Reply #161: Dude...

[SDuderstadt]

Are you claiming the regional Reserve Banks make huge profit? That is not remotely true and I challenge you to show me any evidence otherwise. By law, the member banks receive a 6% return on their subscription stock, but that's only fair because that represents capital they would have otherwise invested. In addition, it offsets fees that they pay to the Federal Reserve. Note that. The reality is that the member banks pay far more into the system than they receive from it. More importantly, the regional Federal Reserve Banks are part of the Federal Reserve system and, as such, their earnings are all pooled together and minus operating costs, are rebated back to the U.S. Treasury, which anyone can see by looking at the Federal Reserve financial statements.

As far as your claims about the Fed's impact upon recessions/depressions, maybe you should look at the frequent bank runs and other panics prior to the creation of the Federal Reserve. I don't know if you are a Ron Paul devotee, but you are badly misinforming people here.