PROOF: Only 20% of the FEDs income returns to the US Treasury! 2 TRILLION Unaccounted for.

[MikeWB]

Only 20% of the FEDs income returns to the US Treasury.
Share:     by djangofan | February 16, 2009 at 04:33 pm
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I was listening to an AM radio talk show the other day and a guy phoned in and asked the host if he knew whether or not the Federal Reserve banks paid taxes on their profits.  The talk show host didn't know, even with the help of a Oregon US representative on the phone.

I became very curious.  There is 50+ Trillion dollars of monetized debt in our US economic system. At a 5% interest rate (which I will use in my argument as the average rate of interest that FED banks charge to their customers) that would account for around 2.5  trillion of interest income on issued debt.  That is a conservative number because you still need to add T-Bill interest profits, subtract the insignificant 6% divendend income that federal reserve shareholders receive, and then add extra profits that FED banks earn from transaction fees.

Off the top of my head, according to the 2008 US Treasury balance sheet, located on page 5 at http://www.fms.treas.gov/mts/mts1108.pdf , the Government only received about 500 billion in excess interest profits from the treasury in 2008. So, where did the other 2 Trillion of interest go? Should we believe that the banking system requires 2 trillion in operating expenses each year?

With the Federal Reserve banking system having more than 2.5 Trillion a year in profit, how is it even possible that there could be a single bank failure?  It doesn't seem possible when we know that they are swimming in 2.5 trillion of profits on interest.  It would seem that a not-for-profit corporation such as the Federal Reserve system could easily pay off their liabilities before the excess profits go back to the government.   Not so in this case because evidently the tradition is to take additional bailout funds from the government after they pocket the remaining 80% of their interest income.   You can't tell me that 2 trillion dollars goes to operating expenses!  That would be enough to give 40 MILLION americans a $50,000 a year job!

Can anyone explain this. Its fine if you want to trust the Federal Reserves "word" that the entirety of its profits go back to the Treasury but its obvious they are pocketing FAR more than their good share of the profits.    Yes, this is a socialist idea I have here but it is clear from reading the consitution that the founding fathers MEANT for the monetary system to be in the "hands of the people" first and foremost and then profits to the people should be secondary to that.  In this case the people have no say at all.

[mobes]

Can anyone explain this. Its fine if you want to trust the Federal Reserves "word" that the entirety of its profits go back to the Treasury but its obvious they are pocketing FAR more than their good share of the profits. Yes, this is a socialist idea I have here but it is clear from reading the consitution that the founding fathers MEANT for the monetary system to be in the "hands of the people" first and foremost and then profits to the people should be secondary to that. In this case the people have no say at all.

Here's my 2 cents. To understand why the Fed doesn't get taxed, you need to look at two words: INCOME and REVENUE.

According to Blacks Law Dictionary:

INCOME - The return of money from one's business, labour, or capital invested; gains, profit or private revenue.
"Income" means that which comes in or is received from any business or investment of capital, without reference to the outgoing expenditures; while "profits" generally means the gain which is made upon any business or investment when both receipts and payments are taken into account.
"Income" when applied to the affairs of individuals expresses the same idea that "revenue" does when applied to the affairs of a state or a nation.

REVENUE - As applied to the income of a government, this is a broad and general term, including all public moneys which the state collects and receives, from whatever source in whatever manner.
Revenue Law: Any law which provides for the assessment and collection of a tax to defray the expenses of the government is a revenue law. Such legislation is commonly referred to as "revenue measures", and those measures include all the laws by which the government provides a means of meeting its expenditures.

The fed's power to create money is untaxable. The fed's profits are untaxable. Here's why:

1. The Fed does not disclose it's expenses
2. The Fed does not properly disclose its money supply growth / its balance sheet
3. The Fed does not disclose its revenue or income
4. The Fed (and it's member banks) create all money in circulation (in the US)

Also, what we know as 'United States' is really a corporation. So is the Federal Reserve. How can one corporation tax another? It cannot. Plain and simple.