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Banks Squirm As Congress Moves To Cut The 6% Dividend Paid To Them By The Fed

Tyler Durden's picture




 

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

On December 23 of this year, the Federal Reserve will be 99 years old.  And throughout that 99 years, regardless of boom, bust, recession or Great Depression, the biggest Wall Street banks have been enjoying a 6 percent, risk-free return on the capital they hold at the Fed in the form of dividends.

 

Have you looked at your checking or money market bank statement lately from JPMorgan Chase or Citibank? How about the statement showing the interest you’re earning on your mortgage escrow account with the big banks? While the country suffers through the lingering effects of the Great Recession caused by the biggest Wall Street banks, the public typically receives less than 1 percent on their deposits at the big banks, while the government has legislated a permanent, risk-free 6 percent guarantee to the Wall Street banks for their capital on deposit at the Fed.  Now that’s an entitlement program that needs to die!

 

This corporate welfare program gets even better: if the shares of stock were acquired prior to March 28, 1942, the 6 percent risk-free dividend is tax exempt and the bank doesn’t have to pay corporate taxes on it.

 

– From the excellent 2012 Wall Street on Parade article: Kill This Entitlement Program: The 6% Risk-Free Dividend the Fed Has Been Paying Wall Street Banks For Almost a Century

Did you know that the Federal Reserve pays an annual 6% dividend to its shareholders, i.e., the member banks of the cartel? Must be nice, considering savers who had nothing to do with cratering the world economy, and failed to receive a taxpayer funded bailout, can barely earn 0.5% on their money. It’s also quite bizarre. How many other “public institutions” have private shareholders to whom they pay 6% risk free dividends?

None, which once again highlights the point that the Federal Reserve is NOT a public institution working on behalf of the citizenry, but is rather a banking cartel designed to enriched and protect its member banks (as we saw on clear display in 2008).

It appears that some members of Congress are now targeting the estimated $17 billion per year paid out by the Fed to its member banks via the highway-funding bill. The Hill reports that:

The banking industry is scrambling to kill a provision in the Senate highway-funding bill that would reap billions of dollars in revenue by cutting a century-old system that has reaped annual awards for banks.

 

Industry lobbyists say they were blindsided by the inclusion of the provision, which would help policymakers cover the bill’s cost by cutting the regular dividend the Federal Reserve pays to its member banks.

 

One lobbyist went so far as to reread the Federal Reserve Act of 1913 after getting wind of the proposal to determine what was at stake.

 

In a Congress where lawmakers are always hunting for politically palatable ways to raise revenue or cut costs to cover the expenses of additional legislation, the Fed provision was a novel, and rich, one. The proposal is estimated to raise $17 billion over the next decade, and is by far the richest “pay for” included in the bill.

 

Lobbyists said they were not aware of any previous time when lawmakers had attached the language to a piece of legislation, which would scrap a perk banks have come to expect for over a century.

 

When banks join the Federal Reserve system, they are required to buy stock in the central bank equal to 6 percent of their assets. However, that stock does not gain value and cannot be traded or sold, so to entice banks to participate, the Fed pays out a 6 percent dividend payment.

 

The Senate proposal says it would slash that “overly generous” payout to 1.5 percent for all banks with more than $1 billion in assets. While the summary language outlining the proposal said that change would only impact “large banks,” industry advocates argued that banks most would identify as small community shops could easily have assets in excess of that amount.

While I’m not convinced that this proposal will actually go through, I applaud the members of Congress who included it nonetheless. At a minimum, it will expose more people to how the banking system actually works, and get this 6% dividend in the public consciousness.

After all, #banklivesmatter

 

 

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Wed, 07/29/2015 - 11:55 | 6367114 hedgeless_horseman
hedgeless_horseman's picture

 

 

Did you know The Fed is responsible for regulating the very same banks that own it?

http://www.federalreserve.gov/econresdata/bsrstaff.htm

 

A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests (financial, emotional, or otherwise), one of which could possibly corrupt the motivation of the individual or organization.

   
https://en.wikipedia.org/wiki/Conflict_of_interest

Wed, 07/29/2015 - 11:55 | 6367126 J Jason Djfmam
J Jason Djfmam's picture

How could congress have a say about what a non government evil banking cabal pays it's bloodsucking members?

Wed, 07/29/2015 - 11:57 | 6367138 PartysOver
PartysOver's picture

Who are the current stock holders of the Fed?  Web site anyone?

