What the F Obama , He wants to raise the debt ceiling again

[bigrebnc1775]

Oh is the Treasury the only organisation in the government, is it?

The Fed is established in the Federal Reserve Act (1913)

So far we've established that the Fed is run by people appointed by the President and confirmed by the senate (from your own source); was created by congress and delegated the job of administering the currency (Federal Reserve Act); does not loan money to the government (FRA Sections 13 and 14); gives almost all of its income back to the Treasury (Federal Reserve Annual Report 2010).

What on earth is your problem?

What's your god damn problem? The fed is not part of the U.S. government.

Who even cares about the fucking wording. Jesus. They're not run by private banks, they're run by people appointed by the government. Your own source says so. What are you struggling with?

Where is the Federal reserve at? The IRS is in this link at list and it's just a bureau

Bureaus

 

[DSGE]

You seem to think they did. So tell me how did the transaction take place? Give me the total account step by step procedure with a supporting source.

Here you go: FRB: Reports to Congress

Nope, how did the transaction take place.

The Fed took their profits and deposited it in the US Treasury's account.

 

[Toddsterpatriot]

What's your god damn problem? The fed is not part of the U.S. government.

Then why did they give the Treasury $78.4 billion last year?

You seem to think they did. So tell me how did the transaction take place? Give me the total account step by step procedure with a supporting source.

In 2010 the Federal Reserve System transferred most of its net income to the U.S. Treasury. The 2010 transfer totaled $78.4 billion. This amount represents a $31 billion increase over 2009's results, primarily the result of increased earnings on securities holdings during 2010.

Securities interest, commercial services generate income
The significant increase in earnings on securities came about because of the increased securities holdings that the Federal Reserve purchased in response to the severe economic downturn. The following list shows the breakdown of the Federal Reserve Banks' 2010 net earnings:
•$76.2 billion in earnings on securities acquired through open market operations (U.S. Treasury securities, government-sponsored enterprise [GSE] debt securities, and federal agency and GSE mortgage-backed securities)
•$7.1 billion in net earnings from consolidated limited liability companies, which were created in response to the financial crisis
•$2.1 billion in interest income from credit extended to American International Group Inc.
•$1.3 billion of dividends on preferred interests in AIA Aurora LLC and ALICO Holdings LLC
•$0.8 billion in earnings on loans extended under the Term Asset-Backed Securities Loan Facility (TALF) and loans to depository institutions

The Reserve Banks had interest expenses of $2.7 billion on depository institutions' reserve balances and term deposits.

The income that the Reserve Banks generated through fees for providing services such as payments processing for depository institutions contributed an additional $600 million.

Tallying up
The operating expenses of the 12 Reserve Banks totaled $4.3 billion in 2010, including the expenses of the Board of Governors and the cost of currency, were $1 billion collectively.

Federal Reserve Board policy directs each Reserve Bank to transfer its yearly net income to the U.S. Treasury after paying statutory dividends ($1.6 billion in 2010) to Federal Reserve member banks and making adjustments necessary so that surplus equals paid-in capital ($0.6 billion in 2010).

January 25, 2011

Financial Update - Volume 24, Number 1 - Reserve Banks Return $78 Billion to U.S. Treasury

 

[DSGE]

What's your god damn problem? The fed is not part of the U.S. government.

Who even cares about the fucking wording. Jesus. They're not run by private banks, they're run by people appointed by the government. Your own source says so. What are you struggling with?

Where is the Federal reserve at? The IRS is in this link at list and it's just a bureau

Bureaus

The Fed isn't part of the Treasury! It's its own government agency established here: FRB: Federal Reserve Act

 

[bigrebnc1775]

Firstly, the Federal Reserve is part of the government. It's board of governors are appointed by the President and confirmed by the senate.

Second, if the government wants to borrow money, it sells treasuries to the public. The Federal Reserve is not allowed to extend credit to the US Government.

