This page has been archived and commenting is disabled.
The Fed Just Gave The Treasury A Record $19 Billion Holiday Bonus
Something surprising emerged in the latest Daily Treasury Statement report showing the sources and uses of operating cash of the US Treasury: the line item for Federal Reserve Earnings exploded to $19.3 billion on December 28, doubling the amount of cash the Fed had remitted to the Treasury for all of 2015.
This record, unprecedented one-day payment is shown in the chart below:
And just like that the Fed, also known as the printer of US currency, gave the Treasury a one time record bonus of $19 billion.
But wait, isn't direct funding of the Treasury against US policy: after all, hasn't Bernanke been on the record countless times repeating that the Fed does not monetize the US deficit?
What is going on here.
For the answer, go back to the $1.1 trillion spending deal which the "bipartisan" Congress fought so hard to get, and specifically the Highway Bill, which as a reminder would be funded with surplus funds from the Federal Reserve and part of the annual dividend banks get for owning shares of Fed regional banks.
As Bloomberg reported previously, the Fed’s surplus capital comes from the 12 reserve banks. "The highway bill would allow for a one-time draw of $19 billion from the surplus funds, which totaled $29.3 billion as of Nov. 25. If the surplus account goes above $10 billion, that capital would be swept to the government."
The US banking system, which is therefore indirectly funding the US highway bill, was not happy:
“This proposal is misguided and undermines a key agreement that has underpinned the U.S. banking system for a century,” ABA President and Chief Executive Officer Rob Nichols said in a statement. “Banks shouldn’t be used like an E-Z Pass to pay for highways.”
Still, the reality is that after this one-time bonus of $19 billion, it will take a long time before the Fed has to pony up a comparable amount:
The banking industry has vigorously fought a cut in the dividend payout to avoid becoming a future source for government funding and potentially paving the way for a tax on banks. Decreasing the payout to 1.5 percent was estimated to generate about $17 billion over 10 years for the highway trust fund. The payout totaled less than $350 million apiece last year for JPMorgan, Bank of America, Citigroup and Wells Fargo & Co.
According to others such as Stone McCarthy, the direct remittance from the Fed to the Treasury "serves as a reminder of poor fiscal policy, and an attack against the Fed's independence."
What Fed independence?
Actually, what today's "bonus" really serves, is a test of the direct monetary financing, aka "helicopter money", policy which we have been warning is coming, and which the Fed will have no choice but to unleash once the current experiment with hiking rates in a time of global economic recession ends with a bang.
For now, however, any time you see workers filling potholes during your commute over the next 6 months, remember to thank Santa Yellen: a big part of the funds to fill those pothole was magically created by her pressing CTRL+P.

- 71 reads
- Printer-friendly version
- Send to friend
- advertisements -




How nice of them. http://hedgeaccordingly.com/2015/12/the-federal-reserves-christmas-gift-...
Fuck the Fed on top of the Treasury. Nothing but earth scum.
Blatant, the shit is blatant. Nothing short of an insurrection is required.
Technically you are correct. If you were a shareholder of US Fed you could easily argue a case that the majority owners have overstepped their duties to equity and are now in conflict with their Charter mandate. Does anyone have Carl Ichan's cell number and the current mark on US Federal reserve class A shares?
Yes it would be good to know who the Secret share holders are. It's written in the Federal Reserve act that there are secret share holders. Now that is some shit.
thatsa might hot-lookin santa you got there, mister Tylerz!
meeeee-owww!!!
ALL bankers lie. Their very existence, peddling debt and currency, relies heavily on your advocacy and confidence. Therefore, lying goes with the terrirtory, and since the US dollar is the world reserve currency, it stands to reason that the entire US political stucture lies through their teeth - every word, every time.
"We will not monetize the debt" is a running joke because the Fed has done that for more than 100 years.
Let's move on and hang these control freaks once and for all so we can stop rehashing idiotic lies.