Wed, 07/29/2015 - 11:59 | 6367154 Pladizow
Pladizow's picture

The member banks.

Wed, 07/29/2015 - 12:07 | 6367192 Pladizow
Pladizow's picture

This story is a joint venture in propaganda!

The banks earn 6% on 6% of their aseets. (what they pay for the shares)

What is $17 billion in lost earnings speadout over the member banks - NOTHING!

The banks have allowed Washington to run with this story to look like tough guys!

Wed, 07/29/2015 - 12:18 | 6367233 Amish FinEng
Amish FinEng's picture

The Amish would never let an organization like the FED infiltrate our culture. You English are really perverted people.

Wed, 07/29/2015 - 12:28 | 6367278 Herd Redirectio...
Herd Redirection Committee's picture

I have a cattle gun, if Congress wants to borrow it, to put this beast out of its misery.

Kill the Beast from Jekyll Island!

Wed, 07/29/2015 - 12:55 | 6367407 Oh regional Indian
Oh regional Indian's picture

Vile, slimey fucks have NO SHAME...

Truely, pschopathy IS the key to power in todays world.

Gluttonous tribe and their gluttonous lackeys....scarfing, stealing....scum in suits, the world really IS upside down...

Now see this piece of genius and ...laugh? Cry? As you feel disposed...

http://e-sheep.sansara.net.ua/www.e-sheep.com/rusheats/

 

Wed, 07/29/2015 - 15:46 | 6368342 3.7.77
3.7.77's picture

Slash the return to the prime rate, rather than %1.5, as a little incentive.

Wed, 07/29/2015 - 12:19 | 6367237 KnuckleDragger-X
KnuckleDragger-X's picture

A full 10 year audit of the FED would be wonderful, but it'll never happen since we don't have nearly enough prisons for the new convicts. Hmmm... maybe we could turn Puerto Rico into a new Devil's Island.......

Wed, 07/29/2015 - 13:48 | 6367679 Titus
Titus's picture

If that ever happens, they won't be going to prision. Hitler's solution will come back to the forefront. The central banking system is simply not reformable. It must be completely eliminated or succumbed to.

Wed, 07/29/2015 - 19:27 | 6369255 StychoKiller
StychoKiller's picture

Meh, $17Billion would pay for a crapton of Interstate Rest stops!

Wed, 07/29/2015 - 13:11 | 6367471 WTFUD
WTFUD's picture

From HH List
BANK 14560 LOCUST (HA HA )
. . . and if i tell you the name of the Game boy it's gonna drive you Insane. PIG MAN ha ha Charade you are.

Wed, 07/29/2015 - 12:02 | 6367172 greenskeeper carl
greenskeeper carl's picture

Yes I did know that. Which is why I want to end the fed , not just turn off their dividends to the banks. And to the poster above , about who owns the fed, I think it's generally believed to be mostly the 'primary dealer' banks. So yes, although yellen is the 'fed head' in reality the privately owned banks own the mechanism through which money is created. It's absurd. Time to get rid of it

Wed, 07/29/2015 - 12:42 | 6367356 Took Red Pill
Took Red Pill's picture

Absolutely! End the Fed! It will be up to the people to do this as it will never come from Congress! BTW great video!

Wed, 07/29/2015 - 12:16 | 6367225 TheAntiProgressive
TheAntiProgressive's picture

With all the "consolidation" that has gone on in finance and banking we do not really know who the "member" banks are or who might potentially "control" some of these member banks.  The actual FED shareholder listing I thought was a "closely" guarded secret.  Now if you put on your tin foil hat you potentailly can make a question that the US Fed controlled by member banks is not really owned by domestic banks.  Or potentially, between foreign banks and the stock breakdown of domestic bank shareholders who are member banks, it is possible the FED is owned by foreigners in one form or another.  Only an audit will reveal this and all founding documents should also be made available.  Articles of incorporation etc all of it.

Wed, 07/29/2015 - 12:49 | 6367379 Winston Churchill
Winston Churchill's picture

You will never find out.

Two brothers,clents of mine, control a large international fast food operation via trusts and

dummy corps.Its supposedly a public company, thats a household name.

The reality is far different and probably impossible for anyone not in the know,to prove

otherwise.

Wed, 07/29/2015 - 13:07 | 6367460 Ignatius
Ignatius's picture

Which is why I favor the Gordian Knot solution and approach.