FRB: Federal Reserve Act: Section 13
FRB: Federal Reserve Act. Section 14

Those are the sections of the Federal Reserve Act outlining the powers the Fed has to buy and discount securities. They can only discount (give a loan using a security as collateral) to member banks, but in "unusual and exigent circumstances" may discount to individuals and non-banks subject to a bunch of shit. They can buy treasury securities in open market operations but they're only allowed to buy them in the open market (hence open market operations). They can't buy bonds directly from the government. Nor does the government care, because the treasury market is the deepest and most liquid in the world. Everybody wants to buy treasuries.

Yes it says "Federal Reserve Note" because it's a liability of the Federal Reserve. It's actually the Bureau of Engraving and Printing (Treasury) that actually prints the money, but the Fed has control over the supply of money.

So yeah, the government borrows from the public, not the Fed. The Fed engages in open market operations and gives the interest it earns to the government. I've given you more than sufficient evidence.

Maybe you should tell Bernanke that the fed is run by the government he seems to think it isn't.

I said it's part of the government. The FOMC decides monetary policy, because everybody realised that when the executive decides monetary policy they often run high inflation to pursue short term goals rather than long term goals; but Bernanke was appointed by the President and confirmed by the senate. Private banks didn't choose him to run the Fed; the government did.

I'm sure you read this once before.
Q: Who owns the Federal Reserve Bank?

A: There are actually 12 different Federal Reserve Banks around the country, and they are owned by big private banks

FactCheck.org : Federal Reserve Bank Ownership

 

[DSGE]

Maybe you should tell Bernanke that the fed is run by the government he seems to think it isn't.

I said it's part of the government. The FOMC decides monetary policy, because everybody realised that when the executive decides monetary policy they often run high inflation to pursue short term goals rather than long term goals; but Bernanke was appointed by the President and confirmed by the senate. Private banks didn't choose him to run the Fed; the government did.

I'm sure you read this once before.
Q: Who owns the Federal Reserve Bank?

A: There are actually 12 different Federal Reserve Banks around the country, and they are owned by big private banks

FactCheck.org : Federal Reserve Bank Ownership

Don't just stop at the misleading headline! Jesus christ. Have not listened to a single fucking thing anybody has said? Read the rest of the article. It makes clear that "ownership" doesn't mean anything here. "Big Banks" are obliged to buy equity. This is also irrelevant, because as you own fucking article says the Board of Governors form a voting majority and are appointed by the President.

 

[bigrebnc1775]

Then why did they give the Treasury $78.4 billion last year?

You seem to think they did. So tell me how did the transaction take place? Give me the total account step by step procedure with a supporting source.

In 2010 the Federal Reserve System transferred most of its net income to the U.S. Treasury. The 2010 transfer totaled $78.4 billion. This amount represents a $31 billion increase over 2009's results, primarily the result of increased earnings on securities holdings during 2010.

Securities interest, commercial services generate income
The significant increase in earnings on securities came about because of the increased securities holdings that the Federal Reserve purchased in response to the severe economic downturn. The following list shows the breakdown of the Federal Reserve Banks' 2010 net earnings:
•$76.2 billion in earnings on securities acquired through open market operations (U.S. Treasury securities, government-sponsored enterprise [GSE] debt securities, and federal agency and GSE mortgage-backed securities)
•$7.1 billion in net earnings from consolidated limited liability companies, which were created in response to the financial crisis
•$2.1 billion in interest income from credit extended to American International Group Inc.
•$1.3 billion of dividends on preferred interests in AIA Aurora LLC and ALICO Holdings LLC
•$0.8 billion in earnings on loans extended under the Term Asset-Backed Securities Loan Facility (TALF) and loans to depository institutions

The Reserve Banks had interest expenses of $2.7 billion on depository institutions' reserve balances and term deposits.

The income that the Reserve Banks generated through fees for providing services such as payments processing for depository institutions contributed an additional $600 million.

Tallying up
The operating expenses of the 12 Reserve Banks totaled $4.3 billion in 2010, including the expenses of the Board of Governors and the cost of currency, were $1 billion collectively.

Federal Reserve Board policy directs each Reserve Bank to transfer its yearly net income to the U.S. Treasury after paying statutory dividends ($1.6 billion in 2010) to Federal Reserve member banks and making adjustments necessary so that surplus equals paid-in capital ($0.6 billion in 2010).

