A Sweet Gig
Because of my new found interest in Bitcoin, I started poking into the structure of the US federal reserve system. Directly from the Fed’s website, I snipped this interesting answer to a FAQ on ownership:
So, let me get this straight. The Fed is a non-profit seeking org, but it is owned by profit-seeking orgs (commercial banks). But why would a profit-seeking org want to own a non-profit seeking org?
Ah hah, the second, circled, text fragment yields the answer: the profit-seeking orgs who own the non-profit seeking org are guaranteed by law to receive a yearly, risk-free, dividend of 6%.
Unless I’m missing something big (and I might be since I’m quite the simpleton), the banksters have quite the sweet gig goin’ on here. Especially when dividend yields on short term US treasuries available to average Joe Schmoes like me and you are hoovering close to zero percent. I’d be thrilled to receive a guaranteed, risk-free, 6% annual yield on any bonds/notes that I own. Wouldn’t you?
The least our lawmakers could do is tie the yield paid out to the Fed’s owners to the yield on one year treasury notes, no? But I doubt that can or will happen; not while the fox is guarding the hen house.
As I learn more and more about how the current, centralized, financial system operates, I become more enthusiastic about the prospects of Bitcoin to: disrupt the status quo, cut out the middlemen, and weaken the fat cat institutions that are reaping big rewards from their system without having to place any skin in the game.