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Re: FEDERAL RESERVE
posted at March 28, 2012 11:55 AM EDT
First: February 29, 2008
Last: May 17, 2013
Totally disheartening, to learn all the lack of "oversight" and regulation that is allows Wall Street, Banks, and Federal Insurors to do just what got us into this mess, on an even grander scale.
These claims, made chiefly by authors Eustace Mullins (1983) and Gary Kah (1991) and repeated by many others----- Here's an excerpt from the article = http://www.usagold.com/federalreserve.html
Gary Kah and Thomas Schauf have also maintained that the huge profits of the Federal Reserve System are diverted to its foreign owners through the dividends paid to its stockholders. Kah reported "Each year billions of dollars are 'earned' by Class A stockholders of the Federal Reserve" (Kah, p. 20). Schauf further lamented by asking, "When are the profits of the Fed going to start flowing into the Treasury so that average Americans are no longer burdened with excessive, unnecessary taxes?"
The Federal Reserve System certainly makes large profits. According to the Board's 1995 Annual Report, the System had net income totaling $23.9 billion, which, if it were a single firm, would qualify it as one of the most profitable companies in the world. How were these profits distributed? By an agreement between the Board of Governors and the Treasury, nearly all of the Fed's annual profits are paid to the federal government. Accordingly, a lion's share of $23.4 billion, which represents 97.9 percent of the Federal Reserve's net income, was transferred to the Treasury. The Federal Reserve Banks kept $283 million, and the remaining $231 million was paid to its stockholders as dividends.
Given that less than one percent of the Fed's net earnings are distributed as dividends, it seems that an investor could easily find much more profitable ways to store their wealth than buying Federal Reserve stock. Regarding Schauf's lamentation, the Federal Reserve System has been paying its profits to the Treasury since 1947.