January 25, 2011

Financial Update - Volume 24, Number 1 - Reserve Banks Return $78 Billion to U.S. Treasury

I thought you said the government doesn't pay the federal reserve anything?

the U.S. Treasury after paying statutory dividends ($1.6 billion in 2010) to Federal Reserve member banks and making adjustments necessary so that surplus equals paid-in capital ($0.6 billion in 2010).

 

[bigrebnc1775]

I said it's part of the government. The FOMC decides monetary policy, because everybody realised that when the executive decides monetary policy they often run high inflation to pursue short term goals rather than long term goals; but Bernanke was appointed by the President and confirmed by the senate. Private banks didn't choose him to run the Fed; the government did.

I'm sure you read this once before.
Q: Who owns the Federal Reserve Bank?

A: There are actually 12 different Federal Reserve Banks around the country, and they are owned by big private banks

FactCheck.org : Federal Reserve Bank Ownership

Don't just stop at the misleading headline! Jesus christ. Have not listened to a single fucking thing anybody has said? Read the rest of the article. It makes clear that "ownership" doesn't mean anything here. "Big Banks" are obliged to buy equity. This is also irrelevant, because as you own fucking article says the Board of Governors form a voting majority and are appointed by the President.

oh so FACT CHECK is misleading now?

 

[DSGE]

You seem to think they did. So tell me how did the transaction take place? Give me the total account step by step procedure with a supporting source.

In 2010 the Federal Reserve System transferred most of its net income to the U.S. Treasury. The 2010 transfer totaled $78.4 billion. This amount represents a $31 billion increase over 2009's results, primarily the result of increased earnings on securities holdings during 2010.

Securities interest, commercial services generate income
The significant increase in earnings on securities came about because of the increased securities holdings that the Federal Reserve purchased in response to the severe economic downturn. The following list shows the breakdown of the Federal Reserve Banks' 2010 net earnings:
•$76.2 billion in earnings on securities acquired through open market operations (U.S. Treasury securities, government-sponsored enterprise [GSE] debt securities, and federal agency and GSE mortgage-backed securities)
•$7.1 billion in net earnings from consolidated limited liability companies, which were created in response to the financial crisis
•$2.1 billion in interest income from credit extended to American International Group Inc.
•$1.3 billion of dividends on preferred interests in AIA Aurora LLC and ALICO Holdings LLC
•$0.8 billion in earnings on loans extended under the Term Asset-Backed Securities Loan Facility (TALF) and loans to depository institutions

The Reserve Banks had interest expenses of $2.7 billion on depository institutions' reserve balances and term deposits.

The income that the Reserve Banks generated through fees for providing services such as payments processing for depository institutions contributed an additional $600 million.

Tallying up
The operating expenses of the 12 Reserve Banks totaled $4.3 billion in 2010, including the expenses of the Board of Governors and the cost of currency, were $1 billion collectively.

Federal Reserve Board policy directs each Reserve Bank to transfer its yearly net income to the U.S. Treasury after paying statutory dividends ($1.6 billion in 2010) to Federal Reserve member banks and making adjustments necessary so that surplus equals paid-in capital ($0.6 billion in 2010).

January 25, 2011

Financial Update - Volume 24, Number 1 - Reserve Banks Return $78 Billion to U.S. Treasury

I thought you said the government doesn't pay the federal reserve anything?

the U.S. Treasury after paying statutory dividends ($1.6 billion in 2010) to Federal Reserve member banks and making adjustments necessary so that surplus equals paid-in capital ($0.6 billion in 2010).

Yeah ok. So it's just that you can't read:

Federal Reserve Board policy directs each Reserve Bank to transfer its yearly net income to the U.S. Treasury after paying statutory dividends ($1.6 billion in 2010) to Federal Reserve member banks and making adjustments necessary so that surplus equals paid-in capital ($0.6 billion in 2010).

Means that after the Fed has payed out dividends, it gives whatever is left over to the Treasury.

