[khelus]

Re: The IRS farms middle-class workers to pay the Fed back.

What does the Fed do with their earnings?

Among other things members are guaranteed 6% return on their stock. Since member banks are only required to pay half the price of their stock that is an effective 12% return guaranteed by law. Nice gig if you can get it.

"Member banks must subscribe to stock in their regional Federal Reserve Bank in an amount equal to 6 percent of their capital and surplus, half of which must be paid in while the other half is subject to call by the Board of Governors"
http://www.federalreserve.gov/pf/pdf/pf_complete.pdf

[Toddsterpatriot]

Among other things members are guaranteed 6% return on their stock.

Okay. That was about $1.6 billion in dividends last year. What do they do with the rest?

Since member banks are only required to pay half the price of their stock

They only get paid for capital they actually contributed, so it's 6%.