What Does the Federal Reserve Do with the Interest It Collects on the National Debt?

David Dees
image_pdf
  • Save
image_print
  • Save

FACT:
Nearly all the interest the Federal Reserve collects on government debt is rebated to the Treasury each year.  That is because the Fed’s charter requires interest payments in excess of the Fed’s actual operating expenses to be refunded.  However, before we jump to the conclusion that this is a wonderful benefit, we must remember that the banking cartel is able to use tax dollars to pay 100% of its operating expenses with few questions asked about the nature of those expenses.  In other words, a blank check is given to the Federal Reserve to pay itself for just about anything it wishes so long as it is called an expense.  What is left over is rebated to the Treasury.  There is no secret about this, and you will find an explanation of it in my book, The Creature from Jekyll Island: A Second Look at the Federal Reserve.  Technically, there is no “profit” on this money.  However, remember that creating money for the government is only one of the functions of the Fed.  The real bonanza comes, not from money created out of nothing for the government, but from money created out of nothing by the commercial banks for loans to the private sector.  That’s where the real action is.  This is the famous slight-of-hand trick. Distract attention with one hand while the coin is retrieved by the other.  By focusing on the supposed generosity of the Fed by returning unused interest to the Treasury, we are supposed to overlook the much larger river of gold flowing into the member banks in the form of interest on nothing as a result of consumer and commercial loans.  That’s the hand that holds the hidden coin. -GEG

Visit our Classified ads.

Check out our Classified ads at the bottom of this page.

Recent stories & commentary

Classifieds

For classified advertising rates and terms, click here. The appearance of ads on this site does not signify endorsement by the publisher. We do not attempt to verify the accuracy of statements made therein or vouch for the integrity of advertisers. However, we will investigate complaints from readers and remove any message we find to be misleading or that promotes anything fraudulent, illegal, or unethical.

Health


G. Edward Griffin’s blood pressure dropped to healthy levels and stayed there after using Cardio Miracle, a nitric-oxide booster containing a blend of ingredients that supports the body’s natural defense against heart disease, atherosclerosis, cancer, diabetes, Alzheimers, and more. If you are over 40, you really should check this out.


The Heavenly Handbook of Health. “WOW! U want FeedBack? So far I am floored. If I’ve learned anything about you since we met; this book has the potential to be a blockbuster.” Read 18pg Teaser @ HeavenlyHandbookofHealth.com Simple, incredible, affordable health – any age!



Learn Natural Medicine practice at home! There is NO Freedom without Health Freedom. There is NO Health Freedom without Informed, Voluntary Consent. There is no informed consent without education and understanding. SomaVeda College of Natural Medicine, Thai Yoga Center provides you and your family with spiritually based natural health education. ThaiYogaCenter.Com or SomaVeda.Org.


Health with space-age technology and Quantum physics. For people and all animals. No medication! Available world wide! Contact us at [email protected]. For principals and testimonials please visit our website. www.Healthytherapy.com



JWLABS – Building fine Rife frequency instruments in the USA since 1987.
We offer customer support and an exceptional warranty. Learn why all households and clinics should employ this device. Call us at 888-891-1122 to discuss the many benefits.   www.rifemachine.com



AFFORDABLE MEDICAL PLANS: Access to all providers – Low Deductibles – Alternative Treatments Allowed – Priced 40-60% off marketplace!! Contact [email protected] or 800-229-0297 www.ftcproducts.com


Income


Free Report: Three Major Shifts That Signal Risks to Your Investments Are Headed Higher. Including the one action every investor should take right now to protect their portfolio against significantly rising risks. http://BuyAndStoreGold.com/pl-geg/



Are you ready for financial freedom?
Visit:  www.MoneyThatsReal.com



Ultimate Wealth Building Guide reveals 5 steps to create your own banking system to achieve lifetime financial security, certainty, and peace of mind in 60 days. Discover how to build and grow lasting wealth safely and predictably, regardless of market and economic cycles. www.mywealthwarehouse.com


Make money on money you are already spending. Join the world’s largest shopping network. Eleven-year-old company in 46 countries. Info and free membership. www.freedombuildersinternational.com



Discover How You Can Raise ALL THE MONEY YOU NEED for any worthwhile project with Crowd Funding! Bills-Business-Charity-Education-Artistic-Personal & more! Free 7-minute video gives you all the details. http://GetCrowdFundedToday.com


Money & Banking


Lawful 100% income tax avoidance: a right recognized by IRS and Supreme Court. Request free report: [email protected] or find NoThanksIRS on FB/Twitter.



Applied Knowledge Conquers the Future. Learn what you can do to start preparing for the inevitable financial crisis! The cost of ignorance is fatal. Don’t get left behind! Empower yourself with education! http://www.WealthControlResources.com



The Coming Gold & Silver Share Explosion!
Learn how the Millers, an average American couple, turned their $100,000 investment, into $3,736,165 (audited) from 2001 to 2016 with John Doody’s gold-stock program (free E-Book download). Go to http://banking-holiday.com, where you will get this book + their Banking Holiday book free. 727-564 9416.


Need to Know

For years a Freedom Force member, Teddy L. has been taken into dementia assisted living, at $2200 a month. I’m a paraplegic left to live alone with our pets. Dementia incurably worsens. Help needed and appreciated. 740-861-3878 or http://www.gofundme.com/f/running-bear/



Anxiety Publishing – providing more satisfying novels to the conscious community, stories based in a real world, not the illusion of the establishment. Promote your precious novel with your fellow authors and help build a collection of future classics. anxietypub.com


For Sale


Offline is a documentary on the inevitability of the Earth being slammed by a mega solar flare – not the common type that interrupts communications and creates a light show in the Northern skies – but the big brothers thousands of times more powerful. These monsters deliver enough energy to blow apart the master transformers that supply the planet’s energy grids. When that happens, the lights go out for longer than anyone wants to think about. These X-Class solar storms hit the Earth every 150 years, on average. The last one arrived 156 years ago. We are overdue (More)

 


About G. Edward Griffin 7 Articles
G. Edward Griffin is a writer and documentary film producer with many successful titles to his credit. Listed in Who’s Who in America, he is well known because of his talent for researching difficult topics and presenting them in clear terms that all can understand.
Subscribe
Notify of
guest
2 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Tony
Tony
11 months ago

What does the Federal Reserve do with the money it collects when the T-Bill or other debt instrument is repaid in full when it reaches maturity?

Admin
needtokn
11 months ago
Reply to  Tony

Theoretically, it ceases to exist. If it is electronic/digital money, this is done by converting the numeric value to zero in the master computer. If it is physical cash (which it rarely is) it is placed into a vault, and the serial numbers are noted in the ledger as belonging to currency that in non-circulating, which means it is no longer considered as money but merely pieces of paper awaiting to go back into circulation someday. Another method of taking it out of circulation is to burn it. The important fact here is that money is created by loans and… Read more »