Obviously I know nothing

I just read an article that said the Federal Reserve paid the federal government $75.4 billion for 2011. That is the second highest payment in history. 2010 was the biggest payment at $79.3 billion.

PAUSE

HUH?

I OBVIOUSLY KNOW NOTHING ON HOW THE FINANCIAL PROGRAM WORKS

I thought the federal reserve was the federal government's financial wing. Then I read the definition on Wikipedia which I now share with you.

The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States. It was created on December 23, 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907.[2][3][4] Over time, the roles and responsibilities of the Federal Reserve System have expanded and its structure has evolved.[3][5] Events such as the Great Depression were major factors leading to changes in the system.[6]
The Congress established three key objectives for monetary policy—maximum employment, stable prices, and moderate long-term interest rates—in the Federal Reserve Act.[7] The first two objectives are sometimes referred to as the Federal Reserve's dual mandate.[8] Its duties have expanded over the years and today, according to official Federal Reserve documentation, include conducting the nation's monetary policy, supervising and regulating banking institutions, maintaining the stability of the financial system and providing financial services to depository institutions, the U.S. government, and foreign official institutions.[9] The Fed also conducts research into the economy and releases numerous publications, such as the Beige Book.
The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors (or Federal Reserve Board), the Federal Open Market Committee (FOMC), twelve regional Federal Reserve Banks located in major cities throughout the nation, numerous privately owned U.S. member banks and various advisory councils.[10][11][12] The FOMC is the committee responsible for setting monetary policy and consists of all seven members of the Board of Governors and the twelve regional bank presidents, though only five bank presidents vote at any given time. The Federal Reserve System has both private and public components, and was designed to serve the interests of both the general public and private bankers. The result is a structure that is considered unique among central banks. It is also unusual in that an entity outside of the central bank, namely the United States Department of the Treasury, creates the currency used.[13]
According to the Board of Governors, the Federal Reserve is independent within government in that "its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government." Its authority is derived from statutes enacted by the U.S. Congress and the System is subject to congressional oversight. The members of the Board of Governors, including its chairman and vice-chairman, are chosen by the President and confirmed by the Senate. The government also exercises some control over the Federal Reserve by appointing and setting the salaries of the system's highest-level employees. Thus the Federal Reserve has both private and public aspects.[14][15][16][17] The U.S. Government receives all of the system's annual profits, after a statutory dividend of 6% on member banks' capital investment is paid, and an account surplus is maintained. In 2010, the Federal Reserve made a profit of $82 billion and transferred $79 billion to the U.S. Treasury.[18] This was followed at the end of 2011 with a transfer of $77 billion in profits to the U.S. Treasury Department.[

THAT LAST TWO SENTENCES ARE INTRIGUING

$82 BILLION IN PROFIT AND $79 SENT TO THE TREASURY.

THE OTHER $3 BILLION??????????????

Where did that go? Don't tell me it went to bonuses or my head might explode.

The money basically comes from earnings on investments that the Federal Reserve makes during the year.

Just so I understand this......Ben Bernanke and his band of merry stock pickers are allowed to speculate with the United States tax revenue and buy Google, Apple, Microsoft, cotton futures and Micronesia currency?

The article I read, implies the lower payment in 2011 was due to the Fed's support of AIG.

PLEASE KEEP IN MIND THAT THIS IS EXTRA INCOME THAT THE UNITED STATES RECEIVES FROM IT'S PAID EMPLOYEES....ON THEIR GAMBLING HABITS.

How much did the Fed pay the government in 2008 when everything went to hell?

Obviously I know nothing and tons of research needs to be done.

If you already knew all this stuff....why didn't you bother to tell me?

Oh yeah, you were too busy sending your money to the Fed so they could go to the racetrack and the casinos.

I sure hope the Fed isn't purchasing oil futures as I write this.......

$75.4 BILLION is the profit.

Is that gross or net?

I'm so confused......does anyone have Mr. Bernanke's cell phone number?

Michael Timothy McAlevey