Wed, 07/29/2015 - 12:02 | 6367168 lakecity55
lakecity55's picture

Owners? The Board Members of the B for IS.

Mostly Zionist Satan-Worshipers with a few Goy baby parts-suppliers.

Wed, 07/29/2015 - 11:58 | 6367142 Pladizow
Pladizow's picture

This will make no difference to the banks - they'll simply give $17 billion less in bribes to Washington!

Wed, 07/29/2015 - 12:02 | 6367171 OpTwoMistic
OpTwoMistic's picture

Need to cut more than dividends.  How about heads.  Make a list.

Wed, 07/29/2015 - 12:11 | 6367212 Al Gophilia
Al Gophilia's picture

A handful of kids are demanding their allowance to be raised. They're entitled and exceptional, didn't you know.  They'll get their blow and it will all pass unremarkably into the dustbin of history.

Wed, 07/29/2015 - 13:19 | 6367530 robertsgt40
robertsgt40's picture

The Fed was hatched in 1913

Wed, 07/29/2015 - 11:55 | 6367124 p00k1e
p00k1e's picture

So banks are like the NFL or MLB? 

Wed, 07/29/2015 - 12:31 | 6367298 orez65
orez65's picture

There is only one bank in the U.S., the Federal Reserve.

Individual banks are franchisees of the Fedral Reserve, like McDonalds, Burger King, Motel 6 ...

Wed, 07/29/2015 - 12:33 | 6367306 chunga
chunga's picture

Naturally, any notion of the FED giving 6% of any damn thing to the sheeple would be shouted down as a moral hazard and socialism/whateverism.

Wed, 07/29/2015 - 13:17 | 6367513 Agstacker
Wed, 07/29/2015 - 11:57 | 6367127 JustObserving
JustObserving's picture

After all, #banklivesmatter

I must have missed the sarc tag.  Shouldn't it be 

Only #bankerslivesmatter

After all Dimon and Blankfein desperately need their second billion

Wed, 07/29/2015 - 11:58 | 6367146 p00k1e
p00k1e's picture

Who would buy our stuff if not for bankers? 

Wed, 07/29/2015 - 11:58 | 6367149 pods
pods's picture

Banks borrow at 0% from the FED, who creates the reserves. 

Banks deposit said reseves at the FED and earn 6%.

Banks earn skim.

Sounds like something some banksters would dream up.

pods

Wed, 07/29/2015 - 12:06 | 6367191 saints51
saints51's picture

Thats not true. What government would allow such a thing?

/s

Wed, 07/29/2015 - 12:06 | 6367193 Wary Hanger
Wary Hanger's picture

sounds eerily like a holodomor

Wed, 07/29/2015 - 12:12 | 6367213 kralizec
kralizec's picture

So, do they have to go to the next line over to make the deposit or can they just spin a 360 and just hand it back and say "I want to make a deposit"?

Wed, 07/29/2015 - 12:17 | 6367229 RushRoolz
RushRoolz's picture

Banks borrow at 0% from the FED, who creates the reserves. 

Banks deposit said reseves at the FED and earn 6%.

 

As I'm sure you know, it is FAR, FAR more corrupt and collusive than that. The more you know about the Fed, the more you want to puke in the nearest wastebasket.

 

Wed, 07/29/2015 - 12:25 | 6367265 Peconic Bay
Peconic Bay's picture

Not quite. The banks earn a 6% dividend on their stock in the Federal Reserve Bank, not on reserves on deposit at the Fed.  Still, a 6% yield is a sweet, risk-free deal.

Wed, 07/29/2015 - 12:29 | 6367286 pods
pods's picture

Thanks. I didn't see how it could be that awful, even for bankers.

pods

Wed, 07/29/2015 - 12:50 | 6367382 El Vaquero
El Vaquero's picture

Not to mention that there would be a little mathematical problem with that.  It would put the Fed into a position that it had to print FRNs just so that it could continue to print FRNs much faster than it is working its way to that position.  Another way of putting that is that the Fed's operating expenses would exceed its income, and it would be forced to print the difference.  

Wed, 07/29/2015 - 12:00 | 6367160 kralizec
kralizec's picture

Congresscritters trying to be tough with the Fed and its legions...how cute!

Tough would be pulling the plug!!!

