Gold – the final bubble, page-4134

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chaz38

727 Posts.

27/08/15

09:18

Post #: 15883512
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Originally posted by timber1956 ↑

Danhoff

"if all the money the FED gifted banksters was paid back, then why does the FED have many extra trillions on its balance sheet as of right now."?

QE money wasn't "gifted" to the banks. When banks sold bonds to the Fed under the various QE programs, the Fed took the bonds and the coupon income from the bonds.

And here is the beautiful part.

The banks then lent the money paid to them by the Fed for the bonds, back to the Fed in the form of reserve deposits. These reserve deposits earn the banks the princely sum of 0.25% per annum. My estimate is that the difference between the income on the bonds and the interest bill paid on the reserve deposits has generated the Fed over $400 billion dollars since 2009.

So you see, it was really the Fed who received the "gift".

For the details:
http://www.federalreserve.gov/releases/h41/

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Gees Timber, you still don't get it. They have paid back by printing more paper money. If you have nothing to back up your money with what is its worth? Toilet roll cost more than any denomination of the us currency. There is more US currency floating around that toilet paper in this world.
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Gold – the final bubble, page-4134

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