The analysis of the Federal Reserve by Michael Snyderhere, and the imposing threat to our economy by the Fed is very correct. It tends to break from reality at paragraph 4 which suggests the Fed is not operating for a profit.

There are many that think of the Federal Reserve as an evil profit-making machine. But the truth is that the Fed itself wasn’t designed to make money. Rather, the system was set up so that others could make an obscene amount of money from all of the debt that the system creates.

If the U.S. government had been issuing debt-free money all this time, the U.S. government would likely not be spending one penny on interest payments. Instead, the U.S. government will spend over a trillion dollars just on interest on the national debt in 2025. This is money that belongs to U.S. taxpayers that is transferred to the U.S. government which in turn is transferred to wealthy international bankers and other foreign governments.

This is the magic of the Federal Reserve system. It is about getting the U.S. government enslaved to debt and using that debt to transfer trillions of dollars of our wealth into the hands of others.

As interest rates go up, this transfer of wealth is going to become even more brutal.

As you fill out your tax return this year, just keep in mind that vast quantities of our money is going to pay interest on debt that the U.S. government never needed to take on.

There are some very happy people out there that are becoming fabulously wealthy at our expense.

—The Economic Collapse Blog, March 18, 2025

A TreasuryDirect post has stated the government finances its operation by selling Deficit Spending Treasury securities [DS]. The DS are purchased by the FRBNY entering a purchase amount in a government ledger which it, as a fiscal agent of the government, maintains in its possession —as a book-entry creation of fiat currency. The Treasury issues checks on those accounts to govt suppliers who then deposit the checks in commercial banks. Withdrawals of cash from the accounts receive Federal Reserve Notes. Those Notes historically have been identified as a debt of the Fed Redeemable in Gold or in Lawful Money.

FRN’s [a debt of the Fed] has been added to the market and inflation has occurred. The commercial banks, to fulfill the customers request for ‘money,’ must buy FRNs from the Fed, which they purchase at face value. The U.S. mint has printed the FRNs and sells them at cost of production to the Fed. The Fed’s Annual Report to Congress used to list the cost of individual bills as pennies for each Washington and a few dollars for each Bennie. Current Reports show only an annual cost. This profit, from sales to commercial banks, has not been found in the Report. [If the purchases by commercial banks were made with fiat value, there would be no National Debt.]

Source: Global Research