The Federal Reserve is privately owned. The Fed creates money out of thin air, without assets to back it up, and loans that money to the US government. The Fed charges interest on all the money they lend us this way. I think I saw awhile back that the Fed is now the largest holder of US government debt.
If it's keeping down the rates on their sovereign debt, it's a gift to euro zone taxpayers.
Maybe you didn't notice, but the government has taken out loans to make those gifts, pledging the future earnings of you and the rest of its citizens as collateral.
Leverage? You mean borrow? Who are the banks going to borrow this much from? Other banks? Euro governments?
What do you think is the source of those Federal Reserve Notes that are deposited in the banks that they use as funds to loan out?
LOL! This guy is funny.
(Math is hard. Harder if you're stupid.)
Then why did the "owners" get $1.6 billion in 2010 while the Treasury received $78.4 billion?
The Fed creates money out of thin air
Yes they do.
without assets to back it up
Actually, the Fed owns about $400 billion in gold and $2.6 trillion in bonds.
and loans that money to the US government.
The Fed doesn't loan money to the US government.
The Fed charges interest on all the money they lend us this way.
Everyone who owns bonds charges interest this way.
I think I saw awhile back that the Fed is now the largest holder of US government debt.
I think you're right.
Maybe you didn't notice, but the government has taken out loans to make those gifts,
Maybe you didn't read the article? The ECB is making these loans, not the Eurozone governments.
pledging the future earnings of you and the rest of its citizens as collateral.
A central bank loan doesn't pledge the earnings of citizens for anything. Only the Treasury does that.
What do you think is the source of those Federal Reserve Notes that are deposited in the banks that they use as funds to loan out?
Customer deposits mostly.
(Math is hard. Harder if you're stupid.)
I know, but there's still hope for you. Let me know if there is anything else I can clear up for you. Glad to help.