Wed, 07/29/2015 - 12:00 | 6367163 WillyGroper
WillyGroper's picture

yes sir, yes sir.

two days old.

meh

Wed, 07/29/2015 - 12:16 | 6367226 Al Gophilia
Al Gophilia's picture

Old news, eh? About 99 years old, just not well advertised in the headlines of the MSM but it will get out eventually, at different rates and from different sources in the Modern Media.

Wed, 07/29/2015 - 12:23 | 6367257 WillyGroper
WillyGroper's picture

News of the bill Al, not the FR.

Wed, 07/29/2015 - 12:35 | 6367313 Al Gophilia
Al Gophilia's picture

Got it. Cheers.

Wed, 07/29/2015 - 12:02 | 6367170 JC-BI
JC-BI's picture

Americans need to wake up to the corruption inside the Fed. Ron Paul tried to wake us up, but it seemed we went back to sleep.

https://biblicisminstitute.wordpress.com/2014/08/24/the-corrupt-federal-...

Wed, 07/29/2015 - 12:23 | 6367254 Al Gophilia
Al Gophilia's picture

You can't wake a zombie when they're livin' the dream. The living dead. Try selling a upsized koolaid drinker the dream of debt free money and they'll slit your throat for trying to take away their credit streams. The horror of it all!

Wed, 07/29/2015 - 12:03 | 6367178 Suleyman
Suleyman's picture

How many dollars in capital are we talking about?

Wed, 07/29/2015 - 12:04 | 6367179 falak pema
falak pema's picture

So when is Congress gonna reinstate Glass Steagall?

Wed, 07/29/2015 - 12:11 | 6367211 Tribulation Blues
Tribulation Blues's picture

They never will...

Daniel 7 says the AC will be the leader of a powerful and diverse nation that breaks in pieces many other nations. Also that he will be diverse from all other leaders of that nation, (first black) also that he will be the 11th leader to come out of the powerful nation, (Obama is  the 11th POTUS since WW2 when the US became a superpower)

Daniel 11, says he will change times and laws, and have no desire of women! See numerous late Nov 2008 prophecies from Jesus also confirming the AC is Obama at http://revelation12.ca

We now await assassination and then resurrection by Satan.... Revelation 13... the prophecies say it will the Bush/Clinton Cabal..

Wed, 07/29/2015 - 13:42 | 6367656 falak pema
falak pema's picture

well if God planned all this ALL along; no wonder Obama spends his time on the golf course. 

Daniel Ellsberg and the Pentagon Papers! 

Are you sure Daniel was talking about Obama and not Nixon? 

Wed, 07/29/2015 - 13:49 | 6367687 The Delicate Genius
The Delicate Genius's picture

it is amazing - and scary, how many people like you walk the earth.

http://youarenotsosmart.com/2010/06/23/confirmation-bias/

The only real prophecies are the self-fulfilling kind.

Wed, 07/29/2015 - 14:19 | 6367850 Seek_Truth
Seek_Truth's picture

False prophet.

There will be no assassination.

There won't be any asteroid either.

You don't understand Daniel 11 or Revelation 12, that is very clear.

Wed, 07/29/2015 - 21:15 | 6369540 The Wizard
The Wizard's picture

Reinstating Glass Steagall would really make them go haywire. If "money" is printed out of air, what's the big deal of not collecting 17 billion.

Wed, 07/29/2015 - 12:05 | 6367186 Quinvarius
Quinvarius's picture

The next question is why are banks considered private institutions at all?

Wed, 07/29/2015 - 12:10 | 6367207 p00k1e
p00k1e's picture

Many questions.  Many. 

Wed, 07/29/2015 - 12:13 | 6367216 carbonmutant
carbonmutant's picture

People who want to regulate banks don't get elected.

Wed, 07/29/2015 - 12:14 | 6367217 Atomizer
Atomizer's picture

Basel III or my new desk on the Global Platform. 

Why Are You Telling Me?

http://m.youtube.com/watch?v=oFFCaKtDzuA

Wed, 07/29/2015 - 12:14 | 6367218 MrBoompi
MrBoompi's picture

Throughout the history of mankind, one thing we should have learned is it's not unusual those with the power and the wealth will game the system to increase their own power and wealth.  The same people who benefit from this "system" also have firm control of the government.  We rarely see Congress or the other two branches go against the wishes of Wall St and the oligarchs.