 

[DSGE]

I'm sure you read this once before.
Q: Who owns the Federal Reserve Bank?

A: There are actually 12 different Federal Reserve Banks around the country, and they are owned by big private banks

FactCheck.org : Federal Reserve Bank Ownership

Don't just stop at the misleading headline! Jesus christ. Have not listened to a single fucking thing anybody has said? Read the rest of the article. It makes clear that "ownership" doesn't mean anything here. "Big Banks" are obliged to buy equity. This is also irrelevant, because as you own fucking article says the Board of Governors form a voting majority and are appointed by the President.

oh so FACT CHECK is misleading now?

It admits its phrasing is misleading because it has to clarify what is meant by "ownership". This is entirely beside the point. Here is the point, which I will spell out clearly for you:

Your own source says that the Fed is controlled by the Board of Governors who are appointed by the President.

 

[bigrebnc1775]

Don't just stop at the misleading headline! Jesus christ. Have not listened to a single fucking thing anybody has said? Read the rest of the article. It makes clear that "ownership" doesn't mean anything here. "Big Banks" are obliged to buy equity. This is also irrelevant, because as you own fucking article says the Board of Governors form a voting majority and are appointed by the President.

oh so FACT CHECK is misleading now?

It admits its phrasing is misleading because it has to clarify what is meant by "ownership". This is entirely beside the point. Here is the point, which I will spell out clearly for you:

Your own source says that the Fed is controlled by the Board of Governors who are appointed by the President.

It also said that it's owned by big private banks or did you miss that part?

 

[bigrebnc1775]

In 2010 the Federal Reserve System transferred most of its net income to the U.S. Treasury. The 2010 transfer totaled $78.4 billion. This amount represents a $31 billion increase over 2009's results, primarily the result of increased earnings on securities holdings during 2010.

Securities interest, commercial services generate income
The significant increase in earnings on securities came about because of the increased securities holdings that the Federal Reserve purchased in response to the severe economic downturn. The following list shows the breakdown of the Federal Reserve Banks' 2010 net earnings:
•$76.2 billion in earnings on securities acquired through open market operations (U.S. Treasury securities, government-sponsored enterprise [GSE] debt securities, and federal agency and GSE mortgage-backed securities)
•$7.1 billion in net earnings from consolidated limited liability companies, which were created in response to the financial crisis
•$2.1 billion in interest income from credit extended to American International Group Inc.
•$1.3 billion of dividends on preferred interests in AIA Aurora LLC and ALICO Holdings LLC
•$0.8 billion in earnings on loans extended under the Term Asset-Backed Securities Loan Facility (TALF) and loans to depository institutions

The Reserve Banks had interest expenses of $2.7 billion on depository institutions' reserve balances and term deposits.

The income that the Reserve Banks generated through fees for providing services such as payments processing for depository institutions contributed an additional $600 million.

Tallying up
The operating expenses of the 12 Reserve Banks totaled $4.3 billion in 2010, including the expenses of the Board of Governors and the cost of currency, were $1 billion collectively.

Federal Reserve Board policy directs each Reserve Bank to transfer its yearly net income to the U.S. Treasury after paying statutory dividends ($1.6 billion in 2010) to Federal Reserve member banks and making adjustments necessary so that surplus equals paid-in capital ($0.6 billion in 2010).

January 25, 2011

Financial Update - Volume 24, Number 1 - Reserve Banks Return $78 Billion to U.S. Treasury

I thought you said the government doesn't pay the federal reserve anything?

Yeah ok. So it's just that you can't read:

Federal Reserve Board policy directs each Reserve Bank to transfer its yearly net income to the U.S. Treasury after paying statutory dividends ($1.6 billion in 2010) to Federal Reserve member banks and making adjustments necessary so that surplus equals paid-in capital ($0.6 billion in 2010).

Means that after the Fed has payed out dividends, it gives whatever is left over to the Treasury.

I can read but it seems you can't. Do all fucked in the head liberals have the same comprehension problem?

 

[DSGE]

oh so FACT CHECK is misleading now?

