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- Apr 26, 2011
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- #21
All of the member banks. as shareholders, they get a portion of interest earned.
Listen, if you believe taking this action would have a detrimental effect on the shareholders you are incorrect.
Say the interest on those T-bills are paid--with made up money--do those shareholders benefit?
You never did say who those shareholders are?
I said who the shareholders are. Read my post again.
It would have a detrimental effect on the shareholders b/c they would not receive their portion of the interest payments, nor would they have access to the securities held by the Fed.
Would that be worth it? I don't know.
This misconception that taking this action, dissolving the QE2 debt from the books, would have some adverse reaction to the Federal Reserve or its shareholders is completely false.
The best argument that can be made against this action is that somehow it would undermine the Fed's ability to manipulate--regulate--the money supply.
This God-like fourth branch of the federal government, who is accountable to absolutely no one, literally fabricated money to purchase these T-bill assets and is charging interest to all of children's future, and the majority of people responding believe that nameless shareholders should profit off this outrageous QE program.
It is within the law, and no the economic consequences are not anywhere as near dire as some on this thread have attempted to make it out to be.