Happy 100th birthday Federal Reserve

[Kasz216]

hysterianut said:

Kasz216 said:

If by interest you mean the profit the Fed Makes...  It  almost all completely goes to the US Treasury and is used to pay for the US' deficit spending and pay down the national debt.

wrong,as the only money created is the principal so there is no way to pay back the debt as the money for the interest doesn't not exist.if this was then the US debt would not be going up but down.

tresury gets money from taxes and from selling bonds.

http://www.usatoday.com/story/money/business/2013/01/10/federal-reserve-payment/1823235/

 

The national debt is going up because they treasury and government is spending money faster then the fed is paying them.

 

In the same way that I am reducing my wifes debt if i pay on her credit cards, but she keeps taking out loans.