It admits its phrasing is misleading because it has to clarify what is meant by "ownership". This is entirely beside the point. Here is the point, which I will spell out clearly for you:

Your own source says that the Fed is controlled by the Board of Governors who are appointed by the President.

It also said that it's owned by big private banks or did you miss that part?

What do you think that means? Explain to me why you think that's relevant given that decisions it makes are made by a board appointed by the President.

 

[bigrebnc1775]

It admits its phrasing is misleading because it has to clarify what is meant by "ownership". This is entirely beside the point. Here is the point, which I will spell out clearly for you:

Your own source says that the Fed is controlled by the Board of Governors who are appointed by the President.

It also said that it's owned by big private banks or did you miss that part?

What do you think that means? Explain to me why you think that's relevant given that decisions it makes are made by a board appointed by the President.

You tell me.

 

[DSGE]

I thought you said the government doesn't pay the federal reserve anything?

Yeah ok. So it's just that you can't read:

Federal Reserve Board policy directs each Reserve Bank to transfer its yearly net income to the U.S. Treasury after paying statutory dividends ($1.6 billion in 2010) to Federal Reserve member banks and making adjustments necessary so that surplus equals paid-in capital ($0.6 billion in 2010).

Means that after the Fed has payed out dividends, it gives whatever is left over to the Treasury.

I can read but it seems you can't. Do all fucked in the head liberals have the same comprehension problem?

Obviously you can't. "Federal Reserve Board" is the subject of the sentence. "Federal Reserve Board... to transfer its income to the US Treasure after paying statutory dividends". After the Fed has payed the dividends its obliged to by the Federal Reserve Act, it then gives the remainder to the Treasury.

Since your literacy isn't up to par, here's another source explaining it more clearly:
FRB: Federal Reserve Act: Section 7

After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders of the bank shall be entitled to receive an annual dividend of 6 percent on paid-in capital stock.

That portion of net earnings of each Federal reserve bank which remains after dividend claims under subparagraph (1)(A) have been fully met shall be deposited in the surplus fund of the bank.

The Federal reserve banks shall transfer from the surplus funds of such banks to the Board of Governors of the Federal Reserve System for transfer to the Secretary of the Treasury for deposit in the general fund of the Treasury

 

[DSGE]

It also said that it's owned by big private banks or did you miss that part?

What do you think that means? Explain to me why you think that's relevant given that decisions it makes are made by a board appointed by the President.

You tell me.

I have to tell you why you think it's relevant?

 

[Toddsterpatriot]

You seem to think they did. So tell me how did the transaction take place? Give me the total account step by step procedure with a supporting source.

In 2010 the Federal Reserve System transferred most of its net income to the U.S. Treasury. The 2010 transfer totaled $78.4 billion. This amount represents a $31 billion increase over 2009's results, primarily the result of increased earnings on securities holdings during 2010.

Securities interest, commercial services generate income
The significant increase in earnings on securities came about because of the increased securities holdings that the Federal Reserve purchased in response to the severe economic downturn. The following list shows the breakdown of the Federal Reserve Banks' 2010 net earnings:
•$76.2 billion in earnings on securities acquired through open market operations (U.S. Treasury securities, government-sponsored enterprise [GSE] debt securities, and federal agency and GSE mortgage-backed securities)
•$7.1 billion in net earnings from consolidated limited liability companies, which were created in response to the financial crisis
•$2.1 billion in interest income from credit extended to American International Group Inc.
•$1.3 billion of dividends on preferred interests in AIA Aurora LLC and ALICO Holdings LLC
•$0.8 billion in earnings on loans extended under the Term Asset-Backed Securities Loan Facility (TALF) and loans to depository institutions

The Reserve Banks had interest expenses of $2.7 billion on depository institutions' reserve balances and term deposits.

The income that the Reserve Banks generated through fees for providing services such as payments processing for depository institutions contributed an additional $600 million.

Tallying up
The operating expenses of the 12 Reserve Banks totaled $4.3 billion in 2010, including the expenses of the Board of Governors and the cost of currency, were $1 billion collectively.

