Federal Reserve Made Record Profit in 2009

Is anyone asking the obvious question?
Where exactly has the “Fed” found 1.8 trillion in US dollars to buy the US government debt?

Keep in mind that it is the Fed who creates government debt (out of thin air), debt that the US taxpayer is on the hook, for both the capital but also the interest.
Perfect business model isn’t it? For the Fed that is…courtesy of the US taxpayer.

 

yes but do you hear 50 million people chanting END TO PERPETUAL DEBT SLAVERY

no ??

well until you do, don't bother the FED, let the smart guys in the room laugh at 300 million Americans

and god knows how many more in the western world

 

I mean come on

you really gotta respect the FED and other private central bankers

20 guys are making fool out of 300+ million people

you gotta respect that :eek: :eek: :eek:

 

That profit is not in the same sense as a profit made by a barber.

These are accounting entries. Sure, I can make a profit of 50B if I can print 2T. No problem.

Actually, they made very little for the amount of money printed.

 

All smoke and mirrors of the PRESENTED false reality.......enjoy it for the vacant reality it is worth!

Now on to timmy boy geithner........... http://www.elitetrader.com/vb/showthread.php?s=&threadid=187909

 

My feelings exactly. The profits were on the interest earned, so the Fed is still holding the bonds. If and when the Fed tries to sell them, who's going to buy them? The government is now borrowing $1.5 trillion a year. Plus there is about $1.5 trillion of short term debt that has to be rolled over. Maybe a trillion will be bought by China and other foreigners, and a few hundred billion will be bought by Social Security (if they're still accumulating a surplus). But there'll still be a lot of bonds left for the buyer of last resort -- the Fed.

So -- we borrow without end, the Fed buys the debt with money created out of thin air (I wish *I* could do that) and then hands the interest "profits" back to the Treasury. It's all magic. What could possibly go wrong?

 

From ZERO HEDGE........."The Ultimate Shell Game: The Federal Reserve Funds 91% Of 2009 U.S. Deficit"


http://www.infowars.com/the-ultimate-shell-game-the-federal-reserve-funds-91-of-2009-u-s-deficit/