Wed, 07/29/2015 - 12:18 | 6367235 Seasmoke
Seasmoke's picture

Henry Ford was right all along. Almost makes want to go out and buy a Ford. Almost. 

Wed, 07/29/2015 - 12:19 | 6367238 Bobbyrib
Bobbyrib's picture

If they end the 6% interest, get ready for some new bank fees if you still have an account.

Wed, 07/29/2015 - 12:21 | 6367247 rejected
rejected's picture

Kill the Fed.

all other problems will take care of themselves soon thereafter...

Wed, 07/29/2015 - 12:27 | 6367274 Bastiat
Bastiat's picture

Hillary DOES suck.

Wed, 07/29/2015 - 14:21 | 6367870 venturen
venturen's picture

I bet she doesn't

Wed, 07/29/2015 - 16:14 | 6368469 Bastiat
Bastiat's picture

. . . hmmmm looked at literally you'd have to ask: suck what?

Wed, 07/29/2015 - 12:28 | 6367280 CHC
CHC's picture

Hahaha - awesome video - FUCK THE FED!!

Wed, 07/29/2015 - 12:32 | 6367301 cn13
cn13's picture

Don't you know political theater when you see it?

Nothing will be cut to the banks.  They are the ones in control, not the U.S. politicians.

In the end, the politicians will probably raise the dividend to the banks, not cut it.

Know Thy True Master - The Banksters

Wed, 07/29/2015 - 12:38 | 6367322 Bastiat
Bastiat's picture

Short off topic rant:

NPR & PBS were always left-biased but I prefer that to the what they have become: shamelss propaganda tools.  This morning they had a little piece on increasing numbers of millenials living at home - a surprise because the recovery is so well established and "unemployment" is so low.  Not all attributable to student debt as it also applies to non college educated. But it's all OK because "the stigma is fading" and "many parents like having their grown children living at home" - this last delivered with the female voiced lilt of a mother soothing a child.  I mean, good lord, this is getting so obvious, it hurts.  It is no longer the voice of liberal thought but the voice of power herding and soothing the frightened flock.

Wed, 07/29/2015 - 12:38 | 6367329 yrad
yrad's picture

And to think, we could have had Ron Paul.

Wed, 07/29/2015 - 12:39 | 6367335 Not if_ But When
Not if_ But When's picture

I live in NH.  I went to a Bernie Sanders town Hall meeting and asked a question which, at the time, concerned the Financial Transaction Tax.  Basically, why this proposal AND OTHER PROPOSED IMPORTANT LEGISLATION always have to be attached to another bill instead of being forwarded in Congress singularly and voted upon as a separate measure.  So that we could see who voted for and who voted against. 

IMO, this would be a perfect vehicle to see who is "bought and paid for" by Wall Street.  And it would be hilariously revealing to read the rationale/justification for those who vote against it providing some foul reasoning.

Wed, 07/29/2015 - 12:40 | 6367338 BoPeople
BoPeople's picture

Guessing that the banks won't even notice. They pay/bribe more currently annually as settlement for their crimes.

Wed, 07/29/2015 - 12:41 | 6367351 q99x2
q99x2's picture

Yes what the F is going on here? These bankers are parasite scum and need thrown into prison not paid 6% at the expense of everyone else. Arrest them.

Wed, 07/29/2015 - 12:54 | 6367400 Atomizer
Atomizer's picture

If you check your bank account withdraw at ATM, watch for the $2.00 fee to appear on statement.

Wed, 07/29/2015 - 12:58 | 6367425 Okboss
Okboss's picture

What a joke!  Wake me up when central banks and fiat currencies are no more.  There is no other issue on this planet that comes close - everything else is either a distraction or a direct result of our worldwide monetary system of wealth transfer (legalized theft).  

Watch them throw out and denigrate various bankers, banks, politicians, and policies but never, EVER, the sole right of a very elite group to create currency from nothing and charge the world interest on it.  

  The elevation of bankers in our society as the most wonderful, caring, smart and philanthropic people - pillars of our communities, is the other side of the psy-op coin that relentlessly disparages gold and silver.  It's a bizarro world when human predators, in the worst sense of the word, are glorified and the only escape for the rest of us is demonized and crushed.  

Wed, 07/29/2015 - 13:06 | 6367436 S Spade
S Spade's picture

squash the damn bill, continued funding for the export import bank is tied to the same bill..it's little more than organized crime / extortion

Wed, 07/29/2015 - 13:15 | 6367491 J J Pettigrew
J J Pettigrew's picture

Someone posted that 6% on 6% isnt much..and therefore..so what..

