[quote=investor]
The loss of interest paid to the US govenment on loans to other governments is a large loss to the american tax payer as well as instead of making interest on loaning our money, we wind up paying the federal reserve to loan out our own money! As riduculous as this sounds, that is the reality of what is happening.
[/quote]
I have no idea what you mean by this. If interest is paid to the US government, then the US government gets it. Are you aware of loans the fed has made to foreign governments directly? (I’m not, they may exist. I’ve just never seen them disclosed. The feds annual financial disclosures do not identify any.) Additionally, the fed is self funding and any net profit that the fed has, over and above it’s statutory dividends (previously noted above), are paid directly to the US government, so there is no “profit” being lost to a private company.
