Everyone here understands how the Federal Reserve Really works... Banksters rob us blind with inflation, and charge us to handle money, while papering over problems they create.
Currently, EVERY Loan can be used as a security at the Fed Window, to borrow that amount of money again (Called a Lever). And they can do this 10,20, 30 times.
(Meaning, 1 Million in Deposits, LOANED out, could be taken to the Fed Window, and for a small amount of interest (Fed Rate), they can borrow another Million, repeat MANY times).

The Fed makes money 2 ways:
1) They CHARGE the USA to create the $$ for the bonds we have to sell, AT INTEREST
2) They CHARGE the banks at the Fed Window to LEVER UP their balance sheets.

NOTE: I Naively thought a bank made the DIFFERENCE (one time) between the Interest they PAID savers, and the interest they CHARGED borrowers (Pay 5%, collect at 8%, the bank makes 3%). When I learned that: "Well, that is the FIRST TIME they LOAN the money. The next 9 times they borrow against that loan, they pay 1% to the Fed (or less), and suddenly you realize the banks are making 5-6% on each lever. Times 10-20 times, that's 50%-100%. The Fed then is making X% on the original bonds (a slice of the action, but holding no counter party risk), and Y% times the average LEVER, PER YEAR). OMG. This printing money stuff is GREAT for banks. (But its still not enough. They OFTEN times DEMAND stock, options, and other things to LET companies borrow from them! I have seen these VULTURES at work)


Imagine this SIMPLE Change to how things work:
1) We change the law, and REQUIRE that EVERY TIME money is levered at the Fed Window, The Federal Government GETS 1% (minimum, but NO LESS than 20% of the 10yr USBond rate!).
2) We get paid this EVERY year the money remains levered
3) We get paid this BY the institution BORROWING the money, GUARANTEED by the Federal Reserve AHEAD of any other bank debt!

Now, lets say the bank is ACCUSTOMED to borrowing at 1% and is loaning out at 5% for mortgages. And they are levering 10:1 (10 loans against every $X in deposits)...
[BTW, 10:1 was historically the most risk banks took, and WHY they required a 20% down, AND proof you could make the first 6 months of payments, AND why you pay all interest in the first year. The could NOT lose money if they were moderately competent in lending!]

So, what happens. Well, if the US has to borrow at 5%, and we get 9% back, we have a NET profit of 4% over what we have to pay for our debt.
Every LEVER is only losing 1% for the bank (meaning, if they borrowed at 1% from the fed and loaned at 5%, they now pay 2%, and loaned at 5 or 6%). Yes, the reduce their earnings a bit.

But the government then collects against the activity of the economy. The more loans going out there, the more the government can get paid to get OUT OF THE WAY!

Once you make this lending a profitable adventure for the government, you also LOSE the desire to INFLATE the currency to death and punish savers!

It seems so obvious. I would not mind paying 1% more on my loans, knowing that I was helping get our government out of debt. BTW, ONCE we were out of debt, but Government should then PUSH to OWN the Federal Reserve! Slowly replacing the current "Owners" with themselves.