How do we repay the interest on our debt to the Federal Reserve?

If we deal in a fiat currency, printed out of thin air by the Federal Reserve and loaned out with interest; then how can this debt be repaid with interest? Who prints the money that constitutes the interest portion of the repayment?I've heard that while the Fed loans us bogus dollars, it expects to be repaid in real dollars, or dollars backed with something like gold or silver. Is this how they stole our gold and silver and what do we repay with once that is gone?

How do we repay the interest on our debt to the Federal Reserve?
You have some serious misconceptions about how the currency and money supply works.





The Federal Reserve does not loan money to the government. That is conspiracy theory nonsense. Also, the Federal Reserve DOES NOT PRINT MONEY. Only the Bureau of Engraving and Printing can print money. What the Federal Reserve does do is buy U.S. Government securities on the OPEN MARKET. This is also called the secondary market. The U.S. Government borrows money by selling securities AT AUCTION. Practically anyone can buy these securities, even you. The Federal Reserve does earn interest on the U.S. Government securities that it holds, however, once expenses are paid, the Federal Reserve returns excess earnings to the U.S. Treasury. On average, about 85 to 95% of the interest collected is returned to the U.S. Treasury. In 2006, the Federal Reserve collected about $36.5 billion in interest and it returned to the U.S. Treasury $29.1 billion. This can clearly be seen on the audited financial statements of the Federal Reserve.


http://www.federalreserve.gov/boarddocs/...





The currency in the U.S. (Federal Reserve notes), do NOT constitute a debt to the holder. Federal Reserve notes are a LIABILITY of the Federal Reserve and U.S. Government securities are COLLATERAL securing them. That is partially what gives them value.





BTW, the Federal Reserve is INDEPENDENT of the government, but it is NOT PRIVATE or privately owned. In fact, if the Federal Reserve were to be dissolved, once the debts are paid, and the member banks are paid back their subscriptions, all assets would revert to the U.S. Government. This is specified in the law which governs the Federal Reserve.


http://www.law.cornell.edu/uscode/html/u...


http://www.law.cornell.edu/uscode/html/u...


If the Federal Reserve was dissolved, all circulating Federal Reserve notes would become the liability of the U.S. Government, however, the U.S. Government securities pledged as collateral for those notes would also become assets of the U.S. Government. Therefore any interest paid on those securities would simply be paid to the U.S. Treasury.
Reply:No offense, but I'm not sure how to answer your question because it doesn't make any sense.





There is only one currency in this country. There is not a "real" currency and a "bogus" currency. The Federal Reserve does not deal in gold and silver. It deals in Treasury securities which it uses to influence the money supply and interest rates.





The Federal Reserve does not print money. The U.S. Treasury does. They're not the same.





There is no public debt to the Federal Reserve. The Fed is a central bank that loans money to financial institutions. These financial institutions are responsible for repaying it. The public debt is financed by bonds that are issued by the U.S. Treasury. The bonds are purchased by institutional and individual investors who receive interest on them. (I own some.) The government pays interest to the investors. The citizens don't pay interest on the debt to the government.





It's much longer and more complicated than this. You might want to search some websites on government spending and the Federal Reserve to get more information.

floral