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Who benefits from the FED?

Who benefits from the FED?

by David Howden | Mises Daily
Thursday, March 07, 2013

We recently looked at the Federal Reserve’s 2012 results. In particular, we pointed to some positive and negative developments. On a positive note, the Fed managed to shrink down the size of its balance sheet by approximately one-third of a percent. (Hey, it’s a start.) On a negative note, this decrease occurred because banks shifted their holdings of reserves into cash, thus forcing the Fed to sell off some of its assets. I explained that this is a potentially negative result, as the shift into cash brings with it inflationary pressure on prices.

In this article I want to point out who has benefited from the Fed’s operations over the past year.

Read more: http://mises.org/daily/6376/Who-Benefits-From-the-Fed

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The FED benefits those who were already much wealthier than everyone else. By taking control of the "funny money" supply, they took control of the values of the savings of everyone else who is foolish enough to put their savings in to "funny money".
They pay themselves for the devaluation of their "currency" in the form of interest rates and rob the value of the currency of others who still maintain trust in it by creating more "funny money".

Socialism for the rich is what I like to call it.


I try to change people every day. Do You?

Who benefits?

The article says that it's the banking sector that benefits as well as the government who can borrow from the fed at anytime almost without limit.

He didn't need all that analysis to figure out who benefits from counterfeiting ----> the counterfeiters!

But in my opinion, it's not the Fed that is the problem, it's the monopoly on money enforced through the legal tender laws, that is the problem.

If the Fed existed in a free market, the Fed would cause no problems whatsoever.