8 September 2010
Did you know most of the interest from our national debt is paid to the Federal Reserve?
Posted by admin under: Politics .
http://en.wikipedia.org/wiki/United_States_public_debt
“As is apparent from the chart, a little more than half of the total national debt is owed to the “Federal Reserve and intragovernmental holdings”.”
We pay interest on the money that the Federal Reserve simply created out of thin air and lent it to us. Why do we let them get away with this?
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4 Comments so far...
Boss H Says:
11 September 2010 at 5:51 pm.
You better read that thing again.
Jim Mora Says:
14 September 2010 at 7:03 pm.
I am well aware of this. This is why I support Ron Paul
Pharoah Says:
17 September 2010 at 6:39 pm.
Not only that . . . . but the govt then has to pay them (the FED) interest once more . . . . when they (the govt) print the interest amt to pay the FED (who gave the govt permission to print more (original balance not including interest payment money), money in the first place.
gray shadow Says:
20 September 2010 at 3:11 am.
Nonsense.
First, the math doesn’t add up. Interest on the national debt is in excess of $250B a year. The fed budget is about $3B.
Second, by law, Fed income after expenses is returned to the Treasury.
see TITLE 12 > CHAPTER 3 > SUBCHAPTER VI > § 290
Use of earnings transferred to Treasury
“The net earnings derived by the … Federal reserve banks shall, in the discretion of the Secretary, be used to supplement the gold reserve held against outstanding United States notes, or shall be applied to the reduction of the outstanding bonded indebtedness of the United States under regulations to be prescribed by the Secretary of the Treasury…”
As an example, let’s look at the income statement for the Federal Reserve
Note on page 2 under “Combined Statements of Income” it shows
Interest on U.S. Government Securities: $40B
Payment to U.S. Treasury … $34B
- Re: intraagency debt
Here is a report which breaks down the intraagency debt by agency:
As of September 30, 2008 (in Millions of dollars)
SSA: Federal Old-Age and Survivors Insurance Trust Fund $2,150,651 (i.e. $2.1T)
OPM: Civil Service Retirement and Disability Fund 714,850
HHS: Federal Hospital Insurance Trust Fund 318,741
SSA: Federal Disability Insurance Trust Fund 216,487
DOD: Military Retirement Fund 215,949
DOD: DOD Medicare-Eligible Retiree Health Care Fund 112,726
DOL: Unemployment Trust Fund 72,432
HHS: Federal Supplementary Medical Insurance Trust Fund 59,090
DOE: Nuclear Waste Disposal Fund 42,570
OPM: Employees Life Insurance Fund 34,397
OPM: Postal Service Retiree Health Benefits Fund 32,294
FDIC: The Deposit Insurance Fund 29,937
DOL: Pension Benefit Guaranty Corporation 22,367
HUD: FHA – Liquidating Account 19,085
Treasury: Exchange Stabilization Fund 16,847
OPM: Employees Health Benefits Fund 15,563
DOS: Foreign Service Retirement and Disability Fund 14,855
DOT: Highway Trust Fund 12,811