Recently Humboldt State University was visited by David Lang and Yelena Takhtamanova from the Federal Reserve Bank of San Francisco where they presented some information about the Federal Reserve System.
I, along with the department, took video of this event. While I was unable to take footage of the entire event, I was able to get David Lang’s presentation as well as a short portion of a question and answer period.
There were also presentations from students from an Economics class. Each group had to play the role of a private central banking head for each of the 12 Federal Reserve Branch banks. They had to make policy suggestions for the Federal Reserve banking system going forward.
Some of the groups had the right idea with the suggestion to remove the extra 0.25% interest being paid on excess reserves held with the Federal Reserve. This is a big problem and those groups got it right.
David Lang presented first, and a notable point is that at the 14-minute mark in the video below he explained that the Federal Reserve banking system paid back $78 billion to the US Treasury in 2010. It needs to be noted that he did not discuss the interest that the Federal Reserve charges on the currency in circulation.
What about the $189 billion paid to FRB on interest to service the debt in 2010? Wiki, a much less reputable source than the GAO, reports this number as $164 billion. Regardless, it is more than double what the Federal government spends on education.
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The fact that money, the US Dollar, a Federal Reserve debt note, an instrument of debt, is on the bottom portion of the balance sheet of the Federal Reserve, the liabilities side, is direct proof that each US dollar gains interest and that the Federal Reserve system is paid interest on that same debt, the national debt.
David Lang and Yelena Takhtamanova both specifically showed the balance sheet of the Federal Reserve banks, and ‘Currency in circulation’ can clearly be seen as a liability. As we know, the government does not have to issue debt in order to create currency but the Federal Reserve, in order to keep control over the debt slaves,(U.S. taxpayers) does anyway.
Another issue is the fact that while that curve for the currency in circulation looks reasonably tame, keep in mind that the fractional reserve banking system and how banks can lend out 10x(and more in certain cases) on each additional dollar in circulation.
The $100 billion printed in October of 2008 really amounted to $1 trillion of financial ‘stimulation’(really the weakening of the dollar) considering the ponzi scheme of irrational fractional reserve banking.
During his presentation, David Lang asked the audience if they could name who audits the Federal Reserve. No one in the room was able to answer except for me at 12:45 in the video. I answered with the GAO. I have reviewed many GAO reports to see the corruption hidden within the government, military, and private institutions.