Fed quietly posts record $46.1-billion profit in 2009.
I find this promises a fascinating alternative to us actually paying taxes. The Fed has enormous influence over interests rates and even exchange rates and, of course, stock and bond markets. It seems to me that with a proper amount of cunning, the Treasury Department could regularly generate profits. I'm waiting for Sarah Palin to take the "no new taxes" pledge to the next level, campaigning with the slogan, "No taxes."
That would, of course, give us years to figure out how to make up for the fact that all this manipulation would leave our investment portfolios stunted like bonzai trees in a redwood forest. But then again, having to work until you die would sting less if you knew that your income wasn't being taxed. I would hope.
1 comment:
The relationship between the Federal Reserve & the Treasury is an interesting one. As you probably well know the Fed is "only" a central bank for the commercial banking institutions. But unlike the commercial banks, the Fed doesn't have as a goal to make money. Because of their potential power, they could generate lots of profit to put in the Treasury coffers, but that would come at the expense of many other countries. Probably a very good thing the Treasury Dept. and the Fed are separate entities.
Post a Comment