Robin wrote:
> What I'm really trying to get at is the exact flow of
> wealth between the Federal
> Reserve banks and the government of the USA. Do the
> "books" balance, or is this
> a net "one way" flow?
The Federal Reserve operates independent of the U.S. government. Our government
raises money through taxes, tariffs or fines. In addition the government may
raise money through the issue of bonds, notes, or other debt instruments that
are generally available to anyone. That might include one of the Federal
Reserve banks. Essentially, there is no flow of money between the Federal
Reserve banks and the government except if the banks buy government debt or pay
taxes.
M.