Federal Reserve Board policy directs each Reserve Bank to transfer its yearly net income to the U.S. Treasury after paying statutory dividends ($1.6 billion in 2010) to Federal Reserve member banks and making adjustments necessary so that surplus equals paid-in capital ($0.6 billion in 2010).

January 25, 2011

Financial Update - Volume 24, Number 1 - Reserve Banks Return $78 Billion to U.S. Treasury

I thought you said the government doesn't pay the federal reserve anything?

the U.S. Treasury after paying statutory dividends ($1.6 billion in 2010) to Federal Reserve member banks and making adjustments necessary so that surplus equals paid-in capital ($0.6 billion in 2010).

Damn. The Federal Reserve is paying the dividends. Try reading the words right after one another. Maybe if you read them without moving your lips it would make more sense. Try this...

Federal Reserve Board policy directs each Reserve Bank to transfer its yearly net income to the U.S. Treasury

Make sense now?

Now why is the Fed giving money to the Treasury?

 

[bigrebnc1775]

Yeah ok. So it's just that you can't read:



Means that after the Fed has payed out dividends, it gives whatever is left over to the Treasury.

I can read but it seems you can't. Do all fucked in the head liberals have the same comprehension problem?

Obviously you can't. "Federal Reserve Board" is the subject of the sentence. "Federal Reserve Board... to transfer its income to the US Treasure after paying statutory dividends". After the Fed has payed the dividends its obliged to by the Federal Reserve Act, it then gives the remainder to the Treasury.

Since your literacy isn't up to par, here's another source explaining it more clearly:
FRB: Federal Reserve Act: Section 7

After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders of the bank shall be entitled to receive an annual dividend of 6 percent on paid-in capital stock.

That portion of net earnings of each Federal reserve bank which remains after dividend claims under subparagraph (1)(A) have been fully met shall be deposited in the surplus fund of the bank.

The Federal reserve banks shall transfer from the surplus funds of such banks to the Board of Governors of the Federal Reserve System for transfer to the Secretary of the Treasury for deposit in the general fund of the Treasury

The New York Fed is the most important Fed bank. As Bloomberg pointed out in 2009:

The New York Fed is one of 12 regional Federal Reserve banks and the one charged with monitoring capital markets. It is also managing $1.7 trillion [now up to at least $1.9 trillion] of emergency lending programs [and accepting collateral from the banks in return].

However, the country's most powerful "agency" - the Federal Reserve - is actually no more federal than Federal Express. The Fed itself admitted (via Bloomberg):
While the Fed’s Washington-based Board of Governors is a federal agency subject to the Freedom of Information Act and other government rules, the New York Fed and other regional banks maintain they are separate institutions, owned by their member banks, and not subject to federal restrictions.

[ame=http://www.youtube.com/watch?v=u2KBpqiORkU]The Truth About the Federal Reserve - YouTube[/ame]

The Federal Reserve ADMITS that Its 12 Banks Are PRIVATE - Not Government - Entities → Washingtons Blog

Since your literacy isn't up to par, here's another source explaining it more clearly

Wishful thinking doesn't make it so.

 

[Care4all]

He is asking for enough to result in our debt jumping from 15 to 16 trillion in debt.

The man is utterly clueless. This request will if granted be used to BUY VOTES

really? what should he do? what can he do but to ask for it to be raised to pay for what CONGRESS HAS SPENT already?

do you want to make the stock market tumble again, by doing what the gop did the last time on this?

 

[samjones]

He is asking for enough to result in our debt jumping from 15 to 16 trillion in debt.

The man is utterly clueless. This request will if granted be used to BUY VOTES

really? what should he do? what can he do but to ask for it to be raised to pay for what CONGRESS HAS SPENT already?

do you want to make the stock market tumble again, by doing what the gop did the last time on this?

And our credit rating drop so we not only have to borrow the extra trillion, but we have to do so on less favorable terms.

Whatever your political leanings, it cannot be denied that congress cannot agree on a revenue/spending plan that results in a break-even or net-gain budget, therefore, we'll have borrow.

Don't worry Pubs - the borrowed money will go straight to the military.