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Who Got the $77 Billion That the FED Earned in 2011?

Written by Gary North on March 22, 2012

The headline on MarkeWatch blared: Fed earns $77 billion from balance-sheet explosion. That got my attention.

We learned the following:

The Federal Reserve and its district banks earned the second-highest amount in its history last year as the central bank profited from increasing its balance sheet to boost the U.S. economy.

The Federal Reserve and its district banks said Tuesday that it earned $77.4 billion, down from $81.7 billion in 2010.

A lot of readers stopped reading there. If they did, they are not curious people. They refused to follow the money.

The next sentence is crucial: “The bumper earnings allowed the Fed to distribute $75.4 billion to the U.S. Treasury, also the second-highest level ever.”

Got that? The FED gave almost all of the money back to the government. It did the same last year.

It does the same every year. By law, the Federal Reserve System is not allowed to keep the money. That has been true ever since World War II.

Most critics of the FED are unaware of this. They talk as though the FED keeps all this money. From 1914 until World War II, it did. But that was a long time ago.

The FED inflates. We read: “Its balance sheet reached $2.92 trillion in 2011, up from $2.43 trillion in 2010.” Wait a minute! If 2010 was more “profitable” for the FED, but the FED held fewer IOUs from the government, why did it earn more interest in 2010? The article did not ask this. Here is the answer: interest rates on government IOUs are lower.

The article said this:

Because it effectively pays for those securities out of money it creates from thin air, the so-called quantitative easing programs are extremely profitable. A Federal Reserve official on Tuesday said the central bank doesn’t pay attention to profit when it conducts its operation.

But it really does not matter how “profitable” this is. By law, it has to credit the government with most of the interest the government pays to the FED.

In short, it’s all an accounting game.

Did you know this? Most people who read about the Federal Reserve do not know this.

The FED is not about profit. It’s about control over the money supply. It’s about bailing out big banks.

There is an old rule: “Know thy enemy.” If you think the FED is about making money, you don’t know the FED. It’s not about making money. It’s about controlling market forces so that the big banks are taken care of in any crisis. It’s about big bank bailouts.

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13 thoughts on “Who Got the $77 Billion That the FED Earned in 2011?

  1. SEAN MURRY says:

    That money went to the robber barons in Washington.

  2. http://www.petition2congress.c... Go to this website and sign the petition to vet Obama for eligibility to even be on the ballot. The lame stream media never did in 08. They were too busy bowing and scraping to him.

    The money is probably in Obama's war chest. Bernanke believes fiat money is better than gold backed. The fact that fiat money has always failed doesn't seem to matter to him.

  3. Specifically to the globalist robber barons in the NWO. The Fed is a private corporation. Private corporations have owners. The rich, powerful crooks of the NWO own the Fed, the Bank of England, and most other Central Banks in the world. In other words, they control all the money in the world. Every time the Fed prints more worthless funny money, these crooks make more money. But that's not enough for them. Their goal, and their reason for destroying the US economy, is to destroy the US dollar, so they can replace it with their own global currency, and make even more obscene profits. They created this phoney strawman we call Obama, created a past and history for him, and bought him the election, installed him illegally in the presidency, and are planning to buy him re-election. Do you think they'd do all that if they didn't have the biggest scam in world history in their sights?

  4. My question about 2008 is why didn't Hillary or McCain make an issue of the birth certificate, especially early on when the media was clearly favoring Hillary as the Dems' nominee?

  5. I believe Obama and his cronies are a Lame Stream Media conspiracy and there is a lot of George Soros's money behind it.

  6. Maybe true, but I think Hillary wanted to be president worse than she wanted to be part of a conspiracy to play 3rd or 4th fiddle in an Obama administration. And McCain?

    I also just realized that the OP is cluttering up every thread — regardless of the topic — with this link to an online birther petition. Does she not know that online petitions are legally worthless for effecting political change?

  7. I agree. We have the FBI, CIA & Secret Service. Wouldn't our government be an accomplice? If everone is involved, I believe we're past the point of no return. And if anyone in the world can become a senator, our government is incompetent beyond belief.

  8. shawnforfreedom says:

    that seems to be right on. the control is the key, like any mob, keeping control is much more important than the cash ,the women ,diamonds etc. control is the name of the game ,and obama i in charge of controlling the voting bloc. he is suppose to have the majority of the lemming vote base, he is trying to create dependents that will keep voting for him, bought and paid for. government workers ,entitlement people and welfare scum. adding illegals and any other group that he can buy.
    meanwhile running up a debt that people are unable to comprehend, to most it is just a large number(5 trillion in new debt) no wonder california is not bankrupt,they have been paid. to wonder we have a recovery , it is pumped up with money that is so massive most people are unable to comprehend the size. they think our economy is coming back, but they are confused because they dont see any manufacturing, or viable production. but hey look at the stock market , it must be coming back. NOT it is all fake!! obama is manufacturing a fake recovery and people are to dumb to see it.
    those in control are manufacturing a bubble that will pop soon. they want a disaster . has anyone read mao tse tung
    he says it clearly . first destroy then rebuild. that is the plan. the policies are set for the destruction , the rebuilding is written on the bilderbergs agenda tablets(have you read them,its written in 8 languages and 4 ancients ). 6 billion people are to die. are you listening?? wake up everyone.

  9. Just think about what would happen if the average family budget operated this way.

  10. NO, they're in Britain, mostly within the City of London. But they are the Robber Barons.

  11. ImaTruePatriot says:

    I believe that you are referring to the Georgia Guide stones in that last part of your post. They are a sort of American Stonehenge secretly arranged to be built, with the name of the person (Christian Rosenkreuz) who paid for the stones being an anagram of the Rosicrucians. A secret society just building themselves a shrine, basically. This was supposedly set up to give future people of the Americas a sort of guide on how to live and form a perfect society. They are very scary to read and I have only seen them online myself. Check out the Wikipedia page for them here : http://en.wikipedia.org/wiki/Georgia_Guidestones

  12. ImaTruePatriot says:

    Oops…..I made a mistake there……the actual name was a pseudonym; "R. C. Christian" who bought and made the plans for the Georgia Guide stones. I just skimmed the info before I posted the link. The other name, Christian Rosenkreuz, is named the founder of the Rosicrucians order revealed within the last of the three manifestos written in 1616. I guess I saw that name and assumed it was the one I was thinking of that funded the Georgia Guide stones……boy was I wrong!

  13. Citizen Fighter says:

    I guess the Tea Party wants the money but doesn't want to pay the taxes.