BUT, here is the Fed that loves changing our rates, but doesnt change this one...why not have

it tied to the fed funds rate so we can all suffer together from low rates? 

It is also a reminder of what rates SHOULD BE for the rest of us....historical interest rates.

So there are interest rates for THEM and interest rates for us.....just like Congressmen are not subject

to some laws they pass...like obamacare.

Wed, 07/29/2015 - 13:17 | 6367517 Omega_Man
Omega_Man's picture

This was common knowledge and on the FED's site...

Wed, 07/29/2015 - 13:18 | 6367521 SMC
SMC's picture

Sweet.

Wed, 07/29/2015 - 13:38 | 6367626 I Write Code
I Write Code's picture

$17 billion?  Split 100 ways?  Chickenfeed, compared to what they steal everyday.

Wed, 07/29/2015 - 13:41 | 6367648 libertysghost
libertysghost's picture

Added to the spending bill to...

 

encourage more money from bank lobbyists to have it removed.

Wed, 07/29/2015 - 13:44 | 6367669 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

That's an interesting thought.

Wed, 07/29/2015 - 13:43 | 6367665 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

Their dividend need not be cut precipitously, I think the amount I get around .15% is more than fair recompense.

Wed, 07/29/2015 - 14:08 | 6367670 The Delicate Genius
The Delicate Genius's picture

Why in the fuck can we not find out who/what entities/people own the shares in the regional banks?

http://www.globalresearch.ca/the-federal-reserve-cartel-the-eight-famili...

http://www.globalresearch.ca/who-owns-the-federal-reserve/10489

^^ this might be right, or largely so - but something official would merit more faith.

"CPA Thomas D. Schauf corroborates McCallister’s claims, adding that ten banks control all twelve Federal Reserve Bank branches. He names N.M. Rothschild of London, Rothschild Bank of Berlin, Warburg Bank of Hamburg, Warburg Bank of Amsterdam, Lehman Brothers of New York, Lazard Brothers of Paris, Kuhn Loeb Bank of New York, Israel Moses Seif Bank of Italy, Goldman Sachs of New York and JP Morgan Chase Bank of New York. Schauf lists William Rockefeller, Paul Warburg, Jacob Schiff and James Stillman as individuals who own large shares of the Fed. [3] The Schiffs are insiders at Kuhn Loeb. The Stillmans are Citigroup insiders, who married into the Rockefeller clan at the turn of the century."

If true - then European Jews basically own and control the Fed. And even when 3 Fed chairs in a row are Jews, even when the second in charge is a dual citizen Israeli {actually a triple citizen} who has PLAINLY been more loyal to Israel and his fellow Jews. {look at the FTA he engineeered and what a fucking that was for America}

http://irmep.org/fischer_aipac.htm

We are not allowed to talk about it. It's "hate" to talk about wildly disproportionae Jewish power, and Israel never does anything wrong - indeed, to call the bulldozing of Arab homes as Jewish only settlements and roads are built "apartheid" is anti-Semtism.

http://israeljewsjudaism.blogspot.com/2014/01/israel-bash-fest-comes-to-...

How do you talk with people so shameless in their hypocrisy, dissembling, and racism, and hyperethnocentrism?

---
How Racism Drives the Zeal to Destroy Iran and Maintain Global Hegemony
http://www.alternet.org/world/racism-drives-zeal-destroy-iran-and-mainta...

Israel’s High Schools Bastions Of Racism, New Israeli Book Claims
http://failedmessiah.typepad.com/failed_messiahcom/2014/08/israels-high-...

How Israel Covers Up Its Ugly Racial Holy War
http://www.alternet.org/world/how-israel-covers-its-ugly-racial-holy-war

‘How to kill goyim and influence people’
http://mondoweiss.net/2010/08/how-to-kill-goyim-and-influence-people

http://www.historycommons.org/timeline.jsp?timeline=complete_911_timelin...