Sheep on Drugs in their song English Rose: "If it feels nice, we'll do it at least twice"
Here's a few interesting facts: There is no law anywhere that grants to either the Federal Reserve or the banks the authority to create money. There is no law anywhere that designates or acknowledges the credit they do create as being money, a currency or a medium of exchange. The fractional reserve banking system was created with gold as the money and Federal Reserve Bank Notes as the elastic currency. The Banking Act of 1933 withdrew gold as the legal tender and replaced it with Federal Reserve Notes, the new legal tender, fractional reserve banking ended.
Arrest these fuckers
Physical Gold and Silver...
hmmm?????????
Y'all goyim weren't supposed to notice that. An additional 4.73% drop in gold will close your filthy sewers.
Wow she's a Hottie.
Wow he is handsome
Free haircuts down at Moe "Bowl Cut" Yellin's barbershop tomorrow!
too much confusion.
thank you very much.
Guess ther Gona need some new ppt guys anyway. The ones they have now must be worn out and near going postal
The looting never stops,,, til it's stopped.
You should call it the highway robbery bill.
That said, a tax on the banks for the privilege of running a cartel in conflict to the needs and interests of the American public is what I call a good start
It isn't the abolishment of that most hated and corrupt institution but it is down the right path
"down the right path"
Quite the opposite. This gives them enough cover of benevolence to continue stealing the value of existing wealth by money creation. These are scraps compared to their ill gotten gains.
I see Jack Lews dirty fingerprints all over this Statement.
NO INTEREST FOR YOU!
As has happened in Russia and Germany many times over, their governments have devalued their currency into oblivion to wash away mountains of debt brought about by government fraud, waste, and stupidity.
This is the Fed's chance to show the world that this sort of currency-reset can happen here too.
The woefull losers in this story are: the lenders who were dumb enough to stand by as the currency denomiating the treasuries they hold is debased, and the public who is seeing their buying power stripped away at the same time their wages are falling due to an economy which has collapsed due to a multitude of asset bubbles that have burst in their faces.
I just hope that there are plenty of good ol' fashioned hangings in the square to compensate for this.
http://www.thesleuthjournal.com/wp-content/uploads/2015/12/empty-grocery-store-dees3-1-403x300.jpg
This is the 7th year of a glorious recovery. Someone deserved a bonus. Good job, guys!
Circularity! Circularity!
http://mashwiki.wikia.com/wiki/Father_Mulcahy
Yellen walks in the doctors office and says I got hair growing all over my tits! The DOC says, thats not that bad and how far does the hair go down. She says all the way down to my DICK and thats another thing I want to talk to you about.
Federal Reserve is leveraged at 77 to one and that does not include off balance sheet items...its INSOLVENT
Unfortunately they are not insolvent. They don't use GAAP accounting. They have their own proprietary system. When you create your own accounting system (including a non-offsetting ledger) you're never insolvent.
P.S. in a previous life, I wrote software for the FED.
Two women pretending to fight to secure Global Governance.
So, our foreign creditors have just gotten a big F.U. from Yellen and Co.; with this revelation the dollar has just been de facto devalued...again. Any investments they had here have just taken a dive. China's yuan has already devalued for what, the 7th time? 8th? 9th? Why bother counting? It will just happen again after this
And, now, who's next, Russia? Their economy is as much on the precipice as China's is.
This is shaping up to be a global circular firing squad, with every citizen on this planet in the middle. Worse, the marksmen are drunk and daring each other to shoot first.
The only thing that puts a halt to these Ponzi games is the rejection of the dollar by the rest of the world.
try file:///Users/Pebcak/
Highway(man) Bill; Fed = Dick Turpin, Stand and Deliver; Boyz in Da Hood.
A former colleague used the saying "at least Dick Turpin wore a mask". i love these fuckers.....stealing form the american people and telling us its for our own good....they should all wear masks so at least the rest of the population would know they are thieves.
