Are you shocked to learn congress passed the $700 billion "financial rescue package" that pays private bankers est 700 BILLION a year interest?

"Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders."

– The Honorable Louis McFadden, Chairman of the House Banking and Currency Committee in the 1930s

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We the taxpayers will be paying interest to the banks on at least $700 billion annually!!!

Are you shocked to learn congress passed the $700 billion "financial rescue package" that pays private bankers est 700 BILLION a year interst on bank reserves This is a redistribution of wealth or "SPREADING THE WEALTH AROUND" as obama has stated he will do and has done via the "fed" reserve.
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1. The Fed is privately owned.

Its shareholders are private banks. In fact, 100% of its shareholders are private banks. None of its stock is owned by the government.

2. The fact that the Fed does not get "appropriations" from Congress basically means that it gets its money from Congress without congressional approval, by engaging in "open market operations."

Here is how it works: When the government is short of funds, the Treasury issues bonds and delivers them to bond dealers, which auction them off. When the Fed wants to "expand the money supply" (create money), it steps in and buys bonds from these dealers with newly-issued dollars acquired by the Fed for the cost of writing them into an account on a computer screen. These maneuvers are called "open market operations" because the Fed buys the bonds on the "open market" from the bond dealers. The bonds then become the "reserves" that the banking establishment uses to back its loans. In another bit of sleight of hand known as "fractional reserve" lending, the same reserves are lent many times over, further expanding the money supply, generating interest for the banks with each loan. It was this money-creating process that prompted Wright Patman, Chairman of the House Banking and Currency Committee in the 1960s, to call the Federal Reserve "a total money-making machine." He wrote:

"When the Federal Reserve writes a check for a government bond it does exactly what any bank does, it creates money, it created money purely and simply by writing a check."

3. The Fed generates profits for its shareholders.

The interest on bonds acquired with its newly-issued Federal Reserve Notes pays the Fed’s operating expenses plus a guaranteed 6% return to its banker shareholders. A mere 6% a year may not be considered a profit in the world of Wall Street high finance, but most businesses that manage to cover all their expenses and give their shareholders a guaranteed 6% return are considered "for profit" corporations.

In addition to this guaranteed 6%, the banks will now be getting interest from the taxpayers on their "reserves." The basic reserve requirement set by the Federal Reserve is 10%. The website of the Federal Reserve Bank of New York explains that as money is redeposited and relent throughout the banking system, this 10% held in "reserve" can be fanned into ten times that sum in loans; that is, $10,000 in reserves becomes $100,000 in loans.

Federal Reserve Statistical Release H.8 puts the total "loans and leases in bank credit" as of September 24, 2008 at $7,049 billion. Ten percent of that is $700 billion.

That means we the taxpayers will be paying interest to the banks on at least $700 billion annually – this so that the banks can retain the reserves to accumulate interest on ten times that sum in loans.

(The obama and the other scum in congress pushed the so called $700 billion financial rescue package or stimulus package that included the provision to pay banks interst on their reserves. This makes the banks HOLD ONTO THEIR RESERVES because we the people are paying the banks interest to do so. This one of the reasons it is hard to get loans. Its more profitable and convenient to just not loan the money when the banks are already making a killing off the American taxpayer because of the obama democrate SCAM!) Story Reports

The banks earn these returns from the taxpayers for the privilege of having the banks’ interests protected by an all-powerful independent private central bank, even when those interests may be opposed to the taxpayers’ -- for example, when the banks use their special status as private money creators to fund speculative derivative schemes that threaten to collapse the U.S. economy. Among other special benefits, banks and other financial institutions (but not other corporations) can borrow at the low Fed funds rate of about 2%. They can then turn around and put this money into 30-year Treasury bonds at 4.5%, earning an immediate 2.5% from the taxpayers, just by virtue of their position as favored banks. A long list of banks (but not other corporations) is also now protected from the short selling that can crash the price of other stocks.


The Fed is privately owned. Its shareholders are private banks. Americans pay the fed interest on banks reserves est 700 Billion a year because of obama and democarate scam included in "stimulus" bill

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The "Federal" Reserve admits scam on its own website READ THIS!!!!

From the "federal" reserve web site:

The Federal Reserve Banks pay interest on required reserve balances--balances held at Reserve Banks to satisfy reserve requirements--and on excess balances--balances held in excess of required reserve balances and contractual clearing balances. The Board of Governors has prescribed rules governing the payment of interest by Federal Reserve Banks in Regulation D (Reserve Requirements of Depository Institutions, 12 CFR Part 204).

