dividend that they pay all of the member banks that are stock holders in the Federal Reserve and then they deduct their operating expenses and all the rest of their profits that come from the interest on the interest bearing instruments that they are forced to buy. This is the only asset they can buy, which is mortgage backed securities since they became backed by the US government when we nationalized Fannie Mae and Freddie Mac and US treasurers, going all the way back to 1914, as detailed by the Federal Reserve Act, which states “The Federal Reserve must buy through the open market and they must buy only securities that are guaranteed as to the principal and the interest by the United States government, meaning, your taxes.
- As of October 2024, the Federal Reserve owes the Treasury over $200B, which they can not afford to pay.