Quote:
Originally Posted by sortie
Ok, so how does the Fed Reserve stay in business without collecting any profit?
Banks make money on loans.
If you want to loan some money to make some money would it be a good idea to just
print as much money as you want to loan and then loan it with interest?
It's kind of like a "no brainer" to print money and then loan it out.
So, I don't know how the Fed Res actually works but the above scenario makes
sense to anyone trying to get rich.
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They operate on a very limited for profit bases and the stock is special and has restrictions in place.
The FED uses the interest rate to control money flow not to increase profit. I forget the exact numbers but I think 99.X amount of capitol acquired throgh FED rate is given back to the US treasury with the remainer budgeting the FED and paying dividend to charter banks who hold stock.
Therefore, the capitol collected through FED rate does not merit conspiracy theories based upon it.
However, one can argue that the FED can and has manipulated money flow in collusion with special interest groups but those theories for the most part aren't all that sound.