Wed, 07/29/2015 - 13:59 | 6367737 The Darwin Mode
The Darwin Mode's picture

This article from The Hill, predicated on the notion that Congress is separate from and has control over Western central banking, is total bullshit (as many of you have noted). James Finkelstein is the Chairman, President, and CEO of News Communications, Inc of 2 Park Avenue, New York, NY 10016, whose subsidiary Capitol Hill Publishing Inc publishes The Hill (Wikipedia has that wrong). Finkelstein also serves as CEO of Nassau Community Newspaper Group Inc (President, too), South Shore Publishers Inc, Parkchester Publishing Co Inc, Dans Papers Inc, and Tribco Incorporated; he is President and Director of Marquis Who's Who LLC, and holds the Chairmanships of TPH Seller Inc and Guggenheim Digital Media.

But most interesting are Finkelstein's affiliations and associations, which shed light on what he has to gain from propagandizing this illusion of Congress going after the big banks on behalf of the people. His board affiliations include: Credit Suisse Private Equity LLC, D.H. Blair Investment Banking Corp, INVESCO Private Capital, Avista Capital Holdings, Pluribus Capital Management, Hofstra University, The Hollywood Reporter Inc, Advanstar Communications Inc, National Law Publishing Company Inc, ALM Media & Properties LLC, Adweek, and Energy Innovative Products Inc, among others.

I'm curious to know if my fellow ZHers have heard of any of THESE ASSOCIATIONS OF WILBUR LOUIS ROSS, JR., the INVESCO Chairman and CEO whom Bloomberg Business lists as the dominant association of James Finkelstein, publisher of The Hill. Might Ross be associated with anyone we've heard of? How about David R.J. de Rothschild... yeah, that one seems to ring a bell. What of Jamie Dimon? Lloyd Blankfein? What about Rupert Murdoch? There sure are a lot of Cypriot bankers on that list... how weird, then, that Finkelstein -- a man thoroughly connected to both banking and publishing interests -- would want to popularize the notion of a banking system being held in check.

Wed, 07/29/2015 - 14:37 | 6367951 MEFOBILLS
MEFOBILLS's picture

Not quite. The banks earn a 6% dividend on their stock in the Federal Reserve Bank, not on reserves on deposit at the Fed.  Still, a 6% yield is a sweet, risk-free deal.

(From a fomer comment that needs expansion.)

 

Stock and Reserve Channels are two different things.  The FED pays banks for reserves on hand, including cash.

Formerly, interest bearing paper held in reserve channels made interest.

So, think about it carefully:  Currency (Federal Reserve Notes in this case), which is general purchasing power, is not an interest bearing instrument.  Where on your FRN's does it say pay interest to bearer?

When this currency enters reserve channels it can gain interest.

http://www.frbsf.org/education/publications/doctor-econ/2013/march/feder...

Former paper, such as MBS and TBills were swapped during QE operations.  The former interest bearing paper ended up expanding FED balance sheet.  FED keyboard money then vectors into reserve loops as it buys former debt paper.  

Private bankers earn interest on this "currency" that was just created and swapped by the FED.

Currency in reserve loops, that is paid interest, is seen as an asset, and hence it is not traded on overnight market.  

Bankers not trading their excess reserve cash on the overnight, thus prevents a rate collapase to zero.

The interest rate knob is how the FED controls the money supply.  

Interest rates controlling volume of credit is a twice removed system of control.  And, this control is over a money type that requires new loans to come on line to overcome extinction of former credit.

Private banker corporate money system (Bank Credit) is both diabolical and crazy.

It is time to flush it in the crapper.  Humanity won't survive with a crazy system that makes us crazy.  The money power is very serious and it drives humanity.

A real money system has a large percentage of "money" NOT CREDIT in the supply.  Money is a pemanent non-dissappearing unit that people use for transactions and savings.

www.sovereignmoney.eu

And, yes, it is absolutely true that both Ashkenazi and Sephardic Jews were intimately involved in the creation of private banking credit system, mostly through fraud.  This fraud is allowed and sanctioned as "usury" on your enemies.  Christianity jumped on board the fraud wagon fully in about mid 12'th century, overturning previous injunctions against usury.

 

Thu, 07/30/2015 - 01:25 | 6370030 onmail
onmail's picture

SIX PERCENT DIVIDEND TO BANKERS.

Thats outrageous.

First these cabal banksters (Shylocks) sucked the blood out of common people with loans and make profit for their insanely rich lifestyle. And they had free QE money due to TBTF.

On top of that they got a gift of 6% dividend , for what. It is just like the mechanic of the money printing press keeping 6% of the cash in his pocket. Imagine how large this amount is, while the common people struggle to make ends meet to put bread on the table, they romp in billions of cash.

Vampires

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