Data like that give new meaning to the word "out-liar."
The Federal Reserve Banks' 2014 earnings, inclusive of other comprehensive income, were $99.7 billion. The Reserve Banks provided for remittances to the U.S. Treasury of $96.9 billion. Interest income on securities acquired through open market operations totaled $115.9 billion, an increase of $25.5 billion from the previous year....it's good to be king
doesn't make any sense. the fed just placed 105B in bank reserves WITHOUT draining any of their own, which begs the question where did the money come from? its not monetizing perse if the Fed accepts (30yr) bonds from Treasury and instead of monetizing them directly, places the collateral as RRPO and remits the interest to the Treasury minus the 5% the banks pay them. 19B represents payment of 1/2 percent interest earned on 3.8 trillion in collateral?? if this is the case the amount is staggering
the shell game will continue till the nut falls out, then a little longer till someone figures out there is no nut under any of the shells
There are no nuts or is it chuck full of nuts; I'm confused.
That photo of Yellin is neatly as repulsive of the picture of Robot Trader's Mom.
Here's a quote on the U.S.gov debt just for reference:
"U.S. Government Debt increased to $18,827,323,000,000 (trillion) in November 2015 (Highest on record) from $18,152,982,000,000 (trillion) in October 2015. Government Debt in the United States averaged $3,765,572,430,000 (trillion) between 1950 and 2015.
· The record low was $253,400,000,000 (Billion) in April of 1951. · The Federal Reserve Bank held: $2,461,566,000,000 in U.S. Treasuries as of December 23, 2015. The ten largest foreign holders of U.S. Treasuries as of October 2015 (billions) are:1. China, Mainland 1,254.8
2. Japan 1,149.2
3. Caribbean Banking Centers 4 322.0
4. Oil Exporters 3 291.4
5. Brazil 255.0
6. Ireland 232.9
7. Switzerland 225.6
8. United Kingdom 2 210.6
9. Hong Kong 197.0
10. Luxembourg 188.2
New Year’s Eve Party talking point #7:
The advertised U.S. Government debt was $8 trillion in 2006. One trillion per year has been added to that debt since 2006.
Then there is the unfunded liabilities calculation. When you add up all of the nation’s unfunded liabilities, (i.e., unfunded civilian and military pensions and retiree healthcare, the additional underfunding for Social Security, the additional underfunding for Medicare, various commitments and contingencies of the U.S. Federal government) the national debt is $65 trillion, or more than three times the number generally advertised.
But wait, it gets even worse. If the U.S. Federal government calculated the nation's true fiscal condition by using what economists call "the infinite-horizon fiscal gap," defined as the value of all projected future expenditures minus the value of all projected future receipts using a reasonable discount rate. When we scratch this figure out, we end up at $210 trillion.
Smile and explain that to your children."
https://www.linkedin.com/pulse/truly-big-shorts-john-m-cunningham?trk=pr...
That can't be right Insurrexion, there are only 34 people living in Luxenbourg, how did they afford $188 trillion? Most of the Irish I know haven't a pot to piss in either and the Banks can't borrow money from the leprechauns because they're always a little short.
Nuts,
Its 188 Billion.
The figures are from a great article about the Fed & U.S. economy.
But your /S point is well taken.
The interesting thing is that Russia is way down the list now.
China has maintained a steady balance...that is until they dump and the Treasury prices drop and the interest rates sky-rocket making life in the U.S. excessively disturbing.
Statistically it is possible to arrive at any conclusion you want simply by selecting the discount rate that produces the desired result. Therefore, it is possile to arrive at a variety of results when calculating "unfunded future liabilities." Such calculations should, of course, be matched by similar estimates of future revenue using the same discount rate. Some of the future expenditures mentioned are NOT unfunded, for example Social Security and, no doubt, others.
“Banks shouldn’t be used like an E-Z Pass to pay for highways.”
