The legalized counterfeiting gang known as “The Fed” creates money out of thin air with which it buys bonds mostly from the super wealthy investment bankers who in turn finance the careers of the entire Washington establishment of both parties (i.e., Goldman Sachs et al). The Fed “earns” interest on the bonds, gives some back to the U.S. Treasury to help it finance the welfare/warfare state, and KEEPS A HEALTHY SHARE FOR ITSELF. Thus thousands of Fed bureaucrats and consultants earn hefty paychecks, fly around in a fleet of corporate jets, work in palatial offices, owns millions of dollars in real estate, art work, and other perks. Last year is said to have been the most “profitable” year ever for Fed bureaucrats. Interestingly, the news reports about this like the one in the link make no mention of the fact that this is how Fed bureaucrats pay THEMSELVES or how this scam creates a built-in incentive to inflate. (More bond purchases puts more money in circulation, and creates more “profits” for the Fed. Reducing monetary growth means less profits and perks for the Fed).
The word “profit” is also grossly perverted here. Entrepreneurs create real profits by taking resources that are worth x dollars and turning them into products and services that consumers are willing to pay more than x dollars for because the products and services are valued by them. The Fed, on the other hand, only benefits itself, the one-percenters who make billions in the bond market, and the Washington political establishment. The rest of us suffer even more as a result from the increased financing of the endlessly-disastrous welfare and warfare states, endless boom-and-bust cycles caused by the Fed, and price inflation. We are harmed, not benefited at all.
t11:19 am on January 10, 2015 Email Thomas DiLorenzo