The interest rate paid on required reserve balances is determined by the Board and is intended to eliminate effectively the implicit tax that reserve requirements used to impose on depository institutions. The interest rate paid on excess balances is also determined by the Board and gives the Federal Reserve an additional tool for the conduct of monetary policy.

The Board will continue to evaluate the appropriate settings of the rates paid on balances in light of evolving market conditions and make adjustments as needed.

The interest rates to be paid on required reserve balances and excess balances are posted to this website generally on the last Wednesday of the reserve maintenance period at 4:30 p.m.

(Are you shocked to learn Americans are paying private banks interest not to loan money? Are you shocked to learn the interest is est at 700 billion a year? Are you shocked to learn congress passed the $700 billion "financial rescue package" that pays private bankers est 700 BILLION a year on just the reserves banks hold?) Story Reports

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"The Treasury Department, for the first time in its history, said it would begin selling bonds for the Federal Reserve in an effort to help the central bank deal with its unprecedented borrowing needs.

This is extraordinary. Why is the Treasury issuing U.S. government bonds (or debt) to fund the Fed, which is itself supposedly "the lender of last resort" created to fund the banks and the federal government? Yahoo Finance reported on September 17:

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"The Term Securities Lending Facility is a 28-day facility that will offer Treasury general collateral to the Federal Reserve Bank of New York’s primary dealers in exchange for other program-eligible collateral. It is intended to promote liquidity in the financing markets for Treasury and other collateral and thus to foster the functioning of financial markets more generally. . . . The resource allows dealers to switch debt that is less liquid for U.S. government securities that are easily tradable."

"To switch debt that is less liquid for U.S. government securities that are easily tradable" means that the government gets the banks’ toxic derivative debt, and the banks get the government’s triple-A securities. Unlike the risky derivative debt, federal securities are considered "risk-free" for purposes of determining capital requirements, allowing the banks to improve their capital position so they can make new loans.
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In its latest power play, on October 3, 2008, the Fed acquired the ability to pay interest to its member banks on the reserves the banks maintain at the Fed. Reuters reported on October 3:

"The U.S. Federal Reserve gained a key tactical tool from the $700 billion financial rescue package signed into law on Friday that will help it channel funds into parched credit markets. Tucked into the 451-page bill is a provision that lets the Fed pay interest on the reserves banks are required to hold at the central bank."

If the Fed’s money comes ultimately from the taxpayers, that means we the taxpayers are paying interest to the banks on the banks’ own reserves – reserves maintained for their own private profit.

(Did ya get that the "fed" reserve is running a scam on the American people because of the the $700 billion financial rescue package signed into law and rammed through congress?) Story Reports

The Fed reserve scam via the obama "stimulus" redistribution of wealth scam

(The GREEDY BASTARDS IN CONGRESS have scammed the American people using a REDISTRIBUTION OF WEALTH SCHEME CALLED THE "FINANCIAL RESCUE PACKAGE".

THE GREEDY BASTARDS IN CONGRESS have led you to believe it was greedy banks and wall st that scammed the American people.

In fact THE GREEDY BASTARDS IN CONGRESS made it possible for SOME GREEDY BASTARDS in banks and wall st to scam the American TAXPAYER!!!!

Capitalism had nothing to do with the obama scam.)

Story Reports

Capitalism is a social system based on the recognition of individual rights.

What is capitalism?

Capitalism is a social system based on the recognition of individual rights, including property rights, in which all property is privately owned. Under capitalism the state is separated from economics (production and trade), just like the state is separated from religion. Capitalism is the system of of laissez faire. It is the system of political freedom.

What is a capitalist?

An advocate of laissez-faire is known as a capitalist, e.g., novelist Ayn Rand is a capitalist; e.g., though economically Engels came from a wealthy background, politically he is recognized as a socialist/communist because of his ideas; e.g., billionaire George Soros is not a capitalist as he does not advocate capitalism, but he advocates some form of a mixed economy statism. Soros like Ted Turner is a "socialist at heart."

Capitalism is a social system based on the principle of individual rights.

The radio program money talks never mentions the est 700 billion interest the American taxpayer is paying private banks on their reserves.

The first and biggest change to save taxpayer money should be to repeal the interest paid to private banks on their reserves.

Bob Brinker never mentions this. He talks about cutting entitlement programs and how Americans will not allow this.

Bob Brinker the host of money talks is also a FRAUD!