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Federal Reserve Returns $77 Billion to the Treasury for 2011

Written by Gary North on January 11, 2012

Every year, the Federal Reserve System returns to the Treasury most of the money it receives as interest payments from the U.S. government. In 2010, this was over $79 billion. Interest rates were lower in 2011, so this year’s payment is around $77 billion.

The FED by law has not been able to keep the money ever since 1943.

You say you never heard of this? You say you thought the FED kept it all? That is because you have been misinformed. Deliberately. Systematically. This has gone on for over 60 years.

Sadly, anti-FED writers in the Greenback fiat money movement — above all, Ellen Brown — refuse to fess up. They should tell their readers that the FED is not about making money. It is about power. It is about protecting the largest banks. Fact:

Each year, the Fed sends its earnings, minus operating costs and other expenses, to the fiscal authority.

The Fed estimated its net income for last year at $78.9 billion, down from a record $81.7 billion in 2010.

Anyone who says that the FED keeps the money is exposing himself as ill-informed. Don’t be taken in. The FED should be closed, but not because of its supposed profits. It keeps a small percentage for itself, and it does perform legitimate services, such as check-clearing.

There are a lot of well-intentioned but ignorant critics of the FED. Don’t be one of them.

To understand what we need, begin here: The Gold Dollar.

Continue Reading on www.reuters.com

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