Yes, right. The Banks are reserved to paying huge bonuses and profits to WS'ers
The Fed remittance to the Treasury during the last week of the year was probably necessitated by uncertainties regarding congressional actlion on a change to the dividend payment to member banks. In any case, Fed payments to the Treasury are routine and occur on a continuing basis. After paying its generous allowances and benefits to its staff, it remits its net profit to the Treasury. This years payment would have been much higher were it not for the payment to the commercial banks of interest on their reserves on deposit with the Fed. Bankers, being the incurably greedy bastards that they are, are complaining about the reduction of their dividend notwithstanding the new gift they are receiving of interest on their reserves.
At the same time I believe it was unwise in the extreme for the congress to earmark some Fed revenue for highway patronage projects. Earmarking of revenues is always a bad budgetary practice, as it makes it impossible to assign priorities in the future.
Too late .. Doesn't matter anymore ..
Genie is already out of the bottle .. No putting it back in ..
Jack and Jill ............. Ah Fuck It!
Facts are funny things. I'm not an apologist for the FED. But, they do rebate:
"Facts: The Federal Reserve rebates its net earnings to the Treasury every year. Consequently, the interest the Treasury pays to the Fed is returned, so the money borrowed from the Fed has no net interest obligation for the Treasury. The government could print its own currency independent of the Fed, but there would be no effective safeguards against abuse of this power for political gain."
http://www.publiceye.org/conspire/flaherty/Federal_Reserve.html
“The Federal Reserve Banks create money out of thin air to buy Government Bonds from the U.S. Treasury . . . [creating] out of nothing a . . . debt which the American people are obliged to pay with interest.”
Patman was outraged at the inequity of this practice and boldly agitated for Congress to nationalize the privately-owned Federal Reserve, a move that would have allowed the government to issue the national money supply directly. Needless to say, however, this proposal met with strong opposition. Nationalization did not happen, but the Fed did have to compromise. According to Jerry Voorhis:
“As a direct result of logical and relentless agitation by members of Congress, led by Congressman Wright Patman as well as by other competent monetary experts, the Federal Reserve began to pay to the U.S. Treasury a considerable part of its earnings from interest on government securities. This was done without public notice and few people, even today, know that it is being done. It was done, quite obviously, as acknowledgment that the Federal Reserve Banks were acting on the one hand as a national bank of issue, creating the nation’s money, but on the other hand charging the nation interest on its own credit – which no true national bank of issue could conceivably, or with any show of justice, dare to do.”
http://www.webofdebt.com/articles/monetizethis.php
My addition:
The FED is a distraction. The bulk of the money supply is LOANED INTO EXISTENCE, when you go to the bank and hypohtecate yourself.
The FED is an agent for the banking system. They also back scratch government. They are part of a system, but not the tip of pyramid. TBTF and other hidden money power owners reside at tip.
The FED, before Wright Patman would keep all of its ill gotten gains. Now it just keeps want it wants, pays profits into its banking system partners, and THEN rebates Treasury.
First of all, net interest means the scraps left over after member banks are paid. Do the math, 19B is a fraction of the take.
Secondly, they created 3 or 4 trillion. That's principal owed...balance sheet assets. Are you trying to say we're getting a good deal? They create trillios out of thin air and throw us a few scraps.
19B is a silly distraction so that the argument you just made can be had.
Yellen looks kinda cute with that beard and santa hat. Why don't more women wear beards these days? When the shoe fits....
Hey...knock it off...Janet Yellin (in the wind) decided to play Santa Claus and spread some good tidings ( or in this case some good ole money). If you know anything about Janet...her philosophy is "it is better to give than to receive"...
WHAT IS WRONG WITH REGIONAL FED BANKS PAYING FOR FILLING OF POTHOLES??
Because thay create a giant sink hole for every pothole filled. The banks are not paying anything. They've indebted us without having to first earn the money. Then they give us a fraction of it back (I.e. discount the interest rate). The math is simple, 19B is nothing compared to what they are allowed to steal.